|
Energy Security Current Issue China and US should set up a strategic dialogue on energy issues Interview with Dr. Gal Luft of the Institute for the Analysis of Global Security, originally published by 21st Century Business Herald in Chinese. A crude threat The terrorist campaign against Iraq's pipelines demonstrates that pipeline attacks are no longer a tactic but part of a sustained, orchestrated effort that can deliver a significant strategic gain. They can also cause significant damage to the global oil market. Next in line to emulate the insurgents in Iraq could well be Islamist terrorist groups operating in Central Asia, among them Chechen separatists and the Islamic Party of Liberation, a group that seeks to carry out a holy war against the West and is a suspect in the recent wave of deadly attacks in Uzbekistan. Chilly response to U.S. plan to deploy forces in the Strait of Malacca Whether something is profoundly wrong in the dialogue between the U.S. and the two Asian powers is an important question in itself, but the real issue is what is the best mechanism to secure the world's most important shipping corridor, through which one quarter of world trade and half of the world's oil and two thirds of liquefied natural gas move each day. North Sea oil is declining Since the 1970s North Sea oil has not only been a major source of wealth for both the British and Norwegian economies but also a way for Europe to cut its dependence on Middle East oil. Now many of the major fields in the North Sea are in decline and the North Sea is about to lose its prominent role as one of the world's leading oil domains. Terror's Big Prize Since September 11, pipelines, tankers, refineries and oil terminals have been attacked frequently. Except for a sharp increase in maritime insurance premiums in these regions these attacks had marginal strategic consequences. But in at least two cases oil terrorism could have rattled the world. Libya: changing its spots? Libyan crude oil is particularly attractive due to its very low sulphur content, which requires much less refining than higher sulphur oil. It is extremely high quality crude, whose characteristics are not easily found elsewhere. Despite its unique treasure, Libya's production capacity is relatively small, standing on 1.5 mbd of crude, or 2% of world supplies. Since the 1988 Lockerbie bombing Libya had been under U.S. and UN sanctions which hindered its ability to generate enough investment to develop its oil sector. Libya's decision to embark on a rapprochement with the U.S came at unsurprisingly perfect timing, just as concessions for major U.S. oil companies were about to expire. On the technology front Fuel Cell power plant installed at NJ College The fuel cell will provide 250 kilowatts of electric power as well as heat, to several buildings on the campus. Biomass-to-Ethanol Progress The enzyme costs of converting cellulosic biomass into sugars for fuel ethanol production have been reduced approximately twenty-fold with technology developed by the National Renewable Energy Laboratory (NREL) and Denmark based Novozymes, biotech-based leader in enzymes and microorganisms. EU study: Methanol from biomass - competitive with gasoline A study of a new patented Swedish technology concluded that the alchohol fuel methanol can be produced from biomass via black liquor gasification at a cost competitive with that of gasoline and diesel. IAGS is a publicly supported, nonprofit organization under section 501(c)3 of the Internal Revenue Code. IAGS is not beholden to any industry or political group. We depend on you for support. If you think what we are doing is worthwhile, please Support IAGS. All contributions are tax deductible to the full extent allowed by law. Property of The Institute for the Analysis of Global Security © 2003. All rights reserved. Back Issues |
National security experts call to reduce dependence on oil
On September 27 a group of national security experts and representatives of prominent Washington think tanks and public policy organizations including the Institute for the Analysis of Global Security (IAGS,) Foundation for Defense of Democracies (FDD,) Center for Security Policy, Hudson Institute, National Defense Council Foundation (NDCF), and the American Council on Renewable Energy (ACORE,) released an open letter to Americans and an accompanying blueprint for energy security called "Set America Free," calling for immediate action toward reduction of America's demand for oil. The document spells out practical steps which can be undertaken over the next four years and beyond to dramatically improve America's energy security. Members of the group called upon America's leaders to adopt the plan, with a view to rapidly expanding fuel choice in the U.S. transportation sector beyond petroleum while exploiting currently available technologies and infrastructures. If the plan is carried out in full, U.S. oil imports would drop by as much as 50 percent.
"Set America Free began with the proposition that we have a serious security problem and we need to look at existing vehicle types and processes to make transportation fuels that can run on these vehicles. And we need to do it now," said James Woolsey, one of the effort's leaders. Gal Luft, executive director of IAGS, noted that America's relations with countries that own most of the world's oil reserves are at an all time low. "If you look at every global conflict we have faced in the past, there was always a technological component. We always had technology as a game changer. And this conflict calls for one as well."
Anne Korin, director of policy and strategic planning at IAGS, explained that the Set America Free project analyzed the costs and benefits, time frame for commercialization, feasibility, and economic impact of each path to energy security. "We worked with energy, technology, and policy experts with a wide variety of expertise to develop a plan that could significantly reduce our dependence on oil within a reasonable time frame and at reasonable cost...Since two-thirds of our oil is consumed in the transportation sector displacing oil in this sector was our focus. Only 2% of electricity in the U.S. is generated from oil so shifting power generation away from oil does not solve our problem. Additionally, we realize that full market transformation of the transportation sector is a very long process – 15 to 20 years. That is exactly why we must start this process without delay." Set America Free upholds a number of principles: Due to the urgency of the issue, the coalition believes that there is no time to wait for the commercialization of technologies that are still at the research and development phase. The group believes the U.S. should implement technologies that are ready for deployment and simply need a push to enter the mass market. Bill Holmberg of ACORE, a member of the coalition, remarked that it makes more sense to use electricity to power plug-in hybrid vehicles (PHEV), a technology that exists today, than to use it to produce hydrogen to fuel vehicles in a technology that it still far in the future. The coalition also believes that rather than investing significant time and resources in developing new refueling and distribution infrastructure it makes most sense to rely on existing infrastructure to the extent possible. The coalition emphasized that the U.S. should better utilize its domestic energy resources. While America is not rich in oil nor in natural gas, it has a wealth of other energy sources, among them a quarter of the world’s coal supply, abundant biomass, municipal waste, and electricity sources such as nuclear power plants, solar, wind, hydro and geothermal power. All of these resources can be used to produce made-in-America transportation fuels that are not made from petroleum. While the group's prime concern is national security, its members recognize the need to be sensitive to environmental concerns and encourage green groups to join the coalition. All the solutions proposed are far more environmentally friendly than the status quo. The coalition called upon the American public and its representatives and shapers of public opinion to endorse the Set America Free plan and put energy security at the top of the national agenda. The Natural Resources Defense Council (NRDC) has already responded to the call. "This is a an effort to bring together tree huggers, do gooders, sod busters and cheap hawks to agree on a common approach," said James Woolsey. "It's a very good coalition." Top |