New Book: Winning the Oil Endgame

Below is the Executive Summary of the book, subtitled American Innovation for Profits, Jobs, and Security. It offers a strategy for ending US oil dependence, and is applicable worldwide.

The cornerstone of the next industrial revolution is therefore winning the Oil Endgame. And surprisingly, 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 these now “externalized” costs, it would still be profitable to displace oil completely 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). To achieve this does not require a revolution, but merely consolidating and accelerating trends already in place: the amount of oil the economy uses for each dollar of GDP produced, and the fuel efficiency of light vehicles, would need only to improve about three-fifths as quickly as they did in response to previous oil shocks.

Saving half the oil America uses, and substituting cheaper alternatives for the other half, requires four integrated steps:

Double the efficiency of using oil.

Apply creative business models and public policies to speed the profitable adoption of superefficent light vehicles, heavy trucks, and airplanes.

Provide another one-fourth of U.S. oil needs by a major domestic biofuels industry.

Use well established, highly profitable efficiency techniques to save half the projected 2025 use of natural gas, making it again abundant and affordable, then substitute part of the saved gas for oil.

Link Winning the Oil Endgame-Executive Summary