Fossil Fuel Will Continue to Power Economy

By Institute for Energy Research  Wednesday, December 23, 2009
Washington, DC – Yesterday, the Energy Information Administration (EIA) — the independent statistical analysis arm of the US Energy Department — issued its Annual Energy Outlook, an evaluation of the United States energy consumption and production for the next 25 years.
“Today’s announcement only validates the well known fact that fossil fuels will continue to power America for decades to come,” said Mary J. Hutzler, former EIA deputy administrator and a distinguished senior fellow at the Institute for Energy Research (IER).
“This forecast clearly shows the continued and increased role fossil fuels will play in powering our economy. Specifically, EIA finds that demand for liquid fuels will be up nearly 10 percent, natural gas by almost 7 percent and coal will increase by 12 percent above 2008 levels – in 2035. Fossil fuels remain dominant and necessary for economic growth and this analysis reinforces that.”
The EIA analysis — which IER has summarized HERE — also shows an increase in the use of renewable energies, namely biomass and wind power. However, it is important to note that wind energy flat-lines in 2013, which also happens to be the year that many of the generous government-mandated subsidies are eliminated to the industry — demonstrating that wind energy is not economically feasible without massive taxpayer support.
In terms of the non-carbon dioxide emitting fuels, EIA is forecasting an increase of 11 percent for nuclear energy, and 81 percent for all forms of renewable energy (hydropower, biomass, wind, solar, and geothermal). Despite these sizeable increases, carbon-free energy can only lower the fossil fuel share of consumption by 6 percentage points from its current 84 percent share.
Overall, according to EIA, energy consumption in the United States is expected to increase by 14 percent by 2035.
“While renewable energy sources are projected to nominally increase, the Administration and lawmakers on Capitol Hill must acknowledge that markets ultimately decide which energy sources are more efficient. And despite the massive taxpayer handouts for unreliable and intermittent ‘green’ energy forms, according to this analysis, fossil fuels will remain the most powerful, reliable and affordable energy forms for years to come,” concluded Hutzler.