The Hill News

One of the biggest challenges for Washington policymakers who are driven by yesterday’s headlines is to formulate policies that will sufficiently address problems yet unknown and accommodate opportunities few can yet envision.

Another challenge is their tendency to revert to old battle lines when debating new issues. This is especially true in energy debates where much of the rhetoric remains unchanged from the 1970s. Forty years ago the popular mantra among intellectuals and policymakers was that the United States was an energy-producing weakling with an exhausted resource base, whose insatiable appetite for energy left it addicted to imported energy. This narrative has largely remained unchanged. Yet, America is a top tier energy producer, expanding its development of fossil fuels, and using energy more and more efficiently.    

While the nation is still dependent on imports, the energy dynamics are changing. Roger Diwan, partner and head o! f financial advisory at PFC Energy, stated at a recent congressional hearing: "We believe that by 2020, the United States will become the largest producer of hydrocarbons in the world, surpassing Russia.” So, while the forecast of U.S. ascendency can be debated, that we are witnessing a rapid and dramatic shift in the energy equation is not disputable. Neither is the impacts of increased domestic production on the nation’s economy will be significant.

Read more...