Global Energy Institute Releases Annual Index of U.S. Energy Security Risk
WASHINGTON, D.C. — The 2017 edition of Global Energy Institute’s Index of U.S. Energy Security Risk finds that U.S. energy security is continuing to rapidly improve to one of the best scores in decades, after hitting bottom just five years ago.
The Index employs 37 different energy security metrics in four major areas of risk: geopolitical, economic, reliability, and environmental. A lower Index score indicates a lower level of risk. The eighth annual edition of the Index covers 1970-2040 and incorporates the latest historical data and forecast models. In 2016—the most recent year available—the risk score dropped another 1.3 points to 76.0, the lowest score since 1995.
“American energy security has now improved for five years in a row, despite rapidly challenging market conditions and geopolitical tensions,” said Karen Harbert, president and CEO of the U.S. Chamber of Commerce’s Global Energy Institute. “Just five years ago, the story was much different. But because of the shale revolution that has taken place during this time period, our nation enjoys much greater energy self-sufficiency, which translates into fewer imports, lower costs, and reduced emissions.”
Since 2011, the total risk index score has dropped by 25 points, the largest rise or fall during any five year period since 1970. Of the 37 metrics, 18 showed decreases of more than 1 percent, while another 9 remained about the same. Among the areas of improvement were fuel imports, energy expenditures, energy use intensity, and environmental categories.
The biggest areas of improvement in the Index were related to oil and gas expenditures, which are a result of increased domestic shale production. The single largest category that saw improvement was security of U.S natural gas imports.
On the flip side, price volatility risks, related largely to the recent plunge in the price for crude oil, remained high. Metrics related to electric grid reliability risks during periods of peak demand also inched higher.
This year’s Index features special sections on electricity capacity margins and transmission lines, which contains additional data and analysis regarding demand and infrastructure.
The Index and its companion, the International Energy Security Risk Index, are available on our website at www.globalenergyinstitute.org/energysecurity. The U.S. index is once again available in an online, interactive web tool format, which makes it easy to see how various metrics change from year to year.