ENERGY SECURITY REQUIRES NEW ENERGY: DOE

Secretary of Energy Samuel Bodman asked business leaders at a Saudi Arabia conference if governments are acting responsibly. Great question. He pointed out the need for huge energy supplies through 2030 and called for development of new scientific answers, new technologies. He pointed out how badly small and poor nations suffer when energy prices are high and supplies are limited. He also expressed a strong commitment to the Old Energy (fossil fuel) economy: "And are we adequately investing in ways to produce fossil energy more cleanly and efficiently?"

But he recognized that in the next quarter-century the world is going to need all the energy it can get. He called for striking a balance between energy security and environmental stewardship: "Everyone—governments included—has an important role to play in the development of alternative fuels and advanced energy technologies. But the private sector cannot do it alone…This requires significant public and private global investments. But it's worth it…"

In other words, the world needs to improve all the sources of its Old Energy and get busy building a New Energy infrastructure for sun, wind, waves and biofuels. Bodman: "We must make smart public funding and regulatory decisions, and unleash the world's best scientists and engineers on the problem of developing cost-effective, market-ready advanced energy technologies…"

Imagine what could have happened in the last 8 years if this administration’s policy had enacted what this true, if empty, rhetoric expresses.

It's really pretty simple: We're going to need all the energy we have and then some. (click to enlarge)

Bodman: Global energy security requires significant investment
Nick Snow, January 21, 2008 (Oil & Gas Journal)

WHO
Samuel W. Bodman, Secretary of Energy, U.S. Department of Energy (DOE); International Energy Agency (IEA)

WHAT
Global energy security in coming decades will require diversity of supply, suppliers and supply routes, according to Secretary Bodman.

There is only one logical conclusion. (click to enlarge)

WHEN
- Bodman described expectations for global energy through 2030.
- The IEA projects $22 trillion of new investment is required between now and 2030 to meet world energy demand

WHERE
- Bodman made his remarks to a gathering of business leaders in Saudi Arabia. He specified that the investment he was describing needs to be around the world, in developed and developing economies. It is required at all points along the chain of energy, from the origins of supply to the end consumer.
- Bodman called for development of science and technology and cited Saudi Arabia’s King Abdul Aziz City for Science and Technology and its King Abdullah University of Science and Technology.

WHY
- Bodman raised the dilemma of the way competition among big economies like the U.S., the EU, China and India is driving prices up and adding to the pressure on smaller,poorer economies.
- High energy prices restrict growth, preventing development of health and education institutions and driving living standards down.
- Bodman called on developed economies to act responsibly. That means developing Old Energy production and markets and New Energy infrastructure and technology.
- Research should be coordinated to include input from corporations, utilities and universities. New engineers and technical staff must be developed.
- Bodman’s DOE is creating a technology commercialization fund for its national laboratories to test, demonstrate, market test and deploy its New Energy breakthroughs.

Best defense: A good New Energy infrastructure. (click to enlarge)

QUOTES
- Bodman, on necessary costs: "These three elements [diversity of supply, suppliers and supply routes] are the key to enhancing global security. To achieve them is, perhaps, one of the most significant challenges of our time. And to address them in a timely manner, we will need literally billions of dollars annually, over many years…"
- Bodman, on hidden costs: "We must also consider the impact energy prices have on our economies. The tremendous economic growth in China and India and their growing demand for more and more energy has received much attention. What has not been as widely discussed is the impact high prices have on smaller and developing countries…"
- Bodman, on the need for more fossil fuels: "We must start by asking: Will the necessary investments be made to bring sufficient hydrocarbons to market? Is the investment climate in producing countries conducive to inviting such capital flows? Are large consuming nations having the right type of discussions and collaborations with producing nations? If not, why not?…I can't stress this enough: The global oil market must be allowed to function in a predictable and transparent way…"
- Bodman, on the need for New Energy: "Without sustained global investments, and without a new global commitment to invest in new sources of energy and breakthrough technologies, we will not achieve the innovations we must have to solve the world's critical energy problems…"