Energy Giants Ignore Their Own Greenwashing Campaigns
NYT had an interesting article this week about Big Oil’s resistance to developing renewable energy sources. Normally, this wouldn’t be a big surprise– as Big Oil is naturally in the business of producing big oil. However, given the nearly ubiquitous marketing campaigns run by the energy giants touting their newfound green credentials, their failure to live up to these claims is hypocritical and deceptive. For example:
- BP has been shrinking its renewables program since 2007, despite the continued claim that it is moving Beyond Petroleum.
- Royal Dutch Shell announced last month that it was freezing research and investments in wind, solar, and hydrogen power (although it will continue its biofuels research). While Shell claims to have spent $1.7 billion since 2004 on alternative energy projects, it has spent $87 billion in that same timeframe on oil and gas projects.
- Exxon Mobil’s CEO Rex Tillerson notes, “In my view, nothing has really changed. We don’t oppose alternative energy sources and the development of those. But to hang the future of the country’s energy on those alternatives alone belies reality of their size and scale.” Exxon’s own long-term forecast predicts that by 2050, oil, gas, and coal will account for 80% of the world’s energy supplies– which is the same as today.
Of course, none of these facts should come as a surprise. Without a comprehensive carbon policy from Washington, the most profitable thing these companies can do is to sell hydrocarbons. Unless and until we more accurately price the real cost of burning fossil fuels via a carbon tax or cap-and-trade, these companies will have no reason to change their behavior (and nor should they be expected to). But in the meantime, the public needs to recognize that their big green marketing campaigns are nothing more than a distraction. Real change will only come when our “leaders” in Washington can do what’s needed and pass a meaningful climate bill.
Hybrid Sales Fall Precipitously as Gas Prices Remain Low
Not surprisingly, as gas prices have fallen in recent months, so have sales of hybrid vehicles. In February, only 15,144 hybrids sold in America, down two-thirds from last April, when sales for that segment peaked (and gas was an average of $3.57 a gallon). While auto sales across the board have fallen dramatically as a result of the economic situation, the drop in hybrids has been even more precipitous.
Two main lessons can be learned from this situation, with the most obvious being that the higher gas costs, the more consumers will purchase efficient vehicles. But the second lesson, which is less apparent, is that as Congress forces automakers to build more alternative fuel cars as a condition of the bailouts, it is putting these companies in a new bind– since consumers don’t want to purchase these efficient vehicles while gas is reasonably cheap.
Apparently, the only entity that is more out-of-touch with the American consumer than the domestic automakers is Congress. By forcing automakers to build efficient cars while gas prices hover around $2, Congress could be setting the stage for another domestic auto industry crash in the coming years.
Of course, this could all be solved by just following the number one lesson above– and dramatically increasing the federal gasoline tax so that consumer (and industry) behavior changes permanently. But Congress, like the automakers, rarely makes the right strategic decision.
Stimulating Renewable Energy…
The massive $787 billion stimulus bill was signed into law on Tuesday and people are beginning to digest what was inside it. According to Recovery.gov, in general, the bill is allocated in the following manner:
- Tax Relief $288 billion
- State and Local Fiscal Relief $144 billion
- Infrastructure and Science $111 billion
- Protecting the Vulnerable $81 billion
- Health Care $59 billion
- Education and Training $53 billion
- Energy $43 billion
- Other $8 billion
Of course what is of interest to us is the $43 billion allocated for energy. With $22 billion in tax relief also going towards energy, the total investment in energy is actually $65 billion. This stimulus money allocated for energy is broken-down as follows: READ MORE
Gasoline Prices Magically Rise as Oil Stagnates
The entire oil production chain stinks. From the cartel of petro-states that drill it to fund their illegitimate regimes, to the traders that hoard it and play market games, to the allegedly independently operated refineries that mysteriously require unexplained maintenance all at the same time, the path to the pump is to corrupt and too easily manipulated. Practically every step along this chain there is the will and the ability to artificially decrease the supply in order to prop up prices.
Despite the fact that a barrel of crude has been sitting around $40, the average price of a gallon of gas is now $1.92, up from $1.79 a month ago.
Gregg Laskoski, managing director of public relations for AAA Auto Club South said that some of the increase in price can be attributed to lower output by U.S. refineries. Laskoski noted the odd situation where “A recession and rising unemployment translates into fewer motorists on the road and diminishing fuel consumption, and yet, retail prices climb higher.”
The sooner we transition off of this corrupt and polluting commodity, the sooner our economy, planet, and way-of-life, can regain some security.
Detroit Should Support Obama’s Efficiency and Emissions Laws (But They Won’t)
Not surprisingly, automotive industry groups expressed opposition on Monday to President Obama’s plan to increase vehicle efficiency laws at both the state and federal levels. The opposition was generally expressed in the standard “this is too costly” language, with a dose of “in these harsh economic times” thrown in for good measure.
But we’ve heard this a thousand times before. Of course it is costly to meet new efficiency standards, and of course times are especially difficult right now. But given that automakers always warn that regulations will put them out of business and cost jobs, they have questionable credibility in this debate. READ MORE
Vast Majority of Earth Scientists Attribute Climate Change to Human Activities
While U.S. voters may doubt climate change is caused by humans, the overwhelming majority of earth scientists from around the globe disagree. In a survey released on Tuesday by researchers from the University of Illinois at Chicago, it was found that 82% of 3,146 earth scientists surveyed blame human activity for changing global temperatures.
Of these scientists, 97% of climatologists believe humans play a role. The biggest doubters came from the fields of petroleum geology and meteorology, with only 47% and 64% attributing climate changes to human behavior, respectively. READ MORE
Palin: Alaska Will Sue to Prevent Protection of Beluga Whales
On the same day that EPA nominee Lisa Jackson declared that politics should not trump science in government, Alaska Gov. Sarah Palin announced that her state would be filing a lawsuit to prevent beluga whales in the Cook Inlet from being protected under the Endangered Species Act.
Due to the decline in the fragile population of fewer than 400 remaining beluga whales in the Inlet, the National Oceanic and Atmospheric Administration (NOAA) listed these whales as endangered last year. NOAA warned that, “The Cook Inlet beluga population declined nearly 50 percent between 1994 and 1998,” and that “the Cook Inlet beluga population [was] at 375 for both 2007 and 2008. Estimates have varied from a high of 653 belugas in 1994 to a low of 278 belugas in 2005.” READ MORE
In 2007, 75% of Renewable Tax Benefits Went To Corn-Based Ethanol Industry
Generally, the two biggest criticisms of corn-based ethanol have been that it is actually bad for the environment and increases pressure on the world’s food supplies. However, in spite of these facts, U.S. renewable energy policy has been skewed greatly in-favor of ethanol.
Highlighting this fact, Environmental Working Group (EWG) recently released an analysis of U.S. ethanol policy that finds the following incredible conclusions (among others):
- Corn-based ethanol has accounted for fully three-quarters of the tax benefits and two-thirds of all federal subsidies allotted for renewable energy sources in 2007.
Not a Drop to Drink… But Plenty to Use For Drilling and Mining
Foreshadowing the impending conflicts of the 21st century, a battle is heating up in the American West between water and oil interests. On the one side are those in favor of exploiting the massive oil shale reserves under the Rocky Mountains. These reserves are one of the biggest remaining oil resources in the world– containing three times as much oil as that remaining in Saudi Arabia.
Although oil shale extraction is extremely costly, energy intensive, and polluting, it is the massive amount of water that it consumes that is really bringing out the political opposition. Opponents worry that the Colorado River, which is already being taxed to its limits, can not support the enormous draw that would be required for wide scale shale mining in the region. READ MORE
Commission Recommends Raising U.S. Gas Tax
A failing economy may accomplish what environmental and geopolitical necessity could not– which is, cause the government to increase the national gas tax. A congressionally sponsored commission is set to recommend that the national gas tax should be raised by 10 cents per gallon in order to cover the massive shortfall the national Highway Trust Fund is facing.
The current lack of funds, which are used to reduce congestion, improve roads, and expand transit, is a result of two problems. First, the high gas prices in the beginning of 2008 and the failing economy in the end of the year, caused drivers to substantially cut-back on their driving habits. As a result, between October 2007 and September 2008, the Highway Trust Fund took in $3 billion less than it did the prior year. Second, even when Americans were driving a lot, the revenues raised by the gas tax were insufficient to properly maintain and upgrade our transportation infrastructure. READ MORE
CA Public Utilities Commission to vote on Sunrise Powerlink
The future of the contentious Sunrise Powerlink project could be decided today (Thursday) by the California Public Utilities Commission. The proposal by utility company, SDG&E would run a 100 mile $1.9 billion high-voltage transmission line to San Diego from the eastern deserts of neighboring Imperial County. Proponents, which include Gov. Schwarzenegger and the PUC president, argue that this is exactly the type of project that is necessary to grow our nation’s renewable energy production. Since most large-scale renewable resources lie away from urban centers, the electricity generated in these locations must use a new generation of transmission lines to bring the power to cities. This is the purpose of the Sunrise Powerlink project, according to SDG&E and other supporters. READ MORE
New ‘Very High Speed’ Train Goes 220 mph and Has No Centralized Engine
This month, the French company Alstom Transport is testing its brand new “very high speed” train, the AGV (or Automotrice à Grande Vitesse), on live tracks in Eastern France. Unlike most trains, which have a single engine car in the front or back, the AGV has a series of distributed motors underneath the passenger carriages, which saves space and allows the train to carry 20% more passengers. (Notice in the photo below how little space there is from the nose of the train to the first passenger seats.)
The AGV is being tested over 12 nights this month on the Eastern high-speed line, between the Champagne-Ardenne and Lorraine stations, at its ideal speed of 224 mph. In comparison, the American high speed Acela train travels at a top speed of 150 mph.
The test train is outfitted with 4,000 sensors that will look at both the train’s overall mechanical capabilities, as well as the interior passenger compartment. Although significant testing has already been done with computer models and on closed course test tracks, it is impossible to perfectly replicate the environment a train will face on live tracks. READ MORE
Pickens ‘anxious’ about wind farm project
Pickens held a briefing with reporters on Monday where he discussed the status of his massive Texas Panhandle wind farm project, as well as the state of energy, in general.
Regarding the Panhandle project, Pickens said that he is “anxious” since the economic and credit crises threaten to choke off financing for the project. “Where’s the money is the question. I don’t know how we’ll do it. I’m anxious to see what Obama comes up with. There is no money to finance a wind project now,” Pickens stated.
Pickens reiterated his warning that when the economy rebounds, prices will spike again, potentially even to $100 by next year. He also said that Obama’s policies will play a key role in determining whether efforts to effect an energy transformation will occur. Specifically, extending tax credits for alternative energy and promoting natural gas usage for heavy duty vehicles will be essential.
Earlier this year, Pickens’ company Mesa Power began the first phase of the Panhandle wind farm by purchasing over 600 wind turbines. While the future of that project is somewhat up in the air, as Pickens noted, “We don’t receive turbines until late 2010, so you’ve got some time for a recovery and we’ll see where we go from there.”
Friedman to Obama: efficiency incentives and mandates are not enough– we need a carbon tax
President-elect Obama, in an interview conducted earlier this week and aired Sunday on Meet the Press, indicated that while he supports a transformation in our energy and environmental policies, he wants to accomplish this through incentives, rather than a carbon tax.
Tom Friedman, in effect, responds to that position in his op-ed in Sunday’s NYT.
Laying out the enormous importance of how the billions from bailouts and stimulus packages are spent, Friedman quotes Andy Karsner, a former assistant secretary of energy: “Remember, this money will not be neutral. We are talking about directing an unprecedented volume of cash at our housing, energy, transportation and infrastructure industries. This cash will either fortify the incumbent players and calcify the energy status quo, or it will facilitate the economic transformation we seek. The stimulus will either be white blood cells that will heal us or malignant cells that will continue to sap our strength.” [emphasis added]
Similar to our mantra on this site, Karsner (and Friedman) are basically saying that our country has been operating under an unsustainable status quo for a long time, and the billions and billions of dollars that we are about to spend will either act to cement that untenable situation, or transform it into something healthy and viable. READ MORE
Burps, farts, and other crazy emissions from livestock a major source of greenhouse gases
NYT’s Elisabeth Rosenthal has a good article about greenhouse gas emissions from global agriculture. As we’ve noted, the debate over livestock emissions is heating up in the US as the EPA considers a regulation scheme. But even as US farmers gear up for a fight, there are indications from around the world that this is a major problem that must be addressed.
Because of increasing worldwide affluence, millions of people who have lived mostly on less expensive grains are now able to add meat to their diets. And those in the developing world are, of course, continuing to consume large amounts of meat.
This is an environmental nightmare, since according to the UN, activities relating to the production of livestock account for 18% of global greenhouse gas emissions. This is more than that released by cars, buses, and airplanes. READ MORE
