Oilsands and Fossil Fuels Receive Major Blow Due to Paris Agreement

LONDON — Europe’s largest bank HSBC said on Friday it would mostly stop funding new coal power plants, oilsands and arctic drilling, becoming the latest in a long line of investors to shun the fossil fuels.

Other large banks such as ING and BNP Paribas have made similar pledges in recent months as investors have mounted pressure to make sure bank’s actions align with the Paris Agreement, a global pact to limit greenhouse gas emissions and curb rising temperatures.

“We recognize the need to reduce emissions rapidly to achieve the target set in the 2015 Paris Agreement… and our responsibility to support the communities in which we operate,” Daniel Klier, group head of strategy and global head of sustainable finance, said in a statement.

via Europe’s biggest bank HSBC says it will no longer finance oilsands projects — Financial Post

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Why Oil and Pipelines Are a Bad Deal For Canadians – Kinder Morgan/Oil Sands

Let’s get straight to the point. Canadians are getting ripped off. We pay the among the highest prices in the world for our own plentiful resources. Meanwhile we ship it to the US and abroad. This is in clear conflict with stewardship goals of our resources, environment and our collective future. What gives Mr. Trudeau?

Canada taxes its oil and gas companies at a fraction of the rate they are taxed abroad, including by countries ranked among the world’s most corrupt, according to an analysis of public data by the Guardian.

The low rate that oil companies pay in Canada represents billions of dollars in potential revenue lost, which an industry expert who looked at the data says is a worrying sign that the country may be “a kind of tax haven for our own companies.”

The countries where oil companies paid higher rates of taxes, royalties and fees per barrel in 2016 include Nigeria, Indonesia, Ivory Coast and the UK.

“I think it will come as a surprise to most Canadians, including a lot of politicians, that Canada is giving oil companies a cut-rate deal relative to other countries,” said Keith Stewart, an energy analyst with Greenpeace.

Companies like Chevron Canada paid almost three times as much to Nigeria and almost seven times as much to Indonesia as it did to Canadian, provincial and municipal governments.

Chevron used to run its Nigeria and Indonesia projects out of the U.S., but after allegations that they evaded billions in taxes, their operations were moved to Canada.

According to data collected by the Guardian, Suncor also paid six times more taxes to the UK, and Canadian Natural Resources Limited (CNRL) paid almost four times more to Ivory Coast. (1)

Image result for oilsands

Figure 1. Taken from: Alberta First Nation presents evidence against Teck’s exploratory drilling for oil sands mine (2)

CALGARY – British Columbia’s government wants to restrict shipments of oilsands crude in pipelines and on railways cars in the province through a series of proposed new rules that is set to create additional uncertainty for Kinder Morgan Canada’s $7.4-billion Trans Mountain pipeline expansion.

The proposed rules also open B.C. up to jurisdictional challenges and have already exacerbated a spat with Alberta Premier Rachel Notley, who called the proposals “both illegal and unconstitutional.”

B.C. Environment and Climate Change Strategy Minister George Heyman announced Tuesday rules to limit “the increase of diluted bitumen transportation until the behaviour of spilled bitumen can be better understood and there is certainty regarding the ability to adequately mitigate spills.”

To that end, B.C. will establish an independent scientific advisory panel to make recommendations on if and how heavy oils can be safely transported and, if spilled, cleaned up.

Tuesday’s announcement did not specifically mention Kinder Morgan’s Trans Mountain expansion, which will boost the shipments of oil from Alberta to Burnaby, B.C. from 300,000 barrels per day to 890,000 bpd, but the B.C. NDP had promised to block the pipeline’s construction during an election campaign last year.

In an interview with the Financial Post, Heyman said B.C.’s Environmental Management Act “gives us the right, in addition to our responsibility, to defend B.C.’s vulnerable coastline, our inland waterways, our economic and environmental interests and that’s what British Columbians expect us to do.” (3)

Justin Trudeau, Bill Nye

References:

  1. revealed-oil-giants-pay-billions-less-tax-in-canada-than-abroad
  2. athabasca-chipewyan-first-nation-present-evidence-against-tecks-drilling-oil-sands-mine 
  3. b-c-proposes-new-rules-to-restrict-oilsands-exports-in-fresh-setback-for-trans-mountain-pipeline

Transitioning Oil & Gas Wells to Renewable Geothermal Energy

Infinity Turbine 2016 ROT IT50

Figure 1:  Radial Outflow Turbine Generator – Organic Rankine Cycle – ORC Turbine (1)

Existing oil and gas wells offer access to untapped sources of heat which can be converted to electricity or used for other energy intensive purposes.  This includes many abandoned wells, which can be reactivated as power sources.  These wells, in many cases “stranded assets” have been drilled, explored, and have roads built for access.  This makes re-utilization of existing infrastructure cost-effective while minimizing harm to the environment associated with exploration.

In a recently published article in Alberta Oil, an oil & gas industry magazine they point out many of the benefits of converting existing and abandoned wells to geothermal energy.

A recent Continental Resources-University of North Dakota project in the Williston Basin is producing 250 kW of power from two water source wells. The units fit into two shipping containers, and costs US$250,000. This type of micro-generation is prospective in Alberta, and a handful of areas also have potential for multi-MW baseload power production.

In addition to producing power, we can use heat for farming, greenhouses, pasteurization, vegetable drying, brewing and curing engineered hardwood. Imagine what Alberta’s famously innovative farmers and landowners would accomplish if they were given the option to use heat produced from old wells on their properties. Northern communities, where a great many oil and gas wells are drilled nearby, can perhaps reap the most benefits of all. Geothermal can reduce reliance on diesel fuel, and provide food security via wellhead-sourced, geothermally heated, local greenhouse produce. (2)

Water can be recirculated by pumps to extract heat from the earth, and through heat exchangers be used as a source of energy for various forms of machines designed to convert low grade waste heat into electricity.  The Stirling Cycle engine is one such mechanical device which can be operated with low grade heat.  However recent developments in the Organic Rankine Cycle (ORC) engine seem to hold the greatest promise for conversion of heat to electricity in these installations.

In a “boom or bust” industry subject to the cycles of supply and demand coupling a new source of renewable energy to resource extraction makes sense on many fronts.  It could be an economic stimulus not only to the province of Alberta, but throughout the world where oil and gas infrastructure exists, offering new jobs and alternative local power sources readily available.

References:

(1)  http://www.infinityturbine.com/

(2)  http://www.albertaoilmagazine.com/2016/10/geothermal-industry-wants-abandoned-wells/

Related Blog Posts:

  1. https://duanetilden.com/2016/01/14/alberta-energy-production-and-a-renewable-future/
  2. https://duanetilden.com/2014/12/21/renewable-geothermal-power-with-oil-and-gas-coproduction-technology-may-be-feasible/
  3. https://duanetilden.com/2015/07/25/a-new-era-for-geothermal-energy-in-alberta/
  4. https://duanetilden.com/2015/07/27/oil-well-waste-water-used-to-generate-geothermal-power/
  5. https://duanetilden.com/2013/10/29/supercritical-co2-refines-cogeneration-for-industry/

Low Coal Prices Fuel Demand as Trading Volumes Soar 46%

coal-trains

Image Source:  Power Plant Men

Coal leads surge in European energy exchange trading in first half 2016 -study

Wholesale trading of coal on the exchanges soared 46 percent from a year earlier to 3.5 billion tonnes

FRANKFURT: Coal lead a surge in trading volumes on west European energy exchanges in the first half of this year as traders took advantage of low commodity prices, research company Prospex said on Monday.

Wholesale trading of coal on the exchanges soared 46 percent from a year earlier to 3.5 billion tonnes, according to Prospex.

“Low coal prices mean a fixed amount of trading capital will buy higher volumes than it did in the past,” said Prospex Research director Ben Tait.

“In fact, many traders seeking to hit absolute profit targets have indeed ramped up volumes,” he said.

Prospex’s data covers volumes on what traders call the paper market, where two parties agree deals in the over-the-counter (OTC) market and have them cleared by an exchange.

In coal, this type of business accounts for 98 percent of volumes changing hands in Europe.

Prospex said commodity trading houses remain keen on coal, with some holding extensive physical coal interests that play out on the dominant Amsterdam-Rotterdam-Antwerp (ARA) region of ports that serve Europe’s power stations and steelmakers with raw material.  Read more:  Full Article

 

Documentary on Fracking – Shattered Ground Hosted by David Suzuki

The Nature of Things – Shattered Ground

fracking documentary

Sourced through Scoop.it from: www.youtube.com

ShatteredGround

image credit:  (2)

“[…] “Fracking”, or Hydraulic Fracturing, is a new technology that has opened up immense resources of natural gas buried in deep shale beds. The process involves injection of highly-pressurized water, sand and chemicals to shatter underground layers of shale and extract previously inaccessible natural gas.
But the process and its sudden spread across the North American landscape, has become an incredibly divisive issue, ripping apart communities and even families. The backlash to the gas industry is unprecedented, with some countries, Canadian provinces and American states adopting fracking bans and moratoriums. […] “(1)

(1) http://www.cbc.ca/natureofthings/episodes/shattered-ground 

“[…] In Dimock, Pennsylvania, residents found their water contaminated after fracking began nearby.  As it turns out, the cement casings that were meant to prevent the water from escaping had failed, and now all of their water was contaminated.  One man described his daughter’s experience showering in that water:

“My daughter would get in the shower in the morning, and she would have to get out and lay on the floor because she thought she was going to pass out from the methane.  She had eczema on the insides of her arms, hives up and down her body, and she said, ‘I want to have kids some day’.  You know, my job is to protect my kids, how do I protect them from this?” […] “(2)

(2) http://aftw.net/2015/08/31/shattered-ground-review/

See on Scoop.itGreen Energy Technologies & Development

Massive Methane Gas Leak at California Storage Facility

The natural gas leak from a storage facility in the hills above Los Angeles is shaping up as a major ecological disaster as it vents large amounts of methane, a potent greenhouse gas.

Sourced through Scoop.it from: www.washingtonpost.com

” […]  A runaway natural gas leak from a storage facility in the hills above Los Angeles is shaping up as a significant ecological disaster, state officials and experts say, with more than 150 million pounds of methane pouring into the atmosphere so far and no immediate end in sight.

The rupture within a massive underground containment system — first detected more than two months ago — is venting gas at a rate of up to 110,000 pounds per hour, California officials confirm. The leak already has forced evacuations of nearby neighborhoods, and officials say pollutants released in the accident could have long-term consequences far beyond the region.

Newly obtained infrared video captures a plume of gas — invisible to the naked eye — spouting from a hilltop in the Aliso Canyon area above Burbank, like smoke billowing from a volcano. Besides being an explosive hazard, the methane being released is a powerful greenhouse gas, more potent than carbon dioxide in trapping heat in the lower atmosphere.

Scientists and environmental experts say the Aliso Canyon leak instantly became the biggest single source of methane emissions in all of California when it began two months ago. The impact of greenhouse gases released since then, measured over a 20-year time frame, is the equivalent of emissions from six coal-fired power plants or 7 million automobiles, environmentalists say. […]

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Oil Well Waste Water Used to Generate Geothermal Power

The team took off-the-shelf geothermal generators and hooked them to pipes carrying boiling waste water. They’re set to flip the switch any day. When they do, large pumps will drive the steaming water through the generators housed in 40-foot (12-meter) containers, producing electricity that could either be used on site or hooked up to power lines and sold to the electricity grid.

Sourced through Scoop.it from: www.bloomberg.com

>”Oil fracking companies seeking to improve their image and pull in a little extra cash are turning their waste water into clean geothermal power.

For every barrel of oil produced from a well, there’s another seven of water, much of it boiling hot. Instead of letting it go to waste, some companies are planning to harness that heat to make electricity they can sell to the grid.

Companies such as Continental Resources Inc. and Hungary’s MOL Group are getting ready to test systems that pump scalding-hot water through equipment that uses the heat to turn electricity-generating turbines before forcing it back underground to coax out more crude.

Though the technology has yet to be applied broadly, early results are promising. And if widely adopted, the environmental and financial benefits could be significant. Drillers in the U.S. process 25 billion gallons (95 billion liters) of water annually, enough to generate as much electricity as three coal-fired plants running around the clock — without carbon emissions.

“We can have distributed power throughout the oil patch,” said Will Gosnold, a researcher at the University of North Dakota who’s leading Continental Resources’ project well.

Geothermal power also holds out the promise of boosting frackers’ green credentials after years of criticism for being the industry’s worst polluters, says Lorne Stockman, research director at Oil Change International, an environmental organization that promotes non-fossil fuel energy.

“This is one way to make it look like the industry cares about the carbon issue,” he said. Even if steam generates less carbon than other oil field power sources, “if you’re in the business of oil and gas, you’re not part of the solution.”

Cheap Oil

Then there’s the money. With crude at less than $50 a barrel, every little bit can help lower costs. At projects like the one being tested by Continental Resources in North Dakota, a 250 kilowatt geothermal generator has the potential to contribute an extra $100,000 annually per well, according to estimates from the U.S. Energy Department.

That’s not big money and the $3.4 million cost to test the technology is still too much to apply to each of Continental’s hundreds of wells. Yet if the company can lower the costs of the technology, it will not only generate electricity it will also extend the economic life of wells, making them more profitable, said Greg Rowe, a production manager with Continental Resources. […]”<

See on Scoop.itGreen Energy Technologies & Development

Water Quantities Used for Hydraulic Fracturing Varies According to Drilling Methods

The amount of water required to hydraulically fracture oil and gas wells varies widely across the country, according to the first national-scale analysis and map of hydraulic fracturing water usage detailed in a new USGS study accepted for publication in Water Resources Research, a journal of the American Geophysical Union.

Sourced through Scoop.it from: www.usgs.gov

>” […]  from 2000 to 2014, median annual water volume estimates for hydraulic fracturing in horizontal wells had increased from about 177,000 gallons per oil and gas well to more than 4 million gallons per oil well and 5.1 million gallons per gas well. Meanwhile, median water use in vertical and directional wells remained below 671,000 gallons per well. For comparison, an Olympic-sized swimming pool holds about 660,000 gallons.

“One of the most important things we found was that the amount of water used per well varies quite a bit, even within a single oil and gas basin,” said USGS scientist Tanya Gallegos, the study’s lead author. “This is important for land and resource managers, because a better understanding of the volumes of water injected for hydraulic fracturing could be a key to understanding the potential for some environmental impacts.”

Horizontal wells are those that are first drilled vertically or directionally (at an angle from straight down) to reach the unconventional oil or gas reservoir and then laterally along the oil or gas-bearing rock layers. This is done to increase the contact area with the reservoir rock and stimulate greater oil or gas production than could be achieved through vertical wells alone.

However, horizontal wells also generally require more water than vertical or directional wells. In fact, in 52 out of the 57 watersheds with the highest average water use for hydraulic fracturing, over 90 percent of the wells were horizontally drilled.

Although there has been an increase in the number of horizontal wells drilled since 2008, about 42 percent of new hydraulically fractured oil and gas wells completed in 2014 were still either vertical or directional. The ubiquity of the lower-water-use vertical and directional wells explains, in part, why the amount of water used per well is so variable across the United States.

The watersheds where the most water was used to hydraulically fracture wells on average coincided with parts of the following shale formations:

Eagle Ford (within watersheds located mainly in Texas)Haynesville-Bossier (within watersheds located mainly in Texas & Louisiana)Barnett (within watersheds located mainly in Texas)Fayetteville (within watersheds located in Arkansas)Woodford  (within watersheds located mainly in Oklahoma)Tuscaloosa  (within watersheds located in Louisiana & Mississippi)Marcellus & Utica (within watersheds located in parts of Ohio, Pennsylvania, West Virginia and within watersheds extending into southern New York)

Shale gas reservoirs are often hydraulically fractured using slick water, a fluid type that requires a lot of water. In contrast, tight oil formations like the Bakken (in parts of Montana and North Dakota) often use gel-based hydraulic fracturing treatment fluids, which generally contain lower amounts of water. […]”<

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EPA and the Petroleum Industry: Fracking, Cover-ups and Academic Freedom

Thyne says he’s not the only one who’s been subjected to undue pressure from the oil and gas industry. He says he knows of faculty around the nation who have been targeted as well, including an engineer at Cornell University who called for an outright fracking ban in his state.

“Industry did a bunch of nasty pieces on him, trying to make him look like a wild-eyed, pistol-waving lunatic,” Thyne says.

There was even one woman from the tiny town of Raton, N.M., who claimed she was being followed and harassed after complaining about her water well being contaminated by nearby drilling operations.

“This ain’t shit,” Thyne says of his own situation. “I’ve talked to people who’ve been shot at. … It’s a real sticky situation, because there are some people getting jobs in the community, because of the development, and they’re good-paying jobs, and this is changing our economy, so it’s all positive, and then you say, ‘Yeah, well, so-and-so screwed up my well, and they won’t compensate me for it, so I’m going to take them to court, or I’m going to make waves.’ And you’ve got your neighbors mad at you.”

In addition, taking a big oil or gas company to court isn’t a walk in the park.

“You’ve got to have really deep pockets, you’ve got to go to court for a couple of years,” Thyne says. “They’re going to push it back and push it back and push it back, and then they’re going to wait until the last second, literally, and they’re going to settle. And they’re probably going to simply buy your land for what you paid for it, and get you to sign a nondisclosure [agreement] and say bye bye.”

Sourced through Scoop.it from: www.boulderweekly.com

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North Dakota Bill Introduced to Minimize Natural Gas Waste from Oil Wells

North Dakota’s Senate is considering legislation that would drastically cut the time oil companies can burn off and waste natural gas from an oil well.

Source: www.pennenergy.com

>”[…] Democratic Sen. Connie Triplett is sponsoring the bill that would require companies to begin paying royalties and taxes on natural gas within 14 days after an oil well begins production. Companies are given a year at present.

Triplett and others told the Senate Energy and Natural Resources Committee on Friday that mineral owners and the state are being shortchanged because revenue on the wasted gas is not immediately being collected.

North Dakota Petroleum Council President Ron Ness says the industry has invested $13 billion to capture the gas. But he says there is still a challenge obtaining permission to place gas pipelines in some areas.”<

 

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