Agenda
Challenges
The US Federal Government lacks a concrete energy policy, and instead provides incentives, tax breaks, subsidies and allocates financial resources to government departments that develop certain energy sectors.
Political
The US Department of Energy maintains that the government must invest in the improvement of existing sources (fossil fuels) of energy in order to provide a bridge between current and future technologies.
This includes the following: Maintenance of US leadership in Nuclear energy, as it supplies 20 percent of the nation's electricity, and 70 percent of the nation's clean, non-carbon electricity; The importance of the US developing the technology to ensure that base-load electricity generation is as clean and reliable as possible, which will allow the continued use of the abundant domestic coal resources in the US, while reducing greenhouse gas emissions; Ending tax subsidies to fossil fuel producers.
This measure is in accordance with President Obama's pledge at the G20 summit in Pittsburgh to phase out certain subsidies for fossil fuels in order to transition to a 21st century energy economy.
Status
International Standing
As of 2009, the US was the second highest producer of renewable energy, following China.
The US is currently the world's second largest consumer of energy, after China. It has the biggest thirst for oil, with 21 percent of global demand. While per capita, the US is seventh in the world in energy usage.
Import/Export
Canada is the most significant source for US energy imports, providing the highest foreign volumes of primary energy and electricity.
Budget
The US Department of Energy 2012 budget request represents a strong commitment to bringing the next generation of grid modernization technologies closer to deployment and commercialization. The increased investment will emphasize the integration of renewable energy sources, focus on long-term system planning, expand analytical capabilities, and promote aggressive approaches to next-generation grid technologies.
The 2012 budget will also be utilized for expanded analysis and collaboration with the state, local and regional bodies on interconnection-level advanced transmission system approaches.
Institutional Structure
The US Department of Energy (DOE)
The United States Department of Energy was borne out of the energy crisis of the 1970's, which demonstrated the need for unified energy planning within the federal government. In 1977, President Jimmy Carter signed the DOE Organization Act centralizing its responsibilities.
The new department was responsible for long-term, high-risk research and development of energy technology, federal power marketing, energy conservation, energy regulatory programs, a central energy data collection and analysis program, and nuclear weapons research, development and production.
Department of Energy
Energy Information Administration (EIA)
The EIA is one of the US's primary sources of information relating to energy. The Department of Energy Organization Act of 1977 turned the EIA into the federal government’s primary authority on energy statistics and analysis.
Composition
Use
Non-Renewable
About 86% of all types of energy used in the US are derived from fossil fuels. In 2007 the largest sources of the country's energy were petroleum (40%), natural gas (24%), and coal (23%), followed by a combination of nuclear power, hydroelectric dams, and miscellaneous renewable sources (15%).
Renewable
a. Hydropower accounts for about 7% of US electricity usage.
b. Wind power currently supplies about 1% of US energy needs, but its capacity is expanding rapidly.
c. Solar power provides less than 1% of US energy needs, but is expected to increase.
d. Geothermal energy currently meets less than 1% of US energy needs.
e. Biomass power is the second most important source of renewable energy in the US.
Research & Development
Status
The Energy Independence and Security Act - A 2007 Act of Congresses purpose was "to move the US toward greater energy independence and security, to increase the production of clean renewable fuels, and to protect consumers" amongst other measures.
The American Recovery and Reinvestment Act of 2009 (ARRA) included $27.2bn in renewable energy research and programmes. Recovery Act investments are focused on: energy conservation and renewable energy sources ($16.8 bn); Loan guarantees for renewable energy and electric power transmission projects ($2.4bn), grid modernization ($4.5bn), carbon capture and sequestration ($3.4bn), basic science research ($1.6bn).
Areas
In his 2011 State of the Union address, President Obama clearly outlined his roadmap for reinventing the US energy policy to meet the demands of future generations: "Instead of subsidizing yesterday's energy, let's invest in tomorrow’s." His goal is to have clean energy sources account for 80 percent of America's electricity by 2035.
The US Department of Energy's Loan Guarantee Program supports the development of renewable energy projects that when completed, will power hundreds of thousands of homes while dramatically reducing CO2 emissions. The Loan Guarantee Program increases incentive for investment in particular industries.
Department of Energy
Distribution
Agenda
In December 2007, Congress passed, and the President approved, Title XIII of the Energy Independence and Security Act of 2007 (EISA), which provided the legislative support for DOE's smart grid activities and reinforced its role in leading and coordinating national grid modernization efforts.
In its national leadership role, OE has partnered with key stakeholders from industry, academia, and state governments to modernize the nation's electricity delivery system. OE and its partners identify research and development priorities that address challenges and accelerate transformation to a smarter grid.
Transition to Globalisation
Advancing Sino-U.S. Energy Cooperation Amid Oil Price Hikes
The United States and China are the largest and second largest energy consumers in the world, respectively. Last year China was a net-importer of 159.28mn tons of crude oil, about 46% of its total consumption. The size of US petroleum imports was 3.2 times larger than those of China, and Americans depend on foreign sources for over 60% of the energy they consume.
With that in mind, Beijing and Washington have similar concerns in their energy policies and face the same set of challenges.They must cooperate, through joint or parallel action, to keep global energy supplies open, secure, and at an affordable price level. Neither country can hope to achieve much without the support of the other.
Globalisation > Economy > Energy > Sources > Non-Renewable
Transition to Political Tools
Canadian Oil Exports to the United States Under NAFTA
There is a widespread belief that NAFTA requires Canada to sell a fixed percentage of its total oil production to the US. It has been suggested that, under NAFTA, Canada can do nothing to curtail oil exports to the US, even in the event of energy shortages at home. This claim is not fully true, but is based in one significant fact: that NAFTA places a limitation on the Canadian government from implementing policies that interfere with the normal functioning of energy markets in North America.
Hence, provided they have the demand and can pay the price, Canadian consumers could conceivably buy 100% of all energy produced in the country without violating NAFTA.
Political Tools > Regional > North America > NAFTA > Dom. Policies
Transition to Political Actors
Democrat vs. Republican Energy Policies
In general, Democrats have opposed tax cuts and incentives to oil companies. They support developing renewable energy, such as Montana's state-supported wind farm and lean coal programs. They also want to set in place a cap-and-trade policy to try to reduce carbon emissions.
Republicans support increasing Federal investments into developing clean alternative fuels, such as ethanol, which, they hope, will result in less dependence on foreign oil.
Political Tools > National > USA > Dom. Policies > Economy > Energy
