Category Archives: Oil

Matthew L. Wald/NYTimes.com: Obama Administration consider opening strategic energy reserve

Regular readers know that when Matthew L.  Wald‘s byline appears in The New York Times, we pay attention.  In “Obama Considers Tapping Oil Reserve, ” we suspect that space considerations forced the omission of certain important background details. First, excerpts from Mr. Wald’s piece:

WASHINGTON — The Obama administration is considering tapping the Strategic Petroleum Reserve in response to rapidly rising gasoline prices brought on by turmoil in the Middle East, the White House chief of staff, William M. Daley, said on Sunday.

“It’s something that only has been done on very rare occasions,” Mr. Daley said on “Meet the Press” on

Image by Infrogmation via Wikimedia Commons.

NBC, adding, “It’s something we’re considering.”

Administration officials have sent mixed signals about the possibility of opening the reserve, which would add supply to the domestic oil market and tend to push down prices.

Energy Secretary Steven Chu said on Friday that the administration was monitoring prices, but he has been reluctant to endorse more aggressive steps.

“We don’t want to be totally reactive so that when the price goes up, everybody panics, and when it goes back down, everybody goes back to sleep,” he said.

A few days earlier, Mr. Chu said the administration was watching the situation closely, but it expected oil production that had been lost in Libya would be made up by production elsewhere.

Administration officials continue to emphasize the critical need for long-term steps to reduce oil use, like improving the fuel economy of cars and promoting battery-powered vehicles.

But recently, five Senate Democrats have called for opening the reserve, which is stored in four salt domes in Texas and Louisiana. And on Feb. 24, three House Democrats from New England, where oil is used to heat homes, wrote to Mr. Obama saying that while exporters could increase production, “they also profit from oil price spikes and therefore have little incentive to quickly respond with the increased supply needed to calm markets.”

“We don’t want to be totally reactive so that when the price goes up, everybody panics, and when it goes back down, everybody goes back to sleep,” he said.

A few days earlier, Mr. Chu said the administration was watching the situation closely, but it expected oil production that had been lost in Libya would be made up by production elsewhere.

Administration officials continue to emphasize the critical need for long-term steps to reduce oil use, like improving the fuel economy of cars and promoting battery-powered vehicles.

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The Deepwater Horizon – The Good, The Bad, & The Ugly

Oil Eating Bacteria

Oil Eating Bacteria

The good news is that newly discovered bacteria biodegrade oil in the oceans, and have been chowing down on the oil spilled from the Deepwater Horizon  (Earth and Sky, NPR, PBS, SFGATE) and from oil seeps for millions of years.

While it’s unexpected and wonderful that bacteria are biodegrading the oil, is begs the question:

Do we want to fill the seas with oil and oil-eating bacteria or oceans of clean water, coral, oysters, fish, turtles, and dolphins?

And how quickly can they consume the 5.1 million barrels that gushed into the Gulf at a rate of 60,000 barrels per day for 85 days begining April 20, continuing thru May and June, and ending July 15, 2011?

I suspect it will take more than a few weeks, months, or years.

And do those bacteria break down dispersants?

John Ehrenfeld defines “Sustainability” as “Flourishing.” Because they are small and short-lived, shrimp can handle a higher level of toxics than say dolphins, turtles, etc. We will know the Gulf is clean when there are flourishing populations of dolphins, turtles, and larger and longer-lived fauna, and when they have lower concentrations of heavy metals and petrochemicals in their tissues. Continue reading

Crisis (Mis) Management and the Gulf Oil Spill

 

What BP and the Government Could Have Done and Should Be Doing (updated 10/7/10)

The handling of the Deepwater Horizon catastrophe is a textbook study of how not to manage a crisis. The government and the Obama Administration seems to have understated the problem and ceded responsibility to BP, which seems to have acted to protect the Macondo oil field rather than the Gulf of Mexico and the Gulf Coast.

Continue reading

Fossil Fuels and a Walk on the Moon

Ships trying to Extinguish the Flames

Ships trying to Extinguish the Flames at the Deepwater Horizon Rig

The unfolding disaster at the Deepwater Horizon rig in the Gulf of Mexico, which promises to be an environmental catastrophe, (click here) the recent disasters at the Upper Big Branch coal mine in West Virginia, and the Kingston, Tennessee fly ash retention pond demonstrate that fossil fuels are dirty and dangerous.  Safety and environmental protection are expensive and cannot be guaranteed. The oil will adversely effect fisheries in the Gulf for years. If the oil gets into the Gulf Stream, it will curl around Florida and flow up the coast hitting Georgia, South Carolina, North Carolina, Virgina, Maryland, Delaware, Pennsylvania, New Jersey, New York, Rhode Island, Massachusetts, New Hampshire, and if it flows around the Long Island Sound, Connecticut – all the original 13 states, then Maine and the Atlantic Provinces of Canada.

Rather than harnessing the Gulf Stream to push pollution from the Gulf of Mexico up the Atlantic coast of the United States, we should harness the Gulf Stream for clean renewable energy. (Here’s how.)

Solar and wind, which harness natural processes rather than consume natural resources, provide power without fuels, and without waste: with no arsenic, carbon dioxide, lead, mercury, methane, and other toxins, greenhouse gases or radioactive waste. These systems enable us to meet our needs and allow future generations to meet their needs – and flourish.

Rather than clinging to the dirty and hazardous infrastructure of the past, we must build the clean, renewable, and sustainable infrastructure of the future.

Cape Wind and the Staten Island Ferry solar array and the thousands of other solar and wind projects here in the U. S. and elsewhere on the globe are, to paraphrase Buzz Aldrin and Neil Armstrong, “small steps … yet giant leaps for mankind.”

This post is the First Installment of a series that will follow the unfolding catastrophe in the Gulf of Mexico.

The index is below:

  1. Fossil Fuels and a Walk on the Moon, May 3, 2010.
  2. Drill Baby Drill or Drill Baby Oops, May 7, 2010.
  3. The Magnitude of the Spill, May 15, 2010.
  4. One Month After The Spill BP Siphoning 3,000 Barrels Per Day, May 20, 2010.
  5. Deep Water Horizon – The Chernobyl of Deepwater Drilling?, June 2, 2010.
  6. The Deepwater Horizon: 40,000 Barrels Per Day or 70,000, June 13, 2010.
  7. The Deepwater Horizon After the Macondo Well Explosion, June 19, 2010.
  8. Deepwater Horizon – Bombs and Hurricanes, July 1, 2010.
  9. Like a Bad High School Math Problem, July 14, 2010.
  10. Crisis Management and the Gulf Oil Spill, July 16, 2010.
  11. The Deepwater Horizon: The Good, The Bad, and The Ugly, October 7, 2010.

Smarter Sensors Start Going to Work – Bits Blog – NYTimes.com

Steve Lohr reports on tne Times’ Bits Blog that  Royal Dutch Shell is using high-tech sensor arrays in searchinh got  oil. It’s certainly a good thing if risks associated with oil exploration and and acquisition are lowered. But it’s hard not to be cynical about the face oil companies present to the public.

In the last couple of years, the research laboratories at companies like Hewlett-Packard and Intel have been working on the next generation of digital sensors. They are smarter, smaller, consume less energy, and they can communicate wirelessly.

Their promise, writ large, is to help link the digital world of computing to the physical world as never before. The payoff would be to bring data-rich measurement, more intelligence and higher levels of optimization to all sorts of fields – including energy, traffic management, food distribution and health care. Lots of companies are working on parts of the broad vision, and I. that oB.M.’s “Smarter Planet” advertising campaign is the probably clearest articulation of the vision.

Royal Dutch Shell and Hewlett-Packard are announcing on Monday a step toward the mainstream use of next-generation sensor technology. The application – on-land oil and gas exploration – points toward the potential gains from advanced sensing systems.

No dollar figure is attached to the multiyear agreement, and Shell isn’t saying where it plans to first try this high-tech prospecting. But the oil company says the vastly more detailed seismic data collection and analysis should help it pinpoint new oil and gas reserves in difficult areas like under salt formations in the Middle East and deep pockets of natural gas in the North America.

Sensors are only one tool among the set of technologies needed in any number of industries. To make complex physical systems smarter also requires advances in storage, networking, data mining and analytics software. Still, the sensors are the vital measurement, data-harvesting and communications technology in the physical world – the digital eyes, ears and nose out there. The sensors may be an ingredient, but an essential one – just as the microprocessor may not be everything in computing, but it is the gateway technology that makes everything else possible.

In seismic prospecting for oil, big “thumper trucks” pound the ground to make sound waves that above-ground sensors then monitor. Today, 10,000 or 20,000 sensors, connected by wires, might be spread over an area 25 miles by 25 miles. With the Shell-H.P. sensing system, hundreds of thousands, up to a million, wireless sensors – about 3 inches by 4 inches – can be spread across a similar area. Each sensor, listening to the underground seismic echoes, is a data channel.

“If you can increase the number of data channels, the better you are able to listen,” explained Wim Walk, a geophysical scientist for Shell.

Hundreds of times more data will be generated with the new system. The raw data will be collected, mined and analyzed to create pictures of the geological formations and petroleum finds deep in the Earth.

Using the new technology, scientists say, opens the door to new levels of clarity – as in the difference between watching “Avatar” in 3-D or a regular theater screen.

via Smarter Sensors Start Going to Work – Bits Blog – NYTimes.com.

God, Keynes, and Clean Energy

Columbia University

Columbia University

NY. Jan. 25. Mark Fulton, “Climate Change Strategist” Deutsche BankAsset Management, spoke at Cary Krosinsky’s class in Sustainable Investing at the CERC, the Center for Environmental Research and Conservation, Earth Institute, Columbia University.

Krosinsky, Vice President of Trucost, recently co-edited and wrote the book Sustainable Investing: The Art of Long Term Performance with Nick Robins of HSBC. He is an Advisory Board member of the Association of Climate Change Officers (ACCO) and founder director of InvestorWatch. Trucost has built and maintains the world’s largest database of carbon emissions and other environmental impacts as generated by the world’s largest public and private companies. Their data and expertise is used by leading global fund managers and asset owners to manage carbon risk. Continue reading

CAFE Standards – Not Meaningless, But Trivial

Pres Obama has raised the CAFE standards from 27.5 mpg to 35.5 mpg, by 2016.  Raising the CAFE standards to 35.5 mpg in 7 (or 26) years is not the change we need. It is very little, and very late. The standard for cars has been 27.5 mpg since 1990 (DieselNet).  However, at least we are starting to move forward. Union of Concerned Scientists provides a good summary.

CAFE standards were effective in increasing new car and truck fuel economy by 70 percent between 1975 and 1988. In 2000 alone, CAFE standards saved American consumers $92 billion, reduced oil use by 60 billion gallons of gasoline, and kept 720 million tons of global warming pollution out of our atmosphere.

Dependence on Foreign Oil. American cars, trucks and SUVs account for approximately 40 percent of all U.S. oil consumption. Much of this oil is imported and our foreign oil reliance continues to grow. U.S. consumers currently spend $1 billion every day to import oil and other petroleum products. Achieving 35 mpg by 2020 as directed by the recently passed energy bill will save 1.1 million barrels of oil per day in 2020—over half the oil the U.S. currently imports from the Persian Gulf.

Environment. For every gallon of gasoline that is consumed, approximately 24 pounds of global warming pollution are released into the air. Drilling, refining, and distributing gasoline account for about 5 pounds of global warming pollution per gallon of gasoline, and burning gasoline during vehicle operation produces another 19 pounds of global warming pollution per gallon. Increasing fuel economy standards to 35 mpg by 2020 can cut annual greenhouse gas emissions by 206 metric tons of carbon dioxide equivalent in 2020.

Economy. A fleet of cars and light trucks that reaches 35 mpg will cost about $1,000 to $2,000 extra per vehicle. This additional cost will be more than offset by the fuel savings consumers will enjoy over the life of the vehicle. Consumer fuel savings along with automaker investment to produce a 35 mpg fleet by 2020 will help spur the creation of more than 170,800 new jobs in the year 2020.”

“It’s important to note that all companies will be required to make more efficient and cleaner cars,” said an unnamed EPA official quoted on the “Personal Money Store“. “We do that by proposing individual standards for each class size of vehicle and then a fleet average for each company. This has the effect of preserving consumer choice – you can continue to buy whatever size car you like, all cars get cleaner.”

The Hummer, the Escalade, seat 5 and get 8 miles to the gallon.  Even if you double the milage, or triple the mileage, you’re talking 16 to 24 mpg. That’s terrible. There are no logical and compelling reasons to buy, drive, or build these vehicles – which is part of the reason for GM’s decent into bankruptcy.

Aside from the environmental problems; we buy petroleum from Iran, Nigeria, Russia, Saudi Arabia, Veneuzeula, and soon, Iraq. There are profound national security problems associated with this, with petroleum, with a dependence on foreign powers for a resource on which our whole economy is based.
We have the technology. The Toyota Prius gets 50 mpg, and has been available since 2001. The new Honda Insight gets 40 mpg. Bright Automotive has announced a cargo van that will get 100 miles to the gallon, and which will be on the road in 2010.

100 mpg vehicles are the change we need.

The next step would be a Plug-In Hybrid that runs on Bio-Deisel.

One problem is that we all are stuck between the rock of the environmental and national security challenges associated with obtaining a resource from potentially or occasionally hostile foreign powers and the hard place of people like the Heritage Foundation, which has been fighting against the CAFE standards since 1991. Back then they said small cars are unsafe, American car manufacturers don’t know how to build small cars so CAFE would cost jobs, and big cars are our birthright. Today they say government standards don’t work, it will cost more to retool auto plants to build cars people need so we should just keep churning out vehicles that people don’t need and can’t afford, and we have the right to drive trucks (2009). A Heritage Foundation post from 2001 claimed that a) small cars are unsafe, and b) because oil imports have risen the CAFE standards have failed. Oil imports have risen because demand is inelastic and domestic wells have run dry. The Heritage Foundation doesn’t believe in “peak oil” it says the taxpayers should subsidize oil shale. As a taxpayer, I’d rather subsidize solar and wind than oil shale, especially since the subsidies will be lower.

But the fact of the matter is that there are no Jed Clampetts in Louisiana, Oklahoma, or Texas shooting at varmints and hitting gushers. The new “Texas Tea” will be brewed in a solar tea kettle. Or it will be air temperature – and pretty hot.

Republican Alternative Energy: Coal, Oil, & Nuclear Power

The Republican Road to Recovery”  according to John Boehner, Eric Cantor, Mike Pence, Thaddeus McCotter, Cathy McMorris Rodgers, John R. Carter, Pete Sessions, Kevin McCarthy, David Dreier, Roy Blunt, who signed it, “Keeps Energy and Fuel Costs Low.” It mentions wind and solar, but focuses on coal, oil, oil shale, offshore drilling, and nuclear power.

The document says “Republicans want energy independence with increased development of all natural resources, including renewable energy sources, such as wind and solar.” It doesn’t mention “global warming.” It mentions the term “greenhouse gases” once, stating, incorrectly, that nuclear power doesn’t produce greenhouse gases. Mining, processing, and transporting nuclear fuel, and managing radioactive wastes, produces tremendous amounts of greenhouse gases.

It points out that “Senators Ted Kennedy and John Kerry … have long fought a renewable wind project in waters off of Massachusetts…. Cape Wind, would provide 75 percent of the electricity demand for Cape Cod, Martha’s Vineyard, and Nantucket island. “

The document focuses on coal, oil, and nuclear power. These are not clean, renewable, sustainable energy sources.  Ultimately, therefore, it attempts to “greenwash” coal, oil, and nuclear power.

the Administration has already taken steps to hinder the leasing of the Outer Continental Shelf (OCS) which is estimated to hold at least 19 billion barrels of oil, and Democrats have long championed the prohibition on drilling in the Arctic Coastal Plain – which is estimated to hold 10.4 billion barrels of oil. Furthormore, Democrats continue to block the procurement of advanced alternative fuels from sources such as oil shale, tar sands, and coal-to-liquid technology. U.S. Oil shale alone could provide about 2.5 million barrels of oil per day.

Republicans also support opening the Arctic Coastal Plain to energy exploration and development.

And despite expert agreement that nuclear power is reliable, clean, and affordable without producing air pollution or greenhouse gases, Democrats continue to block its development.

Republicans realize that there are better solutions to restore freedom and security in our energy market.  Republicans recognize the importance of exploring for American oil and gas in an envionronmentally-sound manner and support immediately leasing oil and gas resources in the OCS through an an expedited and streamlined procedure.

Republicans support removing government barriers to new nuclear reactors as long as they meet strict security and safety criteria.

Americans realize that the future of energy is in alternative and renewable sources. In order to promote the development of renewable and alternative energy, Republicans support promoting the leasing of federal lands which contain alternative energy such as oil shale. … spurring a market by using fuels derived from oil shale, tar sands, and coal.