Publications

Energy and Environment News

August 3, 2015

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Energy Policy.  The final version of the EPA’s Clean Power Plan, unveiled at the White House today, features several notable modifications compared with the initial draft regulation. Specifically, the rule contains slightly tighter emissions reductions requirements for power plants, a two-year extension for states to determine how they’ll achieve their targets, more ambitious renewable energy generation goals, and a slightly modified framework for setting the individualized reduction targets for each state.  WP

Coal.  Nick Butler of the Financial Times discusses popular rhetoric surrounding the “death of the coal industry” in light of data from the International Energy Agency that suggests exactly the opposite — global demand for coal is actually growing, and coal is likely to overtake oil as the world’s most substantial single source of energy as early as next year.  Butler asserts that this “new coal era” will likely prevail so long as there are no alternative low-cost energy sources available to price-sensitive consumers.  FT

Climate Change.  While the issue of climate change played little role in the 2012 presidential campaign, it is likely to cause substantive debate in 2016.  President Obama has taken aggressive actions on global warming policy — most recently, the Clean Power Plan — that will not unfold until the next president takes office, meaning the 2016 field will likely face more specific questions on climate change than any of their predecessors.  NY Times

Climate Change.  A study published today in the journal Nature Climate Change finds that most office buildings set temperatures based on a decades-old formula using the metabolic rates of men.   The authors, two male scientists, conclude that buildings should “reduce gender-discriminating bias in thermal comfort,” and note that setting temperatures at slightly warmer levels could help combat global warming.  NY Times

Energy and Environment News

July 31, 2015

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Oil.  Reuters reports that commercial stocks of crude oil across the United States reached an eight-year high of 490 million barrels early this year, and are poised to rise again at the end of the third quarter as U.S. refineries enter a periodic turn-around season.  Crude oil storage costs are expected to remain relatively subdued, however, due to a large increase in U.S. storage capacity — up nearly 19 percent since 2011. Reuters

Energy Policy.  The EPA’s Clean Power Plan rule — which is likely to be released on Monday — is expected to mostly maintain the ambitious emission-reduction targets as included in the draft proposal, but with a slightly longer time horizon and modest adjustments to state-based goals. Specifically, reduction goals for each state are expected to be altered based on emissions cuts made since 2005, as well as the types of power resources that are available but not yet deployed in each state.  WSJ

Energy Outlook.  U.S. generation of electricity fueled by natural gas exceeded coal-fired generation for the first time in May, according to data from the Energy Information Administration.  In the short-term, the EIA expects coal-fired generation to surpass natural gas-fired generation for the remainder of 2015; however, coal-fired generation could decline long-term as EPA regulations — like the Mercury and Air Toxics Standards governing coal plant retirements — take effect.  EIA

Solar.  Arizona is introducing new rules that will require firms offering solar panel leases to tell potential customers how much their systems will cost over the lifetime of their contracts.  Solar companies are calling the rules unnecessary, stating that “claims about consumer protection are camouflage for opposition to solar power among utilities and government officials.”  WSJ

Energy and Environment News

July 30, 2015

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Oil.  The Wall Street Journal reports that some smaller oil-and-gas companies are weathering the oil price plummet surprisingly well compared with big oil companies.  While larger firms are notoriously resilient to price volatility due to their large cash flows and easy access to credit, some smaller shale drillers are able to more quickly increase production, own some of the best oil and gas fields, and have proven better at extracting fuel at a lower cost.  WSJ

Energy Outlook.  Various reports from the U.S. Energy Information Administration have given conflicting estimates of U.S. oil production, leaving analysts and investors at a loss as to both the direction and duration of the oil price decline.   While the two series stem from different sources of underlying data — weekly series are based on a forecasting model and EIA’s monthly reports are based on reported output — discrepancies have remained relatively consistent with historical patterns. WSJ

Energy Policy.  Mexico has delayed auctioning off deepwater oil assets until September, following a failed attempt two weeks ago to open its oil sector to private investors.  The energy ministry is also planning to revisit corporate guarantee rules that the oil industry had viewed as being too onerous, and will now allow companies to make a second bid if their initial offer fails to meet a government-set minimum.  Financial Times

Climate Change.  Andrew Revkin of the New York Times voices concern about public reviews of scientific papers, particularly in light of a highly criticized study recently released on a pre-publication forum that predicts drastic climate change events.  Revkin asserts that while peer review is essential to progress in the scientific community, the “rapid-fire” publication of unsettled findings, particularly in highly visible outlets, undermines scientific credibility and detracts from the undisputed basics of climate change science.  NY Times

Energy and Environment News

July 29, 2015

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Energy Policy.  The Environmental Protection Agency (EPA) has slightly revised its proposal requiring drastic cuts in greenhouse-gas pollution from power plants.  Under this revised proposal, states will have an additional two years to begin phasing in pollution cuts and the agency will offer credits and other incentives to encourage a swifter shift to renewable energy.WP

Natural Gas.  The Energy Information Administration reports that industrial natural gas consumption has grown steadily since 2009, mostly because somewhat low natural gas prices have supported the use of natural gas as a feedstock for bulk chemical production. The trend is expected to continue over the short term, particularly as several new projects in the Gulf Coast region are scheduled to come online by 2018.  EIA

Energy Outlook.  Nick Butler of the Financial Times reviews the energy implications of China’s recent economic downturn in light of its role as the main driving force behind rising global demand over the last ten years.  He writes that several years of low growth in China will likely lead to (1) an extension of the existing surplus of supply over demand, (2) cancelled or postponed Chinese projects related to liquefied natural gas and nuclear energy, and (3) postponed international energy projects that rely on Chinese capital.  FT

Energy Policy.  Alastair Gale of the Wall Street Journal explains the fundamental differences between North Korea and Iran that make its nuclear arsenal non-negotiable.  Unlike Iran, North Korea is a nuclear state both in name and reality, already possessing an array of bombs and a commitment to increase its arsenal alongside economic growth; further, while Iran could be lured into negotiations by the prospect of lifted sanctions, western nations have little leverage over North Korea — a country cut off from international trade and normal diplomatic interaction.  WSJ

Energy & Environment News

July 28, 2015

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Climate Change.   A recent study finds a significantly higher likelihood of compound flooding events in major cities along the east and west coasts of the United States.  Compound flooding events — which occur with simultaneous heavy rainfall and a high storm surge — are thought to be linked with general global warming trends, and have more than doubled in the past 80 years.  Bloomberg

Nuclear.  The Wall Street Journal reports that the modular method of constructing nuclear reactors — a process designed to make the  construction swifter and cheaper — has run into costly delays that have called its viability into question.   Delays of three years or more have caused project costs to soar; coupled with the U.S. shale renaissance and downturn in global crude prices, nuclear power has become a less attractive investment option for the power industry. WSJ

Climate Change.  Michael Lynch asserts in Forbes that although the energy plan released by presidential hopeful Hillary Clinton has become a rallying point of her campaign and part of the political debate, it will never move the policy debate forward.  He argues that her renewable energy goals are more aspirational than practical, particularly as they ignore costs and falsely assume that mandates can force progress. Forbes

Energy Policy.  Jack Karsten and Darrell West of the Brookings Institute reviews the Obama administration’s announcement for a new initiative to increase solar access for Americans of all income levels.  The initiative will focus on shared solar projects that are designed to allow a larger demographic to utilize power generated by solar energy.  Brookings