Strategic & Integrated Resource Planning Approach to the U.S. Energy Security Issues
Article from: OGEL 4 (2007), in Energy Security
The paper analyzes the real cost of the imported oil from the Middle East, and preliminary results show that the cost of the imported oil may be well above $100/bbl, about 70% more than the reported 2007 oil market price of about 70/bbl. Designated hidden costs are assumed to include the U.S. military expenditure in the Middle East, protection of international oil water lanes, and the numerous governmental, private and academic oil supply studies. If the U.S. does not reverse the trend of oil imports, then these hidden costs might increase with time and further jeopardize national energy ...