A Conversation on Energy Comes to Lansing
Local residents gather at a town hall meeting to discuss America’s energy future
Approximately 215 residents from central Michigan gathered in Lansing on Wednesday, Oct. 3, 2007, to discuss the state’s and nation’s energy future. The Conversation on Energy town hall meeting, the 27th stop for ConocoPhillips on a nationwide listening tour, provided an opportunity for guests to share views on energy issues and gain insight and information from a panel of experts.
Jim Mulva, chairman & CEO, and Lou Burke, manager of biofuels, represented ConocoPhillips on the panel. Other panelists included Jim Bryum, president, Michigan Agri-Business Association; Stanley “Skip” Pruss, special advisor to the governor of Michigan and former deputy director, Department of Environmental Quality; and Rich Studley, executive vice president, Michigan Chamber of Commerce. The meeting was moderated by Dr. Bruce Dale, associate director of the Office of Biobased Technologies and professor in the Department of Chemical Engineering & Materials Science at Michigan State University.
Dale began the meeting by saying, “Higher gas prices from home heating and gasoline, uncertainty about gasoline supplies and the cost of energy are topics on the minds of most all Americans.” He emphasized that our country’s rapid population growth and proportionate consumption growth are straining our economic and social systems, physical infrastructure and natural resources, and that Americans have a responsibility to use our natural resources wisely.
Mulva told the audience that the country needs a comprehensive energy policy and said that energy independence is not likely to be achieved in the near future. He stressed a focus on energy security through four major factors: diversification of supply, energy efficiency, innovation and investment in research and development, and protection of the environment.
Bryum told the crowd that approximately 200 million gallons of corn-based ethanol will be produced in Michigan by 2008. “It’s an extraordinarily exciting time to talk about energy and renewable energy, and to have agriculture in that equation,” he said. Byrum said that the agriculture industry is at the forefront of ethanol, biodiesel and methane production. Together, Bryum said, many of these and other products will help deal with demand. He also emphasized that there is no silver bullet to solve the country’s energy problems.
ConocoPhillips has thousands of engineers, scientists and other researchers devoted to developing new technology for the future, Burke said. He added that the company has increased research and development spending by 50 percent to encourage ongoing technological development in alternatives and renewables. He also explained that ConocoPhillips is focused on environmental stewardship, including reducing emissions at its facilities.
Pruss underscored the need for a variety of solutions to address the nation’s energy dependency. He told the audience Michigan spends about $20 billion purchasing energy. “We buy 100 percent of our coal from out of state to power our power plants,” he explained. “We purchase 96 percent of our oil to make our transportation fuels and 75 percent of our natural gas comes from out of state. These are all dollars lost to the Michigan economy.”
Studley told attendees that the Michigan Chamber represents more than 7,000 businesses, most of whom are significant energy customers. “Our focus has been working with the governor and members of the legislature and Congress to develop both a state and national energy policy that focuses on safe, reliable and affordable energy,” he said.
Following the panelists’ opening remarks, Dale began a 75-minute question and answer session. Audience members expressed a wide range of opinions and asked questions about ethanol, solar and wind power, switchgrass and fossil fuels.
An audience member asked what the government was doing to help farmers and manufacturers minimize the cost of producing energy. Studley said the government sends businesses mixed signals about the cost and production of energy. “There are times when state government has sent a very positive message, investing in our universities, encouraging research and development,” he said. “On the other hand, costly renewable portfolio mandates that would increase the cost of electricity for industry when we’re already struggling to retain our manufacturing are very problematic.”
One attendee commented that Germany has a policy to become energy independent and asked when Michigan will focus on renewable energy and encourage young entrepreneurs and established corporations to delve into alternative renewable technologies. Pruss told the crowd, “We need to enact a renewable portfolio standard in which energy-producing companies would have to generate a set portion of their energy production from renewable sources.” He said 29 states already have such laws.
Another guest asked about the roadblocks facing relationships between academia, private sector and government in the United States. Burke said that infrastructure and business economics, not relationships, are the real key. He said the industry has 100 years of experience in transporting gas through pipelines, but there is no infrastructure in place to transport biofuels and other new fuels. “Gathering biomass and having that biomass generate enough revenue to make the farmer want to grow it is a huge challenge,” he added.
An attendee asked how citizens can help promote and advance technology. Burke encouraged the audience to carry on the dialogue and challenge their legislators. “Take the dialogue beyond gas prices,” he said. “Talk about the challenges we’re facing and possible solutions.”
One attendee commented that the price of gasoline has gone up as much as the price of a car, and there are things every person can do to reduce how much is spent by changing personal habits. She suggested turning off lights and turning up the thermostat in our homes and using mass transit instead of driving.
A member of the audience asked about ConocoPhillips’ position on climate change. Burke noted that the company is a member of the U.S. Climate Action Partnership, a business-environmental leadership group dedicated to the quick enactment of strong national legislation to require significant reductions of greenhouse gas emissions. “We want to work together to reduce our carbon footprint,” he said.
A resident wondered if ConocoPhillips is investing in solar energy. Mulva said the company spends about $15 billion a year to produce energy, but explained ConocoPhillips’ expertise is in the areas of oil and gas. He said the company is evolving to diversify its portfolio, and that the company supports solar power.
Another guest mentioned that developing countries use solar stoves and asked why U.S. residents aren’t afforded the same option. Mulva said the use of solar and other renewable energy sources has not been aggressively pursued in the United States because the cost of energy has been so affordable. He also noted that there are no transportation lines in developing countries, so alternatives have been a requirement since there is no way for them to transport gas.
A member of the audience asked why gas prices don’t go down when oil prices drop. Mulva explained that oil prices represent approximately 60 percent of the price we pay at the pump. He said that the price volatility is due to changes in supply and demand and refinery costs.
Exploring New Horizons
ConocoPhillips scientists focus on developing renewable energy technologies.
In April 2007, ConocoPhillips announced its alliance with Tyson Foods, Inc. to produce the next generation of renewable diesel fuel from beef, pork and poultry fat. The alliance will create a transportation fuel that contributes to America’s energy future, helps address climate change concerns, and helps supplement the traditional oil-based diesel fuel supply. The company also said it will establish an eight-year, $22.5 million research program at Iowa State University dedicated to developing technologies that produce biorenewable fuels.
In December 2006, the company began commercial production of renewable diesel at its Whitegate Refinery in Cork, Ireland. The production process, which was developed by ConocoPhillips, uses soybeans and other vegetable oils to produce renewable diesel fuel that meets European Union standards for diesel fuels.
ConocoPhillips employs a team of approximately 250 scientists, engineers, and researchers to explore viable alternative and renewable energy sources. These scientists are studying everything from clean-coal technology applications to liquefied natural gas initiatives.
A major area of interest is in hydrogen research, which is why ConocoPhillips is a partner in the Freedom Car & Fuel Partnership, a collaborative including the U.S. Department of Energy, automakers and energy companies. The partnership explores energy, environmental and economic attributes of various pathways to hydrogen production, as well as the merits of hydrogen-powered fuel cell vehicles.
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