Expert says we must reduce our oil dependency
In today's global economy, America needs to be interdependent -- not independent -- when it comes to finding alternate sources of energy, retired Marine Gen. James Jones told area business leaders Friday.
"It's clear as demand goes up the supplies go down and we have to make sure we have … ways in which everyone gets access to the energy that they need," said Jones, president and CEO of the Institute for 21st Century Energy.
Jones gave the keynote speech at the Regional Economic Forecast event hosted by the Naperville Area Chamber of Commerce.
His address focused on the need for the U.S. to lessen its dependence on foreign oil, an issue he said will affect future generations in terms of the economy, the environment and national security.
Oil, which provides 98 percent of the fuel used for transportation, constitutes 40 percent of carbon-dioxide emissions, Jones said.
He said oil imports make up one-third of the country's national deficit.
Not exploring alternate sources of fuel likely will mean prices at the pump will continue to rise.
"Supply and demand are going to drive the process and as long as we're overly dependent in any one sector and as long as we fail to adjust the policies that are restricting our own oil and gas exploration … the person that's going to suffer is the consumer," Jones said.
His group is putting together a report it hopes will be a blueprint for energy initiatives. It probably will be released this summer.
Jones said the country needs to be open-minded, make use of technology and provide the infrastructure to produce, transport and store energy.
The issue, he said, is about more than just trade.
"This is a dependence that allows foreign countries to exert unnatural influence on our own behavior and I'm uncomfortable with that," Jones said.
Jones, who spent 40 years of active service in the Marine Corps, has served as an operational commander at every level and earned numerous medals for his service. From 1997 to 1999, he was the senior military assistant to the secretary of defense and also helped the North Atlantic Treaty Organization organize discussions on energy issues.
Other experts at the event discussed broader economic issues and said the nation is in a weak recession, which they attributed to the housing slump.
"Nobody a couple years ago anticipated seeing home sales drop by 35 percent and the value of the average home in the U.S. go down 10 percent in the last 12 months," said Carl Tannenbaum, an economic consultant.
The experts encouraged investors to make sure they understand their investments and diversify them to mitigate risk.
In DuPage, the economy is spread across service, technology and manufacturing, which helps it weather recessions, according to Thomas Cuculich, director of economic development and planning for the county.
"I continue to watch national and international trends, but locally things are moving on and I have cause for optimism," he said.