History Lesson
The federal government has been grappling with the need to expand the nation’s energy arsenal for decades. The battle over energy security can be traced back to the oil embargo imposed during the Nixon years. In response, Nixon stated “Let this be our national goal: At the end of this decade, in the year 1980, the United States will not be dependent on any other country for the energy we need to provide our jobs, to heat our homes, and to keep our transportation moving.” Nixon even appointed a much heralded energy czar named William E. Simon, who also served as Treasury Secretary. Time magazine went as far as to say his appointment would “…vastly enhance his ability to impress on the rest of Government a sense of urgency about the energy crisis.” Nixon’s goal was followed by generations of presidents failing to deliver on this promise.
Energy and Global Competition
The Chinese government fired a shot across our bow last year when they announced that they were partnering with First Solar, an American solar manufacturer, to build a 2,000 megawatt solar farm. Not only were we beaten to the punch by China on a project that could have made a serious statement about our intention to substantively change course on how we power America, but an American company will no doubt be building this for them. Not only that, we can’t even have a reasonable debate on what American energy will look like in the coming decades. Politicians, including the president, throw out phrases like comprehensive energy strategy to try and sound like they are actually taking the lead on this issue, but the fact is, there is not a current version of any legislation that is being debated that would substantively alter our usage of fossil fuels. The U.S. House of Representatives’ bill mandates that 15 percent of the nation’s energy must come from renewables by 2020. The Department of Energy pegged fossil fuel production at roughly 57 quadrillion btu in 2008, while renewables made up roughly seven quadrillion btu. That is roughly 12 percent. As for usage, America used roughly 83 quadrillion btu in fossil fuels and seven quadrillion btu in renewables in 2008, which is approximately eight percent. We obviously have a ways to go, and the government does not have a comprehensive strategy to reach the House’s mandate, and that is if the climate/energy bill makes it through the Senate without being diluted to the point of amounting to nothing more than sound and fury signifying nothing.
The federal government allocated roughly $62 billion for energy-related projects in the Recovery Act, but only $16.7 billion of that is actually slated “for saving money through Energy Efficiency, building the domestic Renewable Energy industry, and restructuring the Transportation industry to increase global competitiveness.” This is compared to the $150 billion in spending President Obama proposed over the next decade, a statement made during the 2008 campaign. Even that figure looks pathetic when compared to the $210 billion Exxon has budgeted for drilling between 2008 and 2012. But that’s just it. The onus of delivering on the promise of alternative fuel should also fall with energy companies, and conversely consumers.
Tough Market
The green market is certainly an up and comer, but substantive change in the production of energy will remain elusive for some time. Energy interests are still companies, after all, and while they continue to generate record profits from the production of fossil fuels, we can’t expect them to begin to shift to manufacturing renewables. They make tons of commercials showing how conscious they are and how they’re preparing for a new energy future, but they are the biggest stumbling blocks to eventually getting there. The government should pass the same kinds of laws they enacted on the auto industry in the ‘70s if they want to see exponential growth in the green sector, but we as consumers should also be using our pocketbooks to demand the type of innovation required for a new energy economy. As long as consumers don’t care where their energy comes from and the government refuses to hold energy interest accountable, we can’t expect to see tangible gains in the production renewable energy.
While perusing the comments section at The Huffington Post, I kept seeing people demand that Congress give them more tax subsidies to buy individual solar panels. Not only is this less efficient than just building a solar farm in the Nevada desert, it doesn’t address the need to improve the grid and energy transmission. It also underscores a truly American trend, notably how we keep calling on benevolent figures to deliver things instead of coming up with a real strategy. More tax credits will help, but should we call for them during this kind of economic climate? A much better investment would be building solar and wind plants. This is a job creator that also drastically upgrades our infrastructure. We can begin to transform both consumer and provider with things like energy portfolio standards, namely the government mandating that a percentage of a utility’s energy capacity must come from renewable – something currently practiced by 29 states. This fixes the supply side and could spur investment, but consumers must begin demanding and consuming these products.
Light at the end of the tunnel…powered by renewable energy?
It’s no secret that we have a legitimate energy crisis, but distractions like offshore drilling and shale gas extraction are making it more difficult to begin the process of seriously auditing how we use energy. The drum beats for increasing production of dirty fuels are like the man in the alley offering us one more hit, further exacerbating our energy addiction. And like the strung out addict, we say we’ll get clean tomorrow. With regards to how we need to change our habits, as well how we use energy in the 21st century: tomorrow is here.
