Tag: barack obama

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U.S. Energy Department: Peak Travel Season Could Cost Drivers 6% More

The Nicholas Institute for Environmental Policy Solutions at Duke University

Gasoline prices have edged off the pedal in recent days, but the Energy Information Administration this week released new data showing motorists will pay about a quarter more per gallon during peak travel season—April through September. Prices will top out at $4.01, on average, in May. The last time gasoline spiked to such levels was 2008, causing a much different reaction from motorists in part because prices had shot up 35 percent in just six months.

While escalating gasoline prices are driving some folks to hybrid dealerships, only a few models offer a speedy return on investment. With the exception of the Prius and Lincoln MKZ, and the clean-diesel Volkswagen Jetta TDI, most clean-car technologies take more than a decade to pay owners back.

Rising oil prices are feeding a population boom in North Dakota, with the town of Williston holding the distinction of fastest-growing town after its population rose 8.8 percent in about a year. Economists surveyed by CNNMoney say the economy can handle the current high oil prices of around $100 a barrel, but that a further spike in oil prices triggered by a confrontation with Iran could be one of the biggest threats to the economy.

Smoggy City Makes Strides in Clean Air

Mexico City only a few years ago rivaled Los Angeles and Houston as a smog capital, but thanks to air-scrubbing innovations such as vertical gardens and a popular bicycle sharing program, the city is becoming a leader in green efforts. Although California is slipping in the smog and air toxics categories, the state topped a list ranking states’ preparedness to address such challenges as rising sea levels that a warming world portends. Alaska, Maryland, Massachusetts, New York, Oregon, Pennsylvania, Washington and Wisconsin also ranked high.

Realclimate.org reports that scientists’ predictions about human-caused climate change pushing the mercury up were on target. What’s more, a warming planet may be bad for bunnies threatened by the loss of sagebrush habitat and snow, where they hide from predators. Tennessee, meanwhile, enacted a law that would let teachers challenge climate change and evolution in the classroom.

Energy vs. Environment

A new slate of clean- and renewable-energy initiatives—part of the long-term “Operational Energy Strategy” aimed at reducing the military’s dependence on fossil fuels—was announced this week. The Obama administration aims to build three gigawatts of solar, wind and geothermal power capacity on U.S. military installations by 2025. The Army, meanwhile, is building fuel cell and hybrid vehicles.

Actor Matt Damon has signed on to “The Promised Land” a film critical of hydraulic fracturing, or fracking. Meanwhile, promoters of the pro-fracking film “FrackNation” are raising funds on Kickstarter. Outside of Hollywood, the Department of the Interior is poised to propose guidelines governing fracking on public lands. For those opposed to fracking for fear that natural gas will diminish demand for renewables, the Center for American Progress says that in the long term, the two are not necessarily in opposition, with renewables becoming increasingly competitive as natural gas production nears a peak sooner than some might predict.

A new energy poll says 61 percent of Americans said they’d be more likely to vote for a presidential candidate backing more natural gas. The same study concludes many Americans—six out of 10—are unfamiliar with hydraulic fracturing.

Payouts related to the BP oil spill, the largest in history, have recently increased four-fold. Texas, a recipient of some of the funds, announced plans to spend its money on long-term coastal conservation. Oil drilling in the Gulf is expected to see its biggest year since the 2010 spill, with predictions for eight more oil rigs, even though signs of the disaster’s effect on the environment still remain.

India has forbidden its airlines from complying with a European Union law that went into effect Jan. 1 that charges airlines using European airports for their carbon emissions. Indian Environment Minister Jayanthi Natarajan called the requirement a “deal-breaker” for global climate change talks.

Scientists have finally extracted sunlight from cucumbers. No, not really, but in a 2011 essay Vaclav Smil used the fictional cukes from Jonathan Swift’s 1726 novel Gulliver’s Travels to make a point about today’s serial infatuations with “it” technologies—simple solutions to complex energy problems. Bloomberg’s Eric Roston suggests that President Obama’s “all of the above” strategy—which consists of various “it” technologies—would do well to “focus not on our infatuations with particular energy sources but on the market in which they operate.”

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

 

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Obama Moves Ahead with Oil Sanctions as Gas Prices Climb

The Nicholas Institute for Environmental Policy Solutions at Duke University

Before Congress headed home for spring recess, the Senate, with a rate vote of 100, approved President Obama’s new round of sanctions designed to deter Iran’s nuclear ambitions. The president’s decision was based on an analysis of current oil supply and the likely effect of further sanctions on prices. The Senate also shot down the president’s bid to reduce subsidies to oil producers.

Oil prices have climbed this year amid lingering tensions with Iran, with the price of gas now averaging around $3.92 a gallon—and experts are warning more increases are on the way. The U.S., France and other nations are considering the release of some emergency oil supplies to stop further rises in prices. Experts are skeptical about the impact tapping the U.S. Strategic Petroleum Reserve would have on prices. Reuters reports that with this decision, timing is everything.

Back home in their districts, legislators are using oil prices to fuel campaign rhetoric. Rep. Bobby Schilling, R-Colona, is finding photo ops at the pump, pumping $100 into his Chevy Suburban. Meanwhile, La Tarndra Strong, who manages a trucking company in North Carolina, said high fuel prices are slicing her razor-thin margin.

Officials Eye Cap-and-Trade Revenues for Transit

In California, some officials are eyeing revenues from the state’s cap-and-trade system to get drivers out of their cars. The cap is envisioned as a financial backstop to the state’s high-speed rail plan. Gov. Jerry Brown’s budget indicates that cap-and-trade could provide up to $1 billion in revenue. Building high-speed rail up and down the Golden State could be just one plan for cap-and-trade monies. Former Assembly Speaker Fabian Núñez advocates using revenues to boost clean tech, while State Sen. Kevin de León wants to see at least 10 percent of the revenues be put toward greenhouse gas reduction projects in disadvantaged communities. Some farm groups, meanwhile, are vying for funds to go to supporting agricultural practices that cut greenhouse gases.

Further north, Washington State Gov. Christine Gregoire signed legislation helping to shield drivers from liability who lend their cars as part of the nation’s burgeoning car share movement. Whereas some companies such as Zipcar and Car2go provide fleets for sharing, person-to-person programs use software to link individuals who want to rent out their cars to people who need a short-term lift. But most automobile insurance companies currently cancel the policies of drivers who are part of this growing “collaborative consumption” movement.

Nuclear Worries Continue as Wind Farms Appear on Horizon

Federal investigators have kept a troubled Southern California nuclear reactor closed as they investigate why tubes carrying radioactive water are decaying rapidly. Concern is mounting in nearby coastal cities—fueled by Fukushima fears—prompting some to call for the plant’s permanent closure. Germany accelerated its timetable for moving off nuclear in response to last year’s tragedy in Japan. Two plants to be built in Britain are the latest to fizzle. But phasing out nuclear may not boost renewables.

The U.K.’s Shetland Island could be home to the world’s most productive wind farm after receiving approval to move ahead with construction Wednesday. In the U.S., an offshore wind turbine in Virginia may be the first in the country. Five states have reached an agreement to speed the approval process for offshore wind farms in the Great Lakes.

Apple unveiled plans for the nation’s largest private fuel cell energy project. The project will power a data center using hydrogen extracted from natural gas.

Scientists Dissect Causes of “Weather Weirding”

The National Oceanic and Atmospheric Administration found that March’s “meteorological madness” with record-setting highs was due mostly to freakishly random factors, with only a small assist from human-induced climate change. IPS calls this “extreme weather” the new normal, and there may be more crazy weather in our future. The changes are causing some scientists to look to the ice.

A paper now out in Nature shows how increased CO2 in the atmosphere led to a series of sudden and extreme global warming events that occurred between about 55.5 and 52 million years ago.

Stopping climate change would cost consumers pennies per day, a new U.K. study concludes.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

 

 

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Record Temperatures May Bring More Than Just Early Spring Flowers

The Nicholas Institute for Environmental Policy Solutions at Duke University

Washington, D.C.’s famed cherry blossoms—now celebrating their centennial—decided to spring one on visitors, peaking well before the arrival of most Cherry Blossom Festival–goers. Spring’s forward leap is also causing coupling confusion among flowers and pollinators.

Above-average temperatures are responsible for these early blooms, marking this the fourth warmest winter on record, according to the National Oceanic and Atmospheric Administration (NOAA). NOAA predicts the warm streak will continue for the next three months—particularly in the already steamy southern states of Louisiana, Alabama, and Mississippi. Several newly released studies make the connection between this extreme weather and man-made heat-trapping pollution, says blogger Theo Spencer. Updated records of global temperatures, meanwhile, indicate the world has warmed by around 0.75 Celsius since 1900.

These warming temperatures may also be putting some five million people in the United States at risk for increased coastal flooding, according to a new Climate Central study. South Florida, southern Louisiana, and the Carolinas top the list of states with the most land to lose if sea level rises one meter. By the end of the century rising seas could cost near $2 trillion if temperatures keep rising. Nearly $1.4 trillion in costs could be avoided, Reuters reports, if temperature increases were limited to near 2 degrees Celsius.

And with the spring thaw comes reports of the ongoing melting of Arctic sea ice, opening new shipping lanes in the harsh region. One agency is looking for ways to use underwater sensors to handle the increased activity without harming the environment.

Cheap Natural Gas, Costly Crude

Mild temperatures are also driving natural gas futures lower, with prices hovering around their ten-year low. The dip in natural gas prices is bad news for investors, but good for farmers who will get an extra boost in the form of low fertilizer prices, says Forbes.

While the shale boom and warmer Eastern climes are causing natural gas prices to plummet, the upward march at the gasoline pump continues unabated. According to AAA, gasoline is over $4 a gallon in seven states—Alaska, California, Connecticut, Hawaii, Illinois, New York and Washington—as well as the District of Columbia. A statistical analysis of 36 years of monthly gas prices and domestic oil production by the Associated Press revealed there is no link between U.S. oil production and gas prices at the pump. Meanwhile a new survey finds a number of academic economists say market forces, not government policy, account for changes in gasoline prices.

The high prices, up more than 17 percent this year, are taking a toll on consumer confidence, nudging sales of electric motorcycles, raising the price of hybrids and causing an uneasiness in the markets.

President’s Energy Tour

A new poll suggests persistently high gasoline prices are eroding President Obama’s public approval numbers. The White House points to new Energy Information Administration data to say the president is doing more than enough to produce energy on federal lands, while others—citing the same data—claim he is doing too little.

To underscore his efforts, the president set out on a four state, two-day tour that wraps up today in Cushing, Okla. Politico reports the President will sign a directive expediting permits for the southern portion of the Keystone XL pipeline in Cushing—where the southern pipeline is slated to begin. Midwest oil hits a bottleneck in Cushing on its way to the Gulf of Mexico, according to CNN.

Signing the permit is a move sure to be unpopular with environmental groups and Obama faces a taste of green anger today in Columbus, Ohio, where he’s concluding his tour with an address at Ohio State University. Students, including some former Obama campaign workers, are planning a rally to push the president away from fossil fuels, according to 350.org. However, a new a Gallup poll released today shows 57 percent of Americans support the Keystone pipeline

In Cushing, Obama will also be talking about his commitment to domestic energy production—dubbed the “all of the above” energy strategy. Author Bill McKibben blasts this strategy: “Burning all the oil you can and then putting up a solar panel is like drinking six martinis at lunch and then downing a VitaminWater.” Others oppose it for different reasons: the National Review’s Jim Geraghty says it “rejects many options,” while Allen Schaeffer of the Diesel Technology Forum worries about policies “that clearly prioritize favored energy sources over other energy sources.”

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

 

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More than 100 Coal Plants Shutting—But How Much Difference Will It Make?

The Nicholas Institute for Environmental Policy Solutions at Duke University

Editor’s Note: This is the last edition of The Climate Post with writer Mason Inman. Watch for the Post’s return March 22 with a new writer, the Nicholas Institute’s Director of Strategy and Operations, Jan Mazurek.

After public pressure, Chicago will shut two aging coal-fired power plants, and the owner of one of the power plants, Midwest Generation, may shut its other four coal plants in Illinois. Since the start of 2010, more than 100 coal plants have been slated for early retirement.

A major reason for coal plants shutting has been public opposition to pollution from coal. Also, looming requirements by the U.S. Environmental Protection Agency (EPA) for stringent pollution controls could take a toll on the coal industry, while boosting the market for pollution control devices. One huge coal plant in New Mexico lost a legal battle with the EPA to avoid having to install a more effective type of pollution-control equipment.

But what really has the coal industry “frightened” is cheap natural gas, the result of a boom in hydraulic fracturing, or fracking, of shale deposits. But demand for natural gas may soon grow, since more natural gas vehicles are already in the works, and an announcement by President Obama that he’ll expand tax credits for alternative vehicles to include those powered by hydrogen and natural gas.

How Clean is the Clean Energy Standard?

Meanwhile, Sen. Jeff Bingaman introduced the Clean Energy Standard Act of 2012, which would force the largest utilities to meet targets starting in 2015 that by 2035 would ramp up to require 84 percent clean energy—defined as sources that create less greenhouse gases than modern coal plants. If enacted, which analysts rated as unlikely, the law would benefit natural gas, at least initially, but several renewable energy groups endorsed the bill.

However, last month a study led by former Microsoft executive Nathan Myhrvold found that switching from coal to gas would lead to only a slight drop in warming by the end of the century, so achieving “substantial reductions in temperatures” compared with use of coal would require “rapid and massive deployment” of very low-emissions energy such as solar and wind.

This fits with an analysis last year from the National Center for Atmospheric Research, whose lead researcher concluded switching to natural gas “would do little to help solve the climate problem.” Such findings led activist Bill McKibben to argue natural gas is not a “bridge fuel,” but rather “a rickety pier extending indefinitely out into a hotter future.”

Meanwhile, plans are under way to expand exports of U.S. coal with new shipping terminals in the Pacific Northwest and a “tremendous increase” in capacity at a Louisiana port. At CERAWeek, a major meeting for the oil and gas industry, the most popular discussion about U.S. natural gas is the “prospect of exporting it,” an issue Deputy Energy Secretary Daniel Poneman said the administration is “looking at closely.”

China Puts on the Brakes

The growth of China’s coal production is expected to slow down—part of a general slowing for the country in 2012.

In the annual meeting of China’s parliament, Chinese Premier Wen Jiabao announced a lower target for economic growth—7.5 percent, the lowest in seven years—and would shift from an export-focused economy to instead emphasize domestic consumption.

Wen also said the country will “put an end to blind expansion in industries such as solar energy and wind power”—possibly referring to oversupplies of wind turbines and solar panels. China’s wind industry has exploded from six turbine manufacturers in 2004 to more than 100 today, leading to manufacturing capacity that’s larger than the demand and a large number of projects awaiting connections.

China had “imbalanced, uncoordinated, and unsustainable development,” Wen said. The country had missed half its major targets for energy conservation and environmental protection, largely because they “have not transformed the economic development model,” said Zhang Ping, minister of the National Development and Reform Commission.

The government also announced it will create stricter laws for air pollution, and an official said two-thirds of Chinese cities would likely fail to meet the new standard.

Hockey Stick in a Knife-Fight

Climate researcher Michael Mann has been under attack by Virginia’s Attorney General, Kenneth Cuccinelli, who has been trying to force Mann’s former employer, the University of Virginia, to release documents on Mann’s work so he could “determine whether or not fraud had been committed.” But the Virginia Supreme Court turned down Cuccinelli’s request, which the Union of Concerned Scientists called “a victory for science in Virginia.”

Mann has become a lightning rod for his research on ancient climates and for creating the famous “hockey stick” graph showing rising temperatures in recent decades—a tale recounted in his new book, The Hockey Stick and the Climate Wars.

He said scientists are in a tough position, because they’re in a “knife-fight” with climate change skeptics, but scientists “can’t play by the rules of knife-fighting ourselves.”

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Rising Oil, Gasoline Prices Push Politicians and Reporters to Utter “Nonsense”

The Nicholas Institute for Environmental Policy Solutions at Duke University

In a major speech on energy at the University of Miami, President Obama said rising gasoline prices are a “painful reminder” of the need for alternatives. He was on the offensive, trying to counter criticisms of the GOP presidential candidates—including Newt Gingrich, who promised he’d get gasoline down to $2.50 a gallon.

Countering calls to “drill, baby, drill,” Obama called the GOP candidates’ ideas “bumper sticker” strategies, “not a plan.” Reiterating his call for an end to oil and gas tax breaks, Obama called them “outrageous” and “inexcusable.”

Also, some Democrats called for dipping into the U.S. strategic oil reserves to try to bring down prices. However, this notion seemed based on the misconception that the availability of oil in the U.S. has a big influence on the price.

Rising oil prices, argued Bloomberg columnist Caroline Baum, “tap into a barrel of nonsense,” making people “go all wobbly in the head.” Backing up that idea is Media Matters’ laundry list of misconceptions common in energy reporting, which concluded that the only way to become less vulnerable to oil price spikes is to “use less oil. Period.”

Move To Natural Gas—But Will It Help?

In his speech, Obama announced a new $30 million research grant to boost the number of vehicles running on natural gas.

Natural-gas-powered trucks are becoming more popular among big fleets, refueling stations are spreading, and some companies are creating better storage tanks for compressed natural gas.

This push for natural gas vehicles is “the hottest energy fad in Washington” according to a Wall Street Journal editorial titled “Boone-Doggle,” since the fad has been spurred in part by petroleum billionaire T. Boone Pickens and his “Pickens Plan.”

Two former U.S. officials argued for a twist on the natural gas vehicle, calling for cars that can run on methanol, an alcohol that can be “efficiently and inexpensively produced from natural gas,” according to an MIT report.

Globally, natural gas vehicles have increased exponentially, with most of the growth in the past decade in Asia and Latin America.

However, a new climate modeling study by Nathan Myhrvold, former Chief Technology Officer of Microsoft, found that switching from coal to natural gas would do little to slow global warming.

Meanwhile, in the Washington Post, a bipartisan group of current and former Congressmen, called for taxes on greenhouse gas emissions as a way to fight climate change, lower oil imports and raise revenue that could help spur clean energy industries and reduce the debt. Beyond the authors of this op-ed, there may be further bipartisan support for such a plan.

EPA Greenhouse Gas Limits Face Appeals Court

In federal court this week, energy industry groups challenged the U.S. Environmental Protection Agency (EPA) over its move to regulate greenhouse gas emissions.

One line of argument being used is the science on climate change is not settled, so the EPA should not be allowed to regulate greenhouse gases. By putting climate science on trial, it’s been dubbed the “Scopes trial for climate change.”

The plaintiffs are also arguing that in issuing the “tailoring rule,” which limits greenhouse gas rules only to the biggest emitters, the EPA overstepped its bounds.

The judge hearing the case found the tailoring argument strange, saying that if the alleged harm is regulatory burden, but the remedy is a heavier regulatory burden, then the plaintiffs’ argument “doesn’t even make good nonsense.”

Gene Therapy for Climate Change

Climate Central lampooned geoengineering—ideas for planetary-scale projects to cool Earth—with its own set of not-so-serious proposals, including giving Maalox to livestock.

A research project at the Mote Marine Laboratory sounds like it might be another of these far-fetched plans, but it’s for real. A geneticist is investigating gene therapy for coral reefs—or, more specifically, for the bacteria that live symbiotically with the corals—to help them adapt to climate change.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Climate Researcher Lied to Get Documents, Triggering Ethics Debate

The Nicholas Institute for Environmental Policy Solutions at Duke University

A top climate researcher—Peter Gleick, head of the Pacific Institute—admitted he lied to obtain documents from the Heartland Institute, which he then leaked to media and revealed the organization’s plans to challenge the scientific consensus on climate change.

Gleick resigned from the board of the National Center on Science Education, and stepped down as chairman of the American Geophysical Union’s (AGU) taskforce on scientific ethics.

His admission has triggered an ethics debate in the climate community, with ethics expert Dale Jamieson calling Gleick’s actions “unethical” but adding, “relative to what has been going on on the climate denial side, this is a fairly small breach of ethics.”

Cognitive scientist Stephan Lewandowsky argued that “revealing to the public the active, vicious, and well-funded campaign of denial … likely constitutes a classic public good,” against which the ethics of Gleick’s deception have to be weighed.

The president of the AGU said the organization was disappointed with Gleick, whose actions were “inconsistent with our organization’s values.” NASA climate researcher Gavin Schmidt said “Gleick’s actions were completely irresponsible.” Bryan Walsh of Time argued Gleick’s actions “have hurt … the cause of climate science.”

In the U.K., a freedom of information act request for details on the funder of the Global Warming Policy Foundation, a climate change skeptic group, was denied by a court on the grounds the foundation is not influential enough.

PTC Could Equal Permanent Tax Credit

The Production Tax Credit (PTC) that aids wind energy is set to expire at the end of 2012, but some legislators are fighting to save it, with Sen. Michael Bennet of Colorado arguing that “every minute counts” in trying to forge a deal.

To avoid such struggles over regular renewals of the PTC, President Obama proposed a new corporate taxation plan that would make the subsidies permanent, as well as make permanent a research-and-experimentation tax credit that expired Jan. 1.

High Oil Prices a Drag

Since the start of the year, oil prices have been on the rise, putting a drag on economic recovery in the U.S., pushing up consumer prices and causing overall inflation—risking a repeat of early 2011, when high oil prices nearly pushed the country back into recession.

President Obama was scheduled to speak about the issue Thursday, and White House spokesman Jay Carney said that the rise in prices—despite a drop in domestic consumption and rise in production—“tells you that there are other things beyond our control.”

The threat high oil prices pose to economies across developed countries could trigger the International Energy Agency to release more oil from strategic reserves, as was done in spring 2011, argued Reuters analyst John Kemp.

The rising oil prices have U.S. consumers wondering why. The prices, experts said, have stayed high because of rising consumption in emerging markets, as well as the threat that Iran’s oil exports may be cut off. An International Energy Agency official said that other countries would be able to make up for a loss of Iran’s exports, which had been 2.2 million barrels a day, and to boost production, Saudi Arabia may restart its oldest oil field.

In response to the European Union’s decision to embargo Iranian oil, Iran halted oil shipments to Britain and France, and possibly other European countries. Major shipping countries are refusing to pick up Iranian oil, with one shipping executive saying it would be like “getting leprosy.”

GOP presidential candidate Newt Gingrich said he would get gasoline down to $2.50 a gallon. However Bryan Walsh said no president can deliver that—at least without making the U.S. economy tank.

Tar Sands Tussle

The U.S. House of Representatives passed a bill that would require approval of the Keystone XL pipeline that would carry diluted tar sands from Canada to Texas, which President Obama had earlier nixed.

The European Union held a vote on whether to ban imports of oil made from Canadian tar sands, but it ended in a deadlock.

The amount of tar sands is small compared with the amount of natural gas and coal in the world, so the tar sands alone don’t pose a major threat to the climate, argued a study in Nature Climate Change.

Some took this to mean that Canada’s tar sands are “not so dirty after all.” However, study leader Andrew Weaver—a climate modeler at the University of Victoria in Canada—argued that use of tar sands is “a symptom of the bigger problem of our dependence on fossil fuels,” and policy makers should avoid commitments to infrastructure supporting fossil fuel dependence.

Meanwhile, another study of tar sands sites found levels of air pollution—in particular nitrogen dioxide and sulfur dioxide—were comparable to air above a large power plant.

Small Feet, Large Footprint

A new report on the carbon footprint of a diminutive creature—shrimp—shows they’re worse than cattle, at least when raised in aquaculture. When coastal mangrove forests are cleared to create shrimp farms, it’s the “the equivalent of slash-and-burn agriculture,” said study leader Boone Kauffman.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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U.S. May Be “Saudi Arabia of Natural Gas,” But Shale Gas Rush Is Slowing

The Nicholas Institute for Environmental Policy Solutions at Duke University

Following on last week’s State of the Union address that supported hydraulic fracturing, or “fracking” in shale gas deposits, President Obama called the U.S. “the Saudi Arabia of natural gas” and unveiled a new proposal to provide tax breaks to boost the use of natural gas as a fuel for trucks.

But the market has a glut of natural gas due to widespread use of the drilling method, pushing prices to their lowest in a decade and deflating the shale gas rush, leading large producers to cut production to try to bring the price up.

The House of Representatives held a hearing on fracking to follow up on a recent U.S. Environmental Protection Agency (EPA) report that found fracturing fluids were the likely cause of contaminated groundwater in Pavilion, Wyo. At the hearing, a filmmaker who made the documentary “Gasland” was arrested for filming without a press credential—an action that Rep. Jerrold Nadler (D-NY) said was unprecedented.

Meanwhile, the EPA began new tests of groundwater in Dimock, Pa., after becoming aware of data that suggests drinking water contamination near fracking sites.

In Europe, shale gas exploration would be covered by existing regulations on water contamination and use of chemicals, so there is no need for new regulations at this point, a European Commission report said.

Also, the International Energy Agency urged the G20 to put stringent rules on shale gas production, while also planning a workshop to consider ways of easing obstacles to shale gas production around the world, with the aim of producing a “Magna Carta” of rules to guide the industry for years to come.

Shale gas is off to a slow start in Europe, and is unlikely to challenge Russia’s dominance of the natural gas market there anytime soon, argues Foreign Policy‘s Steve LeVine. Exxon announced disappointing results from shale gas wells in Poland, and Bulgaria banned fracking, following the lead of France.

Battery Bankruptcy

In Obama’s State of the Union address last week Obama mentioned battery makers as an example of clean-tech. The next day Ener1—whose subsidiary, EnerDel, makes electric vehicle batteries and received $118 million in green stimulus grant money—filed for bankruptcy.

Some called this a repeat of Solyndra, the solar panel manufacturer that went bankrupt, and which Obama had touted as a model cleantech business.

However, many others shot back, pointing out that Ener1 is different in many ways. Ener1 will continue operating during bankruptcy proceedings, rather than shutting down as Solyndra did. Also, Ener1 received widespread support over the past several years, netting a deal with the United States Advanced Battery Consortium and a U.S. Department of Defense research grant, and enjoyed bipartisan support.

Overall, it has been a tough time for electric-car battery makers, with demand for electric vehicles lower than expected. But the future is bright for the sector, argued Bloomberg New Energy Finance, with goals to get a million electric cars on the road within the next several years in both China and the U.S.

Also, the California Air Resources Board mandated that by 2025, roughly one in seven cars sold in the state would have to be plug-in hybrid, electric, or fuel-cell vehicles—a standard that 10 other states may likewise adopt.

Biofuels’ Big Footprint

Some of the most popular biofuels—made from palm oil or soybeans—cause more global warming than regular fossil fuels, and nearly as much as tar sands, according to a European Commission (EC) evaluation of biofuels, which was leaked to Euractiv.

Under the European Union’s 2009 Renewable Energy Directive, for biofuels to count toward the goal of increasing renewable energy, the biofuels must have substantially less emissions than regular gasoline. The EC will use the data on emissions when issuing new legislative proposals on biofuels this spring.

Today’s biofuels have such large emissions in large part because tropical forests are often cleared to grow them—and a new study found that such forests store about 20 percent more carbon than previously thought.

Carbon Labels, Glaciers Disappear

British supermarket chain Tesco pledged in 2007 to label all its products with their carbon footprint, but the company announced it has given up the plan since it proved too difficult, requiring several months of work for each product, and because other companies didn’t follow their lead.

In Chile, a new reason for glacier retreat arose: a thief stole five tons of ice from the Jorge Montt glacier, which he planned to sell as designer ice cubes for cocktails.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Obama Calls for “All of the Above” Energy Strategy for America

The Nicholas Institute for Environmental Policy Solutions at Duke University

In President Obama’s third State of the Union address, he devoted more time than before to covering energy issues, calling for an “all-out, all-of-the-above” approach to boosting production of every kind of domestic energy, fossil as well as renewable.

Obama also asked the country to imagine “a future where we’re in control of our own energy,” which seemed to be a call for energy independence, a goal set out by all U.S. presidents going back to Nixon.

He also said he supports opening up more offshore areas for exploration and development of oil and gas. The president of Shell Oil said it seems the federal government has increased its pace of issuing permits for deepwater drilling.

He also expressed support for shale gas, saying the country had natural gas supplies that could last “nearly 100 years.” However, a new analysis by the U.S. Energy Information Administration (EIA) said the country may only have about half as much shale gas as the EIA’s 2011 estimate held—and the most extensively drilled shale area, the Marcellus, was downgraded by about two-thirds. For any drilling on public lands, Obama will require companies to disclose the chemicals they use.

The result was a variety of aims that could conflict, since boosting production of fossil fuels could stymie renewable energy and boost greenhouse gas emissions.

Climate change only showed up in the speech once, when Obama blamed partisan division in Congress for delaying climate legislation. He indicated there is no reason Congress shouldn’t at least set a “clean energy standard”—the kind of effort that could sharply cut emissions at low cost, according to an analysis last year by the EIA.

Changes to Taxes and Trade

Another theme in Obama’s speech was an “economy built to last,” calling for a resurgence of U.S. manufacturing. A key part of this would be clean tech, as Obama said, “I will not walk away from … clean energy.” He also touted a wind turbine manufacturer as an example of a U.S. company creating domestic jobs.

To help protect domestic jobs, he announced the creation of a Trade Enforcement Unit that will investigate “unfair trade practices in countries like China,” apparently a reference to recent scuffles over China’s support for solar panel manufacturers.

Obama also argued companies should not get tax breaks for moving jobs overseas. There has been some criticism of green stimulus money supporting jobs overseas and now Evergreen Solar, the United States’ third-biggest solar panel manufacturer, announced plans to shut down its main U.S. factory and open another in China.

Obama also called for an end to tax breaks for the petroleum industry. “We have subsidized oil companies for a century,” he said. “That’s long enough.” Obama has urged such a move several times before, as has Fatih Birol, chief economist of the International Energy Agency, who said cutting fossil fuel subsidies would get the world halfway to reaching ambitious goals for cutting greenhouse gas emissions.

However, fuel price hikes have sparked protests—as when Italy raised taxes and Nigeria lowered subsidies.

Oil Market Ratchets Up

Meanwhile, the European Union adopted a ban on importing Iranian oil, to be phased in by July 1, to try to stop Iran from developing nuclear weapons.

In retaliation, Iran is considering immediately ceasing oil sales to Europe, and again threatened to close the Strait of Hormuz, the world’s most important oil chokepoint, leading the International Monetary Fund to warn rising tensions could cause oil prices to spike, joining a chorus of earlier warnings.

In case of a shut-down, Saudi Arabia’s leaders said oil could continue flowing through alternate routes, and make up for much of the loss of Iranian oil—also admitting a preference for oil prices to remain around $100 a barrel.

In case of such oil or gas price spikes, six Democrats in the U.S. House of Representatives introduced the Gas Price Spike Act to apply a windfall tax that would capture most of the revenue that goes beyond “a reasonable profit.” The money raised would help fund fuel-efficient cars and mass transit systems.

Regardless of acute geopolitical turmoil, high oil prices are here to stay, since oil’s “tipping point has passed” and the “supply of cheap oil has plateaued,” argued an article in Nature.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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U.S. Rejects Tar Sands Pipeline from Canada—For Now

The Nicholas Institute for Environmental Policy Solutions at Duke University

Under pressure from Congress to make a decision on the Keystone XL pipeline, planned to connect Canada’s tar sands region with the U.S. Gulf Coast, the Obama administration has decided to reject the pipeline proposal.

“This announcement is not a judgment on the merits of the pipeline, but the arbitrary nature of a deadline” that did not allow enough time to finish the environmental impact assessment, said President Obama. Republicans who supported the pipeline say they will continue to fight for it, and have asked Secretary of State Hillary Clinton to testify before Congress on the decision.

The company that wanted to build the pipeline, TransCanada, said earlier this week it was moving ahead with its plans despite the political wrangling. Also, the government of Alberta, the province at the center of Canada’s tar sands activity, had been urging the U.S. Environmental Protection Agency to ignore greenhouse gas emissions and climate change impacts when evaluating the pipeline, according to newly released documents.

But with the decision issued by the U.S. State Department, now the company will have to start over and reapply, and the government might not offer an expedited review. TransCanada may reapply within weeks proposing a new route avoiding Nebraska’s ecologically sensitive Sand Hills region, above a portion of the vast Ogallala Aquifer.

Obama reportedly called Canadian Prime Minister Stephen Harper to explain his decision, and Harper said he hoped the pipeline would eventually be approved. Harper is also supporting another pipeline to Canada’s Pacific coast that would facilitate exports to Asia, in particular to China. However, pipeline approval is more difficult in Canada than the U.S., and there is considerable opposition to a Pacific pipeline, a Reuters analyst said.

The decision was a “brave” call, said Bill McKibben, branded in the Boston Globe as “the man who crushed the Keystone XL pipeline.”

However other commentators—even those who took the decision as good news—argued it won’t stop Canada’s tar sands from flowing, and thus won’t reduce greenhouse gas emissions. Others called the decision “a gift” to the GOP.

Shale Gas Versus Alternatives

Although world oil prices and U.S. gasoline prices were at all-time highs in 2011, in the U.S. natural gas prices have been plummeting, reaching their lowest in a decade in a “classic case of oversupply.” The price has dropped lately because of a mild winter requiring less heating, a boon to consumers and businesses; the longer trend has been driven by the advent of shale gas drilling techniques, which now account for about a quarter of U.S. natural gas production.

There has been limited shale gas development outside the U.S., and prices in most of the rest of the world have remained much higher.

Although several years ago the U.S. was planning to import large amounts of liquefied natural gas and built ports to receive it in tankers, now the country is considering exporting natural gas. But such a move would have wide-ranging impacts that are difficult to unravel, according to a new report from the Brookings Institution; the U.S. Energy Information Administration said exporting natural gas would likely push domestic prices up.

And an MIT study simulated the impacts a steady supply of cheap shale gas would likely have on the U.S. economy and found it would in many ways benefit the economy over the next couple of decades, but that it could boost greenhouse gas emissions and stunt the growth of renewable energy and other alternatives.

Renewables Reach New High

Global investment in renewable energy hit a new record in 2011, reaching $260 billion, up 5 percent from 2010. Wind investment fell 17 percent from 2010, while solar investment grew by a third, so spending on solar was twice the spending on wind. The growth of solar was attributed in large part to plummeting photovoltaic panel prices.

Meanwhile, manufacturers of both solar panels and wind turbines are being squeezed by oversupply, leaving them with low profit margins.

In the U.S., renewables investment grew by a third, to $56 billion, helping the U.S. to reclaim the title of world’s biggest clean energy investor. However, in 2011 the country also saw the end of “green stimulus” money and federal loan guarantees, and its Production Tax Credit will end at the close of 2012, so future investment onward may drop unless new support for renewables is brought in.

With the drop in wind energy investment, Vestas, the world’s largest turbine manufacturer, is laying off more than 2,000 employees globally, about 10 percent of its workforce. It said it may layoff another 1,600 in the U.S. if the Production Tax Credit is not extended.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Big Businesses’ Call for Climate Action: Strong Treaty, More Aid

The Nicholas Institute for Environmental Policy Solutions at Duke University

A group of 285 large investors, representing more than $20 trillion in assets, urged world governments to forge a binding treaty at upcoming climate negotiations in Durban, South Africa, and said global spending has not been nearly enough to keep warming below 2 degrees Celsius.

The call came from a coalition of four green investment groups—representing the investment arms of banks HSBC and BNP Paribas, as well as of fashion company Hermes and the United Nations Environment Programme—aimed at limiting emissions and taxing them, arguing it will drive innovation, attract investment and create jobs. The call also hailed Australia’s recent move toward a carbon tax, saying it will be a boon for investors.

Meanwhile, another group of more than 175 companies called for Durban attendees to ensure $100 billion in annual climate aid to poor nations, as had been promised earlier.

No Big Bang

But Jos Delbeke, director general for climate action at the European Commission believes the long-running negotiations through the United Nations Framework Convention on Climate Change are unlikely to produce a “big bang”—that is, a breakthrough that would lead to the birth of a new climate treaty.

In preparation for the upcoming meeting, Japan has signaled it may step back from its own target of cutting CO2 emissions 25 percent by 2020—and it is bringing it up now to avoid giving the “wrong message to the international community,” according to the Wall Street Journal.

Japan, Canada and Russia have said they won’t accept an extension of the Kyoto Protocol unless it binds all major economies—which is not the case under Kyoto—but other governments are seeking a way to extend the treaty even without those three countries.

Yomiuri Shimbun also reported Japan will argue the next legally binding climate agreement should wait until 2015, after the Kyoto Protocol lapses in 2012.

Door Closing

Meanwhile, International Energy Agency Chief Economist Fatih Birol gave a sneak preview of the upcoming World Energy Outlook report, which will argue that without bold action, “the door may be closing” on limiting warming to 2 degrees Celsius. Meeting the challenge will take about $38 trillion in spending on oil, gas and electricity infrastructure over the next 25 years.

According to a leaked version of the European Union’s Energy Roadmap 2050, in most scenarios—with differing amounts of efficiency, renewable energy and nuclear power—electricity prices will rise until about 2030, and then fall.

Already the high cost of energy is eating into consumers’ disposable income in the U.S., as well as in the U.K., where it is driving inflation up.

As a counter-measure, the U.K. is pursuing “serious intervention” in the energy market to increase competition and transparency, and the country’s Department of Energy and Climate Change hopes a new bill that came into effect on home energy efficiency will help fight rising bills.

Mixed Signals

A New York Times article asked “Where Did Global Warming Go?,” noting the topic has faded from Obama’s speeches and arguing the GOP has made climate change skepticism a requirement for electability.

However, Joseph Romm at Climate Progress pointed a finger at the New York Times and other major media outlets as part of the problem because there has been a major decline in the amount of climate coverage. Others, such as William Y. Brown of the Brookings Institution argued the New York Times piece is wrong to say Americans don’t trust scientists; rather they don’t like being lectured.

Green issues do appeal to voters, according to a study by Stanford University researchers, who found American politicians who took a pro-green stance were more likely to win. More specifically, Democrats who supported green issues won more often, and Republicans who took anti-green stances lost more often than if they kept silent on the topic.

Energy will also be a significant issue for GOP candidates, according to “energy and environment insiders” polled by the National Journal. Especially important, the insiders said, will be linking energy policy with job creation.

Luxury in a Smaller Package

Even in these hard economic times, luxury cars still have a market and automakers are rolling out new models that, while remaining plush and pricey, are shrinking, both in body and engine.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.