China also has boosted annual coal production by 490 million tonnes since last year, enough to meet demand from Germany and Russia combined, the coal mine safety bureau said this month, describing coal as “still our country’s most important source of power”.
The country has continued to develop new coal-fired plants, with construction on the second phase of the Zheneng Liuheng coal-fired power station in eastern China’s Zhejiang province beginning at the start of this month. New coal-fired power construction was at its highest since 2016 last year.
Reuters
Archive for the ‘climate’ Category
Meanwhile, China’s coal consumption continues to soar
Posted in climate, energy policy, tagged China, coal on August 23, 2022| Leave a Comment »
More buzz about ultradeep geothermal
Posted in climate, drilling, energy, tagged gyrotron, Ken WIsian, Quaise Energy, ultradeep geothermal, UT Austin on August 17, 2022| Leave a Comment »
Quaise Energy’s ultradeep geothermal energy concept is most intriguing and media interest continues to build. Ultradeep geothermal has a big advantage over other renewable concepts which have much greater space and aesthetic challenges and suffer from intermittency. As is very well explained in the quote below, it’s now up to Quaise to demonstrate gyrotron drilling and the associated technology in pilot projects.
“A lot of the technology advances [needed] are coming into that proof step where you’ll have physical proof that they work. So I would say we are ready to launch, if we can just bring together the right utility, the right contract and engineering expertise, and the right site to launch the proofs to show that this can be done,” said Ken Wisian, a geothermal geophysicist and associate director of the Bureau of Economic Geology at the University of Texas, Austin. “The picture could be accelerating dramatically over the next few years. We just need the proof projects to land.”
altenergymag.com
Inflation Reduction Act: BOE’s top 3 takeaways
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, tagged flaring, Inflation Reduction Act, Lease Sale 257, offshore oil, Offshore Wind on August 15, 2022| Leave a Comment »
- The flaring provision complicates compliance and may increase safety risks: (p. 649) Exception 1 exempts “gas vented or flared for not longer than 48 hours in an emergency situation that poses a danger to human health, safety, or the environment.” This is inconsistent with the carefully constructed BSEE regulations which allow limited (48 hours cumulative) flaring for certain operations (e.g. during the unloading or cleaning of a well, drill-stem testing, production testing, and other well-evaluation testing). Such flaring is essential but not normally “an emergency situation.” The bill could thus compromise safety by unnecessarily restricting or complicating well operations and by limiting flaring in circumstances where such flaring reduces safety risks.
- Time for BOEM to get to work 😉: (p. 650): Per our previous post, the highlight section of the bill (from an offshore oil and gas standpoint) reinstates Lease Sale 257 (GoM) and requires that the scheduled 2022 lease sales 258 (GoM) and 259 (Cook Inlet) be held by 12/31/2022. Lease Sale 261 (GoM) must be held by 9/30/2023.
- Petty but perhaps necessary: p. 655: The provision restricting wind leasing when no oil and gas lease sale has been held in the prior year is in the final bill.
179 Proposed House Amendments to H.R. 5376 – Inflation Reduction Act of 2022 (Schumer-Manchin bill)
Posted in climate, energy policy, Offshore Energy - General, tagged Amendments, Congressman Roy, Inflation Reduction Act on August 11, 2022| Leave a Comment »
They are listed here. This one is the most entertaining 😀
AMENDMENT TO SENATE AMENDMENT TO H.R. 5376
OFFERED BY MR. ROY OF TEXAS
Strike line 1, page 1, and all that follows.
Funding studies to support a pre-determined narrative
Posted in climate, energy policy, tagged DOE, electric grid, Green Pork, renewables on August 4, 2022| Leave a Comment »
WASHINGTON, D.C. — The Biden-Harris Administration, through the U.S. Department of Energy (DOE), today announced $26 million to fund projects that will demonstrate that America’s electricity grid can reliably run with a mix of solar, wind, energy storage, and other clean distributed energy resources.
DOE
Shouldn’t the research precede DOE’s declaration of victory?
Rest assured that none of the studies will question the reliability of a grid dependent on DOE’s preferred energy mix; nor will they raise concerns about the associated economic, national security, or environmental risks. These are the types of projects that the WSJ calls “Green Pork.”
DOE production (not satire)
Posted in climate, energy policy, Uncategorized, tagged clean energy corps, DOE, Robert Downey on August 2, 2022| Leave a Comment »
Wind vs. oil and gas: Is this necessary?
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, Wind Energy, tagged Manchin, offshore oil, Offshore Wind, Schumer on August 1, 2022| Leave a Comment »
When we (MMS) drafted the OCSLA amendments (incorporated into the Energy Policy Act of 2005) that authorized offshore wind operations, we envisioned complementary and synergistic programs. Offshore wind and oil/gas development have many similarities and a common purpose – energy production. There is considerable overlap among the operating companies and contractors.
Unfortunately, politicians are better at dividing than uniting, and a provision in the Schumer-Manchin legislation pits the offshore wind and oil/gas programs against each other. The text (pasted below) from p. 646 of the bill restricts wind leasing when no oil and gas lease sale has been held in the prior year.
I share the concerns about the OCS program evolving into a wind-only program, as has already happened in the Atlantic (more on this at a later date). However, oil and gas sales should be held because they make economic and environmental sense, not because they are a condition for holding wind sales. Oil and gas sales are not punishment and wind sales are not rewards, and holding a single GoM lease sale each year does not balance the offshore program.
(b) LIMITATION ON ISSUANCE OF CERTAIN LEASES OR RIGHTS-OF-WAY.—During the 10-year period beginning on the date of enactment of this Act—
(2) the Secretary may not issue a lease for offshore wind development under section 8(p)(1)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.1337(p)(1)(C)) unless—
(A) an offshore lease sale has been held during the 1-year period ending on the date of the issuance of the lease for offshore wind development; and (B) the sum total of acres offered for lease in offshore lease sales during the 1-year period ending on the date of the issuance of the lease for offshore wind development is not less than 60,000,000 acres.
More on the Manchin-Schumer bill
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, Offshore Wind, Regulation, tagged energy legislation, energy policy, Manchin, offshore leasing, Sale 257, Schumer on July 29, 2022| Leave a Comment »
Here is a link to the entire bill. Good weekend reading for energy policy nerds. 😀
The energy sections begin on page 232 and continue until the end (page 725!). Some highlights from an offshore energy perspective (more important items in bold):
- p. 429 – Tax credit eligibility for offshore wind energy components including blades, nacelles, foundations, and towers.
- p. 447 – Credits for CCS equipment
- p. 460 – For offshore wind facilities, this section specifies the % of the total costs that must be expended in the US for the facility to qualify as being manufactured in the US. That % rises gradually to 55% after 12/31/2027.
- p. 518 – Eligibility of CCS for credits
- p. 615 – $100 million for offshore wind electricity transmission planning, modelling, and analysis. (Seems like a lot for planning and analysis.)
- p. 621 – $10 million for oversight by DOE Inspector General. (Those folks will have their hands full!)
- p. 628 – Authorizes wind leasing in the EGOM and South Atlantic areas withdrawn from all leasing at the end of the Trump administration.
- p. 631 – Authorizes offshore wind leasing adjacent to US territories. (Should be interesting!)
- p. 632 – Codifies increase in offshore royalty rates: range of 16 2/3% – 18 3/4% for 10 years; not less than 16 2/3 % thereafter
- p. 640 – The provision requiring that royalty be paid on flared/vented gas could be problematic. The exceptions are not consistent with those currently in the regulations, and would be difficult for BSEE/ONRR to manage. The proposed legislation (exception 1) exempts “gas vented or flared for not longer than 48 hours in an emergency situation that poses a danger to human health, safety, or the environment.” However, current BSEE regulations allow limited (48 hours cumulative) flaring for certain operations (e.g. during the unloading or cleaning of a well, drill-stem testing, production testing, and other well-evaluation testing). This flaring is essential but not normally an emergency situation. Requiring royalty payments for such essential, but not emergency, flaring would be unreasonable and inconsistent with the intent of this provision (minimize unnecessary flaring and venting).
- p. 641 – Per our previous post, this section reinstates Lease Sale 257 (GoM) and requires that the scheduled 2022 lease sales 258 (GoM) and 259 (Cook Inlet) be held by 12/31/2022. Lease Sale 261 (GoM) must be held by 9/30/2023. Saddle up!
“Manchin-Schumer” energy legislation reinstates lease sale 257 and requires additional lease sales in accordance with the 2017-2022 program
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, tagged 5 year leasing plan, energy legislation, Lease Sale 257, Manchin, Schumer on July 28, 2022| Leave a Comment »
(b) LEASE SALE 257 REINSTATEMENT.—
(1) ACCEPTANCE OF BIDS.—Not later 30 days after the date of enactment of this Act, the Secretary shall, without modification or delay—
(A) accept the highest valid bid for each tract or bidding unit of Lease Sale 257 for which a valid bid was received on November 17, 2021; and
(B) provide the appropriate lease form to the winning bidder to execute and return.
As predicted by BOE (with no inside information) on 5/27/2022. 😀
What about the CCS bids? More to follow.
Re. the Strategic Petroleum Reserve sales, who knew…?
Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, tagged China, Lease Sale 257, oil sales, Russia, SPR on July 25, 2022| Leave a Comment »
- …that the SPR legislation authorized the sale of large volumes of oil for the purpose of easing worldwide prices. Per section 151 of the statute, which was passed following the oil embargoes in the 1970’s, the SPR was intended to diminish the vulnerability of the United States to the effects of a severe energy supply interruption.
- …that SPR oil could be sold to all entities including Chinese companies that are also buying oil from Russia, the country being boycotted. How absurd is that? (The confirmation of one such transaction is pasted below.)
- …that increased worldwide emissions from the consumption of SPR oil are okay, but emissions from the consumption of our offshore oil and gas are not. Remember that Lease Sale 257 was vacated because BOEM did not analyze the effect that lower prices (from increased US production) would have on GHG emissions. Why are EarthJustice et al silent on the SPR sales? Where is DOE’s environmental assessment of these sales?
Bud's Offshore Energy (BOE) 