• Energy Supply and Security

As the early phase of the presidential campaign demonstrated, the country faces a whopping question: Where is the future supply of oil and gas coming from? The emergence of new national oil companies and the growing strength of existing national oil companies pose new challenges, particularly to the "super-major" oil companies in the U.S. who have felt their leverage with these entities decrease due to growing competition for oil from China and elsewhere. "The dynamic with the national oil companies is becoming more important," Fornari notes. "The interplay [with these entities] from business and exploration and production standpoints represents huge challenges." The growing need for energy security, along with environmental drivers, has helped spark a nuclear renaissance at home and abroad. "Nuclear generation is critical to the future of energy independence," notes Filsinger. There are currently 104 nuclear reactors in the U.S., with 12 planned for construction and another 20 proposed. Russia currently has proposals for 25 more nuclear power plants while China has proposals for 76 new plants.

• Environmental Issues

"Environmentally based issues are probably the number one challenge facing the overall energy industry right now," says Filsinger. "Carbon dioxide issues and greenhouse gas emissions are affecting everyone, from oil and gas producers and electricity producers to energy consumers. And we're seeing a huge impact in customer behavior." The demand for alternative, more climate-friendly fuels and energy sources is soaring. Oil and gas companies (along with agricultural businesses and even some bio-technology companies) are exploring, and hoping to exploit, bio-mass, corn-based ethanol and cellulosic ethanol among other alternatives to gasoline. Wind has emerged as a promising alternative to coal and natural gas, despite serious challenges in harnessing and transmitting wind power.

Powering the Future: Energy at a Crossroads

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