6 October 2009

Taking back energy options

By Ellen Fussell Policastro

There is far too much "political hype" surrounding the energy crisis in the U.S., at least that is what John Hofmeister, founder and chief executive of Citizens for Affordable Energy, thinks.

While supporters at the 2008 Republican Convention shouted “Drill, baby, drill,” those at the Democratic Convention chanted, “No more coal!” Neither set of solutions is feasible for the future of our energy supplies, said Hofmeister who is today’s keynote speaker at ISA EXPO. “We need to create a federal energy reserve board, which will be an independent regulatory agency to govern energy for the future.”

As former president of Shell Oil Company, Hofmeister thinks we should be demanding more, and he will explain why increases in four critical areas (energy, technology, environmental protection, and infrastructure), called “The 4 Mores,” will ultimately lead to clean, abundant, and affordable energy. These are the building blocks of a grassroots effort to educate citizens and government officials about affordable energy solutions, environmental protection, energy alternatives, efficiency, infrastructure, public policy, competitiveness, social cohesion, and quality of life.

“What has happened in our dialog on energy as a nation is we have let political determinations set the agenda rather than practical solutions,” Hofmeister said. “Unfortunately the energy industry has done a poor job of communicating its reality to the American people. They have left the space to ideologues, who look at their favorite solutions. More energy from all sources means a practical combination of all sources for energy because the future of the country will need all those sources. It means hydrocarbons remain important for decades to come. While we learn our way forward with alternative forms of energy such as wind, solar, biofuels, and hydrogen, the focus on future supplies, if it is not addressed to all forms of energy, will do great harm to the American supply side—there won’t be enough energy to go around.”

Roots of change

Hofmeister got started in addressing public information as president of Shell, when he recognized the industry was doing very little with either the oil and gas or electricity industry to explain to the American people how energy works. “It was clear to me during the 2005-08 period when gas prices were going up, the extraordinary consternation by consumers and politicians alike, all fingers of blame were pointed at the oil industry. But the oil industry was not the problem, it was the solution. If we are going to have lower prices, we need more oil,” he said. And while “the industry was prepared to produce more, it was prohibited by public policy. Over the past 35 years, the imports of oil into this country have more than doubled. Also, there has been a public policy moratorium on offshore oil production over 85% of the Continental shelf.  So if the oil companies wanted to explore, they were disallowed,” Hofmeister said. “The drill-baby-drill crowd says let’s drill everywhere anytime we choose. That is an ext
reme solution that may not take into account environmental sensitivity. You can have a thoughtful methodical plan as to how to open up portions of the 85% over a period of decades, which adds to the domestic supply base of the nation.”

Who makes change?

Hofmeister is really targeting individuals and energy-consuming companies with his message. “I want them to support the notion that more education will lead to a grassroots movement that demands a nonpolitical solution, which is the creation of the independent regulatory agency,” he said. “If grassroots Americans don’t demand it, it will never happen because it means politicians giving up what they like to do best—making decisions about who gets and who doesn’t. Now, if you’re in the wind or solar business, you’re getting public support, including free taxpayer dollars. If you’re in the oil business, you’re getting nothing except new taxes.”

Anyone who consumes electricity or liquid fuel will benefit from hearing Hofmeister’s talk because “they are overpaying for what they’re buying,” he said.

Citizens for Affordable Energy is directly involved in promoting education, “but we’re just getting started,” Hofmeister said. “

Companies can get involved by signing up on the web site at www.citizensforaffordableenergy.org.