Energy: Current Environment

The world faces an energy crisis characterized by rapidly increasing demand at home and particularly in the developing world, volatile sources of supply, and a warming climate as a result of the burning of fossil fuels. The 110th Congress has moved energy to the top of its agenda and is working to create an energy policy that provides viable solutions to what has become not only an economic and environmental issue, but also one of national security and global welfare.

Recent legislative discussion has revealed that alternative energy sources will likely play an increasingly prominent role in our national energy policy. There is a controversial debate over the continued subsidization of oil companies despite large profits, and whether or not the funding now benefiting oil and gas should be used to get the fledgling alternatives industries off the ground. Congressional discussion on this issue will continue through the summer and into the fall as Democrats continue to work for the support necessary to get a new energy bill into law.

Congress is pushing for an energy independent America with the post 9/11 realization that reliance on Middle Eastern oil supplies is a dangerous habit. It raises issues of resource availability due to regional volatility, as well as the possibility that we are financing terror by buying oil from corrupt, undemocratic regimes. Even with the push for energy independence, fossil fuels are going to remain our mainstay energy source until technology is developed to replace them.

Increasing domestic fossil fuel production and exploration has become a frequent topic on Capitol Hill. Many Democrats want to focus our energy policy away from fossil fuels, while the other side of the aisle asserts that the costs of doing so are too high for both the economy and the consumer. The questions over who will pay the cost of curbing climate change, and who will suffer the most from its consequences, remain unanswered and controversial. Debate surrounding the new energy bills has made it clear that fossil fuels are going to need to get cleaner and more efficient in order to lower emissions. Carbon taxes, carbon sequestration, CAFE standards, emissions trading and offsets are likely to be prominent in any future energy legislation as our lawmakers work to curb emissions and promote energy independence. The general consensus on our energy policy is shifting, with the new lexicon realizing that the status quo is not sufficient for the future. Understanding and working within rapidly changing legislation will be critical for success in all sectors of the energy industry.