WEST LAFAYETTE, Ind. – “Our oil dependence is dangerously unsustainable,” thundered U.S. Sen. Richard Lugar to 1,000 executives, scientists, academicians and politicians packed into Purdue University’s Loeb Playhouse on Aug. 29.

Keynoting at an all-star conference bearing his name – the Richard G. Lugar-Purdue University Summit on Energy Security – the Hoosier senior senator took just about everyone to task for America’s current dependence on liquid fossilized remains from the Triassic period.

Virtually no group was spared – including the state of California – whom Lugar blasted for having exactly one E85 commercial fuel pump in the otherwise environmentally conscious state. By the way, the “E” in E85 of course stands for ethanol, which is a corn-based renewable fuel currently touted as a viable supplement for refined fossil fuels.

The figure “85” represents the ethanol percent of the fuel, which can run just fine in Indianapolis race cars or newer American vehicles configured for Flex Fuel. The corn-based gasoline alternative was but one of several renewable energy resources reviewed in detail at the Purdue summit.

The afternoon presentations featured in-depth discussions on plant-based fuels, new and efficient uses of coal and other alternative energy sources. Michael Ladisch, a distinguished professor of agricultural and biological engineering at Purdue, openly called for a crash fuels program with the intensity and passion similar to the NASA Apollo space missions to put a human on the moon.

In his opening remarks, Lugar tore into oil companies and American automakers with these harsh words: “Neither American oil companies nor American car companies have shown an inclination to dramatically transform their businesses in ways that will achieve the degree of change we need to address a national security emergency.”

Pointing out that “no politician on the national scene can afford to ignore energy,” Lugar emphasized: “Our current dependence on imported oil has put the U.S. in a position that no great power should tolerate. Our economic health is subject to forces far beyond our control including the decisions of hostile countries. We maintain a massive military presence overseas partly to preserve our oil lifeline.

“There is no guarantee that even our unrivaled military forces can prevent an energy disaster. We have lost leverage on the international stage and are exacerbating the problems daily by participating in an enormous wealth transfer to authoritarian nations that happen to possess the commodity that our economy can least do without.”

Before receiving an enthusiastic standing ovation at the conclusion of his speech, Lugar called for a new legal mandate that will require U.S. automakers to raise mileage standards, a massive infusion of new federal funding for fuel research (generated by an automatic tax that would kick in when oil prices drop below $45 a barrel) and the production of 100 billion gallons of ethanol annually, which would largely replace current international oil imports into the U.S.

While these obviously aren’t easy tasks, other presenters emphasized that the time for waiting for a solution is long over.

Amy Myers Jaffe, an energy studies fellow at Rice University, painted a dim and alarming picture of current energy issues on a global scale. Listing dozens of viable threats to energy stability from terrorists to natural disasters, Jaffe pointed out how worldwide production reserves presently were less than 1 percent. Even a small deviation in available production could trigger a triple-digit price for a barrel of oil, which would likely catapult the world into a major global recession.

Even without major political upheaval or a new Middle East crisis, the world cannot sustain the dramatic increase in oil demand from countries like China, India and others increasing their fossil fuel use, Jaffe said. If current projections become reality, the worldwide known oil reserves might only last barely 50 years before massive rationing would have to take place.

During a recent appearance on the Arab-language Al Jazeera news channel, she was astonished that the majority of questions directed to her dealt with whether our Middle Eastern and OPEC countries could continue to raise the price of oil without triggering a worldwide economic collapse. No questions focused on future energy solutions.

Indiana congressman Pete Visclosky continued the theme into a luncheon keynote by warning that the U.S. is presently spending “$200,000 a minute on foreign oil”. Agreeing fully with the Republican senator, the Democratic congressman said that American focus on “bold and persistent experimentation” combined with technology and innovation could lead to success. He added: “We can grow the economy while kicking the oil habit.”

While much of the early portion of the Lugar-Purdue summit focused on doomsday scenarios, plenty of good news about current trends and renewable fuels potentials were included. Opening the conference, Indiana Gov. Mitch Daniels announced a shift in the state’s policy toward biofuels: “The next phase of the state’s ethanol policy will focus on making Indiana the leader in next-generation biofuels development and production.”

“The first phase of our biofuels policy – corn-based ethanol production – has been a clear success and has achieved our goals way ahead of schedule. Now that we’ve come from behind to leadership in first-generation biofuels, we want to be second to none in the next generation,” he said while also explaining that cellulosic and biomass fuels of the future will soon become a focus in Indiana.

Purdue President Martin Jischke – who will step down next June from Purdue’s top post – quoted history to sum up the future: “A very famous man was quoted in a New York Times news story as saying ‘the fuel of the future is ethanol’.”

Jischke explained that the date of that story was in 1925 and the person being quoted was industrialist and auto innovator Henry Ford. He added: “That future Henry Ford referred to is today.”

“I believe that we are at a crossroads: not only in this nation but in our world,” the Purdue president told the assembly. “I believe the time has come when we will either begin to find alternatives to our national and worldwide dependence on fossil fuels or fossil fuels might well become the end of us.”

With perhaps 50 years left, the Lugar-Purdue summit very well could have chronicled a turning point. Time, which experts say the world doesn’t have much of, will tell.

Michael Snyder is principal of The MEK Group, a marketing and business development consulting firm that provides communications-driven strategies to increase market share, enhance productivity and build distinctive brand awareness. Snyder can be reached at msnyder@themekgroup.com.
Click here for Snyder’s full biography.

Previous Columns in 2006:
Indiana on a Roll: Moody Boost, $3.9 Billion in Funding, 15,000 New Jobs (8/24/2006)
Indiana: The Coming Middle East of Biofuels? (8/17/2006)
Japanese Tech, Manufacturing All-Stars Coming to Indianapolis (8/10/2006)
Hoosier Haverstick Approaches $100 Million, Targets Commercial Growth (8/3/2006)
Hoosier Expatriates: VC Chief James Eifert Wants You Back in Indiana (7/27/2006)
Indiana Life Sciences Driving Compelling Growth Environment (7/20/2006)
Indiana, India: Fresh Steps Toward New, Complex Tech Partnerships (7/13/2006)
Gov. Daniels on New Honda Deal: ‘Indiana’s Comeback is Under Way’ (6/29/2006)
Indiana Gov. Mitch Daniels on Second Asian Hunt For Hoosier Jobs (6/22/2006)
Rolls-Royce Opening $145 Million Aerospace Center in Indianapolis (6/15/2006)
BioCrossroads Ponies Up Funding For Indiana Breast Cancer Research (6/8/2006)
Indiana Gov. Daniels Announces $105 Million Venture Capital Fund (6/1/2006)
TechPoint MIRA Awards Showcase Hoosier Best, Brightest Tech Stars (5/25/2006)
Indiana Super Park Takes Form For Rapid Technology Growth (5/18/2006)
Battelle Report: Indiana Life Sciences Confirmed as National Player (5/11/2006)
Chernobyl Disaster Spawns Online Humanitarian Effort in Indianapolis (4/28/2006)
Web Pages That Suck: Flanders Skewers Bad Fortune 500 Design (4/20/2006)
IEDC Record Success: ‘We’re Not Waiting For People to Call Us’ (4/13/2006)
Top Hoosier Biotech Leadership: ‘We’re Ready For Solid Growth’ (4/6/2006)
NSF SBIR Chief: Lucrative Hoosier Funding Opportunities Now Available (3/30/2006)
Indiana Advanced Manufacturing No Oxymoron, Says Purdue University (3/23/2006)
IU Informatics: Chronicling Google’s ‘Political Correctness’ in China (3/16/2006)
Indiana Emerging as Dominant Player in Global Biofuels Production (3/9/2006)
Indiana Fund Ponies Up Life Science Investment, Sets Stage For More (3/2/2006)
Indiana Nanotech Convergence Sets Stage For Real Transformation (2/16/2006)
Telecom, Cable Giants Square Off in Hoosierland Reform Brawl (2/9/2006)
Innovative Disruption: Hoosier Energy Breakthrough Coming? (1/26/2006)
Molecule IY573144: Real Start of a New Hoosier Life Sciences Era? (1/19/2006)
Sea Change Now in the Air For Technology Development in Indiana (1/12/2006)
Virginia Miner Crisis Communication: Lessons For Technology Executives (1/5/2006)
Click for 2005 column archive.

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