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CNN Live At Daybreak

Oil Situation Now

Aired October 17, 2003 - 05:19   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: It was 30 years ago today that Arab oil producing nations announced they would begin cutting back on oil exports to Western nations. That led to an oil embargo. Fast forward to the oil situation now.
Our Natalie Pawelski gives us a reality check.

(BEGIN VIDEOTAPE)

NATALIE PAWELSKI, CNN CORRESPONDENT (voice-over): In October 1973, the Arab oil embargo led to long lines and dry pumps at U.S. gas stations and Americans learned just how much the nation relied on imported oil. Thirty years later, U.S. dependence on foreign oil is at an all time high.

GUY CARUSO, ENERGY INFORMATION AGENCY: It reaches a new high almost every year. In 1973, we were importing about 28 percent of our oil. This year it's 55 percent and our projections are that that will go to as high as 68 to 70 percent by 2025.

PAWELSKI: So far this year, the number one supplier of oil to the U.S. is not in the Middle East or even in OPEC. It's Canada, followed closely by Saudi Arabia. Rounding out the top five, Mexico, Venezuela and Nigeria. About 22 percent of America's imported oil comes from the Persian Gulf. The U.S. remains the world's biggest consumer of oil.

CARUSO: It's been true for a long time. We're about 25 percent of the world consumption. The total world is consuming about 80 million barrels a day this year and we're at about 20.

PAWELSKI: As for where the oil goes, about one third is used to heat homes and generate power, two thirds goes into transportation and most of that is pumped into cars and trucks.

(on camera): Over the next couple of decades, the U.S. government projects that demand for oil will continue to grow, while domestic production continues to shrink, a growing gap between America's appetite for oil and its ability to produce the fuel on which the nation's economy runs.

Natalie Pawelski, CNN, Atlanta.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Aired October 17, 2003 - 05:19   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It was 30 years ago today that Arab oil producing nations announced they would begin cutting back on oil exports to Western nations. That led to an oil embargo. Fast forward to the oil situation now.
Our Natalie Pawelski gives us a reality check.

(BEGIN VIDEOTAPE)

NATALIE PAWELSKI, CNN CORRESPONDENT (voice-over): In October 1973, the Arab oil embargo led to long lines and dry pumps at U.S. gas stations and Americans learned just how much the nation relied on imported oil. Thirty years later, U.S. dependence on foreign oil is at an all time high.

GUY CARUSO, ENERGY INFORMATION AGENCY: It reaches a new high almost every year. In 1973, we were importing about 28 percent of our oil. This year it's 55 percent and our projections are that that will go to as high as 68 to 70 percent by 2025.

PAWELSKI: So far this year, the number one supplier of oil to the U.S. is not in the Middle East or even in OPEC. It's Canada, followed closely by Saudi Arabia. Rounding out the top five, Mexico, Venezuela and Nigeria. About 22 percent of America's imported oil comes from the Persian Gulf. The U.S. remains the world's biggest consumer of oil.

CARUSO: It's been true for a long time. We're about 25 percent of the world consumption. The total world is consuming about 80 million barrels a day this year and we're at about 20.

PAWELSKI: As for where the oil goes, about one third is used to heat homes and generate power, two thirds goes into transportation and most of that is pumped into cars and trucks.

(on camera): Over the next couple of decades, the U.S. government projects that demand for oil will continue to grow, while domestic production continues to shrink, a growing gap between America's appetite for oil and its ability to produce the fuel on which the nation's economy runs.

Natalie Pawelski, CNN, Atlanta.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com