U.S. WASTES ENERGY, CAN DO BETTER

Efficiency measures will see us through to the New Energy future.

U.S. Most Wasteful Energy Consumer, With Room For Change—McKinsey
Roshanak Taghavi, July 12, 2007 (Dow Jones Newswire via Nasdaq)

WHO
McKinsey Global Institute
The report says we can lop the top off out-of-control energy demand (click to enlarge)

WHAT
The institute’s "Wasted Energy: How the US Can Reach Its Energy Productivity Potential" reports the U.S. has the lowest energy productivity (value of the output and quality of goods divided by total energy use) of any developed nation. It is also the largest energy consumer in the world and produces twice the greenhouse gas (GHG) emissions as any developed country. The good news: The U.S. has the capacity to be much more energy efficient.

WHEN
Report released July 13.
2003: 26% of total global oil consumption by U.S.
Efficiency measures (energy-efficient appliances and technologies like heating and cooling equipment and fuel-saving capabilities) could cut demand 1/3 by 2020.

WHERE
The report and proposed measures apply to the U.S. economy and global energy activity.

WHY
- U.S. expected to grow transportation/commercial/residential sector energy at 1.1%/year, keeping it the leader in low energy productivity. Government imposed fuel-efficiency standards could turn this around.
- The report calls for government policies to boost efficiency by shifting emphasis to decreasing demand (from the present emphasis on increasing supply). Examples of policy measures: Stricter building/manufacturing standards, mandating energy-efficient appliances to create economies making efficiency more affordable for American consumers. Cost: $10 billion and $15 billion.
- The report concluded that without governmental policy leadership, the situation will not improve.
the targets (click to enlarge)

QUOTES
Report: “Increasing fuel-efficiency standards for motor vehicles would be a major force in bringing fuel-saving technologies to market…If the U.S. were to follow the lead of Japan and Europe, where governments are raising fuel-efficiency standards over the next few years, the fuel economy of U.S. vehicles would improve by an average of up to 5 miles a gallon by 2020…”