Key Energy Choices
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Key Energy Choices

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Energy is the lifeblood of a modern economy. How America uses, generates, and produces that energy is decided by a combination of economic and political choices that are made over the span of ...

Energy is the lifeblood of a modern economy. How America uses, generates, and produces that energy is decided by a combination of economic and political choices that are made over the span of decades.

The questions the next President will face are more complex and difficult than we have ever faced: climate change, national security, prices, and new technologies all intersect to ensure there are very few “win-win” choices.

Congress and the Administration will have to craft compromises with the goal of ensuring a long-term energy system that is more secure, stable, and sustainable than today’s.

Over the last four years, the United States has seen the beginning of a great change in how it uses and produces energy.

This report lays out clear choices that the next administration faces on energy and climate change. America has made progress in rolling out renewable energy, but an accelerated effort is needed. Also, the next administration will need to make choices on how to manage our new-found abundance of natural gas and oil while at the same time laying the groundwork for next-generation energy technologies that will break our dependence on fossil fuels.

ASP’s report, “Critical Energy Choices for the Next Administration” takes an in-depth look at the serious issues the next administration will need to address.

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Key Energy Choices Key Energy Choices Presentation Transcript

  • CRITICAL  ENERGY  CHOICES  FOR  THE  SECOND  OBAMA  ADMINISTRATION   Five  Key  Issues  the  United  States  Must   Face  in  Energy,  Climate  &  Security  
  • In  Brief:     • Energy  is  the  lifeblood  of  a  modern  economy.  How  America  uses,  generates,  and   produces  that  energy  is  decided  by  a  combina%on  of  economic  and  poli%cal  choices.   • The  ques%ons  the  next  President  will  face  are  more  complex  and  difficult  than  ever   before:  climate  change,  na%onal  security,  prices,  and  new  technologies  all  intersect  to   ensure  very  few  “win-­‐win”  choices.   • Over  the  last  four  years,  the  United  States  has  seen  the  beginnings  of  a  great  change  in   how  it  uses  and  produces  energy.       Long-­‐Term  Challenges  Remain  in  Five  Key  Areas:   -­‐How  to  Use  America’s  New-­‐Found  Fossil  Fuel  Abundance   -­‐How  to  Address  Climate  Change   -­‐Stability  in  the  Middle  East  –  Stemming  Disaster   -­‐Renewable  Energy   -­‐ScienMfic  Research  into  Next  GeneraMon  Energy         Cri%cal  Energy  Choices:  Obama’s  Second  Term    
  • Natural  Gas  America’s  New  Fossil  •  Advances  in  hydraulic  fracturing  and  horizontal  drilling   have  revolu%onized  the  natural  gas  industry.  Fuel  Abundance     •  In  2011,  the  U.S.  produc%on  of  28  trillion  cubic  feet  of   natural  gas  was  the  highest  on  record,  and  it  makes     America  by  far   the  largest  producer  of  natural  gas  in  the  world.   •  The  next  administra%on  will  need  to  make  important   decisions  regarding  whether  to  license  natural  gas   exports,  use  LNG  in  the  transporta%on  or   manufacturing  sectors,  or  an  en%rely  new  approach.   Oil  ProducMon   •  With  huge  increases  in  produc%on  in  North  Dakota  and   Texas,  U.S.  oil  produc%on  has  reached   its  highest  levels  since  the  1990s.   •  President  Obama  will  need  to  make  a  decision  on  the   Keystone  XL  pipeline.   BUT:  In  the  long  term,  dependence  on   fossil  fuels  harms  our  economy.  It  leaves   us  vulnerable  to  vola%le  prices,  contributes   to  climate  change,  and  undermines  our   foreign  policy.    
  • Climate  Change  is  Fact  How  to  Address   •  Climate  change  is  scienMfic  fact;  it  is  real  and  Climate  Change   poses  a  clear  danger  not  only  to  the  United   States  but  to  the  en%re  world.   •  Since  the  beginning  of  the  industrial  revolu%on,   carbon  dioxide  (CO2)   concentraMon  in  the  atmosphere  has  risen  40%     due  to  man-­‐made  emissions  of  fossil  fuels.   Global  temperatures  have  also  increased.   •  Decisions  on  how  strictly  to  legislate  and  enforce   pollu%on  limits  have  significant  impacts  on   decisions  about  how  to  produce  energy.  have   also  increased.   •  The  administra%on  must  determine  its   involvement  with  interna%onal  climate  change   nego%a%ons,  including  the  United  NaMons   Framework  ConvenMon  on  Climate  Change   (UNFCCC)  and  the  Copenhagen  Accord.   These  challenges  require  long-­‐term   focus  and  decision-­‐making  that  will  not   always  be  popular.  
  • Threats  to  Energy  Stability  in  the  Middle  East  Stemming  Disaster     Iran:  in  the  Middle  East    Nearly  35%  of  seaborne  traded  oil  travels  through  the   Straits  of  Hormuz,  which  Iran  has  threatened  to  cut  off     in  the  event  of  a  conflict.   The  Arab  Spring:    Unrest  puts  global  oil  markets  at  risk.  The  same   condi%ons  that  led  to  popular  revolt  s%ll  exist.  Analysts   consider  Kuwait  and  Oman,  both  major  oil  producing   countries,  as  being  vulnerable  to  these  uprisings.   Terrorism:    Terrorist  groups,  including  Al-­‐Qaeda  and  its  affiliates,   have  demonstrated  their  interest  in  disrupMng  oil   flows  in  the  past  in  order  to  inflict  economic  damage   on  its  foes.   The  Middle  East  sAll  looms  large  in  the   energy  world,  comprising  30%  of  world   oil  producAon  and  over  60%  of  total   proven  reserves.  
  • Renewable  Energy   Diversifying  Our  Energy  Security  in  the  United  States   recent  years:   •  Renewable  energy  has  made  significant  progress  in   –  From  June  2011-­‐2012,  electricity  genera%on  from  solar  grew  by   94.7%.   –  The  share  of  electricity  generated  from  non-­‐hydro  renewable   energy  doubled  between  2008  and  2012,  from  3%  of  the  total  to   6%.   –  The  average  price  of  solar  panels  has  declined  by  about  75%  and   the  costs  of  wind  power  have  halved  in  the  last  three  years.   –  In  2009,  the  Secretary  of  the  Navy,  Ray  Mabus  announced  the  goal   of  supplying  50%  of  the  Navy’s  energy  needs  from  renewables.       How  to  CreaMng  A  Market  For   Renewables?   •  A  naMonal  renewable  por`olio  standard  (RPS),   carbon  pricing  or  clean  energy  standard  would   create  market  demand  for  renewable  energy.   Renewable  energy  in  the  transportaAon  and  electric   power  sectors  will  improve  America’s  energy   A  set  of  Wind  Turbines  in  California     security,  support  economic  growth,  and  reduce  the   threat  of  climate  change.  
  • Research  into  Next  Science  and  American  Security   •  Recent  data  reveals  a  startling  research  and  GeneraMon  Energy     development  (R&D)  investment  gap,  indicaMng  that   America  is  falling  behind:       –  The  United  States’  total  R&D  spending  is  currently  about  2.85%  of   GDP;  which  puts  the  U.S.  in  9th  place  globally,  behind  countries  like   Japan,  Korea,  Sweden,  and  Denmark.     •  Fusion  energy  holds  the  promise  of  next  genera%on   energy  technologies  that  can  produce  power  that  is   safe,  clean,  reliable  and  abundant.     •  Decisive  leadership  is  needed  in  order  to  ensure  that   scienMfic  research  receives  sufficient      investment.   PPPL  LTX-­‐-­‐A  view  through  the   Princeton  Plasma  Physics   Laboratory’s  Lithium  Tokamak   Experiment  (LTX)   by  Elle  Starkman/Princeton   Plasma  Physics  Laboratory   Office  of  CommunicaAons   NIF  Laser  Bay-­‐-­‐Seen  from  above,  each  of  NIF’s  two   idenAcal  laser  bays  has  two  clusters  of  48  beamlines,   one  on  either  side  of  the  uAlity  spine  running  down   the  middle  of  the  bay.  Credit:  Lawrence  Livermore   NaAonal  Laboratory  
  • FURTHER  READING   America’s  Energy  Choices:  2012  EdiMon   March,  2012  hnp://bit.ly/zVV3lZ       Pay  Now,  Pay  Later:  A  State-­‐by-­‐State  Assessment  of  the  Costs  of   Climate  Change    May,  2011,  hnp://bit.ly/wy8ZUt       Ending  Our  Dependence  on  Oil    May,  2010,  hnp://bit.ly/QrOvjg     Offshore  Oil  Drilling  in  the  ArcMc    August,  2012,  hnp://bit.ly/MWZvnn     CounteracMng  Chinese  Hegemony  in  the  South  China  Sea    August,  2012,  hnp://bit.ly/RmrZ6     Cause  and  Effect:  U.S.  Gasoline  Prices    April,  2012,  hnp://bit.ly/IiKQMT     Climate  Change  and  ImmigraMon:  Warnings  for  America’s   Southern  Border    September,  2010,  hnp://bit.ly/SxGghm     ArcMc  Climate  and  Energy    August,  2012,  hnp://bit.ly/Qy5cTt     A  New  Discourse:  Climate  Change  in  the  Face  of  a  Shieing  U.S.   www.americansecurityproject.org     Energy  Por`olio    August,  2012,  hnp://bit.ly/MbOTKV     Bio  Fuels  and  NaMonal  Security    March,  2012,  hnp://bit.ly/yjmEWd