Hard truths about US energy security
Americans are understandably concerned about the rising cost of energy, yet most of us take our energy supply for granted. We expect there to be fuel at the pump when we stop to refill, and we expect the lights to come on when we flip the switch in our living room. Few people, however, are aware that over the last 25 years world energy demand has increased about 60 percent and is projected to rise by a similar amount by 2030.
In its comprehensive study of the future of global oil and gas supply, the National Petroleum Council found that the US risks a shortage of reliable, affordable energy to meet this growth because of political hurdles, steep infrastructure requirements, and the scarcity of a trained workforce.
The fact is, our energy challenges of the future will be more difficult to address than those of the past. There are no easy answers and no magic bullets.
The big picture
The United States is the largest participant in the global energy system — the largest consumer, the second largest producer of coal and natural gas, and the largest importer and third largest producer of oil. According to the American Petroleum Institute’s publication, The Truth About Oil and Gasoline: An API Primer, the US is in a global struggle for energy security. The Institute urges “a constructive public policy debate on meeting the growing energy needs of consumers and industry.”
The energy Americans consume today comes from industry investments made years or even decades ago. Barriers to oil and natural gas production only contribute to volatile energy prices, slower economic growth, and lost American jobs. To meet America’s energy needs during the next several decades, API urges that we adopt policies that promote greater supplies of oil and natural gas, “not policies that hinder the industry’s ability to provide American consumers the energy they demand and need.”
Even with a comprehensive US energy policy, the report says, sustaining even modest economic growth worldwide for the next several decades will require massive new investments in oil and natural gas. The report also urges increased energy efficiency and a diversification of energy resources that draws upon the full range of energy sources, including alternatives and enhanced energy technologies.
A holistic approach
Oil and natural gas will remain indispensable parts of the US energy mix. Still, meeting the projected US demand for energy by the year 2030 will require expansion of all economic energy sources, including coal, nuclear, renewables and unconventional sources of oil and natural gas.
As the largest producer of oil and gas in America, BP plays an important role in delivering energy solutions to America. We have been actively addressing this complex issue and have made significant progress by expanding traditional sources of oil and gas, bringing online non-traditional energy supplies like solar, wind and our planned investments in processing heavy oil from Canada. And we are investing hundreds of millions of dollars in technology that could yield new and better biofuels.
But there is a lot more work to be done by our industry and by our country’s leaders to address long-term energy challenges. American energy consumers are living with the consequences of the policy choices the nation made three decades ago, and the choices we make today will have a huge impact tomorrow on our nation. Success is possible only if we all pull together.
Additional reading
For a copy of the National Petroleum Council’s report, please visit the “Hard Truths” website: www.npchardtruthsreport.org
Related links
