REINVENTING ENERGY

A press release from the American Petroleum Institute:

WASHINGTON, Nov. 13 /PRNewswire/ --

A dramatic, arbitrary reduction in the use of oil -- as some environmentalists and government officials now urge -- would require Americans to make wrenching economic and personal sacrifices because oil products support the current pattern of American lifestyles and existing alternatives are either unaffordable or technologically infeasible on a wide-scale basis, according to a new book published today by the American Petroleum Institute.

"The miraculous energy panacea that some environmental activists seem to be dreaming of doesn't exist," says the book, "Reinventing Energy."

In announcing the publication of "Reinventing Energy," Charles J. DiBona, president of API, said that the new book is intended to help the average American -- as well as the serious policy maker and the thoughtful environmentalist -- make wise choices about energy and the environment. He said that individual and public policy decisions too often are made in an atmosphere of hype and hyperbole. As a result, the facts needed to make the best choices can be hard to come by.

"This book fills that gap," DiBona said. He said that "Reinventing Energy," which was written by a team of API economists and environmental analysts, could not be more timely. He said that Americans owe it to themselves to examine the facts, reveal the realities obscured by the myths and look objectively at the topic of reinventing energy.

As new technologies evolve, consumers should have the option of choosing fuel based on cost, performance and its ability to meet environmental goals, the book says. And while all fuels -- oil, natural gas, ethanol, electricity, solar, coal and other energy sources -- offer both advantages and disadvantages for many uses, oil's advantages outweigh any disadvantages at this time.

The 99-page book examines the full range of energy issues and concludes that, for the foreseeable future, the facts simply do not support the contention of activists who believe that oil use must be curtailed and that Americans should be required to use less oil for transportation, heating homes and producing goods -- regardless of economic or lifestyle consequences. Here is a summary of the book's findings:

• The world is not running out of oil. While U.S. oil production has peaked, in part due to restrictions that have prevented oil companies from exploring and producing in many promising areas, proved world reserves are higher now than ever before -- nearly a trillion barrels. That's enough to sustain current production for at least 45 years, even if not another barrel is found.
• The need for imported oil is a manageable risk. Supply disruptions of oil imports are less of a danger than in past years because the world oil resources are abundant, the U.S. has developed strategic petroleum reserves that can be tapped to stabilize the market in case of a supply disruption and oil is being found in countries outside the volatile Persian Gulf.
• Americans don't over consume energy. Facts show that Americans use energy as efficiently as other countries considering the size of the U.S., the energy-intensive industries that flourish here and the American lifestyle. U.S. economic growth depends largely on the availability of low-cost energy to transport goods over long distances and to power American industries such as paper, plastics and aluminum.
• Environmental quality has gotten better -- not worse. American cities are far more smog-free than 25 years ago, by the U.S. government's own statistics. Of the six prevalent "criteria" pollutants measured, levels of five have declined from 1970 to 1993: lead by 98 percent, particulates by 78 percent, sulfur dioxide by 30 percent, ozone by 24 percent and carbon monoxide by 24 percent, according to the EPA. Only nitrogen oxide increased -- by 14 percent. As a result of cleaner- burning fuels and cleaner-running cars, tailpipe emissions have dropped by 96 percent since the advent of pollution controls. Americans don't have to give up driving their cars in order to have a cleaner environment.
• Alternative fuels are far from perfect substitutes for oil. Reducing the amount of oil the nation uses only makes sense if we have another better source of energy to replace it. But that perfect substitute simply does not exist, at least not yet. No alternative fuel is pollution-free and some burn no cleaner than the most advanced gasoline fuel/vehicle system. They generally cost more and have performance limitations.
• The implications of fossil fuel use for the global climate are, at best, uncertain. Society needs to look for a balance between the potential environmental implications of climate change and the economical growth that fossil fuel use provides. We must weigh proposed climate change policies, which may or may not provide benefits many years from now, against society's many immediate needs.

We need additional scientific research and the adoption of low-cost, high- benefit policies, but not an immediate, forced transition from oil. "Reinventing Energy" provides historical context for today's energy debate, explaining how changes in energy use have altered the shape and structure of society. Gasoline-powered automobiles, for instance, replaced horse-drawn carts and made it possible for middle-class workers to live in the new suburbs. "People have been reinventing how society uses energy since the dawn of civilization," the book says. The reinvention continues today as energy and technology evolve to ever more sophisticated levels, providing energy users with more efficient refineries and a new generation of cleaner-burning fuels. Despite the progress made in reinventing oil and oil products that meet tough new environmental standards, some environmental activists continue to advocate government policies that force Americans to make costly and wrong energy choices, the book says. "Americans are making the right energy choices now, based on the relative merits of the fuels available in the marketplace and the state of today's technology. Our current reliance on oil makes economic, environmental and common sense."

CONTACT: Molly McCartney 713-646-6961, or Joe Lastelic 202-682-8125, both for the American Petroleum Institute

• After viewing this article, read an open letter in reply to Mr. Porter, author of the API study, from Dr. Colin. J. Campbell, Geologist.