American evolution

April 8, 2010

Advances in technology transform U.S. energy demand and supply.

In 1876, when Alexander Graham Bell patented the telephone, America’s energy came from two main sources: wood and coal.

How times have changed.

Thanks to decades of technological innovation, the U.S. economy has grown enormously and today is powered by a diverse array of energy sources: oil, natural gas, coal, and nuclear, plus hydroelectric power and other renewable energy sources.

Changes in our energy sector will continue in the years ahead. ExxonMobil’s most recent Outlook for Energy projects that:

• The fastest-growing major fuel will be natural gas, which is projected to meet about 27 percent of U.S. demand by 2030.
• Nuclear power is expected to meet close to 13 percent of U.S. demand by 2030, up from about 9 percent in 2005.
• A number of renewables — namely wind, solar and biofuels — will grow rapidly and are projected to meet about 5 percent of U.S. demand by 2030.
• Oil will continue to be the most widely used energy source in the U.S., and fossil fuels will account for close to 80 percent of demand in 2030.

Substantial investments in these diverse energy sources will be needed to provide the U.S. with the energy it will require for economic progress into the future.

At the same time, we must also apply technologies that promote efficiency and reduce emissions, which extend our energy supplies and help protect the environment.

ExxonMobil is part of these efforts. For example, we’re supplying increasing amounts of natural gas, which when used to produce electricity can reduce carbon dioxide (CO₂) emissions by up to 60 percent in some cases. We’re researching alternatives, including algae-based biofuels and advanced hydrogen technologies to power vehicles. And, we’re developing technologies that could help lower the cost of carbon capture and storage, which could play an important role in reducing CO₂ emissions in the future.

Developing the energy technologies to support future growth is a long-term commitment. Just as it took a century for Bell's invention to evolve into the high-tech phones of today, it can take decades for new energy technologies to reach a cost low enough, and a commercial scale large enough, to make a meaningful impact.

The future is calling, but history has left us a message: By expanding access to today’s energy sources — and encouraging the evolution of tomorrow’s — we can meet our long-term energy needs in an economic and sustainable manner.