Is American Energy Independence a Myth?

America's energy boom is creating a lot of hype around the possibility of energy independence. Unfortunately, reality may not live up to the hype. The chances that we will be able to cut ties with the global oil market are very slim, so we will continue to do business with foreign countries to import oil for the foreseeable future. 

Crude oil is a very intricate global commodity, and the type of we're finding doesn't meet the optimal range for refineries in the United States. Ultimately, this means that even if we're able to produce more oil than we're able to consume, we will still need certain types of oil to make our operations run smoothly. Besides, if we can buy oil from another country for less than what it costs to make it, then why not?

Tune into the following video for the conversation with Fool analysts Joel South and Michael Olson as well as contributor Tyler Crowe, as they discuss the myth of energy independence and why the complexities of the oil market will hamper any chances that it will happen.

If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." For free access to this special report, simply click here now.

Read/Post Comments (4) | Recommend This Article (3)

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  • Report this Comment On July 01, 2013, at 7:01 PM, WBRWBR wrote:

    How about including the costs of keeping a huge military presence in the Middle East to insure a constant flow of oil. If we could be independent of them and just buy/produce oil from the western hemisphere, we could get out of that region of the world, and use the saved military costs for our domestic infrastructure. Maybe I am dreaming, but that way the Arabs could be perpetually pissed of at other countries instead of us.

  • Report this Comment On July 01, 2013, at 10:48 PM, harmonyjoe wrote:

    The Arabs would still be pissed at us because it would soon become abundantly clear that no other country(read China) would allow the kind of nonsense they've gotten away with dealing with us. the realization that this was lost would really rile them. Might actually be kind of fun to watch.

  • Report this Comment On July 02, 2013, at 8:49 AM, davewos wrote:

    First comes LNG CNG distribution buildout, next decrease in US oil imports, next a high yield solar cell, and finally energy, transportation from hydrogen. And then oil exporters are done. remember the tulips in 16 century Holland, and the Swiss watch makers...No need for oil imports.

  • Report this Comment On July 02, 2013, at 12:55 PM, gkirkmf wrote:

    Just read and interesting article that made the point that just because we produce a lot of crude doesn't necessarily mean lower prices at the gas pump. Refiners are now shipping gasoline and diesel fuel overseas to get better prices, keeping our prices high. The EIA's prediction could come true but not for the reasons they tout now, if gas and diesel prices continue their upward trend. We could be energy independent because we can't afford to buy it!

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