Foreword 13 Introduction 16. Chapter 1: How Does Oil and Gasoline Dependence Affect the US and the World? Chapter Preface 21 Gasoline Usage by the

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1 Contents Foreword 13 Introduction 16 Chapter 1: How Does Oil and Gasoline Dependence Affect the US and the World? Chapter Preface 21 Gasoline Usage by the 25 Transportation Sector Is a Major Driver of Global Warming Deborah Gordon Gasoline-powered cars and trucks are major producers of carbon dioxide and other greenhouse gases that cause global warming. Although transportation is responsible for nearly one-third of the carbon emissions into the atmosphere, little is being done to reduce these emissions because of the world s dependence on petroleum fuels to operate its vehicles. Oil Dependence Makes US Drivers 28 Vulnerable to Rising Gas Prices Deron Lovaas and Justin Horner America s dependence on foreign oil supplies causes American drivers economic pain in the form of skyrocketing gas prices. In 2010, US drivers in almost every state spent more of their income on gasoline than they did in The US Dependence on Foreign Oil 35 Funds America s Enemies Jonathan Powers Approximately 39 percent of the money spent by the United States on foreign oil imports goes to countries that are hostile to America. The US appetite for oil funds terrorist organizations and drives up the price of oil worldwide, providing resources to people who want to do us harm.

2 High Oil Prices Threaten the World Economy The Economist There are new reasons to worry about oil spikes caused by turmoil in the Middle East, given the civil war in Libya. A bigger supply disruption of oil could seriously increase oil prices, fuel inflation, and choke global economic growth. The World Energy Threat Has Only Worsened in 2011 Michael T. Klare The world s energy problems were compounded in 2011 by three significant events: political uprisings in the Middle East, threatening the world oil supply; a major earthquake in Japan, destroying nuclear facilities; and worldwide drought, causing a decline of hydroelectric power. These factors have only widened the gap between demand for fossil fuels and supply, which will lead to inevitable shortages and rising prices. Chapter 2: Are Rising Gasoline Prices a Serious Problem? Chapter Overview 57 Toni Johnson The price of retail gasoline is based on the cost of crude oil, the cost of refining, federal and state taxes, and distribution and marketing expenses. The cost of crude oil makes up the largest share of the price of gas at the pump, and crude oil prices are expected to remain high for the foreseeable future. So far, the US government s efforts to address rising gas prices have had little effect. Yes: Rising Gasoline Prices Are a Serious Problem Increases in Gas Prices Act as a Drag 64 on the Economy Dante Chinni Rising gas prices since 2010 have reduced consumer spending the one thing the economy most needs for recovery

3 Rising Gas Prices Transfer Wealth from Poorer Americans to the Rich Dan Froomkin Lower-income consumers paying higher gas prices boost big oil companies profits. Rather than investing in new jobs and oil exploration, oil companies are using much of the profits to buy back shares of their stock, a decision that primarily benefits wealthy shareholders and top executives. High Gas Prices Are Causing Many Americans Financial Hardship Lydia Saad A 2011 poll found that 67 percent of Americans are suffering from financial hardship due to higher gas prices, and a majority have responded by making major changes in their lifestyles. No: Rising Gasoline Prices Are Not a Serious Problem Compared with Other Industrialized Countries, US Gas Is Cheap Sarah Terry-Cobo The price of US gas does not reflect many hidden social and environmental costs. Also, prices are cheap compared with other industrialized countries, where consumers pay as much as twice what Americans pay for gas. High Gas Prices Might Shock the Nation into Cutting Its Dependence on Oil Myles Spicer Factors contributing to high gas prices have been known for decades, yet no concrete action has been taken to address the problem of oil dependency. If gasoline jumped to $10 per gallon, people might be shocked enough to demand solutions

4 There Are Many Benefits to Higher Gas Prices KNS Financial Rising gas prices are not always a negative event. They lead to lower demand and changes in consumer behavior, boost interest in alternative energy technologies, create jobs in the oil industry, and increase federal tax income. Chapter 3: Is Public Transportation an Answer to Rising Gasoline Prices? Chapter Preface 90 Yes: Public Transportation Is an Answer to Rising Gasoline Prices Rising Gas Prices in 2011 Caused Drivers 94 to Turn to Public Transportation Sean Barry When gas prices rise, the demand for mass transit surges. Most policymakers focus on increasing the supply of oil and lowering gas prices instead of investing in public transit. Record Mass Transit Ridership Could 97 Result If Gas Prices Rise Higher PR Newswire A study by the American Public Transportation Association (APTA) finds that higher increases in gas prices could result in record increases in public transportation ridership. Congress should act now to fund public transportation to ensure that the public has adequate access to mass transit when gasoline prices go up. The United States Must Invest 100 in Public Transportation Christian Science Monitor High gas prices are sending more commuters to public transit, straining bus, subway, and train systems. The United States must update mass transit systems despite the expense because the days of cheap gas are over. 86

5 Rejecting High-Speed Rail Systems Is a Mistake Given Rising Gas Prices Rob Kerth Governors in Florida and Wisconsin rejected high-speed rail proposals, but these decisions are short-sighted. Failing to invest in public transit systems leaves Americans dependent on fossil fuels and at the mercy of ever higher gas prices. No: Public Transportation Is Not an Answer to Rising Gasoline Prices Increases in Public Transportation Use Are Shortlived Owen McShane Public transport supporters have been predicting for years that high gas prices will lead people to embrace buses and trains, but this transportation revolution never comes. People want personal mobility, so governments should invest in road improvements instead. Recession Hits Transit Budgets Despite Rising Need Bob Salsberg Even though rising gas prices have created more demand for public transit systems, the recession and state and local budget cuts have made it increasingly more difficult for cities across the nation to provide reliable service. Such problems may curtail the public s willingness to use public transit, causing many to return to their cars whether or not gas prices fall. Cuts in Federal Public Transportation Funding Could Further Limit Mass Transit Keith Laing If Congress does not pass a transportation bill, funding for public transit will be jeopardized. Such funding cuts could further weaken public transportation systems, which have already raised fares and cut services due to the recession

6 High-Speed Rail Is Too Expensive 120 Joel Kotkin President Barack Obama supports the building of highspeed rail systems in the United States, but transportation dollars could be better spent on more cost-effective public transportation systems, such as buses, subways, and commuter rail. Chapter 4: What Are the Keys to Oil and Gasoline Independence? Chapter Preface 126 The United States Must Increase Domestic 130 Oil Production Steve Huntley Green energy sources still face technological obstacles. Oil will continue to be the main energy source, so the United States should develop more domestic oil and gas until green energy becomes a viable alternative. Oil Independence Is Impossible So Energy 133 Independence Must Be the Goal Swellsman Oil independence would require the United States to either invade and take control of oil-producing nations or boost domestic oil production to impossible levels. Thus, energy independence is a more practical goal. The United States Must Transition 139 to Low-Carbon Fuels David Burwell Making the transition to low-carbon fuels and improving vehicle efficiency will achieve oil independence faster than increasing domestic oil production, and government can help by implementing policies that accelerate this process.

7 The United States Must Promote Electric 143 Vehicles to Achieve Freedom from Oil Sarah Hodgdon Electric vehicles (EVs) not only can help free America from its oil dependence, but they also result in less air pollution than gas-powered cars. The United States needs to create the right policies and infrastructure to expand EV use. Natural Gas-Powered Vehicles 147 Should Be the First Step Toward Energy Independence David Fessler Congress should require automakers to phase in natural gas-powered vehicles and fund this plan with a tax on gasoline. These vehicles would be a bridge toward oil independence. The United States Must Increase 152 Fuel Efficiency Standards Jonathan Murray US national security is inextricably linked to energy policy, yet Congress might undermine the Environmental Protection Agency s (EPA) power to regulate carbon emissions. The EPA s new fuel efficiency standards will reduce US dependence on oil, which will strengthen our national security. The Free Market, Rather 155 than Government, Should Govern Energy Choices Conn Carroll President Obama s policies will only raise energy costs because they limit domestic and Canadian oil production while endorsing a clean energy standard. The country really needs a free-market approach that reduces industry regulations and ends all energy subsidies. Organizations to Contact 158 Bibliography 164 Index 171