Letter to the President, the Congress and the American People

[Guest guest]

In offering these recommendations for reducing American oil

dependence, the members of the Energy Security Leadership Council

have one central goal: the enactment of public policies to

significantly improve the nation's energy security.

 

For more than two decades, federal energy policy has been afflicted

by paralysis. Although much energy legislation has been passed into

law during this period, America's energy security has grown worse

with each passing year. This deteriorating condition has created

enormous economic and national security vulnerabilities.

 

Chief among the nation's formidable energy challenges is its

dependence on oil, which fuels 97% of U.S. transportation needs.

Since there are few readily available substitutes for oil, even a

relatively minor disruption of the global oil supply has the

potential to cause economic dislocation for tens of millions of

Americans.

 

In an age characterized by instability throughout much of the oil-

producing world, a supply crisis cannot be reasonably dismissed as a

low-probability event. On the contrary, hostile state actors and

terrorist organizations clearly intend to use oil as a potent

strategic weapon to attack the United States. The threat is made

ever more serious by rapidly rising global consumption.

 

Even in the absence of an outright supply crisis, oil dependence

constrains American foreign policy by strengthening the nation's

adversaries and placing enormous burdens on the U.S. military. While

difficult to quantify with precision, these constraints and burdens

unquestionably render the pursuit of U.S. national interests far

more difficult and costly.

 

America must address this critical weakness. Continued government

inaction presents inexcusable risks.

 

Improving America's energy security requires a meaningful reduction

in the oil intensity of our economy and prudent expansion of secure

oil supplies. By improving the fuel efficiency of the transportation

fleet, increasing the availability of alternative fuel sources, and

making responsible oil exploration and production more feasible,

government policy can place the country in a far better position to

endure the next supply crisis.

 

In truth, we have already proven that we can dramatically reduce oil

intensity. The amount of oil needed to generate a dollar of GDP has

essentially been cut in half since 1975. The result is a U.S.

economy that still sees steady growth despite high oil prices such

as those experienced over the last few years. Unfortunately,

progress toward reduced oil intensity has slowed noticeably in the

last decade. We must do better.

 

Political forces have often portrayed increased supply and decreased

demand as mutually exclusive ambitions. In fact, both goals are

indispensable components of any comprehensive policy for obtaining

genuine energy security.

 

The policies we advocate will require many years to implement before

benefits are evident. Strong and 05 consistent leadership will be

needed—not only to avoid panic during periods of high oil prices,

but also to prevent complacency when costs to consumers temporarily

recede.

 

In bringing together representatives of the business community and

retired senior military officers, the Council intends to break the

longstanding energy policy stalemate. We recognize that this task

will be difficult. Nonetheless, we are firmly committed to seeing

our recommendations through to enactment.

 

The following document outlines a new direction for energy policy.

The suggested initiatives are aggressive while being balanced and

credible. The Council calls for achievable and verifiable targets.

The false hope of domestic energy independence is replaced by

strategies for better managing the reality of global energy

interdependence. Where the market has failed to provide solutions,

government has been asked to apply workable standards capable of

spurring the needed privatesector response.

 

The Council bears no government imprimatur. We have not been

empowered by the Congress or the Administration, and we have

received no public funds. The Council has been motivated by a shared

belief in the pressing need for a comprehensive and realistic energy

policy to reduce oil dependence and improve America's economic and

national security.

 

During the past five years, the American people have been shocked by

the cruel realization of worstcase scenarios. Having witnessed the

attacks of September 11, 2001, we know all too well the human cost

of failing to address national security threats on our own terms,

rather than those of our enemies.

 

America's oil dependence threatens the prosperity and safety of the

nation. Continued policy paralysis is unacceptable precisely because

we can take action to improve our energy security. Many challenges

lie ahead, but we have no doubt that the efforts of the American

people will meet with success.

 

The time for action arrived long ago. We must not waste another

moment.

 

General P.X. Kelley, USMC (Ret.)

28th Commandant, United States

Marine Corps

 

Frederick W. Smith

Chairman, President and CEO

FedEx Corporation