By W. H. Luyties, editor OWOE. With the election of Donald Trump as president of the US and control of all 3 branches of the government in the hands of Republicans, who have historically been strong supporters of fossil fuel interests, one lightning rod topic has been the push to increase coal and oil production in the US. This has energized both proponents of fossil fuels, who see an opportunity to possibly save their industries (coal) or increase production (petroleum), and opponents, who fear the environmental consequences of such a change. But is this a real threat to the global move away from fossil fuels, or is it simply rhetoric to energize a political base? Continue reading The latest push for fossil fuels – rhetoric or reality? Part 1 – CoalPublished by Our World of Energy
There is no doubt that the practice of net metering for residential solar photovoltaic systems has been a key enabler of the rapid growth of rooftop solar generation in the United States (see OWOE: How does net metering encourage private investment in home solar systems?). But has it outlived it usefulness? Or, has it even become a barrier to greater renewable penetration into the marketplace?Published by Our World of Energy
Guest blog by S. A. Shelley
Revenue Trap: ” A focus on revenue at the expense of weakened strategy and reduced profits.”
Oil prices seeming to whipsaw back and forth, weekly, daily, even hourly is the result of many oil and options traders clearing trades at whatever slim profit they can eke out. Of course, multiply that slim profit by the huge volumes traded and well, Wall Street still makes a hefty profit whether oil is up or down.
Other folks are starting to talk about oil supply and demand hitting a new equilibrium, or that shale production has peaked. Fair enough. In fact, I agree that efforts to constrict oil supply are starting to have some effect. I doubt however that restricting oil supplies will be effective in the long run. OPEC claims that compliance with the production quotas is strong, but on the other hand, some OPEC members have recently vowed to opt out of the quotas and to even increase production. Don’t forget about some of the African members of OPEC who were free to pump and sell as much oil as they could. Continue reading It’s a Trap!Published by Our World of Energy
Almost a year and a half ago OWOE blogged “What about transportation?” in which we took a brief look at the challenges facing a renewable energy transformation of the transportation industry, which accounts for approximately 30% of US energy use. In what has been a relatively short period, the answer to that question has become much clearer. Let’s take a look at what’s happened since then.Published by Our World of Energy
Guest blog by S. A. Shelley Absolutely, the United States can become energy self-sufficient, but it is unlikely to become self-sufficient in oil production.
Since the end of last year and the beginning of this year, several governmental and intra- governmental bureaucracies, independent think-tanks of all sorts and large energy producing companies have issued annual energy outlooks in one form or another. I characterize them as “Business as Usual” (BP, Exxon, etc.), “Business is Changing” (Shell, Carbon Tracking Institute, etc.) and “Fanciful Delusion” (OPEC). In all forms these reports are interesting reading. Continue reading Can the United States become Energy Self-Sufficient?Published by Our World of Energy
The nuclear power industry in the United States has had a history of wild swings from optimism to pessimism to fatalism. After the first wave of over 100 nuclear reactors that were planned in the 1960’s and 1970’s was completed, there has been a span of 2 decades without a new reactor being built. Then, starting in the early 2000’s, a new feeling of optimism arose as the nuclear industry, electric utilities, the US government, and even some environmental organizations realized that nuclear power could be the solution to the world’s global warming problem. And with the high cost of fossil fuel (at a time before fracking technology drove natural gas prices to historic lows), most in the industry believed that new nuclear plants could be built quickly and be cost competitive with other new power sources. These plants would incorporate new technology and advanced safety features, would be governed under new streamlined government regulations to avoid costly design changes mid-construction, would apply lessons learned during construction of the earlier plants, and would have access to competitive financing with federal loan guarantees. This was considered the beginning of the “nuclear renaissance”. Between 2007 and 2009, 13 companies applied to the Nuclear Regulatory Commission (NRC) for construction and operating licenses to build 31 new nuclear power reactors in the US. Today, plans for virtually all of those reactors have been cancelled, and nuclear power generation reached a peak in 2010 and has since been declining (Figure 1).Published by Our World of Energy
Guest blog by S. A. Shelley Imagine a future where your choices for purchasing a new car include numerous options for electric vehicles (EV’s) and internal combustion vehicles (ICV’s). But competing with the typical federal or state subsidies for the EV’s are hefty rebate checks from OPEC or Russia for purchasing a fossil fuel burning ICV. That may sound crazy, but in today’s age of large supplies of easily produced shale oil, inexpensive renewable energy options, and changing societal demographics, it’s only a matter of time before the current oil glut results (see EIA figure below) in stranded oil resources that are too expensive to produce for many of the suppliers, drastically reduced supply-side control from oil producers, and a critical need for oil suppliers such as OPEC to find creative ways to stimulate demand.Published by Our World of Energy
Last month’s OWOE blog “Did the World Hit Peak Oil in 2015 and Nobody Noticed?” generated some interesting discussion. One follower raised a very good question regarding whether we have compared the fate of the oil industry with the fate of the coal industry in terms of the effect of oil and gas as disruptive technologies. Since it’s been some time since we touched on coal, now is an ideal time to use this question as a lead-in to the broader subject. The simple answer is “yes”, as the relatively recent rapid decline in coal production and usage has been a demand driven phenomenon caused by many of the same issues as we are seeing with coal. If we look only at the US, peak coal occurred in 2008, as illustrated in this figure from the Energy Information Administration (EIA).Published by Our World of Energy
Guest blog by S. A. Shelley The concept of “peak oil”, i.e., the time when production of oil hits its maximum and then declines, has been postulated for decades, but, as time passes, industry experts push the peak oil date further and further into the future. However, the events of the past 2 years since the collapse of the price of oil raise an interesting question: “Did we experience peak oil in 2015, and nobody noticed?” As someone who’s had a career in the oil and gas industry and who observes and tries to understand both the successes and failures of that industry, I postulate that we might have passed such a crucial point in history. Continue reading Did the World Hit “Peak Oil” in 2015 and Nobody Noticed?Published by Our World of Energy
Over the past several months there’s been interesting activity related to a number of key issues that we’ve been following at OWOE. We’d like to share activity related to two of those issues in this blog.
- Environmental Activists 2 – the Environment 0