Tag: "energy"

Anti-fossil Energy Groups Lobby Students

Universities and other public institutions throughout America are being targeted in an aggressive climate crisis-premised campaign demanding that they divest themselves of all fossil energy investments and influences. In the process, legitimate funding sources are being sacrificed, objective education and science programs are being compromised, and careers of non-conforming researchers are under assault.

As reported by Kimberley Strassel in The Wall Street Journal, one such sponsoring organization, “UnKochMyCampus,” provides a “campus organization guide” on how to “expose and undermine” any college that works against “progressive values.”

Spearheaded by Greenpeace, Forecast the Facts, and the American Federation of Teachers, its website directs students to a list of universities which have received money from Koch foundations. It also offers step-by-step instructions on how “trusted allies and informants” (including other liberal students, faculty and alumni) can be recruited to demand Freedom of Information legislation record disclosures from offending programs and professors.

The Federation of Teachers and National Education Association even sponsored a day-long March conference devoted to training students on “necessary skill to investigate and expose” any Koch influence. Funding influences of left wing contributors, however, are quite a different matter.

It seems quite okay that billionaire environmentalist Tom Steyer and his wife pledged $40 million to create the TomKat Center for Sustainable Energy at Stanford. Steyer, a prominent climate alarmist, anti-Keystone Pipeline lobbyist and carbon tax proponent, also spent $74 million supporting 2014 congressional candidates who would advance his uber-liberal agendas.

A recent National Association of Scholars report titled “Sustainability: Higher Education’s New Fundamentalism” discusses how universities continue to be co-opted as bastions of progressive ideology. Excerpted by Rachelle Peterson and Peter Wood of the Intercollegiate Studies Institute, the movement can be heavily credited to the former senator, now the secretary of state, John Kerry and his wife Teresa Heinz following her previous husband’s fatal 1991 helicopter crash.

Upon meeting at the 1992 Rio de Janeiro U.N. Earth Climate Summit the two recognized colleges and universities as important seedbeds for a new “sustainable development” initiative. This mantra was hatched by the U.N. under its Agenda 21 doctrine and became smuggled into unwitting American townships and counties through its International Council for Local Environmental Initiatives (ICLEI).

In 1992 Kerry and later-to-become wife Heinz launched the nonprofit “Second Nature” with the mission to “create a sustainable society by transforming higher education.” The organization began soliciting professors including ecologists, scientists, philosophers, and poets who were willing to introduce sustainability content into their courses along with encouraging the creation of new centers of sustainability study.

Second Nature’s primary and most successful targets proved to be college presidents who possess an unparalleled ability to shepherd the movement to adulthood along with financial flexibility to experiment with new technologies and programs. A group of 12 institutional heads initially came onboard, including Arizona State University President Michael Crow, and University of Florida President Bernard Machen.

The group pledged to “recognize the scientific consensus that global warming is real and is largely caused by humans” and to set an example by going “carbon-neutral.” Among other things, they also committed to engage in shareholder activism to pressure the corporations in which the college owned stock to move towards climate neutrality. As of last January, 685 colleges and universities have signed on.

Joined by mega-funded green groups, friendly media and government politicos the movement continues to gain fast-paced momentum. A recent Greenpeace-sponsored New York Times attack on Dr. Willie Soon of the Harvard-Smithsonian Center for Astrophysics accused him of personally failing to disclose research funding, even though those monies were properly processed through official institutional agreements.

Two days after the Times article appeared, ranking Democrat on the Natural Resources Committee Rep. Raul Grijalva, D-Ariz., sent letters to university employers of seven researchers identified as climate crisis skeptics. All were asked to provide details about their outside funding sources.

In addition, Senators Barbara Boxer, D-Calif.; Ed Markey, D-Mass.; and Sheldon Whitehouse, D-R.I., attempted to intimidate climate apostates by sending 107 letters to think tanks, trade associations and companies demanding that they provide the same information.

By extension, this presumably suggests that no scientist who ever accepts research funding from any special interest-linked sponsors should be trusted. Let’s remember, however, that government politicians and bureaucrats wishing to expand authority and budgets are as self-interested as anyone, and that nearly all university-based climate research depends upon federal grants they provide.

Those research conclusions, in turn, influence billions of dollars in regulatory and consumer energy costs. There’s little wonder then about the need for alarmist witch-hunting activists following 18 years and counting of flat global temperatures despite rising atmospheric CO2 levels. When the climate scare goes away, so does that power and money.

Another version of this post appeared in Newsmax.

 

DOE Invests $75 Million to Create Fuel by Artificial Photosynthesis

The U.S. Department of Energy will invest $75 million in the quest to create liquid transportation fuels through artificial photosynthesis.

The funding will renew the Joint Center for Artificial Photosynthesis (JCAP), an Energy Innovation Hub established in the beginning of 2010. The hub, which is modeled after “the strong scientific management approaches typified by the Manhattan Project,” is one of several Energy Innovation Hubs established by the Department of Energy.

According to Under Secretary for Science and Energy Lynn Orr:

Basic scientific research supported by the Department of Energy is crucial to providing the foundation for innovative technologies and later-stage research to reduce carbon emissions and combat climate change. JCAP’s work to produce fuels from sunlight and carbon dioxide holds the promise of a potentially revolutionary technology that would put America on the path to a low-carbon economy.

This commitment of new funding comes on the heels of an announcement from the Government Accountability Office stating that the department’s $28 billion loan program will cost taxpayers $2.21 billion over the lifetime of the loans. The cost skyrocketed by $500 million after several companies defaulted on their loan guarantees.

Energy Security Must Include Reliable Power

A similar version of this blog post appeared in Newsmax:

Unlike populations in most other parts of the world we Americans take vital benefits of dependable electricity for granted. We simply plug into an outlet or flip on a switch and fully expect that our lights will go on, our computers will charge, our coffee will heat up, our air conditioners will function, and yes, our generous taxpayer subsidized plug-in vehicles will run again until tomorrow.

This wonderful, finely balanced round-the-clock empowerment required planning and development which didn’t occur overnight. The same will be true of future efforts to restore adequate capabilities after the Obama EPA’s Clean Power Plan takes an estimated one-third of all U.S. coal-fired plants off the grid over the next five years. This amounts to a loss of generating capacity sufficient to supply residential electricity for about 57 million people.

The North American Electric Reliability Corp, a nonprofit oversight group, emphasizes that the plan constitutes “a significant reliability challenge, given the time required for implementation.” The timeline to convert or replace a coal-fired power plant with natural gas requires years, whereby siting, permitting and development to meet EPA’s interim target would need to be completed by 2017.

Even if a state were able to submit a compliance plan by 2017 or 2018, EPA has admitted that it may take up to another year to approve it. New and upgraded natural gas plants will require additional pipeline infrastructure which may take five years or longer. More expansive transmission lines will also be required to connect that capacity to the grid, with full implementation potentially taking up to 15 years.

EPA’s latest climate alarm-premised war on coal assault calls for states to cut CO2 emissions by 30 percent from 2005 levels by 2030 despite satellite-recorded flat mean global temperatures over the past 18 years and counting. This federal usurpation of state responsibility dating back to the invention of the modern steam engine in the 1880s is unprecedented.

A “finishing rule” expected to be issued in June or July will require states to meet agency carbon-reduction targets by reorganizing their “production, distribution, and use of electricity.” In complying, 39 states must achieve more than 50 percent of EPA’s reduction targets by 2020.

Not only are EPA’s mandates unfeasible, they also demand that states operate “outside the fence line” to force shut-downs of coal (and eventually natural gas), establish minimum quotas for renewables (wind and solar), and impose energy conservation mandates. Never mind here that last year the D.C. Court of Appeals ruled against the Federal Energy Regulatory Commission’s claim of authority over “demand response” of the national energy grid.

Even liberal Harvard constitutional authority Larry Tribe has observed being stunned at this effort to nationalize U.S. electricity generation by coercing states to pass new laws or rush through new compliance rules that exceed EPA’s legal jurisdiction. President Obama is clearly eager for such policy changes to be quickly put into effect which a future Republican president can’t reverse. This will also provide bragging rights for a climate initiative he can announce at the Paris climate conference later this year.

Fortunately, while states are invited to draw up implementation plans for EPA approval, they really have no legal obligation to do so. And while EPA can attempt to commandeer a federal plan if states resist, there are good incentives for them to band together in calling EPA’s bluff — reasons which can otherwise bear dangerous and costly consequences.

An April 7 Washington, D.C., power outage caused by a mechanical failure and fire at a transfer station temporarily disrupted electricity to the White house, Capitol, government agencies (yes, including the Energy Department), businesses/residents, and street lights. While relatively minor, it most likely could have been avoided if a 60-year-old coal-fired plant called the Potomac River Generating Station in Alexandria, Va., which provided backup capacity to balance the grid, hadn’t been shuttered.

It was one of 188 plant closures credited to former New York City Mayor Bloomberg’s activist “Beyond Coal” campaign which he has supported with $80 million in donations to the anti-fossil Sierra Club.

A far more damaging 2003 Northeast blackout resulted in costs of about $13 billion. Referring to the Clean Power Plan, the New York Independent Systems Operator (NYISO) now reports that EPA’s “inherently unreasonable” reductions “cannot be sustained while maintaining reliable electric service to New York City.” NYISO further projects unacceptable plan consequences which “no amount of flexibility can fix.”

States should collectively heed this reality. Rather than accept EPA’s dirty work, it’s imperative that federal hijacking of state sovereignty be resoundingly rejected.

The Expensive Solar Power Death Trap

The $2.2 billion Ivanpah Solar Electric Generating System is a concentrated solar thermal plant in the California Mojave Desert. The Ivanpah solar facility generates 377-392 megawatts (enough to power 140,000 homes) and spreads across 3,600 acres killed over 3,500 birds in its first year, according to a new report.

From 29 October 2013 to 20 October 2014 at the Ivanpah Solar Electric Generating System facility:

  • Avian detections at the site included 83 different bird species with 64 having fewer than 10 detections.
  • Of the remaining 19 species, all have populations that are great enough locally (either as breeders, wintering birds, or migrants), regionally, and nationally that the magnitude of mortality detected and/or estimated at Ivanpah during the first four seasons of monitoring would have a minimal impact on populations at any of these geographic scales.
  • The cause of death for 42.2 percent of the detections of species with 10 or more detections was unknown and thus cannot be determined with certainty to have been “facility-caused”, the standard cited in Section 5.3 of the Plan.

The report‘s recommendations concerning monitoring and/or adaptive management at Ivanpah include:

  • Continuation of Plan implementation as it was performed during year 1 monitoring.
  • Continue with and increase the number of searcher efficiency and carcass persistence trials to enable more refined estimates by season and/or within project elements.
  • Continuation of the adaptive management process to investigate means of reducing avian mortality.
  • Full implementation of bat deterrence at all three solar units.

In comparison, a new coal-fired power plant that generates enough electricity to power as many homes as Ivanpah, costs $1.1 billion. At double the cost, solar power is still too expensive.

White House Releases Quadrennial Energy Review for Earth Day

Yesterday, the Obama administration released the first installment of the new Quadrennial Energy Review (QER), a four-year cycle of assessments deigned to provide a roadmap for U.S. energy policy. This first installment focuses on the needs and opportunities for modernizing the nationwide infrastructure for transmitting, storing, and distributing energy. Dr. John Holdren and Dan Utech said:

Today, America has the most advanced energy system in the world. A steady supply of reliable, affordable, and increasingly clean power and fuels underpins every facet of our nation’s economy. But the U.S. energy landscape is changing dramatically, with important implications for the vast networks of pipelines, wires, waterways, railroads, storage systems, and other facilities that form the backbone of America’s energy system.

The administration hopes that careful analysis and modernization of energy infrastructure will promote economic competitiveness, energy security, and environmental responsibility.

This first QER installment comes just in time for Earth Day, which has spurred many sectors of the government into action. Over the past two days, the House of Representatives sent an energy efficiency bill to the president’s desk, the Department of Justice and the EPA levied $5 million in penalties against ExxonMobil for a 2013 oil spill, Democratic House members introduced the “strongest anti-fracking” bill yet brought to the House, which would ban fracking on all federal lands. The president is also doing his part, touting his plans to impact climate change at debates in Florida.

Though Earth Day has a tendency to bring out people’s far-fetched energy plans, it does do some good as well. According to the Annual Energy Outlook, improvements in energy efficiency, increases in energy demand, and the stabilization of energy-related carbon dioxide emissions have all benefited since the first Earth Day 45 years ago.

 

Feeling the Heat — Oil Export Stalemate in Venezuela

Typically when a currency falls in value, investors flock to purchase that country’s assets and exports under the new exchange rate. The Venezuelan government however, is stuck producing nearly the same output. Why? Simply put, because of the South American country’s involvement in the Organization of the Petroleum Exporting Countries (OPEC) and its incredible reliance on oil, which is estimated by Reuters to be responsible for 96 percent of government revenue. Venezuela is in a position where it cannot produce more oil — to take advantage of break-even costs as low as $40 per barrel — or less, due to burgeoning global supply’s effect on prices.

Venezuelan oil production has not risen substantially in almost two decades:

Venezuelan Oil Production

This is not the byproduct of a lack of private interest in the country: exploration and extraction companies such as Chevron already operate within Venezuela and the Bolivarian government even claims grievances against ExxonMobil for resource theft by its international waters with Guyana. This is not because the country is attempting to use its reserves more sustainably — Venezuela has the largest deposit of proven oil reserves, and owns over 17 percent of the world’s oil, compared to the rest of Latin America, which collectively owns less than 5 percent. The combined lack of productivity and revenue is due to OPEC quotas, which have become a thorn in President Maduro’s side. This has effectively stunted Venezuela’s production capacity compared to its neighbors:

Proven Oil Reserves

Oil Production

Venezuela’s recent attempts to counter economic collapse and civil unrest have come in the form of two new deals:

  • Much like Nicaragua and Venezuela’s accord to trade coffee beans for crude oil, and Cuba and Venezuela’s deal to trade oil for teachers and doctors, Uruguay has now agreed to begin trading food for oil
  • India has joined China in becoming a key consumer of Venezuelan oil, with a long-term investment plan of $143.7 billion being put in place to develop infrastructure for oil production in Venezuela

Even if OPEC were to scale back production tomorrow, all of these attempts to harness and expand on the country’s competitive advantage are likely futile for Venezuela itself, as it has a fixed supply quota it cannot surpass. Additionally, because of that quota, strengthening oil trade with Asian countries has meant neglecting and making cutbacks with the rest of Central and South America. Supply shocks are already being felt in Petrocaribe, a trade bloc of Caribbean nations which rely heavily on Venezuelan crude.

Apart from simply diversifying their economy and liberalizing the market, it is becoming increasingly urgent that Venezuela corresponds with the needs of its people rather than the whims of OPEC. The ailing nation should reduce these regulatory barriers such that its production more accurately reflects growth in global oil demand, it is after all one of the few oil-rich nations that has yet to do so.

 

American Energy Renaissance Act — Why Oil and Gas Matter

The American Energy Renaissance Act of 2014 — a bill proposed by Senator and now presidential candidate, Ted Cruz — proposes many drastic changes to the status quo surrounding energy and environmental regulations, some of which include:

  • Giving only states the right to regulate hydraulic fracturing
  • Preventing the Environmental Protection Agency (EPA) from regulating carbon dioxide (CO2), methane, water vapor and nitrous oxide emissions
  • Repealing regulations on crude oil exports

Passage of the bill would be lauded by energy proponents, and while as a whole it would be no victory for traditional environmentalists, one of its provisions stands out, as it seeks to phase out engine-damaging ethanol fuel and create a higher standard for fuel economy. One can only truly understand the magnitude of improving fuel economy across the board by first looking at CO2 emissions by source:

Greenhouse Gas Emission

Transportation, which is second only to the electric power sector in terms of carbon dioxide emissions, could see significant long-term reduction in emissions while creating a surplus in disposable income for Americans and business owners. Notably, passage of the bill does not imply that American oil companies would be at a significant disadvantage due to the simple fact that it would open a whole new niche for American crude in the international economy.

Energy CO2 Emissions

Also striking is coal’s share of carbon dioxide emissions in the electric power industry — for coal’s actual share in energy generation as seen below, it seems almost unwarranted:

Electric Power Generation

Natural gas, while still not yet as widespread as coal, is very cost competitive, with liquid natural gas (LNG) at less than $10 per British thermal unit (Btu) while normal gas flirts with numbers around and below $5. Furthermore, if natural gas cannibalized market share from the coal sector — as is likely given the amount of continuing regulations on coal — it would help both the economy and the environment. Indeed, the Energy Information Administration asserts that for every million Btu generated, coal can release between 214 and 228 pounds of CO2 while natural gas creates almost half at 117 pounds per million Btu. While opponents of natural gas could cite its past price volatility, the past 5 years have been quite stable and the fracking boom is no reason to believe that the energy will be subject to much variance, at least not besides cyclical winter-heating and summer-cooling fluctuations, which coal can also be subject to. On the contrary, the market for coal is either becoming too expensive due to relentless regulation or disappearing altogether, especially abroad in developed countries.

The consumer free market response to any good or service in production is to demand quality proportional to whatever price level that consumer is willing and able to pay. With time, more countries are joining the ranks of developed nations who — like the U.S. — are characterizing themselves as more than willing to pay premiums on energy for better environmental quality. Additionally, natural gas has a history of matching or even beating domestic coal prices in the private sector, while mounting pressure on the public sector is slowly opening the international markets for both gas and oil.

Gas Savings Conundrum

Families planning road trips this summer, rejoice: According to a new estimate from the U.S. Energy Department, drivers can expect to see the lowest summer gasoline prices in about six years.

Before you head out to buy a gas-guzzling SUV, be forewarned: falling gas prices might not be as good for your pocketbooks — or the economy — as you might think. Low oil prices have slowed job growth, shut down drilling operations, and taken money out of the markets.

Texas, which produces 11 percent of all goods made in the United States, saw its slowest job growth since 2011 and lost 9,500 manufacturing jobs. Across the nation, the U.S. oil rig count, which is commonly used as a barometer for the oil industry, has lost 164 rigs over the past four weeks, adding onto the 276 rigs closed in February. In Texas alone, the oil industry lost 3,500 jobs in February and 4,300 in January. This 7,800 job loss is the sector’s biggest job loss since 2009.

While the industry struggles, many citizens have been celebrating. A poll run by the Iowa-based Principle Financial Group reports that while forty percent of U.S. residents are using the gas-induced savings to pay routine expenses, 54 percent are using the money to pay off debt or grow their savings accounts.

Fifty-four percent of the money consumers are no longer spending on gasoline is vanishing from the markets, along with manufacturing and oil industry jobs. These troubling conditions raise troubling questions: How can we encourage people to invest their gas savings back in the market? What can companies do to adapt to these continuing, low oil prices? How long can these low oil prices keep up, particularly if the Obama administration lifts oil-related sanctions against Iran?

NCPA Hydaulic Fracturing Current and Proposed Restriction/Ban Map

FrackingMapForWeb

The National Center for Policy Analysis created a national hydraulic fracturing ban and restriction map that shows all of the recent local and state bans, proposed bans and restrictions.

By enacting this these bans, states are forgoing much needed revenue from the production of critical energy resources. The following are some of the states that are forgoing revenue due to current hydraulic fracturing bans:

  • California
$1,034,471,000
  • Colorado
$11,836,700
  • Connecticut
$131,200
  • Delaware
$96,178,800

U.S. Energy Infrastructure Still Lacking

Energy booms, whether from oil or gas, will continue as both technology develops and more resources are discovered. However, each energy boom puts a strain on our existing energy infrastructure. For instance, oil can be transported by truck, ship, rail and pipeline. Pipeline is the safest and most reliable way to transport oil. Even with 185,000 miles of liquid petroleum pipeline across the United States, there is just not enough to transport the huge volume in the current boom. The lack of pipeline has increased transportation by rail and rail accidents during this time.oil_by_rail

  • The recent increase in transportation of oil by rail has increased the number of rail accidents.
  • In 2014, 70 percent of petroleum products and crude oil were shipped by pipeline, while 3 percent was shipped by rail.
  • A recent study by Fraser affirms their safety by reporting transporting oil by pipeline is 30 times less harmful than by train.

More and more oil is extracted every day and our storage capacity is overflowing. Two things need to happen that will greatly alleviate this situation. First, more pipelines are needed to transport all of this new oil. Second, all of this oil needs a place to go. Building more storage capacity only temporarily alleviates the problem. The crude oil export ban needs to be lifted so that the oil can get out of the over capacity storage units and enter the energy market.