Question

When a country imports petroleum, its national security would be in danger, if the petroleum exporting country imposes an embargo. The importing country may have petroleum reserves, but why would the country import petroleum despite the potential highstake national security? Explain.

10 marks question . pls use diagrams and lengthy explanations

question is part of environmental and natural resources economics

Answer 1

The United States of America imports 4 millions barrels of oil every day.More demand for oil drives up the prices of oil globally,which is beneficial for oil producing nations who don't even sell us.The Center for American Progress has found out that of America's future has to be secured , they will have to enhance their national security and that is only possible if we reduce our dependency on oil.
Oil dependency is dangerous to get satisfied.According to one survey, it was found that America had consumed 23 Percent of the world's petroleum and 57 percent of oil which was imported from other nations.Although U.S. holds less than 2 percent of oil reserves of the world.40 percent of oil is imported from Canada, Mexico and Saudi Arabia.But we need to reduce our dependency from these nations because Canada's oil is dirty fuel and Mexico' s oil field will be dried up within a decade.And then we will be forced to look to those volatile countries who are direct threat to our national security.

ARAB oil embargo,oil weapon policy has manipulated the oil prices throughout the world and became the matter of international concern.Many nations thought that unfriendly relations with the oil producer countries would harm their nations by cutting off access to energy resources. U.S. policy do have idea about this matter of concern.Many said that country's access to oil will be reduced if unfriendly producers cut off their exports to America .And if they find any other consumers to buy up their resources in the global market ,this will lead to the rise in prices of oil.Rise in prices caused by intentional disrupting the supply of oil would harm U.S. national security by decreasing the America's wealth.Even though countries have their own oil stock but due to day by day increase in demand it is required to get it imported from other nations despite the potential highstake national security.