WASHINGTON, D.C.—In an effort to concretely answer the question, “is our energy security getting better or worse?,” the U.S. Chamber’s Institute for 21st Century Energy today unveiled its first-of-its-kind Index of U.S. Energy Security Risk. Titled the Index of U.S. Energy Security Risk: Assessing America’s Vulnerabilities in a Global Energy Market, the Index provides the first quantifiable measurement of energy security based on 37 individual metrics in four primary areas—geopolitical, economic, reliability and environment. The Index tracks energy security risk beginning in 1970 and projects future risk until 2030. Each year the Index is assigned a composite score, which will be updated annually as new data becomes available. “The term energy security is often used, but there has never been an objective, fact-based way to define it—until now,” said Karen Harbert, president and CEO of the Chamber’s Institute for 21st Century Energy. “The Index of U.S. Energy Security Risk provides a comprehensive look at all the components that make up our energy security. Using the Index, policymakers and the public can see the effect that policy decisions and world events have had on our energy security, while using our future projections to help guide policy decisions.” The Index demonstrates that policy decisions over the years have had a significant impact on energy security. For instance, deregulation of oil markets in the 1980s resulted in lower energy security risk, while the lack of progress in building and siting energy infrastructure in recent years has contributed to increased risk. “The Index of Energy Security Risk demonstrates that the U.S. energy supply must be resilient enough to withstand unpredictable geopolitical events that are beyond our control, such as the Arab oil embargo in the 1970s, which increased our risk,” said Steve Eule, vice president of climate and technology at the Energy Institute. “The Index is a living, breathing tool that will be made available to government leaders and energy professionals alike to help them understand the real implications of policies and events.” The highest energy security risk since 1970 was in 1980, which is rated at 100 in the Index. Energy security risk rose throughout the 1970s, before falling in the 1990s. Higher energy prices and increased demand led to an increased risk in the last decade. While the risk index score is down to 83.7 in 2009 due to a slower global economy, it is projected to increase to 1980 levels in the future unless action is taken to improve energy security. The Index of Energy Security Risk includes an interactive web tool. To read the full report, view fact sheets on key trends and how the Index was computed, and view data tables, visit our website.
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.