IEA: U.S. May Halve Energy Imports with Greater Efficiency, but Faces Hurdles

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Researched by Industrial Info Resources (Sugar Land, Texas)--The International Energy Agency (IEA) (Paris, France) estimated in its new report that a combination of energy-efficiency policies and growing domestic energy production could cut the European Union's (EU) 2011 oil import volumes in half by the end of 2020. EIA data revealed that in 2011, the U.S. relied on imports for 44.8% of its petroleum consumption, down from 60.3% in 2005.

According to Energy Efficiency Market Report, U.S. energy efficiency markets will continue to grow in the mid-term, driven by federal and state policies, regulatory mechanisms, and energy prices. However, potential hurdles may cast a shadow on the outlook.

"Since U.S. energy-efficiency markets derive largely from federal and state policies, they are particularly vulnerable to political and economic developments," the report said. The amount of energy used in the U.S. per $1,000 of economic output fell 4.8% last year; it remained 15% above the group's average, according to the agency.

Tighter fuel economy standards for vehicles are expected to result in savings of 6.3 billion barrels of oil, or 1.5 million barrels per day, over the life of light-duty vehicles built between 2012 and 2024 and heavy-duty vehicles built from 2014 to 2018.

The report valued worldwide energy efficiency investments in 2011 at $300 billion, a level on par with global funding of renewable energy and fossil-fuel power sources. IEA economies avoided burning 1.5 billion tons of oil equivalent, thanks to efficiency improvements since 1974.

"Energy efficiency has been called a 'hidden fuel,' yet it is hiding in plain sight," said the IEA's executive director Maria van der Hoeven, at a presentation for the paper at the World Energy Congress in Korea. "Indeed, the degree of global investment in energy efficiency and the resulting energy savings are so massive that they beg the following question: Is energy efficiency not just a hidden fuel but rather the world's first fuel?"

In the EU, member states have agreed to a 20% improvement in energy efficiency by 2020. "Meeting the 2020 target is expected to reduce the EU's annual oil imports by 2.6 billion barrels in 2020, saving $260 billion in the same year," the EIA said.

The agency went on to explain that in China, the "complex" governing system and a diverse array of targets including energy efficiency, carbon intensity and renewable generation present challenges to lawmakers.

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