20 YEARS AFTER THE EMBARGO - UNITED-STATES OIL IMPORT DEPENDENCE AND HOW IT CAN BE REDUCED

oil imports represented about 43% of total US oil consumption in 1993 and oil imports are rapidly rising. Given current policies and trends, US oil imports are projected to cost over US$100 billion per year wit hin 10 years, considering only direct purchase costs. Oil imports cost the USA significantly more when indirect costs such as jobs forgone, loss of GDP, national defence, and environmental damage are taken into account. This paper reviews the direct and indirect oil import costs and examines actions that can be taken to reduce future imports. We fi nd that the USA could greatly reduce its oil imports during the next 2 0 years by increasing energy efficiency and accelerating the introduct ion of fuels derived from renewable energy sources, particularly in th e transport sector.