by wp_sysadmin | Sep 30, 2019 | Home, News
How to Cut Emissions Without Wrecking the Economy
Christopher Crane and Ted Halstead, Wall Street Journal, September 22, 2019
It’s one thing to build an odd-bedfellow coalition around broad principles, quite another to refine the details of an actionable plan. That we have now done. The Council’s Bipartisan Roadmap will be released in the coming months, but we can preview here three of its salient features.
The first is our plan’s environmental ambition. It calls for a carbon fee starting at $40 a ton and increasing annually at 5% above inflation.
Second, the vast majority of Americans will be economic winners under our plan. According to the U.S. Treasury, 70% of American families—including the most vulnerable—would come out ahead, receiving more in carbon dividends than they pay in increased energy costs
Third, our plan’s environmental and social ambition is matched by equally strong pro-business and pro-competitiveness provisions.
Our take: “Unlike many climate plans, which require large increases in taxes, deficits or both, ours will “finance” the transition to a low-carbon future by incentivizing individual and corporate behavior and by leveraging the extensive resources of the private sector. It will also spur American innovation and let the market decide on the best low-carbon technologies and energy sources.” Markets, not mandates.
BP’s gas play
Craig Medred, Sept 28, 2019
BP is going big on liquified natural gas (LNG), only not in Alaska. Less than a month after the London-based petroleum giant announced it had found a way to extricate itself from its 49th state oil and gas holdings, it revealed a $9.61 billion, 18-year deal to sell LNG to South Korea’s state-run Korea Gas Corp (KOGAS).
A decade ago, Alaska was expected to become the major gas supplier for the U.S. Midwest. As envisioned by the state and federal governments, and the major Alaska oil producers, a pipeline would snake south for 1,700-miles from the edge of the Arctic Ocean through Alaska across Canada’s Yukon Territory and the province of British Columbia to connect to Canadian pipelines in the southern portion of the province of Alberta.
Neither national nor international markets look good for Alaska North Slope gas in the short term, though the Wall Street Journal noted some analysts are suggesting a growing future demand for gas if China “more aggressively turns to gas to fuel power plants in place of coal.”
Plagued by air pollution from coal-fired power plants, China would like to transition to gas and renewables, but that move is not a given in a country more worried about its economy than its air or increases in carbon dioxide emissions linked to global warming.
Related:
LNG Investments Hit Record $50 Billion in 2019
LNG Buyers Fret Over Feast-or-Famine Forecasts
by wp_sysadmin | Sep 27, 2019 | Home, News
How ‘Climate Week’ Completely Missed The Boat On Natural Gas
Jude Clemente, Forbes, September 26, 2019
As a cleaner, more flexible, and more reliable fuel that supports intermittent wind and solar power, Natural gas is a centerpiece of climate and energy strategies put forth, including under President Obama. Incredibly, Climate Week in New York City did not have a single “Energy Transition” event that focused on gas. We know that this is a terrible missed opportunity because the surge in U.S. gas use has the country leading the world in CO2 reduction.
Just ask Dr. Fatih Birol, Director of the International Energy Agency, the energy advisor of our 36 OECD nations: “In the last 10 years, the emissions reductions in the United States has been the largest in the history of energy.” During this time, U.S. gas demand has soared over 30%, and gas has extended its share of U.S. electricity from 21% to 38%. Unfortunately, Climate Week ignored the reality that IEA has gas demand actually rising under its Sustainable Development Scenario that is fully aligned with the global Paris Agreement for climate signed in December 2015.
Oil prices head for weekly loss as supply fears wane
Stephanie Kelly, Reuters, September 26, 2019
Oil prices steadied on Friday but were heading for a weekly loss on a faster-than-expected recovery in Saudi output, while investors also worried about global crude demand amid slowing Chinese economic growth. Sources told Reuters this week that Saudi Arabia had restored capacity to 11.3 million barrels per day. Saudi Aramco has yet to confirm it is fully back online.
From the Daily on Energy:
FERC AND UNIVERSITY OF KENTUCKY PARTNER ON FORUM TO HELP COAL WORKERS: The Federal Energy Regulatory Commission is partnering with the University of Kentucky Center for Applied Energy Research on a forum to discuss challenges to workers caused by the transition of the energy system away from fossil fuels.
FERC Chairman Neil Chatterjee, a Republican from Kentucky, a coal state, announced Thursday the first ever “EnVision Forum” to take place October 21 with panel events focused on topics ranging from workforce impacts to the intersection of telecom and energy policies, to climate change, criminal justice, and water-related issues.
“We want to start some new conversations with new voices and create relationships and understanding among the range of interests that are affected by this energy transition,” Chatterjee said. “Launching the EnVision Forum in my home state of Kentucky, where we are seeing a wave of societal challenges due to the closure of coal plants and mines, was the logical first step for us to take.”
The forum, held at the University of Kentucky, includes a diverse set of speakers, most notably, coal executive and President Trump donor Bob Murray, Deputy Energy Secretary Dan Brouillette, and Democratic Senator Sheldon Whitehouse — a fossil fuel industry critic.
by wp_sysadmin | Sep 26, 2019 | Home, News
New Colorado Oil & Gas Law Already Impacting Industry
Shaun Boyd, Denver CBS Local, September 25, 2019
Climate activists demonstrated outside a hearing where the Colorado Oil and Gas Conservation Commission is implementing a new law that makes sweeping changes to how drilling is regulated. The industry is already feeling the impact of that law. Five months after the law took effect, drilling permits are down 60% from what they’ve averaged over the last decade, one operator has declared bankruptcy, and 10 local communities have passed moratoriums on new drilling.
Our Take: In only five months…Policy impacts investment! While in NM, where the industry is thriving: Oil industry group starts $1M fund for community projects.
Fracking Ban Rhetoric Might Appeal to Woke Left But It’s A Loser For America
Dan Eberhart, Forbes, September 23, 2019
With the 2020 presidential election around the corner, Democrat candidates are laying out what they hope is a winning platform on energy. Climate change is playing a leading role with both MSNBC and CNN hosting major climate forums. In their zeal to cater to the radical wing of the party’s base, many candidates – Elizabeth Warren, Bernie Sanders and Kamala Harris among them – are calling for a total ban on the use of hydraulic fracturing for oil and natural gas production on public and private lands. While a fracking ban might win some votes among environmental activists, it’s a guaranteed loser for America’s economy, energy security – and for efforts to reduce carbon emissions. Climate policies that reject the benefits of natural gas will do more harm than good Sure, casting the oil and gas industry in the role of climate villain resonates with the party’s woke activists. What it won’t do is reduce carbon emissions.
YK Delta tribal consortium withdraws support for Donlin Gold mine
Krysti Shallenberger, Alaska’s Energy Desk – Bethel, September 25, 2019
The Association of Village Council Presidents no longer supports the proposed Donlin Gold mine. The decision came after two hours of passionate debate Wednesday, during the organization’s annual convention. Delegates from the 56 tribes that AVCP represents overwhelmingly voted to withdraw a 2006 resolution supporting the mine, and then voted to pass a separate resolution that opposes it. There were forty-one delegates attending the convention.
Our Take: We hope that the Council will remain open to reversing this opposition. The economic opportunities for the region should not be underestimated and Donlin has proven to be a great partner in the region already – working responsibly and safely to advance the project and providing jobs and other benefits for the region.
by wp_sysadmin | Sep 25, 2019 | Home, News
How Seattle stakeholders put the brakes on the city’s proposed gas ban
Tom DiChristopher, S & P Global Market Intelligence, September 24, 2019
A diverse group of stakeholders succeeded in delaying a proposed natural gas ban in Seattle, showing how industry and labor groups are learning to push back against the sudden rise of municipal ordinances that prohibit gas for heating and cooking in new buildings. The effort halted the advance of legislation that took the Seattle business community by surprise when City Councilman Mike O’Brien unveiled it in early September. O’Brien had planned to advance the bill through the Sustainability and Transportation Committee on Sept. 17 and hold a full council vote Sept. 23. But O’Brien delayed the committee vote last week amid an outcry from labor unions, real estate groups, appliance manufacturers and retailers, and local gas utility Puget Sound Energy Inc. The stakeholders succeeded by turning the truncated timeline into a rallying call, arguing that lawmakers were rushing to the finish line without doing due diligence.
Our Take: An all too common theme – “ lawmakers had neither sought their input on the legislation nor produced adequate analysis on its potential impacts on ratepayers, their businesses, and electric and gas systems.” Fortunately, stakeholders outnumbered environmentalists in a recent meeting, forcing a delay in this harmful legislation.
U.S. Chamber to Re-Examine Climate Policy That Cost It Members
Jennifer A. Dlouhy, Bloomberg, September 24, 2019
A decade after companies fled the Chamber of Commerce over its reluctance to combat climate change, the nation’s biggest business lobbying group is taking a fresh look at the issue. The chamber on Tuesday announced the formation of a “task force on climate action,” meant to examine how the phenomenon is affecting member companies’ business decisions and how they are approaching climate policy. The open-ended initiative — modeled after a similar effort on data privacy — could spur a shift in the chamber’s approach to environmental policy. As the nation’s largest business trade association, with a nearly $200 million annual budget, the chamber’s approach to the issue carries weight in Washington. “The number of companies that are thinking about this and taking actions on their own has just grown tremendously in the past few years,” said Neil Bradley, the group’s executive vice president and chief policy officer. This new group could help the chamber in “getting to the bottom of a solution that ultimately works for the entirety of the business community.”
Our Take: Great move by the chamber!
Capturing VOCs Emissions – and Methane
Mark Green, API Energy Blog, September 24, 2019
A key factor in EPA’s recent decision not to directly regulate methane is the simple fact that existing regulation of emissions of volatile organic compounds (VOCs) associated with natural gas and oil production also reduces methane as a co-benefit. It might surprise some, but on this point current EPA officials are aligned with their agency predecessors under President Obama. As discussed here, EPA’s recently proposed New Source Performance Standards (NSPS) modifications – to reduce duplication with state programs and clarify regulatory compliance for industry – not only make sense, they could further lower methane and other emissions and protect the environment. Still, the decision was met with claims EPA was retreating from environmental protections. However, improving regulation and fostering greater clarity for working to comply with regulation is smart and promotes desired outcomes.
Our Take: Reducing regulations can be good: “while some keep pressing for separate methane regulation, those emissions are being reduced as a co-benefit of existing VOCs regulation, negating the need for another layer of government regulation.”
by wp_sysadmin | Sep 24, 2019 | Home, News
Save the Planet? Try Fossil Fuels First
Robert J. Bradley, Jr., Inside Sources, September 23, 2019
It’s time to panic, says Prince Charles, the heir to the British throne. The British royal fears that climate change could threaten our very existence unless the international community develops a sweeping plan to slash carbon-dioxide emissions. He recently warned, “the next 18 months will decide our ability to keep climate change to survivable levels.” Stateside, calls for a Green New Deal, premised on a looming climate crisis, have turned one of America’s two major political parties against all fossil fuels, even natural gas. But Democrats fail to mention that economic freedom, human ingenuity and affordable energy have done much to minimize the adverse effects of weather extremes and climate change. Climate-related deaths, in fact, have fallen 95 percent globally in the last century. And the United States has curbed carbon emissions by scaling up our reliance on natural gas. Global carbon-dioxide emissions have risen 50 percent in the last 30 years, but U.S. emissions hover near 30-year lows.
Our Take: While natural gas consumed by power plants rose 77 percent from 2005 to 2016, carbon emissions dropped almost 25 percent.
Democrat Slams Ocasio-Cortez’s Fracking Claim: ‘We Do Ourselves No Favors When We Ignore Science’
Jason Hopkins, The Daily Caller, September 23, 2019
- Alexandria Ocasio-Cortez visited a “fracking” site in Colorado and tweeted out a video that purported to show it was releasing toxic emissions.
- However, several hydraulic fracturing experts noted that no fracking was actually taking place at the rig, and that the camera was not showing emissions, but heat signatures.
- A Democratic politician tweeted back at Ocasio-Cortez, telling her that “we do ourselves no favors” when Democrats deny facts and science.
Our Take: We have yet to see this reported anywhere in the mainstream media.
Valdez and environmental law group both ask more time to comment on draft EIS
Larry Persily, Oil and Gas News Briefs, September 23, 2019
The city of Valdez, which wants to see the Alaska LNG terminal built in its community rather than Nikiski, and an environmental legal organization have filed separate requests with federal regulators asking additional time to comment on the draft environmental impact statement for the project. Unless the Federal Energy Regulatory Commission changes the deadline, public comments on the draft EIS are due Oct. 3. The 3,800-page environmental review was issued June 28, and FERC held public meetings Sept. 9-12 in eight communities across Alaska to accept comments on the draft. Valdez and Trustees for Alaska, an Anchorage-based environmental law group reviewing the EIS for several clients, asked in separate filings that FERC extend the comment deadline 30 days past the closing date or 30 days after the state project team submits the last of detailed information requested by FERC, whichever is later.
