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Chapter 2. The Case for an Energy Technology Transition As its energy needs have grown, the United States has continuously expanded its use of hydrocarbon sources of energy. Today, the United States is almost completely dependent on coal, petroleum and natural gas to meet its energy needs and is expected to remain so into the future. For economic, geopolitical, and environmental reasons, however, hydrocarbon energy resources are becoming inadequate, more costly, and unreliable. Hydrocarbon supplies will eventually be exhausted; meanwhile, price volatility makes them costly to use. Geo-strategic factors make them unreliable and impose additional costs and constraints on the United States. Finally, the environmental consequences associated with the emissions of carbon dioxide and other greenhouse gases pose a long- term threat to the climatic and ecological stability of the earth’s natural and biological systems. Together, these issues make an energy technology transition imperative to the future prosperity and security of the United States. U.S. Energy History U.S. economic prosperity over the past century has been closely linked to the large quantities of oil, coal, and natural gas available domestically. By not constraining production capacity, the availability of energy enabled the growth of U.S. industrialization without impediment. Until recent fears of energy shortages and other consequences associated with dependence on hydrocarbons, the United States has not been concerned about the adequacy and reliability of its energy supply. Coal Coal was the first hydrocarbon widely used after the beginning of industrialization and the rapid depletion of timber resources. Heavy use of coal for energy began with the industrial revolution and the invention of the steam engine. Ultimately, it was the development of the railroads in the mid-19th century that inaugurated a period of growing production and consumption that continues today. From 1885 to 1951, coal was the leading source of energy produced in the United States, and, after crude oil and natural gas vied for the top position until 1982, it regained the spot for good in 1984.1 Its continued importance to the U.S. energy economy is explained in part by its price, which has historically been low, and its changing role in meeting energy demand. Originally, Americans used coal to heat their homes and fire factory furnaces. Today, coal power plants supply nearly half of the country’s electricity. Coal continues to be an abundant resource in the United States. In fact, the nation produces more coal than it consumes. In 2000, exports totaled 58 million short tons, approximately 37 percent of all energy sales to foreign countries. Overall, the United States produces nearly 1.15 billion short tons a year and holds more than 25 percent of the world’s coal reserves. 5PDF Image | Shaping Energy Technology Transition
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