Look at the Private Sector for US Energy Plans

While I agree that sustained $100+ oil is likely to become reality due to growing global demand and the low likelihood that supply will be able to keep up with demand, comments like “the US has no real energy plan.” are becoming incredibly trite. The USA is not a centrally planned economy and the transition from petroleum based fuels to other sources will be dictated by the economics, so we really need to stop looking to our politicians for the answer because they are always behind the curve and we don’t elect them to solve these types of problems, but rather to make policy that facilitates the private sector’s solutions to these problems. While policy has a way to go, I don’t think this means that the private sector does not have a plan. For example, Chesapeake (CHK) and Devon (DVN) are hard at work in developing our nation’s shale gas reserves and their results so far are very encouraging. With natural gas presently trading at less than one fifth the cost of gasoline on a per unit energy basis, they are opening many CNG stations in Oklahoma it won’t be long before this moves into other states.

I think that those who continue saying how behind the USA is in energy development really need to take a look around at all of the projects that are planned or in development stages. We are not the leader in electricity from renewables because we are still #1, #2 and #3 in coal, natural gas, and oil production, respectively, so we have not needed to move to renewables for electricity production like smaller countries with fewer reserves, but in spite of this there are 2 large solar projects planned in California and numerous wind projects across the midwest, so I don’t think we are so far behind like many people seem to suggest.

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