The American public is ready for energy solutions that look beyond traditional positions currently dominating political debate, a US Chamber of Commerce executive suggested at an Aug. 18 Houston energy conference.
“Improving our energy security must be met through the efforts of the private sector, research community, all levels of government, and our society at large,” said Fred Smith, president of the national business organization’s Institute for 21st Century Energy, at the Energy Capital Solutions Summit sponsored by US Rep. Kevin P. Brady (R-Tex.).
“To succeed, we must reexamine outdated approaches, become better informed about energy and the environment, and move forward to secure our energy future based on facts and scientific evidence,” Smith maintained.
He said the institute has received a resounding public response since announcing an energy platform last month in an open letter to the next president and Congress. Thousands of people have signed the group’s petition calling for more energy efficiency across all economic sectors; greater use of alternative and renewable fuels in transportation; expanded use of nuclear power, coal, and renewable energy; and more domestic oil and gas production, Smith said.
‘Politicized’ energy
Speakers at the summit stressed that it was unfortunate that it took high oil prices to get the public’s attention and that it will be difficult and costly to put into place the long-term solutions needed to prevent backsliding into energy shortages in the future.
“Short term is considered 10 years,” said John D. Hofmeister, former president of Shell Oil Co. and founder and chief executive of Citizens for Affordable Energy. He said using less energy and finding more sources go hand in hand. Although Americans have driven 52 billion miles less in the wake of recent high prices, he said, it is important that policymakers enact long-term legislation that will attract investors needed to develop long-term solutions.
“The politicization of energy is harming everyday citizens,” he said, because much of the short-term policy enacted is of value only to politicians seeking the next election and does not result in development of needed technology as fast as it should.
Amy Myers Jaffe, the Wallace S. Wilson Energy Studies Fellow at Rice University’s James A. Baker III Institute for Public Policy, emphasized how critical the effects of geopolitics are on US national security as well as its energy security. She said developing domestic alternatives to the energy sources that fuel our economy is important to reduce US vulnerability in light of the post-9/11 environment.
“What are the consequences of our being cut off from [oil] sources?” she asked. “Oil producers are using our dependence as political leverage.” She added, saying, “Our dependence on foreign sources of oil places constraints on how far we can push regarding managing human rights and other issues.”
And although saying a US ally of 30 years, Saudi Arabia, has been like a “prince on a white horse” to the US—increasing production after 9/11 and after the US went into Iraq—she said, “Demand has burgeoned, and Saudi Arabia has not invested [the billions] needed” to continue to provide extra amounts when needed. “No matter how close an alliance is, it is better to squeeze the amount we need from our own resources and efficiencies than to rely on alliances with other producers.”
Jaffe urged that Democrats and Republicans compromise to allow new drilling and to use the royalties from it to pay for developing supplementary alternative energy sources. “It’s going to take an incredible amount of capital, including public and private funds, in this effort.”
Clay Sell, president of Hunt Energy Horizons and a former deputy US Energy secretary, said a national electricity transmission grid is needed to provide access to natural energy from areas of the country “where the sun shines brightest, and the wind blows hardest,” but where there currently are too few people to warrant having built such infrastructure. “We need a transmission grid to the marketplace,” he said.
Another “great untapped energy source,” he said, is greater efficiency in the utility industry, and in new buildings and appliances. “Utility regulators must put in place policy for efficiency,” he said, along with investment tax credits so that long-term investments can occur.
The fifth speaker, Stuart C. Strife, vice-president for exploration at Anadarko Petroleum Corp., explained to the nonenergy-industry audience that “Over 50% of [US energy needs] to 2030 and possibly beyond will be provided by oil,” and that “we consume about 24% of the oil in the world.” Noting also that “US producers provide about 85% of our natural gas needs, importing only 15%,” he said we need to “develop technology to take more advantage of natural gas to address our energy needs.”
