4 August 2017, Inside Climate News, Keystone XL: Low Oil Prices, Tar Sands Pullout Could Kill Pipeline Plan. It will be close to three years, at least, before oil could possibly be moving through the controversial Keystone XL pipeline—if the pipeline is completed at all. Company officials now concede that after battling protests and regulatory hurdles for nearly a decade, market forces could scuttle the project. Canadian pipeline giant TransCanada first proposed the 1,700-mile project in 2008 to ship tar sands oil from Alberta to the Gulf Coast. The half-built project was halted by President Obama in 2015 only to be revived through an executive order signed by President Trump soon after he took office. The company has spent $3 billion on the project, mostly for pipe but also for land rights and other costs of lobbying for its proposal. During the prolonged dispute, the price of oil fell from more than $130 a barrel to roughly $45 a barrel today, undercutting the prospects for production growth in the Canadian tar sands, which were used to justify the Keystone XL project at its outset. Along with changing market conditions, the emergence of competing pipelines scattered TransCanada’s customer base. Now it’s uncertain whether the company can sign enough new commitments from Alberta’s beleaguered oil patch to move forward. Read More here
Category Archives: The Mitigation Battle
28 July 2017, Reuters, U.S. coal exports soar, in boost to Trump energy agenda, data shows. U.S. coal exports have jumped more than 60 percent this year due to soaring demand from Europe and Asia, according to a Reuters review of government data, allowing President Donald Trump’s administration to claim that efforts to revive the battered industry are working. The increased shipments came as the European Union and other U.S. allies heaped criticism on the Trump administration for its rejection of the Paris Climate Accord, a deal agreed by nearly 200 countries to cut carbon emissions from the burning of fossil fuels like coal. The previously unpublished figures provided to Reuters by the U.S. Energy Information Administration showed exports of the fuel from January through May totaled 36.79 million tons, up 60.3 percent from 22.94 million tons in the same period in 2016. While reflecting a bounce from 2016, the shipments remained well-below volumes recorded in equivalent periods the previous five years. They included a surge to several European countries during the 2017 period, including a 175 percent increase in shipments to the United Kingdom, and a doubling to France – which had suffered a series of nuclear power plant outages that required it and regional neighbors to rely more heavily on coal. “If Europe wants to lecture Trump on climate then EU member states need transition plans to phase out polluting coal,” said Laurence Watson, a data scientist working on coal at independent think tank Carbon Tracker Initiative in London. Read More here
14 July 2017, The Conversation, Memo to COAG: Australia is already awash with gas. Federal, state and territory energy ministers are gathering today in Brisbane for the tenth meeting of the COAG Energy Council. In the wake of the Finkel Review, and against a backdrop of rising electricity and gas prices, they have much to discuss. Some of the focus will certainly be on gas policy and prices. Earlier this week, the federal energy minister, Josh Frydenberg, argued that state governments should develop their onshore gas reserves to relieve pressure on the gas market. Victoria and the Northern Territory both have bans on onshore gas development, introduced partly to protect prime farming land. Controversially, federal Liberal MP Craig Kelly suggested on Thursdaythat pressure from renewable resources on energy prices meant that “people will die” this winter if they’re afraid to turn on their heating. Yet it is gas generation, not renewables, that typically sets the price in the electricity market. As Fairfax reported yesterday, electricity prices move up and down with the gas price, almost exactly in tandem. What’s more, the reality is that Australia has enough existing gas reserves to keep producing at current rates, including exports to the international LNG market, for at least the next 25 years. Developing extra onshore gas potentially risks harming valuable agricultural land for little gain – and certainly won’t bring energy prices down by the end of this winter. Read More here
12 July 2017, The Guardian, Commentators who don’t understand the grid should butt out of the battery debate. Criticising South Australia’s battery for not meeting peak demand is akin to raging at your smartphone because it can’t send a fax. he Australian electricity grid’s most recently announced extremity is a gargantuan battery system in South Australia, designed to bolster grid security. The facility has been met mostly with a warm welcome, interspersed with weird, interesting and tense hostility. Buried in the mix of reactions are clues about how a new phase of grid transition might play out, as we switch from the rapid build out of zero carbon power sources to building and integrating them into a system designed for fossil fuels.Before we interrogate the misunderstandings of South Australia’s new battery, we have to step back and look at the system as a single, electric organism. Read More here