US energy independence loses luster with Democrats

OREANDA-NEWS. July 28, 2016. The Democratic party has pulled back on a past push for "energy independence," as cheap gasoline prices and shifting priorities within the party have diminished the policy's appeal.

Democrats in 2004, 2008 and 2012 approved political platforms extolling the natural security benefits of energy independence and how it could reduce consumer energy prices. The pitch to voters for energy self-sufficiency has been that it would let the US eliminate oil imports and its exposure to global markets, though energy experts have been skeptical the idea would work.

But even as the US has moved significantly closer toward energy independence, Democrats this year decided to omit the concept from a platform the party approved last week. The US imported 7.4mn b/d last year, down nearly 30pc from its peak of 10.1mn b/d in 2005, according to the US Energy Information Administration (EIA). The US produced 9.4mn b/d of crude last year, up 45pc from the 5.2mn b/d in production in 2005, EIA says.

The extra oil has helped to ease the pain at the pump for US drivers. US retail gasoline prices this year have averaged \\$2.01/USG, down from \\$3.21/USG in 2008, according to the EIA.

Clinton campaign energy adviser Trevor Houser said the Democratic platform change reflects a recognition that US and world energy markets are closely linked, regardless of how energy self-sufficient the US becomes. Clinton has pledged to reduce US oil consumption by 33pc within 10 years, which Houser said would make the US economy less vulnerable to higher global oil prices. He spoke yesterday at the Democratic National Convention in Philadelphia, Pennsylvania, at an event hosted by the industry group the American Petroleum Institute.

Continuing to push for energy independence, which would likely require increased domestic oil production, could also be problematic for Democrats campaigning to reduce fossil fuel production as a way of achieving global climate goals. Democrats in this year's political platform removed their 2012 endorsement of an "all-of-the-above" energy strategy and instead pushed to put a price on greenhouse gas emissions.

The shift in political messaging sets Democrats further apart from Republican presidential candidate Donald Trump, who has made achieving energy independence a central part of his platform. Trump has promised to open up more federal lands to drilling and relax regulations as a way to achieve energy self-sufficiency.

Many energy experts have argued that the historical push for energy independence is an idea that sounds appealing to voters but is unlikely to translate into lower US retail gasoline prices, which typically move in tandem with global markets. Another obstacle to true energy independence is that US refineries are largely configured to process heavy, sour crude, rather than the light, sweet crude produced by shale drilling.