U.S. Chamber’s Energy Institute Unveils Inaugural International Energy Security Risk Index
U.S. Ranks Seventh Among Large Energy Users in Key Energy Metrics
WASHINGTON, D.C. – Following the success of its groundbreaking Index of U.S. Energy Security Risk, the U.S. Chamber’s Institute for 21st Century Energy today unveiled its latest effort to bring facts and clarity to energy debates with its new International Index of Energy Security Risk.
With the launch of the U.S. Index in 2010, the Energy Institute provided for the first time a quantitative measurement of energy security from 1970-2030. The International Index uses the same in-depth analysis to rank the world’s top energy users using 28 measures of energy security, including fossil fuel imports, energy expenditures, efficiency, transportation, power generation, and carbon dioxide emissions. This inaugural edition covers 1980 through 2010.
“The International Index of Energy Security Risk builds on our U.S. Index by providing a new tool that will help make sense of the significant transitions occurring in world energy markets,” said Karen Harbert, president and CEO of the U.S. Chamber’s Energy Institute. “This Index allows policymakers, business leaders and analysts to see how the U.S. energy security picture compares to that in other countries and to gain a better understanding of the risks that other nations face. While the Index rankings will no doubt spark debate, we hope that the Index will enrich the energy security debate at home and abroad.”
For 2010, Mexico has the lowest total risk score and ranks first in energy security, bolstered by its good scores on fossil fuel imports, energy expenditures, and per capita energy usage. The United States ranks seventh in the Index, and its improved international position since 2005 is due in large part to growing shale oil and gas production. The worst score among the top 25 energy users in the Index belongs to Ukraine, which scores poorly across the range of energy security measures.
“Countries that do well in our Index tend to have a large homegrown resource base, a diverse power sector, and improving efficiency,” said Steve Eule, a vice president at the Energy Institute. “Those that score poorly are reliant on others for energy supplies, leaving them vulnerable to disruptions, and do not use energy efficiently. As a whole, we’ve seen the risk scores for most of the large energy users worsen over the past decade after a long period of improvement, which is cause for concern. Emerging economies, in particular, are experiencing rapidly rising energy security risks.”
After Mexico, the rest of the top five countries in the Index are the United Kingdom, Norway, New Zealand and Denmark. Joining Ukraine in the bottom five are Brazil, the Netherlands, South Korea and Thailand.
The International Index scores are reported in relation to a reference index representing the average risks for Organization for Economic Cooperation and Development (OECD) member countries. While the International Index provides rankings for the top 25 energy users, which account for 80% of global energy demand, risk scores are provided for another fifty countries in a new interactive web tool available at www.energyxxi.org/energysecurity. The full report and a video introduction are also available on the site.
Like the U.S. Index, the International Index will be updated annually, allowing users to spot trends and measure the impact of major policy decisions. For instance, Japan’s potential move away from nuclear energy and the EU’s focus on climate change will have major impacts on energy security that will be captured in the Index.
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.