Senate Energy Committee on ANWR and US Energy Independence
The Senate Energy Committee was in session today hearing testimony on US energy independence including discussions on ANWR. Chairman Dominici and members heard testimony from James Woolsey - President of Booz Allen Hamilton, Susan Chischke - Ford Motor Company, Frank Verrastro - Center for Strategic and International Studies, and Amory Lovins, of the Rocky Mountain Institute. Discussions ranged from the domestic production of oil, to the economic and practical potentials of alternative energy forms for cars and transport.
Central to the discussions were practicality and realism of trying to wean America off imported oil. Collectively the group agreed that there was no one solution but rather a “portfolio” of solutions was necessary. That portfolio included increased subsidies on all forms of alternative fuels, increased domestic production of energy sources, (most notably mentioned from the 10-02 Area of ANWR), and a more realistic government and public attitude toward our energy future. Simply axing one source of energy and favoring fledgling newer technology was agreed, unrealistic.
Some brief notes of testimony follows:
The US will spend $250 billion on importing oil this year. In doing this, according to Mr. Woolsey, it borrows nearly $1 billion per working day to pay for this oil. This deficit, as Mr. Woolsey stated, is not only bad for the economy but more importantly a major national security threat. Woolsey stated it was more an “oil security, not energy independence” problem that we need to be worried about.
The US “pays for both sides” Woolsey stated about our oil import dollars often going to anti-US regimes such as Venezuela, and Iran. Basically we are “funding hatred” of the US, Woolsey commented. Increasing domestic production of all energy sources as well as government promotion (subsidy) of alternative energies to use in transportation was his way to help stem this problem.
Senator Dominici and Senator Murkowski both commented on the importance of domestic production particularly from ANWR being crucial to the solution of solving any energy/security problem the US has. As Chairman Dominici stated, “ANWR oil is more secure than any oil from abroad”.
Ms. Cischke’s most striking comment was in response to Chairman Dominici’s question of her company’s support of CAFÉ standards. She responded that the auto industry needs subsidies from the government to help develop alternative fuel cars and their respective alternative fuel delivery infrastructures yet they were not in favor of the government imposing higher CAFÉ standards on the auto industry to help increase efficiency and decrease dependence on foreign oil. She further stated that, “in the end it is up to our consumers” what will sell and what wont (read – what the auto industry will produce or what it will not), noting that sales of hybrid cars have slumped dramatically in the last few years as “first time buyers have made their purchases and the rest of the population decides what they will do”.
Perhaps the most interesting testimony came from Frank Verrastro, former Penzoil president and Department of Interior executive. His approach was much more holistic and encompassing of all technologies. Mr. Verrastro states,“that focusing on energy independence, while politically attractive, may in-fact be a misguided quest and that we would be better served by mapping out a strategy for managing the transition to a different energy future as our current path is clearly unsustainable.” Verrastro went on to comment, “even assuming a significant contribution from a wide range of alternative fuels, conventional energy sources will continue to dominate the landscape for at least the next several decades.” This being a comment echoed by all.
No technology mentioned or currently available, or being developed has the ability to displace oil from our infrastructure’s needs. Similarly, many of the alternative energies under development such as bio-fuels, and ethanol rely on petroleum and natural gas (for lubrication, fertilizer or hydrogen) to exists. Indeed the Energy Information Administration predicts that US demand for petroleum products is projected to increase by over 30% in the next 24 years and yet world petroleum product production is at its near maximum with many immerging markets adding to world demand.
Currently 97% of all transportation in America uses petroleum products as its source of energy making the US especially vulnerable.
The written testimony from the hearing is available at the Senate Energy and Resources web site. Verbal comments to senator’s questions can be obtained at the Senate Recording Studio. Tel: (202)-224-4977
http://energy.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=1534