Energy insecurity

Since the State of Union address, President Bush has continued to echo his message of reducing our dependence on oil through technology and alternative sources. Since the speech, events across the globe have only confirmed that the U.S. faces some serious energy supply challenges.

The challenge is energy security-reliable supplies at reasonable cost. At more than $60 per barrel, the markets are already nervous — jumpy at the potential of an Iranian embargo that could send prices through the roof. Even before Iran, crude oil markets were already tight, with very little spare capacity to meet growing demand in the U.S. and Asia. This is driven by a radical change in industry structure that bodes ill for the future of supply.

washingtontimes