answering energy questions

October 18, 2007

How much energy will America and the world need in the future, and what kind? Where will it come from? How much will it cost?

These are some of the critical questions framing the current U.S. energy policy debate in Congress. A new study helps answer them.

In July, the National Petroleum Council (NPC), a group founded in 1946 by President Truman to advise the U.S. government, released the results of its 18-month long study “Facing the Hard Truths about Energy.” The report, which was requested by the Secretary of Energy, provides a detailed look at the global energy landscape through 2030 and proposes strategies for tackling future energy challenges. It can be found at www.npc.org.

The NPC report represents a broad range of views. In fact, most of the study participants came from outside the oil and gas sector, including more than 350 universities, non-governmental organizations, government agencies, professional societies, environmental groups and a wide array of industries.

An energy study of this breadth and rigor had never been attempted before. It is a uniquely valuable resource available to policymakers. Here are some of the NPC’s findings that should inform the current energy policy debate:

• “Coal, oil, and natural gas will remain indispensable to meeting total projected energy demand growth.”
• “The world is not running out of energy resources, but there are accumulating risks to continuing expansion of oil and gas production from conventional sources.”
• “To mitigate these risks, expansion of all economic energy sources will be required.”
• “‘Energy Independence’ should not be confused with strengthening energy security. The concept of energy independence is not realistic in the foreseeable future...There can be no U.S. energy security without global energy security.”
• “A majority of the U.S. energy sector workforce...is eligible to retire within the next decade [and] must be replenished and trained.”
• “Policies aimed at curbing carbon dioxide emissions will alter the energy mix, increase energy-related costs, and require reductions in demand growth.”

In response to these realities, the NPC recommends five strategies, including moderating energy demand by increasing efficiency; expanding and diversifying energy production; strengthening global energy trade and investment; enhancing science and engineering capabilities; and developing the legal and regulatory framework to enable carbon capture and sequestration.

The NPC has offered answers to address America's energy challenges. The question remains: Will U.S. policymakers act on them?