America has the opportunity to lead the

world in a new industrial revolution:

To ensure American competitiveness,

Decrease of dependency on foreign oil,

And mitigate climate change.

The message

1
Temperature
record
1850 – 2006.

Global average

Northern
hemisphere

Southern
hemisphere 2
 Atmospheric CO2 and the 14 C / 12 C ratio

14 C,produced through cosmic-ray bombardment, is incorporated into

plants and animals. Fossilized organic material is depleted of 14 C.
6

We are dependent on foreign oil

03
/0
N a tu ra l g a s 9/
03
B i o f u 2e %l s 20
/0
Consumption
10
3% 9/
03
20
/0
10
9/ Imports
03
200
/0
103
9//
200
0
103
9
// Production
0
2
9
0
P e tro le u m
1/
95% 2
0
0
1 In millions of barrels per day
0
Transportation fuels, 2008
 Energy densities of chemical fuels
and the best commercial battery
Mj / liter

Mj / kg
Body Fat 38 Mj/kg 35 Mj/liter
Kerosene, jet fuel 43 Mj/kg 32 Mj/liter
Lithium ion battery 0.54 Mj/kg 0.9 Mj/liter
 Huge growth in oil demand is projected
from the developing world

Change in primary oil demand 2007 – 2030

IEA: World Energy Outlook 2009

 Energy Information Administration Outlook 2010:
Biofuels meet most of the growth in U.S. liquid fuels supply

million barrels per day

25 History Projections

Biofuels including imports

20

15 Petroleum supply

10 Natural gas plant liquids

5 Net petroleum imports

0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Richard Newell, SAIS, December 14, 2009 8

Source: Annual Energy Outlook 2010
In the transportation sector, we’re investing
nearly $13 billion to promote competition and
convergence among five approaches:

• Advanced combustion engines

• Next generation biofuels
• Electric vehicles
• Natural gas
• Hydrogen and natural gas fuel cells
 Advanced Combustion
Engines
Engine improvements will help gasoline, natural
gas, biofuels, and plug-in hybrid vehicles

$5.9 billion in loans to Ford to raise

the fuel economy of 2 million new
vehicles a year by 20%

Includes the direct injection, smart

turbocharging EcoBoost engine
Building EcoBoost engines at Ford’s
reopened Cleveland plant

$186 million in R&D to raise the fuel economy of

trucks (50%) and light-duty engines (25% to 40%)
 Next generation biofuels
Clean, renewable,
domestic fuels that
can directly replace
petroleum

Over $600 million from Recovery Act will support 19

pilot, demonstration, & commercial-scale biorefineries.

Gasification offers another promising route to

advanced biofuels, from a wider range of feedstocks
 Electrifying Transportation
Long-term, game-changing
potential to reduce oil use and
greenhouse gas emissions

$2.5 billion to three of the world’s Fisker Karma

first electric car factories
$2 billion to support 30 battery and
component factories
$400 million to deploy EVs and Chevy Volt
chargers around the country

Nissan LEAF
 In September, I requested two
new studies from the National
Petroleum Council:

“Prudent Development of
North American Natural Gas
"Future Transportation Fuels” and Oil Resources“

To analyze U.S. fuels prospects To reassess the North American

through 2030 for auto, truck, air, resources supply chain and
rail, and water transport infrastructure potential, and the
role of gas in a transition to a lower
carbon fuel mix

Groundwork is underway to initiate these studies this spring

 Natural gas produces emissions, but
fewer than other fossil fuels

Average CO2 emission Average air pollutant

rates from U.S. power emissions from U.S. power
generation generation
lb CO2e/MWh
lb/MWh

EPA 14
Natural gas is a key enabler of renewable energy
The response time of natural gas electricity generation is
much faster than coal or nuclear power.

81 %
drop in 5
minutes

Output from an 8MW solar PV BPA total wind generation

panel in Colorado on 9/4/08 23 Feb 2010 to 1 Mar 2010

15
Natural gas can be used in compressed air energy storage.

16
 DOE investments have led to massive increases
in recoverable coalbed methane and shale gas

Could methane hydrates be next?

DOE investing $64 million in early-stage research
Production ( BCF per Year)

CBM program ended in 1982 Shale gas program ended in 1992

Total funding: $30 million Total funding: $137 million

17
Source: EIA
•The cost of oil and other forms of energy will
rise in the coming decades.
•The risks of climate change are becoming
increasingly apparent. We will live in a carbon
constrained world.

•China, EU countries and others see the

economic opportunity and are moving
aggressively.
Today announcing $154 Million for NRG Energy

Part of DOE’s Clean Coal Power Initiative (CCPI)

Goal is to accelerate advanced coal technologies for
commercial deployment

6-year project in
Thompsons, Texas
will support 550 jobs

Will also help

enhance oil
recovery
 The most important policy that will stimulate
innovation is a declining cap on carbon emissions
A long term signal that there will be a price on
carbon is neededU.S. Emissions
Business
before businessReductions
as usual
community Under
will
Mi Waxman
make substantial-Markey (H.R. 2454)
investments.
lli 9000
on
m 8000 Business As Usual
et
ric 7000 Comprehensive
to energy bill
6000
2e

ns
of
C 5000
O2 Waxman
-Markey C
4000
e
3000

2000
O m
trcsC
n M
ilo
e

1000
20
0
America still has the opportunity to lead the
world in a new industrial revolution and secure
our future prosperity, but time is running out.

The train is leaving the station.

21
22
Martin Luther King (1967) :

“….We are now faced with the fact, my friends,

that tomorrow is today. We are confronted with the
fierce urgency of now. In this unfolding
conundrum of life and history, there is such a thing
as being too late.”

23
 Earthrise from Apollo 8 (December 24, 1968)

"We came all this way to explore the moon

and the most important thing is that we
discovered the Earth.“
Bill Anders, Apollo 8 Astronaut 24
 President Obama announced a new U.S. automobile
and light truck fuel standard -- 35.5 mpg by 2016

U.S . F ue l E c o no m y S ta nda rds Projected to

reduce oil
35 consumption by
approximately 1.8
30 billion barrels over
Miles per gallon

the lifetime of
25
vehicles sold in
next five years
20

15
Ca r s
78
81

87
90
93
96
99

05

11
14
84

02

08
19
19

19
19
19
19
19

20
19

20
20
20

20 Tr u c ks
Ye ar
Ne w c o mb in e d s ta n d a r d
 Energy Information Administration Outlook 2010:
Oil prices are projected to rise steadily

2008 dollars per barrel

History Projections
225
High oil price
200
175
150
AEO2009 reference
125
100
AEO2010 reference
75
50
25 Low oil price

0
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Source: Annual Energy Outlook 2010