Month: September 2017

Daily News 25 Sep 2017

One Relatively Unknown Federal Agency Will Play A Big Role In Trump’s ‘Energy Dominance’ Agenda

Energy

2017-09-23T043635Z_1_LYNXNPED8M04U_RTROPTP_4_ALABAMA-ELECTION-TRUMP-e1506184352267

U.S. President Donald Trump speaks at a campaign rally for Senator Luther Strange in Huntsville, Alabama, U.S. September 22, 2017. REUTERS/Aaron P. Bernstein

Michael Bastasch

1:00 PM 09/23/2017

Most people probably haven’t heard of the Federal Energy Regulatory Commission (FERC), but this agency will be a major driver of energy infrastructure projects.

Those projects will aid President Donald Trump’s goal of boosting U.S. infrastructure and gaining “energy dominance.”

FERC will play a significant role in approving natural gas pipelines, liquefied natural gas export terminals, electric grid upgrades and other energy projects. The agency was unable to approve projects for months, building a $50 billion backlog of crucial energy projects.

Since FERC gained enough commissioners to reach a quorum in July, the agency has issued more than 65 notational orders and even overruled New York state officials to approve a natural gas pipeline.

“The United States will continue to use more natural gas, which means we need more pipelines and other infrastructure,” Steve Everley, spokesman for Texans for Natural Gas, told The Daily Caller News Foundation.

Shortly after Trump took office, FERC went from three to two commissioners, which isn’t enough for a quorum to vote on pending energy projects. The Senate approved Trump appointees Rob Powelson and Neil Chatterjee in July.

By the time Trump’s nominees assumed their roles, FERC had held up the approval of at least six pipeline projects valued at $12 billion. More natural gas pipeline projects are also coming up before FERC.

One of Chatterjee’s first major moves as FERC chairman was to overrule New York regulators’ denial of a pipeline permit to the Millennium Pipeline Company on environmental grounds. FERC overturned New York’s decision, saying it had taken too long to issue it.

FERC also approved the NEXUS pipeline, which will bring natural gas from Appalachia to Michigan and Canada.

“Natural gas is also one of the fastest growing fuels worldwide, and the United States will be a major player in the global liquefied natural gas market,” Everley said. “FERC has an important role to play in all of that, making sure projects are properly reviewed and permitted.”

Developers of the $4.5 billion Atlantic Coast pipeline and the $3.5 billion Mountain Valley pipeline want to complete the projects before new environmental regulations take effect. Both those pipelines need FERC approval before they can move forward.

The one obstacle that could impede pipeline approvals: environmental activists.

Environmental groups have opposed many new natural gas pipeline projects around the country, taking cues from the campaign to keep the Keystone XL oil pipeline from being built during the Obama administration.

“They’ve even bragged about how they can harass FERC members and their families at their own homes, which is pretty disgusting,” Everley said. “But it’s an indication of how important FERC is.”

The so-called “Keep It In the Ground” movement sees pipelines as chokepoints it can strangle to keep natural gas and oil from getting to market.

Environmentalists won a small victory in August when a federal court ruled FERC did not properly consider the impacts that approving the Southeast Market pipeline project would have on global warming.

“This decision shows no matter what Donald Trump thinks about climate change, FERC cannot ignore the law,” Jeff Tittel, head of the Sierra Club’s New Jersey branch, told The Washington Examiner.

The Sierra Club sued to stop the pipeline from going forward after it received FERC approval in 2016. Environmentalists are likely to sue to stop future pipeline projects from going through.

“‘Keep It In the Ground’ is trying to make the Commission a focal point of its advocacy efforts because activists think they can score victories against American energy by blocking or delaying pipelines,” Everley said.

Texans for Natural Gas will soon release a report detailing the positive economic impacts that pipelines have on the economy.

The report claims natural gas pipelines support 160,000 jobs in Texas and “provide billions of dollars in state and local tax revenue to help fund public services that we all use,” reads a copy of the report provided to TheDCNF.

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September 25, 2017 at 03:06PM

Daily News 25 Sep 2017

AUSSIE CLIMATE SCEPTICS GET SERIOUS ABOUT CHALLENGING ALARMISM

This piece shows the large "advertisement" in a major Australian newspaper paid for by climate sceptics. I wonder if or when we shall see anything similar in the British press?

via climate science

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September 25, 2017 at 02:13PM

Daily News 25 Sep 2017

Forget The Spin: Offshore Wind Costs Are Not Falling

By Paul Homewood

A new analysis by Gordon Hughes and John Constable casts doubts on the latest apparent drop in offshore wind costs :

Spin put on the government’s recently announced strike prices to three large offshore wind farms has misled many into thinking that the costs of offshore wind are falling.

However, no actual capital cost figures have been provided for the three windfarms (Hornsea, Moray East, or Triton Knoll), and the strike prices are a poor guide to underlying costs.

In fact, empirical CAPEX data collated for the first time in a new statistical study published today by GWPF shows that the capital costs for offshore wind remain high. Moreover, as the wind industry moves into deeper water, costs are actually rising offsetting any reduction in costs due to technical progress.

The study’s authors conclude that wind farm companies are probably willing to offer economically non-viable CfD prices because they regard the CfD contract as low cost, no penalty “option” for future development. At the same time, they are securing a market position and inhibiting competition, with actual wind farm construction conditional on obtaining more generous terms in the future.

Should the market price rise above the contracted price, because of rising fossil fuel costs or a further rise in the UK’s carbon tax, companies would simply cancel the CfD contract and go with the higher price. However, if there is no significant probability of that elevated market price, these sites are very unlikely to be built.

Professor Gordon Hughes, the paper’s lead author, said:

“Contrary to gullible media exaggerations, capital costs for offshore wind have not fallen, and the sites are not economic at the recently announced prices. The developers are just gambling on the small chance of very high fossil fuel prices in the near future, or more likely on a high carbon price.”

Professor Hughes added:

“The low CfD prices offered in the auction are just a normal albeit very risky business speculation. They certainly are not the dawn of a new age for offshore wind.”

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