A Tale Of Two Countries: What The United States Can Learn From Brazil About Reducing Dependence On Foreign Oil

Abstract

Dependence on foreign oil by the United States of America creates massive problems from the economic, environmental, and national security perspectives. In recognition of this reality, the USA embarked upon an energy independence plan in the mid-1970s, following the Arab oil embargo that accompanied the 1973 Yom Kippur War. Unfortunately, this effort has failed to the extent that the USA is more dependent upon foreign oil today than it was in 1976. At about the same time that the USA initiated its energy effort, a similar effort was also initiated in the South American nation of Brazil, which like the USA was alarmingly dependent upon foreign oil and had sustained substantial economic hardship as a result of the Arab embargo. Today, Brazil is substantially energy independent, and in fact exports oil to the USA. Obviously, Brazil implemented a more effective energy independence effort than did the USA. Lessons which the author believes may be learned from the Brazilian experience are that solving the problem requires that all possible solutions be pursued simultaneously with maximum vigor, that maximum use should be made of existing usable technology rather than waiting for laboratory-scale technologies to be perfected, and that solutions will be reached much faster if the private sector is actively engaged in a cooperative rather than adversarial manner. With these principles in mind, we review available alternatives and propose a comprehensive energy strategy that reduces the USA’s dependence on foreign oil in the short run, and ultimately eliminates that dependence in the long run. We further enunciate reasons for believing that such an integrated strategy is far superior to any effort to address the problem by focusing solely upon conservation, or alternative fuels, or “drill here, drill now,” to the exclusion or minimization of the other approaches. We conclude with a proposed plan for implementing the “all hands on deck” approach to energy independence.