Category: Uncategorized

Loony-toon negative wholesale electricity prices appear in AEMO Queensland data

Loony-toon negative wholesale electricity prices appear in AEMO Queensland data

via Errors in IPCC climate science
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First time I have noticed negative price from Qld – minus $1,000 MW 3.20am 13 July 2017 – tick “QLD” on left and “5 Min” on right. Who knows why? Just more Govt madness. Not uncommon lately to get negative price periods in Tasmanian data. NEM Dispatch Overview always worth checking – see how Qld is the “anchorman” of our grid. NemWatch gives a generation snapshot.

via Errors in IPCC climate science http://ift.tt/1F9oSq3

July 12, 2017 at 09:18PM

Two key House members call to investigate Russian ‘collusion’ with anti-fracking green groups

Two key House members call to investigate Russian ‘collusion’ with anti-fracking green groups

via Watts Up With That?
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By Thomas Lifson, from American Thinker

Charges of “Russian collusion” may have opened Pandora’s Box for the environmentalist wing of the Democratic Party and the American left.  Republican congressman Lamar Smith, chairman of the House Science, Space, and Technology Committee, and energy subcommittee chairman Rep. Randy Weber have sent a letter to Treasury Secretary Stephen Mnuchin, calling:

… on the Trump administration to investigate whether Russia is trying to undermine the U.S. energy industry by funding environmental activism as part of a “propaganda war against fossil fuels.”

They lay out the logic of the case:

Russia’s goal is to “suppress the widespread adoption of fracking in Europe and the U.S.,”

according to a letter to Treasury Secretary Steven Mnuchin from House Science, Space and Technology Committee chairman Lamar Smith and energy subcommittee chairman Randy Weber.

“If you connect the dots, it is clear that Russia is funding U.S. environmental groups in an effort to suppress our domestic oil and gas industry, specifically hydraulic fracking,” said Mr. Smith, Texas Republican, in a Friday statement.

“They have established an elaborate scheme that funnels money through shell companies in Bermuda,” he said. “This scheme may violate federal law and certainly distorts the U.S. energy market. The American people deserve to know the truth and I am confident Secretary Mnuchin will investigate the allegations.”

The Republicans said the panel is already conducting oversight into “what appears to be a concerted effort by foreign entities to funnel millions of dollars through various non-profit entities to influence the U.S. energy market.”

Certainly Russia has a motive. The widespread adoption of hydraulic fracturing and horizontal drilling has fueled an energy boom in the United States that threatens Russian exports of oil and natural gas, which accounted for 68 percent of the country’s export revenue in 2013.

The letter pointed to reports that Russian entities may have funneled millions through a Bermuda shell company, Klein Ltd., to the Sea Change Foundation in San Francisco, which has in turn provided grants on anti-fracking groups like the Sierra Club and the League of Conservation Voters Education Fund.

Proving such a link is another matter. The letter acknowledged that the “Russian government and complicit parties have executed a political agenda with little or no paper trail.”

Full story here:

Letter to Secretary of the Treasure here

HT/jmarshs

via Watts Up With That? http://ift.tt/1Viafi3

July 12, 2017 at 08:00PM

Climate of Confusion

Climate of Confusion

via The Carbon Sense Coalition
http://carbon-sense.com

By Keith Orchison

By coincidence I have come across the new “Climate of the Nation” report from the strongly green-leaning Climate Institute on the same day I have been reading the latest Essential Report polling and just after looking at a pre-dawn snapshot of east coast market capacity on a pretty standard winter’s day.

Taking the latter first, at 6.30am today 97.6 per cent of the New South Wales load was being met by black coal generation as the State’s population was getting up and its substantial factory sector was gearing up. If you take NSW, Victoria and Queensland together – they represent 90 per cent of the east coast market – at this point 88.9 per cent of the three-State load was being met by brown and black coal generation with wind power providing 0.4 per cent and solar (naturally as the sun wasn’t yet up) 0.04 per cent.

(Eight hours later, I see, at 2.30pm, black coal generation is still bearing 89.7 per cent of NSW load and coal is accounting for almost 82 per cent of required capacity in the three largest States of the market – with hydro power providing 7.5 per cent and wind/solar 4.3 per cent.)

The question that comes to my mind when I look at data like this is what would be required to replace even half this coal power (let alone all of it) with mostly wind power and solar PVs? What would the total system cost be in a set-up where supply is assured and how would this translate in to retail bills?

Despite all the stuff being thrown around in the public arena at present, this is still a substantially unanswered question. Lots of people have opinions, assertions abound but we still lack an independent, widely-accepted-as-credible modeling effort communicated in language the Averages can understand – and this despite the South Australia nuclear royal commission report telling us 13 months ago that “identifying whether a particular generation portfolio will deliver electricity at the lowest possible cost requires an analysis of the future cost of the system as a whole.”

Indeed, one can read the Finkel report just released and see in it validation of the earlier royal commission declaration that “for those planning a future electricity system (and the market in which it will operate), the relevant issue is total systems cost, accounting for the cost of generation, connection, inter- and intra-regional expansion of transmission and distribution networks, and grid support costs.”

But, without this being available in straightforward terms, how can the community at large and the body politic in particular (especially the CoAG Energy Council and the Turnbull cabinet’s energy committee) come to a landing on a policy that will take us at least to 2030?

Modelling done for the Finkel task force, which inevitably is being challenged from left and right, tells us that its preferred approach (via a clean energy target, a topic already of furious political debate) would see a 2030 NEM generation mix that was 53 per cent coal-fired, five per cent reliant on gas, eight per cent on hydro power and 33 per cent on variable renewable generation (the other one per cent green power would be biomass).

Would this outcome satisfy the community as represented in the latest Essential Report poll (and which, of course, includes West Australian respondents and not just those living on the east coast, still less just those in the above-mentioned trio of States that are home to most consumers, household and residential and where most of the impact will fall)?

The Essential poll, taken 11 days after release of the Finkel report, sees 64 per cent of respondents supporting a preference for “more investment in renewable sources” (meaning what exactly?) – and, I can’t resist pointing out, 18 per cent saying “don’t know,” the same number “preferring coal-fired power.”

This poll also returns a preference, responding to the notion of a CET, by 41 per cent of respondents for a measure in which end-user price rises are limited to five per cent, falling to 21 per cent if the rise is 10 per cent and just eight per cent if it is 20 per cent.

Bear in mind in this context that the Finkel report doesn’t suggest prices will drop under what it recommends but that they will be lower than they are likely to be if we continuing muddling along.

Now the “Climate of the Nation” report runs to 48 pages and you really need to read it all to get a picture of what it conveys – you can find it at http://ift.tt/SD8AW1.

Of course, the interesting (to me) information is well-padded with pejorative promotion of acceptance of climate change but this is only to be expected – green advocates are permanently in a fret that, as is acknowledged in the report, the climate issue is not top of mind for a community plagued by “hip pocket” problems. This bent shouldn’t detract from the value of learning what views about today’s policy game flow from such polling and from focus groups because this is the sort of feedback through their own party research that is influencing our political leaders.

What the Climate Institute asserts is that 96 per cent of Australians “want our primary source of energy” – they are talking about electric power and that’s just 35 per cent of energy used in this country – to come from renewables. What this actually means, we are then told, is that 58 per cent of respondents want their power based on renewables supported by storage and 38 per cent want renewables “supported by fossil fuels.”

The soundbite the institute wants to sell us is that “the public almost universally endorses transitioning our energy system to renewables.” Why do peas and thimbles spring to my mind when I see stuff presented in this way?

The institute goes on to explain in the report text: concern that (an energy system dominated by renewables) “should be properly managed to minimize disruption” lies behind the 38 per cent believing fossil fuels should have a role “in the meantime.”

Which makes me wonder how the respondents and the broad community would react to explanations in plain language from a credible source about the realistic power supply options the east coast has for the foreseeable period from now to around 2030?

By the way, I am interested to see buried in this report that nine per cent of those canvassed think nuclear energy should be Australia’s main source of power. The boosters of nukes among my friends and acquaintances believe this number is higher and would be much more if the legal anathema of the technology was removed and it could be discussed on its merits.

Be that as it may, what remains lacking as the Turnbull government, then CoAG leaders and, sooner or later, the federal parliament grapple with next steps in energy and climate policy – I see the Grattan Institute’s Tony Wood reminding us in an op-ed today that secure and reliable power at affordable prices can’t happen without a credible, national climate change approach – is a community understanding of realistic electricity supply options presented in a form they can actually comprehend.

Until this happens, community perceptions will remain shrouded in a fog of confusion. There is no prospect I can see, under present circumstances, of it lifting any time soon.

Source: http://ift.tt/2vefxQY

via The Carbon Sense Coalition http://carbon-sense.com

July 12, 2017 at 05:57PM

Forget Paris – Billion-Barrel Mexico Find Could Spur Oil Majors to Rush In

Forget Paris – Billion-Barrel Mexico Find Could Spur Oil Majors to Rush In

via NOT A LOT OF PEOPLE KNOW THAT
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By Paul Homewood

 

News from Bloomberg:

 

A billion-barrel crude discovery in Mexico could be just the lure the country needs to boost investment from oil majors as it lacks the wherewithal to reverse years of sagging output.

At a time when global oil prices were cratering, and drillers were nervously cutting exploration funds, Mexico’s earliest auctions drew spotty interest. Since then, however, European drillers led by Italy’s Eni SpA have increasingly become involved. The find in Mexico’s shallow waters could drive added interest — and higher bids — in future auctions as the government seeks to boost production that’s fallen by a third in the past decade.

On Wednesday, Premier Oil Plc, Sierra Oil & Gas and Talos Energy LLC announced the first Mexican discovery by explorers other than state-owned Pemex in 80 years, a reservoir with an estimated 1.4 billion to 2 billion barrels. With new auctions set for the end of the year, the find promises to rev up interest in Mexico’s energy riches moving forward, said Pablo Medina, an analyst at the consulting firm Wood Mackenzie Ltd.

“Future bids will likely be more aggressive,” Medina said in a telephone interview. “This obviously increases the attention people will pay. The area contiguous to this block is going to go up in value, no question.”

About a fifth of Mexico’s public budget relies on oil revenue, with production averaging 2.15 million barrels a day last year, the lowest level in more than three decades. That drop in output, combined with lower oil prices, forced the government to cut spending, causing growth in the $1.1 trillion economy to decelerate to the slowest pace since 2013.

The Mexican government will receive a 68.99 percent profit share from every barrel produced in the block, and as much as 80 percent when considering taxes and fees over the life of the project, Sierra said in a statement. “It is of great importance for Mexico,” Mexico Oil Commissioner Juan Carlos Zepeda wrote in an emailed statement.

President Enrique Pena Nieto embarked on an ambitious reform of the energy sector in 2013, aiming to revive flagging output at a time when oil prices were in the triple digits. The reforms, which didn’t kick in until after oil prices had fallen, involved amending the constitution to allow foreign investors into the country’s oil industry for the first time since it was nationalized in 1938.

The first auctions came in 2015, with outside investors invited to bid on fields that were previously only accessible to Pemex. Eni SpA was one of the first oil majors to win a bid in Mexico and has stood out in the race by winning several contracts.

Since then, some of the world’s largest oil companies, including Exxon Mobil Corp., Chevron Corp., and BP Plc, signed contracts in the country. European majors Repsol SA, Royal Dutch Shell Plc, and Total SA also won leases earlier this year in shallow-water fields.

The find has “de-risked a little bit some of these shallow-water opportunities” in Mexico as it confirms that other explorers have the potential to find assets that Pemex either overlooked or couldn’t develop, said Jeremy Martin, director of the energy program at the Institute of the Americas, speaking over the phone from La Jolla, California.

“There are a host of companies on the U.S. side of the Gulf that may now consider participating in upcoming auctions because this is a way of showing them that the process works, and can lead to a discovery,” Martin said.

The next auctions, in deep water and for shale blocks, will likely come at the end of this year or the start of 2018.

The new find will “certainly create more buzz” around the next auctions, said John Padilla, Managing Director of energy consulting firm IPD Latin America in an emailed response to questions.

The shallow field holding the billion-dollar find is located 37 miles (60 kilometers) offshore from the Mexican port of Dos Bocas in 546 feet (166 meters) of water and contains light oil, Premier Oil said in a statement. The discovery comes just two years after the three companies jointly won the exploration license.

In an interview on Wednesday, Premier CEO Tony Durrant listed the potential of the site at 1 billion to 1.5 billion barrels. Sierra said the primary target reservoir contains 1.4 billion to 2 billion barrels, and could extend into a neighboring block.

Mexico “took a really difficult decision for them politically after 40 years of 100 percent Pemex-ownership,” Durrant said. The opening up of the country’s industry “caught them at absolutely the worst time because of the collapse in oil prices. But to be fair to them, they persevered and they have now got very strong industry interest.”

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Did not Mark Carney tell us that oil is a stranded asset?

Meanwhile Mexico shows that its commitments to the Paris Agreement are worthless. As the article points out, the Mexican govt will get 68.99% of the profit from all new oil development.

One final point. This analysis comes from Bloomberg, but we all recall reports from Bloomberg’s New Energy Finance division, which regularly shills for renewable energy interests. Clearly they are not on the same page.

via NOT A LOT OF PEOPLE KNOW THAT http://ift.tt/16C5B6P

July 12, 2017 at 05:21PM