The Illusion of Eco Cars

This video presentation was developed by DW (Deutsche Welle) News, the German international broadcaster.  (Later deleted) The theme is described by adding a bit to the title: The Price of Green Energy Will Destroy Us.  The message is not about the exorbitant expense so much as the destruction of the world’s environment in order to save it.  The imagery in the video is compelling, and for those who prefer reading, I provide below an excerpted transcript in italics with my bolds.  H/T Mark Krebs

The video can be viewed at this link:

Climate change, long denied, is now sending shockwaves throughout the world. Citizens are demanding their governments take concrete action.
Greta: Why should we study for a future that is being taken away from us? [Applause]

In 2015 the UN climate conference in Paris struck an historic deal. Signatories committed to reducing greenhouse gas emissions.
COP 21 President Laurent Fabius: “ I hereby confirm the adoption of the Paris climate agreement.”

The energy transition is in full swing, the future belongs to renewable technologies.
Al Gore: This is one of the most impressive and astounding technological revolutions in all of history.

One commodity has become the primary symbol of this new environmental consciousness.
“People are convinced, they were convinced that all they have to do is drive an electric car, and that’ll solve all the world’s problems with co2.”

“People are just talking about wind and solar as if that’s going to solve the problem, it won’t.”

What if these supposedly clean energies are nothing of the sort, if they ultimately inflict even more damage on the environment than fossil fuels?

“Everything surrounding us in society is made up of minerals. Basically electric cars are made of metals and minerals, and they need to be mined somewhere.”
“ There’s no such thing as clean energy. As long as we’ve got this kind of human behavior, there will also be pollution.”

The energy revolution promises to sharpen the world’s sense of responsibility, but secretly it’s already wreaking its own havoc.

The ecological transition is chiefly economic in nature. An event like the Geneva international motor show makes that abundantly clear. Electric cars are omnipresent. They’re seen as future proof, the new vehicles are touted as green or emissions free.

As the petrol and diesel era nears its end, traditional car makers are reinventing themselves and playing the eco card. The adopters of electric vehicles are people who believe in sustainability. They want to do good for the environment and they want to do their part to contribute to fewer emissions and less pollution, a change in mood that chimes with new environmental requirements. These are COP 21 targets adopted by nearly 200 nations plus the EU.

“We have to meet the co2 emission targets that are set by the European Commission that all of us manufacturers have to make. And they’re becoming more and more stringent. If we don’t meet those targets, there are penalties that will follow and we will have to pay those penalties. And this is what we of course want to avoid.”

This rapid transition comes at a price. By 2023 it’s hoped that 225 billion euros will have been invested in e-cars worldwide. That’s the price of a ticket to tomorrow’s world.
CEO VW France: ‘ It’s a future market that so far makes up just a few percent of the overall market but this market will explode. We’re gearing ourselves up for a completely different ballpark. “The electric car will grow from niche product to mass-produced one, and we’ll be offering it at prices everyone can afford.”

If you believe the car makers, the e-car only comes with a list of advantages. It won’t just push up sales, it’ll also protect the environment, a technological miracle. Before too long there’ll be hundreds of millions of these vehicles on the world’s roads. They no longer run on petrol or diesel.  But other raw materials are essential in the manufacture of their batteries. Rare metals for example. These metals are already present in many components of our combustion vehicles. For example cerium ensures that windshields can filter UV rays. And we owe the colors and touch sensitivity of dashboard screens to europium and indium.

But in an electric car, rare earth metals play a much more significant role.

They’re crucial for the vehicle’s operation. Without neodymium for example, an e-car wouldn’t even be able to start. Neodymium is used to make magnets; they convert electric energy into mechanical energy, thereby powering the car.

The battery is the heart of an electric car. It constitutes up to 50 percent of the vehicle’s weight and contains cobalt and graphite among other elements. But that’s not all. A battery contains many rare metals, especially lithium, that’s the lightest one. It allows an exchange of electrons which in turn charges or discharges energy.

The auto industry is reliant on these little known raw materials and they’re also present in most other green technologies. It’s not just the e-car that needs rare metals they’re used everywhere for the magnets and wind turbine motors, for example. Rare metals are also crucial for the manufacture of solar cells, for photovoltaic systems. Without them we couldn’t generate any green renewable energies.

Today renewables make up almost 10 percent of worldwide electricity production. As a result of the energy transition wind and solar energy could meet almost half of our electricity needs by 2050. In this greener world, rare metals will be almost indispensable for lighting, heating and transport.

So where do these vital resources come from? Cobalt is chiefly mined in the Democratic Republic of the Congo. Australia Chile and Bolivia all have huge lithium reserves, and Indonesia is a key producer of nickel, zirconium and tin. Today nations on all continents produce many hundred million tons of these raw materials. One country in particular owns vast reserves of strategic resources. China is the dominant producer of these sought after metals. In particular it produces two-thirds of the world’s supply of a mineral that’s especially important to green tech companies: Graphite.

We’re in the far north of the country, in the province of Heilongjiang. Almost unnoticed excavators have carried away an entire mountain right down to the ground water level to secure our green future. Graphite is often produced in ramshackle factories. These men work day and night without adequate clothing or respiratory protection. They’re the miners of the 21st century.
Miner: “We know our job exposes us to a health risk but we wear a mask for protection. Breathing this air over a long period of time can give you silicosis, where the lung becomes as hard as stone.”

The fine black dust floating in the air contains hydrofluoric acid. Inhaling large amounts of this caustic contact poison can potentially cause death.
“Do you know what this graphite’s used for?”
Miner: “For lots of things. For example, these days it’s used in all types of e-cars mainly for electric car batteries.”

The graphite residues are dispersed over many kilometers throughout the surrounding area. Before their very eyes farmers are witnessing a huge toxic carpet of dust building up on the region’s fields. Here the plants no longer sprout any leaves and the soil is losing its fertility.

Farmer: “There’s waste ore lying around everywhere like garbage. Of course we’re upset about it, in fact we’re very upset. They don’t take any responsibility. We can’t do anything. We’re small, if we protest they will take us away in handcuffs. You need to see it with your own eyes to understand.”

Considering how hugely profitable graphite is to Beijing, these people’s lives are of little consequence. And China is home to thousands of storage sites and production facilities for these sought after metals, indium, antimony, gallium, But also tungsten and germanium reserves are plentiful across the nation. China plays a key role on the international market for all these metals. We can assume that in the e-mobility sector alone, demand will rise rapidly over the coming 10 or 20 years for the most sought after rare earths. Demand is growing by up to 25 percent per year

For our society’s energy transition the Chinese are paying with especially severe environmental damage and high loss of human life.

In many mining regions residents have even left their homes. Entire villages were simply given up.
Chen Zhanheng: Here many companies only care about cost reduction. These companies don’t treat their waste emissions, slag and wastewater. They dispose of them in secret. The government does carry out checks, but there are ways to cheat the regulations. If an investigation is ordered, the companies play along and follow the rules. But the moment the inspectors are gone, they stop treating their waste and just dispose of it. Behavior like that is irresponsible.”
Scott Kennedy: “Central government really would like the mining of minerals to be much more environmentally friendly, but local governments are the ones that either own the mines or are invested in the companies that work the mines. They’re responsible for generating employment, tax payments and growing those local economies. And it’s the local government’s trade off to growing their economy for problems associated with the mining.”

Three thousand kilometers from Heilongjiang, in inner Mongolia, the Chinese have built imposing industrial centers. The industrial sites of the city of Baotou are devoted exclusively to the mining of rare earth elements, a special group of rare metals. The worst environmental damage is caused by the plant’s illegal disposal of waste water. This huge artificial lake on the outskirts of the city is fed by black streams of water containing heavy metals and toxins.

Chen Zhanheng: “Wastewater from the production of rare earth metals is even reaching the groundwater, and in some places this water is being used, but of course that’s problematic. It can be very harmful to people because it contains fluorine, for example, that makes our bones brittle raising the risk of fractures. Slag can contain radioactive thorium, which is also reaching the groundwater and spreading slowly from there. Alternatively it’s stirred up as dust by the wind and settles everywhere in the town or village. That’s how radioactive pollution occurs.

Around Baotou thousands of former villagers have begun a new life in soulless sleeper towns. They’re green technologies’ first refugees. One of them is Gao Sia. The farmer had to give up her farm, the health risks were simply too great.
Gao Sia: “Our livelihoods have been ruined. Young people earn a bit of money with casual work. Their families have nothing and they can’t support them. The water we use to wash and clean dishes every day is totally white. It’s so bad the tap’s blocked, nothing comes out. People are getting cancer, a large number very many. The metals they produce aren’t harmful, they’re sold for a great deal of money. But the mining creates wastewater and pollution.

These new instances of environmental pollution on the other side of the world are the price for our wind turbines, our solar panels and our clean cars, improving air quality in Europe.

The paradox is that greenhouse gas emissions continue to exacerbate climate change all around our planet.
Engineer: To make something clean you always have to pollute something else. There’s no such thing as a co2 free and 100 % ecological product, regardless of what we might sometimes read on the label. It’s impossible, there’s always going to be a knock-on effect. If we want to see what pollution looks like, the environmental damage caused by our ever so clean products which we like to believe are made by workers in white coats, then we only need to look at industrial zones in China or elsewhere.”

Our green technologies don’t just contain rare metals, they require metals of all kinds including the most widespread.

A wind turbine consists of an average 20 tons of aluminum and up to 500 tons of steel. An e-car contains up to 80 kilos of copper, four times more than in some combustion vehicles. This reddish-brown metal is especially important for green tech companies.
Jean-Marc Sauser: “The energy transition is consuming huge amounts of copper, not just in the construction of wind turbines, but also in the connector cables that link the turbines to each other and the grid. The electricity has to reach its target destination after all. If you want electric cars, then you need charging points everywhere. For that you have to lay copper cables, and that’s what’s happening at the moment.
Olivier Vidal: “If you take copper for example, it gives us a clear illustration of what’s going on. Since the beginning of time humanity has produced between 800 million and a billion tons of copper. If we continue on this current growth trajectory will produce the same amount in the next 30 years. We’ll have to produce as much copper in three decades as we’ve consumed since the beginning of time. The demand is huge.”

This increased demand for regular metals such as copper means many other nations are affected by the energy transition. To gauge the full extent of the impact we need to travel thousands of kilometers to South America. We’re in northern Chile. Chuquicamata is the world’s largest open pit copper mine, which is publicly owned. Its vast crater has a diameter of four kilometers and is more than one kilometer deep. Increased worldwide demand means more laborers and more machines.
Production Director: “Last year we refined 330 000 tonnes of copper here in Chuquicamata. It’s pure copper ready for the market. Once we start mining underground as well, we expect to refine 470 000 tons of copper in Chuquicamata. It’ll be an historic year for the mine, 470 000 tons.”

Thirteen percent of the world’s copper reserves are found here in Chuquicamata, but the deeper the machines dig the less metal they’ll find in the ground. At the current pace of extraction, there are already signs that demand may outstrip supply.
Olivier Vidal: “Geologists are warning of a copper shortage that could take hold in just a few years. Pessimistic analysts are predicting a spike in production from 2030 to 2040. In other words today, followed by a decline in primary copper production.”

Just like China’s graphite industry, the copper mines of Chuquicamata are polluting the earth and water with heavy metals. Almost 10 percent of all jobs in Chile depend on copper extraction. The environmental damage caused by mining is completely ignored
Mayor of Tocopilla: “We have a water problem, a serious consequence of the mining and industry in this region.”

This is because mining and processing the mineral requires huge volumes of water. It’s thought that Chuquicamata uses 2000 liters per second. This, although in many parts of this arid desert it hasn’t rained for five hundred years.
Damir Galez, Historian: “The mining industry siphons off most of its water from wetlands and groundwater the water consumption is enormous.”
Mayor: “The water is practically running dry because more is being taken than nature can produce. The natural water reserves of our region are being excessively exploited by mining.”

To get a handle on the actual environmental impact, it’s necessary to examine not just mining itself, but the system as a whole.

The contaminated area covers several thousand square kilometers.
Antofagasta is four hours by car to the southwest of the Chuquicamata mine. The town’s population is used to the daily rumble of trains and trucks bringing the copper to this industrial port. From here the metal is exported all over the world. The air is thick with heavy metal particles released by the vehicles without anyone really noticing.

Although the mine is far away, it has brought disproportionate levels of ill health to the 200 000 people who live in Antofagasta. In 2016 this doctor published a study that to this day has been ignored by the copper industry.
Health Authority: “We studied contamination levels on the roofs of schools and kindergartens where we found a high concentration of heavy metals. In other parts of Chile people mainly die of cardiovascular disease. In the North the main cause of death is cancer, in particular lung cancer. A link to the contamination is indisputable. In some districts of Antofagasta 10% of residents have cancer.”

And producing electricity for the Chuquicamata mine inflicts further damage on people and the environment. To assess the full extent of the problem we’re traveling almost 300 kilometers to the north. Sandwiched between desert and sea the little town of Tocopilla appears cut off from the outside world. Isulina Jerez has lived here all her life. Ten years ago one of her sons died of lung cancer; he was just 17 years old.
Isulina Jerez: “As much as I’ve tried to find an explanation, I see no reason why my son who never smoked and always led a healthy life died at the age of just 17. He was very active and sporty, he was the healthiest of all my children. Then the cancer came and carried him off.”

It’s often difficult to breathe in Tocopilla, the cause of the problem is producing power for the insatiable mine of Chuquicamata. Chile has 28 coal-fired power stations. The government put one of them is here in this tiny town on the pacific coast.

40 percent of Chile’s electricity is gleaned from this fossil fuel. The toxins released in the process have already led to high rates of cancer. Entire systems are being sacrificed: the land, nature, and people’s health. In turn these sacrifices benefit other regions who profit from them. There people can afford the luxury of cleaner, healthier, greener and more renewable energy. But other people pay the price for that.

Damir Galez: “There’s copper here but no coal. That’s brought from many thousands of kilometers away coming from Colombia and New Zealand. The procurement process does of course have an impact. For example, at the coal mines in Colombia, the populations there are exposed to a high concentration of heavy metals in the air. And the ships that transport the coal pollute the sea. The coal travels thousands of kilometers before it arrives in Tocopilla. That requires a well-developed network of mines, ports, trains, ships and thermal power plants. At the end you’ve got the copper mine.

Copper mining takes place in the dark and what you don’t see of course doesn’t count for anything.

But the company that runs the coal-fired power station in Tocopilia claims green credentials. The multinational has even declared itself world market leader for co2 free technologies. The company in question is Engie based in France.
Damir Galez: “During my time in France I was able to observe the big contradiction in all of this. There Engie presents itself as a clean company promoting renewables and always prioritizing sustainability. But this sustainability in Europe, particularly in France has a very dark side: Electricity production.

To be able to generate electricity in Chile, the French energy company operates six coal-fired power plants there, a seventh has been under construction since 2015.

SrVP Engie: “We’re helping the Chilean government. Instead of closing the power stations, which would halt factories and trains and plunge the nation into darkness, we aim to support Julia’s (Julia Wittmayer) EU energy transition. It’s about finding the right moment for the construction of new plants in the renewable sector. We’re working a great deal with solar and wind power and we’d like to support the government in this conversion. That’s our mission and our responsibility.

Damir Galez: But you’re still building a new coal plant in northern Chile.

SrVP Engie: “As i just said Engie’s task is to support the government and we’re currently doing just that. It’s impossible to decommission all coal plants as long as they supply 40 percent of the national demand for electricity. That’s the case in Chile: Without this 40% industry would grind to a halt. We’re supporting the conversion to renewables and a reduced electricity consumption.

Nicolas Meilhan: The eco car has become a kind of religion. If we now can see that maybe it isn’t the be-all and end-all, and the same could be said for solar cells and wind turbines to a certain extent, then all the governments talk about the electric car that’ll save the world will come crashing down like a house of cards. In 20 years we’ll wake up because harmful emissions will have continued to rise and the e-car won’t have changed anything. The next energy crisis is already in the making: ElectricGate.

But at the Geneva motor show, car makers have other things on their minds. New brands are jostling for attention in a promising market. Volvo for example has founded a subsidiary dedicated to making electric cars with a carefully thought out marketing campaign pledging that by purchasing its models we’re saving the planet.

Global automotive industries annual revenue is 2 000 billion euros.

That’s equal to the GDP of a nation like France. With that in mind, very few car makers are prepared to look reality in the eye.
VP Lexus: “ It’s probably an interim solution, but is it also the best long-term solution? I’m not sure about that because if we’re just talking about purely electric vehicles, we can’t just be looking at the car itself. We also need to consider the issues of battery and electricity production. And in many nations the latter isn’t particularly ecological. That’s a global problem.”

So does the future of green energies lie in further innovations? That’s what car makers are promising at least.
SrVP Engie: “The energy transition isn’t over, there are still many innovations to come. We’ve invested in startups that want to develop new technologies, organic solar cells for example. They’re very different from regular cells because they don’t need any silicon. Organic solar cells are like a sheet of paper, very flexible; they can be installed anywhere. If we fixed these thin film cells to all large office blocks we could generate an incredible amount of electricity.

Olivier Videl: “Some key technological developments have the potential for enhanced effectiveness. Performance will improve through research in this area. Despite everything we should throw our weight behind these technologies, because they’re ripe for development.”

Chile has pledged to shut down all its coal plants, but not before 2040. So Engie won’t be able to address the contradiction between its green washing and the bleak Chilean reality anytime soon.

Comment

This abridged transcript excludes the ending message which devolved into a Malthusian appeal, echoing the Club of Rome’s Limits to Growth.  The video nailed the essential point:  Obsession with e-cars in particular, and non-carbon energy in general will destroy the planet in the guise of saving it.  The hypocrisy is dripping from those who terrorize the world with fears of global warming and point to zero carbon as the solution.  They get all righteous and indignant at car companies who organized to profitably produce e-cars to meet the demand the warmists created.  They expose their quaint naivete that people can be supplied with goods without any profit incentive. The dangerous obsession has three components.

The Transition to Zero Carbon is Unnecessary

Earth’s weather and climate changes are within the range of historical variation.  In particular, there has been no accumulation of warming in the last four decades.  The rising CO2 in the air has been a boon to the biosphere and to crop production.

Replacing Fossil Fuels with Zero Carbon Energy is Impossible

Presently, despite all of the money invested in them, Wind and Solar power supply 2% of the world’s energy needs.  The renewable energy solution does not scale to the desired outcome of reducing fossil fuel usage to any meaningful extent.

The Attempt to Electrify Everything Will Bring Environmental Desolation

Trying to power modern societies with intermittent wind and solar power will extract planetary resources to depletion.  The landscapes of Northern China and Northern Chile will become typical rather than extreme situations to be managed.  The imaginary climate problem will not be solved, but the environmental catastrophe will be all too real, and of our own making. Cease and desist this madness.

World of Energy Infographics

Raymond has produced another in his Simple Science series, this one providing images explaining  how the world uses its energy and where the energy comes from. It’s a pictorial representation of statistics compiled by the International Energy Agency (IEA) in their 2020 World Report, the latest year being 2018.

World of Energy, World of CO2, and World of Climate Change are projects at RiC-Communications, based in Zurich.  The exhibits are available for download at the following linked titles:

World of Energy

World of CO2

World of Climate Change

In addition there is an introductory video to the CO2 series The three titles above link to summary posters suitable for printing.  In addition there a some charts related to water and ice:

World of Ice Ages

The World of Energy Infographics

Energy consumption is an important topic and on everyone’s lips. Since fire has been used as an energy source, fossil fuel use has played an important role in the evolution of our species. The rise of carbon in our atmosphere can be traced back to the beginning of industrialization and contributes in part to today’s levels of 420 ppm. Fossil fuels account for 81% of our total energy supply, a dependence that has not diminished to this day. This valuable resource drives the global economy and helps to reduce poverty worldwide. However, fossil fuels are not evenly distributed across the world and have always been the source of conflict or leverage. Renewable energy is becoming more popular, but efforts to replace the high density of fossil fuels will not be easy.

– N° 1 Global Energy consumption in percent by all sectors
– N° 2 Global Fossil fuel consumption in percent by sector
– N° 3 Oil consumption in percent by sector
– N° 4 Natural Gas consumption in percent by sector
– N° 5 Coal consumption in percent by sector
– N° 6 Electricity Generation by Source
– N° 7 Total energy supply by source

 

 

Comment

Many observations are possible by studying these exhibits.  For example, some activists insist that passenger air travel is dangerously warming the planet, and ordinary people should stay home, with flights restricted to essential trips by global elites.  A glance at the transportation statistics on slide #2 shows Aviation is only 4% of fossil fuel consumption (12% of 34% FF used for transportation).  And aviation includes cargo transport, so passenger travel is a fraction of that.

The bulk of FF transport consumption is Road, meaning cars and trucks, which is why some are demanding electric vehicles be the only means of mobility.  Yet a look at slide #6 shows that presently only 10% of electricity comes from Wind, Solar and waste fuels.  Furthermore, for all of the investment in wind and solar power, slide #7 shows that so called “green energy”` supplies only 2% of the world’s energy needs.

 

 

New England Energy Inflation Self-Imposed

LNG tanker in Boston harbor. Pipelines from Pennsylvania would fix this. MEDIANEWS GROUP VIA GETTY IMAGES

Christopher Helman writes at Forbes  Why Is New England Paying The Equivalent Of $180 Oil For Natural Gas? Excerpts in italics with my  bolds and some added images.

Yesterday New Englanders had reason to feel a little more … European than usual. that’s because according to Department of Energy data they were paying a spot price of $30.5 per million British thermal units for natural gas.

This is an absurd price, in line with what Europeans, facing their worst energy crisis in a generation, have been suffering in recent months. To put it in context, $30.5 per mmBtu is the equivalent of paying $180 for a barrel of oil (double what it is today), or 20 cents per kilowatt-hour for electricity. In other words: nuts.

Project abandoned in 2017 after New York blocked planning and permit processes.

How much are Bostonians getting shafted on natural gas? By comparison, the spot price of gas on the Gulf Coast of Texas and Louisiana yesterday was $5.50 per mmBtu (the energy equivalent of about $33/bbl oil). This price spread is exceptionally wide, nearly unprecedented.

But it’s easily explained — by the perennially misguided energy policy in New England.

Just 200 miles to the south, beneath western Pennsylvania, lay the nation’s biggest gas field — the Marcellus shale. From practically nothing 15 years ago, the Marcellus now provides roughly a third of America’s gas supply, more than 30 billion cubic feet per day. America’s shale gas fracking boom is the primary reason why the nation has been able to dramatically switch away from dirtier coal, and cut overall carbon dioxide emissions by nearly 20% — more than any other leading economy.

Project abandoned in April 2016

But very little Marcellus gas flows to New England, because NIMBYs and their politicians have blocked construction of pipelines. Yet the region still relies on cleaner-burning gas to fuel power plants. Over the weekend, when New England was walloped by snow, its power grid was running 37% natural gas, 22% oil, 22% nuclear, 11% renewables, 6% hydro power, and less than 1% coal. (See current mix here.)

Electrical power resource mix from ISO-New England

And yet how does New England get its gas? Nearly all of it comes by ship, in giant insulated tankers carrying -260 degree condensed liquefied natural gas, most of which dock at the Everett LNG regasification terminal in Boston harbor, owned by Exelon Generation.

Where’s that gas come from? Despite more than $50 billion of recent investment into LNG liquefaction plants in Texas and Louisiana, you won’t find any American freedom gas being delivered into Boston. Instead, because of a law called the Jones Act (which requires ships carrying goods from one U.S. port to another to be U.S. owned and flagged), the gas that lands in Boston has historically been sourced from fields in Trinidad & Tobago, Norway, and Russia.

Which is why New England is now paying through the nose for gas. Or rather, they are paying the international price — in line with LNG spot prices in Tokyo, Shanghai, and Europe.

Is it reasonable that New England’s natural gas price depends on decisions made in Europe to shut down nuclear power plants, turn off the flows from giant fields like Holland’s Groningen, and rely on Gazprom to maintain flows from Russia? Of course not. But without more pipelines from the Marcellus (or solar panels and wind turbines covering every hillside), this is the reality, this is how New England ends up burning oil to generate a fifth of its wintertime electricity.

If you live in the northeast how can you personally arbitrage this market madness? Make sure you fill up heating oil tanks in the off-season, chop your own firewood, and buy shares in natural gas producers and exporters. 

See also Payback Upon Climate Grasshoppers

 

It’s Energy Will Make or Break the World Now

Ayaan Hirsi Ali explains how Energy has become the first and foremost world public concern in her Spectator article Energy is the most important issue in the world.  Excerpts in italics with my bolds and added images.

Gas prices are climbing, Russia is building pipelines, yet we’re focused instead on appeasing climate activists

One issue more than any other will dominate airtime and influence policy in 2022: energy. Americans are seeing the highest prices at the pump in seven years. Since Biden took office, average gas prices are up by more than $1 a gallon. In November, gas prices in Mono County, California hit more than $6 per gallon, forcing some residents to drive to Nevada (where gas taxes are lower) to buy fuel.

The price of natural gas in the US is at its highest in seven years, and up more than 180 percent in the last year alone. In Europe, the situation is even worse.

Europe’s gas reserves are at record lows. In Germany, which already had the EU’s highest energy prices, bills are up 30 percent in a year. If the European winter is harsh, supplies for heating homes and businesses may have to be rationed.

Domestic energy is a foreign policy issue. The threat of a Russian attack on Ukraine was one of the factors driving gas prices up in late 2021. In December, Annalena Baerbock, Germany’s foreign minister, warned that if Russia invaded Ukraine, the Nord Stream 2 natural gas pipeline from Russia to Germany “could not come into service.” That would mean serious shortfalls in Germany’s energy supply this winter, as Germany is dependent on Russian natural gas. Germany’s economic affairs minister, Robert Habeck, now calls Germany’s assent to Nord Stream 2 a “geopolitical mistake.” Days before Christmas, Russia reversed flows on Yamal, another pipeline to Germany. European energy prices reached new peaks. Russia claimed the reversal had no “political implications.”

Europe is splitting over nuclear power as the answer to secure supplies of green energy. France pushed to classify nuclear energy as “sustainable,” a move that would unlock billions of euros in state aid and private investment, earmarked for green energy. An EU proposal was recently put forward to do just that — despite opposition from Germany, which threw its lot in with Nord Stream 2 and Putin’s natural gas under Angela Merkel.

And don’t forget Iran. Its march toward acquiring nuclear arms creates severe vulnerabilities for the US and its allies — especially Israel, but also the oil-rich Gulf states. China continues to underwrite the regime in Tehran by purchasing Iranian oil and evading and ignoring US sanctions.

Energy will determine elections in Europe and the US in 2022 and beyond. It will determine foreign policy decisions. It will be an overarching and enduring theme for years to come. But energy has always been part of the conversation. What makes this year different? Wasn’t there an even bigger energy crisis in the 1970s?

The answer to both those questions is this: unlike in the past, our current energy crisis derives from our own mistakes. We’ve put all of our eggs into the basket of renewable energy, but its promise has been oversold. The costs of solar and wind power generation may have fallen, but they cannot provide stable energy sources because of fluctuations in the weather. That tends to reduce the overall efficiency of power grids.

The green movement also underestimates the true costs of renewable energy. As Michael Shellenberger explains, a wind farm requires 370 times more land than a nuclear plant does. If we shift away from nuclear energy and toward renewables as Joe Biden’s climate plan proposes, the impact on America’s natural environments would be devastating. Yet the Biden administration remains committed to renewables as a “green” solution.

After Angela Merkel phased out nuclear plants almost entirely, Germans now pay the highest energy costs in Europe, not least because a renewables surcharge of 20 percent is added to their bills. The various European and British decisions to ban fracking have had similar effects on the cost of heating a home. The effect of opposition in the US will be no different.

Fracking played a key part in the US’s transition from coal to natural gas, which led to significant reductions in American emissions of carbon dioxide. But some Democratic-run states are attempting to ban fracking entirely through legislation and, as in California, denying permits. Shale oil production barely grew in 2021, and we are unlikely to see a fracking revival in the near future. A return to energy dependence on other countries is becoming unavoidable. We’ve seen this already: in November, Biden appealed to OPEC to increase production.

Americans and Europeans have become so focused on appeasing climate activists that they’ve forgotten the importance of power — in the sense of geopolitics, not kilowatts. While the West was debating ways to reduce emissions at the UN’s COP26 summit in Glasgow, Russia and China didn’t even bother to show up. While we fall over ourselves to acclaim Greta Thunberg, Russia builds strategic gas pipelines and China builds coal-burning power stations.

The politics of energy will impact the lives of everyone this year, the poor especially. To avoid a new self-inflicted energy crisis, unlike in the 1970s — the West must reassess the costs of the “green transition.” We need a strategy that generates power efficiently, and without handing geopolitical power to our strategic rivals.

 

 

 

Green Electricity Facts on the Ground

Francis Menton writes at Manhattan Contrarian How About A Pilot Project To Demonstrate The Feasibility Of Fully Wind/Solar/Battery Electricity Generation?  Excerpts in italics with my bolds.H\T John Ray

At this current crazy moment, most of the “Western” world (Europe, the U.S., Canada, Australia) is hell bent on achieving a “net zero” energy system. As I understand this concept, it means that, within two or three decades, all electricity production will be converted from the current mostly-fossil-fuel generation mix to almost entirely wind, solar and storage. On top of that, all or nearly all energy consumption that is not currently electricity (e.g., transportation, industry, heat, agriculture) must be converted to electricity, so that the energy for these things can also be supplied solely by the wind, sun, and batteries. Since electricity is currently only about a quarter of final energy consumption, that means that we are soon to have an all-electric energy generation and consumption system producing around four times the output of our current electricity system, all from wind and solar, backed up as necessary only by batteries or other storage.

A reasonable question is, has anybody thought to construct a small-to-moderate scale pilot project to demonstrate that this is feasible? Before embarking on “net zero” for a billion people, how about trying it out in a place with, say, 10,000, or 50,000, or 100,000 people. See if it can actually work, and how much it will cost. Then, if it works at reasonable cost, start expanding it.

As far as I can determine, that has never been done anywhere. However, there is something somewhat close. An island called El Hierro, which is one of the Canary Islands and is part of Spain, embarked more than a decade ago on constructing an electricity system consisting only of wind turbines and a pumped-storage water reservoir. El Hierro has a population of about 11,000. It is a very mountainous volcanic island, so it provided a fortuitous location for construction of a large pumped-storage hydro project, with an upper reservoir in an old volcanic crater right up a near-cliff from a lower reservoir just above sea level. The difference in elevation of the two reservoirs is about 660 meters, or more than 2000 feet. Here is a picture of the upper reservoir, looking down to the ocean, to give you an idea of just how favorable a location for pumped-storage hydro this is:

The El Hierro wind/storage system began operations in 2015. How has it done? I would say that it is at best a huge disappointment, really bordering on disaster. It has never come close to realizing the dream of 100% wind/storage electricity for El Hierro, instead averaging 50% or less when averaged over a full year (although it has had some substantial periods over 50%). Moreover, since only about one-quarter of El HIerro’s final energy consumption is electricity, the project has replaced barely 10% of El Hierro’s fossil fuel consumption.

Over at the website page for production statistics, it’s still more excitement about tons of carbon emissions avoided (15,484 in 2020!) and hours of 100% renewable generation (1293 in 2020!). I think that they’re hoping you don’t know that there are 8784 hours in a 366 day year like 2020.

So why don’t they just build the system a little bigger? After all, if this system can provide around 50% +/- of El Hierro’s electricity, can’t you just double it in size to get to 100%? The answer is, absolutely not. The 50% can be achieved only with those diesel generators always present to provide full backup when needed. Without that, you need massively more storage to get you through what could be weeks of wind drought, let alone through wind seasonality that means that you likely need 30 days’ or more full storage.

Then take a look at the picture and see if you can figure out where or how El Hierro is going to build that 40 times bigger reservoir. Time to look into a few billions of dollars worth of lithium ion batteries — for 11,000 people.

And of course, for those of us here in the rest of the world, we don’t have massive volcanic craters sitting 2000 feet right up a cliff from the sea. For us, it’s batteries or nothing. Or maybe just stick with the fossil fuels for now.

So the closest thing we have to a “demonstration project” of the fully wind/storage electricity has come up woefully short, and really has only proved that the whole concept will necessarily fail on the necessity of far more storage than is remotely practical or affordable. The idea that our political betters plow forward toward “net zero” without any demonstration of feasibility I find completely incomprehensible.

See also Green Electrical Shocks

 

 

Sane vs. Stupid Energy Policies

Gene Yaw writes at Real Clear Energy What Critics Get Wrong About Energy Choice.  Excerpts in italics with my bolds and added images.

Last month, seven environmental groups wrote a misguided letter to Philadelphia officials bashing legislation that I sponsored as counterintuitive to the city’s decarbonization goals.

In October, six Democrats, including two from the southeast corner of the state, joined all 28 Republicans and our chamber’s lone Independent to approve Senate Bill 275. That’s a veto proof majority, for those counting.

Why? Because the bill’s purpose is simple: it prevents Pennsylvania’s 2,500-plus municipalities from banning access to certain utilities, like natural gas or heating oil. This will preserve consumer access to affordable electricity, no matter where they live, and prevent a chaotic patchwork of regulations that ultimately undermine statewide environmental and energy policies.

It also reaffirms what many local and statewide officials, including the Pennsylvania Public Utility Commission, already understand to be true: municipalities do not have the authority to restrict energy sources.

What the bill does not do is prevent Philadelphia City Council from pursuing its goal to retrofit all publicly owned buildings to reduce emissions 50% over the next decade. It’s not just about ripping out gas lines and oil tanks and installing heat pumps instead. Reducing electricity usage – through upgraded windows, roofs and insulation – is also a crucial piece of the puzzle.

The aforementioned environmental groups said that SB 275 will eliminate any hope of Philadelphia reaching carbon neutrality by 2050. Which begs the question, if the only way to achieve decarbonization is by indiscriminatingly banning utilities deemed “dirty” and “bad,” is that even a good plan? Isn’t there an old adage forewarning the danger of putting all your eggs in one basket?

Banning specific fuel sources in pursuit of “clean energy” makes zero sense in Philadelphia and beyond. First, clean energy is a misnomer. There’s simply no such thing. Even if we shuttered every coal and gas plant across the world tomorrow and began a frantic campaign to install wind and solar farms in their place, we’d need to cover about 1.8 million square kilometers of land and coastline to replace the lost capacity.

And we would need fossil fuels to produce all of those solar panels and wind turbines. Just like we need oil and gas to create and distribute nearly every product we use every single day, from the medications we take to the clothes we wear to the packaging we use to preserve our food. To assume that banning fossil fuels will only impact emissions and electricity prices is to ignore the intricate web that is our economy.

Besides, the city doesn’t exist in a vacuum. It’s connected to a vast, 13-state power grid called PJM, that manages the safe and reliable flow of electricity for 65 million people from Chicago to Washington D.C. and many places in between.

PJM’s operators ensure that its network of transmission lines and generation facilities work in tandem every minute of the day, preventing system overloads that could trigger massive utility failures and inflict untold suffering on millions in its territory. So, if electricity demand spikes in Philadelphia, but environmental policies have forced fossil fuel plants into nonexistence, there are fewer reliable energy sources to shoulder the burden.

 

A similar story unfolded in Texas in February when an unprecedented winter storm froze generators and rendered solar and wind farms useless, leaving more than 4 million residents without power or water for days. More than 200 people died amid the chaos. The Electric Reliability Council of Texas, the state’s grid operator, promised to winterize its system to harden it against future storms, but the damage was done. The rest of the nation should take note: a diversified and robust grid is key to preventing systemwide catastrophes.

Which brings me back to the idea of banning access to fossil fuels. If we are willing to sacrifice our food, clothing, shelter and transportation, doing so might eliminate some carbon emissions in the United States. Globally, U.S. emissions equal about half of what China produces on an annual basis, according to 2018 figures. The annual combined emissions from the other three top polluting nations – India, Russia and Japan – would likewise take our place.

Then there’s the emissions from sources we can’t always control: volcanic eruptions, livestock, forest fires. Or the damage caused by human activity like deforestation and degenerative agriculture. Even if the United States found a solution to every single unsustainable practice that critics say contributes to climate change, the rest of the world’s leading nations aren’t following suit.

So what do these groups really want from the city? They want officials to take a sledgehammer to our carefully planned and managed power grid, collapse our economy and leave Pennsylvanians with higher electric bills, fewer jobs and unreliable utilities. All for the sake of reducing carbon emissions that will be offset by the rest of world, in perpetuity.

Protecting energy choices for consumers means that residents can pursue “cleaner” electricity sources if they want to or can afford to, while not punishing those who don’t have the option. SB 275 isn’t about protecting special interests – what does a senator from Williamsport owe to Philadelphia’s gas utility?

What I do care about is promoting sound energy policy that doesn’t leave others behind for the constant pursuit of ideological purity, no matter how impractical or impossible or harmful it is for the very people such policies purport to help.

Senator Gene Yaw was elected to represent the 23rd Senatorial District consisting of Bradford, Lycoming, Sullivan, Union Counties and a portion of Susquehanna County. He serves as Chairman of the Senate Environmental Resources and Energy Committee.

Pushback on Corrosive Energy Idiocy

Congressman Byron Donalds excoriates the House Oversight and Reform Committee for biting the hands that energize the nation in the five minutes allowed him in video below.  (The settings button on the video allows you to turn on subtitles). For those who prefer reading, my transcript (lightly edited) follows in italics with my bolds and added images.

Chair: The gentleman from Florida Mr. Donalds is recognized for five minutes.

Donalds: Thank you Madam Chair and first of all to the witnesses, the the leaders of Exxon, Chevron, BP, Shell, I know that the climate activists are in twitter world which Dave Chappelle says doesn’t exist. And he’s right because it’s just people who have nothing better to do but type on their keyboards. And we do it too here in congress.

But let’s be very clear. You deserve an apology, because what I witnessed today was just rank intimidation by the chair of this committee, trying to get you to pledge on what you’re going to spend your money, is a gross violation of the first amendment. Just because we’re members of congress, and we’ve got microphones and we passed laws, does not mean that we also have the ability to infringe on your ability to organize, whether it’s API or anybody else, or what you choose to spend your money on. It is disgusting, absolutely disgusting. Somebody needs to go call Merrick Garland to tell them to get in here and watch the intimidation that came from this very panel today.

Because this is not about defending big oil or defending big anything; it’s about defending the ability of people in our country to be free to say what they want, think what they want, spend their money how they choose. And if we’re not going to be any better than the Chinese, how do we ever expect to beat them on the world stage? When we’re cutting our neck when it comes to energy production, while they are burning more coal, burning more oil. They’re increasing their emissions and they’re not showing up in Scotland. And why not?

Because they’re interested in building an economy; they’re interested in becoming the dominant economic player across the globe, in becoming the dominant military player across the globe.

Meanwhile we joke around and mess around intimidating you guys who frankly heat our homes, you cool our fridges and keep our cars going. This is insane. So I’m sorry for you and I’m sorry for the people in our country who have to witness shenanigans like this and witness circuses like this.

One show on HBO or whatever it is, is called the circus because that’s exactly what this is. Madam Chair, I’m requesting that a letter be entered into the record. This is a letter written by ranking member Comer and the other ranking members on this committee that actually speaks to the chilling effect that has come from you Madam Chair, asking you to stop intimidating companies, requesting information that is their first amendment right to have. I ask that letter be admitted into the record under unanimous consent

Chair: Without objection.

Donalds: Thank you Madam Chair.

I have a question for Mr. Sommers, now that we’re done with that. Mr. Sommers, it was asked of the executives if they believe in electronic vehicles. And it’s a noble goal to have, but Mr. Sommers: Where does the energy for electricity production actually come from?

Mike Sommers, President, American Petroleum Institute: Thank you congressman. Before I address that question, I do want to clear up one thing. Having a difference of views on electric vehicles is not climate disinformation. We as an organization support all forms of energy. We support the rapid advancement of electronic vehicles as well. But at the same time we don’t agree that the federal government should be the ones funding the build out of that infrastructure. As we built out service stations across the country, those service stations have been developed not by the federal government but by private industry. And members on this panel themselves are investing in building out that infrastructure, as is appropriate for the private sector.

First of all your question is very very important, which is: Where does that energy come from? In the United States most of the energy comes from natural gas. It has replaced coal as the primary source of energy in this country.

Donalds: Let me ask you this question as a follow-up. So if we don’t have natural gas, and obviously the democrats are against coal, where would we actually get the electricity to power all of these electric cars?

Sommers: Well congressman for most countries, and certainly for the United States, there would be likely be a fuel switch back from natural gas to coal.

Donalds: So real quick Mr. Sommers, I don’t mean to cut you off, because you make a great point, but I have 30 seconds. It is important for the American people to understand that if you follow the idiocy that’s in the bipartisan infrastructure agreement, it is going to make natural gas harder to procure. We’re actually not going to have lower emissions we’re going to have higher emissions because you’re going to have to switch back to coal fire plants.

And just for the record let’s also say the world will always demand energy. if you’re not getting it from us, where we actually do it more safely and more cleanly, you’ll get it from Russia or from China. And they don’t care what the climate activists have to say on twitter.

I yield the floor.

 

Leftist Energy Ignorance Abounds

Leftists are recognized by having three personality traits:  Know-it-alls, Drama Queens and Control Freaks.  The latest example is Liz Warren blaming rising fuel prices on energy producers rather than on her favored restrictive energy policies.  An article schooling the senator and her constituents is published at the Delaware Valley Journal PA Energy Pros Dismiss Liz Warren’s Complaints: ‘It’s Econ 101, Not Rocket Science’.  H/T Tyler Durden Excerpts in italics with my bolds.

Sen. Elizabeth Warren’s latest attempt to “turn up the heat” on the energy sector sparked a backlash from industry leaders who say the real problem comes from policies the Massachusetts’ Democrat has endorsed.

In recent letters to natural gas producers, Warren blasted what she called their “corporate greed” and demanded an explanation for the record exports of natural gas at the same time prices are rising in the U.S.

Warren wants the industry to respond to questions about “the extent to which these price increases are being driven by energy companies’ corporate greed and profiteering as they moved record amounts of U.S. gas out of the country,” she wrote.

She got a response, but not the one she demanded.

Leaders in the natural gas sector responded with a letter of their own, dismissing Warren’s comments as a diversion, one intended to distract consumers from the impact of the energy policies she’s championed.

“This a misguided and headline-grabbing ploy,” says David E. Callahan, president of the Marcellus Shale Coalition (MSC).

“If she knows anything about these highly complex energy markets, she must know what’s really going on here,” added Callahan, who co-authored a response letter alongside the leaders of the Gas & Oil Association of West Virginia (GO-WV), and Ohio Oil & Gas Association (OOGA). “It’s a commodity market, prices ebb and flow, and the market is responding to those signals.

Warren is an aggressive supporter of the Green New Deal, which would drastically restrict the production of oil and natural gas. In her state of Massachusetts, policies blocking the expansion of natural gas pipelines have resulted in Russian LNG tankers in Boston Harbor bringing fuel to the Bay State.

“She has her constituents to represent and her political affiliation to support,” said Charlie Burd, executive director of GO-WV. “But to be perfectly honest, I just think those comments almost show a complete lack of understanding on how energy is explored for, produced, and transported in this country.”

And those constituents are paying the price, according to Callahan.

“Number one, her region has very high energy costs, and her region is severely capacity-constrained when it comes to pipeline infrastructure,” Callahan said. “A Carnegie Mellon study from within the year pointed out that due to those pipeline constraints, customers in the New England region paid upwards of $1.8 billion in excess energy costs during just one month in 2014.”

“It’s really supply and demand 101,” added Burd. “It’s not rocket science.”

Republican National Committee spokesperson Allie Carroll said Warren’s latest attempt to blame energy companies for the results of Biden and Democrats’ war on energy is an insult to hardworking Pennsylvanians.

“From canceling the Keystone XL pipeline to stripping away our energy independence, Democrats’ reckless anti-energy policies are crippling our country, and turn after turn, Pennsylvania families are paying the price.”

Pennsylvania is the nation’s second-largest producer of natural gas, and attacks on the industry have an impact on the state’s economy.

“Hostility toward the fossil fuel industry ill-serves the American people, including Pennsylvanians who sit atop huge natural gas and coal deposits that provide plentiful and affordable energy to millions of people,” said Gordon Tomb, a senior fellow at Commonwealth Foundation. “The benefits of these resources can hardly be overstated: well-paying jobs and prosperity as well as a foundation for all kinds of business activity and energy security.”

Republican U.S. Senate candidate Dr. Mehmet Oz also pushed back on Warren’s approach.

“The ground under Pennsylvania and surrounding states has almost as much natural gas as Saudi Arabia that is readily accessible through fracking,” Oz said. “We should be using this to make our nation safer, create jobs, and less dependent on China. As the Senator for Pennsylvania, I will fight against any effort to destroy Pennsylvania’s energy leadership and the jobs it supports.”

Meanwhile, Europe is facing fuel scarcity as winter approaches and some of the nations are turning back to coal to meet immediate demands. American exports are vital, experts say.

“Our friends and allies in Europe and Asia, they need natural gas and for a whole host of reasons including over-reliant policies on intermittent renewables,” says Callahan. “The wind is not blowing as hard as they expected it to this year, they find themselves in need of natural gas, and so we’ve been shipping some gas overseas to supply those markets and help our friends.”

Frank Macchiarola, American Petroleum Institute (API) Senior Vice President of Policy, Economics and Regulatory Affairs, also has a message for U.S. policymakers.

“They play a critical role in spurring long-term investment in U.S. natural gas supplies as well as expanded pipeline capacity to deliver the energy America and the world needs while driving down emissions,” says Macchiarola. “Rising natural gas costs reflect an imbalance between supply and demand that is exacerbated in regions like the northeast due to added state-level policy restrictions on building much-needed gas infrastructure that has made the region more reliant on foreign imports.”

Callahan believes Warren should “support infrastructure expansion” to get product where it is needed, domestically and globally.

“We felt the need to set the record straight, that the rhetoric is dangerous,” said Callahan.

 

Don’t Forget Biden’s War on Energy Producers

Hugo Gurdon writes at Washington Examiner that  Biden Hopes You Forget His War on US Energy Producers.  Excerpts in italics with my bolds.

Joe Biden’s decision to order the Federal Trade Commission to investigate high gasoline prices and see if Big Oil is manipulating them prompts an ironic chuckle, for it is perfectly emblematic of this presidency. It is calculated to suggest concern about a widely felt problem without actually giving two hoots about it except insofar as it might do serious electoral damage to the party of the Left.

Since their drubbing in the Virginia governor’s race and elsewhere on Nov. 2, panicky Democrats have scrambled to create the illusion that they’re still in touch with the concerns of ordinary Americans. Biden touts his Build Back Better — or is it Bankrupt? — welfare plan as a “blue-collar blueprint” for prosperity. Translation: Hey, little people, I’ve got your back. The hapless veep nods toward government’s need to hear everyone’s voice. Translation: We don’t think you’re deplorables.

Uh-huh.

And now, because everyone notices and dislikes rising pump prices, Biden wants to persuade us saps to disregard Occam’s razor and believe corporate baddies are to blame, not his mismanagement and cheek-by-jowl adherence to the Left’s anti-energy agenda.

The reality is that Biden and his minions have waged war on domestic energy producers since his first day as president. Even now, he is doing his best to foist a comptroller of the currency onto the nation who explicitly calls for the ruin of oil companies, saying she wants them to “go bankrupt.”

Prices are soaring because demand outstrips supply, and several of the reasons can be laid at Biden’s door.

He’s weakened the supply chain, discouraged domestic production in part by raising costs, and failed to persuade Russia, the Saudis, and others to bail him out with more output. (He begged them to increase production — another national embarrassment — which would substitute dirty overseas output for the world’s most regulated and cleanest production here at home. So much for concern about greenhouse gas emissions).

The problem for Biden is that sleight of hand, extra PR, and frantic communication efforts don’t fix underlying problems, as the Washington Examiner’s Byron York recently noted . The administration can spin like a dreidel — goodness knows, it’s trying — but spin doesn’t change the facts.

Obscuring the real causes of rising prices won’t make prices come down or people feel them less. Saying inflation is a luxury concern and anyway is only temporary won’t make it so. Saying another $4 trillion of spending, much of it with borrowed money, will reduce price acceleration won’t achieve that end.

So, as you drive to join family members to celebrate Thanksgiving this week, you’ll know who to thank for the extra $20 you must pay to fill your gas tank each time. When you sit down to dinner, you’ll know who to thank for the fact that your favorite foodstuffs were out of stock.

Yet, for all that, there are real reasons, even in today’s politics, to be thankful. One is that voters have already seen through the Democrats’ spin and are signaling that change is a-coming. Another is that presidential terms don’t last longer than four years.

War on Energy Case Study:  Trainer Refinery south of Philadelphia

Gordon Tomb writes at Real Clear Energy East Coast’s Remaining Refineries’ Daunting Domestic Threat.  Excerpts in italics with my bolds.

The modernization of the Trainer Refinery south of Philadelphia is initially obscured by aged brick buildings and hulking equipment. With closer examination, however, emerge brightly painted pipes, scores of gleaming white tanks and towering construction cranes that hint of ongoing upgrades.

With a growing post-pandemic economy and strong energy prices, prospects are bright save for threats of a controversial carbon tax scheme by the governor and federal regulations. Federal rules have contributed to the closure of seven independent refineries on the East Coast since 2009, leaving only Trainer and three others remaining. And one of those — owned by PBF Energy in New Jersey — closed half its refining units and laid off 250 employees last summer.

Monroe Energy, which owns the Trainer Refinery, annually spends tens of millions of dollars on improvements to keep abreast of government regulations and customer needs. A few years ago, it invested nearly $200 million on installing equipment to make low-sulfur gasoline. Currently, the company is building high-efficiency electrical substations, as well as water-cooling units that enable millions of gallons of water to be reused, drastically reducing dependence on Delaware River water.

It employs approximately 500 people and hires at any one time up to 1,400 members of the Philadelphia Building Trades for maintenance projects that can last for months. Because of their work, Trainer produces daily more than 8 million gallons of fuel, mainly for transportation and heating.

Among the worries is Pennsylvania Gov. Tom Wolf’s proposal to institute a tax on electricity generators that use fossil fuels through the Regional Greenhouse Gas Initiative (RGGI). This taxation scheme is intended to replace fuels like coal and natural gas with more expensive wind and solar energy.

In comments to regulators, Monroe Energy noted its extensive use of electricity and cited data showing that the cost of power was 38 percent less outside existing RGGI states. The company has spent hundreds of millions on environmentally beneficial investments with plans for more. “However, Monroe added, “we fear that enacting a program like RGGI will increase costs to such an extent that we may be unable to move forward with some of these projects.”

RGGI also would put at risk tens of thousands of jobs in Pennsylvania’s electric-power and manufacturing industries by inducing operations to move away.

An even more immediate issue for Monroe is the federal government’s 16-year-old Renewable Fuel Standard (RFS), which requires refiners to add ethanol to transportation fuels or buy credits. The RFS has expanded since its inception creating a burden that threatens to put Monroe out of business if not addressed.

Ethanol is added to fuel as it is distributed to end users — or shortly before — to protect the equipment of refiners and transporters from the additive’s corrosive effect. Because Monroe does not sell to end users, it has virtually no ability to add ethanol and has to buy credits, whose price has risen from a few cents to nearly two dollars.

“The difference between credit prices of 2 cents and 2 dollars for us is hundreds of millions of dollars in compliance-obligation costs,” says Mr. McGlaughlin. Since buying Trainer in 2012, Monroe has spent more than $800 million on RFS compliance — multiples more than the refinery’s purchase price.

The negative consequences of both RFS and RGGI — including job losses and diminished fuel security — seem obvious to nearly everybody. Yet the employees at Trainer are still waiting for relief from Washington while also hoping to avoid the economic wreckage proposed by the governor and the absurdity of bureaucrats trying to improve the climate.

“We hope people will side with us and allow us to keep doing our jobs,” says Ron Pierce.

See also Energy Industry Fights Off Biden Hostile Takeover

 

 

 

 

 

King Coal is Dead. Long Live the King!

You’ve heard the pronouncements:  “Coal Is Dead and Oil Is Next.”  “Glasgow is the Death Knell for the Coal Industry” (Boris Johnson).  “Coal is declining sharply, as financiers and insurance companies abandon the industry” (Yale360) “Parties to accelerate efforts towards the phase-down of unabated coal power” (COP26 agreement). The unspoken reality is the opposite:  Demonizing coal has increased coal consumption.  MISH explains in his article The Big Green Push to Get Rid of Coal Had the Opposite Effect.  Excerpts in italics with my bolds.

An alleged big win to eliminate coal turned into a bust and then some.

Investors Pushing Mining Giants to Quit Coal is Backfiring

Bloomberg has an interesting story on how Environmentalists Pushing Mining Giants to Quit Coal has backfired.

It was supposed to be a big win for climate activists: another of the world’s most powerful mining companies had caved to investor demands that it stop digging up coal.

Instead, Anglo American Plc’s exit from coal has become a case study for unintended consequences, transforming mines that were scheduled for eventual closure into the engine room for a growth-hungry coal business.

And while it’s a particularly stark example, it’s not the only one. When rival BHP Group was struggling to sell an Australian colliery this year, the company surprised investors by applying to extend mining at the site by another two decades — an apparent attempt to sweeten its appeal to potential buyers.

Now, after years of lobbying blue-chip companies to stop mining the most-polluting fuel, there’s a growing unease among climate activists and some investors that the policy many of them championed could lead to more coal being produced for longer.

BHP may end up holding on to the Australian mine it was battling to sell, Bloomberg reported last week. Earlier this year, Glencore Plc sounded out a major climate investor group before announcing it would increase its ownership of a big Colombian coal mine, according to people familiar with the matter.

India now burns more coal than Europe and the U.S combined and miners are betting on rising demand over the next decade from countries such as Vietnam, Bangladesh and Indonesia, although pollution concerns and cheaper alternatives threaten to derail those plans.

Tough to Eliminate Coal

The push to abandon coal made selling the mines difficult. So companies chose to extend their life.

Developing countries that invested in coal-powered electrical plants that have many years of useful life want reparations to develop new plants.

New wind and solar plants are cheaper but unreliable. And they are not cheaper than plants already built.

Moreover, wind can die for days and solar has on average 12 hours a day of outages.

This places additional capital investment requirements for countries to build energy storage facilities.

China alone is currently building or planning coal power plants that are the equivalent of six times Germany’s entire coal burning capacity.

It’s tough to get rid of coal when you build more coal plants than you retire.