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Methane Leaks May Greatly Exceed Estimates, Report Says

Tue, 2015-08-04 08:56
A device that measures leaked methane may greatly underestimate it, says an inventor of the technology used in the device, possibly affecting climate change predictions.









Methane in Atmosphere May Greatly Exceed Estimates, Report Says

Tue, 2015-08-04 00:00
A device that measures leaked methane may greatly underestimate it, says an inventor of the technology used in the device, possibly affecting climate change predictions.









Sinopec takes steps to reduce expenses

Mon, 2015-08-03 21:44
Sinopec Group, the second-largest energy company in China, plans to cut costs by recalling 40 percent of its overseas staff in the wake of plunging oil prices.

Move to Fight Obama’s Climate Plan Started Early

Mon, 2015-08-03 21:05
A group of lawyers, lobbyists and political strategists started devising a strategy for dismantling President Obama’s climate change regulations before he had even put forth a draft proposal.









Environmental policy: The president calls for a greener America

Mon, 2015-08-03 19:19
BLASTING air conditioners, revving gas guzzlers and pumping oil, Americans have long attracted censure for their wasteful ways. After all, they produce a disproportionately large share—15 %—of global carbon dioxide emissions. But new rules from the federal Environmental Protection Agency (EPA), announced on August 3rd, signal a green shift in American policy. The Clean Power Plan introduces a raft of emission-reduction goals, tailored for each state, which the EPA believes will trigger a drop in carbon pollution from power stations by 870m tonnes by 2030, a 32% decline when measured against 2005 levels.An extension of the Clean Air Act of 1970, these are the first-ever national standards for curbing carbon pollution from power plants, America’s largest source of greenhouse gases. States will be able to decide for themselves exactly how and when they cut their emissions, but need to submit their plans by 2018 and to start acting on them by 2022. The plan reckons that new efficiency measures and greater access to gas and renewables will lower energy bills for American families.A little over a quarter of electricity will still come from coal. But a new incentives programme, not touted in previous drafts, encourages states to turn to wind and solar power instead of simply swapping coal for gas. Though gas generates half the pollution of coal, the plan aims to deter states ...

Dot Earth Blog: The Promise and Limits of Obama’s ‘Clean Power Plan’ for Limiting Global Warming

Mon, 2015-08-03 14:29
Assessing the strengths and limits of President Obama’s “Clean Power Plan” for blunting climate change.









Obama Policy Could Force Robust Climate Discussion From 2016 Candidates

Sun, 2015-08-02 21:09
Having to answer questions about President Obama’s aggressive actions on climate, those vying for president might have to debate what they will do to his climate legacy.









The Parched West: Dry Days Bring a Ferocious Start to the Fire Season

Sat, 2015-08-01 18:08
Officials are warning about the potential for more catastrophe in the months ahead, as drought, heat and climate change leave the landscape ever thirstier.









Industries: 2015 in focus: Clean technologies

Sat, 2015-08-01 12:09
UK Only Article:  standard article Fly Title:  Industries While policymakers struggle for a climate-change deal, mankind is handily applying clean technologies. Saving money on energy bills is a spur. Wind and solar plants are among the beneficiaries of “green bonds”, which will be worth $100bn in 2015 v $3bn in 2012. Individual governments are making gains. In 2015, South Korea will start trading carbon credits; California will extend its scheme. China, the biggest carbon emitter, aims to increase energy efficiency by 16% in 2011-15. Worldwide, electricity generation from renewable sources (excluding hydropower) will surge by 9%. Yet as energy use grows CO2 emissions from burning fuel will stubbornly edge up. Published:  20141110 Source:  The World In Enabled

Letting diesel off the hook

Fri, 2015-07-31 03:23

 

This blogpost by Julia Poliscanova, vehicles policy officer at Transport & Environment, was first published by EurActiv

The automotive industry needs to face up to the hazard to health posed by its diesel engines. That stark reality was brought home again to Europeans and, in particular, Londoners last week when Transport for London and the Greater London Authority revealed that an additional 5,900 early deaths annually in the EU’s largest city are attributable to long-term exposure to nitrogen dioxide (NO2), a toxic gas emitted in urban areas largely from diesel engines.

Concern about the health effects of NO2 is growing fast. The gas was known to irritate lungs and cause respiratory infections and asthma, including acute respiratory illnesses in children. It has also been linked to birth abnormalities. But this new research by King’s College London estimates for the first time the number of premature deaths caused. The study also shows an additional 3,500 deaths are caused by PM2.5, bringing the total number of people who die early because of air pollution annually in London to 9,400.

In London half of the nitrogen oxides (NOx, which in the air quickly become NO2) are emitted by diesel vehicles, and another 15% from diesel construction equipment. To deal with the problem, in 1990, European laws were introduced to reduce emissions from exhaust pipes. These standards have been progressively tightened, with the most recent Euro 6 standards for diesel cars commencing in 2014 having a limit of 80 milligrams of NOx per kilometre. So why are 5,900 Londoners still dying each year from NO2 pollution?

While effective on paper, the limits are simply not being met on the road, where cars emit on average seven times what they are supposed to (and up to 22 times in the case of an Audi A8). The reason is an obsolete laboratory test used to measure compliance meaning that there has been little improvement in actual NOx emissions since Euro 3 standards were introduced more than 15 years ago.

New rules to introduce a “real-world driving emissions” test were agreed on in 2007, but have still not been implemented, as carmakers have argued with officials and governments over how the test should be conducted. While in public the automobile industry claims that its new Euro 6 diesels are the cleanest ever, behind closed doors, it has been lobbying to weaken and delay the real-world testing procedure. In the last few months, it has finally been agreed that the test will use a portable emissions monitoring system to measure NOx coming out of the exhaust. But carmakers continue to claim they cannot fully meet the Euro 6 limit for new cars until 2021.

On the road, a modern petrol car produced eight to ten times less NOx than a new diesel car; but the technology to clean up diesel exhaust emissions is available and has been fitted to some vehicles. For example, in real-world tests, a Volkswagen Golf produced emissions below 60mg per km – the limit allowed for petrol cars. However, manufacturers are choosing to either use cheaper, less effective exhaust systems, or not set up the technology to work effectively. The latter option means drivers are not inconvenienced by having to refill the bottle of reagent used to extract NOx in exhaust. In the US, the rules are stricter, diesel cars are not allowed to emit more pollution than petrol ones, and the emissions limits are more tightly enforced. As a result, carmakers spend the extra £250 on an exhaust system that makes for a cleaner diesel automobile.

In London, the mayor plans to introduce an ultra-low emission zone to reduce air pollution. It is a good initiative, but Boris Johnson also intends to exempt all new Euro 6 diesel cars from the charge for driving in the zone. This is clearly wrong. Only Euro 6 diesels, which are clean on the road, should be excluded from the charge – not those with emissions above the allowed limit.

The King’s study has cast light on the devastating health effects caused by diesel exhaust, which the World Health Organisation identified as carcinogenic. After years of wrong information, it’s time to drive all dirty diesels off our roads. If the car industry is successful in delaying and weakening new rules for Euro 6 cars, there should be no place for diesel cars, taxis and vans on London’s roads or in other cities with air pollution problems. If this happens, the carmakers will have no one to blame but themselves.

 

Boeing forecasts rising demand for commercial airline pilots and technicians

Fri, 2015-07-31 03:21

Boeing projects a demand for nearly 1.2 million new pilots and technicians over the next 20 years, with the strongest growth expected in the Asia Pacific region. Boeing released its new Pilot and Technician Outlook on July 20th, showing continued strong demand for commercial airline pilots and maintenance technicians as the world’s airlines add 38,000 airplanes to the global fleet over the next 20 years.

In Europe the 20-year projected demand will be of 95,000 pilots and 113,000 technicians, while for the same period the world will require 558,000 new commercial airline pilots and 609,000 new commercial airline maintenance technicians.

Boeing’s 2015 Outlook projects continued increases in pilot demand, up more than 4 percent compared to the 2014 Outlook. For maintenance technicians, demand increased approximately 5 percent.

Overall global demand for these skilled resources will be driven by continued economic expansion, resulting in an average requirement for about 28,000 new pilots and more than 30,000 new technicians every year.

The Pilot and Technician Outlook is Boeing’s long-term forecast of the demand for pilots and technicians and its estimate of personnel needed to fly and maintain the tens of thousands of new commercial jetliners expected to be produced over the next 20 years. The forecast is published annually to factor in changing market forces affecting the industry.

Boeing’s 2015 Pilot and Technician Outlook

 

Renewable energy: Puffs of hope

Thu, 2015-07-30 11:08
UK Only Article:  standard article Issue:  The $1-a-week school Fly Title:  Renewable energy Rubric:  Wind and solar energy are increasingly competitive. But a lot has to change before they can make a real impact ON THE afternoon of July 25th renewable generators fulfilled about 78% of Germany’s domestic demand. Such a remarkable figure, combined with news of booming wind industries in America (see article) and China (article), might lead you to think that the renewables revolution is more or less victorious, with the world moving forward into the broad, sunlit—and windy—uplands of copious clean energy. Alas, this is not the case. In some places wind turbines and solar cells are now a cheaper way of generating electricity than fossil fuels are. And in a lot of others subsidies and regulatory requirements encourage their use regardless. But despite this progress, bought at great expense, renewables other than hydropower still provide less than 3% of the world’s energy. The impressive growth of wind power lags behind the rate that the International Energy Agency ...

Climate change: On the economics of the end of the world as we know it

Wed, 2015-07-29 10:25
In December talks in Paris involving more than 200 countries may result in a new agreement aimed at reducing carbon emissions. In the months leading up to the conference, The Economist will be publishing guest columns by experts on the economic issues involved. Here, Christoph Rheinberger (pictured right) and Nicolas Treich (at left) of the Toulouse School of Economics explain why quantifying the cost of global climate change is so difficult. CLIMATE change puts humanity at risk. The Pope’s celebrated encyclical letter on the subject released last month emphasised this risk “for our common home”, arguing that “doomsday predictions can no longer be met with irony or disdain”.  But apocalyptic predictions are often made by religious groups. So, how serious is this claim?Perhaps for the first time in history, there seems to be a broad consensus among scientists. They claim that our planet might face a frightening future if we cannot agree to take decisive actions here and now. Changes to how seawater circulates in the Atlantic, the melting of glaciers on Greenland and in the Antarctic, and rising sea levels might all result from inaction. Accounting for these catastrophic scenarios is a huge challenge for scientists and economists alike.So, what should we do in the face of existential risks? One, perhaps extreme, view is that the mere possibility of massive ...

Oil and fuel markets are not the same

Wed, 2015-07-29 04:24

The quarter’s end is a good time to confront what we had expected would happen on the oil and fuel markets with what actually happened. And this past quarter was certainly interesting in its diversity.

During the quarter and after it ended, a number of developments took place that had a profound impact on the expectations of economic growth in the US, Europe and China. These included dramatic negotiations between the Greek government and its creditors that produced a fragile, last-minute agreement (July 13th), a deal with Iran signed on July 14th by the US, Great Britain, France, Germany and Russia, following two years of arduous negotiations, which lifted the economic sanctions against Iran in return for the country limiting its nuclear programme, and uncertain growth prospects for the Chinese economy, which is in desperate need of deep structural reforms rather than another stimulus package. As these developments unfolded, they prompted changes in estimates of future oil and fuel demand and caused financial flows on the currency and commodity markets to fluctuate.

Fuels and crude oil are entirely different commodities

Fuels (such as naphtha, diesel oil, and heavy fuel oil) are commodities and, in common with crude oil, their prices are quoted (or determined) on global commodity markets. The fuel markets, however, have their own dynamics, independent of the forces that drive the oil market. Although fuels are derived from crude oil, they form separate markets, because they are completely different commodities used for very different things. Having a vast and highly liquid market, oil is a financial asset which is in great demand at times of prosperity. Fuel markets are also unlike one another, with gasoline markets behaving differently than diesel oil markets, because the two commodities have different applications. Diesel oil is the primary fuel for heavy transport, where its competitor and closest alternative is LNG, rather than gasoline. Gasoline, on the other hand, is used for light transport and as a fuel in petrochemical production, where its main rival is natural gas. Due to certain supply and demand factors characteristic of these two very distinct commodities, the prices oil and fuels often move in opposite directions.

Margins or price scissors

Refiners buy crude oil at market prices, crack it into fuel products, which they sell at prices also dictated by the market. The differential between the price of benchmark crude (Brent in our case) and petroleum products extracted from it (e.g. gasoline or diesel oil) is called crack spread. By weighting crack spreads by the product slate typical of a region or refinery, we arrive at a model refining margin. Just to clear things up, margin is an unfortunate word in this context as it implies a mark-up on costs, which is usually determined by the producer. This is how it used to work before crude oil and petroleum products began to be traded on commodity exchanges, when the prices of fuels had been set by oil companies. Today the term can be misleading. A refinery could not ask a price for its fuel products above the market price, because no one would buy them. It could not sell them cheaper, either, because revenues below achievable levels would be unacceptable to shareholders. In a nutshell, petroleum product prices, and hence model refining margins, are imposed on refiners by the two unconnected oil and fuel markets. To my mind, price scissors would be a more accurate term than margin. Margin (multiplied by the number of barrels of product sold) must cover total OPEX and generate profits, which are a long-term source of financing business growth.

Links between oil and fuel markets

Does the fact that fuel products are made from oil not create any links between the prices of the two? The links do exist, of course, and the global refining industry’s cost curve is their conceptual illustration. The idea is that the price of a homogeneous product, like gasoline or diesel oil, should be such as to ensure that the least efficient refinery which still finds demand for its products operates at a profit. The cost curve determines the crack spread/model margin which depends on the refining technology used. For a given oil price level, this margin determines the floor price of fuels below which the least efficient refineries on the market begin to run at a loss. When market forces cause the refining margin to shrink below the floor, the least efficient refineries yield under the market pressure and go out of business.

For instance, the end of 2013 and the beginning of 2014 saw an oil price hike reflecting a “fear premium”. Fuel prices did not follow an uptrend, though, due to weak demand in the Atlantic region. As a result, unprecedented declines in refining margins forced many refiners out of business. Orlen’s refining margin in the fourth quarter of 2014 was a mere USD 0.7/b, with the oil price at USD 109/b. Bankruptcies and forced shutdowns of European refineries led to reduced supply, which gradually lifted the prices of fuels and refining margins. Orlen’s refining margin grew to USD 1.3/b in the first quarter of 2014 and to USD 2.5/b in the quarter after that, with oil prices virtually unchanged (at USD 108/b and USD 109/b, respectively).

Where price scissors (margins) are wider than the floor refining margin, technological considerations lose relevance. This has been the case since July 2014, when oil prices began their march downward. The impulse of Libyan oil coming back on the market (http://ffbk.orlen.com/blog/what-s-up-with-the-oil-market ) had nothing to do with petroleum products, so there was no reason for fuel prices to drop. Just the opposite, European refiners, who suffered a heavy blow from margins having fallen below the profitability floor, needed to go back to normal, which they could do with slipping oil prices. With oil prices retreating by the month and with improved refining margins, refineries increased throughput, which in the case of European refineries, thus far facing the problem of excess capacity, was both easy and profitable (lower fixed costs as a percentage of total costs led to improved operating efficiency). After the opportunistic rise in production was placed on the market, the prices fell. And since the situation changed for the entire refining sector, the gradually increasing supply of fuels had to ultimately push market prices down. From June 2014 to January 2015, when Brent oil price hit a low (USD 48/b, down 57%), the market prices of naphtha and diesel oil slid by 55% and 48%, respectively. In the same period, refining margins grew. Orlen’s model (market) refining margin went up from USD 4.8/b in the third quarter of 2014 to USD 5.0/b in the following quarter.

What was happening with retail prices during that time? In June 2014, motorists in Poland paid an average of PLN 5.39 per litre of Eurosuper gasoline and PLN 5.24 per litre of diesel oil. In January 2015, the prices fell to PLN 4.41 and PLN 3.48, with the price of gasoline down 18% and the price of diesel down 17%. Why did they fall at a slower pace than the prices quoted on international markets? Trade on international markets is in “pure” petroleum products, containing no biocomponents or quality-improving additives (which are more expensive and mixed to blends in various proportions, depending on the type of final consumer), while retail prices are charged on final products. In the process of prices being transmitted from global markets, through wholesale, to retail, price fluctuations are evened out due to customer proximity (consumers dislike price hikes, while wholesalers and retailers dislike price drops, so movements in wholesale and retail prices are less sharp and less frequent). These factors are always at play. However, in the period we are looking at, it was the appreciating US dollar that had the greatest impact on retail prices in złotys. The dollar strengthened by 14% against the euro and by as much as 21% against the złoty.

What happened in the second quarter of 2015?

The price of Brent trended upwards from January to April, with the trend reversed in early May. There were several reasons behind the reversal. Besides the factors mentioned earlier, such as concerns over demand continuing its strong momentum from the first quarter of the year and Iran’s expected return to the global oil market, it also turned out that, seeking support from production costs, oil prices rebounded too fast from their January low, limiting the scale of the much-needed reduction in excess supply (http://ffbk.orlen.com/blog/are-crude-oil-prices-rebounding). The effect of price stimuli coming from the oil market (oil price quotes are in US dollars) was dampened by the appreciating dollar (http://ffbk.orlen.com/blog/cheap-oil-and-strong-dollar). In May the rising price of Brent crude slowed down to USD 64.3/b (up 34% on January). In June the price edged down to USD 62/b, with the downtrend continuing into July (with the average price at July 17th of USD 58/b).

By contrast, fuel prices have been trending upwards since January. The prices of naphtha and diesel oil quoted on international markets climbed 46% and 26%, respectively, from January to May 2015. This rise was buoyed up by the expected growth in demand, reinforced by the positive effects of lower oil and fuel prices, which feed through into the economy with a delay of two to three quarters. In June gasoline prices advanced by a further 2.7%, while diesel oil prices dropped 3.7%. It is interesting to note the asymmetry in the market prices of gasoline as compared with diesel oil, which was particularly pronounced in June. It followed from strong demand from the petrochemical industry following the end of the planned maintenance season, further bolstered by the approaching driving season in the US, which coincided with the end of the planned maintenance season in refineries and sizeable demand for gasoline blending components.

Refining margins kept widening with the global market prices of fuels growing faster than oil prices. Orlen’s model refining margin rose from USD 7.5/b in the first quarter of 2015 to the record 9.8% in the second quarter. The rising global market prices of fuels, which pushed margins higher, were also the main reason why retail prices started to march back up again from a low recorded in January 2015. In June drivers paid PLN 4.93 for a litre of Eurosuper gasoline (up 11.8% on January) and PLN 4.74 for a litre of diesel (up 8.2% on January). These price rises would have been less substantial if the US dollar had not strengthened by 1%.

What next?

Wide margins are a reason to rejoice for refiners, but they are not to stay for long and are likely to contract to some extent. According to our own oil and fuel market outlook (http://ffbk.orlen.com/blog/waiting-for-expectations-how-will-the-oil-supercycle-end), after excess oil supply has been absorbed by the market and relevant adjustments have been made on the supply side, oil prices will enter a lasting uptrend, rising faster and sooner than fuel prices, which will again depress margins. In the next six to eight quarters, we are likely to witness oil prices rising and falling in search of a balance and fuel demand adjusting to lower prices.

In the last 12 months, 10%, or PLN 0.5 per litre, has been shaved off the prices of Eurosuper gasoline and diesel oil. The prices would be 25% lower if it were not for the stronger dollar. Strong refining margins, combined with the fact that European refining capacities are yet to be fully utilised (working at full capacity, Orlen refineries are an exception here), encourage refiners to increase throughput, while more fuels supplied to the market are a sign of potential future price cuts. In the next three to six months, provided the Greek crisis is contained, the US dollar should stop gaining in value and correct lower. Polish motorists hoping for lower pump prices may well see their expectations materialise.

 

 

Later Deadline Expected in Obama’s Climate Plan

Tue, 2015-07-28 21:52
The final version of President Obama’s climate change plan is expected to be released next week, with an extension of an earlier timeline, giving states and utilities longer to comply.









Climate, trafficking and the pope: The ecology of planetary woes

Sat, 2015-07-25 08:13
IN ANY list of the woes afflicting humanity, you'd expect to find both climate change and also forced migration, including its most extreme form, which is trafficking in people who have become virtually enslaved, whether as sex workers or bonded labourers. But many other scourges would feature on that dismal catalogue, including war, state failure, epidemics, organised crime, extreme inequality, over-population and so on. And if you tried to draw a diagram showing how these various horrors are interlinked, it would soon become a mass of squiggles and arrows pointing both ways.But for better or worse, a hallmark of the Vatican's global view, under Pope Francis, has been the assertion of a particular connection between climatic disruption and trafficking. This week, for example, the Vatican convened its second high-level gathering this year where both those issues were at the top of the agenda. About 60 mayors from important cities around the world, from New York to Stockholm to Bogotá, converged on the holy see; the first day was a grand, set-piece affair with the pope presiding, and the second, a smaller and more focused symposium co-organised by the United Nations, where an initiative for "sustainable cities" was launched.This in turn is part of the warm-up for the adoption of Sustainable Development Goals, to be pursued over the next 15 years, by world leaders who ...<div class="og_rss_groups"></div>

Offshore Wind Farm Raises Hopes of U.S. Clean Energy Backers

Thu, 2015-07-23 20:17
Supporters hope that the modest five-turbine project, the nation’s first commercial scale offshore wind farm, will propel larger efforts at clean energy.









Current Market Outlook: The European aviation market is expected to grow

Thu, 2015-07-23 04:14

Boeing projects a demand for 38,050 new airplanes over the next 20 years, an increase of 3.5 percent from last year’s forecast. Boeing released its annual Current Market Outlook (CMO) on June 11th, estimating the total value of those new airplanes at $5.6 trillion.

Also the European aviation market is expected to grow over the next 20 years, with airlines forecast to acquire more than 7,300 new airplanes valued at over $1 trillion. Single-aisle airplanes will comprise the majority of deliveries, representing a 79 percent share of total deliveries. While European aviation growth is slower than aviation growth in emerging economies, the region’s large installed base of more than 4,400 airplanes supports substantial demand for replacement airplanes. Replacement demand will account for 57 percent of Europe’s total new airplane market.

Current Market Outlook is The Boeing Company’s long-term forecast of passenger and cargo traffic and its estimate of the number of airplanes needed to support the forecast. The forecast is published annually to factor in changing market forces affecting the industry.

Boeing: Current Market Outlook 2015-2034

China's climate goals to boost opportunities in clean energy: UN official

Wed, 2015-07-22 23:15
China's climate change targets for the next couple of decades will provide investment opportunities worth $2.5 trillion in the non-fossil energy sector.

HP to Power Texas Data Centers With Wind Energy

Tue, 2015-07-21 07:45
A combination of falling prices and greater pressure for companies to show action to fight climate change has led corporations to buy renewable energy.









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