A Modern Call for Project Independence
The oil embargo of 1973-1974, led by Arab oil-producing countries, resulted in a sharp increase in oil prices and a shortage of oil supplies. This event had a profound impact on the U.S. economy and highlighted the vulnerability of the nation’s energy security. In response, President Nixon announced Project Independence on November 7, 1973.
The goal of Project Independence was to achieve energy self-sufficiency for the U.S. by 1980, thereby eliminating the nation’s dependence on foreign oil suppliers. This objective was to be accomplished through a variety of means, including increasing domestic production of oil and natural gas, expanding nuclear energy, and promoting energy conservation and the development of alternative energy sources.
In an address to the nation on November 7th, 1973 President Nixon stated…
Let us set as our national goal, in the spirit of Apollo, with the determination of the Manhattan Project, that by the end of this decade we will have developed the potential to meet our own energy needs without depending on any foreign energy sources.
Let us pledge that by 1980, under Project Independence, we shall be able to meet America’s energy needs from America’s own energy resources.
While the project ultimately fell short of its ambitious goal, it raises a thought-provoking question: are we repeating the mistakes of the 1970s and do we need a new Project Independence?
The current global energy landscape has seen a significant shift towards green technologies pushed to combat the apparent climate crisis, such as solar panels, wind turbines, and batteries for electric vehicles (EVs). It is claimed that these technologies are central to the transition away from fossil fuels to renewable energy sources. However, a substantial portion of these green technologies are manufactured and sourced from outside the United States, raising concerns about energy security, supply chain vulnerabilities, and economic implications, reminiscent of the energy crisis of the 1970s that led to initiatives like Project Independence.
As discussed above, the U.S. experienced firsthand the vulnerabilities associated with dependence on foreign resources, leading to the oil embargo of 1973 and subsequent economic and energy crises. Today, similar risks emerge from dependence on foreign-made green technologies and supply chains. This concentration of production and supply raises concerns about potential geopolitical leverage, trade disputes, and supply disruptions, which could impede the U.S.’s energy independence goals.
Furthermore, the COVID-19 pandemic underscored the fragility of global supply chains, highlighting how disruptions in one part of the world can have cascading effects on global markets, including the availability of green technologies. The reliance on international supply chains for the procurement of essential materials and components for renewable energy technologies exposes the U.S. to risks of shortages, price volatility, and delayed deployment of energy infrastructure.
Sourcing green technology from abroad also has significant economic implications, including trade imbalances and lost opportunities for job creation within the U.S. Investing in domestic production of energy technologies can stimulate economic growth, create jobs in manufacturing and related sectors, and ensure more of the economic benefits remain within the country. Moreover, developing a domestic supply chain for critical minerals can foster innovation, reduce costs through economies of scale, and enhance the competitiveness of U.S. industries in the global market.
However, the process of developing energy infrastructure and mining critical minerals involves compromises regarding carbon emissions and environmental consequences, and it seems that the prevailing political inclination in Western countries prefers to depend on forced labor in Africa and Asia, regardless of the geopolitical vulnerabilities.
In light of the historical lessons from the 1973-1974 oil embargo and the evident challenges posed by our current energy dependencies, the imperative for a new Project Independence has never been clearer. As many in the Western world demand an energy transition, we must confront the uncomfortable reality that our pursuit of green technologies has entangled us in a web of geopolitical and ethical compromises. The reliance on foreign-sourced materials, underpinned by exploitative labor practices and fraught with supply chain vulnerabilities, not only undermines our national security but also betrays our core values. Let us again remember Nixon’s call for energy self-sufficiency, aiming not just to replicate the ambition of Project Independence, but to envision a future where America leads the world in energy production.
Source: Substack
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