No Federal Energy Policy in Sight

I just sat through a sad but realistic webinar on the effects of the midterm elections on US energy policy. No surprises.  Two key items: 

1) Generally, energy policy will not be a priority for the foreseeable future, and thus incentives and regulations that would drive forward the deployment of alternative energy sources will not happen. In 2035, fossil fuels will still represent 78% of our energy consumption, while the world demand for energy will continue to climb.  Apparently, no one will see the obvious pitfalls of our current energy policy – if only from a supply (falling) and demand (skyrocketing) perspective.  We, the electorate, will make no demands, and our elected leaders will continue to look the other way, pursuing less substantive issues to pave the way to their re-elections.

2) The GOP success in the US elections earlier this month and all the new faces that will be showing up in governors’ mansions and on Capitol Hill next January will guarantee very little action in the energy space, except for ad hoc issues, e.g., regulations surrounding deep water drilling, and EPA regulations on coal plants’ SOx, NOx, and mercury emissions. This will increase the cost of coal-generated power – and perhaps force the early retirement of some of the dirtiest facilities. 

I guess this is of relevance if you’re an investor in the coal industry. But what if you’re like me – just another guy hoping for some leadership from Washington on the most critical issue facing mankind today – a sustainable energy policy?  It looks like you’re out of luck.