The U.S. is at an energy crossroad. Continuing with “business as usual” energy policy will endanger our future. We are heading into a growing, oil triggered, energy security crisis that can easily develop into a worldwide war on resources. If nothing is done, the rising cost of energy will stifle economic growth and will cause a prolonged decline in standard of living. The looming results and cost of inaction on global warming could change not just our shoreline but every aspect of our life. We need a new energy policy.
Defining and executing a new energy policy should become our national priority. We must face hard decisions which include setting priorities, allocating budgets, understanding our limitations and do it for the American people and not for different interest groups. The energy sector is highly regulated and because of its strategic implications will continue to be so. However, regulations should establish the frameworks to ensure fair competition and strong societal benefits, not dictate how to get there or pick winners. Defining and executing an energy policy is a monumental task that will be one of the main challenges facing our next presidents.
I’d be interested to hear thoughts on the EIA report highlighted in today’s Wall Street Journal that total energy consumption by China surpassed U.S. energy consumption during 2009. This is… Read more »
This article provides some additional background: http://yhoo.it/9UE0Wv
First, a quibble: in 2009 China exported $296 billion of goods to the US and only imported $70 billion of US goods. The $227 billion net imbalance (the result of… Read more »
I tend to take a “realpolitik” point of view about issues of competition for oil. No doubt that China will increase its oil demands, as they have few domestic sources… Read more »
Any rational US energy policy must include China’s growing use of coal and oil. Early this year China surpassed the US in the rate of new car purchases, thus China… Read more »
I read all of the preceding comments from some brilliant people and fully agree with what’s been proffered as solutions to our problem. What wasn’t discussed is how to effect… Read more »
As populous developing countries, such as China and India, seek to emulate the consumer lifestyles of the U.S., oil/coal consumption and greenhouse gas emissions would soar if current patterns of… Read more »
My concern has always been for the stability of the system as Chinese demand increases. There are three areas where the market may find itself “sub-primed” and in a perfect… Read more »
You should distinguish between China’s attitude toward coal consumption — which is primarily for electric power generation and industrial uses — and China’s oil consumption. As does the U.S., China… Read more »
It is important that we continually remind ourselves and others that the key issue here is OIL. Our primary aim ought to be to increase transportation fuel diversity and supply,… Read more »
If possible, please read the NY Times April 23, 2010 article “Chinese Military Seeks to extend its Naval Power” (http://www.nytimes.com/2010/04/24/world/asia/24navy.html). I am increasingly convinced that it is essential to go… Read more »
Dear Herschel, I have read the subject article and am not surprised that China wants to protect their sources and potential sources of oil. Oil and coal are the life… Read more »
On the subject of energy policy and the current recession, there’s a need for more awareness of the linkages among resources, energy prices, and the state of the economy. We’d… Read more »
Here are the issues with your argument: 1. Not all fossil energy is expensive. We spend $30B on coal to get 48% of our electricity. You can make electricity more… Read more »
Eyal, Thanks for raising those points. I agree that oil is the most immediate and the most “driving” concern (uhm, sorry), but I don’t agree that it is the only… Read more »
Roger, I agree with you that all fossil fuels carry a degree of concern with them. My position is that the degree of such concern is directly related to three… Read more »
Colleagues: Responding to Eyal’s (implied) invitation below, it takes about 1 Btu of petroleum energy to produce about 20 Btu of ethanol through the corn route. Cellulosic ethanol will be… Read more »
The point Bruce makes that bears emphasis is the cost burden of the military resources required to protect and maintain our access to fossil fuels. Even if the only costs… Read more »
Eyal: I asked my friend Dr. Coleman Jones at GM about the cost of CNG conversion, since you were interested in the issue (see below). He confirmed that the cost… Read more »
Eyal, Thanks for the detailed reply. I’ve been looking for hard data on how much petroleum is consumed in the mining, cleaning, and transportation of coal. The estimates I’ve seen… Read more »
My answers are embedded below. Eyal, Thanks for the detailed reply. That’s a very nice chart on supply sources. It’s good to have things quantified. I’ve been looking for hard… Read more »
Dear Roger and Eyal, Having just read today’s correspondence between the two of you, I see that I need to clarify my position on the “Methanol Economy” (covered here: http://bit.ly/gGlpY6… Read more »
I think that we do not need to “decide” if Methanol is good or not. The advantage of a flex fuel car and breaking the blenders monopoly is that any… Read more »
Dear Yossie, I agree. Further to your point about the regional nature of future energy supplies: this is another important reason for flex fuel automobiles. One needs to able to… Read more »
I would be interested in any data you have showing that it is easy to ship methanol by pipeline. That raises a big disconnect with me because the oil and… Read more »
Dear Bruce, A limited discussion of methanol can be found on page 285 of ‘Liquid Transportation Fuels From Coal and Biomass’, published by the National Academy of Sciences. Indeed, methanol… Read more »
Since no one else has done so, I am afraid I must disagree strongly with Roger on one point. It does make a difference whether or not our petroleum is… Read more »
Bruce, If you’re thinking of the Arab oil embargo of the 1970’s, that’s actually a pretty good example of the point I was making. It may have been portrayed as… Read more »
Roger and Bruce, The main value of domestic production from economic point of view is not to impact the price of oil. Even if by magic (or technological breakthrough) we… Read more »
Hi Eyal: Biomass production for biofuels would also provide very large employment benefits, particularly in rural America. Furthermore they would likely be stable jobs. If we are intelligent, renewable biomass… Read more »
America’s national security and our economy would improve if we enact laws in 2010 that will reduce the dependence of U.S. transportation upon oil. Doing so would also reduce transportation’s… Read more »
Imagine that the vast majority of individuals, businesses, government and education organizations in the United States want to adopt oil-saving alternatives for transportation. They strongly agree with the proposition that… Read more »
Hi All, Thanks and welcome for getting involved in this discussion. To think about moving these principles to policy areas — especially now that the significant investment in the energy… Read more »