Many advanced industrialized nations are substantially reducing their national (public and private) investments in energy research and development (R&D), driven in part by changes occurring as a result of the deregulation of these nations＇ energy sectors, In particular, funding for strategic energy R&D aimed at developing future energy supply options (eg, fusion, fission,＇clean＇ fossil energy, renewable energy) has been decreased substantially in both the public and private sectors in many of these nations. These trends are now starting to be seen in the United States as it moves towards the deregulation of the nation＇s utilities. The magnitude of the reductions in support for energy R&D in the public and private sectors and the shift towards decidedly shorter-term R&D has profound implications for nations approaching deregulation. Though utility customers may be short-term winners from the deregulation of utilities by paying less for energy, a national failure to invest in energy R&D is very likely to have long-term negative impacts on national energy sectors, the economies, and environmental wellbeing.