SAFE: Declining Dollar, High Oil Prices Pose New Threat

Domestic Supply Offers 'Bridge' To Long-Term Solutions

WASHINGTON, April 17 /PRNewswire-USNewswire/ -- Securing America's Future
Energy (SAFE) today released "A Different Type of Price Spike," an issue brief
describing a new threat to the American economy: the confluence of high oil
prices, an increasing trade deficit, and a sinking dollar.

"In the past, oil prices spikes have been caused by supply interruptions, or
dramatic increases in demand," SAFE President and CEO Robbie Diamond said.
"But today, a new threat has been added to the mix: high oil prices, an
increasing trade deficit, and the declining dollar are combining into a
self-reinforcing cycle that is already affecting our economy. The more oil we
import, the more dollars we send overseas, increasing our trade deficit and
weakening the dollar, which pushes the price of oil up even further. That
cycle has to be broken."

"A Different Type of Price Spike" examines the disturbing confluence of high
oil prices, a weak dollar, and a growing trade deficit, explaining the cycle,
describing its causes and consequences, and proposing solutions to prevent it
from occurring again in the future.

"There are no short-term solutions to our energy security vulnerabilities, but
there are both medium- and long-term ones," Diamond added. "We need to pursue
a comprehensive strategy to reduce our dependence on oil, including reductions
in demand and the development and deployment of alternatives. We also have
vast reservoirs of oil and natural gas off of our coasts that are currently
off-limits to development. Opening those resources in an environmentally
responsible way can help us reduce our imports, lower our trade deficit, and
prevent future occurrences of the low-dollar/high oil price cycle. Increasing
domestic supply is not a long-term answer to our energy security problems, but
can help protect our economy and our national security over the medium-term."

To read the full study, visit secureenergy.org

Securing America's Future Energy (SAFE) is an action-oriented, nonpartisan
organization that aims to reduce America's dependence on oil and improve U.S.
energy security to bolster national security and strengthen the economy.

SOURCE Securing America's Future Energy

Jonathan Grella of SAFE, +1-202-461-2369