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The message

America has the opportunity to lead the world in a new industrial revolution:. T o ensure American competitiveness,. D ecrease of dependency on foreign oil,. A nd mitigate climate change. The message. Temperature record 1850 – 2006. Global average. Northern hemisphere.

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The message

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  1. America has the opportunity to lead the world in a new industrial revolution: To ensure American competitiveness, Decrease of dependency on foreign oil, And mitigate climate change. The message

  2. Temperature record 1850 – 2006. Global average Northern hemisphere Southern hemisphere

  3. Atmospheric CO2 and the 14C / 12C ratio 14C, produced through cosmic-ray bombardment, is incorporated into plants and animals. Fossilized organic material is depleted of 14C.

  4. 6 We are dependent on foreign oil 25 Consumption 20 Imports 15 10 Production 5 0 In millions of barrels per day Transportation fuels, 2008

  5. Energy densities of chemical fuels and the best commercial battery Mj / liter Mj / kg Body Fat 38 Mj/kg 35 Mj/liter Kerosene, jet fuel 43 Mj/kg 32 Mj/liter Lithium ion battery 0.54 Mj/kg 0.9 Mj/liter

  6. Huge growth in oil demand is projected from the developing world Change in primary oil demand 2007 – 2030 IEA: World Energy Outlook 2009

  7. Energy Information Administration Outlook 2010:Biofuels meet most of the growth in U.S. liquid fuels supply million barrels per day History Projections Biofuels including imports Petroleum supply Natural gas plant liquids Net petroleum imports Richard Newell, SAIS, December 14, 2009 Source: Annual Energy Outlook 2010

  8. In the transportation sector, we’re investing nearly $13 billion to promote competition and convergence among five approaches: • Advanced combustion engines • Next generation biofuels • Electric vehicles • Natural gas • Hydrogen and natural gas fuel cells

  9. Advanced Combustion Engines • Engine improvements will help gasoline, natural gas, biofuels, and plug-in hybrid vehicles • $5.9 billion in loans to Ford to raise the fuel economy of 2 million new vehicles a year by 20% • Includes the direct injection, smart turbochargingEcoBoost engine Building EcoBoost engines at Ford’s reopened Cleveland plant • $186 million in R&D to raise the fuel economy of trucks (50%) and light-duty engines (25% to 40%)

  10. Next generation biofuels • Clean, renewable, domestic fuels that can directly replace petroleum • Over $600 million from Recovery Act will support 19 pilot, demonstration, & commercial-scale biorefineries. • Gasification offers another promising route to advanced biofuels, from a wider range of feedstocks

  11. Electrifying Transportation • Long-term, game-changing potential to reduce oil use and greenhouse gas emissions • $2.5 billion to three of the world’s first electric car factories • $2 billion to support 30 battery and component factories • $400 million to deploy EVs and chargers around the country Fisker Karma Chevy Volt Nissan LEAF

  12. In September, I requested two new studies from the National Petroleum Council: “Prudent Development of North American Natural Gas and Oil Resources“ To reassess the North American resources supply chain and infrastructure potential, and the role of gas in a transition to a lower carbon fuel mix "Future Transportation Fuels” To analyze U.S. fuels prospects through 2030 for auto, truck, air, rail, and water transport Groundwork is underway to initiate these studies this spring

  13. Natural gas produces emissions, but fewer than other fossil fuels Average CO2 emission rates from U.S. power generation Average air pollutant emissions from U.S. power generation lb CO2e/MWh lb/MWh 14 EPA

  14. Natural gas is a key enabler of renewable energy The response time of natural gas electricity generation is much faster than coal or nuclear power. 81 % drop in 5 minutes BPA total wind generation 23 Feb 2010 to 1 Mar 2010 Output from an 8MW solar PV panel in Colorado on 9/4/08

  15. Natural gas can be used in compressed air energy storage.

  16. DOE investments have led to massive increases in recoverable coalbed methane and shale gas Could methane hydrates be next? DOE investing $64 million in early-stage research Production ( BCF per Year) CBM program ended in 1982Total funding: $30 million Shale gas program ended in 1992Total funding: $137 million Source: EIA

  17. The cost of oil and other forms of energy will rise in the coming decades. • The risks of climate change are becoming increasingly apparent. We will live in a carbon constrained world. • China, EU countries and others see the economic opportunity and are moving aggressively.

  18. Today announcing $154 Million for NRG Energy • 6-year project in Thompsons, Texas willsupport 550 jobs Part of DOE’s Clean Coal Power Initiative (CCPI) Goal is to accelerate advanced coal technologies for commercial deployment Will also help enhanceoil recovery

  19. The most important policy that will stimulate innovation is a declining cap on carbon emissions A long term signal that there will be a price on carbon is needed before business community will make substantial investments. Business as usual Million metric tons of CO2e Comprehensive energy bill

  20. The train is leaving the station. America still has the opportunity to lead the world in a new industrial revolution and secure our future prosperity, but time is running out.

  21. Martin Luther King (1967) : “….We are now faced with the fact, my friends, that tomorrow is today. We are confronted with the fierce urgency of now. In this unfolding conundrum of life and history, there is such a thing as being too late.”

  22. Earthrise from Apollo 8 (December 24, 1968) "We came all this way to explore the moon and the most important thing is that we discovered the Earth.“ Bill Anders, Apollo 8 Astronaut

  23. President Obama announced a new U.S. automobile and light truck fuel standard -- 35.5 mpg by 2016 Projected to reduce oil consumption by approximately 1.8 billion barrels over the lifetime of vehicles sold in next five years

  24. Energy Information Administration Outlook 2010:Oil prices are projected to rise steadily 2008 dollars per barrel History Projections High oil price AEO2009 reference AEO2010 reference Low oil price Source: Annual Energy Outlook 2010

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