IEA reviews US National Energy Policy

May 30, 2002
The US government's efforts under the National Energy Policy proposed by President George W. Bush in May 2001 will influence energy policy worldwide, the International Energy Agency said in a generally favorable review.

By an OGJ correspondent

PARIS, May 30 -- The US government's efforts under the National Energy Policy proposed by President George W. Bush in May 2001 will influence energy policy worldwide, the International Energy Agency said in a generally favorable review.

Robert Priddle, IEA executive director, welcomed the US government's focus on energy security through increased domestic production, energy infrastructure development, improved energy efficiency, stimulation of the use of renewable fuels, and greater international cooperation.

"US policy debate needs to be widened to include a realistic strategy for addressing the US contribution to global environmental problems. US energy policy is in transition," the IEA report said.

Oil and natural gas
Noting that US oil production declined from a peak of 11.3 million b/d in the 1970s to an average 8.1 million b/d in 2000, IEA made numerous recommendations aimed at increasing that output.

"Since successful expansion of production would contribute to the supply security of the US and the rest of the world, the [US] government is encouraged to make a major effort to convince the public that environmental problems can be overcome by appropriate measures," IEA said in a news release accompanying the report.

"The US is the world's largest oil importing country," the IEA report said, adding that crude oil imports were 9.07 million b/d in 2000, accounting for 79% of total petroleum imports. Meanwhile, US crude oil exports were minor, averaging 100,000-200,000 b/d since 1985.

The IEA called the US natural gas market "extremely open and competitive."

Refining capacity
"Total [US] refining capacity has not changed significantly in recent years," the report said, noting that US oil consumption totaled 19.7 million b/d in 2000—exceeding the previous record of 19.5 million b/d in 1999.

"Of the total demand for oil in 2000, demand for motor gasoline accounted for a record high of 8.5 million b/d. This represents an increase of 9% over 1999, or 24% over 1985, and 35% over the low point of the 1980s. However, gasoline's share of total oil product demand has been quite stable at 44% in 1985 and 1995, and 43% in 2000, reflecting parallel growth in demand for distillate, jet fuel, liquefied petroleum gases, and other petroleum products.

"Despite higher gasoline and jet fuel prices in 2000, demand for ground and air transport continued to grow, although the outlook for air transport has changed since the terrorist attacks of September 2001," the report said.