When looking at America’s long-term energy security picture, there are several critical issues that present national security challenges. Growing global demand puts price pressure on energy resources; security disruptions threaten energy supplies; price volatility saps the U.S. economy; and fossil fuels exacerbate climate change. It is a national security imperative that the United States invests in long-term R&D to develop new energy technologies. Unfortunately, current R&D funding levels are woefully inadequate – and at a time when infrastructure is crumbling around the country. The slides below outline the critical energy challenges facing America over the next several decades. With the urgent need to invest in R&D, upgrade infrastructure, and replace existing power plants that are set to retire, there is an enormous opportunity for American leadership. If America makes a national commitment to develop energy technologies to power the economy for the next-century, we can ensure stable and affordable supplies of energy, reduce greenhouse gases, and enhance U.S. energy security.

1. THE PROBLEM:
Energy, Security and American
Leadership

2. The
Challenges
• Growing
Global
Demand
for
Energy
• Security
of
Energy
Supplies
• Economic
Stability
• Environmental
Sustainability
• Aging
Infrastructure
• Declining
American
R&D
for
the
Future

3. Challenge:
Growing
Global
Energy
Demand
EIA
ProjecEons:2011-­‐2035
• 91%
growth
in
Asia
(ex.
Japan)
• 62%
growth
in
the
Middle
East
• 65%
growth
in
Africa
• 69%
growth
in
Central
and
South
America
• 9%
increase
in
US

4. Challenge:
Security
of
Energy
Supplies
• Energy
Dependence
Creates
Military
Missions
• Oil
Dependence
Undermines
American
Foreign
Policy

5. Challenge:
Economic
Instability
U.S.
Natural
Gas
Wellhead
Prices
Oil
Price
($WTI)
(Henry
Hub)
January
2007-­‐Present
12
160
140
10
120
$
per
thousand
cubic
feet
8
100
$
per
barrel
6
80
60
4
40
2
20
0
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2007 2007 2008 2008 2009 2009 2010 2011 2011 2012 2012

6. Challenge:
Environmental
Sustainability
• 82%
of
the
US
energy
supply
is
fossil
fuels,
which
produce
greenhouse
gases
• A
changing
climate
is
creaEng
new
missions
for
an
already
overstretched
military.

7. Challenge:
Declining
American
R&D
• Investment
in
basic
research
and
development
is
about
2.6%
of
GDP
–
significantly
less
than
the
3%
that
we
held
as
a
standard
through
the
1960s
• PrioriEes?
– The
U.S.
spends
more
annually
on
a
tax
break
for
employee
parking
($3.1
billion)
than
the
Department
of
Energy
spent
on
applied
R&D
($2.27
billion)?

8. THE
OPPOTUNITY:
for American Leadership and
Security

9. Aging
Energy
Infrastructure

10. New
Energy
Infrastructure
needed
to
meet
rising
demand

11. Electricity-­‐GeneraEng
Power
Plants
in
the
U.S.
• Over
500
Coal-­‐fired
Electricity
Plants
• 104
Nuclear
Reactors
• Over
1,500
Natural
Gas
Electricity
Generators
All
of
these
will
have
to
be
replaced
or
substan5ally
refi8ed
before
2050
• What
will
replace
them?

12. The
Challenges
“by
the
year
1980,
the
United
States
will
not
be
dependent
on
any
other
country
for
the
energy
we
need
to
provide
our
jobs,
to
heat
our
homes,
and
to
keep
our
transportaEon
moving.”
–
President
Richard
Nixon,
1974