Category Archives: Fossil Fuels

Massive Methane Gas Leak at California Storage Facility

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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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Electric Vehicles Future Threatens OPEC

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The oil cartel is living in a time-warp, seemingly unaware that global energy politics have changed forever

Sourced through Scoop.it from: www.telegraph.co.uk

“…OPEC says battery costs may fall by 30-50pc over the next quarter century but doubts that this will be enough to make much difference, due to “consumer resistance”.

This is a brave call given that Apple and Google have thrown their vast resources into the race for plug-in vehicles, and Tesla’s Model 3s will be on the market by 2017 for around $35,000.

Ford has just announced that it will invest $4.5bn in electric and hybrid cars, with 13 models for sale by 2020. Volkswagen is to unveil its “completely new concept car” next month, promising a new era of “affordable long-distance electromobility.”

The OPEC report is equally dismissive of Toyota’s decision to bet its future on hydrogen fuel cars, starting with the Mirai as a loss-leader. One should have thought that a decision by the world’s biggest car company to end all production of petrol and diesel cars by 2050 might be a wake-up call.

Goldman Sachs expects ‘grid-connected vehicles’ to capture 22pc of the global market within a decade, with sales of 25m a year, and by then – it says – the auto giants will think twice before investing any more money in the internal combustion engine. Once critical mass is reached, it is not hard to imagine a wholesale shift to electrification in the 2030s.  […]

A team of Cambridge chemists says it has cracked the technology of a lithium-air battery with 90pc efficiency, able to power a car from London to Edinburgh on a single charge. It promises to cut costs by four-fifths, and could be on the road within a decade.

There is now a global race to win the battery prize. The US Department of Energy is funding a project by the universities of Michigan, Stanford, and Chicago, in concert with the Argonne and Lawrence Berkeley national laboratories. The Japan Science and Technology Agency has its own project in Osaka. South Korea and China are mobilising their research centres.

A regulatory squeeze is quickly changing the rules of global energy.The Grantham Institute at the London School of Economics counts 800 policies and laws aimed at curbing emissions worldwide.

Goldman Sachs says the model to watch is Norway, where electric vehicles already command 16.3pc of the market. The switch has been driven by tax exemptions, priority use of traffic lanes, and a forest of charging stations.

California is following suit. It has a mandatory 22pc target for ‘grid-connected’ vehicles within ten years. New cars in China will have to meet emission standards of 5 litres per 100km by 2020, even stricter than in Europe. […]

In the meantime, OPEC revenues have crashed from $1.2 trillion in 2012 to nearer $400bn at today’s Brent price of $36.75, with fiscal and regime pain to match.

This policy has eroded global spare capacity to a wafer-thin 1.5m b/d, leaving the world vulnerable to a future shock. It implies a far more volatile market in which prices gyrate wildly, eroding confidence in oil as a reliable source of energy.

The more that this Saudi policy succeeds, the quicker the world will adopt policies to break reliance on its only product. As internal critics in Riyadh keep grumbling, the strategy is suicide.

Saudi Arabia and the Gulf states are lucky. They have been warned in advance that OPEC faces slow-run off. The cartel has 25 years to prepare for a new order that will require far less oil.

If they have any planning sense, they will manage the market to ensure crude prices of $70 to $80. They will eke out their revenues long enough to control spending and train their people for a post-petrol economy, rather than clinging to 20th Century illusions.

Sheikh Ahmed Zaki Yamani, the former Saudi oil minister, warned in aninterview with the Telegraph fifteen years ago that this moment of reckoning was coming and he specifically cited fuel-cell technologies.

“Thirty years from now there will be a huge amount of oil – and no buyers. Oil will be left in the ground. The Stone Age came to an end, not because we had a lack of stones.”

They did not listen to him then, and they are not listening now.”

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IMF Reports Global Energy Subsidies are Unmanageable, Inefficient and Reinforce Inequality

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A new report from the International Monetary Fund (IMF) urged policymakers the world over to reform subsidies for products from coal to gasoline, arguing that this could translate into major gains both for economic growth and the environment.

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Source: www.imf.org

>” […] In a speech at the Peterson Institute for International Economics in Washington D.C., marking the release of the paper, IMF First Deputy Managing Director David Lipton noted that “subsidy reform can lead to a more efficient allocation of resources, which will help spur higher economic growth over the longer term.” Removing energy subsidies can also strengthen incentives for “research and development in energy-saving and alternative technologies,” he said. He also noted that, while intended to benefit consumers, subsidies are often inefficient and “could be replaced with better means of protecting the most vulnerable parts of the population.”

“The paper shows that for some countries the fiscal weight of energy subsidies is growing so large that budget deficits are becoming unmanageable and threaten the stability of the economy,” Mr. Lipton said, adding that IMF research shows that 20 countries maintain pre-tax energy subsidies that exceed 5 percent of GDP. For other emerging and developing countries, he said, the share of the scarce government resources spent on subsidies remains “a stumbling block” to higher growth and fundamentally impairs their future. “Because of low prices, there is little investment in much-needed infrastructure. More is spent on subsidies than on public health and education, undermining the development of human capital.”

Energy subsidies also reinforce inequality because they mostly benefit upper-income groups, which are the biggest consumers of energy. “On average, the richest 20 percent of households in low- and middle-income countries capture 43 percent of fuel subsidies,” said Mr. Lipton.

At the same time, Mr. Lipton warned that an increase in prices which can result from subsidy reform can have a significant impact on the poor and that “mitigating measures to protect them as subsidy reform is implemented” must be an integral part of any successful and equitable reform program.

In addition, Mr. Lipton noted that “subsidies aggravate climate change and worsen local pollution and congestion.” The study finds that eliminating pre-tax subsidies would reduce global CO2 emissions by about 1-2 percent which would, by itself, represent “a significant first step in reducing emissions by delivering about 15-30 percent of the Copenhagen Accord’s goal.” As for advanced economies, he noted that subsidies most often take the form of taxes that are too low to capture the true costs to society of energy use (“tax subsidies”), including pollution and road congestion. “Eliminating energy tax subsidies would deliver even more significant emissions reductions said Mr. Lipton, reducing “CO2 emissions by 4.5 billion tons, a 13 percent reduction.” […]”<

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