This study was co-funded by the Pentagon -- a plan for reducing U.S. oil use by 50% by 2025, and ending foreign oil dependency. Amory Lovins has been pursuing energy efficiency and renewable energy since the 1970s, when he wrote the influential SOFT ENERGY PATHS. That initiative was thrown off-track by the drop in oil prices in the 1980s. Now Lovins is back in demand in the post-9/11 world with the global Hubbert's Peak for oil upon us.
This is not a radical strategy. It is market-based, and is all based on existing technology. According to Lovins and his co-authors,
"...it will cost less to displace all of the oil that the United States now uses than it will cost to buy that oil. Oil's current market price leaves out its true costs to the economy, national security, and the environment. But even without including those now "externalized" costs, it would still be profitable to displace oil competely over the next few decades. In fact, by 2025, the annual economic benefit of that displacement would be $130 billion gross (or $70 billion net of the displacement's costs)."
WINNING THE OIL ENDGAME involves 4 shifts -- 1) doubling the efficiency of using oil, through measures such as ultralight vehicle design, 2) applying creative business models and public policies to speed the profitable adoption of superefficient light vehicles, heavy trucks and airplanes, 3) embarking on the crash development of biofuels, cellulosic ethanol in particular, and 4) applying efficiency measures to save 50% of the projected 2025 use of natural gas.
Lovins goes on to elaborate necessary policies, such as feebates as incentives for consumers, government acquisition plans, federal loan guarantees, and so forth. He notes that while eminently practical and market-based, the plan will not benefit all companies. He points to the examples of Shell and BP, oil companies that are in the process of tranforming themselves into energy companies, as models for success in this energy transition. (see www.oilendgame.com for more)
I admit that I am not by nature optimistic about the human condition, but Amory Lovins is, and he always makes me feel more confident about the future. Despair and fatalism produce nothing of value, so each and every one of us should join Amory Lovins and the Pentagon and fight for an end to foreign oil dependency, and fight for renewable energy! That will certainly mean fighting the Bush/Cheney Oil Administration -- let's roll!