Renewable Energy: Current and Potential Issues

The United States faces energy shortages and increasing energy prices within the next few decades (Duncan 2001). Coal, petroleum, natural gas, and other mined fuels provide 75% of US electricity and 93% of other US energy needs (USBC 2001). On average, every year each American uses about 93,000 kilowatt-hours (kWh), equivalent to 8000 liters of oil, for all purposes, including transportation, heating, and cooling (USBC 2001). About 12 kWh (one liter of gasoline) costs as much as $0.50, and this cost is projected to increase significantly in the next decade (Schumer 2001). The United States, having consumed from 82% to 88% of its proved oil reserves (API 1999), now imports more than 60% of its oil at an annual cost of approximately $75 billion (USBC 2001). General production, import, and consumption trends and forecasts suggest that within 20 years the United States will be importing from 80% to 90% of its oil. The US population of more than 285 million is growing each year, and the 3.6 trillion kWh of electricity produced annually at a cost of $0.07 to $0.20 per kWh are becoming insufficient for the country's current needs. As energy becomes more scarce and more expensive, the future contribution of renewable energy sources will be vital (USBC 2001).