Prosperity can only be built on a foundation of abundant, affordable energy. Without it, the American Dream is out of reach for many.
Data shows that there is no such thing as a wealthy, low-energy country. The connection between gross domestic product (GDP) per capita and energy use per person is so strong that not a single significant outlier exists. The data below is from Our World in Data. Note the absence of any countries in the bottom right or top left of the graph.
With the rise of AI, demand for energy from data centers is set to skyrocket, making efficient energy production even more vital. We are already seeing the largest surge in the energy sector in 21 years, and Goldman Sachs predicts a 160% increase in data center power demand by 2030. Any country that fails to keep up with this growing power demand is bound to fall behind.
The future of American prosperity hinges on our ability to harness and innovate in the energy sector.
Politicians like to sell voters on ideas of replacing “fossil fuels” with “green” alternatives, but the real and immediate need to accelerate energy production reveals this top-down approach as a vanity we cannot afford.
But how are we to address this growing need for energy? Here are three important points we must focus on:
- Cut unnecessary red tape: The current regulatory environment is stifling energy development. Streamlining the permitting process for energy projects, from oil and gas to nuclear and renewables, would accelerate the deployment of new energy infrastructure. This means reducing the time and cost with environmental reviews without compromising safety or environmental standards.
- Stop propping up inefficient power sources: If “green” energy solutions are efficient, producers are already incentivized to use them. What producer wouldn’t want to cut the cost of production of their product? If those solutions are not efficient, we are hampering our energy economy by propping up their use through regulations and subsidies. The over $15 billion per year in renewable subsidies are not just wasting money, they’re weakening our energy industry.
- Put climate concerns into perspective: When we consider the costs of climate change, it’s important to consider the costs of the policies being proposed in response to it. This isn’t to say that environmental concerns aren’t worth addressing. But we must acknowledge the massive human costs of holding back energy production, and perform a true cost-benefit analysis before taking rash action.
By removing artificial barriers, embracing all forms of energy production, and fostering a regulatory environment that encourages innovation, we can ensure that America not only meets its energy needs but also leads in technological advancement.
Let’s not allow political ideologies dictate our energy policy; instead, let’s base it on what works.
