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<br /> <br />r'lJ- · ') , <br />U .l...~ <br /> <br />How Did We Become <br />So Vulnerable To <br />Oil Imports? <br /> <br />" <br /> <br />mmb/d <br /> <br />Tolal Domestic Demand <br /> <br /> <br />" <br /> <br />[==:J Imports <br />r::::J Total Domestic <br />Supply <br /> <br />75 <br /> <br />. The availability of inexpensive imponed oil served 85 a dis- <br />incentive to domestic production. which peaked at 9.6 million <br />barrels per day (MMB/D) in 1970, has been declining ever <br />since, and now stands at 8.2 MMB/D. <br />. Meanwhile, petroleum demand grew at an annual rate of 4.6 <br />percent in the 1960's and early 1970's, in response to low prices. <br />air pOllution restrictions on coal use, and the growing use of <br />automobiles. <br />. The combination of declining domestic production and rising <br />demand led to a rapid growth in imports: <br />-From 1.8 MMB/D. Of 19 percent of consumption. In 1960. <br />_ To 3.4 MMB/O, or 23 percent of consumption, in 1970. <br />-To 6.0 MMB/O, or 37 percent ot consumpliOn, in 1975. <br />. The Arab oil embargo in 1973/74 demonstrated that the <br />United States is vulnerable to severe supply disruptions and oil <br />price increases. <br />. Today, the United States spendS about $27 billion, or $125 <br />per person, for Imported oil; as compared with about 53 billion, <br />or $15 per person, in 1970. <br /> <br />, <br /> <br /> <br />14 <br /> <br />12 <br /> <br />10 <br /> <br />1950 <br /> <br />6. <br /> <br />6' <br /> <br />7. <br /> <br />55 <br />