Focus needed on energy supplies, flexibility and environment, CERA says

WASHINGTON, D.C., March 19, 2001 — Flexibility, access to development and the integration of energy and environment in a coordinated, realistic way are the key cornerstones for building a sound energy supply and delivery foundation for the future, Cambridge Energy Research Associates (CERA) Chairman Daniel Yergin told the National Energy Summit at the U.S. Chamber of Commerce this morning.

"We need as a nation to focus on energy, which has been taken for granted since the Gulf crisis a decade ago. Supply can no longer be taken for granted. A sound energy supply and delivery system is fundamental to economic growth. The interconnection between energy and GDP is a two-way street," Yergin said. "An energy system that is overstretched and subject to big price swings is not good for our economic health."

Energy prices, shortages and supply problems over the last few years have put infrastructure adequacy and inadequacy front and center, driving home the need to integrate environmental considerations, but with a coherent, rational, understandable process that incorporates best practices.

Allowing access to development in a way that balances environmental and economic objectives is a highly significant issue that needs rational, open dialogue. Yergin said there must be case-by-case assessment, a diversity of solutions, flexibility and sound portfolio strategy.

"We've learned from the energy cycles over several decades that the one thing you need is diversity, whether in terms of contracting for gas and power, mixing new supply with conservation, aligning short and longer terms, encouraging renewables, or in fuel choice. We need to promote and balance all resources and options," Yergin said.

A U.S. energy policy must also be developed with a continental perspective, since many of the pressing issues for gas and power are not limited to the United States. Dialogue with Canada and Mexico is very important, Yergin said.

Natural gas, which accounts for 25 percent of total energy supply, is the real swing fuel for the economy today, according to Yergin. Its role in electric power is growing, with over 90% of projected new capacity fueled by natural gas. Supplies are tightening, however, and by the end of 2000 were 6% lower than 1997 levels. As a result, attention is being focused on developing the following frontiers:

— Deepwater Gulf of Mexico

— Liquefied natural gas (LNG)

— Arctic gas, including Alaska North slope gas

— Offshore Atlantic Canada

"These frontier projects can be economic," Yergin said. "But for that to happen requires a spirit of cooperation. With these projects we have the potential to bring what consumers need, which is reasonable prices, reliable, environmentally friendly energy supplies both from the frontiers and traditional resources."

"We need a streamlined approval process. We also need better alignment and coordination between power development and gas supply development. But what is really needed," Yergin said, "is the recognition that major new natural gas development is not opposed to, but rather essential to meet overall environmental objectives - and that such development is urgent in order to keep the new economy humming and the old economy working."

Citing CERA's new study, Beyond California's Power Crisis, Yergin also warned, "California's electric power crisis this summer could further damage our already bruised national economy. The gamble is bigger than many of the participants recognize."

Cambridge Energy Research Associates (CERA) is a leading advisor to major international companies, financial institutions and organizations, delivering strategic knowledge and independent analysis on energy markets, geopolitics, industry trends and strategy. CERA is headquartered in Cambridge, Mass., and has offices in Bangkok, Beijing, Calgary, Houston, Mexico City, Moscow, Oakland, Oslo, Paris, Sao Paolo, Seoul and Washington, D.C.

Sponsored by FLSmidth

Related Articles

Profiling Geothermal Energy in North America

North America holds diverse geologic conditions, economic and political contexts, and geothermal experiences.

Energy Reform Package to Increase Competition And Private Sector Opportunities in the Mexican Power Industry

In April, Mexican President Enrique Pena Nieto proposed a legislative reform package that was approved by the Mexican Congress, overhauling the nation's energy industries.

Follow Power Engineering on Twitter
Latest News

Products May 2015

Callaway Energy Center's Replacement Reactor Vessel Closure Head Project

Replacing heavy equipment is one way utilities can extend the life and increase the reliabili...

Managing CCRs and Process Water: Why Handling Bottom Ash Wet May Remain The Best Option

The U.S. coal-fired electric generation industry once again finds itself in the crosshairs of...

Achieving Optimal Economic Benefit from Air Inlet Cooling

Gas turbines have been widely deployed in industrial applications for decades and are used to...

Southern Company acquires 103-MW solar project in Georgia

Southern has acquired or is constructing more than 1,100 MW of renewable energy generating ca...

Making Sense of Greenhouse Gas Regulations

Heaven help the country's power producers. They've lately faced a perfect storm of environmen...

Planning for the Wastewater Impacts of the CCR Rule and Effluent Limitation Guidelines

In April 2015, the U.S. Environmental Protection Agency (EPA) published a final rule in the F...

The Role of Coal: A roundtable of four industry executives discuss the future of coal-fired power generation

No one will deny that the coal-fired power industry faces many challenges as it moves into th...

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

MIC President Marybeth Miceli Named to AATA Board of Directors; AATA to Provide Free NDT Job Training to Vets, Disadvantaged Young Adults

MIC President Marybeth Miceli Named to AATA Board of Directors; AATA to Provide Free ND...

Alexium Anticipates Potential Addressable Revenue of More Than US$10M for 2015

Alexium Anticipates Potential Addressable Revenue of More Than US$10M for 2015

Upcoming Greenhouse Webinar Teaches Companies How to Engage Engineers in Hiring Top Tech Talent

Upcoming Greenhouse Webinar Teaches Companies How to Engage Engineers in Hiring Top Tec...

Perma-Fix Environmental Services to Present at the Marcum MicroCap Conference

Perma-Fix Environmental Services to Present at the Marcum MicroCap Conference

Blue Earth Receives Notice From NASDAQ That the Company Is No Longer Subject to a Possible Delisting

Blue Earth Receives Notice From NASDAQ That the Company Is No Longer Subject to a Possi...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>