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Klare: Obama’s Toughest Challenge
America’s Energy Crunch Comes Home
Michael T. Klare, Tom Dispatch
Of all the challenges facing President Barack Obama next January, none is likely to prove as daunting, or important to the future of this nation, as that of energy. After all, energy policy — so totally mishandled by the outgoing Bush-Cheney administration — figures in each of the other major challenges facing the new president, including the economy, the environment, foreign policy, and our Middle Eastern wars. Most of all, it will prove a monumental challenge because the United States faces an energy crisis of unprecedented magnitude that is getting worse by the day.
The U.S. needs energy — lots of it. Day in and day out, this country, with only 5% of the world’s population, consumes one quarter of the world’s total energy supply. About 40% of our energy comes from oil: some 20 million barrels, or 840 million gallons a day. Another 23% comes from coal, and a like percentage from natural gas. Providing all this energy to American consumers and businesses, even in an economic downturn, remains a Herculean task, and will only grow more so in the years ahead. Addressing the environmental consequences of consuming fossil fuels at such levels, all emitting climate-altering greenhouse gases, only makes this equation more intimidating.
As President Obama faces our energy problem, he will have to address three overarching challenges:
1. The United States relies excessively on oil to supply its energy needs at a time when the future availability of petroleum is increasingly in question.
2. Our most abundant domestic source of fuel, coal, is the greatest emitter of greenhouse gases when consumed in the current manner.
3. No other source of energy, including natural gas, nuclear power, biofuels, wind power, and solar power is currently capable of supplanting our oil and coal consumption, even if a decision is made to reduce their importance in our energy mix.
This, then, is the essence of Obama’s energy dilemma. Let’s take a closer look at each of its key components.
(9 November 2008)
API chief Gerard talks Obama victory, climate legislation prospects (video and transcript)
Monica Trauzzi, OnPoint, E&E TV
How will an Obama administration handle key energy policy issues like offshore drilling, oil company tax breaks and alternative fuels?
During today’s OnPoint, Jack Gerard, the new president and CEO of the American Petroleum Institute, gives his take on the effect President-elect Obama will have on the oil and gas industries. He also discusses next year’s climate change talks, expressing uncertainty about a cap-and-trade bill.
(10 November 2008)
New Cabinet Position – “Energy and the Environment” ?
Nate Hagens, The Oil Drum
Last night on the Change.gov website, the major ‘categories’ for the transition administration included the usual headings: ‘Commerce’, ‘Defense’, ‘Education’, etc. But there was a curious entry in the list: “Energy and the Environment”, (which is no longer there).
My eyes expected to see “Energy” and “Environment” under separate headings. (Todays listing of cabinet positions is now identical to the current admininistrations.)
But for a brief, heart pounding moment, I thought this might be a sneak preview into a sea change in the way policy leaders see the world, one unified Cabinet position, linking two critically interconnected areas, Energy and the Environment.
I expect it was a snafu, or I misunderstood what I was seeing. As such, this brief post is not about advocating or predicting such a cabinet position will emerge. But as we go forward in these challenging Liebigs Law times, such a cabinet position might be the first step in recognition both of limits, and of the wide boundary impacts of our internalize profits / externalize costs social system.
Of course there are risks with such a union…
(9 November 2008)
Obama set to push ‘big bang’ reform package
Edward Luce, Financial Times
US President-elect Barack Obama intends to push a comprehensive programme of social and economic reform beyond an immediate emergency stimulus package, Rahm Emanuel, the next White House chief of staff, indicated on Sunday.
Mr Emanuel brushed aside concerns that an Obama administration would risk taking on too much when it takes office in January. He said Mr Obama saw the financial meltdown as an historic opportunity to deliver the large-scale investments that Democrats had promised for years.
Tackling the meltdown would not entail delays in plans for far-reaching energy, healthcare and education reforms when all three were also in crisis, he said. “These are crises you can no longer afford to postpone [addressing].”
(9 November 2008)
Oil Depletion: Obama Faces Hard Political Decisions
Ron Cooke, Global Public Media
Washington insiders are well aware of oil depletion. It has been the subject of at least four reports funded by the United States Government, more than a dozen books, and multiple independent reports. Congress has taken testimony. Key figures in Washington have made speeches. Although there are some differences in the details, they are trivial in comparison with the broader perspective.
Ot is highly probable that oil demand will exceed oil supply within the next 8 years.
If you buy heating oil, propane, gasoline, or diesel fuel, you have already become a victim of oil depletion. Fuel prices are up. And they are up because the supply of oil failed to keep up with the growing demand for oil. That led to greed driven speculation. Oil prices over $140 a barrel. Then speculators discovered recessionary forces were driving down the demand for oil. Fear immediately replaced greed. The price of oil declined. Fast.
But do not be fooled by this temporary decline in the price you pay for fuels. OPEC will curtail production until demand picks up again. The fundamental trends have not changed. The supply of oil will not keep up with the demand for oil. Higher prices and shortages are in your future.
The Washington establishment’s failure to acknowledge oil depletion is not one of ignorance. It has been a matter of political expediency. Politicians prefer to avoid bad news. Depletion means higher prices and possible shortages. Depletion adds confusion to the problems of global warming. Depletion lends support to America’s presence in Iraq. Acknowledging oil depletion creates additional stress for our political system.
Yes. Oil depletion creates a real political dilemma for Barack Obama. If he acknowledges oil depletion – Peak Oil – then he will be expected to do something about it. Barack will have to challenge embedded political philosophy. He will have to find a way to change public opinion without causing a political crisis for the Democrats.
It will not be easy.
… In the spirit of being constructive, here are four suggestions:
1. Take an integrated approach to contemporary concerns about global warming and fossil fuel depletion. Global warming and fossil fuel depletion are in fact evil twins, and if we want to make intelligent choices, we need to deal with them as a package.
2. Persuade national leaders to form an oil and natural gas consumer’s union. Start with the United States, Canada, and the European Union. Invite China and India. This will give consuming nations the leverage needed to deal with supplier cartels, and – hopefully – lead to resource sharing agreements.
3. Find a way to deal with the Middle East. These nations have most of the world’s remaining deposits of cheap oil. For the sake of world peace, we must control the outcome.
4. Create a credible energy program. One with strong management, specific objectives, adequate funding, and a time line for accomplishment. Include public policy initiatives that promote conservation and the evolution of energy conscious life styles.
(10 November 2008)
