Welcome to the ODAC Newsletter, a weekly roundup from the Oil Depletion Analysis Centre, the UK registered charity dedicated to raising awareness of peak oil.
Hopes rose this week that BP may be in a position to attempt to ‘kill’ the Macondo oil leak a couple of weeks ahead of its previously anticipated date. The first of two relief wells is now close to the target, and a top BP executive is reported to have told Wall Street Journal that, should weather conditions remain favourable, the well could be shut off by 27th July. With this optimistic, but by no means assured backdrop, Tony Hayward spent this week visiting Middle Eastern investors in an attempt to shore up BP against hostile takeover bids. The US administration in the meantime made an unsuccessful attempt on Thursday to challenge the ruling to lift its temporary ban on drilling. It is now likely to issue a revised moratorium.
Should BP successfully kill the well in the next weeks, it is highly likely that the next half of the year could see more legal challenges to recent rulings made in the wake of the disaster by the Obama administration. BPs financial liability will be huge — it is already running at £2bn — however attempts to restrict the company’s freedom to divest its assets are likely to be challenged as soon as the company feels it is in a stronger position. President Obama will also continue to face political battles with regard to drilling restrictions and liability caps, so will need to seize the moment quickly to have any chance of capturing public sentiment to “seriously tackle our addiction to fossil fuels”.
As yet, there has been little regulatory impact in other off-shore oil regions as a result of the disaster. European Energy Commissioner Guenther Oettinger this week however suggested a ban on new off-shore drilling until the causes of the disaster are known. While no ban is imminent, this does demonstrate that there is likely to be a tightening of regulation around deepwater drilling which extends outside of the US, with a knock on effect of higher costs and project delays.
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Oil
BP aims to fix leaking Gulf of Mexico oil well by 27 July
BP is working to fix the leaking oil well in the Gulf of Mexico by 27 July, weeks before its publicly stated deadline.
The company is due to report second-quarter results that day. It hopes to provide more information on its liabilities from the oil spill to shareholders, as well as its initial findings on the causes of the disaster…
US appeals court refuses stay on deepwater drilling
A U.S. appeals court on Thursday rejected the Obama administration’s request to put on hold a ruling that lifted a temporary moratorium on deepwater drilling in the wake of the BP Plc (BP.L)(BP.N) oil spill in the Gulf of Mexico.
The ruling is a setback for the White House which had sought to suspend deepwater drilling of new wells for six months while it investigated the cause of the April 20 explosion aboard the Transocean Ltd. RIGN.S rig and adopt new stricter safety regulations…
US seeks advance notice of any BP sales
The US Department of Justice has asked BP for advance notice of any planned asset sale or deal involving significant cash transfers as the British oil company seeks to raise funds to shore up its balance sheet…
Europe Weighs Deep-Water Drilling Ban
EU energy commissioner Gunther Oettinger has indicated that member states should stop giving out fresh permits for deep-water oil drilling in the light of the BP (BP) oil catastrophe.
“I am considering discussing this with member states, so that when new permits are issued, especially in extreme cases, they will consider deferring this,” he told MEPs at a debate in Strasbourg on Wednesday (8 July)…
Media, boaters could face criminal penalties by entering oil cleanup ‘safety zone’
The Coast Guard has put new restrictions in place across the Gulf Coast that prevent the public – including news photographers and reporters covering the BP oil spill – from coming within 65 feet of any response vessels or booms on the water or on beaches.
According to a news release from the Unified Command, violation of the “safety zone” rules can result in a civil penalty of up to $40,000, and could be classified as a Class D felony. Because booms are often placed more than 40 feet on the outside of islands or marsh grasses, the 65-foot rule could make it difficult to photograph and document the impacts of oil on land and wildlife, media representatives said…
BP oil spill costs pass $3 billion mark
The oil spill in the Gulf of Mexico has so far cost BP a total of $3.12bn (£2bn), the company has said.
The total includes the cost of containing the spill and cleaning up the oil, and the cost of drilling relief wells…
Saudi King Seeks Wise Oil Use, Not Output Ban, Banque Saudi Analyst Says
King Abdullah of Saudi Arabia, holder of the world’s largest crude-oil reserves, encouraged using the fuel wisely to protect the interests of future generations, rather than a ban on exploration, an analyst said.
The monarch told Saudi scholars studying in Washington that he had ordered all oil exploration to cease “in order to keep the earth’s wealth for our sons and grandsons,” state-owned Saudi News Agency reported yesterday…
Fuel hike sends Indians to the streets
Usri Das Mahapatra’s kitchen budget has soared the past year. Now, she fears worse.
India is moving to roll back fuel subsidies. The government recently lifted state controls on gasoline and is determined to market-link diesel prices as well…
BP brushes off calls to keep away from ecologically risky areas
BP plans to proceed with drilling operations in environmentally sensitive areas such as Canada’s tar sands and further deep water exploration despite pressure to stop from green groups and some investors.
The moves were confirmed following demands from the Coop — one of its shareholders — to concentrate in future on lower risk areas following the calamities in the Gulf of Mexico…
Feds maintain fossil fuel incentives despite phase-out pledge
The Harper government has protected several incentive and subsidy programs for fossil fuels, despite making a G20 pledge to phase them out, according to a leaked document from last month’s conference in Toronto.
The annex, which circulated at the summit, lists and summarizes several measures by other countries to eliminate taxpayer support for the industries that are blamed for producing emissions that trap heat in the atmosphere and contribute to global warming. But Canada’s submission only included previously announced measures, including a decision made in 1987…
Electricity
Con-Ed Nerve Center Fights to Keep Lights On
From the 19th floor of Consolidated Edison’s headquarters in Manhattan, generators were dispatched to supplement a burning substation. Emergency alerts were relayed to major customers and companies. The go-ahead was given to cancel Little League night games on Staten Island to conserve the wattage used by field lights.
Con Edison, with an ability that might strike some as Big Brother-like, even exercised its ability to periodically shut off central air-conditioning units in some 20,000 homes and businesses to ease the burden on its system…
Low-carbon power spur for Liverpool
The UK’s largest smart electricity grid is to be created in Liverpool as the city bids to lead the country’s transition to a low-carbon economy…
Renewables
Germany targets switch to 100% renewables for its electricity by 2050
Germany could derive all of its electricity from renewable energy sources by 2050 and become the world’s first major industrial nation to kick the fossil-fuel habit, the country’s Federal Environment Agency said today.
The country already gets 16% of its electricity from wind, solar and other renewable sources — three times’ higher than the level it had achieved 15 years ago…
No link between wind turbines and health: report
There is no evidence that wind turbines have a direct adverse effect on human health, according to an independent study by Australia’s National Health & Medical Research Council.
There is currently no published scientific evidence to positively link wind turbines with adverse health effects, concludes the Council in a public statement that examines evidence of potential health impacts on people living in close proximity to wind turbines…
Obama hands $2bn to solar energy firms
President Barack Obama, under pressure to stimulate job growth, said yesterday that two solar energy companies will get nearly $2bn (£1.35bn) in US loan guarantees to create as many as 5,000 green jobs.
In his weekly radio and web address, Obama coupled his announcement with an acknowledgement that efforts to recover from the recession remain slow. “It’s going to take months, even years, to dig our way out and it’s going to require an all-hands-on-deck effort,” he said…
UK
Offshore wind grants survive Osborne’s axe
The coalition may have been at pains to let everyone know that the government’s coffers are empty and as such the Labour era of industrial grants has come to an end. But it appears some sections of the low carbon economy can still expect to benefit from government largesse, just so long as they promise to deliver rapid and sizable economic benefits in return.
Offshore wind appears to be one such sector and the industry is celebrating today after it emerged that Energy and Climate Change Secretary Chris Huhne will announce grants worth £10m to eight firms focused on the delivery of offshore wind technologies…
UK overturns ban on councils selling green power to the grid
A ban on councils in the UK selling green electricity into the national grid is to be overturned, UK Climate Change Secretary Chris Huhne announces.
The UK’s Local Government (Miscellaneous Provisions) Act 1976 as amended by the Energy Act 1989 gives local authorities power to sell heat, but includes a provision preventing local authorities from selling electricity which is produced otherwise than in association with heat…
Jump in North Sea drilling signals positive sentiment
A substantial increase in North Sea drilling operations on the back of recent discoveries is raising hopes that confidence is returning to the sector.
New figures show activity rose 133pc between the first and second quarters this year. Drilling work starting on 28 exploration and appraisal wells in the second three months of the year compared with 12, a six-year low, in the first…
Climate
New report says energy efficiency measures have greatest impact
When it comes to reducing the use of fossil fuels, energy efficiency tends to take a back seat to technologies like wind and solar.
The idea behind energy efficiency is to take measures to reduce the overall amount of power we use and thereby reduce the need to develop new sources of energy. So for instance, a large residential building could put weather stripping on all the windows, preventing heat loss which will drastically lower the amount of energy used by the building. The cost of weather stripping is nothing compared to the amount of money saved in electrical and/or gas usage…
Review of questioned IPCC report says conclusions ‘well-founded’
The first major independent review of criticisms of the global assessment of climate change led by the United Nations declared today that it found “no errors that would undermine the main conclusions” of the panel of international scientists that climate change will have serious consequences around the world.
However the Dutch panel of experts claims it found 12 errors – from a criticism of the number of people in Africa at risk of water shortages to mistakes in references or typing. It also suggested the summary version of the report had portrayed an over-dramatic picture by putting the emphasis on negative impacts of climate change, and it failed to explain some of the threats were not only driven by climate change…
Transport
Solar-powered plane lands safely after 26-hour flight
An experimental solar-powered aircraft launched on Wednesday has landed safely in Switzerland after successfully flying through the night.
The feat is a step toward the makers’ aim of circling the globe using the power of the Sun to fuel the plane…
Electric cars must be taxed to pay for more power stations ‘or National Grid could fail’
Analysts for Saturn Energy calculated that a fuel duty of up to 10p a mile would be required to pay for the extra demand which will be created if the Government’s targets on renewable energy are hit.
The Climate Change Committee has said that 1.7 million electric cars should be on Britain’s roads by 2020…
£15m funding boost for 150 ‘green’ buses
More than 150 “green” buses are to come into service following £15 million of additional Government funding announced today.
The low-carbon vehicles will emit 50,000 fewer tonnes of carbon dioxide than conventional buses over a 15-year period…
Economy
IMF raises global economic growth forecast
The International Monetary Fund (IMF) has raised its forecast for global economic growth this year, from 4.2% to 4.6%.
It said the world economy grew strongly in the first part of this year, mainly thanks to robust growth in Asia…
IMF cuts UK growth forecasts
The International Monetary Fund has cut its growth forecasts for the UK which faces its biggest public spending squeeze in a generation.
The Washington-based fund now sees Britain’s economy growing 1.2% this year and 2.1% in 2011. Both figures have been revised lower from 1.3% and 2.5% respectively in April. This year’s forecast is the same as the UK government’s latest estimate, made in the emergency budget. But the IMF’s prediction for next year is below the 2.3% predicted by the Office for Budget Responsibility (OBR), set up by George Osborne to produce independent economic forecasts…
With the US trapped in depression, this really is starting to feel like 1932
“The economy is still in the gravitational pull of the Great Recession,” said Robert Reich, former US labour secretary. “All the booster rockets for getting us beyond it are failing.”
“Home sales are down. Retail sales are down. Factory orders in May suffered their biggest tumble since March of last year. So what are we doing about it? Less than nothing,” he said…
