Archive for the ‘climate’ Category
From a UK cattle owner 😉
Posted in climate, flaring and venting, natural gas, tagged Bovaer, Dairy cattle emissions, UK, Whistle Hill Beef on December 2, 2024| Leave a Comment »
Texas and 10 other states sue asset managers for pursuing ESG agenda without the consent of their investors
Posted in climate, energy policy, Uncategorized, tagged coal companies, ESG, Ken Paxton, sues asset managers, Texas on November 29, 2024| Leave a Comment »
Texas Attorney General Ken Paxton:
“Blackrock, Vanguard, and State Street utilized the Climate Action 100 and the Net Zero Asset Managers Initiative to signal their mutual intent to reduce the output of thermal coal, which predictably increased the cost of electricity for Americans across the United States.
These firms also deceived thousands of investors who elected to invest in non-ESG funds to maximize their profits. Yet these funds pursued ESG strategies notwithstanding the defendants’ representations to the contrary.”
Note that this litigation may also have implications for the oil and gas industry. The complete filing is attached.
Gone with the Wind (££-$$-€€)
Posted in climate, energy policy, Offshore Wind, UK, tagged Beatrice Wind, Block Island Wind, German wind power, Gone with the Wind, subsidies, Wind Energy on November 26, 2024| Leave a Comment »
The Beatrice Offshore Windfarm has become the fourth UK windfarm to have received more than £1 billion in subsidy payments. The landmark was reached in just its seventh year of operation, suggesting that it could reach £2 billion over the course of its subsidy agreement.
Block Island Wind Farm – “America’s Starting Five” (first 5 offshore turbines) – reliably generates subsidies (table below).
Projected PPA subsidies for other Atlantic wind projects:
Vom Winde verweht: Germany will pay as much as €20 billion to wind and solar operators through the end of 2024, twice what grid operators had forecast in last October.
Energy transitions don’t happen on command
Posted in climate, energy policy, tagged Bjorn Lomborg, coal, Daniel Yergin, energy transition, JPMorgan, oil, renewables on November 25, 2024| 1 Comment »
Bjorn Lomborg graphics using IEA data:
Wisdom from Dan Yergin:
The 19th century is known as the “century of coal,” but, as the technology scholar Vaclav Smil has noted, not until the beginning of the 20th century did coal actually overtake wood as the world’s No. 1 energy source. Moreover, past energy transitions have also been “energy additions”—one source atop another. Oil, discovered in 1859, did not surpass coal as the world’s primary energy source until the 1960s, yet today the world uses almost three times as much coal as it did in the ’60s.
Aissatou Sophie Gladima, the energy minister of Senegal, put it more pithily: Restricting lending for oil and gas development, she said, “is like removing the ladder and asking us to jump or fly.”
Christyan Malek, JPMorgan’s top energy strategist: That intrinsic demand that is not visible is so significant that we don’t see demand peaking – I don’t think we’ll see [oil] demand peaking in our lifetimes,” he said. “Particularly as demand growth in [emerging markets] continues to surprise the upside.”
Alex Epstein graphic:
Loss of power to Johan Sverdrup field raises further questions about Norway’s push to electrify offshore facilities
Posted in accidents, climate, Norway, Offshore Energy - General, tagged CO2, electrification policy, Equinor, gas turbines, Johan Sverdrup, Norway, power outage on November 20, 2024| Leave a Comment »
Production from Equinor’s important Johan Sverdrup field, which accounts for 755,000 bopd (36% of Norway’s oil production), was shut-in on Monday as a result of a power outage. Production was in the process of being restored on Tuesday.
According to Equinor, the outage was caused by overheating at an electric converter station onshore.
A 2022 BOE post questioned Norway’s push to power offshore platforms with electricity transmitted from shore. This incident reinforces those concerns. Summary:
- Most offshore platforms produce sufficient gas to support their power demands
- Assuming gas that is not used to power a platform is marketed and consumed elsewhere, the net (global) reduction in CO2 emissions from electrifying offshore platforms is negligible. (Perhaps there is actually a small increase in net emissions given the power required to transport the gas to markets and the emissions associated with onshore power generation).
- Offshore power demands are highly variable, especially when drilling operations are being conducted.
- Gas turbines are reliable, and capable of responding to variable power demand. Excess generation capacity is typically provided.
- Power from shore increases the cost of platform operations and could decrease ultimate recovery of oil and gas resources.
- Per NPD, electrification of the shelf will increase electricity prices for onshore consumers and increase the need for onshore facility investment.
- Gas turbines or diesel generators are still necessary to satisfy emergency power needs at the platforms.
- Long power cables are vulnerable to damage (accidental or intentional), as are onshore power stations.
I hope the investigation of this incident considers some of these broader electrification policy issues.
Does Exxon fear the collapse of the CCS house of cards?
Posted in CCS, climate, conferences, energy policy, Offshore Energy - General, Regulation, tagged carbon capture, carbon disposal, carbon disposal leases, CCS, Exxon, infrastructure bill, Paris climate agreement on November 14, 2024| 4 Comments »
Exxon CEO Darren Woods’ is concerned that US withdrawal from the Paris climate agreement would threaten carbon capture and sequestration (CCS), the foundation for which is government mandates and generous taxpayer subsidies.
Exxon projected a $4 trillion carbon capture and sequestration (CCS) market by 2050. The company was a primary driver behind the late additions to the 2021 Infrastructure Bill. That bill authorized carbon disposal on the OCS, exempted such disposal from the Ocean Dumping Act, and authorized $2.5 billion for commercial CCS projects.
Exxon sought an edge over CCS competitors by improperly acquiring 163 OCS oil and gas leases (map below) for carbon disposal purposes. Conversion of these leases is not authorized, which means they will expire at the end of their primary (5 year) term absent legislative or regulatory action.
The only solid support for CCS is from companies hoping to benefit from subsidies and charges to industries and individual energy consumers. It’s time to end the Federal government’s CCS programs.
No wind November
Posted in climate, Offshore Wind, tagged Die Dunkelflaute, electricity prices, Jens Christiansen, no wind November, windless Europe on November 7, 2024| Leave a Comment »
Check out these capacity factors in Western Europe:
Die Dunkelflaute: wholesale electricity prices spiked to >€800 per megawatt hour—10 times the usual avg.
Denmark’s “ban” on oil and gas exploration, campaign against fossil fuels
Posted in climate, energy policy, Offshore Energy - General, tagged 2050 production end, ban, Danish gas production, Denmark, oil and gas exploration, Orsted, Total on November 4, 2024| Leave a Comment »
As the table below illustrates, Denmark’s highly publicized oil and gas exploration ban is more pragmatic than has been reported in the media. The expansion of production from existing fields is not restricted.
| 12/4/2020 policy announcement | 10/29/2024 discovery announcement |
| Denmark has brought an immediate end to new oil and gas exploration in the Danish North Sea as part of a plan to phase out fossil fuel extraction by 2050. | TotalEnergies announces that the Harald East Middle Jurassic nearby exploration well (HEMJ-1X) has discovered additional gas condensate resources in the Harald field, in the Danish North Sea.“The success of the Harald East Middle Jurassic well, nearby our Harald facilities in Denmark, demonstrates the strength of our Exploration strategy.” |
As a result of new exploration, Danish gas production is on the rise (graphic below) after two decades of decline. August 2024 production (165.8 MMCFD) was 21% higher than August 2023 production (136.9 MMCFD)
While Total has proven to be resourceful in sustaining North Sea gas production, Denmark’s refusal to hold new licensing rounds dooms their production over the longer term. This is consistent with Denmark’s intent to cease domestic production by 2050. (Those of you who are young enough can report on whether that deadline is met 😉).
The demand for fossil fuels, which has yet to peak, will still be strong in 2050 and beyond. Phasing out domestic production may be Denmark’s choice, but it’s not a good choice for much of the world.
Denmark is a lovely country, but their rather smug commitment to “lead a global campaign on the role of fossil-fuel producing countries” is not universally welcome. Similarly, companies like Orsted (50.1% Danish govt ownership) are not always the best ambassadors for exporting Danish energy policy.
Other governments, including the US, are quite capable of risking their economic growth and energy security without Denmark’s help.
Related posts:
Encouraging study for ultra-deep geothermal fans
Posted in climate, drilling, tagged fractures at superhot conditions, gyrotron, Quaise Energy, supercritical water, ultradeep geothermal on October 18, 2024| 4 Comments »
Ultra-deep geothermal is arguably the renewable energy resource with the greatest long term potential. It is accessible everywhere, can replace thermal energy sources at existing power plants, and isn’t handicapped by the intermittency, space preemption, aesthetic, and wildlife protection challenges inherent in wind and solar development.
A new study found that rock that fractures at superhot conditions (see diagram above) can be ten times more permeable than rock that fractures at conditions closer to the Earth’s surface, and can also deform more readily.
Why is this important?
- More water can pass through fractures and become supercritical (see diagram below)
- Supercritical water “can penetrate fractures faster and more easily and can carry far more energy per well to the surface—roughly five to ten times the energy produced by today’s commercial geothermal wells.”
- The research confirms theoretical work reported earlier this year showing that the cracks that form create a dense “cloud of permeability” throughout the affected rock.
The next big step for ultra-deep geothermal is demonstrating the technology to efficiently drill wells to depths of ~20 km. In that regard, we are awaiting Quaise Energy’s field test of their gyrotron drilling system.
Nord Stream litigation: Insurers’ assertion is “embarrassing for want of particularity”
Posted in accidents, climate, pipelines, tagged Jeffrey Brodsky, litigation, Lloyds, Nord Stream, pipeline sabotage, Russia Ukraine conflict, Said Mahmoudi on October 14, 2024| 4 Comments »
Jeffrey Brodsky, a journalist who traveled to all four Nord Stream blast sites, shared Nord Stream AG’s response (attached) to the 30 Sept. court filing by the insurers.
Particularly noteworthy is Nord Stream’s response to the insurers’ claim (par. 22.2 (a) of their filing) that the pipeline damage was the result of “the conflict between Russia and Ukraine.” In par. 13.1 of their response (attached), Nord Stream called the insurers’ assertion “embarrassing for want of particularity.” (clever wording that may prove useful in the future 😉)
Brodsky’s observations on the Nord Stream filing:
- Nord Stream AG calls the insurers (Lloyd’s and Arch) failure to provide evidence for the country that blew up the pipelines “embarrassing.” (See above comment.)
- Nord Stream argues that the insurers still must pay even if the sabotage was an act of war. This aligns with what legal scholar Said Mahmoudi told Brodsky.
- Mahmoudi: “The defendants’ argument is prima facie irrelevant if one cannot prove that the damage is caused by a named government that has been directly involved in a war in the area. The burden of proof in this case is…on the defendant.”
- Mahmoudi: “Even if the sabotage is an act of terrorism, the author of the act can be a state or a private entity.”
- Mahmoudi: “If a private entity, the insurance company, is the only source for the compensation; if a state is responsible for the terrorist act, it is the insurance company & that state that have a legal obligation to compensate for the damage.”
Related comment by Erik Andersson: Nord Stream AG has consistently claimed they should receive compensation regardless of whether or not a government was responsible for the sabotage. Nord Stream AG does not seem interested in providing an alternative to Lloyds’ claim that Ukraine did this as an act of war. (That horse might be too big to ride 😉)
Bud's Offshore Energy (BOE) 