Energy

Supporting Population Growth & Protecting the Environment 

Two global energy concerns are the price of oil and level of carbon emissions.  The US DOE conservatively estimates that a barrel of oil cost between $110-120 by the end of the decade.   Population growth and the industrilaization of China is driving the demand for oil and higher price.  A recent United Nation's report estimated an increase in worldwide population from 6.5B to 9B people by 2040 implying production levels exceeding 100 million barrels per day.

Perhaps more alarming is the increase in CO2 levels and average temperatures from the late 1800s through the present.  The critical number for long-term environmental sustainability is 350 ppm of CO2.  The world surpassed that level around 1990 and now exceeds 370ppm; up 110 ppm over the past 130 years.  Electricity production accounts for 1/3 of all CO2 emissions worldwide. 

A 2011 U.S. EIA Energy Outlook Report states that electricity currently accounts for 40% of total residential delivered energy consumption in the U.S., with projections for both residential and commercial consumption expected to increase 1.2% annually from 2010 to 2035. This growth will require over 200GW of additional electrical energy generation.   With 40% of this capacity already under construction and assuming current construction costs for a gas turbine facilities are $700/kW, additional electric generation costs will approach $90B in today’s dollars or $750/U.S. household.

Electric utilities and their customers need to focus on conservation, smart grid solutions, technology, renewable energy and electric vehicles to reduce demand, costs and save the planet.  A more economical and environmental friendly solution might be investing the incremental cost of $750/U.S. household in energy management and efficiency programs.