The American Liquid Fuels Crisis This nation faces four serious oil-related risks: Excessive dependence on OPEC and on other unstable foreign oil suppliers; Conventional oil supplies are not meeting dramatic increases in world demand; Rapidly increasing global competition for oil from China, India, and other nations; and Supply disruptions from natural disasters (and potential terrorism). American oil vulnerability Tightening oil markets and near record high prices have brought America’s oil vulnerability back into focus. Hurricane Katrina recently demonstrated how quickly oil supply disruptions can impact the country. More serious supply disruptions will likely occur in the future, caused again by natural forces like Katrina, or by terrorist acts, or purposeful rationing by the OPEC cartel and rogue nations such as Iran and Venezuela. New oil discoveries are not keeping up with oil consumption America faces a serious liquid transportation fuels crisis. To mitigate these unprecedented risks and to provide for future economic prosperity and national security, we must reduce our growing dependence on foreign oil suppliers by producing our own liquid fuels. While some refer to the oil risks and challenges America faces as an “energy crisis,” this is misleading. We face the ominous prospect of crippling oil and liquid fuel shortages and soaring prices.