Energy Policy: A Looming Crisis

1
Energy Policy A Looming Crisis?

• Making sense out of policy, forecasts and the
  impact of alternative energy sources

2
Problem definition

• World population is 6.4 billion and is expected
  to exceed 9 billion by 2050Source World
  Population 1950 2050, US Census Bureau
• Fossil fuel reserves are in decline
• Alternative energy sources are not expanding
  quickly enough to meet future demand.
• More than 80 of the global population live in
  developing countriesSource Tomorrows Markets,
  World Resources Institute 2002, page 12

3
Manifestations

• Oil prices have stayed above 60 per barrel since
  Katrina
• Gasoline prices hit 20 year highs in 2005 and
  remain near those levels today
• Electricity prices are at record levels
• Worldwide concern about global warming and
  climate change
• China, India and emerging economies will consume
  an increasing share of global resources

4
Implications for the future

• Utility cost impact on our businesses
• Impact on the economy
• Global competitiveness
• Business opportunities / risks
• Foreign policy
• Lifestyle

5
So what can be done?