Tag Archives: Fossil Fuels

At least one major oil company will turn its back on fossil fuels

Repost from The Guardian

At least one major oil company will turn its back on fossil fuels, says scientist

Jeremy Leggett, former industry adviser, warns over plunging commodity prices and soaring costs of risky energy projects

Jeremy Leggett
Jeremy Leggett: ‘One of the oil companies will break ranks and this time it is going to stick.’ Photograph: Linda Nylind for the Guardian

By Terry Macalister, 11 January 2015

The oil price crash coupled with growing concerns about global warming will encourage at least one of the major oil companies to turn its back on fossil fuels in the near future, predicts an award-winning scientist and former industry adviser.

Dr Jeremy Leggett, who has had consultations on climate change with senior oil company executives over 25 years, says it will not be a rerun of the BP story when the company launched its “beyond petroleum” strategy and then did a U-turn.

“One of the oil companies will break ranks and this time it is going to stick,” he said. “The industry is facing plunging commodity prices and soaring costs at risky projects in the Arctic, deepwater Brazil and elsewhere.

“Oil companies are also realising it is no long morally defensible to ignore the consequences of climate change.”

Leggett, now a solar energy entrepreneur and climate campaigner, points to Total of France as the kind of group that could abandon carbon fuels in the same way that E.ON, the German utility, announced plans before Christmas to spin off coal and gas interests and concentrate its future growth on renewables.

Pressure on the energy industry to pull out of fossil fuels has grown in recent months with a campaign for pension funds to disinvest from coal, oil and gas.

A new report published this week by researchers at University College London deepened the message that vast amounts of oil in the Middle East, coal in the US and gas in Russia cannot be exploited if the global temperature rise is to be held at the 2C level safety limit agreed by countries.

Leggett, who once conducted research into shale funded by BP and Shell, chairs Carbon Tracker Initiative, a thinktank which aims to raise awareness among key decision-makers about the risks that fossil fuel investments pose to wider financial stability. He believes the current 50% slump in the price of Brent crude will cause the US shale boom to go bust with potentially alarming consequences for the financial system.

“Many of the shale drillers have been feasting on junk bond finance, which was so easy when oil prices were above $100 (£66) but with prices at $50 confidence is going to collapse,” he said. “Should the shale narrative evaporate then it is going to be very embarrassing for all sorts of political promoters of the industry, including George Osborne.”

Leggett said that despite the price collapse due to oversupply, he remained convinced the “peak oil” theory that supplies will eventually be unable to meet demand remains intact.

This is not because there are not the oil or gas reserves in the ground to meet future growth, but because they are too costly and environmentally dangerous to produce, he argues.

“I would say to both the utility industry and the oil and gas industry: its game over, guys,” he said. “You have got to identify the point at which it’s all going to be thoroughly changed and you have got to map back from it.

“You have to think strategically. The point to map back from is zero carbon in the energy system, not the electricity system, by 2050, because more than 100 governments want that in the [next UN climate change] treaty being prepared for signing in Paris.”

But he also believes the energy industry is privately aware of the problems as it watches its own costs of fossil fuel extraction going up while the costs of solar and other new technologies are coming down.

Leggett, who plans to stands down as chairman of the highly successful Solarcentury renewable business he founded to focus on climate change campaigning, holds what he calls “friendly critic” sessions with the fossil fuel sector these days. The tone of the meetings has changed significantly over the past two years, he said.

“Before it was know your enemy. Now it’s: ‘Crikey. A lot of this may be coming true on our watch. What shall we do about it?’ There are top-to-bottom strategic reviews going on in E.ON but in other companies as well, utility and oil and gas. So it will be really interesting to see which is the first of the oil and gas companies to break from the pack, although I fear BP and Shell are going backwards not forwards on carbon.”

DOT Ignores Congress’ Deadline for Upgrading Safety Rules to Prevent Oil Train Disasters

News Release from Center For Biological Diversity
[Editor: see this story also in INFORUM (Fargo ND), which shows an interesting photo of a cross section from a damaged oil tanker car.  – RS]

Department of Transportation Ignores Congressional Deadline for Upgrading Safety Rules to Prevent Oil Train Disasters

PORTLAND, Ore.— Ignoring a congressional stipulation in the 2015 budget bill calling for new safety rules for oil trains by Jan. 15, federal transportation officials now say they won’t update the rules until May. Amid mounting concerns over the unchecked rise in shipments of highly volatile crude oil by train that has resulted in several explosive derailments and dozens of fatalities in the past two years, the federal Department of Transportation has yet to enact any on-the-ground safety improvements.

“Every day of delay is another day of putting people and the environment at risk of great harm,” said Jared Margolis, an attorney at the Center who focuses on the impacts of energy development on endangered species. “Continuing to allow these bomb trains to operate under current regulations is simply rolling the dice as to where and when the next disaster will occur.”

While several explosive oil-train accidents have occurred since the rulemaking process began in September 2013, the agency has failed to take any immediate action to resolve well-established concerns, such as the use of unsafe, puncture-prone DOT-111 tank cars.

“DOT-111 tank cars were never intended to transport these hazardous products,” said Margolis. “Failing to ban them immediately is a failure of the government’s duty to protect us from harm.”

Congress, understanding that rapid action is essential to protect the public, put a requirement in the 2015 budget bill for federal transportation officials to issue new safety rules by Jan. 15; but the industry has been fighting to delay and chip away at any efforts that would make moving oil by rail more expensive, regardless of safety concerns.

“Bomb trains are just one of many dangers posed by our continued dependence on fossil fuels,” Margolis said. “Ultimately, if we’re going to avoid dangerous oil-train derailments, as well as avoid the climate catastrophe that is currently being caused by our emissions, we must move away from these dangerous fossil fuels.”

– – – –

The Center for Biological Diversity is a national, nonprofit conservation organization with more than 800,000 members and online activists dedicated to the protection of endangered species and wild places.

Des Moines, Iowa: Action must be taken to reduce the hazards from railroad shipments of Bakken oil

Repost from The Des Moines Register

Action must be taken to reduce the hazards from railroad shipments of Bakken oil

By Carolyn Heising, November 15, 2014
Train3.jpg
(Photo: CANADIAN PRESS )

Now is the time to ask: Is the growing practice of using trains to carry highly-flammable crude oil from North Dakota’s Bakken shale field through communities in Iowa safe and even necessary?

Is it free of the hazards that led to the railroad accident in Quebec last year that killed 47 people and destroyed half of the town of Lac-Megantic? Or is it adding to the stress on the rail system?

Iowa is one of a number of states that have become a corridor for the shipment of Bakken crude over the past three years. Canadian Pacific Railway ships heavy loads of oil south through five eastern Iowa counties. BNSF Railway ships crude through four western Iowa counties. The oil is transported to refineries on the Gulf Coast or to pipeline connections.

No question about it, U.S. oil production is booming. The shale revolution is the dominant economic and geopolitical event of the past decade. Its effects have been transformative.

The United States is on the verge of becoming the world’s leading oil producer. OPEC is no longer the threat it once was. The growth in the U.S. energy industry has more than doubled in the past 10 years and is now worth about $1.2 trillion in gross product each year, contributing about 30 percent of the job growth for the nation, according to a study by the Perryman Group.

And the oil boom is likely to continue unless a catastrophic event brings it to a halt.

One reason environmental groups seem relatively calm about railroad shipment of crude oil is that they know what a minor event it is amid the chaos of fossil-fuel production and the dangerous and destabilizing chaos of climate change. A big part of the problem is the paradoxically positive economic effect of shale-oil production, which is loading the atmosphere with an enormous amount of global-warming carbon dioxide and methane.

What’s the answer?

Long-term we need to reduce the amount of oil we use in transportation by shifting to electric cars with batteries powered by renewable energy sources and nuclear power. Right now, action must be taken to reduce the hazards from railroad shipments of Bakken oil, which is much more flammable than conventional crude oil.

Freight railroads have gone from being a relic of the past to being a key mode of transport for oil supplies. Currently about two-thirds of North Dakota’s Bakken oil production is transported by rail. And more than 10 percent of the nation’s total oil production travels by rail.

In the last quarter of 2013, more than 71 million barrels of crude oil were shipped by rail, more than 10 times the volume of oil shipped in 2008. Over the past six months, there have been at least 10 large crude oil spills in the United States and Canada because of railroad accidents.

The U.S. Department of Transportation has responded by proposing speed limits along with a system for classifying the oil and new safety design standards for rail tanker cars.

The railroads say there have been relatively few rail accidents and not much loss of oil, considering the huge quantities of oil being shipped around the country. However, oil companies — which own the oil rail cars — are shipping much of the crude in outdated tank cars called DOT-111s that are vulnerable to puncture in a derailment.

The trains have captured the attention of local emergency responders by the amount of oil they carry — 100-plus tanker cars carrying up to 30,000 gallons of highly flammable fuel are not uncommon. In New Jersey, a key rail route, the trains pass within a few feet of homes and schools in highly populated areas.

Those who believe that slower train speeds alone are the answer should think again. A train hauling Bakken crude derailed in downtown Lynchburg, Va., a bustling city of 75,000 people. Three tanker cars tumbled into the James River. One of the tanker cars ruptured, spilling 30,000 gallons of crude.

Fortunately, no one was killed or injured. But local fire officials, who are accustomed to dealing with oil accidents on a much smaller scale, said the train was traveling within the speed limit. After the Quebec disaster, major rail companies agreed to reduce the maximum speed of oil trains to 40 miles per hour when they are within 10 miles of a major city. Lynchburg set its own speed limit of 25 mph. The train was going slower than 25 mph when it derailed.

Because a lot is riding on rail safety, oil companies should consider what other industries that use trains to haul hazardous cargoes have done to prevent accidents. For example, the nuclear industry uses specially-built freight cars to transport used nuclear-fuel assemblies from one nuclear plant to another. Since the 1960s, there have been thousands of trips involving the rail transport of nuclear waste in the United States, without a single serious accident.

That’s a stellar safety record which bodes well for the rail shipment of nuclear waste to a deep-geologic repository — and nuclear power’s increased use for electricity production.

Admittedly, the number of oil trains and the amount of hazardous cargo they carry is far greater than it is for nuclear companies and most other industries. But if oil companies continue to use puncture-prone tanker cars to haul highly-flammable Bakken crude in 100-car trains traveling at dangerous speeds, the ultimate consequences could be dire, and we will wind up asking ourselves why something more wasn’t done to prevent it.

THE AUTHOR:
CAROLYN D. HEISING, Ph.D., is a professor of industrial, mechanical and nuclear engineering at Iowa State University. Contact: cheising@iastate.edu.

 

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.”