So often these days our public discussion of important issues is presented in the extremes. Take energy, for example. We hear that we must have energy independence. We have to get ourselves off “foreign” oil. It’s oil versus solar. Oil versus wind. Oil versus wood. If only it were that simple. The Energy Information Administration of the U.S. Department of Energy forecasts that world energy consumption will grow by 44 percent by 2030.
What that means to us in Maine is that it’s not about oil versus the alternatives; it’s about recognizing that in a world where energy demand continues to increase, we are going to need many different sources of energy to stay warm, power our vehicles and grow our economy. And it is obvious that we need to continue to pursue conservation and weatherization aggressively so that all the energy we use is used wisely and efficiently.
As the president of one of Maine’s largest and oldest family-owned energy companies, I think a few other points need to be made:
It is no accident that nearly 80 percent of Maine homes are heated with oil. For generations Maine consumers have found home heating oil to be convenient, safe, reliable and affordable – notwithstanding occasional price spikes such as the one we experienced last summer. Heating oil is easily delivered, stored and used without ever being touched by the consumer.
We are not “big oil.” Maine’s many local energy companies offer quality products, services and equipment, employ more than 8,000 Maine people, support our communities, and aggressively compete with each other based on price and customer service.
Most of us are locally owned, and we are perhaps the only business left that makes house calls day or night.
We have been doing our part. Twenty-five years ago the average household in Maine used 1,200 gallons of heating oil a year; today the average is down to around 800 gallons a year, and with cleaner fuels, increased weatherization and new technologies, we can drive that down to 600 gallons a year or less.
That’s a significant reduction, and it is occurring because we are helping our customers find ways to use less of our product! We also are actively promoting propane for space heating and hot water, saving customers money and reducing oil use even further.
Alternative energy should be pursued. Alternatives such as wind and solar hold great promise for generating electricity in Maine, and we support their continued development. However, for most families it is going to be a long time before alternative energy sources are as affordable and practical as oil for heating our homes.
Government should not pick fuels. While we are clearly beginning a transition to greater use of alternative fuels, the government should not be choosing one fuel or heat source over another. This is especially important in light of Maine’s population.
Wood, for example, is not practical for many people, and most Mainers cannot afford to rush out and buy new pellet furnaces, solar panels, windmills, geothermal heat pumps, etc., even with generous tax credits that our country cannot afford right now.
Cleaner fuels hold great promise. The federal government already mandates the use of ultra low-sulfur diesel for transportation, but the regulation of home heating oil – essentially the same – is a state matter.
We support uniform regulations that mandate the use of ultra low-sulfur heating oil. We also support the development of bio-fuels for transportation and home heating. Blending bio-fuels into all heating oil sold in Maine, for example, would reduce oil consumption in Maine by tens of millions of gallons a year.
Transportation should be the focus. Addressing the use of petroleum in transportation should be the priority of Congress. Because transportation is nearly 100 percent dependent on fossil fuels, this must be a national challenge. Heating oil, on the other hand, represents a tiny fraction (1.7 percent) of every barrel of refined crude oil we use in this country.
The “foreign oil” rhetoric is overblown. While it is popular to complain about foreign oil and tout energy “independence,” it makes no economic or practical sense to overstate the situation.
Canada is by a wide margin our largest source of “foreign” oil (and Mexico is No. 3). While energy independence is a worthy goal, energy security is just as important.
Even as we aggressively pursue alternatives, home heating oil and other petroleum products are going to be important to Maine families for many more years to come.
In the meantime, we all share the same goals of lessening our reliance on fossil fuels, protecting the environment, and promoting the responsible development of new energy sources.
Bob Moore is president and CEO of Dead River Co., headquartered in Bangor.
It’s all about oil and alternatives
By Bob Moore
