In the late 1990’s a barrel of oil cost $10 on the world market. Today’s cost is over $70 per barrel, and some analysts are predicting it to go to $100 per barrel within the next couple of years.
In 2003 over 30,000 people died in France as a result of a heat wave, which appear with greater frequency and ferocity than at any time since weather records have been kept. Glaciers are receding. As a group, scientists have accepted global warming as a reality, and many of those same scientists place the blame squarely on our burning of fossil fuels.
Over the past 50 years, everything’s changed, yet nothing’s changed. Simply stated, there are human beings and more human beings using fossil fuels for personal transportation than ever before. There is more air conditioning, more refrigeration, and more lighting. All of which require greater amounts of electricity. Those are major changes.
Yet for all the significant changes that have occurred, there has been little change in the types of energy consumed, or – or more importance – our approach to solving any of our long-term energy issues. And, of more immediate importance to Americans, over the past 50 years we are less energy independent, not more.
If energy independence is the objective, is it better to have a plan, or is it better to let market forces determine who purchases the energy resources, and for how much? I put this question to Arnold Baker, Chief Economist for Sandia National Laboratories and former president of the International Association for Energy Economics (IAEE).
Baker indicated that having a comprehensive plan for energy independence is important, noting “it does make sense for the government to have an integrated policy for energy independence, because it is not just energy we are talking about, but economics and the environment as well. An integrated policy would balance our need for energy with our need for a clean environment and a strong economy. Additionally, it would provide a road map for others to follow.”
When asked why the U.S. has failed to put together a long-term, strategic plan for energy independence, Baker pointed out that “every individual and interest / advocacy group is affected by energy. The Sierra Club has its agenda, as does a congressional representative from Alaska or Texas or Oklahoma, as do so many other groups. You cannot find one person or organization in our society that isn’t directly affected by energy cost or energy availability. All have a voice and all influence in the debate. As a result, it’s been nearly impossible for politicians to reconcile competing interests. But it’s important to try and do so.”
According to Baker, the primary benefits to having a comprehensive energy policy geared toward independence include improved economic growth, economic and physical security, and a cleaner and healthier environment.
Improved economic growth results from being free of world oil markets and their resulting price fluctuations. Improved economic and physical security will result from, among other things, eliminating the need to be entangled in Middle Eastern politics. And a cleaner and healthier environment results from using advancements in technology to reduce emissions and find alternate methods of delivering and consuming energy.
Glenn Lewin, President, Newberry Research
Nationally, Lewin is best known for the 2002 book he authored THE BUSINESS REPORTER’S HANDBOOK, and the 2005 book COVERING BUSINESS he co-authored with Robert Reed. He has also worked on various projects for nationally known businesses such as Illinois based Caterpillar, McGraw-Hill Publishing of New York, and many other leading corporations.
Mr. Lewin holds an MA in Industrial Counseling and Psychology, with honors, from Northeastern Illinois University, with an undergraduate degree from Monmouth College, IL. In addition Mr. Lewin earned a certificate in Applied Statistics and Data Analysis from The Bradford-Gibson Institute of Management. He also completed the Harvard Graduate School of Management’s executive program in Competition and Strategy.
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