With a growing dependence on oil, much of which comes from unstable regions of the world, the lifeblood of the U.S. economy is vulnerable to price shocks and source disruptions. Some 97% of the transportation sector is dependent on oil, and 67% of oil is used for transportation.

Furthermore, terrorists have targeted oil interests abroad and have declared their intention to hit vulnerable infrastructure and supply routes in the future.

The growing demand for oil, especially from countries like China and India, is intensifying geopolitical rivalries to secure access to oil, often contrary to U.S. interests.

We believe we must continue to diversify and secure domestic and foreign oil, but the impact of these policies is minimal when it comes to reducing oil dependence and strengthening the economic and national security of the United States.

Because oil is a global commodity, it is dependence on oil itself, not "foreign" oil, that creates vulnerability. America's exposure to world oil price shocks is a function of the amount of oil it consumes and is not significantly affected by the ratio of "domestic" to imported products.

Short-term solutions will not solve this country's systemic oil threat. The two major ways to reduce America's dependence on oil are to either use less oil or use a different fuel instead of oil. Congress and the Administration must commit to these long-term solutions that protect the national security and economic resources of the United States:

• The use of more fuel-efficient vehicles will help to cost-effectively save oil. To move fuel-efficient products outside of their niche market and encourage consumer approval, the government should provide further consumer economic incentives for hybrid-electric and advanced diesel vehicles.
• To ensure the competitiveness of the domestic auto industry and maximize the jobs created by the production of fuel-efficient vehicles, the government should give incentives to car companies that build the vehicles in the United States.
• Congress and the Administration must strengthen and reform legislation to improve fuel-efficiency standards, while making standards more flexible to aid business compliance.
• The government must accelerate research, development, and use of alternative fuels. It must pass legislation that encourages private sector capital to invest in alternative fuels.

Global demand for oil will only increase. We cannot afford to rely only on increasing supply diversity or on research and development. The United States must adopt strategies now to prevent our dependence on oil from hurting America's economic potential and national security. SAFE believes in adopting commercial and legislative answers to this urgent problem now.