USA ENERGY

PUBLIC AFFAIRS - American Embassy

Sylvie VACHERET

Tel: 01 43 12 29 28

E Mail: vacheretsr@state.gov

U.S. ENERGY ONLINE

A SELECTION OF DOCUMENTS RECENTLY PUBLISHED ON THE WEB

N^o 2 – September/October 2007

ENERGY POLICY

Cutler J. Cleveland and Robert K. Kaufmann

The Bush Energy Policy

Center for Energy and Environmental Studies - Boston University – 14 pages

http://www.bu.edu/cees/research/workingp/pdfs/Bush_Policy0102.pdf

“Like his four predecessors, President Bush has identified dependence on imported oil as an urgent energy, economic, and national security concern. To close the 'oil supply gap' the President promotes the development of domestic resources of oil and natural gas. Will this policy succeed? This project assesses the economic, energy security and environmental issues surrounding the Bush Energy plan.”

Gregory J. Lengyel

Department of Defense Energy Strategy

The Brookings Institution - Paper - August 2007

http://www.brookings.edu/views/papers/lengyel20070815.htm

“The United States has a National Security problem, energy security, in which the Department of Defense has a unique interest. The United States imports 26% of its total energy supply and 56% of the oil it consumes. The DOD is the largest single consumer of energy in the United States and energy is the key enabler of US military combat power. Huge energy consumption, increased competition for limited energy supplies, ever increasing energy costs, and no comprehensive Energy Strategy or oversight of energy issues in the DOD have created vulnerabilities.”

Federal Electricity Subsidies: Information on Research Funding, Tax Expenditures, and Other Activities That Support Electricity Production

US Government Accountability Office – October 26, 2007 – 67 pages

http://www.gao.gov/cgi-bin/getrpt?GAO-08-102

“Because of electricity’s importance to producers, consumers, and businesses, the federal government has undertaken a wide range of programs to develop the electricity sector, which includes fuel suppliers, electric utilities, and others in the electricity industry. These programs have sought to, among other things, develop the nation’s electrical infrastructure, influence the types of fuels used to produce electricity, increase the use of renewable energy, and limit the harmful effects of electricity production.”

Reaping the Rewards: How State Renewable Electricity Standards Are Cutting Pollution, Saving Money, Creating Jobs And Fueling A Clean Energy Boom

Federation of States PIRGs – September 17, 2007 – 64 pages

http://www.uspirg.org/uploads/n9/pG/n9pGh-1aBbt5IAFiNOvCQQ/Reaping-the-Rewards-USPIRG.pdf

“America now generates twice as much electricity from the wind and the sun as it did just four years ago. RES policies have been among the most important factors in encouraging the development of renewable energy. This report documents the benefits that have already been achieved by states that have adopted renewable electricity standards.”

Energy Efficiency: Opportunities Exist for Federal Agencies to Better Inform Household Consumers.

Committee on Energy and Natural Resources, U.S. Senate – Report to the Chairman - September 26, 2007

http://www.gao.gov/cgi-bin/getrpt?GAO-07-1162

“Overall, opportunities exist for the EnergyGuide program to improve how it provides information that could help consumers improve their households’ energy efficiency and decrease energy consumption nationally.”

Commodity Futures Trading Commission: Trends in Energy Derivatives Markets Raise Questions about CFTC's Oversight

United States Government Accountability Office - Testimony Before the Subcommittee on General Farm Commodities and Risk Management - Committee on Agriculture - House of Representatives - October 24 – 25 pages

http://www.gao.gov/cgi-bin/getrpt?GAO-08-174T

“Energy prices for crude oil, heating oil, unleaded gasoline, and natural gas have risen substantially since 2002, generating questions about the role derivatives markets have played and the scope of the Commodity Futures Trading Commission’s (CFTC) authority. This testimony focuses on (1) trends and patterns in the futures and physical energy markets and their effects on energy prices, (2) the scope of CFTC’s regulatory authority, and (3) the effectiveness of CFTC’s monitoring and detection of abuses in energy markets.”

Energy Market and Economic Impacts Of S.280, the Climate Stewardship and Innovation Act of 2007

Energy Information Administration, U.S. Department of Energy - July 2007 – 92 pages

http://www.eia.doe.gov/oiaf/servicerpt/csia/pdf/sroiaf(2007)04.pdf

“This report provides estimates of the economic impact of Senate Bill S.280, the Climate Stewardship and Innovation Act of 2007. This bill would establish a series of caps on greenhouse gases starting in 2012 and continuing to 2050. The report provides estimates of the effects on energy markets and the economy through 2030.”

TAXES

Kevin A. Hassett and Gilbert E. Metcalf

An Energy Tax Policy for the Twenty-First Century

American Enterprise Institute Online - August 9, 2007 – 5 pages

http://www.aei.org/publications/filter.all,pubID.26625/pub_detail.asp

“The United States' energy tax policy is rooted in a twentieth-century objective to encourage the development of the domestic energy sector. With the new geopolitical realities of the twenty-first century, it is an opportune time to revisit our policies.”

Eric Toder

Eliminating Tax Expenditures with Adverse Environmental Effects

WRI and Brookings - Policy brief - June 2007 - 12 pages

http://pdf.wri.org/Brookings-WRI_TaxExpenditures.pdf

“This policy brief examines four tax expenditures listed by the Joint Committee on Taxation—each with an annual revenue loss of over $1 billion—that increase consumption of fossil fuels. The first three—expensing of exploration and development costs, percentage depletion, and the alternative fuel production credit—encourage domestic production of fossil fuels. The fourth—exemption of qualified parking expenses—encourages commuting by automobile.”

Gilbert E. Metcalf

A Green Employment Tax Swap: Using a Carbon Tax to Finance Payroll Tax Relief

The Brookings Institution and World Resource Institute – Policy Brief – June 2007 - 8 pages

http://pdf.wri.org/Brookings-WRI_GreenTaxSwap.pdf

“A carbon tax is another way to limit emissions. This policy brief describes how a carbon tax could be implemented and presents an analysis of a Green Employment Tax Swap (GETS). Under this proposal, a national tax on carbon emissions is paired with a reduction in the payroll tax. In particular, the brief assesses the impact of a tax of $15 per metric ton of carbon dioxide (CO2), which is used to rebate the federal payroll tax on the first $3,660 of earnings per worker. This reform is both revenue-neutral and distributionally neutral.”

BILATERAL AND INTERNATIONAL RELATIONS

Frank Verrastro and Sarah Ladislaw

Providing Energy Security in an Interdependent World

The Washington Quarterly – Autumn 2007 – 10 pages

http://www.twq.com/07autumn/docs/07autumn_verrastro.pdf

“Concern over the continued ability to secure energy supplies from an in­creasing list of inaccessible, high-risk, or less than reliable parts of the world has prompted policymakers to once again raise the issues of the desirability and achievability of energy independence. Yet, focusing on energy indepen­dence, although politically attractive, is a misguided quest that can actually distract from the more important objective of managing the transition to a more sustainable and secure energy future.”

Zha Daojiong and Hu Weixing

Promoting Energy Partnership in Beijing and Washington

The Washington Quarterly – Autumn 2007 – 11 pages

http://www.twq.com/07autumn/docs/07autumn_zha-hu.pdf

“In an age of global interdependence, Beijing and Washington should seek to ameliorate differences on tense energy issues. Although dialogues on energy security conceptualizations and policy preferences are positive, they must move beyond talking toward a true partnership that can confront the common challenges they face as importers.”

Mark P. Sullivan, Clare M. Ribando, and Nelson Olhero

Latin America: Energy Supply, Political Developments, and U.S. Policy Approaches.

Congressional Research Service (CRS), Library of Congress - Updated May 8, 2007 – 23 pages

http://ncseonline.org/NLE/CRSreports/07Jun/RL33693.pdf

“Canada, Mexico, and Venezuela supply the U.S. with almost 50% of its imported oil and petroleum products. The oil reserves in the Western Hemisphere are approximately 24% of worldwide reserves. The U.S. has the largest proven reserves of natural gas in the hemisphere—approximately 37%. However, most Latin American and Caribbean countries are net energy importers. This report examines the current political environment in Latin America and its effect on energy production in the region. The report also discusses efforts to help Latin American and Caribbean countries that are dependent on energy imports. Lastly, it examines proposed policies for increased hemispheric energy cooperation and security.”

Zeyno Baran

EU Energy Security: Time to End Russian Leverage

The Washington Quarterly – Autumn 2007 – 14 pages

http://www.twq.com/07autumn/docs/07autumn_baran.pdf

“Questions regarding the security and sustainability of energy supply have mostly been left to individual EU member states and to the invisible hand of the market. Many European leaders preferred not to discuss the geopoli­tics of energy, instead delegating this portfolio to their economic ministries. Russia, the European Union’s primary oil and gas provider, has deliberately taken ad­vantage of this lack of cohesion to gain favorable energy deals and heighten European dependence on Russian supplies. Moscow is pursuing a divide and conquer strategy of amassing bilateral deals with member states..”

Erica S. Downs

The Fact and Fiction of Sino-African Energy Relations

The Brookings Institution - China Security - Summer 2007 – 27 pages

http://www3.brookings.edu/views/articles/fellows/downs20070913.pdf

“The expanding footprint in Africa of China's national oil companies (NOCs) lies at the heart of concerns of many policy-makers and pundits in the United States and Europe. China's deepening engagement with Africa is viewed as an erosion of their own interests and influence on the continent…This article examines a number of widely accepted "facts" about the growing involvement of China's NOCs in Africa. While some of these have some validity, others simply do not. Contrary to public opinion, China's NOCs are not "locking up" the lion's share of African oil as part of a centralized quest for energy.”

NEW TECHNOLOGIES

Fred Sissine

Renewable Energy: Background and Issues for the 110th Congress

Congressional Research Service (CRS) - September 6, 2007 - 37 pages

http://fpc.state.gov/documents/organization/92953.pdf

“Renewable energy can be used to produce liquid fuels and electricity. A variety of funding, tax incentives, and regulatory policies have been enacted to support renewables as a means for addressing concerns about energy security, air pollution, international competitiveness, and climate change. This report reviews the background for renewables and describes the current congressional debate.”

Brent D. Yacobucci

Biofuels Provisions in H.R. 3221 and H.R. 6: A Side-by-Side Comparison

Congressional Research Service (CRS) - August 21, 2007 - 35 pages

http://fpc.state.gov/documents/organization/92963.pdf

“With recent high energy prices, concerns over energy security, and the desire to reduce air pollutant and greenhouse gas emissions, there is ongoing congressional interest in promoting greater use of alternatives to petroleum fuels. Biofuels — transportation fuels produced from plants and other organic materials — have attracted particular interest. Ethanol and biodiesel, the two most widely used biofuels, receive significant federal support in the form of tax incentives, loan and grant programs, and regulatory programs.”

National Geothermal Initiative

Senate Energy Committee - Hearing - September 26, 2007

http://energy.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=1656

“The purpose of the hearing is to receive testimony on S. 1543, a bill to establish a national geothermal initiative to encourage increased production of energy from geothermal resources by creating a program of geothermal research, development, demonstration and commercial application to support the achievement of a national geothermal energy goal.”

Witnesses: President of Icelqnd Ólafur Ragnar Grímsson, Alexander Karsner, U.S. Department of Energy, Dr. Mark Myers, Director, USGS, Susan Petty, AltaRock Energy; Dr. Lisa Shevenell, University of Nevada; Dr. David R. Wunsch, New Hampshire Geological Survey; Dr. Kenneth H. Williamson, Geothermal Consultant

GAS AND OIL

Josef Braml

Can the United States Shed Its Oil Addiction?

The Washington Quarterly – Autumn 2007 – 14 pages

http://www.twq.com/07autumn/docs/07autumn_braml.pdf

“Since the 1950s, U.S. energy consumption, mainly driven by the transportation sector and fed by oil, has almost tripled. Because the cultiva­tion of domestic resources has not been able to keep up with demand, the United States has become increasingly dependent on energy supplies from un­stable regions of the world. The costs and risks to national security provide the first major incentive for a readjustment of U.S. energy policy. U.S. dependency on foreign energy creates immense economic challenges and vulnerabilities as well.”

Facing the Hard Truths about Energy: A Comprehensive View To 2030 Of Global Oil And Natural Gas: Draft Report

NPC Global Oil and Gas Study - National Petroleum Council (NPC) - July 18, 2007 – 422 pages

http://www.npc.org/Facing_Hard_Truths-71807.pdf

“This study found that global energy demand is projected to grow by 50-60 percent by 2030. At the same time, there are risks to the supply of reliable, affordable energy. The risks, as outlined in this report, are political, infrastructure requirements, and lack of a trained workforce. The report concludes with strategies to meet these challenges.”

Joseph G. Haubrich and Brent Meyer

Peak Oil

The Federal Reserve Bank of Cleveland – Economic Commentary – August 15, 2007 – 4 pages

http://www.clevelandfed.org/research/Commentary/2007/0815.pdf

“When will the world’s production of oil peak, and what will the economic consequences be?
Calculating when turns out not to be so straightforward as it seems, but predicting the likely
economic consequences is—and they’re not as bleak as many fear.”

Toni Johnson

Non-OPEC Oil Production

Council on Foreign Relations – October 19, 2007

http://www.cfr.org/publication/14554/

“Oil producers operating outside the Organization of Petroleum Exporting Countries (OPEC) are responsible for producing 60 percent of the world’s oil and face increasing production hurdles. Experts say many of the non-OPEC producers have older, less productive wells, rising costs for new projects, and in some cases rising demand at home that may cut into exports.”

Federal Trade Commission Report On Spring/Summer 2006 Nationwide Gasoline Price Increases

Federal Trade Commission – August 2007 - 27 pages

http://www.ftc.gov/reports/gasprices06/P040101Gas06increase.pdf

“In response to the President’s April 2006 directive, staff of the Commission conducted an economic analysis and investigation of the national average gasoline price increases that began during the spring of 2006 and continued through the summer. Using this information, staff identified six factors that appear to explain the national average price increases that occurred during the spring and summer of 2006, and then quantified the price impact of each of those six factors.”

NUCLEAR AND FUSION ENERGY

Jack Spencer

The Nuclear Renaissance: Ten Principles to Guide U.S. Policy

The Heritage Foundation – WebMemo #1640 – September 26, 2007 – 4 pages

http://www.heritage.org/Research/EnergyandEnvironment/upload/wm_1640.pdf

“Nuclear power has many advantages over other power sources, but a global expansion of peaceful nuclear technology could present risks if not managed properly. To reap the benefits of nuclear power, while minimizing the risks, the United States must commit to reestablishing itself as a technology leader in commercial nuclear power, avoid unwanted foreign dependencies, modernize its approach to waste disposal, promote marketplace freedom, and modify its approach to nonproliferation. The 10 straightforward principles laid out in this paper should guide Congress and the Administration's actions.”

Mark E. Gaffigan

Nuclear Energy: NRC Has Made Progress in Implementing Its Reactor Oversight and Licensing Processes but Continues to Face Challenges

Subcommittee on Clean Air and Nuclear Safety, Committee on Environment and Public Works – U.S. Senate - October 3, 2007 – 17 pages

http://www.gao.gov/cgi-bin/getrpt?GAO-08-114T

“The Nuclear Regulatory Commission (NRC) is responsible for overseeing the nation’s 104 commercial nuclear power reactors to ensure they are operated safely. This testimony is based on GAO reports that reviewed (1) how NRC implements the ROP, (2) the results of the ROP over several years, (3) the status of NRC’s efforts to improve the ROP, (4) NRC’s efforts to prepare its workforce and manage its workload for new reactor licensing, and (5) NRC’s efforts to develop its regulatory framework and review processes for new reactor activities.”

Nuclear Energy: NRC's Workforce and Processes for New Reactor Licensing Are Generally in Place, but Uncertainties Remain as Industry Begins to Submit Applications

United States Government Accountability Office – Report to Congressional Committees – September 2007 – 41 pages

http://www.gao.gov/new.items/d071129.pdf

“Nearly three decades after the last order for a new nuclear power reactor in the United States, electric power companies plan to submit 20 applications in the next 18 months to the Nuclear Regulatory Commission (NRC) for licenses to build and operate new reactors. Since 1989, NRC has developed a new license review process that allows a power company to obtain a construction permit and an operating license through a single combined license (COL) based on one of a number of standard reactor designs. NRC expects its new process to enhance the efficiency and predictability of its reviews. GAO reviewed NRC’s readiness to evaluate these applications by examining the steps NRC has taken to (1) prepare its workforce and manage its workload and (2) develop its regulatory framework and review process for new reactor activities.”

Jack Spencer

Congress Must Implement CSC Treaty to Reinvigorate U.S. Nuclear Industry

The Heritage Foundation – Web Memo #1658 – October 9, 2007 – 2 pages

http://www.heritage.org/Research/EnergyandEnvironment/upload/wm_1658.pdf

“September 29 marked the 10-year anniversary of the United States signing the Convention on Supplementary Compensation for Nuclear Damage (CSC). The House of Representatives has failed to pass legislation to implement the treaty. As it stands, U.S. firms are exposed to unlimited liability in U.S. courts, virtually barring them from competing for nuclear energy projects abroad.

Participating in the CSC will better enable U.S. companies to engage in peaceful international nuclear commerce. Congress should quickly adopt implementing legislation that will increase American competitiveness, demonstrate American leadership, and come at no cost to taxpayers.”

Fusion Energy: Definitive Cost Estimates for U.S. Contributions to an International Experimental Reactor and Better Coordinated DOE Research Are Needed

United States Government Accountability Office – Report to Congressional Committees - October 26 – 38 pages

http://www.gao.gov/cgi-bin/getrpt?GAO-08-30

“The United States is pursuing two paths to fusion energy—magnetic and inertial. On November 21, 2006, the United States signed an agreement with five countries and the European Union to build and operate the International Thermonuclear Experimental Reactor (ITER) in Cadarache, France, to demonstrate the feasibility of magnetic fusion energy. The United States also built and operates facilities to pursue inertial fusion energy research. This report discusses (1) U.S. contributions to ITER and the challenges, if any, in managing this international fusion program and (2) the Department of Energy’s (DOE) management of alternative fusion research activities, including National Nuclear Security Administration (NNSA) initiatives.”

MISCELLANEOUS

Lisa Margonelli

Start-Up U

New America Foundation – California – September/October 2007

http://newamerica.net/publications/articles/2007/start_u_5890

“With global warming breathing down our necks, energy is hot. And Berkeley, where brainpower is mingling with government power-brokers to implement the state’s greenhouse gas legislation, is even hotter. Having just announced a $500 million ten-year deal with oil giant BP to found a new Energy Biosciences Institute on campus, Steven Chu, the Nobel Prize winner and head of Lawrence Berkeley National Laboratory (LBNL), made a pitch for more: “We are seeking industry partnerships ... We seek solutions. We don’t seek, dare I say, science papers anymore.””

Rajeev Dhawan and Karsten Jeske

What Determines the Output Drop after an Energy Price Increase: Household or Firm Energy Share?

Federal Reserve Bank of Atlanta - Working Paper 2007-20 – August 2007 – 12 pages

http://www.frbatlanta.org/filelegacydocs/wp0720.pdf

“During the past thirty-five years, energy use as a fraction of output has dropped significantly at both the household and the firm levels. Therefore, we investigate a dynamic stochastic generalized equilibrium model economy’s response to an energy price hike for different firm and household energy shares. Simulation results indicate that the economy’s output response is mainly determined by the firm energy share. Increasing the household energy share while keeping firm energy share constant actually decreases the output response.”

Green Energy News

http://www.green-energy-news.com/index.html

“Bruce Mulliken has been covering news and commentary on the world of clean, efficient, and renewable energy since 1996. His Green Energy News site is geared towards a broad audience that includes the general public, industry professionals, and government officials. First-time visitors will want to look at the "News Stories" on the front page which in recent editions have included pieces on the growing hydrogen economy, the potential of parking lots as a form of solar power, and the possibility of a zero emission electric vehicle with two wheels. Those looking for previous news features can browse the "Archives and Resources" area, which dates back to April 1996. Those looking for "green" events should browse over to the "Events Calendar" section, which provides links to upcoming events such as renewable energy conferences.”