Good morning.

I would like to thank the Financial Times, particularly Ed Crooks, for inviting me to come here today and share my thoughts on the future of U.S. energy. For more than a decade, it has been BP's position that America and the world must start moving toward a lower-carbon energy future. Long ago, BP voiced its support for precautionary action with regard to climate change. And a more diverse energy supply - one consisting of fossil fuels, as well as, biofuels, wind, solar and nuclear - is simply a good idea on energy security as well as environmental grounds. But, a sensible roadmap - how society gets from here to there - has always been a bit vague. Especially when you factor in the desire to maintain and enhance the standard of living Americans have come to expect.

The Energy Information Administration is projecting that US energy demand will grow from 101.9 quad BTUs in 2007 to 113.6 quad BTUs by 2030. That's the equivalent of adding another Texas. Alternative fuels have an important role to play, but care must be taken not to oversell what we can expect from them. Promising too much, too soon when it comes to alternatives risks rendering the entire effort politically and economically unsustainable. And the world can't afford that. Even as we seek to diversify our energy portfolio, we need to take note of a basic fact. Except for the 8 percent of US energy that is generated by nuclear power and the 7 percent that comes from hydro and renewables, the entire US economy runs on fossil-based fuels. That fact is key as we look forward. One hundred and fifty years ago last month, Col. Edwin Drake discovered oil in Titusville, Pennsylvania. Read the entire speech.