An energy policy for
the new administration
Throughout last year's election campaign, energy
supply diversity. Thus, sanctions policies are also
was one of the more controversial public policy
ripe for revision.
issues. Now a new administration will have to move
Maintaining strategic stocks for severe supbeyond pronouncements toward concrete, long
ply disruption risks is wise, but using these stocks
–term policy steps.
to manipulate prices during temporary market
Above all, policies should encourage
surges can discourage private sector actions and
more efficient use of energy as this will benefit
be counterproductive.
both the environment and national security.
Second, in pursuing environmental imEven with conservation, as our economy
provement, the guide should be a science –based,
grows energy use will grow.
cost–benefit
approach.
U.S. net petroleum imports growing
Fossil fuels will supply over 80
Common sense should be
(Millions of barrels per day)
percent of U.S. energy
used when pursuing ambi14
needs. While new technolotious goals, including reason12
gies such as hybrid and fuel
able standards and time
10
cell cars may ultimately gain a
frames for new technology
8
market, they will still require
introduction. Regarding cli6
hydrocarbon fuels. Alternative
mate change policy, the un4
energy sources such as solar
realistic and economically
2
0
or wind will not become sigdamaging Kyoto process
1975
1985
2000
2010 est.
nificant until well after 2020.
needs to be rethought.
Source: U.S. Department of Energy
Fossil fuel sources will be
Third, private compaadequate to meet demand but will increasingly be
nies will be central for energy development and
imported.
progress. Private companies have successfully
Against this background, here’s what we
developed energy to fuel economic growth, and
would put forward for consideration and discuswill need market–based approaches and operasion.
tional flexibility to adapt to the future energy enviFirst, the most serious issue for the U.S. and
ronment. General tax and trade policies should
other nations is vulnerability due to dependence
therefore support, but not subsidize, the private
upon a limited number of energy–supplying counsector role in technology, resource development
tries. This vulnerability can be mitigated by policies
and trade.
designed to increase the amount and diversity of
Fourth, technical innovation will be vital to
world energy supplies, including those in the U.S.
finding energy supplies, lowering costs, addressing
Restrictions on access to promising reenvironmental concerns, and developing future
sources in the U.S. are especially self–defeating
energy systems. The government should support
and should be reconsidered. Claims that resource
technological change but avoid temptations to
exploration and development will irreparably harm
subsidize or to pick winners. Technological prothe environment— offshore or in Alaska— simply
gress can endure only when subjected to condo not reflect current industry practice or technolsumer preferences and market tests.
ogy.
A sound energy policy is not beyond reach if
Equally, unilateral economic sanctions are
approached without partisanship. We encourage
rarely effective but do discourage development of
the necessary dialogue and stand ready to particinon–U.S. energy supplies that would add to global
pate.

TM

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© 2001 Exxon Mobil Corporation