What would change if our country started looking at the real cost of fossil fuels? Could the private sector effectively develop alternative fuels that can compete with them, or goes the government need to step in somehow? To get answers, Dylan talks with former Shell Oil president, energy expert and founder of Citizens for Affordable Energy, John Hofmeister.
“I look at the dynamic of the political infrastructure, and it looks to me like there are major subsidies that benefit all the fossil fuel companies. The consumer is never asked to pay a price, nor is the producer asked to pay a price for the negative externalities — whether it’s the pollutive aspect, or the conflict aspects of fossil fuel energy, says Dylan. “I would argue that the reason it costs so much more comparatively, and that there’s not really an incentive to make a transition is because the real price of fossil fuel is fairly distorted.”
“There is so much supply out there that is does drive, frankly, the cost down. The second thing is, you’re right, there is no cost at this point for what you call the externalities for the environmental disruption,” says John. “The supply is so huge and the amount of energy is so dense. The reason solar and wind cost so much is there’s no density of energy produced — and so you don’t get anywhere near the quantity [of energy] from wind or solar for the investment,” says John.
John Hofmeister is Founder and CEO of Citizens for Affordable Energy. He is author of Why We Hate the Oil Companies: Straight Talk from an Energy Inside and Former President of Shell Oil. Follow Citizens for Affordable Energy on Twitter @cfaenergy, or visit their website here.