Benicia Herald: Interview with Benicia author Grant Cooke

Repost from The Benicia Herald

Authors’ latest eyes sustainable ‘revolution’

Benician, Nobel winner pen 3rd collaboration

February 11, 2015, by Donna Beth Weilenman
GRANT COOKE. File photo
GRANT COOKE File photo

For Benicia business owner and writer Grant Cooke, the question isn’t whether crude oil should come in by rail, pipeline or tanker ship. Nor which is better, hybrids or all-electric cars.

Cooke is looking ahead to hydrogen-powered vehicles that are no more combustible than those powered by gasoline and emit water vapor, not carbon gases, as they travel down roads and highways.

Now, in collaboration with Dr. Woodrow W. Clark III, winner of the 2007 Nobel Peace Prize as a contributing scientist to the United Nations Intergovernment Panel on Climate Change, Cooke has written about what he calls the “third industrial revolution” — a revolution based not on the carbon-intensive industries of the past but on energy sustainability.

The book, “The Green Industrial Revolution: Energy, Engineering and Economics,” is the third collaboration between Clark, founder of environmental and renewable energy consulting firm Clark Strategic Partners, and Cooke. But if not for an unexpected career change, it may never have happened.

Cooke originally planned to be a writer in a different genre. He earned degrees in journalism and political science at the University of California-Berkeley and a master’s degree in journalism at the University of California-Los Angeles.

But witnessing the demise of evening newspapers, Cooke said he realized he might do better in a different industry.

He went to work at Diablo Valley College in promotion and administration, marketing the college for 28 years. Then, in 2005, “I decided it’s time to leave,” he said.

He had been networking with some young engineers, and realized he, too, had “a knack for design.” The result was writing third-party utility-sponsored energy-efficiency programs for schools and colleges, with data centers in California, Texas and New York.

“It was a start-up company. We got bought out,” he said. That gave him the chance, in 2010, to start his own business, Sustainable Energy Associates, a mechanical engineering company focused on renewable energy and water conservation.

But along the way, he said, he wrote a sustainable energy program for Southern California Edison. That led to his connection with Clark. “He had become a leader in the sustainability world,” Cooke said.

Funding for the program got deferred, but the collaboration lasted. The duo have worked on three books so far; one, “Global Energy Innovation — Why America Must Lead,” primarily can be found in libraries, though it also is available through Amazon.com, where readers can learn that the book explains why the United States must leave behind lethargy and defeatism to take the lead in technological inventiveness in the areas of green jobs and carbon-neutral communities.

A second book, which experienced delays Cooke said were prompted by political change, isfocused on China and its “green” revolution. It is being translated into Mandarin before being released.

“The Green Industrial Revolution” has been out since Nov. 20, 2014, and Cooke called it “a major reference book of its type,” adding, “We are fairly serious scientists.”

The authors’ contention, Cooke said, is there is a “mega-trend change” in how energy is going to be generated.

For instance, he said, China “came of age” with the 2008 Beijing Olympics, when it became what he called “an essential part of the world economy.”

He said that country is moving fast to set aside its dependence on coal and investing trillions of dollars to clean up its environment.

“China,” he said, “is more serious than the United States.”

But it isn’t just about the environment: “We’re talking about a social, political and economic transition.”

Cooke said the upcoming change is on par with such significant events as 17th century Industrial Revolution, the switch to steam engines, the 19th-century discovery of oil as a fuel and the development of the internal combustion engine.

“My contention is, we are on the verge of the third industrial revolution,” he said. adding that some places already already are involved. That third revolution will be powered by renewable energy, with onsite distribution and a change from centralized to a decentralized, smart grid system.

“We’re at the end of a carbon-intensive lifestyle,” he said.

The change needs to happen, he said, because weather patterns are becoming unstable: the American Northeast is being inundated with snow, ice caps are melting and “the atmosphere is a garbage can for heavy carbon users.”

Not only that, but the change can reduce the cost of energy, he said, and that includes reaching a zero marginal cost.

“We’re economics-driven,” he said. He compared it to the production of any item, such as shovels: If he produced 10,000 shovels, the first hundred could cost $9 each, because part of the production costs are about building the system, such as the assembly line that makes the shovel.

But once he had paid for the system, the cost of making those shovels diminishes, Cooke explained. “Eventually, the only cost is resources, so you make more profit per shovel. That’s what is happening in renewable energy.”

He cited Moore’s Law, developed by Gordon Earle Moore, co-founder of Intel Corporation, and said based on that law technology doubles in strength and capacity every 18 months.

“My contention is, the same law applies to the growth of renewable energy,” Cooke said. “At the moment, the world uses six percent renewable energy. Each 18 months, it doubles. As it increases, costs go down.”

Those who put solar panels on their homes pay the cost of that installation in seven to eight years, Cooke said. “Once you reach seven years, the cost to generate energy is no cost.”

He said the business model for sustainability is better than for carbon-intensive industries, which is “a failing business model. It will be supplanted by renewable energy,” adding that in 19 regions of the world, solar energy is less expensive than carbon-generated energy.

One reason that is happening, he said, is the supplanting of fossil fuel by hydrogen energy in the transportation sector. “Norway, Sweden and Germany have relatively small but effective ‘hydrogen highways,” roadways where motorists have access to hydrogen “refills.”

In 2016, he said, California will launch its own hydrogen highway, along Interstate 5 from Mexico to Oregon, capable of supporting the hydrogen-fueled vehicles he said are in development by all major automobile manufacturers.

“Each has a prototype car,” he said, and Toyota and Honda already have such cars in Southern California.

He said several investment banks are reporting that carbon-based industries are losing money, and are predicted to lose $28 trillion in revenues in the next 20 years.

Cooke, who also is writing “Smart Green Cities,” which will be published this year by Ashgate/Gower in England, recognized that Benicia depends on carbon-based industries for its economy, and the largest of these is Valero Benicia Refinery.

He said this city has “geographic advantages” that those who are knowledgeable about economics find attractive. Those people could help Benicia change from counting on revenues from carbon-based companies to what he called a “smart-driven economy.”

“It’s happening before our very eyes,” he said.

He said there are places in Solano County where wind turbines generate energy for a few pennies per kilowatt, and solar arrays do the same for a little more than a nickel per kilowatt. “The average resident or small business owner pays 19 cents a kilowatt,” he said.

He predicted that renewable energy would overtake industries based on petroleum, and Benicia needs to join that change. “It’s time. The industry is declining, and it’s starting to accelerate,” he said. “Renewable energy is overtaking petroleum. It made profits at $140 a barrel. Now it’s looking at $50 a barrel or less.” He said the petroleum industry will never return to the prices of old.

“As futurists, Woody (Clark) and I are looking at a world that’s coming,” he said. Europe and Asia — especially China and India — are making greater efforts toward sustainable lifestyles, he said, an area in which the United States is lagging because of politics.

“Leadership is so bogged down,” he said — even as millions die from pollution-related illnesses, the world economy loses $1 trillion in global gross domestic product, increased salinity affects the world’s drinking water supply and marginal farmland fails to produce, leading to famine.

If this country is going to get pushed into a higher gear regarding sustainability, he said, “it will have to come on a local level. California is starting take on a leadership role. New York, too — New York has banned fracking.”

Ultimately, he said, he hopes the books he and Clark write explain to people that the world in which they grew up is changing, significantly.

“The sooner they understand the world’s environment is in danger, the sooner they can mitigate the danger for subsequent generations and move to a carbon-less lifestyle.”

“The Green Industrial Revolution: Energy, Engineering and Economics” is available on Amazon.com.

California legislators unveil measures to combat climate change

Repost from The Santa Cruz Sentinal

Proposals unveiled to combat climate change

By Paul Rogers, Bay Area News Group, 02/10/15

SACRAMENTO >> California lawmakers on Tuesday unveiled a package of bills to significantly expand renewable energy use in California, cut gasoline use by 50 percent and require the state’s major government pension funds to sell off investments in coal companies.

The four measures, proposed by Democratic leaders in the state Senate, mirror many of the goals set out by Gov. Jerry Brown in his State of the State speech last month. Opposed by oil companies and praised by environmental groups, the bills would extend California — which already had the nation’s toughest climate and renewable energy laws — to a new level in setting environmental policy for other states.

“We need to move the state away from fossil fuels, away from the grip of oil,” said Senate President Pro Tem Kevin de Leon, D-Los Angeles. “This is common sense climate policy.

Given that Democrats have large majorities in both the Senate and the Assembly, their prospects for passage are considered high.

The bills were introduced Tuesday at an afternoon news conference in Sacramento.

They are:

SB 350 (By Sen. Kevin de León, D-Los Angeles, and Sen. Mark Leno, D-San Francisco) >> Would require that by 2030, California utilities generate at least 50 percent of their electricity from solar, wind and other renewable energy sources, an increase from the current law which requires 33 percent renewable by 2020, and which the utilities are now on target to meet. The bill also would require state agencies to toughen building standards to require a 50 percent increase in energy efficiency in buildings from now until 2030. And it would require the California Air Resources Board to reduce petroleum use by cars and trucks by 50 percent from now until 2030, most likely through rules limiting greenhouse gas emissions from new vehicles, new incentives for electric vehicle purchases and rules requiring lower carbon content of petroleum fuels.

SB 185 (DeLeon) >> Would require that the California Public Employees Retirement System and the State Teacher’s Retirement System divest from companies with 50 percent or more of their revenues in coal mining or coal burning. CalPERS alone has assets of $295 billion, yet only has coal holdings totaling less than 1 percent of that amount, or $167 million.

SB 32 (Sen. Fran Pavley, D-Agoura Hills) >> Extends California’s landmark climate law, AB 32. The current law, signed by Gov. Arnold Schwarzenegger in 2006, requires California to cut greenhouse gas emissions to 1990 levels by 2020, a reduction of about 20 percent from “business as usual.” The state is on target to meet that goal. The new bill would go much further, locking into law a goal that Schwarzenegger had set: cutting greenhouse gas emissions 80 percent below 1990 levels by 2050. The bill, if passed, would require the California Air Resources Board to set new rules to meet the standards, and likely would involve further crackdowns and fees on the oil industry, petroleum power plants and gas-burning vehicles, with more incentives for renewable energy and electric vehicles.

SB 189 (Sen. Ben Hueso, D-San Diego) >> Would establish a seven-member expert committee to advise and inform annually the Legislature annual on clean energy and climate policies that could create jobs and spread economic benefits to all economic levels of society.

Although many industry leaders were waiting for the formal rollout of the bills to comment, billionaire Tom Steyer, a former San Francisco hedge fund manager who has helped fund efforts to reduce greenhouse gases and other air pollution, praised the measures.

“These are achievable policy proposals that will create good-paying green jobs here in California, mitigate the impact of climate change, and leave a cleaner, safer, more stable world for the next generation,” Steyer said.

“At a time when our state is faced with the choice between moving backwards by accepting the fossil fuel industry’s status quo or embracing a clean energy future for our state, this new legislative package includes commonsense proposals that will move California forward.”

AP: Oil on wild ride: How will it end?

Repost from The Seattle Times (AP)

Oil on wild ride: How will it end?

Predicting oil prices is especially tricky now because the oil market has never quite looked like this. Oil-price collapses of the past were triggered either by plummeting demand or an increase in supplies. This latest one had both.

By JONATHAN FAHEY, 2/10/15

An oil well owned by Apache Corp. in the Permian Basin in Texas. As prices have fallen globally, many U.S. communities that depend on oil revenue are bracing for hard times.
An oil well owned by Apache Corp. in the Permian Basin in Texas. As prices have fallen globally, many U.S. communities that depend on oil revenue are bracing for hard times. | Spencer Platt / Getty Images

NEW YORK — The price of oil is on a wild ride, and there is little agreement on where it’s headed.

After falling nearly 60 percent from a peak last June, the price of oil bounced back more than 20 percent as January turned to February. Then, on Tuesday, it sank 5 percent, closing just above $50.

Oil has fallen or risen by 3 percent or more on 14 of 27 trading days so far this year. By comparison, the stock market hasn’t had a move that big in more than three years.

Predicting prices is especially tricky now because the oil market has never quite looked like this. Oil price collapses of the past were triggered either by plummeting demand or an increase in supplies. This latest one had both.

Production in the U.S. and elsewhere has been rising, while slower economic growth in China and weak economies in Europe and Japan mean demand for oil isn’t growing as much as expected.

As recent trading shows, any sign of reduced production inspires traders to buy oil, and every new sign of rising supplies sends prices lower. In a report Tuesday the U.S. Energy Department, citing unusual uncertainty, said the price of oil could end up anywhere from $32 to $108 by December.

“There are many more laps to come on this roller coaster,” said Judith Dwarkin, chief economist at ITG Investment Research.

As oil bounces up and down, so will the price of gasoline, diesel and other fuels. Almost no one expects a return to the very high prices of the past four years, so drivers and shippers will continue to pay lower prices. It’s a question of how much less, and for how long.

Those expecting a quick and lasting price jump see mounting evidence that drillers in the U.S. are pulling back fast because they’re no longer making money. A closely watched survey by the oil-services company Baker Hughes shows that the number of rigs actively drilling for oil fell to 1,140 last week, down 29 percent from a record high of 1,609 in October.

Oil companies have announced spending cuts in the billions of dollars; oil-service companies have announced layoffs of thousands of workers.

If companies stop drilling new wells in North Dakota and Texas, the centers of the U.S. oil boom, overall U.S. production could fall fast. Output from most of those wells declines far more quickly than production from more traditional wells. Analysts at Bernstein Research estimate that U.S. production declines at 30 percent a year without constant investment in new wells.

A quick decline in production would send prices higher by reducing global supplies. At the same time, demand could be on the rise. The U.S. economy seems to be improving rapidly, and demand for gasoline is increasing. Global demand may also rise somewhat simply because low prices tend to encourage more consumption.

If the oil bulls are right, it means prices for transportation fuels would rise and the slowdown in drilling activity in the U.S. would perhaps be short-lived.

Others say oil production is still rising and demand isn’t yet catching up — a recipe for lower oil prices.

The oil bears argue that there are plenty of rigs still working, and they are now focused only on the most prolific spots. Also, oil-services companies are charging significantly less for equipment and expertise. This means oil companies may be able to keep oil supplies rising from already high levels despite low prices.

The Energy Department reported last week that there was a record 1.18 billion barrels of oil in storage in the U.S. ITG’s Dwarkin estimates that in the first half of this year the world will be producing, on average, 2 million barrels per day more than it will be consuming.

Analysts at Bank of America Merrill Lynch say $32 a barrel is possible. Ed Morse, an analyst at Citi, called the recent rise in prices a “head fake” and predicts oil could plunge into the $20 range, the lowest since 2002.

The bears also don’t expect much increase in demand. Many developing nations are cutting back on fuel subsidies, which means that consumers could be buying less fuel, not more.

And demand in the United States and other developed nations won’t rise much, they argue, because of environmental policies and high fuel taxes.

After its recent rise, some think oil may already be close to finding its level.

The International Energy Agency said in a report Tuesday that prices will stabilize in a range “higher than recent lows but substantially below the highs of the last three years.”

In the past, once production went offline it took years to bring it back. Now, the IEA said, drillers can quickly and easily tap shale deposits to bring new oil to market as soon as supplies fall or demand rises. That should help keep a lid on prices.

Tom Pugh, an analyst at Capital Economics, forecasts that Brent crude, the most important benchmark for global crude, will end the year around $60 a barrel, within $4 of where it closed Tuesday — and to be at $70 by the end of 2020.

That doesn’t mean, however, that there won’t be further bumps along the way. “We wouldn’t be surprised to see more large price movements before the market settles down,” Pugh wrote.

 

Palo Alto passes fossil fuel divestment resolution

Press Release from Peninsula Interfaith Climate Action (PICA)

Interfaith Victory: Palo Alto Fossil Fuel Divestment Resolution Passed

PALO ALTO, CA — February 9, 2014.

The City of Palo Alto, responding to concerns from Peninsula Interfaith Climate Action (PICA), voted unanimously to send a message to CalPERS (California Statement Employee Retirement System), the national’s largest pension fund, to pull its investments out of fossil fuels.

Councilmembers Marc Berman, Patrick Burt, Karen Holman and Liz Kniss submitted the initial “Colleague’s Memo” in favor of divestment. “Climate change poses a top-tier threat to our future. Our obligation to address climate change through all avenues requires support from all sectors,” noted Council member Cory Wolbach. “I was inspired to see the passionate and effective work of these congregations collecting 152 signed letters on behalf of fossil fuel divestment.  Those letters, presented by a cross-denominational coalition, sent a very powerful moral statement.”

Eileen Altman is an associate minister at First Congregational Church in Palo Alto and a PICA member who spoke at the City Council meeting. “As Christians, we share a core set of values and concern for God’s gift of life, both human and all other life. Our investments should reflect our values.” said Rev. Altman. “This concern is not a liberal or conservative value, but is a Christian value. The US political system unproductively magnifies differences when Americans everywhere share 98% of the same values. Climate is about the future of our children and is especially about the people who are most vulnerable to the effects of climate change. Climate is the biggest social justice issue of our time. From the pews in Palo Alto and throughout the United Church of Christ, the first denomination to pass a resolution to move toward divestment from fossil fuels (in 2013), we welcome the opportunity to respectfully dialogue about climate with churches in all regions of the country and across all party affiliations.”

While the call for fossil fuel divestment may have its strongest impact as a symbolic statement, it also has practical implications for the economic value of employee pensions, explained Debbie Mytels, convener of PICA, which comprises a dozen local congregations that submitted signed letters to the Council in favor of the divestment resolution.

“While we believe it’s a moral obligation to stop using the fossil fuels that are causing sea level rise, extreme weather events and drought-related crop losses,” Mytels said, “it’s also important to question how long investments in these companies will be financially valuable.”

“If we want to protect our employees’ pensions, we need to get CalPERS to pull out of dirty fuels before they become ‘stranded assets’.” said Mytels, citing a recent statement by Deutsche Bank in Germany that said  “to meet climate change targets, over half of identified fossil fuel reserves will have to stay in the ground.”

“While we are pleased with Palo Alto’s progress in becoming a city that supplies ‘carbon free’ electricity to its utility customers,” Mytels said, “we feel it’s time for our city to demonstrate further leadership by joining the call for divestment.”

“Thankfully, Palo Alto itself does not own any investment in fossil fuels of any sort — that’s all the more reason for the Council to consider the long-term safety of our employees’ CalPERS retirement assets,” she added.

Reverend Will Scott, from California Interfaith Power & Light (CIPL), noted that “CIPL and our growing statewide network of more than 640 congregations are grateful for the inspiring work of the Peninsula Interfaith Climate Action group, now a CIPL Regional Working Group. Their regular, committed, and personal engagement on the local level as people of diverse faiths concerned about the climate crisis, is a strong model for other regional working groups in our network. Indeed, they are exemplifying the sincere, collaborative, practical, rooted and creative community resiliency needed throughout the world to meet the seriousness of this global challenge. California Interfaith Power & Light is learning much from PICA’s practices and shared wisdom.”

Palo Alto now joins a growing group of California cities, including San Francisco, Oakland, Berkeley, Brisbane, Richmond, Fairfax, and Santa Monica in calling for dropping fossil fuels from employee pension funds. Sunnyvale may be the next city. Other regional agencies, including the Santa Clara Valley Water District, which is mandated to protect Silicon Valley citizens from floods, have also passed similar resolutions due to concerns about sea level rise.

In advance of Global Divestment Day, Feb. 13, 2015, Norway announced last week that it would drop coal and tar sands companies from its national investment portfolio. Similarly, the Rockefeller Brothers Fund has made such a decision, along with 50 other philanthropic organizations. The divestment movement is also growing significantly among national faith-based groups, and nearby Stanford University has agreed to eliminate its holdings in coal companies. Today, California State Senate President Kevin de Leon introduced SB 185, directing CalPERs to divest coal fossil fuel investments.

For more information about PICA, see http://www.interfaithpower.org/pica and http://pica.nationbuilder.com/

City of Palo Alto Fossil Fuel Divestment Resolution.

The Palo Alto City Council voted unanimously in favor of divestment:  https://pbs.twimg.com/media/B9dpI7FCQAAfghe.jpg

PICA members celebrate: https://pbs.twimg.com/media/B9dpI7JCIAAsuEF.jpg

For more information about the international fossil fuel divestment movement, see http://gofossilfree.org/

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