Since the oil embargo of the 1970s, the United States has realized the importance of energy in its national security strategy. In a presentation at IWP on November 4, Stephen D. Eule examined the different dimensions of U.S. energy security and how they can be measured in the Index of U.S. Energy Security Risk, before comparing America’s score to that of other countries using the International Index of Energy Security Risk. His talk was entitled “Measuring Energy Security Risk: Assessing Risk in a Global Energy Market.”
Mr. Eule began by discussing the history and structure of the Index of U.S. Energy Security Risk itself, which measures 37 different metrics in nine categories, such as Global Fuel Metrics, Fuel Import Metrics, Energy Expenditure Metrics, and others, which then yields a Risk Index Score. Soon after the development of the U.S. Risk Index, an international version was developed: The International Index of Energy Security Risk, so that energy security around the world could be measured. Countries such as the United States, the UK, and Norway scored favorably due to their stable, developed, diverse, and reliable supplies. Countries like Chad, Gabon, and North Korea scored just as favorably, but for a very different reason: their very small levels of energy use. If an economy has a low level of industrialization and development, it is far less reliant upon energy.
Additionally, Mr. Eule explained some of the recent developments in the global energy market, such as the shale boom, the U.S.’s rise as a major energy producer, and the implications of these effects on global energy prices and market stability. He also reviewed not just oil, but other sources of energy and precious commodities. He concluded his lecture by answering audience questions on a variety of topics, including the addition of new measures to the indices, the resource curse and its political implications, and more.
Stephen D. Eule is VP for climate and technology at the U.S. Chamber of Commerce’s Global Energy Institute. Mr. Eule is a recognized and respected expert on energy and climate change. He engages with business groups across the world, is asked frequently to testify before Congress, and is quoted often in major media outlets. He represents the Chamber in the UN Framework Convention on Climate Change and helped found the Major Economies Business Forum on Energy Security and Climate Change, a coalition of more than 20 national cross-sector business organizations from major economies. Eule also is responsible for GEI’s two authoritative energy security reports — the Index of U.S. Energy Security Risk and the International Index of Energy Security Risk. These risks indices represent the first and most comprehensive efforts to quantify energy security risks over time and across a wide range of measures. They have been cited by the International Energy Agency and are used by universities and think tanks around the world.