No coherent strategy in place for energy security.

• Author: Gropman, Alan L.
• Position: INDUSTRY STUDY

The lack of a consistent, strategically integrated energy policy impairs the United States' productivity and competitive edge, concludes a study by the Industrial College of the Armed Forces.

In order to protect its interest, the ICAF study says, the nation should develop a cogent energy policy that should:

* Focus the nation on creating and encouraging energy efficiencies.

* Diversify the U.S. energy portfolio to ensure security of supply and price stability.

* Promote sustained, increased development of nuclear power, along with long-term waste disposal procedures and facilities.

* Create incentives aimed at transformative research, developing new, renewable environmentally-friendly energy sources.

* Accelerate available technologies for controlling greenhouse gas emissions that come from fossil fuels.

* Upgrade the U.S. transmission and distribution infrastructure to meet future demand.

The study notes that more than 85 percent of the nation's energy comes from fossil fuels, 60 percent of which are imported. Further, toxic emissions from burning fossil fuels are contributing to a global environmental crisis that could result in horrendous diseases, mass migrations and economic upheaval.

The five primary energy commodities are petroleum, coal, natural gas, nuclear power and renewable products. The greatest market demands for energy consumables are electrical power generation, transportation, industrial use, and residential consumption and commercial applications. The dominant suppliers for this energy are petroleum and coal, collectively providing more than 63 percent of the nation's energy while natural gas, nuclear electric power and renewables contribute only 37 percent.

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Petroleum, like the other four commodities, has its pros and cons. It is relatively cheap to transport and has a relatively high energy density. Its major drawbacks are U.S. reliance on imports from unstable regions and also petroleum's greenhouse gas emissions.

The last refinery built in the United States was in 1976. From 1981 to 2005, the total number of refineries fell from 324 to 132, while total refining capacity fell more than 20 percent. To compensate, companies have increased efficiency and capacity of existing refineries. The refinery industry produces more than 50 different fuel blends to meet unique emissions requirements.

Coal is the most abundant fossil fuel in the United States, and its price has been historically stable. It has...