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Mexico’s Energy Reform Is Set to Revitalise an Ailing Sector and Boost the Economy, IEA Report Says

Photo: Pixabay
Photo: Pixabay

Mexico’s wide-ranging energy reform, which began in 2013, is expected to reverse the country’s declining oil production, increase the share of renewables in the power sector, and slow the growth in carbon emissions, providing a solid foundation for robust economic growth in the coming decades, according to the International Energy Agency.

Mexico’s energy sector is being completely recast by the Reforma Energética. The reform ends the longstanding dominance of Petróleos Mexicanos (PEMEX) in oil and gas, and of the Comisión Federal de Electricidad (CFE) in the electricity sector, opening up key parts of the energy sector to new players, investment and technology.

As a result of this major effort, Mexico’s total oil production, which has been on a sharp decline in recent years, is projected to turn a corner around 2020 and then rise to 3.4 mb/d by 2040, up almost 1 mb/d from today. The increase comes in large part from new offshore developments, including deepwater drilling, and helps restore Mexico’s position as a major global oil producer and exporter.

These findings are in the Mexico Energy Outlook, part of the IEA’s World Energy Outlook (WEO) series, which examines the long-term impact of the Reforma Energética on the energy sector as well as its economic and environmental consequences.

The report also finds that Mexico’s innovative auction system provides a substantial boost to Mexico’s clean energy efforts in the power sector. More than half of the country’s new power generation capacity installed between now and 2040 is renewables-based, tapping Mexico’s large wind and solar resources. New investment in electricity is essential to meet rapid growth in electricity demand, and allows Mexico to reach its target of producing 35% of electricity from clean sources by 2024.

“This is not a reform, it’s a revolution on an unprecedented scale,” said Dr Fatih Birol, the executive director of the IEA. “This transformation touches every sector of the Mexican energy industry and goes well beyond. However, let’s not underestimate the task ahead. It is a huge undertaking and there will be challenges but the reform has made remarkable progress. The government’s path forward is the right one and the IEA stands ready to assist.”

The report comes a year after Mexico took the first steps in November 2015 to join the IEA. The accession of Mexico would be a major step forward for the IEA’s new “open door” policy and allows deeper cooperation in coming years.

“The Mexico Energy Outlook motivates us to continue in the path traced by the Energy Reform and to double our efforts,” expressed Pedro Joaquín Coldwell, Mexico’s Secretary of Energy. “The challenge for Mexico is to turn into reality the positive predictions presented by the IEA. The report includes some very convincing findings on what Mexico would have faced if the reform has never been enacted.”

Without these energy reforms, the report finds that oil production would be 1 mb/d lower in 2040, electricity costs would be higher, and household spending would be hit. Also, the cost to the economy would be substantial, reducing the size of Mexico’s GDP by 4% in 2040, resulting in a total economic loss of $1 trillion over the period of the outlook.

Source: iea.org

Urbanization: The Historical Cause of Low Oxygen Conditions in European Lakes

Photo: Pixabay
Photo: Pixabay

A new study shows that hypoxia, i.e. low oxygen conditions, in European lakes started in 1850, becoming more widespread after 1900, long before the use of chemical fertilizers and climate change. A Canadian and European research team has identified urban expansion as the reason for the low amounts of bioavailable oxygen in numerous European lakes in past centuries. Published in Proceedings of the National Academy of Sciences, the findings of this study directed by postdoctoral fellow Jean-Philippe Jenny and Professor Pierre Francus of INRS suggest that increased waste water pollution at the turn of the 20th century boosted the lakes’ biological productivity, which in turn led to a rise in oxygen consumption.

The researchers analyzed information such as climate, land use, and lake sediment data from more than 1,500 European watersheds. For the first time, they compared reconstructions of land occupancy and land use dynamics on a continental scale to their own data of oxygen depletion over the past 300 years. This allowed them to identify urban waste, primarily phosphorus, as the factor responsible for triggering hypoxia at the bottom of lakes starting at the beginning of the 20th century.

“Accurately identifying the source of the nutrient responsible for oxygen depletion was a real challenge because of the variations in environmental stress factors throughout the region and their interactions, as well as the reliability of long term data,” explains Professor Francus of the INRS Centre Eau Terre Environnement.

“Point and diffuse sources have always contributed to nutrient supplies in lakes, but at intensities that vary in time and space,” adds Jean-Philippe Jenny, now affiliated with the Max Planck Institute for Biogeochemistry in Germany. “Our results show that urban point sources of phosphorus are the dominant cause of eutrophication of European lakes during the Anthropocene.”

The researchers recognize, however, that during recent decades, diffuse sources have gradually become the major cause of fresh water eutrophication in developed countries with the increase in the use of chemical fertilizers and the elimination of point sources due to the installation of waste treatment plants.

“Despite the many cleanup initiatives in the 1980s, the deepest layers in the lakes we studied still are not being reoxygenated and the hypoxia persists. This illustrates the importance of studying historical land use and the need to put long-term strategies in place to maintain and restore water quality in lakes,” say the study’s authors.

Source: sciencedaily.com

Western Australia Must Embrace Dawn of Renewable Energy Era or Risk Being Left Behind

Photo-illustration: Pixabay
Photo-illustration: Pixabay

Last year the world’s governments finally got their act together on climate change, agreeing to limit global warming to well under two degrees. To meet this commitment, we need a rapid global transition to net zero greenhouse gas emissions. The fossil fuel age is over.

The new era, powered by renewable energy, will be swept in on a massive wave of investment. According to Beyond Zero Emissions’ report, Renewable Energy Superpower, the world will invest $US28tn in renewable energy and energy efficiency in the next 20 years.

But Western Australia risks being left behind. Here investors have poured more than $100bn into liquefied natural gas (LNG) over the past decade yet the state has little to show for it. Another $60bn is slated for LNG development, but with current low gas prices, the sense of that investment is questionable. Energy consumers fork out for coal-fired power that goes unused and endure endless debate about grid privatisation. Meanwhile Western Australia’s electricity-related emissions are rising, just as almost all other states are managing to reduce them.

The irony is that Western Australia should welcome the dawn of the renewable energy era. The state’s enormous resources of sunshine, wind and wave mean it could become a renewable energy superpower of the future. Our report shows how Australia’s world-beating renewable energy resources represent a huge economic opportunity. Incredibly the report shows that in Western Australia alone, there is enough wind and solar, available at competitive prices, to provide almost 9% of the world’s energy every year. In other words Western Australia has more renewable energy than fossil energy.

There are in fact signs of life in Western Australia. For example, Perth start-upPower Ledger is trialling software enabling neighbours to trade energy between homes – an Australian first. And Carnegie Wave Energy is conducting one of the world’s most successful wave energy projects, generating power for the naval base on Garden Island. Carnegie has recently won funding from the Australian Renewable Energy Agency (Arena) to help develop its CETO wave energy technology which could attract interest from around the world.

Opportunities in the renewable energy era extend beyond the energy sector. In a low carbon world, a cheap and plentiful supply of renewable energy will attract energy-intensive industries. With its abundant mineral resources, Western Australia could become the world-centre for zero carbon metals like steel and aluminium.

What can Western Australia do to seize this opportunity? Firstly, like the ACT, the government needs to set a target of 100% renewable electricity. Such a target will attract investment and stimulate development of local technologies that could be sold to the rest of the world. Secondly, the government should set up an innovation fund for the development and commercialisation of new energy solutions. With Arena’s funding slashed, it is vital that the Carnegies of the future are not thwarted by lack of investment.

The government should also call a halt to the expansion of the gas distribution network. There’s nothing gas does for us that electricity can’t do more efficiently. Government and business should work together to encourage the uptake of high-efficiency electric appliances such as hot water heat pumps. At the same time, electric transport should be promoted. BZE has shown that a complete transition to electric cars in 10 years is affordable, and would reduce dependence on foreign oil.

The reward for this type of forward-looking policy would be investment, jobs and a head-start in renewable energy era. Nature has given Western Australia all it needs to ride this wave. Now it just needs the vision.

Source: theguardian.com

World Bank Approves $1.8 Million Grant to Boost Chilean Geothermal Market

The World Bank Board has approved a US$1.8 million Clean Technology Fund grant to strengthen the Chilean Ministry of Energy’s capacity to further develop the country’s geothermal sector and improve its energy security.

The grant will contribute to Chile’s Energy Agenda and the Energy Policy 2050, which aims to boost the use of non-conventional renewable energy (NCRE) and reduce the cost of electricity.

World Bank on Oct. 12 said that the government of Chile has made a concerted effort to develop its nascent geothermal energy industry, but despite what appeared to be a promising start, a number of issues stymied exploration investments. The goal of the new funding is to resolve those issues and improve the geothermal energy market conditions.

“Developing geothermal technology allows Chile to meet its growing energy demand, provide energy security, in an environmentally sustainable manner, boost the country’s economic competitiveness, and promote investments in remote rural areas, where poverty is more concentrated,” Alberto Rodriguez, World Bank director for Bolivia, Chile, Ecuador, Peru and Venezuela, said in a statement.

The Ministry of Energy will be the lead implementation agency for the project, with support from the International Cooperation Agency of Chile within the Ministry of Foreign Relations. The grant has a four-year implementation period, World Bank said.

Source: renewableenergyworld.com

New Ways to Finance Cities

2016habitat_gihr_613px_widthThe international community has ended the global housing conference in Quito with the ratification of common guidelines for sustainable urban development in the form of the “New Urban Agenda.” KfW attended many of the conference’s events and presented its activities in cities and worked with other attendees from around the world to find solutions for rapid urbanization.

The aim of the “New Urban Agenda” is to serve as a guide for sustainable urbanization around the world. It stands alongside the international Sustainable Development Goals (SDGs), the global Climate Agreement and the Development Finance Agenda. Habitat’s Executive Director, Joan Clos, described the new agenda as an “important instrument for enabling national, sub-national and local agencies to achieve sustainable urban development”.

The 24-page agenda also references financial cooperation issues. For example, it explicitly refers to the importance of sustainable financing for the successful implementation of the agenda. The document also mentions residential property finance, urban transport, and the general provision of basic services to all city dwellers.

One of the ways that Germany is helping to implement the agenda is with a new initiative called the “Transformative Urban Mobility Initiative” (TUMI). As part of the initiative, the German Federal Ministry for Economic Cooperation and Development (BMZ) will increase its efforts to promote sustainable urban transport in the emerging economies and developing countries. KfW is playing a crucial part in implementing the initiative on behalf of the German Federal Government, as underscored by KfW Director Marc Engelhardt: “As a development bank, we are playing a very central role in TUMI. We already serve as a reliable partner for sustainable urban development in many different countries. We want to significantly expand our activities in the field of urban mobility in particular. I expect us to commit to new projects with a total volume of around one billion euros both this year and next.” These funds will mainly go towards public transport.

KfW as a municipal financier

Representatives of KfW were involved in a total of ten events at the conference: at the German stand, the UN pavilion, and various official side events including one held by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), which was opened by State Secretary Gunther Adler. At the event, KfW presented its activities in connection with the financing of municipalities: “We make crucial contributions and fill in gaps that are not covered by the commercial banks and other investors, both in Germany and in our partner countries,” added KfW Director Felix Klauda.

During the conference it was repeatedly made clear that many cities suffer from a chronic shortage of funds. Against this backdrop, in a discussion with representatives of municipalities in Mozambique, Senegal and Bangladesh, KfW Director Klaus Gihr stated “We have to find new ways of helping cities in developing countries with the financing of projects.” Although there are many of challenges to overcome, it is also clear that “Cities have to make better use of their own resources, and require access to additional funding. Development financiers can and must help them with this.”

At the German stand, KfW reported on projects in India, Bangladesh, and the Palestinian territories in several well-attended podium discussions with its partners. The bank also described its experiences in promoting energy-efficient buildings in Germany and India.

Source: kfw-entwicklungsbank.de

Energy Community Secretariat Establishes Dispute Resolution and Negotiation Centre

reA Dispute Resolution and Negotiation Centre was established today by the Secretariat. Its launch comes as a response to signals that the settlement alternatives currently available for energy disputes no longer respond to the needs of national authorities and stakeholders, in particular small and medium enterprises and consumers.

Arbitration and litigation proceedings tend to be lengthy, expensive and often fail to take into consideration the foremost prerequisites of stable energy markets, namely the necessity for integration, security of supply, investment, as well as interests of energy consumers and the environment. In the Secretariat’s view, such aims can be achieved while preserving the relation between the parties to the dispute by working together for a solution which is mutually acceptable, and not by lengthy adversarial proceedings.

The Centre will focus on negotiations and mediation of investor-state disputes and offer negotiation support to national authorities in their negotiations with private parties. The Centre also aims to facilitate the swift closure of dispute settlement cases under the Energy Community Treaty via tailor-made negotiation and mediation facilities.

The Centre is attached to the Legal Unit of the Secretariat and is chaired by Mr Dirk Buschle, the Head of the Legal Unit and Deputy Director of the Secretariat. The Secretariat, which has already facilitated negotiations in several high-profile investor-state disputes, will be supported by a group of distinguished individuals with experience in the areas covered by the Centre.

In all cases, the services provided by the Secretariat will be free of charge. Procedural rules will be adopted shortly and published on the Energy Community’s website.

Source: energy-community.org

Victorian Government to Boost Solar Energy Tariffs from July 2017

Photo: Pixabay
Photo-illustration: Pixabay

Victorians with solar panels will be compensated for reducing greenhouse gas emissions in a planned reward scheme set to increase power costs for other households.

Tens of thousands of rooftop solar homes on minimum feed-in tariffs will reap more generous payments, including a new environment benefit bonus, for generating surplus electricity fed back into the grid.

Australian Energy Council chief Matthew Warren warned non-solar households that had already forked out for overly generous subsidies for a decade, would be further penalised.

Energy Minister Lily D’Ambrosio said the planned changes from July next year would allow renewable energy feed-in tariffs to be set in a fairer way, and reward “environmental value”.

“Victorians should be fairly compensated for the power they generate — plain and simple,” Ms D’Ambrosio said.

Opposition energy spokesman David Southwick said it was effectively a green tax, with retailers tipped to pass on millions of dollars in higher costs to other consumers.

The current 5c per kilowatt hour minimum feed-in tariff for 60,000 homes will be replaced with an average 6.5c-7c per kWh payment, earning them an estimated average $17 extra a year.

The flat rate will switch to a time-of-use system so retailers potentially pay up to 8c per kWh for excess power generated during the 3pm-9pm peak, and less at off-peak times.

“This is the first time the tariff has been increased in the last six years, rising by approximately 20 per cent,” Ms D’Ambrosio said.

The Government estimates the system will cost non-solar households about $2.50 each annually.

The Opposition’s Mr Southwick said: “It’s pretty much a new environment tax that will be subsidising a very small proportion of the community at the expense of those without solar panels.

“This comes at a time when Victorians are threatened with higher electricity prices in anticipation of the Hazelwood power station closure.”

The Essential Services Commission will determine actual rates in February next year.

About 90,000 premium 60c feed-in tariff customers retain that rate until 2024. Another 70,000 on standard and transitional tariffs will have payments dramatically cut when their schemes soon expire.

Solar Citizens consumer campaigner Reece Turner said solar energy ultimately pushed down electricity costs for the entire community, as less money needed to be spent on expensive poles and wires.

Source: heraldsun.com.au

Is Infiniti now Ready to Launch an Electric Car, After All?

Photo: Pixabay
Photo: Pixabay

Nissan’s strong commitment to electric cars has not, so far, extended to its Infiniti luxury brand. While the six-year-old Nissan Leaf is the bestselling electric car in history, the company has repeatedly postponed plans for an all-electric Infiniti model. But Infiniti’s on-again, off-again electric car may now be back on again.

Motivated by demand in China, Infiniti is once again considering an all-electric production model, Bloomberg reports. Any electric car from the brand would be designed “for China definitely,” and China would be the first market where it would be sold, Infiniti President Roland Krueger told Bloomberg during a recent interview in Hong Kong.

Last year, China overtook the U.S. to become the world’s largest market for plug-in electric cars.

The surge in sales was due in part to generous government incentives, which have created renewed interest among manufacturers in electric cars and hybrids tailored specifically for China. Once a decision is made, Infiniti could put an electric car on sale “very fast,” Krueger noted.

That’s because it could lean on parent Nissan and its alliance partner, French automaker Renault, for technical expertise. Infiniti took that approach with the LE concept it unveiled at 2012 New York Auto Show. The LE was a four-door sedan based on the current-generation Leaf.

It used a 100-kilowatt (134-horsepower) electric motor with 240 pound-feet of torque, and a 24-kilowatt-hour lithium-ion battery pack. It also featured wireless inductive charging, using a 50-kW DC charging pad that would be placed on a garage floor.

The LE received generally positive reviews at the time of its debut, but Infiniti executives vacillated about committing to a production version. If Infiniti were to revisit the LE, it could well opt for the underpinnings of the next-generation Leaf to make the car more competitive.

The next Leaf is expected to have a 200-mile range, which the Infiniti model would need to compete with the promised Tesla Model 3. But so far, Infiniti has shown more interest in improving the efficiency of internal-combustion powertrains than in developing electric ones.

At the 2016 Paris Motor Show, it unveiled a variable-compression engine, which can alter its compression ratio on the fly. Several automakers have experimented with these engines, but Infiniti will likely be the first to put one into production. It will arrive in 2018 in an unspecified vehicle as a 2.0-liter 4-cylinder turbocharged gasoline engine.

Source: greencarreports.com

Oil Prices Drop as Concerns over Global Fuel Glut Re-emerge

Photo: Pixabay
Photo: Pixabay

Oil prices fell more than a percent on Wednesday as a report showing a surge in U.S. crude stocks, rising production in Nigeria and squabbling among producers about a planned output cut re-ignited concerns about a global supply glut.

Brent crude futures were down 61 cents, or 1.20 percent, at $50.18 a barrel as of 0417 GMT. Prices hit $50.17 earlier in the session, the lowest in about three weeks. U.S. crude was at $49.27 per barrel, down 69 cents, or 1.38 percent, from its settlement on Tuesday.

“Crude is on the defensive this morning following American Petroleum Institute (API) inventory numbers showing a rise of 4.8 million barrels against an expected rise of 1.7 million,” said Jeffrey Halley, senior market analyst at brokerage OANDA in Singapore.

Official data by the Energy Information Administration (EIA) is due later on Wednesday.

“EIA crude inventory figures will be closely watched tonight. A large jump in inventories will no doubt see crude pushed lower again,” Halley said. The oil market is also keeping an eye on U.S. currency movements for trading cues.

The dollar hit a nine-month peak overnight against a basket of currencies, underpinned by expectations U.S. rates will rise by the year-end, making commodities priced in the greenback expensive for holders of other currencies.

“Technical resistance with Brent above $50 might (also) be driving some activity,” said Michael McCarthy, chief market strategist at Sydney’s CMC Markets.

According to a Reuters market analyst, Brent could drop further to $49.67, the next support level.

Traders said squabbles within the Organization of the Petroleum Exporting Countries (OPEC) about a planned output cut later this year were weighing on oil markets too.

Other OPEC-members, including Libya and Nigeria, are likely to be exempt from cutting production, while Iran and Venezuela and Indonesia are also unlikely to reduce output.

Royal Dutch Shell has resumed crude exports from the Forcados terminal in Nigeria’s restive Niger Delta following repairs after a militant attack, the Nigerian presidency said late on Tuesday.

Unless non-OPEC production giant Russia joins the effort, that leaves the onus of a potential cut with Arab producers in the Middle East like Saudi Arabia, Kuwait and the United Arab Emirates (UAE).

Source: reuters.com

Renewables Overtake Coal as World’s Largest Source of Electricity Capacity

Foto: Pixabay
Photo: Pixabay

According to the International Energy Agency (IEA), total clean power capacity increased by 153 gigawatts, overtaking coal for the first time.

“We are witnessing a transformation of global power markets led by renewables and, as is the case with other fields, the center of gravity for renewable growth is moving to emerging markets,” Dr. Fatih Birol, the IEA’s executive director, said.

The agency also raised its five-year forecast for renewable energy by 13 percent and now expects renewables to be 42 percent of global energy capacity by 2021.

Source: ecowatch.com

Nepal, Bangladesh Agree to Build More Than 1,600 MW of Pumped-Storage Hydropower

Foto-ilustracija: Pixabay
Photo: Pixabay

The governments of Nepal and Bangladesh have signed an agreement to build two pumped-storage hydropower plants with a total capacity of more than 1,600 MW in Nepal, according to the Kathmandu Post.

The agreement was signed Oct. 16 by Nepal Commerce Minister Romi Gauchan Thakali and Bangladesh Commerce Minister Tofail Ahmed. The projects are 1,110- MW Sunkoshi II and 536-MW Sunkoski III, both on the Sunkoshi River in central Nepal.

The countries will develop the projects under the Bangladesh, Bhutan, India, Nepal (BBIN) initiative the four countries signed to facilitate regional trade and business. Electricity produced will be exported to Bangladesh via India through the BBIN economic corridor.

The Department of Electricity Development assumed the responsibility of conducting feasibility studies on both projects. If the projects proceed, they will be developed as the first pumped-storage facilities in the country. Water will be pumped from the reservoir of Sunkoshi III to Sunkoshi II.

Other projects on the Sunkoshi River include 2.6-MW Sunkoshi Small and 10-MW Sunkoshi.

Source: renewableenergyworld.com

AUTOBEST 2016 Awards for Opel Ampera-e and Opel Group

Photo: Pixabay
Photo: Pixabay

Opel has been very successful at the 2016 AUTOBEST Awards. The Rüsselsheim-based carmaker took home trophies in two categories. The expert AUTOBEST jury, consisting of independent journalists from 31 European countries, voted the Ampera-e ECOBEST 2016. The revolutionary electric car with the exceptional range beat stiff competition by providing the “right answer for shaping the future of electro-mobility in Europe”. Furthermore, the jury recognized “Opel’s successful turnaround under the leadership of Dr. Karl-Thomas Neumann”. The jury continued to state that Opel’s credo of “German precision meets sculptural artistry” can be applied to the models and the company alike. The result is that the Opel Group has been named COMPANYBEST 2016.

“We are very proud to receive these prestigious awards,” said Opel Group CEO Dr. Karl-Thomas Neumann. “It shows that our models but also we as a company and the brand can convince people. So far, we have grown on 18 markets this year – that is only possible if you have a good team and the right products. The success of our bestseller, the Astra, and the groundbreaking technology of the new Opel Ampera-e are only two examples of our comprehensive model offensive.”

The Opel Ampera-e is exemplary for Opel’s ability to innovate. It is revolutionizing electro-mobility. With its range of over 500 kilometers (electric range, measured in the New European Driving Cycle in km: > 500 km, provisional figure), the electric car boasts at least 100 km more than its nearest segment rival currently on the road. In addition, the Ampera-e also offers a lot of driving pleasure and the feistiness of a sportscar. The performance of the electric motor is equivalent to 150 kW/204 hp (PS) and the new electric car accelerates from 0 to 50 km/h in 3.2 seconds. And as the large, 60 kWh capacity batteries are cleverly integrated in the underbody, the car also offers ample space for five passengers and a trunk with the load capacity of a five-door compact class car. Further highlights include Opel-typical outstanding digital connectivity thanks to OnStar and smartphone projection.

Opel is seamlessly continuing its AUTOBEST successes of last year with the two latest awards. In 2015, the jury presented Opel with the SAFETYBEST award for the IntelliLux LED® matrix light, previously the Opel Corsa was voted Best Buy Car of Europe for 2015.

Source: media.opel.com

More Northeast Natural Gas Pipeline Capacity Brings Questions

Photo: Pixabay
Photo: Pixabay

Led by the surge in Appalachia’s Marcellus and Utica plays, U.S. natural gas production has increased over 50% since 2005 and related infrastructure to move the gas has become short. This is really not just an issue for the U.S. but for the world: the Northeast shale gas boom is making U.S. natural gas a global commodity. Combined, Pennsylvania, Ohio, and West Virginia have rapidly evolved from producing 2.5% of U.S. gas in 2005 to nearly 30% today.

As Northeast supplies are wanted by many markets, the entire U.S. gas industry is being flipped from its decades-old way of operating, which was basically west-to-east and south-to-north. The industry has thus needed to re-learn receipt points and flows as the whole way of operations is transforming, a change that is being further affected by regulatory and social changes, such as the climate change-driven anti-fossil fuel movement. Not exactly a small problem.

The Northeast is still a highly constrained gas market and much of the region doesn’t have access to the local gas surge because there aren’t enough pipelines to take the gas away to markets. In fact, combined with low prices, this lack of infrastructure often has companies in the region curtailing gas production because there’s no way to move the gas out. Cabot Oil & Gas, which has been ranked as the 2nd biggest PA Marcellus producer (here), had to curtail 75 Bcf in 2015, or enough gas to heat more than 1.1 million homes for a year.

New England in particular has suffered and is easily the highest priced gas and power market in the country, with respective rates of 45% and 55% higher than the national average. Natural gas is promoted as a way to reduce New England’s over reliance on heating oil and oil-based power generation, the latter averaging a whopping 16.2 GWh/day in Winter 2014. When gas demand rises in New England, a lack of pipelines means pricer LNG imports from as far away as Yemen. Remember that residential heating gets priority over gas needed for utilities.

The “Not in My Backyard” obstacle is very strong in the Northeast. One problem has been that the Northeast is a relatively new area of major gas production, so residents aren’t used to the infrastructure required to produce more, unlike, say, Texans or Oklahomans. Moreover, the Northeast is generally more environmentally conscious and has a higher population density, which makes it tougher to lay pipelines.

This isn’t welcome news for an oil and gas industry already caught in a historically low price environment that is reducing revenues and making projects more difficult. We have seen gas infrastructure and pipeline projects delayed, denied, or cancelled that are worth billions of dollars, perhaps the largest being the $1 billion Constitution Pipelined headed up by Williams and Cabot. Anti-pipeline groups stress that combating climate change should simply focus on ramping up renewables, storage, energy efficiency, and other demand-side management programs.

Regulatory wise, FERC is the main permitting agency for interstate pipeline projects and is an independent actor that regulates the transmission of gas, electricity, and oil. Particularly in environmental matters, projects require certain state (and sometimes local) permits.

Source: forbes.com

What the Ancient Carbon Dioxide Record May Mean for Future Climate Change

Photo-illustration: Pixabay
Photo: Pixabay

The last time Earth experienced both ice sheets and carbon dioxide levels within the range predicted for this century was a period of major sea level rise, melting ice sheets and upheaval of tropical forests.

The repeated restructuring of tropical forests at the time played a major role in driving climate cycles between cooler and warmer periods, according to a study led by the University of California, Davis and published today in the journal Nature Geoscience.

Using fossilized leaves and soil-formed minerals, the international team of researchers reconstructed the ancient atmospheric carbon dioxide record from 330 to 260 million years ago, when ice last covered Earth’s polar regions and large rainforests expanded throughout the tropics, leaving as their signature the world’s coal resources.

The team’s deep-time reconstruction reveals previously unknown fluctuations of atmospheric carbon dioxide at levels projected for the 21st century and highlights the potential impact the loss of tropical forests can have on climate.

“We show that climate change not only impacts plants but that plants’ responses to climate can in turn impact climate change itself, making for amplified and in many cases unpredictable outcomes,” said lead author Isabel Montañez, a Chancellor’s Leadership Professor with UC Davis Department of Earth and Planetary Science. “Most of our estimates for future carbon dioxide levels and climate do not fully take into consideration the various feedbacks involving forests, so current projections likely underestimate the magnitude of carbon dioxide flux to the atmosphere.”

Similarly to how oceans have served as the primary carbon sink in the recent past, tropical forests 300 million years ago stored massive amounts of carbon dioxide during these ancient glacial periods. The study indicates that repeated shifts in tropical forests in response to climate change were enough to account for the 100 to 300 parts per million changes in carbon dioxide estimated during the climate cycles of the period.

While plant biologists have been studying how different trees and crops respond to increasing carbon dioxide levels, this study is one of the first to show that when plants change the way they function as CO2 rises or falls, it can have major impact, even to the point of extinction.

“We see great resilience in vegetation to climatic changes, millions of years of stable composition and structure despite glacial-interglacial cycles,” said co-author William DiMichele, a paleobiologist with the Smithsonian Institution. “But we’ve come to understand that there are thresholds that, when crossed, can be accompanied by rapid and irreversible biological change.”

Co-leading author Jenny McElwain, professor of paleobiology at University College in Dublin, Ireland, said the study indicates that shifts in atmospheric carbon dioxide impacted plant groups differently.

“The forest giants of the period were hit particularly hard because they were the most inefficient of all the plants around at the time, likely losing water like open hose pipes” McElwain said. “Their forest competitors, like tree ferns, were able to outcompete them as the climate dried.”

Over the past million years, atmospheric carbon dioxide has been generally low and fluctuated predictably within a window of 200 to 300 ppm. This, the researchers explain, has sustained the current icehouse — a time marked by continental ice at the polar regions — under which humans have evolved. This trend has been abruptly interrupted by the pronounced rise of carbon dioxide over the past 100 years to the current level of 401 ppm — one not seen on Earth for at least the past 3.5 million years.

The current unprecedented rate of rising atmospheric CO2 raises concerns about melting ice sheets, rising sea level, major climate change, and biodiversity loss — all of which were evident more than 300 million years, the only other time in Earth’s history when high CO2 accompanied ice at the polar regions.

Source: sciencedaily.com

Environmental Group Calls for Electric Car Infrastructure

Photo: Pixabay
Photo: Pixabay

Members of environmental groups and electric car owners gathered at The Peacock Inn in Princeton on Monday to call for increased electric car infrastructure in New Jersey.

They also touted a study with 50 steps toward a carbon-free transportation system.

The findings are especially important for the state as transportation is responsible for 53 percent of New Jersey’s global warming emissions, according to the event’s organizer, Environment New Jersey — a citizen-based advocacy project.

“America’s transportation system is climate enemy number one,” Marc Katronesky of Environment New Jersey said. “There is hope however.”

“First and foremost… public funding should prioritize low-carbon efficient transit, and secondly, polluting vehicles and polluting fuels should be phased out with higher vehicle standards.”

Environment New Jersey distilled the 50 steps further, saying that some key points include:
-Make addressing global warming a strategic goal
-Stop doing further environmental harm
-Get the most out infrastructure that we already have
-Level the playing field for shared mobility
-Harness the power of markets
-Hasten the introduction of low carbon vehicles
-Hasten the introduction of low carbon fuels
-Reform the transportation bureaucracy

Speakers recapped some of the reasons the state is lagging in electric car infrastructure and then spoke about the future of electric cars and the necessary charging stations.

“More than a decade ago, the car industry actively lobbied against clean car legislation by lampooning electric cars,” Doug O’Malley of Environment New Jersey said. “They literally drove an electric-powered golf cart around the statehouse to say that ‘these are the options you’ll have if electric cars come to New Jersey.'”

“If this is an electric golf cart sign me up,” O’Malley said while gesturing to a 2009 Tesla Roadster behind him.

Gov. Chris Christie’s administration’s one-year stoppage on Tesla sales in New Jersey showrooms also earned a mention for the slump.

“(Electric cars) are without a doubt an evolution of the old internal combustion engine car,” Michael Thwaite, president of Plug in America, said. “That vehicle took over from the horse and buggy and it’s done us proud for a hundred years, but what we’re looking at today is… the same kind of evolution.”

Thwaite says that soon electric cars will become as ubiquitous as smartphones and there should be no delay in building support infrastructure. “The technology in the (battery) cells has doubled since I owned my car in the last seven years,” Thwaite said, pointing out the accelerated advances.

“We, in some ways, have a chicken and egg problem where drivers say ‘there’s not enough places for me to charge’ and then dealers say ‘there’s not enough demand for these vehicles,'” O’Malley said.

“We need the charging infrastructure to catch up,” O’Malley said. “There are only, roughly, 400 hundred charging stations in the state right now.”
Electric car drivers on hand touted the gas-savings and the benefits of installing solar panels on their homes to charge their cars for free.

One electric car owner, Tom Moloughney, says that after buying an electric car for himself, he began to install charging stations on his shopping center properties.

“To get on the right track New Jersey will need to reevaluate how it is implementing its transit system,” Katronesky said.

Source: nj.com

World Bank Ups Its 2017 Oil Price Forecast To $55

Foto: Pixabay
Photo: Pixabay

The World Bank has just upped its oil price forecast for 2017, saying it now expects average prices to be US$55 a barrel over the next year. That’s US$2 more than its earlier forecast, which is a reflection that at least some shred of optimism is returning to the oil market.

In late September, Saudi Arabia managed to persuade its OPEC co-members to consider a reduction in their combined crude oil output in a bid to, as they called it, restore balance to the oil markets. Balance, in this context, invariably means higher prices that would help Saudi Arabia – and other oil-dependent producers – plug growing budget deficits, and help Venezuela and Nigeria stave off a complete economic collapse.

As soon as the news about a general mood of agreement among OPEC members hit the global news flows, crude oil shot up, passing the US$50-barrier and staying there for almost a month now, which may well be the longest over-US$50 streak this year. As optimism returns to the market, it spreads, apparently, to analysts, exactly as pessimism does when the pendulum swings the other way.

Early this year, when OPEC was pumping at full tilt and frackers refused to give up, oil started slipping to new lows. At the time, all the big names in commodity market analysis, including Goldman Sachs, Morgan Stanley, BofA, and Citigroup, warned that crude could really fall to US$20 a barrel. Those were pessimistic times indeed.

Fast forward a few months, and we get Goldman Sachs (to pick just one), revising its oil price forecast to a much cheerier US$45-50. A few months more, and a day after that OPEC meeting that gave oil bulls a much-needed adrenaline shot, Goldman’s analysts were playing it safe: WTI would hover around US$43 a barrel until the end of 2016, down from the earlier US$50 forecast, it said.

Everyone is playing it safe except for the bolder speculators, and with a very good reason. Just three days after the World Bank released its revised outlook – noting that the OPEC freeze is very uncertain – Iraq said it won’t be taking part in any freezes or production cuts. This could very well spell the end of OPEC negotiations, since Iraq is OPEC’s second-largest producer after Saudi Arabia, and has been pumping a daily average of 4.7 million barrels, according to the State Oil Marketing Company’s head Falah al-Amri.

Add to this the vague comments on the agreement from Russia’s Energy Minister Alexander Novak and Saudi’s Oil Minister Khalid al-Falih, and the chances of a freeze agreement actually getting sealed plunge closer to zero.

Source: oilprice.com