Energy

A interview conducted by The Fletcher School Forum with Ambassador Nicholas Burns, Former Under Secretary of State for Political Affairs.

For decades, fears of energy scarcity drove American energy diplomacy. The dependence of the global economy on oil, and America’s need to secure ever-growing quantities of this commodity, underpinned complex networks of alliances and intensive diplomatic endeavors. An atmosphere of ever-increasing global competition for resources made these labors all the more urgent and highstakes. Today, in an age of energy abundance, many anticipate that the new US energy prowess will render such efforts obsolete and pave the way for US disengagement in the world. Yet a sober look at reality suggests that this should be far from the case.

The world's energy system needs rebuilding. The Paris agreement to keep global warming “well below 2 °C above pre-industrial levels” demands that we replace fossil fuels with solar, wind, geothermal and biomass energy. The price tag is vast: investing US$120 trillion in energy projects between 2016 and 2050, at twice the current annual rate of $1.8 trillion a year, will deliver a 66% chance of achieving the Paris target. We must halve oil production and stop using coal to produce electricity.

Decision-makers often seek to design policies that support sustainable development. Prospective evaluations of how effectively such policies are likely to meet sustainability goals have nonetheless remained relatively challenging. Evaluating policies against sustainability goals can be facilitated through the inclusive wealth framework, which characterizes development in terms of the value to society of its underlying capital assets, and defines development to be potentially sustainable if that value does not decline over time.

Many energy consumers, and even analysts and policymakers, confront and frame energy and climate risks in a moral vacuum, rarely incorporating broader social justice concerns. Here, to remedy this gap, we investigate how concepts from justice and ethics can inform energy decision-making by reframing five energy problems — nuclear waste, involuntary resettlement, energy pollution, energy poverty and climate change — as pressing justice concerns.

Professor Meghan O'Sullivan was interviewed on November 15th, 2015 for a Wall Street Journal special section on energy, discussing the rapid transformation of the American energy sector in light of low fuel prices, new climate policies and other factors.

"An ambitious reinvigoration of the grand bargain that was struck 40 years ago in the NPT is needed to usher in a new era of cooperation on preventing proliferation. The renewed grand bargain will need to combine steps that can be taken immediately alongside a vision for the longer term. It will also need to draw in states that are not parties to the NPT. Rather than rushing toward confrontation, with all its risks, all sides must put historic antipathies aside and find face-saving solutions. To give the Iranian advocates of compromise a chance to succeed, the United States and the other major powers need to put offers on the table that will show the people of Iran that nuclear restraint and compliance will put their nation on a path toward peace and prosperity."

Energy is important, but energy independence is a dangerous myth. The U.S. National Petroleum Council recently observed: "There can be no U.S. energy security without global energy security." Oil flows in a world market and events anywhere affect the price of oil everywhere. There is no escaping these oil price shocks. Even if the United States were to substantially reduce its own oil consumption, there would be no immunity from the effects of high world oil prices that would determine domestic energy prices and ripple through the world economy. Geology and politics make the world deeply interdependent and policy should be crafted to promote and secure energy interdependence. Real energy security comes from robust energy systems with diversity and flexibility, not through isolation and energy autarky.