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Thesis & Antithesis

A critical perspective on energy, international politics & current affairs

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Location: Washington, D.C.

greekdefaultwatch@gmail.com Natural gas consultant by day, blogger on the Greek economy by night. Trained as an economist and political scientist. I believe in common sense and in data, and my aim is to offer insight written in language that is clear and convincing.

05 March 2006

Do oil imports matter?

I have put together this graph which shows the significance of import dependence. It plots the price of oil and US imports as a percentage of total consumption. The graph illustrates that there is no relationship between increased import dependence and prices. In fact, the correlation is negative (-0.59), indicating an inverse relationship whereby lower prices presumably boost demand and hence imports. In that sense, the underlying problem (high prices) and the articulated concern (import dependence) are unrelated.



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