Lots of energy, shortage of policy

The U.S. National Petroleum Council’s new report on global energy markets, believed to be one of the most extensive studies of its kind, received mixed reviews this week from greens and others whose policy ideas depend on an ever-present looming catastrophe. Especially put out by the 470-page report, titled Facing the Hard Truths About Energy, were the peak-oil theorists, who believe disaster is imminent as the world supply of conventional oil is set to peak, triggering a catastrophic decline.

There isn’t much disasterism in Facing the Hard Truths. It certainly aims to send an alert to the effect that “total global demand for energy is projected to grow from today’s huge base by 50% to 60% to 2030 — the result of rising incomes around the world and population growth.” Looking forward, it says that even 25 years from now oil, coal and gas will still account for 80% of world energy consumption


But such an increase in demand does not portend doom; it simply means making sure policymakers in the United States and around the world don’t turn this increase in energy demand into a crisis, a crash or worse. “The world is not running out of energy resources,” says the report.

One reason the report received lukewarm receptions is that it was produced by a committee

headed by Lee Raymond, the former chairman and CEO of Evvil-Mobil, the world’s largest oil company and a pariah among climate activists. They’ve been trying to get Mr. Raymond removed from the study since he was appointed by U.S. Energy Secretary Samuel Bodman. “Mr. Raymond is unquestionably the worst choice for leading a study on resolving America’s energy crisis,” said one activist group.

Financial Post