Fueling the Conversation on Energy Policies That Promote Long-Term Global Prosperity and Security

Our world is getting more and more virtualized – but ultimately the Networked Age runs on power strips, cargo ships, and Uber trips. And over the next decade and a half, as 2.5 billion people in China, India, and other developing countries come online and join the global middle class, the global demand for energy is going to increase significantly.

To take full advantage of the opportunities for entrepreneurship and innovation that the Networked Age enables, we’ll need new sources of energy, increased energy efficiency, and considered policies to make this happen.

That’s why I’m joining the Advisory Board of Columbia University’s SIPA Center on Global Energy Policy, a research and analysis organization that provides policy-makers, business leaders, students and the public with a comprehensive and far-reaching perspective on how to achieve a shared energy future that promotes long-term global prosperity, sustainability and security. Led by Jason Bordoff, a Columbia University faculty member who has worked at McKinsey & Co., the Brookings Institution, and the White House, the Center on Global Energy Policy organizes public conversations with today’s top energy experts and trains the next generation of global energy leaders.

Already, the 21st century has seen major shifts in the energy landscape. And these shifts are having profound impacts on geopolitics, the global economy, and the environment.

Science and technology are unlocking new sources of energy that offer tremendous possibilities and also require careful stewardship. In the United States, breakthroughs in the way we tap shale natural gas have contributed to a decline in greenhouse gas emissions, and US shale oil has led to dramatic drops in gas prices. Solar costs are plummeting, and wind power competes without subsidies in many places with fossil fuels.

Battery and storage capabilities are improving so rapidly that Tesla predicts an electric car that can travel 200 miles on a single charge will cost only $25,000 in 2020. All of these technologies, coupled with policy initiatives and changing demographics, are leading to major changes. In recent years, oil consumption in OECD countries has been flat or declining.

At the same time, emerging economies in China, India, the Middle East and Latin America are seeing their energy consumption surge, presenting new challenges not only for their economies but for efforts to address global climate change. Energy poverty leaves 1.3 billion people without access to modern energy services like electricity, more than 95 percent of which live in sub-Saharan Africa or developing Asia.

And the recent oil price collapse, largely driven by a surge in supply in the U.S., shows how changes that bolster economies in one region can create instability and crises in others, like Nigeria and Venezuela, whose governments rely heavily on oil production revenues.

The changing relationship between global energy producers and consumers is recasting geopolitical relationships as well. New trade dynamics are emerging, and new alliances are being formed. The U.S. energy revolution means that OPEC countries can no longer control the global oil market in the way they did for decades. From the Russia-Ukraine conflict and the application of Western sanctions against Iran to the South China Sea and the battle against ISIS, energy is playing a central role in some of today’s most pressing geopolitical challenges.

Out of this great global narrative, important questions arise:

How do we promote geopolitical cooperation rather than conflict as new energy resources are developed in places like the Eastern Mediterranean or East Africa?

How do we ensure our supplies of energy are secure—a strategic concern made all the more urgent in the face of the recent Russia-Ukraine conflict?

How do we promote faster economic growth, not just in the US or Europe, but also in places where electrification means shops stay open longer, schools can hold night classes, and women can more easily find employment outside of the home?

How do we create the right incentives that encourage countries, companies, and individuals to consume energy more wisely?

What are the new technologies that have the potential to transform the energy industry—from transportation and power generation to storage and efficiency? And where will these technologies come from?

How do we ensure that the new energy technologies we introduce are deployed safely and responsibly, in ways that don’t impose negative externalities on the communities where they’re located?

How do we meet the world’s rapidly growing need for energy without rendering large segments of the planet uninhabitable from the potentially severe consequences of climate change?

In our increasingly connected world, effectively addressing these questions and others is going to take long-range thinking, trillions in new capital, technological breakthroughs, and smart policies. It is going to require a shared understanding of the issues and cooperation among industry, government, and civil society.

Energy is among the most highly politicized and polarizing issues of our time. Too often, easy answers and short-sighted slogans are offered in place of balanced analysis and sound insights. Untangling all the relevant issues, looking through the many interests involved, and creating policies that take all these factors into account, can seem impossible sometimes.

That’s why the discourse and analysis that the Center on Global Energy Policy facilitates is so necessary, and why I’m joining its Advisory Board. I encourage people to join the conversation. If you’d like to receive timely insights into the issues and opportunities currently shaping our energy future, sign up for the Center’s email list. You can also follow the Center on twitter @ColumbiaUEnergy