The average American doesn't give a whole lot of thought to energy issues outside of price. "They just want to flip a light switch or fill up a tank, and they want things to work. But the recent hurricanes shone a spotlight on energy-sector challenges. Taxes, unwise mandates and stricter regulations can only make the situation worse," Clay Sell, deputy secretary of the U.S. Department of Energy (DOE), said at the annual Cambridge Energy Research Associates conference in Houston last month. Sell said one of the greatest lessons of last year's hurricanes was in the vitality of the energy sector. "The blow of the storms was more dramatic than most disasters people have imagined. Despite this, there were only spot losses. The government released reserves to assist. I took pride in the industry's response, and it was the power of the free markets that allowed the industry to respond so quickly." The challenges facing the energy industry are vast, Sell said, starting with the DOE's forecast of 50% demand growth by 2025. "We cannot ignore this, and policies today need to address tomorrow. All of the prophets of doom and gloom are underestimating the power of the economy and advances in technology." Sell said that during the next 10 years, various government departments will come together to provide a $50-billion increase in funding for scientific research-research that will include investments in science that will develop the next wave of energy technology, he said. And where there are not strong incentives for the industry to make such investments, "the government needs to continue to step up and fill the gap." Another gap that needs to be filled is in the dearth of students being drawn to the sciences, Sell said. "I am not happy with the number of students coming into science and technology today. The 'lost generation of lawyers' needs to be replaced by engineers and scientists. "To do that, we need to refocus on building up our math and science educational programs. New budgets should help improve this trend in the coming years."
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