18 December 2014: The International Energy Agency (IEA) has released its ‘Energy Policies of IEA Countries: The United States 2014 Review.’ The report reviews the oil and gas boom in the US, developments in the national energy policy framework and efforts toward sustainability in the energy system and stability in the electricity sector.

While the report’s analysis does not include the US’s November 2014 announcement that it aims to cut net greenhouse gas (GHG) emissions 26-28% below 2005 levels by 2025, the authors do note progress toward a climate and GHG policy since the last IEA review in 2007. In particular, they point to a series of related executive actions, including presidential commitments, the Climate Action Plan introduced in 2013, the Environmental Protection Agency’s (EPA) Clean Power Plan, and energy efficiency, renewable energy, transport and smart grid policies.

The report relates environmental concerns over the use of hydraulic fracturing, which has induced a boom in oil and gas production, but notes that the IEA predicts production will level off in 2020 when the practice becomes less economically attractive. The inexpensive gas derived from the boom has prompted significant changes in the electricity sector, which the report finds could benefit from a more consistent federal regulatory framework.

In its 2007 review, the IEA emphasized the overall lack of a unified federal policy on energy. The 2014 edition welcomes initiatives undertaken to ameliorate that situation, such as the President’s Blueprint for a Secure Energy Future, All-of-the-Above Energy Strategy, enactment of the American Recovery and Reinvestment Act of 2009 (ARRA), and Quadrennial Energy Review (QER).

In its recommendations, the document hones in on: the QER, highlighting the need to complete it and utilize the outcomes; energy efficiency and renewable energy, recommending demand-side measures and fiscal incentives; and the sustainability of the electricity sector, calling for coordination among national policies and grid operators to ensure smooth integration of renewables and optimized use of transmission investments. [IEA Press Release] [IEA Publication Webpage] [Publication: Energy Policies of IEA Countries: The United States 2014 Review Executive Summary]