Energy Wars

Private equity company Blackstone Group LP (BX.N) CEO Stephen Schwarzman said on Tuesday that up to 45 percent of the world's wealth has been destroyed by the global credit crisis. "Between 40 and 45 percent of the world's wealth has been destroyed in little less than a year and a half," Schwarzman told an audience at the Japan Society. "This is absolutely unprecedented in our lifetime." But the U.S. government is committed to the preservation of financial institutions, he said, and will do whatever it takes to restart the economy.

Nikkei Business Publications recently announced the results of a survey conducted with engineers in Japan's manufacturing industry on the current global recession. They were asked hard questions about the impact of the recession and measures to cope with it. I am a little surprised that they turn out to be such tree-huggers: an overwhelming number thinks solar cells, electric, fuel-cell and hybrid vehicles - and even wind power - could provide the breakthroughs we need to get out of the current recession.

The slow-motion train wreck that is the US car market is looking less slow every day. Auto Sales Plunge as Buyers Snub Incentives: Falling U.S. auto sales crashed in February, dimming hopes that the domestic industry might bounce back in the second half of this year. … General Motors reported that its sales slid 53 percent in February compared with the same month a year ago. Chrysler's dropped 44 percent. And Ford's sales tumbled 48 percent, despite its insistence that it needs no federal aid to stay afloat.

Given the converging financial, ecological, and energy situations, I often wonder what we should be telling our children about subjects that are a)over their heads and b)potentially 'R' rated or worse. Verbal navigation between hope and reality is difficult enough for our adult network, let alone the generation of young people growing up under our influence. Below the fold is a letter I wrote to the 7 yr old son of a friend of mine who asked his mom 'When will the oil run out?'.

The European Union wants President Obama to act on his promise of introducing a new climate change policy and work out the modalities of a cap-and-trade policy before the Copenhagen Talks in December. Doing so, EU ministers say, would send a clear signal to the world and especially the developing countries about the change in America's environment policy. 1 voteBuzz up! The European Union already has clear renewable energy and carbon emissions reduction policy in place but that has yet to make any difference in the stance of the developing countries like India and China. The Asian neighbors continue to resist any demands to reduce their carbon emissions claiming that their contribution to the overall global carbon emissions is very less as compared to that of the developed nations especially the United States which has not ratified the Kyoto Protocol.

A century ago French philosopher and writer Paul Valery observed, "The central problem with our times is that the future is not what it used to be." He could have been commenting on current events. In August, Alternet invited me to write a series of articles on energy policy leading up to the election. At the time the invitation was extended, the price of oil was about $135 a barrel. Gasoline prices had eclipsed $4 a gallon. Natural gas prices hovered around $11 per million BTUs. SUVs sales were down, but car companies were having some trouble keeping up with the demand for smaller cars. Renewable energy was expanding rapidly. The most important energy issue was whether the renewable electricity credits, bottled up by Senate Republicans for the previous 12 months, would be extended before they expired at the end of 2008. The renewable fuel everyone loves to hate, ethanol, was blamed not only for the rapid rise in food prices but also for food riots around the world.

The global economic downturn has hit clean energy investments and their growth is no longer on track for the world to avert the worst impacts of climate change, said clean energy and carbon market analysts New Energy Finance today. The analysts presented findings of their new report, Global Futures 2009, to senior investors, industry executives and policy makers in clean energy and the carbon markets at the second New Energy Finance Summit in London. Summit participation is by invitation only and is limited to 200 people.

Even before George W. Bush can settle into his new house in Dallas, his legacy on the environment is being dismantled by his replacement in the White House. In less than two months, President Obama has put on hold Bush's plans for power-plant pollution, offshore oil drilling, nuclear waste storage and endangered species. THE PRESIDENT'S AGENDA: What's been done, what lies ahead The Obama team has rolled out policies Bush officials delayed, such as requiring higher energy efficiency from appliances. Such moves have significant impacts and not just on the environment. They could affect electric bills, gas prices and the time it takes to build highways, dams and bridges.

Some are calling it a "smear job", while others are applauding the National Geographic's rather sobering 20-page publication on the Alberta tar sands, titled "Scraping Bottom." Either way, the timing is brilliant. Dubbed by some as the "most destructive project on Earth" - scarring it visibly from space - there's no doubt that the tar sands extraction industry has a huge environmental footprint, which even President Obama could not help but acknowledge during his visit to Ottawa last week, to the chagrin of some Canadian officials. Many of them, from Prime Minister Stephen Harper on down, are attempting to control the potential damage in the lead up to the ministerial visit to the U.S. next week - but it's almost like watching the frantic efforts of a doctor as the patient is hemorraging to death. "I'm proud of the oil sands. It's a world leader. National Geographic is not going to teach me any lessons about the oil sands," said Liberal Party leader Michael Ignatieff in a defensive response to the article. Canada's Environment Minister Jim Prentice went on to dismiss the feature as "just one article."

The UK energy supply industry will have to invest over GBP230 billion ($334 billion) in new infrastructure by 2025 to ensure security of supply and to meet climate change and renewable targets, consultants Ernst & Young said Tuesday. In a study for UK utility Centrica, Ernst & Young said the level of investment needed was double the value of the UK's total energy supply asset base. "The landscape in which this investment must be raised has altered fundamentally as the credit crunch and economic downturn take hold," the report said.

Gov. Sarah Palin has trimmed back her support for renewable energy in the face of declining oil revenues, but the Legislature is still pushing forward with last year's proposed projects. Palin last week submitted a revised budget for next year, cutting back a proposed $50 million in renewable projects to $25 million. That comes just a month after she'd called on the state to make an aggressive push for renewables that would bring the state to getting half its power from renewables by 2025

Dave Roberts has a good post at Grist on an NYT article on the coal industry - Is America ready to quit the enemy of the human race?. "Is America Ready to Quit Coal?" So asks a must-read story by Melanie Warner in the Sunday New York Times. And so, slowly, fitfully, that possibility -- the possibility not just of cleaning up coal or using less coal but eliminating coal -- creeps its way into the American public consciousness. The headline isn't the only thing worth celebrating. I would quibble with some details, but overall this piece comes closer than anything I've ever seen in the national media to getting the big story right.

Energy Bulletin's Bart Anderson has an interview in, of all places, a French cyberpunk journal - The future is Amish, not Mad Max: interview with Bart Anderson of EB. Laurent Courau: Your site puts forward the concept of "peak oil." Could you begin by reviewing this essential point for the readers of La Spirale? Bart Anderson: There is a limited amount of petroleum in the earth. After the easy deposits have been exploited, we go after deposits that are more difficult and expensive to develop (e.g. tar sands, deepwater and arctic oil). At a certain point - peak oil - the amount of oil produced reaches a maximum. Afterwards, less and less oil is produced. In this way oil production follows a more-or-less bell-shaped curve, Hubbert's Curve. The curve takes its name from the Shell Oil geoscientist, M. King Hubbert, who presented the idea in 1956 and predicted the peaking of U.S. oil production, which occurred in 1970.

The Washington Post has an article on forces encouraging and opposing renewable energy in the US - Alternative Energy Still Facing Headwinds. I like that Obama is still using his "end the tyranny of oil in our time" line. The late afternoon light is shining golden on the high chaparral as Donna Tisdale stands near a faded 1800s ranch house, scans the unblemished surrounding hills and sees trouble on the horizon. "The ridge right there will have turbines on it," she says, squinting west into the setting sun. Turning north and east, where a pristine ridgeline meets the sky, she points out the route of a $1.9 billion electricity transmission line whose 150-foot towers will march 123 miles from the Imperial Valley to energy-thirsty San Diego.

Next month's edition of National Geographic has an article on the tar sands of Canada - The Canadian Oil Boom. How long the boom lasts if the current downturn continues is questionable of course. In the same issue is an article on Energy Conservation. In Boucher's memory, though, the change begins that day in 1963, on the long trail his grandfather used to set his traps, near a place called Mildred Lake. Generations of his ancestors had worked that trapline. "These trails had been here thousands of years," Boucher said one day last summer, sitting in his spacious and tasteful corner office in Fort McKay. His golf putter stood in one corner; Mozart played softly on the stereo. "And that day, all of a sudden, we came upon this clearing. A huge clearing. There had been no notice. In the 1970s they went in and tore down my grandfather's cabin-with no notice or discussion." That was Boucher's first encounter with the oil sands industry. It's an industry that has utterly transformed this part of northeastern Alberta in just the past few years, with astonishing speed. Boucher is surrounded by it now and immersed in it himself.

Ah, intermittency, one of the frequently cited disadvantages to wind power. Because the wind doesn't blow all the time, and you can't store energy, wind projects can't produce a steady stream of energy 24/7, hence they are regarded as "intermittent" power sources. So what's the solution to intermittency? One is to put plants in high wind regions, such as offshore where the wind blows more frequently. And another solution is the hybrid project: teaming wind up with a steadier source of baseload power than can come on line when the wind's not blowing.

Most climate experts accept that, in order to avoid catastrophic effects of global warming, greenhouse gas emissions (mostly CO2) must be cut by 60-80% by 2050 (though the figure may need to be a 95% cut in the US). The belief that replacing fossil fuels with solar and wind technology can accomplish this reduction tends to overlook several factors: 1. Corporations bombard the world with the message that everyone should consume like Americans do; 2. Corporations tell those in the US that they should ape after the playthings of the rich; 3. Population is growing; 4. Market economics force pathological expansion; and, 5. Solar and wind comprise a minute fraction of current energy. Let's combine these to get an idea of how much solar and wind would need to expand to replace coal, oil, nukes and gas by 2050. First, the US consumes about 25% of the world's energy while having only 5% of the world's population. For the rest of the world to consume at the rate of the US would require global production to increase by a factor of 6.33.

Tomorrow, Wednesday, February 18, U.S. Energy Secretary Steven Chu will deliver the opening keynote address at the 2009 DOE-NARUC National Electricity Forum. In the address, Secretary Chu will outline the Administration's commitment to modernizing the nation's electricity distribution system through a "Smart Grid" that will create new jobs, save consumers money, use energy more efficiently and avoid blackouts, and pave the way for a dramatic expansion in renewable energies such as solar and wind power. He will also discuss the immediate and long-term impacts of the President's American Recovery and Reinvestment Act in creating jobs and investing in a clean energy future.

The focal point of most of the safety concerns at the Oyster Creek nuclear plant recently has been the drywell, a steel barrier surrounding the plant's reactor vessel that is supposed to contain radiation in the event of an accident. The fear is that the 40-year-old drywell is continuing to erode to the point it could buckle, creating a potentially cataclysmic accident. That concern is well-warranted. Thanks to the tenacity of citizen activists, approval of a 20-year license renewal is being held up pending further analysis of the drywell's structural integrity. If it receives a clean bill of health, the Nuclear Regulatory Commission is all but certain to approve a 20-year license extension for the plant, the nation's oldest commercial reactor.

Last May, protesters took over James E. Rogers's front lawn in Charlotte, N.C., unfurling banners declaring "No new coal" and erecting a makeshift "green power plant" - which, they said in a press release, was fueled by "the previously unexplored energy source known as hot air, which has been found in large concentrations" at his home. And so it goes for Mr. Rogers, the chief executive of Duke Energy. For three years, environmentalists have been battling to stop his company from building a large coal-fired power plant in southwestern North Carolina. They say it will spew six million tons of carbon dioxide into the atmosphere annually, in addition to producing toxic gases and mountains of fly ash similar to the muck that engulfed a Tennessee community recently.