In a world where we need all the energy we can find, how do we do more with less?

The Challenge

Energy Supply and Demand

Global energy demand has increased by about 60 percent since 1980 and it is expected that expanding populations and economies could result in yet another 50 percent increase by 2030 (over 2005 levels).¹ This energy demand supports economic growth by meeting transportation, heating, and electricity needs as well as helping to produce the food we eat, the clothes we wear, and the range of products that enrich our daily lives.

To meet this increasing demand, continuing development of traditional energy sources such as oil, coal, and natural gas will remain indispensable, as will further diversification into other energy sources and technologies including renewables, nuclear, and fuel cells.² Focusing only on increasing supply, however, will be insufficient to address the challenges posed by rising energy needs, consumption, and costs around the world. What are the opportunities on the demand side of the energy equation?

The Opportunity

Given the dual challenge of meeting global energy needs and curbing greenhouse gas emissions, conservation and efficiency ³ offer large untapped energy sources that also help moderate demand for carbon-intensive fuels, reduce energy costs, and preserve finite natural resources.

Many individuals and organizations recognize these benefits and are increasingly taking steps to invest in, or otherwise incorporate conservation and energy efficiency into daily routines and processes. For example, individual consumers are investing in fuel-efficient vehicles and many are making changes to their lifestyles by carpooling, recycling, and installing energy-efficient lighting. Similarly, industries are adopting energy-efficiency technology and encouraging suppliers and contractors to use less, conserve more, and reduce waste to achieve “bottom line” improvements.

While these activities are surely helping, progress from energy efficiency and conservation efforts is uneven throughout the world, within national boundaries, as well as among individuals and institutions. How do we increase the scale and long-term effectiveness of energy saving activities? What market dynamics or policy initiatives would be most effective to enhance energy awareness and create more sustainable energy consumption practices? What steps should individuals, governments, and other organizations take to reduce overall consumption and use our current energy supply more wisely?

1. Energy Information Administration / International Energy Outlook 2008, p. 1.
   http://www.eia.doe.gov/oiaf/ieo/pdf/highlights.pdf
2. Energy Information Administration / International Energy Outlook 2008, p. 1.
   http://www.eia.doe.gov/oiaf/ieo/pdf/highlights.pdf
3. Typically, energy conservation refers to reducing energy consumption by using less of an energy service while energy efficiency relates to using energy supplies more wisely: “Saving Energy in the Oil and Gas Industry”, IPIECA, 2007, p.3.
   http://www.ipieca.org/activities/general/downloads/Saving_Energy.pdf