Transcript Slide 1

National Energy Marketers Association
U.S. International
Energy Policy
Douglas Hengel
Deputy Assistant Secretary for
Energy, Sanctions and Commodities
Bureau of Economics, Energy and Business Affairs
U.S. Department of State
April 29, 2008
Global Energy Picture
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Growing Demand
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Asia, Middle East
Supply Challenges
Insufficient investment
 Constrained access
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Climate Change
Gas and Coal
Growing Energy Demand
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IEA projections:
Global energy needs by 2030 will increase by over
50%, compared to 2005 levels, barring policy shifts.
 70% of growth from emerging economies
 China and India together account for 45% of
projected increase in demand
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To meet growing demand, $22 trillion of
investment between now and 2030 required.
Fossil Fuels Dominate Through 2030
18 000
Other
renewables
Mtoe
16 000
Nuclear
14 000
Biomass
12 000
Gas
10 000
Coal
8 000
6 000
4 000
Oil
2 000
0
1970
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1980
1990
2000
2010
2020
2030
Renewables growing but will be long time before they catch up to fossil fuels.
Supply Issues
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Limited spare production capacity.
Oil and gas exports concentrated among
relatively few countries, some unstable.
New resources hard to reach, costly to develop.
Foreign investment welcome? NOCs control
more than 75% of the world’s proven oil
reserves.
Who Has the Oil?
Climate Change
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Fossil fuel consumption is greatest source of
anthropogenic GHG emissions.
Carbon constrained future could limit use of
coal.
Important role for developing countries. China
is overtaking the U.S. as the largest GHG
emitter.
United States is committed to working with the
UNFCCC to develop a post-2012 arrangement
that is environmentally effective and
U.S. ENERGY SECURITY PILLARS
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Diversification of Energy Types and Suppliers
Energy Efficiency
Environmental Protection
Enhancement of International Energy System
Energy Independence Security Act of
2007 (EISA)
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Will reduce projected GHG emissions by an
estimated six billion metric tons by 2030.
Cleaner, more efficient transportation.
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Renewable Fuels Mandate
Vehicle Fuel Economy Mandate
More energy efficient homes and offices.
Expand use of clean energy technologies.
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CCS programs – seven large scale geologic injection programs
New funding for battery technology, solar power, 2nd generation
biofuels.
Improving Energy Efficiency
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Energy Secretary Bodman: “The biggest source of
immediately available ‘new’ energy is the energy we
waste every day.”
1973-1986: annual U.S. energy consumption was
constant while GDP grew at 35%.
1995-2005: overall energy intensity (energy used per
unit of GDP) improved by more than 20%.
In 2002 President Bush set goal to reduce energy
intensity of the U.S. economy by 18% by 2012.
Diversification: Canada – A Reliable
Energy Partner
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Largest supplier of oil, natural gas, and electricity
to the U.S.
Safe, secure supply for the North American
market.
In 2006, Canada supplied the United States with
2.3 million barrels of oil per day, equivalent to
17% of total U.S. imports.
Keystone Crude Oil Pipeline
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1,300 miles from Canada through the U.S. Midwest.
Will boost Canada’s exports to U.S. by 495,000
barrels per day.
Addressing the Environment
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U.S. has devoted nearly $45 billion to climate
change since 2001 for science, research and
development, international assistance and incentive
programs. $8.6 billion more in FY2009 requested.
$42.5 billion available for federal loan guarantees to
promote the commercialization and deployment in
the U.S. of clean energy technology.
Addressing the Environment:
The Major Economies Process
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MEP countries
represent over 80% of
the world’s economy
and 80% of the world’s
GHG emissions.
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Seek consensus on a series of recommendations
for a post-2012 climate framework to be agreed in
the broader UN negotiations.
International Cooperation
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Energy demand growth driven from abroad.
U.S. working with India, China, Russia, Brazil, the
EU and others to improve energy efficiency, deploy
clean energy technology, promote biofuels, and
coordinate R&D.
The IEA brings together most major energy
importing countries to work on these issues and
coordinate emergency response.
Free, open and competitive markets for energy
trade and investment are essential to increasing
energy security.
Enhancing Cooperation –
The Clean Technology Fund
Will deploy advanced clean
energy technology to
developing countries.
 Will target a broad array of
sectors, including renewable
energy, transmission,
transportation, and building
efficiency.
 U.S. committing $2 billion. The UK and Japan
are already partner countries.
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International Cooperation: European
Energy Security
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European energy security important to the U.S.
EU energy security would be enhanced by
moving to a truly integrated internal market.
Achieve greater diversification of types, sources,
and routes of European energy supplies.
Russia – Investment and Energy Efficiency.
CONCLUSION
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The energy challenges we face are difficult, no
silver bullet.
Action on many fronts required simultaneously.
Rewards will be:
Firmer foundation for our economy
 Cleaner environment
 More secure nation
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