<aside> ☝ From this section, you must know…
Energy dependency shows the extent to which an economy relies upon imports in order to meet its energy needs.
Energy needs are the resources needed for fuel and generation of electricity. For example, the United States needs natural gas for power generation and gasoline for cars. In order to meet these needs, the US can produce its own natural gas, petroleum, or other fuels, but it will eventually need to import resources.
Import: a good brought in from abroad (overseas) for sale
As this chart from the US Energy Information Administration shows us, the United States consumes (the blue line) more than it produces (production). The US therefore had to import the rest of its petroleum (green line). More recently, the US produced more than it consumed, allowing it to export (yellow) the surplus.
The United States imported most of its oil from OPEC nations.
Organization of the Petroleum Exporting Countries (OPEC): Thirteen countries that manage the price of oil by controlling the market supply
This meant that OPEC had a lot of diplomatic influence on the United States, which affected its decision making with allies.
The price of gas at the pump was dependent on the decisions of OPEC.
OPEC competed with the American oil industry, often forcing them out of business.
Several Southwest Asian countries are members of OPEC. These members are Algeria, Iraq, Libya, Kuwait, Iran, Saudi Arabia, and the United Arab Emirates (UAE).
Saudi Arabia alone produced 7.3 million barrels of oil every day. The vast majority of its GDP came from petrochemical exports. Of its $170 billion GDP, $79 billion (42%) came from the production and export of oil.
Gross Domestic Product (GDP): the total value of goods produced and services provided in a country during one year