2nd November 2008

Browsing at a newsagent on a mainline railway station…

The question on the front cover of Fortune magazine, Europe edition Number 20, November 2008, already on the stands is “Who Pays for The Bailout ? You do, of course”. Of course, as this Credit Crunch means Bailout argument plays out, the issue of Energy and Climate Change is lost. But the question should be all about how to create a new green economy. Who pays for the re-powering ?

A sign of the greening times – another story teaser on the Fortune magazine advises “10 Green Stocks to Own Now”, and the front of the Independent on Sunday quotes Obama claiming that Energy is his “number one priority” in his bid for presidential election, with his “Apollo” project :-

“Obama’s green jobs revolution : Democrat will lead effort to curb world’s dependence on oil; Plans to create five million new posts in clean energy projects : By Geoffrey Lean in San Francisco and Leonard Doyle in Washington : Sunday, 2 November 2008 : Obama has pledged to create five million new ‘green collar jobs’ if elected : Barack Obama is promising a $150 billion “Apollo project” to bring jobs and energy security to the US through a new alternative energy economy, if his final push for votes brings victory in the presidential election on Tuesday. “That’s going to be my number one priority when I get into office,” Mr Obama has said of his “green recovery” plans. Making his arguments in a radio address yesterday, the Democratic favourite promised: “If you give me your vote on Tuesday, we won’t just win this election. Together, we will change this country and change the world.”…”

Meanwhile…Gordon Brown and Ed Miliband (and Peter Mandelson) get off the plane in Saudi and beg for investment into green energy in the UK :-

“Gulf petrodollars help UK go green : Brown calls for Saudis to give more cash to IMF : Gaby Hinsliff, political editor : The Observer, Sunday 2 November 2008 : The fight against climate change will get an unexpected boost today from oil-rich Gulf states which will pledge to invest some of their petrodollar profits in British green energy projects. The surging oil price over the past year has left parts of the Middle East awash with cash as the rest of the world is squeezed by the credit crunch, making Arab royals some of the few active investors worldwide. The Gulf states have enjoyed a $1.4 trillion windfall from higher oil prices since 2003. Ed Miliband, the Climate Change Secretary, arrived in Saudi Arabia yesterday with Gordon Brown at the start of a tour of the region. He said some of that cash would now ‘help our firms reap the rewards from going low carbon and providing green energy to thousands of families’ under a so-called ‘green Gulf deal’ to be announced today…”

But that’s not the real reason why they are there. Ostensibly, the delegation’s serious business is about asking Saudi and other Arab oil states to contribute more towards the International Monetary Fund :-

“Gordon Brown in the Middle East : Brown hopeful of Saudi cash for IMF : Allegra Stratton in Riyadh, guardian.co.uk, Sunday 2 November 2008 15.30 GMT : Gordon Brown said today he was hopeful of success in his attempts to persuade dollar-rich Gulf states to prop up ailing national economies through a massive injection of capital into the International Monetary Fund (IMF). The prime minister spent three hours in one-to-one talks with Saudi Arabia’s King Abdullah, trying to persuade the monarch to invest in a revamped IMF. On the first leg of a four-day visit to the Middle East, and aiming to secure hundreds of billions of dollars for the fund, Brown called off a planned dinner with business leaders accompanying him so as to allow maximum negotiating time with the Saudi king. The IMF currently has around $250 billion in its emergency reserves but there are fears that, with Hungary, Iceland and Ukraine having already sought assistance and more nations expected to follow, the sum might not be sufficient. Brown hopes to persuade Gulf leaders to use some of the estimated $1 trillion they have made from high oil prices in the last few years to boost the reserves, indicating that he would like to see the current sum increased by “hundreds of billions” of dollars. The prime minister said following the talks that he was hopeful of having secured Saudi backing…”

But hang on, what’s this ? :-

“…Brown, who is accompanied by a high-level trade delegation seeking Gulf investment, including the CEOs of BP and Shell…”

What on earth are BP (formerly British Petroleum) and (Royal Dutch) Shell doing in a delegation to the Arab states begging for the IMF charity fund and green energy investment ? Is it that BP and Shell won’t pay for green energy and it’s too hard to ask the British people to pay extra tax, so they’re coming to the Arab countries for a green energy bail-in ? What is going on here ? If OPEC countries are all in the “Axis of Evil”, and no foreign oil and gas companies can get a toehold, why are BP and Shell in the government delegation to Saudi ?

Paying for new energy systems can be expensive. The European Union Emisssions Trading Scheme is saying they want 100% of carbon emissions auctioned by 2013 to pay for larger projects – Carbon Capture and Storage and new Nuclear Power. However, the costly deadweight “white elephant in the room” is not nuclear power, but dead wells.

Are they all talking about Peak Oil in the OPEC Gulf, and proposing business opportunities to the King of the House of Saud to offset the Middle East’s future total loss of business as the wells empty – offering them compensation in the form of green investment deals ? Asking the Saudis to join the green energy race now and get ahead ?

BP and Shell have benefited from the recent rise in the price of oil, profiting even as the oil price has hit millions and created impoverishment. But they’re going to have to spend a very large amount on exploration for new oil and gas from now on. So why is there still resistance to spending more on renewables ? Can BP and Shell ever be convinced to go green ? Would a barrel load of toxic news work ? No. BP and Shell can’t pay for green energy because they have to maintain the profits of their shareholders. Pensions are going to be bad enough without forcing major “British” oil companies to pay for such things as bioethanol, algae biodiesel, solar panels and wind farms.

Action to tackle climate change must be a “tight shadow” on Peak Oil and its fall – tighter than the 9.1% depletion of the largest wells projected by the International Energy Agency (IEA) To reverse the oil decline, and more so to take action on climate change, investment is required. Banks are becoming owned by oil-rich nations, but this is simply a natural outcome of poor financial regulation that led to the Credit Crunch. However, it doesn’t mean that the future will be oil and gas necessarily. This new layer of ownership of financial bodies is not significant, as it will not seriously impact the greening of energy, if people are serious about it.

What is of value here is not banking but energy itself, which underpins the entire economy. The scenario is this : Saudi Arabia will not admit in public that it’s going down because of “Peak Oil”. They would prefer to keep up the revenue, but they’re not “engineering” a reduction of supply. It’s reducing anyway.

From their perspective, allowing supplies to weaken, by not doing any new investment into raising production, would be protecting their reserves to sell in future. A good strategy – even more so as prices rise against losses of supply but strong demand (even despite the blooming recession).

I figure that what BP and Shell are doing in the Middle East is making the case to the major oil-producing states to keep on pumping.

I guess that what Gordon Brown is doing is making the Saudis an offer they can’t refuse – either the major western states will implement measures to control oil prices which would make OPEC lose revenue, or the Saudis can underwrite the global bailout.

This mission is not about green energy investment. It’s about keeping the oil flowing.

http://www.foxnews.com/on-air/glenn-beck/transcript/beck-americas-energy-under-attack

Thank you, Coal.

Thank you for the asthma, the mercury, the mountain top removal, the birth defects, the mine fatalities, the grossly inefficient electricity networks, the lack of investment in electricity networks, the smog, the heat, and above all, thank you for giving us Glenn Beck, on a platter – this is so much fun to watch !

Steve McIntyre, probably the only person on the planet who might grumble about the cost of Barack Obama’s suit rather than his all-American wars, has suddenly become an expert energy engineer, it seems.

This month, he’s taking aim at the Intergovernmental Panel on Climate Change, or IPCC, regarding their special report on Renewable Energy, questioning the contributions of an engineer, Sven Teske, and basing his objections on the fact that Teske works for Greenpeace :-

http://climateaudit.org/2011/06/14/ipcc-wg3-and-the-greenpeace-karaoke/
http://climateaudit.org/2011/06/16/responses-from-ipcc-srren/
http://climateaudit.org/2011/06/18/lynas-questions/
http://climateaudit.org/2011/06/20/the-carbon-brief-a-first-coat-of-whitewash/

Flinging any kind of pseudo-mud he can construe at the IPCC is not Steve’s newest of tricks, but it still seems to be effective, going by the dance of the close cohort of the very few remaining loyal climate change “sceptics” who get published in widely-read media :-

http://www.theregister.co.uk/2011/06/18/lynas_greenpeace_ipcc_money_go_round/
http://www.theregister.co.uk/2011/06/18/lynas_greenpeace_ipcc_money_go_round/page2.html
http://www.nationalpost.com/opinion/columnists/Lost+desmog/4968296/story.html
http://thegwpf.org/the-climate-record/3231-ipcc-used-greenpeace-campaigner-to-write-impartial-report-on-renewable-energy.html
http://blogs.telegraph.co.uk/news/jamesdelingpole/100092809/greenpeace-and-the-ipcc-time-surely-for-a-climate-masada/

He even pulled the turtleneck over Andrew Revkin’s eyes for a while :-
http://dotearth.blogs.nytimes.com/2011/06/15/a-deeper-look-at-an-energy-analysis-raises-big-questions/

And Mark Lynas has been joining in, in his own nit-picky way :-
http://www.marklynas.org/2011/06/new-ipcc-error-renewables-report-conclusion-was-dictated-by-greenpeace/
http://www.marklynas.org/2011/06/questions-the-ipcc-must-now-urgently-answer/
http://www.marklynas.org/2011/06/new-allegation-of-ipcc-renewables-report-bias/
http://www.marklynas.org/2011/06/the-ipcc-renewables-controversy-where-have-we-got-to/

The few comebacks have been bordering on the satirical, or briefly factual, with the exception of Carbon Brief’s very measured analysis of the IPCC’s communication expertise :-
http://www.carbonbrief.org/blog/2011/06/the-ipcc-and-the-srren-report
http://www.jeremyleggett.net/2011/06/mark-lynas-questions-hether-greenpeace-expert-should-be-an-ipcc-author/
http://thinkprogress.org/romm/2011/06/16/246665/ipcc-renewables-2/

Leo Hickman’s being bravely evenhanded :-
http://www.guardian.co.uk/environment/blog/2011/jun/21/peace-talks-climate-change-sceptics

It’s not a total surprise that New Scientist and The Economist wade in deep :-
http://www.newscientist.com/article/dn20583-conflict-of-interest-claimed-for-ipcc-energy-report.html
http://www.economist.com/blogs/babbage/2011/06/ipcc-and-greenpeace

Sven Teske’s explanation has not been accepted by Mark Lynas, although it seems really OK to me :-
http://www.greenpeace.org/international/en/news/Blogs/climate/the-ipccs-renewables-report-finds-a-clean-ene/blog/35322

The Daily Mail digs out the usual emotive terms :-
http://www.dailymail.co.uk/news/article-2004440/Leading-climate-change-group-used-Greenpeace-campaigner-write-impartial-report-renewable-energy.html?ito=feeds-newsxml

Steve McIntyre is playing out the “Princess and the Pea” narrative, complaining about a few wrunkles in a process of international collaboration, and distracting us from looking at the actual report, which I would encourage you most warmly to do :-

http://srren.ipcc-wg3.de/
http://srren.ipcc-wg3.de/report

It is full of the most incredible case studies and intriguing engineering discoveries. It makes cautious, conservative calculations, and looks at conditions and caveats in a very transparent manner. For a work that relied on the contributions of over 120 people and managed to compose a document so helpful and illuminating, I’d say it’s a work of profound achievement, and should be read in every school and university. Four scenarios from a collection of 164 are studied in depth to compare their strengths and weaknesses – and the conclusion of the SRREN team is that :-

http://srren.ipcc-wg3.de/press/content/potential-of-renewable-energy-outlined-report-by-the-intergovernmental-panel-on-climate-change

“Close to 80 percent of the world‘s energy supply could be met by renewables by mid-century if backed by the right enabling public policies…”

Somehow, though, Steve McIntyre believes otherwise. I suppose it’s not completely fair to berate him, because he might be suffering from a delusion, given that he seems to believe his opinion trumps that of over a hundred of the world’s authorities on what is possible in Renewable Energy technologies; and I’m the last person who would criticise somebody for having a mental illness.

I’m wondering, however, since he often sticks his nose up at IPCC matters, and since the world is suffering from stress in the supply of fossil fuels, whether he has a “Plan Beak” for the world’s energy crisis ?

Come on Steve McIntyre, tell us what your plan is to provide energy for humanity. Don’t tell me you believe that Nuclear Power is the way forward. I just won’t believe you, and a large number of the citizens of the UK, France, Germany, Japan, Italy and help us all, even Switzerland, would share my doubts.

As everybody can clearly see from the Columbia University graph at the top of this post, the IPCC are right about emissions, and the global warming data shows they’re right about that too. Why should they be wrong about Renewable Energy ?

I mean, I detect there are a few issues with the way the IPCC organises itself, and the style of its reports, but hey, where’s the viable alternative ? I don’t see one, anywhere. And don’t go pointing me to groups with pretensions.

We may just have to get used to complex international bodies, formed of complex, intelligent people, and learn how to read their complex, intricate reports with care and attention. And not get distracted by grumpy semi-retired mining consultants.

Green Jobs ! Green Energy !

From: jo abbess
To: XXXXXXXXXXXXXXXXXXXXXXXXXX, BP
Date: XXXXXXXXXXXXXXXXXXXXXXX

Dear XXXXXXXXXXXXXXXXXXXXXXX,

Thank you for your time on the phone earlier this week.

Last year in February, I was part of a small group of students that were grateful to have the benefit of an interview with XXXXXXXXXXXXXXXXXXXXX at BP, then XXXXXXXXXXXXXXXXXXXXXXXXXXXX.

I am taking my research into the energy sector further for my MSc dissertation, and I would be grateful if I could have an interview with somebody in an engineering department who has an overview of the energy sector.

It doesn’t need to be a face to face interview, as I am quite willing to telephone people. It only needs to be 20 minutes in duration.

I have prepared a short list of open questions that I am considering would be suitable for my enquiry into the future of energy resources and technologies (see below).

I hope that you can point me in the direction of somebody within BP who would like to offer their thoughts.

Thank you.

…

Questions with a UK focus

1. What do you think have been the best developments in the energy sector in the last 20 years ?

(What do you think are the most significant developments in the energy sector in the last 20 years ?)

2. What positive or negative changes in energy production and supply will take place over the next 2 decades ?

(What do you think will be the most important developments in the energy sector in the next 20 years ?)

3. Which energy resources and technologies look the most troubled ?

4. Which energy resources and technologies look the most promising ?

5. Does the UK face an energy supply gap ? Can we keep the lights on ?

From: jo abbess
To: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Date: XXXXXXXXXXXXXXXXXXXXXx

Hi XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX,

Thank you for your helpful reply.

What I am trying to achieve is a real conversation with somebody within BP who has a general overview of the energy industry – sadly, the annual Statistical Review and company report do not answer the scoping questions I have.

I am offering an opportunity for BP to voice a vision, on record, of how the company intend to navigate future change, using parameters that are not generally the basis of shareholder reports.

I am sure that somebody in the organisation has a view on the onset of Peak Oil and Peak Natural Gas – from conventional resources, and that there must be aims and objectives for BP to manage this issue.

I am convinced that BP has planned for a range of policy scenarios concerning climate change – both mitigation and adaptation measures.

I am also sure that somebody in BP has a plan for navigating political problems, such as the probability of continued unrest in the Middle East, with the accompanying likelihood of compromised oil and gas production.

In addition, I am sure that somebody from BP can speak on the company’s behalf about how it will deal with the threats of economic turbulence and still be able to meet the needs of shareholders.

Some sample questions that could take in part of this landscape :-

1. Do you think that we are heading for a period of global energy insecurity ? What are the factors that could cause this ? What are the timelines ? Who are the key players ?

2. What is aiding or blocking the transition from fossil fuels to clean energy ? What technologies look promising ? What technologies are stuck in the lab ?

3.. How do you think we will manage the transition to clean energy ? How will the economic actors be able to diversify out of fossil fuels and still retain balance in the world markets – and not disappoint their investors ?

4. Do you think that people generally are aware of the issues of energy security ?

It would be excellent if you could find somebody to speak to these or similar questions in a short interview with me. I can do interviews by telephone at very low cost, and I would e-mail the transcript for verification before using in my research report.

My central question is “are we ready for energy change ?” – major transition in the resourcing and use of energy – and I am seeking a full range of opinion on that question.

If you could point me towards somebody who is willing and able to speak for 20 minutes on the phone on energy security issues, I would be highly grateful.

Thank you.

…

Jubilant scenes across New York as mass flag-waving breaks out to celebrate.

Are they congratulating Wills and Kate ? The Americans probably reviewed the TV ratings for the right royal wedding and decided they too needed something to boost the morale of the nation. So they went and killed Osama Bin Laden.

Or not. He could have been dead for days, because the plans were made weeks ago. Was he killed pre-emptively ahead of the collective British regal marital hysteria ? Why did the young newlyweds ship out to an “undisclosed location” instead of jetting off on honeymoon, pronto ? Was there a “credible threat” made on their lives in retaliation at the death of the Al Qaeda spiritual leader ? Or was an unarmed Osama bin Laden murdered by a surprise military attack at night at his family home after an Al Qaeda threat was made on Prince William and his new wife ? You have to admit the timing of the news is interesting…

Bin Laden “buried at sea” ? Yeah, right. If his body was dumped at sea, that could cause considerable affront to his supporters, but at least it would cover the fact that he had been dead for well over 24 hours, which would be an even worse affront according to Muslim burial traditions. If the body was no longer fresh enough for a photo shoot a hypothetical burial is necessary, one that can obscure the facts from international cameras and mobile phones. The Americans sent in a hit squad rather than dropping bombs from drones. Why go in person ? To make sure they have video and photographic evidence of the killing to show to Hillary Clinton and Barack Hussein Obama a few days later ? And by what moral and legal justification did Barack Hussein Obama issue a kill order instead of capturing Osama bin Laden for trial for his alleged crimes against humanity ?

Meanwhile, back in Libya, several other funerals have taken place after a NATO bombing raid in Tripoli, at night, targeting the Gaddafi family home, the victims of which included a son and some grandchildren of Colonel Gaddafi (and possibly even Muammar Gaddafi, the Brother Leader, himself, was killed too, although we don’t know that for sure yet) and sparked massive protest, which may lead to foreign troops “on the ground” to “finish off” the war – maybe disguised by gas masks, or under cover of enacting war crimes warrants. Various world leaders have declared they want to see the end of the current regime in Libya. NATO might be used to protect energy supplies. It could get a whole lot nastier now. What had Libya and Libya’s leader done to deserve this ? Declare energy independence ? :-

http://www.ft.com/cms/s/0/67d1d02a-5314-11e0-86e6-00144feab49a.html#axzz1LD4mxQ1w
“Oil companies fear nationalisation in Libya : By Sylvia Pfeifer and Javier Blas in London : Published: March 20 2011 : Western oil companies operating in Libya have privately warned that their operations in the country may be nationalised if Colonel Muammer Gaddafi’s regime prevails. Executives, speaking on condition of anonymity because of the rapidly moving situation, believe their companies could be targeted, especially if their home countries are taking part in air strikes against Mr Gaddafi. Allied forces from France, the UK and the US on Saturday unleashed a series of strikes against military targets in Libya…”

Osama bin Laden was arguing for a end to foreign interference in Arab territories, which naturally would have involved reasserting national control of oil and gas resources, and retaining wealth in the countries of origin. And many western strategists believe that this “threat” should never be allowed to happen. Osama bin Laden, in poor health, had probably negotiated a deal where he was allowed to live peacefully in retirement, but things changed, and the American Navy stormed his house at night and killed him and attacked his family. If the United States go after a sick man, and nearly murder his wife just because she happened to be in the way when they shot him (no taking prisoners, then), what will they do now ? Take out Pakistan for harbouring him (even though they agreed to host Osama bin Laden’s retirement in the first place) ? Or cut international aid intended for disaster relief in Pakistan ? It is now a distinct possibility that by encouraging universal joy over the death of the “sinner” bin Laden, a great piece of media entertainment, the world audience is being warmed up for overpowering violence against Libya, whipped up by American hawks. The deal breakers. All the wrong actions for all the wrong reasons.

And what did Barack Hussein Obama say ? “No Americans were harmed“, whilst “bringing Osama bin Laden to justice…Justice has been done“. Internal moral compasses may flinch at these words. Justice normally involves a court of law, not the President of the United States watching an “enemy of America” being liquidated on a secure webcam. Two victims of extensive and enduring negative American propaganda have been attacked with full military might whilst tucked up in bed at home. Who’s next ? Julian Assange ? Hugo Chavez ? Some other man made out to be a demon ? And while Ed Miliband, Labour Party leader in the United Kingdom says the world is now a “safer place”, Americans are being issued with travel advisories.

http://energy.senate.gov/public/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=262810b2-adf1-4929-9d3c-1376fa7f26f5&Month=3&Year=2011&Party=0

America’s hooked on oil, but more drilling in the Gulf of Mexico won’t drive fuel prices back down, as Republican political activists try to claim :-

http://thehill.com/blogs/e2-wire/677-e2-wire/150003-top-house-republican-to-introduce-drilling-bill

http://moratorium.offshoremarine.org/omsa/

US production is only a small percentage of world supplies – and this won’t increase significantly even with more homeland drilling.

Gasoline prices are going to remain vulnerable to global events, global markets and global nerves.

The oil production companies that operate in the American market are quite happy to maintain higher prices for fuels. Think about it.

If the Americans want to fill up their tanks less expensively, what’s really needed is to consume less oil – and that means using smaller, lighter cars with higher fuel efficiency.

The documentary evidence shows that America’s business interests often outweigh its political progress. Yet it’s perhaps more concerning that, increasingly, corporate America is at risk of damaging good environmental governance.

With all the talk of free markets in international trade, the Coalition Government in the United Kingdom has felt the pressure to open up the back door to American energy businesses, whose highly-paid sales representatives in slick suits want us to buy their dirty energy projects – just take a look at the upcoming UK Energy Bill and its proposals for Electricity Market Reform.

American companies seem poised to sweep in and take all our public non-subsidy “support” for building new nuclear power plants. Viewers of a sensitive political disposition should look away now as this is a Wikileak :-

http://www.telegraph.co.uk/news/wikileaks-files/london-wikileaks/8305283/UK-RAMPING-UP-ON-NUCLEAR-POWER-BUT-CHALLENGES-REMAIN.html

The country that brought you the engineering industry that brought you the giant Gulf of Mexico giant oil spill now wants to bring you unsafe deepwater drilling in Britain’s Continental Shelf – and the UK’s new Energy Bill would let them do that without demonstrating any learning from the BP April 2010 fiasco :-

http://act.greenpeace.org.uk/ea-campaign/…

There’s lots of talk in the energy sector and the financial markets about the American shale gas miracle “gamechanger” and how it can be replicated in Europe and across the world, and not enough discussion about the environmental dangers :-

http://www.tyndall.ac.uk/shalegasreport

http://www.bbc.co.uk/news/science-environment-12190810

It’s good to talk about local environmental damage from “unconventional” gas, but what’s not being discussed so widely is that these “new” resources of Natural Gas aren’t really very green, and neither are the “traditional” resources – in some cases they’re not much better than coal :-

http://www.scientificamerican.com/article.cfm?id=climate-benefits-natural-gas-overstated

http://www.propublica.org/article/natural-gas-and-coal-pollution-gap-in-doubt

http://www.huffingtonpost.com/2011/01/25/natural-gas-clean_n_813750.html

We know that the Americans always seek to protect the interests of American-owned businesses – and we know they do that for the best of intentions – to keep America wealthy (except it’s really only a few people in America that have any wealth, but anyway…)

Yet I think there should be a limit to how far we have to bend over backwards to accommodate their needs for economic recovery.

To export all their dirty energy technology to Europe is just not helpful, and I think we should say no, no, no.