Commodity Management BlogInnovative Ideas and Thought Leadership for Volatile Commodity Marketplace
I recently read a speech titled, “There Is More Than One Inconvenient Truth” by Thomas F. Farrell II, the Chairman, President and CEO of Dominion. I highly recommend everyone take a few minutes to at least scan the script – click here to read the speech.
Mr. Farrell makes the point that we need a rational energy policy (which we don’t have) and will never get there unless we can move past slogans such as ‘Fossil fuels, bad; renewable energy, good’ and have an intelligent debate on the subject.
All industry forecasts show a rapid growth in the overall energy requirements around the world over the next 20 years. In order to meet the increase in energy needed, there will be growth in the use of fossil fuels – the usage of fossil fuels is not going away, it is actually growing (although at a slower rate). Fossil fuels in 2030 will still represent roughly 80% of the fuel mix. Although renewable fuels will grow at a faster pace, they will still only represent around 20% of the mix. It’s hard to argue against a clear-headed debate.
In Mr. Farrell’s words, “I believe that we will never do more than react to circumstances – piecemeal, incrementally and often inconsistently – unless we establish a realistic, factual basis for discussing our choices.”
“If we have the courage to move from the realm of generalized mythology to the specifics of 21st century reality, we might just succeed in shaping an energy future that is to our liking – instead of letting it shape us…The first step is unpacking the conversation and changing how we speak about energy.”
As I said, the speech is worth the read.