the U.S. trade deficit in oil increased to $327 billion in 2011. In fact, progressively higher oil prices have increased the total cost of the net U.S. oil import burden in recent years, even as imported volumes have declined.
Over the past decade, however, the size of the U.S. trade deficit, in part driven by the increased cost of net oil imports, has grown significantly. Its current size, totaling more than half a trillion dollars in 2011, cannot be sustained indefinitely. It creates significant risks and vulnerabilities for the U.S. economy.
This compounds America’s international debt burden while lowering the prospects for long-term U.S. economic health. The emergent challenge provides yet another important argument for taking critical steps to end American dependence on oil.