Saturday, August 28, 2010

Global Energy Leadership: Where is it?

The August 23, 2010 issue of Time magazine hosts an advertisement talking about a "Sustainable Transport" Panel held at the Cape Town Global Forum in June 28. The panel of experts consisted of Jeremy Bentham, VP of Royal Dutch Shell, Manfred Bischoff, Chairman of Daimler, Lorenzo Simonelli, CEO of GE Transportation and Trevor Manuel, South Africa Minister of National Planning. The focus of the panel was to discuss alternative energies and how goods will be moved around the world in the face of declining petroleum reserves, i.e. oil. I recommend the full article to you.

A couple of interesting facts:
  • Biofuels now comprise 1% of our current fuel supply and will double in the next decade.
  • The us of fuel in the US is 300% that of Europe on a per person basis.

Mr. Bischoff made two interesting comments: "Well, we believe that individual mobility is an expression of individual freedom. Everybody is looking to get that in some form. We don't know exactly when, but for sure a natural resource by definition is finite. We have to find alternatives to satisfy the need for individual mobility. So we're looking at electric mobility, both battery and hydrogen, but both are electric drive.

As much as I'm enthusiastic about electric mobility, we have some unresolved issues. If you look at the magic triangle of battery storage, charging and lifetime, we are still far away from having a battery car as the ultimate solution. I think hydrogen may be an intermediate solution."

Here are the two points that raised my eyebrow:

Trevor Manuel: "One of the difficulties that confronts us is short term-ism in government. The reason we emerged from the Copenhagen climate talks last December with a thin agreement was because government leaders are worried about the electoral cycles. Issues like the price of carbon and gasoline that affect voters. The blowout in the Gulf of Mexico says to citizens of the U.S. that there's a problem with the choices we've made. But moving the population along is a big challenge. They don't want to make the hard decisions."

Mr. Bischoff added: "You can't get too far ahead of the customer because you'll lose your customer. We'll do what our customer wants. The customer is influenced by many things, including government regulation. And government leaders are not, as Trevor Manuel pointed out, jumping too far ahead because every four years you have an election. The current generation likes to have nice things and doesn't want to save them for the next generation. So industry alone can't support it. We need collaboration."

What do these four points say to me?

  • We have no global energy policy for alternative fuels
  • We're squandering fuel in the US at an obscene level - and probably in the rest of the world as well
  • We have no leadership in the US or in any other country on energy
  • Business needs and is asking for government leadership, and in a somewhat cowardly way, and are saying that they're simply providing the goods that the customer wants - fancy, gas-guzzling cars to allow us all to express our individuality regardless of the cost or consequence. (We'll talk about business leadership in another blog.)

So, where is the leadership? What are the leaders of the US, England, Europe, Japan, Australia and others saying and doing to provide leadership in this critical area? In my view, absolutely nothing. They blather on in pre-election speeches about the need for an energy policy but they do virtually nothing when in office. Why? Because speaking the truth isn't necessarily what people want to hear. We want to hear our politicians say that we can continue living our lives in complete freedom to do what we want, when we want with no consequences whatsoever. This is pure folly and cowardice.

Leadership requires the intestinal fortitude (i.e. - guts) to say what needs to be said. Did Franklin Roosevelt shrink from his duty when he took the US to war after Pearl Harbor was attacked? Did Harry Truman hide in the corner when given the opportunity to drop an atom bomb on Japan to end World War II in the Pacific? Did John Kennedy shrink from telling the Russians to immediately remove their missiles from Cuba? Each of those actions had clear consequences. Tens of thousands of US forces and many innocents died in WWII in the Pacific, and the US spent billions on the war. The consequences of dropping the bombs on Hiroshima and Nagasaki continue today but most all now agree it was the right thing to do - with the prayer that it never happens again. And, Kennedy drove a stake in the ground that the US would not be threatened in our own back yard by another power. His actions could have started a nuclear war, but it didn't. These were acts of genuine leadership when it mattered most.

The ability of future generations to sustain themselves in food, clothing, shelter and national defense is on the line when it comes to energy. We need leadership on this issue and we need it now.

We need to hear our president say: "Fellow citizens, we have a crisis before us. Within the next thirty to forty years or less, we run out of all oil, coal, natural gas and uranium. These "natural resources" are not limitless. There is only so much oil in the ground and we're using it at an incredible and increasing rate. The same is true for coal, natural gas and uranium. If we don't make serious changes to how we're living our lives and running our economies, our children, grand children and all future generations will face challenges they may not be able to handle.

As of now, we don't have enough alternative energy to replace those lost natural resources. Just as we committed billions of dollars to place a man on the moon, we are going to do the same to fund collaborative research on finding new, cost-efficient fuel sources for future generations. At the same time, I am issuing an executive order that ALL government agencies - including the military - are to reduce their fuel usage by 5% per year for the rest of my administration and beyond - until we find new, alternative energy sources. If we are to have a sustainable economy and sustainable society, we have no choice.

And, I'm asking you to do the same. I'm asking you to start driving only when you need to. Form car pools and consolidate your errands. Turn out lights at home when you're not using them. Turn up your thermostats in the summer and down in the winter. I don't need to buy a new sweater to stay warm in the winter; I have plenty in the closet. Everything we buy and every place we go uses energy.

I'm asking each of you to go to www.DOE.gov to find a detailed list of things you can do right now to save energy in your home and business. And, when you're done reading the website, write down what you can start doing immediately and then turn off your computer if you're done. It uses energy, too.

In the coming weeks, I will be meeting with leaders in the energy field, business, government agencies, university leaders, our military and fellow heads of state from around the world. No one person or group of people can solve this enormous challenge by themselves. It will take commitment on a global level like we've never had before. But, I believe we can address and successfully meet this challenge. In my view, we have no choice. The future of our civilization, as we know it, is at stake. We are making energy and alternative energy the focus of this administration for the remainder of our time in office.

You may ask: what changes are YOU going to make, Mr. President? We're doing the same at the White House. I've ordered that all lights be turned out when no one is in the room and that thermostats be reset. We're taking our vacations at a lovely spot that you, the taxpayer, provided to us: Camp David. It's close to the White House and a beautiful spot to rest and relax. I'm going to be traveling less and asking that our US Ambassadors hold more meetings on my behalf around the world. It will cut down on the enormous amount of fuel that Air Force One uses. The Vice President is doing the same. We have plenty of work to do here at home. Plus, we're using video conferencing more. I don't have to be face-to-face with someone for every meeting. If it is important, I will be there in person."

THIS is the leadership we need from Washington, London, Paris, Tokyo, Moscow, Brussels and every capitol around the world. If you agree with me, let your leaders know - wherever you live. And, think about the changes YOU need to make in your life. It is, after all, our future and the future of our children that we're talking about. If you don't agree with me, please tell me why.


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