Tag Archives: Fossil Fuels

Review of 30,000 climate studies: Starkest Warning Yet on Global Warming

Repost from The New York Times
[Editor: Huge news worldwide – for more, see:
UN News Centre, ‘Leaders must act’, urges Ban, as new UN report warns climate change may soon be ‘irreversible’;
CBS News (interview with professor Michio Kaku), U.N. panel issues grim report on climate change;
TIME, UN: Phase Out Fossil Fuels By 2100 Or Face ‘Irreversible’ Climate Impact, hope;
NBCNews, Climate Change Dangers Are ‘Higher Than Ever’: UN Report
– RS}

U.N. Panel Issues Its Starkest Warning Yet on Global Warming

By JUSTIN GILLIS, NOV. 2, 2014
Machines digging for brown coal in front of a power plant near Grevenbroich, Germany, in April. Credit Martin Meissner/Associated Press

COPENHAGEN — The gathering risks of climate change are so profound that they could stall or even reverse generations of progress against poverty and hunger if greenhouse emissions continue at a runaway pace, according to a major new United Nations report.

Despite growing efforts in many countries to tackle the problem, the global situation is becoming more acute as developing countries join the West in burning huge amounts of fossil fuels, the Intergovernmental Panel on Climate Change said here on Sunday.

Failure to reduce emissions, the group of scientists and other experts found, could threaten society with food shortages, refugee crises, the flooding of major cities and entire island nations, mass extinction of plants and animals, and a climate so drastically altered it might become dangerous for people to work or play outside during the hottest times of the year.

“Continued emission of greenhouse gases will cause further warming and long-lasting changes in all components of the climate system, increasing the likelihood of severe, pervasive and irreversible impacts for people and ecosystems,” the report found.

In the starkest language it has ever used, the expert panel made clear how far society remains from having any serious policy to limit global warming.

Doing so would require leaving the vast majority of the world’s reserves of fossil fuels in the ground or, alternatively, developing methods to capture and bury the emissions resulting from their use, the group said.

If governments are to meet their own stated goal of limiting the warming of the planet to no more than 3.6 degrees Fahrenheit, or 2 degrees Celsius, above the preindustrial level, they must restrict emissions from additional fossil-fuel burning to about 1 trillion tons of carbon dioxide, the panel said. At current growth rates, that budget is likely to be exhausted in something like 30 years, possibly less.

Yet energy companies have booked coal and petroleum reserves equal to several times that amount, and they are spending some $600 billion a year to find more. Utilities and oil companies continue to build coal-fired power plants and refineries, and governments are spending another $600 billion or so directly subsidizing the consumption of fossil fuels.

By contrast, the report found, less than $400 billion a year is being spent around the world to reduce emissions or otherwise cope with climate change. That is a small fraction of the revenue spent on fossil fuels — it is less, for example, than the revenue of a single American oil company, ExxonMobil.

The new report comes just a month before international delegates convene in Lima, Peru, to devise a new global agreement to limit emissions, and it makes clear the urgency of their task.

Appearing Sunday morning at a news conference in Copenhagen to unveil the report, the United Nations secretary general, Ban Ki-moon, appealed for strong action in Lima.

“Science has spoken. There is no ambiguity in their message,” Mr. Ban said. “Leaders must act. Time is not on our side.”

Yet there has been no sign that national leaders are willing to discuss allocating the trillion-ton emissions budget among countries, an approach that would confront the problem head-on, but also raise deep questions of fairness. To the contrary, they are moving toward a relatively weak agreement that would essentially let each country decide for itself how much effort to put into limiting global warming, and even that document would not take effect until 2020.

“If they choose not to talk about the carbon budget, they’re choosing not to address the problem of climate change,” said Myles R. Allen, a climate scientist at Oxford University in Britain who helped write the new report. “They might as well not bother to turn up for these meetings.”

The Intergovernmental Panel on Climate Change is a scientific body appointed by the world’s governments to advise them on the causes and effects of global warming, and potential solutions. The group, along with Al Gore, was awarded the Nobel Peace Prize in 2007 for its efforts to call attention to the climate crisis.

The new report is a 175-page synopsis of a much longer series of reports that the panel has issued over the past year. It is the final step in a five-year effort by the body to analyze a vast archive of published climate research.

It is the fifth such report from the group since 1990, each finding greater certainty that the climate is warming and that human activities are the primary cause.

“Human influence has been detected in warming of the atmosphere and the ocean, in changes in the global water cycle, in reductions in snow and ice, and in global mean sea-level rise; and it is extremely likely to have been the dominant cause of the observed warming since the mid-20th century,” the report said.

A core finding of the new report is that climate change is no longer a distant threat, but is being felt all over the world. “It’s here and now,” Rajendra K. Pachauri, the chairman of the panel, said in an interview. “It’s not something in the future.”

The group cited mass die-offs of forests, such as those killed by heat-loving beetles in the American West; the melting of land ice virtually everywhere in the world; an accelerating rise of the seas that is leading to increased coastal flooding; and heat waves that have devastated crops and killed tens of thousands of people.

The report contained the group’s most explicit warning yet about the food supply, saying that climate change had already become a small drag on overall global production, and could become a far larger one if emissions continued unchecked.

A related finding is that climate change poses serious risks to basic human progress, in areas such as alleviating poverty. Under the worst-case scenarios, factors like high food prices and intensified weather disasters would most likely leave poor people worse off. In fact, the report said, that has already happened to a degree.

In Washington, the Obama administration welcomed the report, with the president’s science adviser, John P. Holdren, calling it “yet another wake-up call to the global community that we must act together swiftly and aggressively in order to stem climate change and avoid its worst impacts.”

The administration is pushing for new limits on emissions from American power plants, but faces stiff resistance in Congress and some states.

Michael Oppenheimer, a climate scientist at Princeton University and a principal author of the new report, said that a continuation of the political paralysis on emissions would leave society depending largely on luck.

If the level of greenhouse gases were to continue rising at a rapid pace over the coming decades, severe effects would be avoided only if the climate turned out to be far less sensitive to those gases than most scientists think likely, he said.

“We’ve seen many governments delay and delay and delay on implementing comprehensive emissions cuts,” Dr. Oppenheimer said. “So the need for a lot of luck looms larger and larger. Personally, I think it’s a slim reed to lean on for the fate of the planet.”

Grant Cooke: Big Oil’s endgame: What it all means for Benicia

Repost from The Benicia Herald
[Editor: Benicia’s own Grant Cooke has written a highly significant three-part series for The Benicia Herald, outlining the impending fall of the fossil fuel industry and concluding with good advice for the City of Benicia and other cities dependent on refineries for a major portion of their local revenue stream.  This is the last of three parts.  Read part one by CLICKING HERE and part two by CLICKING HERE.  – RS]

Big Oil’s endgame: What it all means for Benicia

October 12, 2014, by Grant Cooke

P1010301IN APRIL 2014, THE HIGHLY RESPECTED Paris-based financial company Kepler Chevreux released a research report that has rippled through the fossil fuel industries. In it, Kepler Chevreux describes what is at stake for the fossil fuel industry as world governments’ push for cleaner fuels and reduced greenhouse gas emissions gathers momentum.

The firm argues that the global oil, gas and coal industries are set to lose a combined $28 trillion in revenues over the next two decades as governments take action to address climate change, clean up pollution and move to decarbonize the global energy system. The report helps to explain the enormous pressure that the industries are exerting on governments not to regulate GHGs.

Kepler Chevreux used International Energy Agency forecasts for global energy trends to 2035 as the basis for its research, and it concluded that as carbonless energy becomes more available, and as government policies make steep cuts in carbon emissions, demand for oil, natural gas and coal will fall, which will lower prices.

The report said oil industry revenues could fall by $19.3 trillion over the period 2013-35, coal industry revenues could fall by $4.9 trillion and gas revenues could be $4 trillion lower. High-production-cost extraction such as deep-water wells, oil sands and shale oil will be most affected.

Even under business-as-usual conditions, however, the oil industry will still face risks from increasing costs and more capital-intensive projects, fewer exports, political risks and the declining costs of renewable energy.

The report continues: “The oil industry’s increasingly unsustainable dynamics … mean that stranded asset risk exists even under business-as-usual conditions. High oil prices will encourage the shift away from oil towards renewables (whose costs are falling) while also incentivizing greater energy efficiency.” Eventually, fossil fuel assets will be too expensive to extract, and the oil will be left in the ground.

As far as renewables are concerned, Kepler Chevreux says tremendous cost reductions are occurring and will continue as the upward trajectory of oil costs becomes steeper.

Kepler Chevreux’s report is consistent with others released in 2014. One report from U.S.’s Citigroup, titled “Age of Renewables is Beginning — A Levelized Cost of Energy (LCOE)” and released in March 2014, argues that there will be significant price decreases in solar and wind power that will add to the renewable energy generation boom. Citigroup projects price declines based on Moore’s Law, the same dynamic that drove the boom in information technology.

In brief, Citigroup is looking for cost reductions of as much as 11 percent per year in all phases of photovoltaic development and installation. At the same time, they say the cost of producing wind energy also will significantly decline. During this period, Citigroup says, the price of natural gas will continue to go up and the cost of running coal and nuclear plants will gradually become prohibitive.

When the world’s major financial institutions start to do serious research and quantify the declining costs of renewable energy versus the rising costs of fossil fuels, it becomes easier to understand the monumental impact that the Green Industrial Revolution is having.

Zero marginal cost

Marginal cost, to an economist or businessperson, is the cost of producing one more unit of a good or service after fixed costs have been paid. For example, let’s take a shovel manufacturer. It costs the shovel company $10,000 to create the process and buy the equipment to make a shovel that sells for $15. So the company has recovered its fixed or original costs after 800 to 1,000 are sold. Thereafter, each shovel has a marginal cost of $3, consisting mostly of supplies, labor and distribution.

Companies have used technology to increase the productivity, reduce marginal costs and increase profits from the beginning. However, as Jeremy Rifkin points out in “Zero Marginal Cost Society,” we have entered an era where technology has unleashed “extreme productivity,” driving marginal costs on some items and services to near zero. File sharing technology and subsequent zero marginal cost almost ruined the record business and shook the movie business. The newspaper and magazine industries have been pushed to the wall and are being replaced by the blogosphere and YouTube. The book industry struggles with the e-book phenomenon.

An equally revolutionary change will soon overtake the higher education industry. Much to the annoyance of the universities — and for the first time in world history — knowledge is becoming free. At last count, the free Massive Open Online Courses (MOOCs) had enrolled about six million students. The courses, many of which are for credit and taught by distinguished faculty, operate at almost zero marginal cost. Why pay $10,000 at a private university for the same course that is free over the Internet? The traditional brick-and-mortar, football-driven, ivy-covered universities will soon be scrambling for a new business model.

Airbnb, a room-sharing Internet operation with close to zero marginal cost, is a threat to change the hotel industry in the same way that file sharing changed the record business, especially in the world’s expensive cities. Young out-of-town high-tech workers coming to San Francisco from Europe use Airbnb to rent a condo or an empty room in a house instead of staying at a hotel. They do this because they cannot find a room with the location they need, or because their expense reimbursement cap won’t cover one of the city’s high-end hotel rooms. Industry analysts estimate that Airbnb and similar operations took away more than a million rooms from New York City’s hotels last year.

A powerful technology revolution is evolving that will change all aspects of our lives, including how we access renewable energy. An “Energy Internet” is coming that will seamlessly tie together how we share and interact with electricity. It will greatly increase productivity and drive down the marginal cost of producing and distributing electricity, possibly to nothing beyond our fixed costs.

This is almost the case with the early adopters of solar and wind energy. As they pay off these systems and their fixed costs are covered, additional units of energy are basically free, since we don’t pay the sun to shine or the wind to sweep around our back wall. This is the concept that IKEA, the Swedish furniture manufacturer, is exploiting. IKEA is test marketing residential solar systems in Europe that cost about $11,000 with a payback of three to five years. Eventually, we’ll be able to buy a home solar system at IKEA, Costco or Home Depot, have it installed and recover our costs in less than two years.

All three elements — carbon mitigation costs, grid parity and zero marginal costs — and others like additive manufacturing and nanotechnology are part of the coming Green Industrial Revolution. It will be an era of momentous change in the way we live our lives. It will shake up many familiar and accepted processes like 20th-century capitalism and free-market economics, reductive manufacturing, higher education and health care. More to the point, it will see the passing of the carbon-intensive industries.

Like the centralized utility industry, the fossil fuel industries and the large centralized utilities have business models predicated on continued growth in consumption. Once that nexus of declining prices for renewables and rising costs of extraction and distribution is crossed — and we are already there in several regions of the world — demand will rapidly shift and propel us into “global energy deflation.”

Think about it: No more air pollution strangling our cities, no more coal ash spills in rivers that our kids swim in, no more water tables being poisoned by fracking toxics. Better yet, think of no more utility bills and electricity that is almost free. These are among the unlimited opportunities that extreme productivity can provide.

* * *

SO WHAT DOES ALL THIS MEAN FOR BENICIA? Our lovely town, along with some of our neighbors, has enjoyed a stream of tax revenue from the fossil fuel industries for several decades. This will end as these industries lose the ability to compete in price with renewable energy. After all, if my energy costs drop to near zero, I’m not going to pay $5 for a gallon for gas or 20 cents per kilowatt hour. If Kepler Chevreux, Citigroup and the prescient investment bankers are right — and they usually are — oil company profits will begin a death spiral accompanied by industry constriction and refinery closings. Losing $19.3 trillion over two decades is a staggering amount even for the richest industry in world history.

Benicia should begin a long-range plan to replace Valero’s current tax revenues. Two decades from now this town will be very different — we are headed toward a city of gray-haired pensioners and retired folks too contented with perfect weather and amenities to sell homes to wage earners who, in fact, may not be able to afford big suburban houses and garages full of cars.

Instead, the Millennials are choosing dense urban living that’s close to work, and they prefer getting around by foot or bicycle, with some public transportation and the occasional Zipcar to visit the old folks in ‘burbs. The last thing pensioners want to do is pay extra taxes for schools and services they aren’t using, so raising taxes to meet the tax revenue shortfall is probably out of the question.

A similar revenue shortfall is probably facing the thousands of fossil fuel and utility industry employees who are thinking of retiring in the East Bay. Many plan to live on their stock dividends and pass the stock along to their heirs. This will be difficult as the industry begins the attrition phase of its cycle. They should see a financial planner and diversify.

To gamble Benicia’s safety and expand GHG emissions by approving Valero’s crude-by-rail proposal is illogical given that the oil industry is winding down and fossil-fuel will soon not be competitive with renewables. It would better for the Bay Area if we start to help Valero and the other refineries begin the long slow wind-down process, and gradually close them while the companies are still profitable. If we leave the shutdown process to when the companies start to struggle financially, they will just lock the gates and walk away, leaving the huge environmental cleanup costs to the local communities much the way the military does when they close bases.

There’s no good reason why Benicia residents should be saddled with the burden of a shuttered and vacant Valero refinery. We should begin the process as soon as possible and work with the refinery to not only find a way to replace the lost tax revenue, but to identify who will pay for the hazard waste and environmental cleanup.

At the very least, Benicia City Council should understand the move to a carbonless economy, read the Citigroup and Kepler Chevreux reports and the other emerging research, and accept the fact that Big Oil has begun its endgame. Leadership is about looking forward, not back, and identifying and solving problems at the most opportune time.

Grant Cooke is a long-time Benicia resident and CEO of Sustainable Energy Associates. He is co-author, with Nobel Peace Prize winner Woodrow Clark, of “The Green Industrial Revolution: Energy, Engineering and Economics,” set to be released in October by Elsevier.

Neil Young: Who’s Gonna Stand Up?” (and save the EARTH) acoustic solo

Repost from YouTube

Neil Young: Who’s Gonna Stand Up?” (and save the EARTH)

(This version is an acoustic solo – scroll down for lyrics.  See also Neil Young Live with Crazy Horse – Who’s Gonna Stand Up?)

Lyrics:

Protect the wild, tomorrow’s child
Protect the land from the greed of man
Take down the dams, stand up to oil
Protect the plants, and renew the soil

Who’s gonna stand up and save the earth?
Who’s gonna say that she’s had enough?
Who’s gonna take on the big machine?
Who’s gonna stand up and save the earth?
This all starts with you and me

Damn the dams, save the rivers
Starve the takers and feed the givers
Build a dream, save the world
We’re the people know as earth

Who’s gonna stand up and save the earth?
Who’s gonna say that she’s had enough?
Who’s gonna take on the big machine?
Who’s gonna stand up and save the earth?
This all starts with you and me

Ban fossil fuel, draw the line
Before we build, one more pipeline
Ban fracking now, save the waters
And build a life, for our sons and daughters

Who’s gonna stand up and save the earth?
Who’s gonna say that she’s had enough?
Who’s gonna take on the big machine?
Who’s gonna stand up and save the earth?
This all starts with you and me

Who’s gonna stand up
Who’s gonna stand up
Who’s gonna stand up
Who’s gonna stand up
Who’s gonna stand up

Grant Cooke: Big Oil’s endgame has begun

Repost from The Benicia Herald
[Editor: Benicia’s own Grant Cooke has written a highly significant three-part series for The Benicia Herald, outlining the impending fall of the fossil fuel industry and concluding with good advice for the City of Benicia and other cities dependent on refineries for a major portion of their local revenue stream.  This is the first of three parts.  Read part part two by CLICKING HERE and part three by CLICKING HERE and .  – RS]

Grant Cooke: Big Oil’s endgame has begun

September 28, 2014 by Grant Cooke

Editor’s note: First of three parts to run on consecutive Sundays.

P1010301“THE STONE AGE CAME TO AN END, not because we had a lack of stones, and the oil age will come to an end not because we have a lack of oil,” said Sheikh Ahmed-Zaki Yamani. The former Saudi oil minister is arguably the world’s foremost expert on the oil industry. In 2000, he introduced this extraordinary observation with an even more prescient one — to wit, “Thirty years from now there will be a huge amount of oil — and no buyers. Oil will be left in the ground,” he told the UK’s Telegraph.

A decade and half later, we are coming to the end of Big Oil, and the domination of the world’s geopolitics and economy by the fossil-fuel interests for the past century. Correspondingly, the carbon- and nuclear-powered centralized utility industry that was started by Thomas Edison in 1882 when he flipped the switch at the Pearl Street substation in Manhattan has begun its decline.

Over the years, Big Oil and its related industries and supporters have disrupted the way humans manage their affairs, and wreaked havoc on our environmentally fragile planet. Today, the loss of a major section of the West Antarctic Ice Sheet from global warming caused by excessive carbon-generated heat appears unstoppable.

That hasn’t stopped the dead-enders from fighting on. In February, North Carolina’s Republican governor turned his administration into a joke with a clumsy attempt to help Duke Energy, the nation’s largest utility, avoid cleaning up 39,000 tons of coal ash that was spilled into the Dan River. The Duke ash coal spill came a month after 10,000 gallons of 4-methylcyclohexane methanols, or MCHM, spilled into West Virginia’s Elk River, ruining the water supply of Charleston, the state’s capital. A second chemical, a mix of polyglycol ethers known as PPH, was part of the leak, the company involved, Freedom Industries, told federal regulators. The company uses the chemicals to wash coal prior to shipping for coal-powered utilities. More than 300,000 West Virginians were impacted and several hundred residents were hospitalized with various symptoms.

Closer to home in Northern California, we had the massive 2012 Chevron fire that sent toxic chemicals billowing into the air and caused respiratory problems for 15,000 Richmond residents. Chevron admitted to negligence as the cause of the fire. In 2010, PG&E’s neglect led to the horrific San Bruno gas pipeline explosion that killed eight, injured 66 and destroyed 38 homes. The California Public Utilities Commission fined PG&E $2.5 billion, the largest fine in U.S. utility history. PG&E now faces federal charges that it violated the U.S. Pipeline Safety Act.

For several years, U.S. oil oligarchs Charles and David Koch have made a mockery of American democracy by pouring hundreds of millions of dollars into smear campaigns against scientists, environmentalists and liberal politicians. More than any others in recent memory, the Koch brothers have manage to replace consensus and compromise with vitriol and dysfunction in U.S. politics.

Oil madness is not a strictly U.S. disease. Vladimir Putin, channeling the ghost of Joseph Stalin, recently swept up a huge chunk of Ukraine and threatened an astonished Europe that if it opposed him, the result would be a shutdown of the Russian natural gas that many see as vital to the EU’s economic recovery. And the world seems to have grown accustomed to Mideast mayhem, where the biggest transfer of wealth in world history — from the oil users to the oil suppliers — has led to social and political chaos, repression, suffering and death.

* * *

EVEN AFTER A CENTURY OF SUPPORT, the U.S. federal government grants the oil industry, the world’s richest, with about $4 billion a year in tax subsidies, and Exxon Mobil Corporation (the largest grossing company in the world) minimizes the taxes it pays by using 20 wholly owned subsidiaries in the Bahamas, Bermuda and the Cayman Islands to legally shelter cash from its operations in Angola, Azerbaijan and Abu Dhabi.

The coal industry is also favored with tax breaks, public land loopholes and subsidized railroads. A 2013 Harvard University study concluded that the total real economic costs from U.S. coal amounted to $345.3 billion, adding close to 17.8 cents per kilowatt hour to the cost of electricity generated from coal. Called “external costs, or externalities,” these costs are borne by the U.S. public.

Now the carbon-based industries, which include coal, oil, natural gas and related industries like centralized utilities and transmission line companies, are coming to the end of their socially useful cycle. Their resources are aging beyond economic justification and their business models are too inflexible to adapt to a new industrial era with a different energy model.

This new era of energy generation, storage and sharing is upon us. We call it the Green Industrial Revolution, and it is emerging as the next significant political, social and economic era in world history. As it takes hold, it will result in a complete restructuring of the way energy is generated, supplied and used. It will be a revolutionary time of extraordinary potential and opportunity, with remarkable innovations in science and energy that will lead to new ones in sustainable, smart and carbon-less economies powered by nonpolluting technologies like wind, geothermal, wave, river and solar, with their advanced technologies like flywheels, regenerative and maglev systems, and hydrogen fuel cells.

Community-based and on-site renewable energy generation will replace massive fossil fuel and nuclear-powered central plant utilities. New advances in efficient recyclable batteries and fuel cells will store energy for when it is needed. Smart green grids will share electricity effortlessly. Additive manufacturing will minimize wasted resources, and new sciences like nanotechnology will have a profound impact on business, careers, human health and the global economy.

This new era encompasses changes in technology, economics, business, manufacturing, jobs and consumer lifestyles. The transition will be as complete as when the steam-driven First Industrial Revolution gave way to the fossil fuel-driven Second Industrial Revolution. It is a monumental shift that is already under way and spreading rapidly around the world.

Industrial revolutions occur when a new energy source intersects with a new form of communication. In the First Industrial Revolution, steam was the energy source and the printing press provided the means to disseminate new ideas that accelerated scientific breakthroughs and the adoption of inventions. In the Second Industrial Revolution, the fossil fuel-driven internal combustion engine was the power source and analog communication provided the channel for new ideas and technologies.

Today, the digital age, with Internet access to almost all scientific knowledge and Facebook and Twitter-led social media, has intersected with renewable energy generation, hydrogen storage and smart grids. While vast fortunes were made in the fossil-fuel era by extracting natural resources and despoiling the environment, wealth in this new green era will come from digital and IT breakthroughs, intelligent machines and a host of environmentally sensitive inventions.

Many factors are coming together to hasten the Green Industrial Revolution. Putin’s march on Ukraine shocked Europe and stirred the region’s efforts to generate more renewable energy and cut ties to fossil fuel. Forty percent of Scotland’s domestic electricity generation comes from renewable sources, mostly tidal and wind. Denmark and other Nordic nations intend to generate 100 percent of their energy by mid-century. Germany’s Energiewende (Energy Transformation), which aims to power the country almost entirely on renewables by 2050, is accelerating.

Almost daily, scientists in university and national research laboratories are making breakthroughs in developing non-carbon energy sources. The chemistry department of the University of California-Davis recently figured out how to make carbon-less gasoline from straw. Advancements in nanotechnology are making electricity usage much more efficient.

China is considering a ban on new cars that run on fossil fuels, and major cities across the globe have limited the use of autos in downtown areas. Several nations — and California, too — are creating hydrogen highways. Norway, Sweden and Germany have them; California will open its hydrogen highway in 2016. Daimler, Honda, Chevrolet and most other major automobile manufacturers have hydrogen-powered fuel cell cars ready to go.

Grant Cooke is a long-time Benicia resident and CEO of Sustainable Energy Associates. He is co-author, with Nobel Peace Prize winner Woodrow Clark, of “The Green Industrial Revolution: Energy, Engineering and Economics,” to be released in October by Elsevier, of which this column is excerpted.