The Military Surcharge for Oil

by C. Scott Miller | August 12, 2006 at 09:13 am
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It has been said that the War on Terrorism is the first war that the U.S. is paying for both sides of the conflict. Our "oil addiction" is compromising our national security.
America pays a "national security surcharge" for each gallon of oil that is imported from the Middle East. The cost in blood can never be overestimated. But what has been the per gallon cost paid by the U.S. Treasury for military defense of our interests in the Middle East since 1991 and the first war in Iraq? This would be an externalized military cost that we do not see at the pump. It is also a cost that we do not incur for alternative fuels like E85 or biodiesel.
In an award-winning essay posted on the National Defense University website Lt. Col. John Amidon talleyed the the 1991-2004 military costs of this unreported subsidy and then divided that total by the number of gallons consumed in the U.S. He arrived at a price of $1.276/gallon. Since about 10% of our oil is imported from the Middle East, the actual per gallon surcharge for imported oil is about ten times higher ($12.50/gallon)!
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