“Ten or fifteen years from now, companies looking to site facilities will not only ask about
energy ‘What does it cost?’ but ‘Can we get it?’.” – Governor Haley Barbour, 2008
As the dust from this historic election settles, Mississippians are beginning to get a
glimpse what may be in the near future in the White House, Senate, and House. Among
the priorities, energy policy takes center stage—an issue intertwined within the state’s
economy as college football is to its culture.
Mississippi’s love of football—especially in November, as Ole Miss and teams across
the country fight for playoff positions—offer a fitting lens to understand the challenges
and opportunities ahead. Just as football programs these days must balance tradition
with innovation and new tactics to succeed, Mississippi’s energy strategy will need to
leverage its existing strengths while adapting to the quickly evolving global energy
challenges.
Mississippi relies on natural gas and nuclear to meet nearly 90% of electricity needs
with coal making up most of the rest. Renewables account for a small sliver. All
sources are needed in a complex system. Much like the familiar roar of a stadium fuels
teams during those clutch fourth-quarter drives, dependable energy sources have
powered the state’s homes, schools, and businesses for generations. These resources
and associated infrastructure, the lifeblood of Mississippi’s economy, should remain at
the forefront of energy policies under a new Administration that rightly prioritizes
development of all energy resources for a country and a world thirsting for much more
energy.
President-elect Trump’s “drill baby drill” philosophy, focused on increasing U.S. oil and
natural gas production and reducing regulations, parallels football programs leaning on
tradition and practices that have resulted in past success. In a Trump Administration
and beyond, Mississippi is expected to continue benefiting from these traditional energy
sources with development in state and in the Gulf, which have provided obvious
reliability and economic benefits.
Yet, like any football season, the global energy landscape is unpredictable with new
challenges as electricity demand is growing at faster rate than was expected in the
recent past. The data-driven economy and the ongoing modernization of undeveloped
countries is driving up demand for energy sources sharply, resulting in supply chain
challenges globally.
ExxonMobil, in their 2024 annual energy outlook, estimates world electricity demand will nearly double by 2050. For perspective, that’s the equivalent of adding over three U.S.- sized electricity-consuming economies in just 25 years, which in today’s U.S. electricity generating terms, would be about 6,000 natural gas plants, 180 large nuclear plants, 300 coal plants, and countless smaller hydro, solar and wind generating facilities, combined. Just as football programs are adapting to the transfer portal and NIL, Mississippi must consider emerging challenges and opportunities. While sticking to what’s worked for decades is important, the rapid pace of growth presents opportunities to consider new ways of developing energy systems. In the new world, states and countries that can plan and then build energy delivery systems faster will be an oasis for high-quality industrial development in the technologhy and advanced manufacturing sectors. In landing the Amazon Web Services project, Mississippi showed the capability to permit and approve necessary energy projects faster. More forward thinking like that is needed for opportunities ahead. Mississippi’s economic future, much like today’s SEC football programs, will require adaptability, investment and, importantly, getting ahead of other locations in planning and permitting to pave the way for faster construction. At the end of the day, success will be evident in the construction and expansion of natural gas generation and pipelines, electric power transmission, and new nuclear generation. As new energy assets and capacity are planned and built, investment in new and expanding business will follow.
The Mississippi Energy Institute sponsored this post authored by MEI President Patrick Sullivan.
1 comment:
Build more nuke power plants across the country. Clean energy!
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