Energy Exchange

New Oil Industry Report on Wrong Track

The only surprise about the new report released today by the Western States Petroleum Association is what it doesn’t come right out and say: that the oil industry is pretty sure that those of us who believe climate change is one of the biggest issues facing California today are actually conspiring to put them out of business.

The report, “Understanding the Impact of AB 32,” is based on public data but was processed through the Boston Consulting Group’s proprietary modeling using the industry’s assumptions about the future. It reads less like an actual analysis of the potential impacts of California’s landmark climate law, and more like a laundry list of “woe is me” excuses for the oil refinery industry – not incidentally, the industry that paid for the report – claims that California’s innovative clean fuels policies will ruin their businesses.

The biggest problem with the report is its assumption that no one – none of California’s myriad economic sectors – will make changes aimed at reducing our dependence on oil, or at curbing dangerous greenhouse gas emissions. For example, even as refineries face falling demand for gasoline, in California and across the nation, this report implicitly assumes that refineries won’t adopt more efficient technologies, or change their volume of production in response to reduced demand.

In fact, the idea that California’s refineries would fail to do a brisk business in California, even under AB 32, is a load of hooey. California still represents one of the biggest and most lucrative markets for gasoline. And yet a significant amount of the fuel produced in California is currently shipped out of state, which certainly provides a substantial cushion for any reduction in local demand.

What California’s refineries should be focused on is how to become a leader in this new clean fuel economy. Low carbon fuel is going to be the fuel of the future, in high demand not only in the U.S. but abroad. By focusing now on making the changes needed to produce this kind of fuel, California’s refineries could get a jump start on this growing market – instead of bemoaning the slowing demand for their existing, outdated fuels.

There’s a reason they’re called fossil fuels, after all.

 

By Tim O’Connor and Jamie Fine Ph.D.

 

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Energy Documentaries – Educational Or Sensational?

The 24-hour news cycle has prompted a higher quantity of topics brought to viewer’s and reader’s attention.  However, with sound bites and the brevity of social media, rarely are topics reported with a balanced level of quality.  Film documentaries are evolving as a more sophisticated medium to explore issues in expanded formats with interviews, commentary and a wider perspective.  But are some of these documentaries more fiction than fact?

An Inconvenient Truth advocated common sense about climate issues.  The Academy-Award nominated Gasland sparked much controversy about exploration and production of natural gas.  Its sequel, Gasland II, is scheduled to air on HBO this summer.  This week, a film Truthland debuted on YouTube (not in theaters) with more splash than substance.

Of EDF’s core strategies of sound science, market-based solutions, non-partisan policy and unlikely partnerships – a most unlikely partnership was mischaracterized by the producers of Truthland.  My words in an interview in the documentary are accurate, but the context in which they were presented — implying that EDF agrees with the rhetoric presented in the film — is misleading.  When interviewing for this film over a year ago, I was not told that the film would be subsequently sold to Independent Petroleum Association of America (IPAA) and Energy In Depth (EID), and used a promotional tool for the natural gas industry.  In hindsight, I should have demanded more limitations on my interview – but the producers were very convincing when pitching the film as a presenting a “balanced perspective” on the natural gas debate.

Rather than promoting Truthland, I suggest a more impartial documentary choice where EDF’s Senior Energy Policy Advisor Scott Anderson is interviewed as demonstration of how EDF’s efforts can decrease the adverse effects of natural gas development.  The SWITCH Energy Project offers a more sound approach to reviewing the past, present and future of energy solutions for the U.S. and globally.  University of Texas’ Bureau of Economic Geology’s Director Dr. Scott Tinker explores the world’s leading energy sites, from coal to solar, oil to biofuels, with interviews of international leaders of government, industry and academia experts, plus a voice  in the environmental community.

Scott Anderson’s interview in the film describes the natural gas drilling method of hydraulic fracturing and the regulatory atmosphere of improving environmental aspects pertaining to water, land and air quality issues.

Posted in Natural Gas / Read 1 Response

Postcard From Mark Brownstein In Tel Aviv, Israel

Source: Trekkie Gal

A lumber yard in the middle of Tel Aviv is an unlikely place to discover innovative new technology to transform ocean waves into energy, but there I was watching a demonstration of wave-to-energy technology in a makeshift wave tank constructed by Shmuel Ovadia.  Ovadia is a talented engineer passionate about harnessing the power of the ocean when he is not otherwise engaged in running his successful high-end lumber business.  See for yourself at:  http://www.sde.co.il/.

I suppose I shouldn’t have been surprised.  I am on the first day of a seven trip for U.S. energy leaders sponsored by Project Interchange, an educational institute of the American Jewish Committee, and by the time I arrived at Ovadia’s lumber yard in the late afternoon, I had already seen tremendous creativity in the unlikeliest places.  Our morning was spent walking down Tel Aviv’s Rothschild Boulevard, Israel’s equivalent of Silicon Valley, dropping by several of the technology incubators that are a large part of the reason why Israel is known as the “start-up nation.”  

Here, 20-somethings only a few years out of Israel’s army – where technology and project management skills are acquired and honed – are developing innovative software at a furious pace.  The aging, somewhat decrepit buildings dating back to Israel’s socialist early years, are brimming with entrepreneurial drive and youthful spirit.  Most interesting to me was a visit to the IDC Elevator, where Shmuel Chafets, Director of Business Development for Giza Venture Capital, described a recent investment in a start-up that is applying sophisticated software and smart grid technology to improve the efficiency of water delivery systems, which – among other things – anticipates leaks before they happen. 

In Israel, a nation increasingly reliant on energy-intensive desalination, saving water is also saving energy, a lesson at the heart of our report two years ago on the Energy-Water Nexus in Texas.  This visit got me wondering whether this same technology might be helpful in EDF’s efforts to partner with gas utilities to reduce methane leaks along their distribution systems.  Surely such smart grid ingenuity can be used to help fight the causes of global warming and not just the fresh water scarcity that is one of its many symptoms?

While software companies in Israel do well in attracting venture capital from the United States, Europe and, more recently, Southeast Asia, guys like Shmuel Ovadia struggle to attract capital to their bright ideas.  Even venture capitalists like to see commercial scale prototypes before investing major dollars, and good-old fashioned mechanical technologies are a whole lot more physically difficult and expensive to get to commercial scale than software solutions.  So it takes a special type of investor to risk the serious capital it takes to bring a hardware solution to market. 

It is a challenge, but not impossible, as our visit to Better Place’s Tel Aviv showroom demonstrated.  Here, we were treated to a test drive of the Renault Fluence ZE, an all-electric four passenger sedan, that has a range of approximately 100 miles and a battery that can either be recharged at home or our work or swapped out in a 5-minute visit to a Better Place ‘refueling’ station.  When you buy the car (and had we been Israelis, sales people were there ready to take our order), you buy a contract for miles to go with it.  Included in that contract are up to two charging stations, the electricity they supply, and access to any of Better Place’s battery swapping stations now being constructed throughout Israel. 

In short, the Better Place’s Renault Fluence is like the cell phone I have carried with me to Israel.  It is my phone, but I purchase the international sym card and the corresponding minutes of voice and data from Orange, a local carrier, which is easily slipped into the phone and recharged with new minutes as needed. 

Tomorrow we head down south to the Negev to see what is brewing in the world of solar energy.  I can only imagine what surprises await us.  I’ll keep you posted.

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California’s Coal Shadow Continues to Lighten Up – So Long, Reid Gardner

EDF first highlighted California’s coal shadow, which is the impact of coal-produced power sold into the state, in this 2005 report. At that time, the global warming pollution emanating from these out-of-state smokestacks was equivalent to the emissions from more than 11 million cars, canceling out projected reductions from California’s landmark standards for motor vehicles and its 20% renewable portfolio standard.

This week, the state Department of Water Resources (DWR) took a huge step toward ending our coal shadow when it renewed its commitments to stop purchasing power from the Reid Gardner power plant in Nevada starting in 2013. This critical step, the second major commitment in the past three months that will help California shed its demand for imported coal fired generation, is a strong signal that California global warming policies are working and that a full end of our coal shadow may be in sight.

In July 1983, DWR entered into a 30 year contract with Reid Gardner to import up to 235 MW from one of the plant’s four units to power part of the State Water Project. The project is the largest single consumer of electricity in California and pumps water up and down our state for residential, industrial and agricultural operations. The coal-fired energy from Reid Gardner has accounted for 30-50% of DWR’s annual global warming pollution, while only accounting for 10-15% of the project’s overall energy supply. This means that Reid Gardner is dirtier and less efficient than California’s other sources of energy.

The Reid Gardner decision, coupled with the CPUC’s sale of their interest in Four Corners in March 2012, is a clear indication that California continues to stand at the forefront of environmental responsibility and seeks to protect its citizens from harmful pollution and reliance on inefficient energy development. Our recently-enacted 33% renewable standard, the 2006 emissions performance standard for power plants, and the soon-to-be-launched cap-and-trade program for major polluters are but three of the landmark policies that are driving this fundamental shift toward cleaner sources of energy that will create jobs while improving air quality and protecting public health.

 

 

 

 

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Let’s Improve Texas’ Energy Efficiency Programs Instead Of Adding More Red Tape

Summer is upon us: in Austin on Monday the mercury hit 101 degrees, with the humidity it felt like 110; this can be compared to a historical average high of 92 degrees this time of year.  This weather report won’t surprise anyone that follows global warming trends: according to a report earlier this week, Texas is one of the 10 fastest warming states in the U.S. Since 1970, average temperatures have risen 2.3 degrees in the Lone Star state.  Rising temperatures mean rising demand and more stress on our already strained electric grid, so you would think the state would be focused on near term solutions for rising energy demand, specifically energy efficiency and conservation.

(Credit: www.poonamsagar.com)

The timing couldn’t be better either: last year, the state of Texas passed legislation to increase and strengthen energy efficiency programs and the Public Utility Commission (PUC) is currently developing a new rule around that legislation.  While this appears to be good news, some parts of the PUC’s proposed rule actually would hurt energy efficiency programs and decrease the effectiveness of current programs by adding unnecessary red tape and discouraging efficiency.  At the same time, the PUC has contracted with outside consultants to ask citizens to turn up their thermostats during the hottest days of the summer.  Such public appeals are commendable, but it doesn’t make sense to add red tape to proven programs that allow customers to reduce energy use without turning up their thermostats, while at the same time spending money on unproven programs that are difficult to verify.

At a PUC workshop last week, stakeholders voiced many of the concerns around proposed changes that would weaken energy efficiency programs.  Most stakeholders seemed to agree that the PUC proposal creates new problems without resolving existing ones, like better monitoring of existing programs to ensure they are working.  With temperatures rising and our electric grid already strained, we can’t afford those kinds of fixes. Given the broad stakeholder agreement, we hope the PUC will remember “if it ain’t broke, don’t fix it.”

Posted in Energy Efficiency, Texas / Comments are closed

EDF Energy Innovation Series Feature #6: The Learning Thermostat From Nest

Throughout 2012, EDF’s Energy Innovation Series will highlight more than 20 innovations across a broad range of energy categories, including smart grid and renewable energy technologies, energy efficiency financing, and progressive utilities, to name a few. This series will demonstrate that cost-effective, clean energy solutions are available now and imperative to lowering our dependence on fossil fuels.

For more information on this featured innovation, please view this video on Nest’s Learning Thermostat.

Imagine you were the leader of the team that developed the first 18 iPod models and the first three iPhone models, and you’ve decided to move on to the next big thing.  What will you invent next?

Tony Fadell was the leader of those teams, and when he left Apple he set his sights on reinventing the home thermostat. That’s right, the home thermostat. And his company – Nest Labs Inc. (Nest) – has become one of the hottest startups in Silicon Valley.

Thermostats have evolved over the years, and many companies now make programmable models that can adjust temperature settings throughout the day. That’s good news: residential and commercial heating and cooling accounts for nearly 40% of all U.S. carbon emissions. So improving the efficiency of heating and cooling is a critical piece of the climate puzzle and helps to lower electricity bills.

But even today’s “modern” thermostats seem to miss the mark.

“I bet your thermostat is ugly and impossible to program,” Fadell writes on his blog. “And I bet it drives you crazy.”

Source: Nest Labs Inc.

The Nest Learning Thermostat looks like an old-fashioned circular thermostat that got a 21st century facelift. You can certainly see the design approach that produced the iPod and iPhone. But what’s inside the Nest is more interesting: proximity sensors that know when you’re home, software that learns your heating and cooling preferences and wireless technology that allows you to monitor and adjust it from a website or a smartphone.

Nest says that few people use whatever programmable features their thermostats might have, and energy-conscious owners that adjust their thermostats manually (when they leave or arrive) make up to 1,500 adjustments a year. Nest’s Learning Thermostat automates those adjustments and makes them a lot easier.

“We threw out everything we know about regular thermostats and started from scratch,” said Nest’s director of corporate communications Kate Brinks. “And we ended up with a product that’s squarely focused on the user.”

Nest estimates that 90% of us don’t want to fiddle with the programming features of thermostats. So its device “learns” its owners preferences based on how the temperature is adjusted over a week or so, and then sets a schedule based on those preferences. Its proximity sensor can detect when the home is empty and when people arrive and build those patterns into its schedule.

For users that DO want a firmly set schedule, the “learning” features can be turned off. And for the growing number of smartphone owners, the device can be securely monitored and adjusted from anywhere. Brinks says that 99% of installed Nest thermostats are running an energy-saving schedule.

The smart grid, the Internet and wireless technology are creating a convergence of consumer electronics and energy. More and more of our daily activity involves devices and systems that can now be connected. Making that potential relevant, easy and even enjoyable for people will determine whether these products go mainstream and make a real impact on our overall energy use.

Nest says its Learning Thermostat is installed in every state in the US, has recently expanded into Canada and is now available at Lowe’s, on Apple’s online store and Amazon.com.

As you’d expect from a Silicon Valley tech start-up, Nest is mum on its plans for future products. “We’re 100% focused on making the simplest, most user-oriented thermostat,” said Brinks. But it’s hard to imagine that the company doesn’t have plans to reinvent a few other home-based products.

Posted in Energy Efficiency, Energy Innovation / Comments are closed