CONFERENCE WRAP-UP

1. CONFERENCE WRAP-UP Roger K. Conway Director Office of Energy Policy and New Uses

2. A NEW PARADIGM IN ENERGY PRICES • US is Mature Oil and Natural Gas Producer • New Energy Demand From Newly Industrialized Countries • Natural Gas Prices Likely to Remain High • Middle East Stability South East Asia South America Africa

3. Framing the Energy Discussion • Ask The Right Question • Use A Systems Approach • Portfolio Balance Model • Externalities Play A Large Rule

4. Use In Agriculture and Rural America Energy • Energy is important for farmers and processors. • The Sector Adjusts in Long Run. The Price System Works. • International Competitiveness For Agriculture • Electricity Markets and Grid Reliability • Homeland Security

5. AGRICULTURE AS A PROVIDER OF ENERGY • May Not Need A One-to-One Displacement For Energy Security • Technical Resource Capacity Enough To Be Part Of Solution • Infrastructure A Major Hurdle • Costs Are Coming Down • Focus On Imports: Not Entire Transportation Fuel Market • Externalities Play A Large Role • Energy, Environmental, Agricultural Policy Must Be Coordinated • Technology Transfer of Renewables

6. AGENDA FOR THE FUTURE • Need Better Data, and Address Data Gaps, Update Estimates For Energy Use in Agriculture • More Complete Information and Assessment of Energy Disruption on AG and Processing Sector • Need Nonmarket Valuation of Renewables • Estimating Net Energy Use in the Agricultural Sector • Opportunities for Hydrogen and Fuel Cell Use in Agriculture • Use Systems Approach for Policy