Oilman and natural gas producer, T. Boone Pickens, recently released an energy plan which he believes will be the key to the future of U.S. energy. He is calling for the construction of large wind farms throughout the central U.S. The power generated by the wind farms would be shipped to cities and both coasts, eliminating the need for much of the natural gas that is currently used for electricity generation. According to Pickens, that natural gas can then be used to power a large portion of the nation’s vehicles, displacing some of today’s oil use. Pickens believes that implementation of such a plan could eliminate 38 percent of the nation’s oil use and cut roughly $300 billion from the annual amount that the country uses to purchase gasoline. The key points of his plan are:
- Imported Oil is the Problem
American reliance on foreign oil has grown from 10 percent in the 1960s to 70 percent today - amounting to $700 billion in purchases. World oil supply has peaked, leading to a potential situation where increasing demand from China and India as well as underdeveloped countries surpasses supply. Most of the money used by the U.S. to purchase oil comes from unreliable allies, some of which is used against the U.S. in the War on Terror. Reliance on foreign oil also undermines the U.S. economy.
Congress must promote private investment in the electric transmission system. In order to replace foreign oil used for transportation, the U.S. could use two options – bio-fuels and domestic natural gas. Bio-fuels are not the best option. Thus, domestic natural gas, which is the cleanest transportation fuel currently available and the U.S.’s second largest energy resource, should be transferred from electrical generation to transportation as the primary replacement for foreign oil. Natural gas is substantially cheaper than diesel or gasoline, as it is sold in some places for less than $1 per gallon. Natural gas could replace 38 percent of foreign oil within 10 years, leading to an annual savings of nearly $300 billion.
Wind power will serve as a sufficient replacement for natural gas. It is possible that the U.S. could develop 20 percent of its electricity generation from wind generated in the heartland of America. However, it is often found that the areas most suitable for wind are located far away from the places in need of electricity. Therefore, the U.S. government needs to address the areas of siting authority, federal lands, federal permitting, equitable cost allocation and recovery, equitable allocation of capacity, and financial incentives. By taking these steps, the U.S. will rely less on foreign oil, have a cleaner environment, lower the production of greenhouse gases, and revitalize the heartland.
Though the proposal has yet to spawn any specific legislative push, his overall message on oil dependence has been widely praised by lawmakers on both sides of the aisle. Pickens is having a number of meetings this week on Capitol Hill and is scheduled to meet with key lawmakers and to testify before the Senate Homeland Security Committee today (9/22).