The Future
The
supply of crude oil and its derivatives such as diesel, jet fuel, and
gasoline will not dwindle in the near future; however, they will become
progressively more expensive over the next several decades. Also,
thanks in part to industry and power generation switching to natural
gas from 1970 to 1990, there will be a tightening of conventional
natural gas in the near future.3 In spite of the proliferation of
liquid natural gas (LNG) facilities, this will not have a major impact
on the industry as a whole; instead, the selective sponsors/users of
these facilities as a primary fuel source will be the real
beneficiaries.
For instance, anyone who has performed a site
search in the Midwest has seen a high level of interest in ethanol
plants. Just how much of an impact this will have on energy prices
remains to be seen. Of particular recent interest is the prospect of
synthetic fuels produced from coal that can produce both natural gas
(SNG - synthetic natural gas) and liquid fuel. Currently, the United
States has an 800-year supply of coal at present consumption rates, and
this represents only a small fraction of the world's coal supply. There
is considerable interest by both the federal government and private
sector to invest in this technology. These investments are not small,
nor are the levels of employment and compensation associated with them.
The recruitment of one of these technology sectors would be a huge
economic development windfall for any community.
In sum, even
though the 2005 Corporate Survey indicates energy costs were not as
important as in the previous year, this should be considered in the
context of when the survey was taken. Energy costs are rising and will
continue to do so - and will become increasingly important to virtually
every business enterprise, since the costs will flow through all
aspects of manufacturing and logistics. Those communities that
recognize the "opportunities" associated with helping industry manage
these costs, while capitalizing on the product innovations that will be
a natural consequence, will be the winners. The most pressing
opportunity is through collaborations with industry, academic
institutions, and public-policy initiatives to foster energy savings
and promote product innovation. Investment in alternative fuels
manufacturing is only a small percentage of what it will be in the next
two decades.
