An Ignoble Experiment

2. Startling prediction: U.S. will never run out of oil and gas

Delaware lawmakers have passed landmark legislation that will bring the state into parity with other states in the region by allowing its electric and gas utilities to provide energy efficiency programs to their customers and provide a major boost to the state's efforts to reach its goals under a 2009-mandated Energy Efficiency Resource Standard (EERS), according to Northeast Energy Efficiency Partnerships (NEEP). NEEP is a non-profit organization designated by the U.S. Department of Energy as the Regional Energy Efficiency Organization (REEO) serving the Northeast and Mid-Atlantic states. The governor is expect to sign the bill this week.

Credit: NEEP

Senate Bill 150, which passed the Senate by a 21-0 vote and the House by a 37-4 vote, will expand cost-effective energy programs under the direction of an advisory council composed of members of the state's Sustainable Energy Utility (SEU) and other stakeholders. The SEU, which until now has been the main delivery agent for efficiency programs in Delaware, is directed to collaborate with electric and gas utilities on a common marketing platform for the programs.

Providing a framework to both fund and broaden energy efficiency programs in Delaware will help bring the state in line with others in the Northeast and Mid-Atlantic region which have recognized energy efficiency as their first-order energy resource.

"For the past three years, we've been working with allies to help policymakers understand the significant benefits that ramping up energy efficiency can bring to Delaware's economy and environment, and that for its full potential to be realized -- a comprehensive, considered and adequately-funded approach needs to be taken," said Natalie Treat, senior manager for public policy outreach at NEEP.

Until now, the efficiency programs run by the SEU have only been funded by state grants realized as part of the Federal Recovery Act, or ARRA, as well as proceeds from the sale of carbon allowances due to the state's participation in the Regional Greenhouse Gas Initiative (RGGI). That has resulted in Delaware spending only $5.65 per capita on energy efficiency programs, as compared to an average of $50.36 among the other 12 states in the region that operate ratepayer-funded energy efficiency programs.

"This bill changes everything. When we look across the region and see the major energy-savings leading states are achieving through efficiency, we knew for sure that Delaware could harness those levels of same savings, but would need to commit to investing in efficiency as a first-order, least-cost resource to do it," Treat said. "Delaware is now poised to reap those same benefits on behalf of its residents and businesses, because, as has been evaluated and verified for decades now, cost-effective energy efficiency programs are a win-win-win, helping our economy, environment and energy system."

For more:
- visit this website

Read more about: Energy Efficiency
back to top

This week's sponsor is AFCEA Energy.

DOE, FERC, NNSA and more to speak at half-day symposium - Register Today.

By Barbara Vergetis Lundin

Comment |

3. Day-ahead natural gas prices continue their descent

"The U.S. will never run out of oil and natural gas. Never. Same goes for the rest of the world. Won't happen," according to Dallas-based oil and gas executive and author of "The Fracking Truth" Chris Faulkner.

Faulkner, who consults with governments and industry from the United States to Asia and Europe, has been a critic of the oil industry since the early days of fracking in Pennsylvania -- for hiding the ingredients in fracking fluids; failing to engage the public; and allowing the environmental movement to "demonize a technology that is turning the U.S. into an energy superpower after years under OPEC's thumb."

Nevertheless, he says the energy revolution is well underway and fracking is now the predominant practice in the industry.

"The revolution that's taking place in our own backyards – fracking -- is spreading around the globe. The energy boom has been the catalyst for enormous changes that are reinvigorating the U.S. economy, providing us with greater security, giving us greater control over our environment, and even helping rebuild America's stature in the eyes of the world," Faulkner said. "It's also fundamentally changing the global balance of power away from the Persian Gulf states and Russia. After Russia's actions in Crimea and now, with the situation heating up again in Iraq, it's more important than ever for the U.S. to fully develop its own resources as a buffer against shortages and price shocks."

In addition to fracking having unlocked enormous new sources of energy, huge strides in conservation and technology are making developed countries more energy efficient at such a rapid pace that the world's dependence on traditional hydrocarbon sources will decline sharply in the years ahead, Faulkner predicts.

As for his prediction of an endless supply of energy, Faulkner quotes a Saudi oil minister who, nearly 45 years ago, said, "The Stone Age didn't end for lack of stones, and the Oil Age will end long before the world runs out of oil."

For more:
- see this article

Read more about: Oil And Gas, Chris Faulkner
back to top

By Barbara Vergetis Lundin

Comment |

4. Industry divided over cap-and-trade fuel program bill

Day-ahead natural gas prices in the U.K. and continental Europe continued to fall in June after reaching multi-year lows in May, according to data from Platts.

In the U.K., prices were down 13 percent month over month and down 35 percent year over year, while the Dutch TTF -- continental Europe's most liquid natural gas trading hub -- were down 9 percent month over month and 34 percent year over year.

"The continued slide in U.K. spot gas prices came on the back of high storage levels and ample supplies, including the regular deliveries of liquefied natural gas from Qatar," said Alex Froley, Platts energy analyst. "Also, export potential for U.K. gas was hampered mid-month by a two-week outage of the U.K.-Belgium Interconnector pipeline."

Lower gas prices have been encouraging the use of natural gas-fired generation in the U.K. Gas-fired power plants consumed an average 48 million cubic meters per day in June 2014 -- up 14 percent from June 2013, and the highest total since February 2013.

Large additions of coal-fired capacity days have served to extend current oversupply with two coal-fired plants coming online recently. A 764 MW unit at RWE's new Hamm plant started commercial operation July 2, while EnBW's 912 MW RDK 8 plant at Karlsruhe began June 23.

New thermal plants, whether gas- or coal-fired, will struggle to make financial returns in the wholesale market at current price levels, according to utility officials.

In June, U.K. power market prices continued to go down -- 8 percent month over month and 23 percent year over year. Lower natural gas prices and higher wind power output have helped suppress U.K. spot prices this year -- at the same time the summer months are beginning to show the price effects of growth in solar capacity.

U.K. solar capacity has reached 4.5 GW, up from 2.7 GW at the end of 2013, according to the Solar Trade Association. On the longest day of the year, June 21, with 16 hours of daylight, solar would have met nearly 4 percent of total U.K. demand, the association said.

For more:
- see this report

Read more about: Platts, natural gas prices
back to top

By Barbara Vergetis Lundin

Comment |

5. San Antonio to become home to nation's largest desalination plant

Assemblymember Henry T. Perea (D-Fresno), in partnership with members from both houses, has introduced legislation through Assembly Bill (AB) 69, which would delay putting fuels under the cap-and-trade program until January 1, 2018.

Beginning January 1, 2015, greenhouse gas (GHG) emissions from transportation fuels are going to be subject to the California Air Resources Board (CARB) cap-and-trade program which some experts believe will cause an increase in fuel prices -- 16 to 76 cents more per gallon of gas by some estimates.

The January tax would create significant and unpredictable spikes in fuel prices at a time when Californians are struggling economically, according to the California Independent Oil Marketers Association (CIOMA), who support the bill.

But not everyone agrees with CIOMA's point of view. Certainly not the California League of Conservation Voters (CLCV).

"AB 32 is working and California voters support it. The law is spurring innovation and creating jobs. It's helping us transition to a clean and growing economy and, as we saw in the recently approved budget, it's providing significant new revenue for the hardest-hit communities in our state to address the effects of climate change," said Sarah Rose, CEO of the California League of Conservation Voters. "Putting a cap on greenhouse gas emissions from transportation fuels will reduce pollution from its largest source in the state. This is a critical step to reaching our clean air goals and a major incentive for innovators to create cleaner transportation fuels that strengthen our economy while further cleaning our air."

The Union of Concerned Scientists is equally against the bill.

"It is disappointing that some members of the Legislature are succumbing to oil company scare tactics, ignoring California's trailblazing efforts to reduce carbon pollution and the real-time economic benefits they are delivering to their constituents," said the Union of Concerned Scientists' California and Western States Director Adrienne Alvord. "Transportation fuels account for 40 percent of the state's global warming emissions. Delaying the inclusion fuels in the cap-and-trade program would delay the reductions in carbon emissions that Californians want."

For more:
- see this report

Read more about: AB 69, cap and trade program
back to top

By Barbara Vergetis Lundin

Comment |