Tag Archives: oil

PLEA Network

4 November 2015, Renew Economy, Graph of the Day: Watch US electricity grid evolve before your eyes. We talk a lot about the changing shape of the electricity grid, but what does it look like? We first came across this rather hypnotic GIF via the Union of Concerned Scientists blog, The Equation, who borrowed it from Pat Knight at Synapse Energy Economics. It shows, in animated graph form, how the electricity mix has changed in each state of America over the past 15 years. And as UCS senior energy analyst John Rogers notes, the only constant in the “mesmerising” GIF is change. 

The really interesting changes come from about 2009 onwards. But Rogers sees five trends in the graph’s “undulating bars” and outlines what’s behind them:

  1. Coal waning – The most visible change in recent years, says Rogers, is shown in the shrinkage of the dark section on the left of the GIF. “Coal provided fully half of (the US’s) electricity as recently as 2006. Now it’s down to below 40 percent, as the eroding economics of coal have asserted themselves,” he writes.
  2. Natural gas growing – For the US, a big part of the decline of coal (and the rise of concerns about natural gas overreliance).
  3. Renewables surging – Another reason King Coal is falling, says Rogers: “the result of smart policies in a lot of forward-thinking states, and great cost reductions. Synapse’s Knight offers this great statistic: ‘In 2014, 11 states produced 10 percent or more generation from renewables (compared to zero states in 2005)’.”
  4. Renewables surging (wind) – Wind, the technology to beat in many US locations, now accounts for more than 10 per cent of generation in nine states, says Rogers, and more than 25 percent in two (Iowa and South Dakota).
  5. Renewables surging (solar) – At the end of the GIF’s journey, solar starts to make its presence felt, says Rogers – and it’s only just beginning to claim its share of the spotlight, with rapidly increasing scale and rapidly dropping costs. See Hawaii. Read More here
PLEA Network

16 October 2015, The Telegraph, Arctic offshore drilling to be cut back as US says it will not issue new leases. US decision to cancel future lease sales follows decision by Royal Dutch Shell to stop exploration in Chukchi and Beaufort seas. The Interior Department announced Friday it is cancelling future lease sales and will not extended current leases in Arctic waters off Alaska’s northern coast, a decision that significantly reduces the chances for future Arctic offshore drilling. The news follows a Sept. 28 announcement by Royal Dutch Shell that it would cease exploration in the Chukchi and Beaufort seas after spending upward of $7 billion on Arctic exploration. The company cited disappointing results from a well drilled in the Chukchi and the unpredictable federal regulatory environment. Interior Secretary Sally Jewell said the federal government is cancelling federal petroleum lease sales in U.S. Arctic waters that were scheduled for 2016 and 2017. “In light of Shell’s announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half,” she said in a statement. Read More here

PLEA Network

16 October 2015, BBC News, Paris climate summit: Major oil producers back ‘effective’ deal. The leaders of 10 of the world’s biggest oil companies have offered their qualified support for a new global treaty on climate change. The producers of 20% of the world’s oil and gas say they share the ambition to limit warming to 2C. They promise to work to reduce the greenhouse gas intensity of the global energy mix. But green groups were dismissive, saying that “arsonists don’t make good firefighters”. The Oil and Gas Climate Initiative represents major producers including BP, Shell, Saudi Aramco and Total among others….However the group of 10 does not include major US oil companies such as Exxon and Chevron. Environmental campaigners were quick to pour scorn on the oil and gas producers’ initiative, saying it would do little to aid the decarbonisation of the global economy. “The oil companies behind this announcement have spent years lobbying to undermine effective climate action, each and every one of them has a business plan that would lead to dangerous global temperature rises, yet suddenly they expect us all to see them as the solution, not the problem,” said Charlie Kronick from Greenpeace. “The world should thank them for their offer of advice but politely turn it down. Arsonists don’t make good firefighters.” Read More here

PLEA Network

28 September 2015, The Guardian, Shell abandons Alaska Arctic drilling. Oil giant’s US president says hugely controversial drilling operations off Alaska will stop for ‘foreseeable future’ as drilling finds little oil and gas. Shell has abandoned its controversial drilling operations in the Alaskan Arctic in the face of mounting opposition. Its decision, which has been welcomed by environmental campaigners, follows disappointing results from an exploratory well drilled 80 miles off Alaska’s north-west coast. Shell said it had found oil and gas but not in sufficient quantities. The move is a major climbdown for the Anglo-Dutch group which had talked up the prospects of oil and gas in the region. Shell has spent about $7bn (£4.6bn) onArctic offshore development in the hope there would be deposits worth pursuing, but now says operations are being ended for the “foreseeable future.” Shell is expected to take a hit of around $4.1bn as a result of the decision. The company has come under increasing pressure from shareholders worried about the plunging share price and the costs of what has so far been a futile search in the Chukchi Sea. Shell has also privately made clear it is taken aback by the public protests against the drilling which are threatening to seriously damage its reputation. Ben van Beurden, the chief executive, is also said to be worried that the Arctic is undermining his attempts to influence the debate around climate change. His attempts to argue that a Shell strategy of building up gas as a “transitional” fuel to pave the way to a lower carbon future has met with scepticism, partly because of the Arctic operations. Read More here