Tag Archives: business & technology

America doesn’t import its oil from where you think it does

America doesn’t import its oil from where you think it does

When you think of American oil imports, you probably think of an empty expanse of desert with a few towering oil derricks sprinkled around. Heat shimmering off the sand. Trucks haul the fuel to tankers, which make their way from the Persian Gulf to some port on the Gulf of Mexico.

That image is wrong. What you should be picturing is a Mountie guarding a well ringed with maple trees.

Here, according to the U.S. Energy Information Administration, is where the U.S. imported oil from in October 2012, the last month for which data is available.

What’s most interesting, though, is how the source of oil differs depending on the region of the country you live in. Last week, Business Insider shared this map created by RBC Capital Market.

Business Insider

Click to embiggen.

While oil moves between regions, it’s fascinating to consider that the Midwest and Mountain West import only oil from Canada. The South’s main source, unsurprisingly, is Mexico, which provides us with almost as much oil as Saudi Arabia. And on the East Coast, more than half of our imported oil comes from Africa.

Assuming the data is accurate, this map gives the lie to the idea that our oil imports leave us at the mercy of states hostile to our interests. It also reveals that Mitt Romney’s proposal for North American energy independence was even easier to achieve than we may have realized.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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America doesn’t import its oil from where you think it does

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Nearly half of new U.S. power capacity in 2012 was renewable — mostly wind

Nearly half of new U.S. power capacity in 2012 was renewable — mostly wind

As predicted, almost half of the new power-generating capacity installed in the United States last year was renewable.

The Federal Energy Regulatory Commission recently released its December update on the nation’s energy infrastructure [PDF]. When we last checked on the data, it suggested that some 46 percent of new capacity — January through October — was renewable. Well, that ratio improved over the last two months of the year. Ultimately, 49.1 percent of new capacity was renewable.

Compare that to 2011, when less than 40 percent was renewable.

GreenBiz.com explains that end-of-year boost.

The latest Energy Infrastructure Update report from the Office of Energy Projects, part of the Federal Energy Regulatory Commission (FERC), lists just shy of 13GW of green energy projects coming online last year, a more than 50 percent rise on the 8.5GW of capacity added in 2011.

Around a quarter of this capacity became operational in December alone, as wind energy developers rushed to complete projects before the feared expiration of federal tax credits.

We noted last September the furious rush to bring those projects to completion. Seems like it worked.

The FERC report breaks out the new capacity by type.

Wind ended up being the biggest new source of capacity, beating even natural gas (which itself had a pretty good year).

The question is: Can this pace be sustained into 2013? The tax credit was extended as part of the fiscal cliff deal, but only temporarily. Our David Roberts thinks 2013 will be another big year for the industry. It will certainly be better than it would have been without the extension — but we’ll have to wait 12 months to see if Roberts is right.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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Nearly half of new U.S. power capacity in 2012 was renewable — mostly wind

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Another Massey executive will go to jail for his role in the Upper Big Branch explosion

Another Massey executive will go to jail for his role in the Upper Big Branch explosion

A former superintendent at Massey Energy’s Upper Big Branch Mine pled guilty today to his role in the 2010 explosion that killed 29 miners. From NPR:

[F]ormer Upper Big Branch coal mine superintendant Gary May was sentenced to 21 months in prison and ordered to pay a $20,000 fine. …

May pleaded guilty to one count of conspiracy and admitted to ordering a company electrician to disable a methane monitor on a mining machine so it could continue to cut coal without automatic shutdowns. The monitor is a safety device that senses explosive amounts of methane gas and automatically shuts down mining machines when dangerous levels of gas are present. …

May also pleaded guilty to deceiving federal mine safety inspectors and hiding safety violations.

TV 19

A sign near the Upper Big Branch mine in 2010

Last November, another Massey executive, David Craig Hughart, pled guilty to conspiracy. At the time, we speculated that his co-conspirators might include former Massey CEO Don Blankenship; now we know that the conspiracy at least included May.

What May did — basically the equivalent of shutting off a home carbon monoxide detector that kept sounding its alarm — is reprehensible. There is some belated recognition that it should also have been preventable. Shortly after the announcement of May’s plea deal, the Mine Safety and Health Administration announced a new rule that could prevent similar situations in the future.

MSHA calls it the “pattern of violations” rule and it’s supposed to identify coal mines with serious, persistent and habitual safety violations and then target them for heightened scrutiny. But MSHA failed to enforce the rule in the first 33 years of its existence, in part because of a self-imposed and cumbersome regulatory step. …

Investigators concluded that the Upper Big Branch mine qualified for preliminary “pattern of violations” (POV) status before the April, 2010, explosion. But regulators failed to apply the rule, blaming a “computer glitch” that has never fully been explained.

The revised rule eliminates preliminary steps so that regulators will have a much easier time citing and sanctioning habitual violators of serious safety standards. The new rule also triggers automatic and immediate shutdowns of mining areas if serious and substantial violations are found in mines with POV status.

Unsurprisingly, those mining industry executives who have not pled guilty to conspiracy charges spoke out against the tightened rule. From The Hill:

The National Mining Association (NMA) panned the rule, saying MSHA ignored the group’s concerns about the rule. Among them is the loss of mine operators’ due process when responding to a violation notice.

“Because any unsafe conditions must be remedied under current regulations, no miner is put in harm’s way if a citation is appealed,” the NMA said in a written statement. “As such, the loss of due process rights serves no safety objective.”

The group said some operators would unjustifiably be found in a pattern of violation, with little recourse.

It could be worse.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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Another Massey executive will go to jail for his role in the Upper Big Branch explosion

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Keystone will be even worse for the climate than you thought, says futile new report

Keystone will be even worse for the climate than you thought, says futile new report

At some point, the debate over the Keystone XL pipeline will be resolved. Either President Obama will allow the State Department to approve it, or he will not. Either it will be built, or it won’t. One of these days we’ll finally find out the state of Schrodinger’s poor little cat.

In the meantime, pipeline opponents and advocates are battling furiously for attention. Press releases and events and reports and letters and protests and panels and all of the strained tools of our semi-evolved persuasion society are thrown around in Washington, D.C., hoping to finally crack open that little cat’s box.

Here’s what has been thrown around today:

Oil Change International (working with the Natural Resources Defense Council) unveiled a new study, suggesting that petroleum coke, a solid byproduct of the tar-sands oil extraction process, is worse for the climate than coal. And since that petcoke (as it is known) will be sold and burned if tar-sands production is ginned up following approval of Keystone XL, its climate effects should be considered in the government’s environmental impact statement on Keystone. The Washington Post reports:

“The proven tar sands reserves of Canada will yield roughly 5 billion tons of petcoke — enough to fully fuel 111 U.S. coal plants to 2050,” the report says. It asserts that counting petroleum coke use would raise estimates of greenhouse gas emissions from oil sands development by 13 percent beyond earlier estimates used by the State Department.

The report said that “the climate impact of oil production is being consistently undercounted.” It calculated that petroleum coke byproduct from oil carried by the Keystone XL alone would be enough to fuel five coal plants and emit 16.6 million tons of carbon dioxide every year.

Counterpoint from the American Petroleum Institute’s Jack Gerard: The pipeline “is clearly is in the national interest, and that’s the only decision the president needs to make.” Considerations of carbon output are “tangential.”

Well, now I don’t know what to think!

usmcarchives

Marines during World War I emerge from the trenches to survey the futile conflict.

Meanwhile, Gerard and his tar-covered allies are busting out their own data, including a claim that building the pipeline could create 5,500 direct — and indirect — jobs. (This is a smidge lower than the tens of thousands of jobs advocates like to tout.) Even before that report finished hitting inboxes, a group of Republican governors and the premier of Saskatchewan wrote a letter to Obama urging approval. If Premier Brad Wall can’t move this ball forward, who can?

As we’ve noted in the past, and as suggested again in a recent Wall Street Journal report, the delay in approving the Keystone pipeline is itself doing damage to the prospect that it will be built. As tar-sands oil sits in Alberta with no effective means of transport, it becomes harder to sell, causing prices to plummet. The lower prices go, the less sense selling it makes. And as the United States continues to frack massive amounts of easier-to-refine oil, there’s less demand still. This is why the issue is urgent for both sides: Proponents are desperately injecting adrenaline shots into that poor, metaphorical kitty’s heart, while opponents, sensing vulnerability, are trying to wring its neck. (Sorry for these analogies, animal lovers.)

The cacophony of pro- and anti-Keystone arguments — reports, assessments, papers, exhortations — isn’t likely to change anything. If Obama is going to oppose Keystone XL because of the damage it would do to the climate, he doesn’t need this petcoke data to convince him. If he is going to approve the pipeline, it won’t be because of Gerard’s latest jobs claims or the persuasive powers of the good Premier Wall. Another day of furious arguing becomes just background noise for a president who right now is more worried about the budget and the murder of schoolchildren.

But we all have jobs to do: Jack Gerard has a job to do and Oil Change International has a job to do and I have a job to do. So we do them. And in a year, this hyperactive day will just be Jan. 17, 2013, a day we barely remember. Was it a Thursday? It was a Thursday.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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Keystone will be even worse for the climate than you thought, says futile new report

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More Hill staff go on to lobby for the oil industry, because this is how politics works

More Hill staff go on to lobby for the oil industry, because this is how politics works

Here’s more of this nonsense. From The Hill:

The Independent Petroleum Association of America (IPAA) has hired a pair of House GOP staffers to promote oil-and-gas development in Western states and the Gulf of Mexico.

The industry lobbying group said Tuesday that it’s expanding its government affairs staff by adding Mallori McClure, who was an aide to Rep. Doug Lamborn (R-Colo.), and Samantha McDonald, who worked for Rep. John Fleming (R-La.).

“Mallori’s and Samantha’s experience on Capitol Hill, both advising legislators who not only sat on the House Natural Resources Committee, but who represent important energy-producing states primes them perfectly to advocate for America’s independent oil and natural gas producers inside the Beltway,” said IPAA President Barry Russell in a statement.

Bullshit. Mallori and Samantha’s relationships on Capitol Hill prime them perfectly to advocate for the industry with their friends and former associates.

A 2010 report found that three out of every four oil industry lobbyists had previously worked for the government.

Even considering the generally friendly relationship between K Street and Capitol Hill, the number of well-connected oil lobbyists is remarkable. The nonpartisan Center for Responsive Politics calculates that fewer than one in three registered lobbyists in 2009 had revolving-door connections — less than half the oil industry rate found by The Post.

Officials with the Project on Government Oversight, a nonprofit group that tracks Interior Department officials who cross over to the oil sector, said they were surprised by the findings. “With these numbers, you can see how the revolving door between the Hill and industry allowed problems in the agency to happen and not be addressed,” said Mandy Smithberger, an investigator for the group.

The Independent Petroleum Association of America is one of 195 organizations and companies lobbying on oil issues. The oil and gas industry employs 736 lobbyists. In 2012, those lobbyists have cost their clients $103 million. That is more than eight times the amount spent by environmental advocates in 2011.

And that explains that.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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More Hill staff go on to lobby for the oil industry, because this is how politics works

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U.S. renewable investment drops in 2012 – but still hits second-highest level ever

U.S. renewable investment drops in 2012 – but still hits second-highest level ever

This is one of those “good news/bad news” things. We’ll start with the bad news, from The Hill:

Green energy investment fell in 2012 globally after hitting record levels the year before, driven in part by reduced activity in the United States, according to new data from Bloomberg New Energy Finance.

The research firm reported Monday that overall investment was $269 billion, down from $302 billion in 2011 …

And now the good.

… but still the second highest level ever, according to its database. …

“We warned at the start of last year that investment in 2012 was likely to fall below 2011 levels, but rumors of the death of clean energy investment have been greatly exaggerated,” Michael Liebreich, the company’s CEO, said.

“Indeed, the most striking aspect of these figures is that the decline was not bigger, given the fierce headwinds the clean-energy sector faced in 2012 as a result of policy uncertainty, the ongoing European fiscal crisis and continuing sharp falls in technology costs,” he said.

One of the main drivers for the decline was the wind industry, which spent the latter half of the year being treated by D.C. the way a cat treats a mouse.

The U.S. experienced a steep, 32 percent drop amid fears that a popular wind energy tax credit would lapse (it ultimately was extended in the “fiscal cliff” deal), and as renewable power faced competition from low-cost natural gas.

The company said wind investment also fell in Spain, which enacted a moratorium on subsidies for projects that have not yet been approved; India, where wind incentives expired; and Italy.

Bloomberg

Click to embiggen.

The Energy Information Administration suggested in December that renewable costs will continue to drop in 2013, and, combined with state mandates for renewables, that could mean an increase in installation this year.

Which would be a “good news/good news” thing.

Source

Analysts: Global, US green energy investment slid in ‘12, The Hill

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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U.S. renewable investment drops in 2012 – but still hits second-highest level ever

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BP kinda hoping the government can ignore a few hundred million barrels of spilled Gulf oil

BP kinda hoping the government can ignore a few hundred million barrels of spilled Gulf oil

British Petroleum, former record-holder for “most inept at U.S. offshore drilling,” has a favor to ask of the government. Yeah, sure, the government says that 4.9 million barrels of oil were spilled when the Deepwater Horizon went blooey, but if we could agree it was actually more like, oh, 4.1 million, that would save BP a few bucks.

From FuelFix:

The U.S. government has asserted that the well discharged 4.9 million barrels of oil, or 206 million gallons. BP stated again in its filing Friday that it believes the spill was significantly smaller, though it hasn’t publicly provided its own estimate.

With a finding of gross negligence, the 4.9-million-barrel figure would carry a maximum Clean Water Act fine of more than $21 billion.

How big a dent would this obviously scientifically accurate adjustment make?

Such a ruling could reduce BP’s fine by as much as $3.4 billion if the court were to rule that BP acted with gross negligence when its Macondo well blew out 50 miles off the coast of Louisiana, leading to the worst offshore oil spill in U.S. history.

BP doesn’t understand why this little incident has to be so expensive.

Data for 2012 hasn’t yet been released, but in 2011, BP only managed to pull in about $24 billion in profit. So you can see that having to pay for all of the damage that the company actually did would be a major imposition. That’s an extra $3.4 billion the company could be putting toward drilling more holes in the ocean floor, after all, and we certainly wouldn’t want it to stop doing that.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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BP kinda hoping the government can ignore a few hundred million barrels of spilled Gulf oil

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Shell’s Arctic drilling flunks even the lax air pollution standards it weakened

Shell’s Arctic drilling flunks even the lax air pollution standards it weakened

In its semi-inexplicable eagerness to get Shell the permits it needed to try to drill in the Arctic last year, the government made an important and ironic concession: The company would be allowed relaxed air pollution standards. The quote the company gave in its effort to be allowed to exceed pollution limits was pretty classic, pointing out that it “demonstrated compliance with a vast majority of limits.”

But, anyway, Shell managed to not even meet the more lax pollution standards it insisted on. From the Houston Chronicle:

The Environmental Protection Agency issued two notices of violation [last] week alleging Shell ran afoul of the Clean Air Act permits governing its Kulluk drilling unit used in the Beaufort Sea and the drillship Noble Discoverer, as well as its support vessels, in the Chukchi Sea.

According to the agency, Shell’s self-reporting of emissions revealed both drilling vessels released excess nitrogen oxide, leading the EPA to conclude that Shell had “multiple permit violations for each ship” during the 2012 drilling.

The emissions go beyond ones the EPA agreed to grandfather in a waiver Shell sought before it began drilling last year. Shell had asked permission to emit an unlimited amount of ammonia and more nitrogen oxide than originally permitted from the main generator engines on the Discoverer.

The thing I like most about that paragraph is that not only did Shell not meet pollution standards, and not only did it not meet pollution standards that it specifically begged be lowered, but it did not meet those standards on two vessels both of which it lost control of at some point during the year. I mean, really, if you can’t even manage to keep the things properly anchored, a skill that was mastered by humans sometime before the birth of Christ, I’m not surprised that you can’t figure out how to keep the things from polluting.

Shell’s Curtis Smith responded as one would expect. “We continue to work with the agency to establish conditions that can be realistically achieved,” he argued. Some examples the company might find acceptable:

Shell is prevented from spilling more than a billion gallons of diesel fuel in the ocean.
Shell may not pollute more nitrogen oxide than a normal small-sized nation of half a billion people would create over the course of a decade.
Shell is allowed up to ten (10) vessels escaping from their moorings in any one (1) week period, but no more.
If Shell does actually somehow manage to drill into an oil pocket and manages to start extracting crude, it is not allowed to spill more oil than would produce a 1-to-1 ratio of oil to water in any ocean.
If Shell does manage to start extracting, it cannot be taxed on that oil because jobs.

Source

EPA faults Shell over Arctic emissions, Houston Chronicle

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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Fixing a broken gas tax could fix broken roads

Fixing a broken gas tax could fix broken roads

Too many people are driving too many dang efficient cars in the Pacific Northwest lately, and Washington and Oregon have had enough. Between those efficient cars and a population that’s just generally driving less, gas tax intake has fallen nationwide, meaning less money for road maintenance and repairs that all cars (and bikes!) need. Now some states are looking at new ways to make up the difference.

deborahfitchett

Starting next month, Washington will begin taxing electric vehicle owners $100 per year, though with about 1,600 electric cars in the state, that’s not likely to fill those empty coffers. In Oregon, lawmakers are considering a proposal to tax through a flat fee like Washington or by taxing drivers of fuel-efficient cars based on the number of miles they drive. (A new report to the Washington state legislature says a mileage tax there would be “feasible.”)

Some say that taxing based on vehicle miles traveled, or VMT, will be the gas tax of the future not just for West Coast hippies, but for everyone. From CNBC:

Either way, what’s happening in the Pacific Northwest is raising a number of questions. The primary one being: Is it only a matter of time until anybody owning a car or truck is paying a special tax based on how much they drive their car?

Supporters of VMT or per mile taxes point out that electric car and even hybrid car owners are paying nothing or very little to help maintain state roads.

Take a look at the Washington electric vehicle tax and compare it to the state’s current gas tax of 37 cents per gallon. If somebody drives an internal combustion car that gets 30 MPG and they average 12,500 miles driven each year, they’ll pay about $154 a year in state gas tax. By comparison, electric car owners will be paying less at just $100 per year.

On the flip side, critics of VMT or per mile taxes say it’s hypocritical of state governments to promote electrical vehicle ownership and then turn around and tax those who are the “early adopters”.

It might be nice if states provided other incentives for more efficient vehicles, but that’s not really the spirit of the gas tax. If its goal were penalizing and shaming us over fossil fuels, I could understand this annoyance, but it’s not! It’s how we fund our roads. Not that we couldn’t use some shaming, but we could really use some investment in crumbling infrastructure. This is how taxes work! (USA! USA!) We all use the roads, so let’s please all pitch in to fill the potholes. You can still do that while feeling righteously smug, Volt drivers.

Susie Cagle writes and draws news for Grist. She also writes and draws tweets for

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Fixing a broken gas tax could fix broken roads

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Chevron is pleased with how much money it made last year, which is nice

Chevron is pleased with how much money it made last year, which is nice

Hey, hey! Happy times at Chevron headquarters, located at 10 Satan Street in a secret city that hovers out of sight behind storm clouds. The company’s fourth quarter profits will be “notably higher” than third quarter profits! (Third quarter revenues for the company were only $56 billion. Sad face.)

Bruna CostaChevron headquarters, somewhat obscured

From Bloomberg:

The outline given by the second-largest U.S. oil producer by market value hints at a bright succession of earnings reports when the world’s biggest publicly traded energy producers begin releasing results in coming weeks, said Brian Youngberg, an analyst at Edward Jones & Co. in St. Louis.

“Chevron’s results certainly provide an optimistic preview of what its peers in the integrated energy sector have in store,” Youngberg said in a telephone interview yesterday.

Hooray! Optimism in these dark times. Refreshing.

As for ExxonMobil:

Exxon, based in Irving, Texas, is expected to report net income of $43.8 billion for 2012, according to the average of six analysts’ estimates compiled by Bloomberg.

Clap clap clap clap! It will either spend that $43 billion by giving $6 to every living human being or by buying more things that enable it to suck more oil out of the ground more quickly to hasten the planet’s wrenching slide into a changed climate. (Sad face.)

Somewhere, behind the darkest cloud in the night sky, a toast is made. “To as much as we can get, as soon as we can get it.” Glasses clink. A single lightning bolt flashes to the ground leaving a scorched “X” that marks yet another place to drill.

Source

Chevron Strikes Optimistic Note for Quarterly Earnings, Bloomberg

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Chevron is pleased with how much money it made last year, which is nice

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