market challenge is artificial fear, with pessimism about oil supplies and production capacity, unfounded by scientific or economic basis, fostering a perception of scarcity; this very negativity contributed to the oil-price spike. Whether the doubt is rooted in misperceptions of supply adequacy, geographic origin or environmental footprint, I believe such negativity is both unwarranted and harmful. Energy independence, whatever its motivation, is much easier said than done; the very interdependent nature of our global economy, as observed in this recession, means that no nation can hope for full energy self-sufficiency. I believe that such misperception must be addressed through the understanding that all viable resources will have a role in the future energy mix, but that fossil fuels inescapably and rightly have a part in that mix. Indeed, fossil fuels will continue to meet some 80 percent of the world's energy needs for the foreseeable future. Petroleum is a proven, reliable, affordable and safe energy source whose accessibility and sustainability continually increase, thanks to the industry's emphasis on research and development, and its greater focus on energy efficiency and conservation. Oil will remain indispensable to global energy demand throughout the first half of this century, if not far beyond. Ladies and gentlemen, for some observers, the energy pessimism to which I allude is tied to a great optimism that alternative energies can handily circumvent oil's leading role. While we expect alternative fuels to grow, their economic and social competitiveness will hinge on their passing financial, technical, social and other tests, and on the development of their infrastructures and markets. Until that time, they will supplement fossil fuels, not supplant them. Given the importance of oil to the functioning of modern society, its role in economic growth and recovery, and future demand that is expected to double the call on fossil fuels, including oil, by 2050, it is vital that producers and consumers alike commit to strengthening global energy trade, investment and cooperation to enhance the flow from production to consumption. --More
