The National Defense Council Foundation (NDCF), an Alexandria, Virginia-based research and educational institution has completed its year-long analysis of the “hidden cost” of imported oil. The NDCF project represents the most comprehensive investigation of the military and economic penalty our undue dependence on imported oil exacts from the U.S. economy. Included in this economic toll are:

• Almost $49.1 billion in annual defense outlays to maintain the capability to defend the flow of Persian Gulf Oil – the equivalent of adding $1.17 to the price of a gallon of gasoline;
• The loss of 828,400 jobs in the U.S. economy;
• The loss of $159.9 billion in GNP annually;
• The loss of $13.4 billion in federal and state revenues annually;
• Total economic penalties of from $297.2 to $304.9 billion annually.

If reflected at the gasoline pump, these “hidden costs” would raise the price of a gallon of gasoline to over $5.28, a fill-up would be over $105.

One striking figure was the cost of the periodic oil shocks the U.S. has experienced over the past three decades which NDCF estimates at from over $2.2 Trillion to almost $2.5 Trillion.

Prior to completion the study underwent an exhaustive peer review by a panel comprised of seventeen individuals with a broad range of expertise including representatives from government, industry and major environmental organizations.

In addition to detailing the costs of America’s import dependence, the NDCF report also outlines the benefits of shifting the U.S. transportation sector to non-petroleum derived fuels.

Source: Institute for the Analysis of Global Security.