Annual International Index of Energy Security Risk Shows U.S. Improving
WASHINGTON, D.C.—The U.S. Chamber’s Institute for 21st Century Energy’s Annual International Index of Energy Security Risk quantifies what has been apparent for the last several years—U.S. energy security is improving as a result of America’s shale energy revolution.
In this year’s Index, the United States jumped two spots to fourth among the top 25 largest energy users. Norway retains the top spot in this year’s Index, a position it has held since 2006. Among the top 25 largest energy users, the Ukraine is once again the least energy secure nation. Almost every nation saw a decrease in energy security risk in the Index, which is largely driven by less oil price volatility. The Index utilizes data from 2014—the most recent year available for comparative purposes.
“In this era of an increasingly extreme ‘keep it in the ground’ movement, it is important to recognize that the shale revolution has made America almost 25 percent more secure than it was in 1980, reducing our risks across a variety of metrics,” said Karen Harbert, president and CEO of the U.S. Chamber’s Institute for 21st Century Energy. It’s vitally important that we don’t squander our energy advantage through bad policy choices.”
Norway’s top score stems from its ability to export coal, oil and natural gas and utilize hydropower. Norway is followed by Mexico and New Zealand in the rankings, which are both nations that don’t have to rely on imports for most of their energy. Mexico’s advantages, however, are shrinking, as oil production declines.
The Ukraine is ranked last due to its need to import most of its energy and its geopolitical instability, which leave it reliant on Russia.
A close look at the metrics contained in the Index also provides a cautionary tale to U.S policymakers. European nations are facing some of the highest electricity prices in the world, thanks to more aggressive regulatory structures, mandates, and subsidies.
“Seven of the bottom ten countries among large users in our electricity risk Index metrics are in Western Europe, which is making industries like manufacturing and chemicals an endangered species there,” said Stephen Eule, vice president at the Energy Institute. “We’re seeing large scale plant closures in Germany, the UK, and other nations, some of which are resulting in new plants in the U.S., where energy costs are lower. Improved energy security really does lead to improved economic opportunities.”
The Energy Institute has once again produced an interactive web tool that provides ranking information and profiles for the top 75 energy consuming countries in the world. The Institute also produces the annual Index of U.S. Energy Security Risk, which it released last fall.
The mission of the U.S. Chamber of Commerce's Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.