Energy Independence or Diversification? “The Quest” has the answer

Daniel Yergin, famous for his book on the history of oil, “The Prize”, has just released his latest book, “The Quest”, which looks at all forms of energy. It reaches the conclusion that diversification is more important than ‘energy independence’, the choice phrase of many politicians through the years.

Energy independence is a term that has been thrown around for years; the idea that a nation can produce its own energy and not having to rely on politically unstable or unreliable oil producing countries which effectively can hold a country to ransom. Yet Yergin argues, “What we need to do is diversify our energy sources just as investors diversify their portfolios to make them safer”.

For a man who is used to talking about oil, he is very keen to talk about other energy sources, “We certainly need to diversify and broaden our energy portfolio to support a much larger global economy that we may be experiencing in as little as two decades.” He goes on to talk about the promise of wind and solar, but unfortunately he also considers shale gas as being a key future component of Americas energy portfolio.

He also talks of energy efficiency and the fifth fuel, conservation. “We're twice as energy efficient today as we were in the 1970s,” he said. “I think that's a reasonable goal; why don't we become twice as energy efficient again?” Technological innovation, regulation, and making efficiency cost-effective can all contribute to a diverse strong energy portfolio.

On the drive for energy independence which seems to be so coveted by politicians he says, “You could be energy independent, but it could be extremely expensive,” he said. “We're part of a global marketplace, and what really counts is energy security.”