Tag: natural gas

Posted on

IEA Says Policies Could Keep 2 Degrees Celsius Goal Alive

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

Redrawing the Energy-Climate Map, a new report from the International Energy Agency (IEA), warns global energy-related greenhouse gas emissions set an all-time high in 2012, throwing the world off its path to limit global warming to 2 degrees Celsius by 2020. These emissions rose 1.4 percent in 2012 to 31.6 billion tons—though the U.S. posted its lowest emissions (down 200 million tons), curbing them to mid-1990 levels.

“Climate change has quite frankly slipped to the back burner of policy priorities,” said IEA Executive Director Maria van der Hoeven. “But the problem is not going away—quite the opposite. This report shows the path we are currently on is more likely to result in a temperature increase between 3.6 °C and 5.3 °C but also finds that much more can be done to tackle energy-sector emissions without jeopardizing economic growth, an important concern for many governments.”

The release of the report came as nations gathered in Bonn, Germany, for a second week of talks aimed at a global climate pact—taking effect in 2020—to limit carbon emissions to 2 degrees Celsius from pre-industrial levels. The report lays out four policy priorities to put the world back on track: a partial phase-out of fossil fuel subsidies, reduced natural gas venting and flaring in oil and gas production, limited use and construction of inefficient coal power generation and enactment of targeted energy efficiency measures in buildings, industry and transport. The policies, the report said, would stop the growth of energy-related emissions by the end of the decade.

Energy Programs in Question after Senate Farm Bill Vote

This week, the Senate approved a five-year farm bill aimed at reducing food stamps and expanding farm subsidies that are designed to help farmers through extreme weather such as droughts and floods. Attention now turns to the House, which is expected to begin debating it’s version of the bill this month. The two versions include very different provisions for clean and renewable energy programs.

Although the Senate bill does include mandatory funding for clean and renewable energy programs—the Rural Energy Assistance Program and the Biomass Crop Assistance Program—the total allotted comes to 31 percent less per year than the total provided under the 2008 Farm Bill, which was extended through September 30 as part of fiscal-cliff compromises. With the House bill, all funding for the energy programs is reauthorized at reduced and non-mandatory levels.

“The House bill would allow the programs to continue on paper with an annual appropriation, but provides no mandatory funding to operate the programs,” said Andy Olsen at the Environmental Law and Policy Center. That could result in some “very gutted programs,” he noted.

Estimates of Shale-Based Resources Rise

New analysis by the U.S. Energy Information Administration (EIA) provides estimates for global shale gas and oil resources in the U.S. and 41 countries. The update of a two-year-old study by the EIA,  nearly doubles the number of formations that have these technically recoverable resources.

It finds that more than half of the identified shale oil resources—roughly 345 billion barrels—outside the U.S. are in Russia, China, Argentina and Libya; China, Argentina, Algeria, Canada and Mexico hold the most shale gas resources. The U.S. holds the second largest concentration of shale oil resources behind Russia and ranks fourth in shale gas resources after Algeria.

“As shale oil and shale gas production has grown in the United States to become 30 percent of oil and 40 percent of natural gas total production, interest in the oil and natural gas resource potential of shale formations outside the United States has grown,” said EIA administrator Adam Sieminski, noting that the EIA report shows “a significant potential for international shale oil and shale gas.”

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.

Posted on

U.S. Oil Reserves Higher Than Previously Thought

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

According to a new U.S. Geological Survey (USGS) assessment, two formations in the central United States hold three times the amount of natural gas and two times the amount of oil than the federal government previously estimated. Concentrated in the Dakotas and Montana, the Bakken and Three Forks formations are expected to hold 7.4 billion barrels of recoverable oil and 6.7 trillion cubic feet of natural gas. The Three Forks formation, which alone contains 3.73 billion barrels of oil, was not included in the last USGS assessment in 2008—helping to explain the large jump.

“These world-class formations contain even more energy resource potential than previously understood, which is important information as we continue to reduce our nation’s dependence on foreign sources of oil,” said Interior Secretary Sally Jewell.

The same week, Jewell announced the U.S. Department of Interior will release revised, draft rules regulating hydraulic fracturing operations that have increasingly recovered tough-to-reach fossil fuel sources—particularly in North Dakota. The rules would only apply to hydraulic fracturing and horizontal drilling on public lands and would establish new requirements for disclosure of chemicals and well integrity. The draft is expected in the coming weeks.

Senate Votes on Clean Energy

A House committee in North Carolina’s state legislature last week voted against a bill to repeal the state’s Renewable Energy and Energy Efficiency Portfolio Standard (REPS). However, a Senate Committee this week pushed through the bill, which would keep the mandate at 3 percent, but eliminate it later on.

The REPS enacted by a 2007 North Carolina law had no expiration and, in addition to the overall renewable requirements, uniquely required utilities to get 0.07 percent of their electricity from hog waste now and 0.20 percent by 2018. So far, little of the set-aside for hog waste-derived energy has been met. A new study by the Nicholas Institute for Environmental Policy Solutions and the Duke Carbon Offsets Initiative provides a first step toward an informed strategy to increase swine gas energy production. Using a comparative modeling analysis considering individual and centralized approaches, the report finds that injecting biogas collected from an optimized network of farms into the natural gas pipeline could be a cost-effective approach to meeting state REPS.

As Carbon Dioxide Levels Rise, International Climate Negotiations Begin

As early as this month, carbon dioxide concentrations in the atmosphere are expected to reach a new milestone, rising above 400 parts per million for a sustained period of time. Carbon dioxide levels in excess of 400 parts per million have already been recorded at the Mauna Loa Observatory in Hawaii, but they tend to fluctuate hourly. The milestone is significant because it illustrates how dramatically humans have altered the atmosphere in a few generations, says Mother Nature Network. In 1988, atmospheric carbon dioxide was about 350 parts per million.

“I wish it weren’t true but it looks like the world is going to blow through the 400 ppm level without losing a beat,” said Ralph Keeling, a geologist with the Scripps Institution of Oceanography. “At this pace we’ll hit a 450 ppm within a few decades. Each year, the concentration of CO2 at Mauna Loa rises and falls in a sawtooth fashion, with the next year higher than the year before. The peak of the sawtooth typically comes in May. If the CO2 levels don’t top 400 ppm in May 2013, they almost certainly will next year.”

The Washington Post looks at President Obama’s record on climate and environment so far. In Bonn, groups gathered for a week-long meeting to focus on the “scope, design and structure” of the 2015 climate agreement that would take effect in 2020. This agreement would replace the Kyoto Protocol, which was adopted in 1997 to limit pollution.

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.

Posted on

Moniz, McCarthy Face Questions at Senate Confirmation Hearings

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

Senate confirmation hearings for Ernest Moniz and Gina McCarthy—President Barack Obama’s appointees to oversee the U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA)—began this week.

For Moniz, the Massachusetts Institute of Technology physicist, committee grilling started Tuesday. Natural gas exports were a popular topic throughout Moniz’s hearing—signaling his likely support for exports as a way to combat climate change. With some pressing, Moniz said he was open to reviewing a recent study commissioned by the DOE that found boosting natural-gas exports would yield economic benefits for the United States. The analysis has received some criticism for using outdated information and not fully examining the regional effects of exporting liquefied natural gas to markets in Europe and Asia. “We certainly want to make sure that we are using data that is relevant to the decision at hand,” Moniz said.

While Moniz ducked questions about his support of a carbon tax, he did endorse Obama’s “all of the above” energy strategy and said he would push for renewable energy if he was confirmed. “The increase in U.S. unconventional oil production, combined with increased vehicle efficiency, will continue to reduce American oil imports and reduce our trade deficit,” said Moniz. “New technology development and deployment can and must further reduce the associated environmental footprint.”

In all, Politico reports, the hearing went smoothly for the former DOE undersecretary, and Moniz looks to be on the path for approval (subscription) that may refocus the department on its research and development roots. McCarthy’s hearing began at 10:30 ET today and focused on the practices of the EPA and the future of coal. Republicans also pushed her (subscription) on transparency, the use of fictitious e-mails and the science of decision making.

Sally Jewell, Obama’s pick for Interior Secretary, won Senate confirmation Wednesday.

Release of 2014 Budget Details Energy Priorities

The hearings—which put the focus on Obama’s regulatory agenda—come amid the unveiling of Obama’s roughly $3.8 trillion budget proposal, which shed light on Obama’s spending priorities.

Set to begin October 1, the budget would boost clean-tech spending by 40 percent over current levels, cut net oil imports in half by 2020 and seek to eliminate some tax breaks for the oil and gas industry. It also includes the $2 billion Energy Security Trust, which aims to shift America’s cars and trucks off oil entirely by investing in research for advances in electricity, domestically produced natural gas and homegrown biofuels. Moniz hinted in his Tuesday confirmation hearing that the United States spends too little on energy research—a statement The Washington Post examined in depth.

Climate Science in Education Standards Released this Week

New national science teaching guidelines, delving more deeply into the science of climate change, were released Tuesday. The Next Generation Science Standards were developed by a consortium of 26 state governments and several groups representing scientists and teachers. The guidelines are the first set of science standards to come out in 15 years and push more “critical thinking” and less memorization.

“There was never a debate about whether climate change would be in there,” said Heidi Schweingruber of the National Research Council, one of the key organizations responsible for development of the guidelines. “It is a fundamental part of science, and so that’s what our work is based on, the scientific consensus.”

Although states are not required to adopt the rules, 26 states—including Arizona, California, Iowa, Kansas and New York—are considering doing so.

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.

Posted on

EPA Proposes Clean Air Measures for Gasoline, Finalizes MATS Rules

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

The U.S. Environmental Protection Agency (EPA) on Friday announced its proposed Tier 3 rules, which would reduce allowable amounts of sulfur in gasoline and help automobiles’ catalytic converters capture more pollutants. The new measures would reduce sulfur in gasoline by more than 60 percent—from the present average of 30 parts per million to 10 parts per million by 2017—an environmental benefit comparable to taking 33 million cars off the road. The EPA measure would increase the price of gasoline by less than a penny per gallon but deliver up to $23 billion in health benefits by 2030, according to The Washington Post. The oil industry, however, points to its own study, which suggests a 6 to 9 cent rise per gallon. Under the plan, fuel vapor emissions would drop to nearly zero, making it easier for the auto industry to meet tougher standards for new-car tailpipe emissions.

The Tier 3 standards would yield gasoline sulfur levels similar to levels already being achieved in California, Japan, South Korea and other countries in Europe and elsewhere, according to the EPA. The proposed rules will soon be open for public comment.

The EPA also issued the final rule for the Mercury and Air Toxics Standards (MATS) for new coal- and oil-fired power plants—raising limits slightly from those laid out in December 2011. The final rule sets mercury emissions limits at 0.003 pound/GWh, up from 0.0002 pound/GWh in the previous rule.

The agency also filed a request with the U.S. Supreme Court Monday to review a decision by the D.C. Circuit Court of Appeals that tossed out the Cross State Air Pollution Rule. The rule required cuts in soot and smog-forming pollution that blows across state lines.

Spills Thrust Keystone XL into the Spotlight

Two oil spills, one in Arkansas from a pipeline rupture and one in Minnesota from a train derailment, stirred new criticism of and debate about the proposed Keystone XL pipeline, which would carry crude oil from Canada to the Gulf of Mexico. The fuel passing through Keystone is the same type that leaked from ExxonMobil’s Pegasus pipeline in Arkansas, a fact that prompted some environmental groups to promise protests should President Barack Obama approve the project. Keystone has also been criticized by scientist James Hansen, who retired from NASA this week to pursue campaigning to reduce greenhouse gas emissions. Even so, a new poll shows broad bipartisan support for the pipeline, with 66 percent favoring its approval and construction. Obama told House Republicans last month that a decision on Keystone XL would come soon.

U.S. Coal Use Rising

According to the U.S. Energy Information Administration (EIA), natural gas prices have risen significantly, increasing coal-fired electric generation. In fact, the EIA finds natural gas prices have risen 50 percent since April 2012. If prices continue to climb, the agency predicts coal use will increase 18 percent by 2040.

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.

Posted on

Details of Obama’s Plan to Reduce Dependence on Foreign Oil Emerge

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

The White House has released more details about the Energy Security Trust that President Barack Obama first mentioned in February’s State of the Union address. Obama introduced the plan—which aims to reduce the country’s dependence on foreign oil, improve vehicle fuel efficiency and protect consumers from gas price spikes—during a speech at Chicago’s Argonne National Laboratory. “By investing in our energy security,” he noted, “we are helping our businesses succeed and we’re creating good middle class jobs right here in America. The only way to really break this cycle of spiking oil prices—the only way to break that cycle for good—is to shift our cars entirely off oil.”

The Energy Security Trust focuses on shifting America’s cars and trucks off oil entirely by investing in research for advances in electricity, domestically produced natural gas and homegrown biofuels as cost-effective alternatives to fossil fuel. Over the course of 10 years, the trust will provide $2 billion in research dollars from federal oil and gas development revenue.

The plan, the White House said, builds on an earlier report and on strategies that resulted in reductions in carbon dioxide of 13 percent since 2007, highlighted in a new study by the U.S. Environmental Protection Agency (EPA). It is intended to solidify America’s position as a world leader in advanced transportation technology. Feelings regarding the measure, however, are mixed. Some are praising the investment in research and development funding in light of sequester cuts, while others see little success for the proposal without a dramatic increase in oil and gas leasing on federal. Energy production on the nation’s federal lands would be among the top responsibilities for Sally Jewell, whose nomination to the post of Interior Secretary was advanced by the Senate Energy and Natural Resources Committee today.

Meanwhile, a new report states that by 2050 it is possible to cut car petroleum use by 80 percent—a much easier feat than cutting carbon dioxide emissions by a similar amount.

EPA Could Delay Climate Rules for Power Plants

A year ago, the EPA unveiled the proposed New Source Performance Standards, which would require all new coal- and gas-fired power plants built in the U.S. to emit no more than 1,000 pounds of carbon dioxide per megawatt hour of electricity produced. According to The Washington Post, the Obama administration is likely to miss its April 13 deadline for finalizing the rules and may be considering revising them. Some industry critics have expressed concern with the EPA’s proposed rule. Four moderate Senate Democrats also urged the President in a letter to scale back provisions for coal-fired plants. Revamping the new-source rules to lay out a separate standard for coal-fired power plants could take another six months, according to legal experts, but it might give the EPA a better chance of defending the rule in court.

Biofuels Suffer from High Prices

The punishment Midwest corn yields took from the drought has pushed corn prices so high that nearly 10 percent of the nation’s ethanol plants stopped production this past year. The credits refiners use to meet the EPA’s renewable fuel mandate that results in ethanol being blended into gasoline are spiking, too. The 10-fold increase in the price of the credits is causing some to be concerned about an increase in gasoline prices. In fact, this year U.S. drivers could face an increase in these prices of nearly $13 billion.

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.

Posted on

In State of the Union Obama Targets Energy, Climate

The Nicholas Institute for Environmental Policy Solutions at Duke University

Amid discussion of gun control, immigration reform and deficit reduction, President Barack Obama touched on his agenda for energy and climate in his State of the Union address Tuesday. Picking up where he left off in his second inaugural address, Obama took his focus on climate change one step further, calling on Congress to enact legislation to cut carbon pollution and increase clean energy production. He made it clear he intends to act with or without lawmakers.

“But if Congress won’t act soon to protect future generations, I will,” Obama said. “I will direct my cabinet to come up with executive actions we can take now and in the future to reduce pollution, prepare our communities for the consequences of climate change, and speed the transition to more sustainable sources of energy.”

Topping the list of actions for Congress: a market-based solution similar to cap-and trade legislation John McCain and Joe Lieberman worked on a few years ago. A cap-and-trade system—like the one established in California—would create a cap, or limit, on industrial greenhouse gas emissions that would decrease over time. At the federal level, it died in the Senate in 2010. Sens. Bernie Sanders and Barbara Boxer rolled out a bill that would levy a fee on large fossil fuel facilities—building off the momentum of the State of the Union (subscription required). Wednesday the Environment and Public Works Committee held a briefing to discuss the latest findings in climate science research.

During the speech, Obama offered no details on steps he would take if Congress fails to act. While there was no mention of the U.S. Environmental Protection Agency’s regulations of power plants, The National Journal reports he is on track to use his executive authority to introduce rules for controlling carbon emissions from existing coal-fired power plants under the Clean Air Act this year. This would go beyond mandates currently proposed for new facilities.

Energy Trust Would Drive New Research to Reduce Oil Dependence

In addition to taking executive action to curb climate change, Obama proposed using the revenues from federal oil and gas production to fund an Energy Security Trust. This trust would “drive new research and technology to shift our cars and trucks off oil for good.” The $2 billion investment would support research into a range of technologies, including homegrown biofuels and electric vehicles. It would not require expanding drilling. The Hill notes that creating such a trust would require an Act of Congress, and some Republican lawmakers are already calling the plan a “nonstarter.”

Obama also wants to work with Congress to encourage cleaner-burning natural gas. “The natural gas boom has led to cleaner power and greater energy independence,” he said. “We need to encourage that. And that’s why my administration will keep cutting red tape and speeding up new oil and gas permits. That’s got to be part of an all-of-the-above plan. But I also want to work with this Congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and our water.” Merrill Matthews at Forbes is skeptical of Obama’s promises to expedite the permitting process for oil and gas drilling, accusing Interior Secretary Ken Salazar of withdrawing public lands that had already undergone a lengthy environmental review and been approved for oil and gas leasing.

Is the Speech a Roadmap for 2013?

The answers are mixed. Some liked what they heard. Success of the address, USA Today reports, depends on the success of the policies. The President has delivered variable results on proposals he’s put forth in four previous State of the Union addresses, reports Politico. With Republicans in control of the House, CBS News’s Brian Montopoli says a resurrection of a cap-and-trade bill like the one Obama proposed in 2009 is doubtful.

Meanwhile, a new national poll by Duke University’s Sanford School of Public Policy and Nicholas Institute for Environmental Policy Solutions suggests many Americans haven’t formed an opinion about a cap-and-trade approach; with support low, 36 percent are neither for nor against. It also found only 29 percent of Americans strongly or somewhat support a carbon tax and 64 percent strongly or somewhat favor regulating greenhouse gas emissions from power plants, factories and cars. However, the percentage of Americans who think the climate is changing, and that the change is a result of human activity, have reached their highest levels since 2007.

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.

Posted on

As U.S. Carbon Dioxide Footprint Falls, Report Looks at Ways to Continue Emission Decline

The Nicholas Institute for Environmental Policy Solutions at Duke University

As Vice President Joe Biden reaffirmed the Obama administration’s commitment to combat climate change, new data indicates carbon dioxide emissions in the United States in 2012 dropped to their lowest levels since 1994. The report found expansion of renewables, increased efficiency and the increased availability of unconventional natural gas all contributed to the reduction in climate pollution. In fact, by the end of last year carbon dioxide emissions were down about 10.5 percent from 2005 levels.

Further progress toward President Obama’s goal of cutting emissions 17 percent before 2020 may be attainable without Congress. According to a new report from the World Resources Institute, the U.S. could meet the target by combining actions at the state and federal levels. This includes new Environmental Protection Agency (EPA) regulations for limiting carbon dioxide emissions from existing power plants, with the report recommending the administration use the Clean Air Act to do so. It also points to curbing methane emissions from natural gas operations and improving energy efficiency in home appliances and industry to achieve additional emission reductions.

U.S. Power Plants Remain Largest Emitters

Power plants accounted for one-third of U.S. greenhouse gas emissions in 2011, new EPA data suggests. That translates to about 2,221 million metric tons of carbon dioxide—though those emissions dipped 4.6 percent compared to 2010 as more plants burned less coal. The data was gleaned from roughly 8,000 power plants and included an interactive map identifying the largest polluters. Among the top emitters were coal-dependent states, including Illinois, Pennsylvania, Ohio and Kentucky.

The EPA released the data, collected through the Greenhouse Gas Reporting Program, for the first time last year when it considered 2010 emissions from 29 sources. In 2011, emissions from those sources dropped 3 percent.

Chu Steps Down, Notes Responsibility to Address Climate

After four years, Energy Secretary Steven Chu has tendered his resignation. In the letter announcing his decision to forgo a second term, Chu writes of his accomplishments and our responsibility to address climate change.

“While we cannot accurately predict the course of climate change in the coming decades, the risks we run if we don’t change our course are enormous. Prudent risk management does not equate uncertainty with inaction … Ultimately we have a moral responsibility to the most innocent victims of adverse climate change. Those who will suffer the most are the people who are the most innocent: the world’s poorest citizens and those yet to be born. There is an ancient Native American saying: ‘We do not inherit the land from our ancestors, we borrow it from our children.’ A few short decades later, we don’t want our children to ask, ‘What were our parents thinking? Didn’t they care about us?’”

Chu notes, in the more-than-3,000-word letter, that better solutions, along with a willingness to accept failure, will be necessary.

“Our ability to find and extract fossil fuels continues to improve, and economically recoverable reser­voirs around the world are likely to keep pace with the rising demand for decades. As the saying goes, the Stone Age did not end because we ran out of stones; we transitioned to better solutions … The test for American’s policy makers will be whether they are willing to accept a few failures in exchange for many successes.”

Meanwhile President Obama has tapped Sally Jewell, the CEO of outdoor retailer REI, to replace outgoing secretary Ken Salazar as head of the Department of Interior (DOI). Jewell is a both a former petroleum engineer and a longtime advocate for conservation, and if confirmed, she would oversee millions of acres of public lands. Western Energy Alliance President Tim Wigley said, “her experience as a petroleum engineer and business leader will bring a unique perspective to an office that is key to our nation’s energy portfolio.” Some are optimistic that Jewell might continue DOI efforts to develop renewable energy on public land and foster offshore wind power development.

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.

Posted on

Bacteria Surviving at High Altitudes Could Play a Role in Global Climate

The Nicholas Institute for Environmental Policy Solutions at Duke University

A new study published in the journal Proceedings of the National Academy of Sciences indicates that even as high as 30,000 feet in the sky, fungi and bacteria are present in the air. These living microorganisms could very well affect global climate.

“The million-dollar question in the field [right now] is how much living things can impact clouds, the hydrological cycle and the climate overall,” said Anthanasios Nenes, a professor at the Georgia Institute of Technology and study co-author.

The study showed that viable bacterial cells represented, on average, around 20 percent of the total particles detected in the size range of 0.25 to 1 micron in diameter. By at least one order of magnitude, bacteria outnumbered fungi in the samples, and the researchers detected 17 different types of bacteria— including some that are capable of metabolizing the carbon compounds in the atmosphere—such as oxalic acid. The work may shed new light on how clouds will change in composition and abundance as the world warms, which Climate Central reports is a source of uncertainty in climate projections.

China Coal Consumption Rising

Domestic coal, which has suffered in recent years due to the abundance of natural gas and tighter regulations, just may get a boost from China. According to the U.S. Energy Information Administration, China is using nearly as much coal to support its economic and population growth as the rest of the world combined. With its demand already accounting for 47 percent of global consumption, the country is expected to dominate the coal market in 2013 as it continues to rely on the fossil fuel for 70 percent of its energy generation.

“[There are] enhanced opportunities for exports of American coal to China to feed some of that demand,” said Heath Knakmuhs, senior director of policy at the U.S. Chamber’s Energy Institute. “While China does have significant internal coal resources, they’re often far away from load centers. It does provide an opportunity for American coal suppliers—especially those located in the western U.S. to export enhanced amounts to China.”

Indeed, U.S. coal shipments to China have increased significantly in recent years—showing a 107 percent jump from 2011 to 2012. Proposed coal-export terminals in Washington and Oregon—through which coal from the Powder River Basin in Wyoming and Montana would be shipped to China—are shaping up to be “one of the biggest climate fights of 2013,” according to Mother Jones. Opponents of the terminals cite local concerns such as the congestion and coal dust associated with the mile-long trains as well as higher coal consumption—and increased greenhouse gas emissions—in Asia. But some argue that China will burn coal whether or not they get it from the U.S., and that higher coal prices will reduce coal consumption in the U.S. and Europe. “Perhaps counterintuitively, the United States selling coal to China, and Asia generally, likely will reduce greenhouse gas emissions globally,” said Stanford University’s Frank Wolak.

EPA Challenged in Court

Two rules developed by the U.S. Environmental Protection Agency (EPA) were challenged in court, and ultimately thrown out in recent weeks. These include:

The Cross State Air Pollution Rule (CSAPR)—The EPA lost a bid for a federal appeals court review of a rule designed to force cuts to soot and smog emissions from coal-fired power plants. CSAPR was originally issued in July 2011 and aimed to reduce nitrogen oxide and sulfur dioxide emissions in 28 states that cross state lines. The Clean Air Interstate Rule, which also aims to address pollution across state lines, remains in effect as the EPA reviews the decision.

Cellulosic Ethanol Target—A federal appeals court struck down future rules for blending cellulosic biofuels, made from sources such as grasses, agricultural waste and wood chips, because supplies are not available to meet forward-thinking requirements. The biofuels mandate—part of the renewable fuel standard—required refiners to blend 36 billion gallons of biofuel into traditional transportation fuels by 2022.

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.

Posted on

Scientific Papers Share Lessons Learned from the BP Oil Spill

The Nicholas Institute for Environmental Policy Solutions at Duke University

A collection of papers now out in the journal Proceedings of the National Academy of Sciences (PNAS) looks at the response to the Deepwater Horizon Oil Spill in 201, examining whether it was successful and how it could be improved. The release of the reports comes just days after the U.S. Environmental Protection Agency (EPA) suspended BP from obtaining new U.S. contracts due to its “lack of business integrity” following the Deepwater Horizon accident that killed 11 workers. After the explosion, the rig’s Macondo well began gushing crude oil, a leak that would continue for nearly three months. Uncertainty surrounding the flow rate of the leaking oil was a key problem during the disaster, prompting these U.S. government scientists to recommend that future drilling permits require mechanisms to assess the flow rate.

Among other methods, dispersants were used to break down some of the oil after the spill. While dispersants have been used before, the 2010 BP spill was the first time they were added under the sea surface. Just as claims against the dispersant company were dismissed this week, a study—separate from the PNAS papers—suggests once the dispersants mix with oil, the mixture is more toxic.

In all, according to the 15 PNAS papers, information presented publicly during the spill was for the most part accurate. Oil was rapidly consumed by bacteria, and seafood was not contaminated by hydrocarbons or dispersants.

Fiscal Cliff Diverts Attention from Doha Climate Talks

Though the world’s carbon emissions jumped 3 percent in 2011, worries about the fiscal cliff—when the  terms of the Budget Control Act of 2011 go into effect at the end of 2012—still overshadowed negotiations for a global climate treaty at the United Nations Climate Change Conference in Doha. While the Doha talks are slow, Spiegel runs down a list of four reasons for hope on climate change. Noting even though the international process takes time, it is delivering. “Since the Copenhagen summit in 2009, countries representing 80 percent of global emissions have made economy-wide pledges of action.”

Even so, the Kyoto Protocol—the only global agreement to cut greenhouse gas emissions—is set to expire at the end of the year. Negotiations to move forward on details for a second phase haven’t materialized as of yet. Two traditional hold-outs are warming up to the idea of a global commitment. China has pledged to make its “due contribution” to cutting greenhouse gas emissions, and President Barack Obama’s envoy said he is willing to participate in discussions on the issue of fairness in how nations plan to meet greenhouse gas reduction goals. At issue is whether some nations historically considered developing countries should be subject to more stringent carbon targets given their increasing emissions.

Climate Change in Spotlight as Coal Use Criticized

As natural gas continues to gain popularity, as much as 24 percent of coal-fired capacity in the U.S. could be shut down by 2035. The forecast comes from a new study released by the U.S. Government Accountability Office. An official from BHP Billiton—one of the largest producers of aluminum, thermal coal, metallurgical coal, nickel, silver and uranium—said extreme weather caused by climate change is already impacting some of its assets, thus forcing the company to re-evaluate its investments in the coal sector. “In a carbon constrained world where energy coal is the biggest contributor to a carbon problem, how do you think this is going to evolve over a 30- to 40-year time horizon? You’d have to look at that and say … the usage of thermal coal is going to decline,” said BHP executive Marcus Randolph. “And frankly it should.”

In the southeastern U.S.—a region where coal-fired power plants have historically supplied much of the electricity—coal-fired generation has declined since 2010. In summer 2012, the U.S. Energy Information Administration saw an 8 percent decline in coal use. The reason, as Slate tells it: the drop in natural gas prices has “changed the dispatch order in the region.”

A new report by the Natural Resources Defense Council outlines a plan by which the U.S. could reduce power plant carbon pollution by 26 percent using the Clean Air Act. Under the plan, the EPA would set emissions goals for existing power plants that vary from state to state, depending on the state’s mix of power sources. Regulators and utilities could then determine how best to meet those goals. States would be free to pursue innovative strategies, such as trading emissions, as they see fit. Such a plan, according to the Washington Post’s Brad Plumer, is preferable to a one-size-fits-all carbon standard for all power plants, which could shutter many coal plants.

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.

Posted on

Hurricane Isaac Disrupts Energy Production, Stirs Old Wounds

The Nicholas Institute for Environmental Policy Solutions at Duke University

While Hurricane Isaac managed to leave Gulf oil platforms largely untouched, New Orleans’ strengthened levees were put to the test as the storm made landfall on the seventh anniversary of Hurricane Katrina.

More than 90 percent of all oil production and roughly 66 percent of all gas output was shut down as a precautionary measure as Isaac approached the Louisiana coast Tuesday. As the hurricane weakened into a tropical storm on land, reducing the threat to offshore production, energy prices dropped. Gasoline prices rose by roughly five cents nationwide—the largest one-day jump in gas prices in 18 months just as the holiday weekend approaches. Though losses will be less than other storms, Reuters reports a $1 billion economic loss for offshore energy.

Oil production in the Gulf is expected to return to normal quickly; nonetheless, the Group of Seven (G7) urged oil-producing countries to raise output to ensure the market was well supplied. The G7 has said it is ready to release oil from strategic reserves, perhaps as soon as September. The International Energy Agency has dropped its opposition to the plan, which has been spearheaded by the U.S.

As Hurricane Isaac continues to churn in the Gulf region, it could stir up remnants of up to 1 million barrels of crude oil that leaked into the ocean as a result of the BP Deepwater Horizon spill. The Governor’s Office of Homeland Security and Emergency Preparedness warned coastal residents that oil material—such as tar balls—could wash ashore.

Meanwhile, tropical storm Kirk became the Atlantic’s 11th named storm of 2012, a feat typically not reached until closer to the end of hurricane season in November. A study in the journal Atmospheric Science Letters suggests hurricanes could be stopped if the clouds that float above hurricane-forming regions were brightened.

Rule Promotes Cleaner Cars

A new fuel economy rule that will nearly double the efficiency of the nation’s cars and trucks to a fleet-wide average of 54.5 miles per gallon over the next 13 years was finalized by the Obama administration this week. The requirements of the rule will be phased in gradually between now and then, and automakers could face fines for non-compliance.

The U.S. Environmental Protection Agency and the National Highway Traffic Safety Administration estimate the rule will increase the average price of a vehicle by $1,800 in 2025. Consumers could save an estimated $5,700 to $7,400 in gasoline over the life of the vehicle. Additionally, the rule is expected to save 4 billion barrels of oil, and reduce greenhouse gas emissions by 2 billion metric tons.

The rule, some argued, doesn’t come without consequences. Higher-efficiency vehicles that consume less fuel could reduce revenues from the gasoline tax 21 percent by 2040. As a result, spending on road repairs could decline.

Forbes says regardless of the high 54.5 mpg requirement, your average will likely be closer to 40 mpg.

Deal Creates Largest Carbon Market

The European Union will link its “cap-and-trade” system with Australia’s carbon market, creating the largest emissions trading scheme in the world. A partial link of the two markets will begin in July 2015, and the association will be complete by 2018. The deal will not only provide a boost for the declining European market, but also allow Australian companies to buy cheaper credits from the European Union.

In the U.S., California will open the country’s first full-scale carbon market in November. Before then, the California Air Resources Board plans to hold a practice auction—testing its electronic platform for selling carbon allowances to companies. The practice auction comes in the middle of a political debate over whether the state should auction revenues at all.

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.