Can countries be energy independent or should they plan for interdependency as the way of the future?

Energy independence—providing all of one’s energy needs by oneself—is an enticing concept. A country that has achieved energy independence would be free from the demands—economic, political, diplomatic, military and others—which are the unavoidable costs of energy interdependence. Such countries would not be subject to price fluctuations and supply uncertainty due to events outside of their control which occur in regions far beyond their borders. But is it feasible for most countries to achieve energy independence?

Some would say yes, in the long term. A combination of conservation, efficient design and new sources of domestically sourced fuels can help to reduce—or even eliminate—dependence on foreign oil and other energy sources. And the benefits, some say, of achieving independence, including improving energy price stability, stimulating the economy, and reducing impacts on the environment, far exceed the investment.

But others believe that energy independence is unrealistic, and that some level of energy interdependence will remain reality for most countries, given that (a) the world’s economies are highly interdependent generally; (b) the bulk of the world’s energy supply for the foreseeable future will come from fossil fuels; and (c) over half the world’s oil lies in 5 countries. And reducing reliance on foreign energy sources often involves confronting powerful commercial interests, solving difficult technological problems, and convincing the public that cheap fuel is not a birthright.

Even if energy independence is achievable, is it smart policy? An energy-independent USA, for example, would dramatically change the landscape of international trade and development. Entire economies of countries like Saudi Arabia, Nigeria and Venezuela—and the citizens of those countries—depend on energy exports. International trade in energy should, at least in theory, deliver sources of fuel most efficiently. Will energy-independent countries generate more waste and more pollution than those who import it?

What should the goal be? Should countries attempt to achieve energy independence, or should they pursue policies that accept interdependence in energy markets?