![]() [ Image Credit : Lakeview Gusher : TotallyTopTen.com ] | So, the EIA say that the world has 10 years of shale oil resources which are technically recoverable. Woo hoo. We’ll pass over the question of why the American Department of Energy are guiding global energy policy, and why this glowing pronouncement looks just like the mass propaganda exercise for shale gas assessments that kicked off a few years ago, and move swiftly on to the numbers. |
| No, actually, not straight on to the numbers. It shouldn’t take a genius to work out the public relations strategy for promoting increasingly dirtier fossil fuels. First, they got us accustomed to the idea of shale gas, and claimed without much evidence, that it was as “clean” as Natural Gas, and far, far cleaner than coal. Data that challenges this myth continues to be collected. Meanwhile, now we are habituated to accepting without reason the risks of subsurface and ground water reservoir destruction by hydraulic fracturing, we should be pliable enough to accept the next step up – oil shale oil fracking. And then the sales team can move on to warm us up to cruddier unconventionals, like bitumen exhumed from tar sands, and mining unstable sub-sea clathrates.
Why do the oil and gas companies of the world and their trusted allies in the government energy departments so desperately want us to believe in the saving power of shale oil and gas ? Why is it necessary for them to pursue such an environmentally threatening course of product development ? Can it be that the leaders of the developed world and their industry experts recognise, but don’t want to admit to, Peak Oil, and its twin wraith, Peak Natural Gas, that will shadow it by about 10 to 15 years ? A little local context – UK oil production is falling like a stone – over the whole North Sea area. Various efforts have been made to stimulate new investment in exploration and discovery. The overall plan for the UK Continental Shelf has included opening up prospects via licence to smaller players in the hope of getting them to bet the farm, and if they come up trumps, permitted the larger oil and gas companies to snaffle up the small fry. But really, the flow of Brent crude oil is getting more expensive to guarantee. And it’s not just the North Sea – the inverse pyramid of the global oil futures market is teeteringly wobbly, even though Natural Gas Liquids (NGL) are now included in petroleum oil production figures. Cue panic stations at the Coalition (Oilition) Government offices – frantic rustling of review papers ahoy. To help them believe it’s not all over, riding into view from the stables of Propaganda Central, come the Six Horsemen of Unconventional Fossil Fuels : Tar Sands, Shale Gas, Shale Oil (Oil Shale Oil), Underground Coal Gasification, Coalbed Methane and Methane Hydrates. Shiny, happy projections of technically recoverable unconventional (night)mares are always lumped together, like we are able to suddenly open up the ground and it starts pouring out hydrocarbon goodies at industrial scale volumes. But no. All fossil fuel development is gradual – especially at the start of going after a particular resource. In the past, sometimes things started gushing or venting, but those days are gone. And any kind of natural pump out of the lithosphere is entirely absent for unconventional fossil fuels – it all takes energy and equipment to extract. And so we can expect trickles, not floods. So, will this prevent field depletion in any region ? No. It’s not going to put off Peak Oil and Peak Natural Gas – it literally cannot be mined fast enough. Even if there are 10 years of current oil production volumes that can be exploited via mining oil shale, it will come in dribs and drabs, maybe over the course of 50 to 100 years. It might prolong the Peak Oil plateau by a year or so – that’s barely a ripple. Unconventional gas might be more useful, but even this cannot delay the inevitable. For example, despite the USA shale gas “miracle”, as the country continues to pour resources and effort into industrialising public lands, American Peak Natural Gas is still likely to be only 5 years, or possibly scraping 10 years, behind Global Peak Natural Gas which will bite at approximately 2030 or 2035-ish. I suspect this is why EIA charts of future gas production never go out beyond 2045 or so :- Ask a mathematician to model growth in unconventional fossil fuels compared to the anticipated and actual decline in “traditional” fossil fuels, and ask if unconventionals will compensate. They will not. The practice for oil and gas companies is to try to maintain shareholder confidence by making sure they have a minimum of 10 years of what is known as Reserves-to-Production ratio or R/P. By showing they have at least a decade of discovered resources, they can sell their business as a viable investment. Announcing that the world has 10 years of shale oil it can exploit sounds like a healthy R/P, but in actual fact, there is no way this can be recovered in that time window. The very way that this story has been packaged suggests that we are being encouraged to believe that the fossil fuel industry are a healthy economic sector. Yet it is so facile to debunk that perspective. People, it’s time to divest your portfolios of oil and gas concerns. If they have to start selling us the wonders of bitumen and kerogen, the closing curtain cannot be far away from dropping. They think it’s not all over, but it so clearly must be. | |
Category: Shale Game
Renewable Gas : Research Parameters
“So what do you do ?” is a question I quite frequently have to answer, as I meet a lot of new people, in a lot of new audiences and settings, on a regular basis, as an integral part of my personal process of discovery.
My internal autocue answer has modified, evolved, over the years, but currently sounds a lot like this, “I have a couple of part-time jobs, office administration, really. I do a spot of weblogging in my spare time. But I’m also doing some research into the potential for Renewable Gas.” I then pause for roughly two seconds. “Renewable Gas ?” comes back the question.
“Yes,” I affirm in the positive, “Industrial-scale chemistry to produce gas fuels not dug up out of the ground. It is useful to plug the gaps in Renewable Electricity when the sun isn’t shining and the wind isn’t blowing.”
It’s not exactly an elevator pitch – I’m not really selling anything except a slight shift in the paradigm here. Renewable Energy. Renewable Electricity. Renewable Gas. Power and gas. Gas and power. It’s logical to want both to be as renewable and sustainable and as low carbon as possible.
Wait another two seconds. “…What, you mean, like Biogas ?” comes the question. “Well, yes, and also high volumes of non-biological gas that’s produced above the ground instead of from fossil fuels.”
The introductory chat normally fades after this exchange, as my respondent usually doesn’t have the necessary knowledge architecture to be able to make any sense of what my words represent. I think it’s fair to say I don’t win many chummy friends paradigm-bumping in this way, and some probably think I’m off the deep end psychologically, but hey, evolutionaries don’t ever have it easy.
And I also find that it’s not easy to find a place in the hierarchy of established learning for my particular “research problem”. Which school could I possibly join ? Which research council would adopt me ?
The first barrier to academic inclusion is that my research interest is clearly motivated by my concern about the risks of Climate Change – the degradation in the Earth’s life support systems from pumping unnaturally high volumes of carbon dioxide into the air – and Peak Fossil Fuels – the risks to humanity from a failure to grow subsurface energy production.
My research is therefore “applied” research, according to the OECD definition (OECD, 2002). It’s not motivated simply by the desire to know new things – it is not “pure” research – it has an end game in mind. My research is being done in order to answer a practical problem – how to decarbonise gaseous, gas phase, energy fuel production.
The second barrier to the ivory tower world that I have is that I do not have a technological contribution to make with this research. I am not inventing a chemical process that can “revolutionise” low carbon energy production. (I don’t believe in “revolutions” anyway. Nothing good ever happens by violent overthrow.) My research is not at the workbench end of engineering, so I am not going to work amongst a team of industrial technicians, so I am not going to produce a patent for clean energy that could save the world (or the economy).
My research is more about observing and reporting the advances of others, and how these pieces add up to a journey of significant change in the energy sector. I want to join the dots from studies at the leading edge of research, showing how this demonstrates widespread aspiration for clean energy, and document instances of new energy technology, systems and infrastructure. I want to witness to the internal motivation of thousands of people working with the goal of clean energy across a very wide range of disciplines.
This is positively positive; positivity, but it’s not positivism – it’s not pure, basic research. This piece of research could well influence people and events – it’s certainly already influencing me. It’s not hands-off neutral science. It interacts with its subjects. It intentionally intervenes.
Since I don’t have an actual physical contribution or product to offer, and since I fully expect it to “interfere” with current dogma and political realities, what I am doing will be hard to acknowledge.
This is not a PhD. But it is still a piece of philosophy, the love of wisdom that comes from the acquisition of knowledge.
I have been clear for some time about what I should be studying. Call it “internal drive” if you like. The aim is to support the development of universal renewable energy as a response to the risks of climate change and peak fossil fuel energy production. That makes me automatically biased. I view my research subject through the prism of hope. But I would contend that this is a perfectly valid belief, as I already know some of what is possible. I’m not starting from a foundational blank slate – many Renewable Gas processes are already in use throughout industry and the energy sector. The fascinating part is watching these functions coalesce into a coherent alternative to the mining of fossil fuels. For the internal industry energy production conversation is changing its track, its tune.
For a while now, “alternative” energy has been a minor vibration, a harmonic, accentuating the fossil fuel melody. As soon as the mid-noughties economic difficulties began to bite, greenwash activities were ditched, as oil and gas companies resorted to their core business. But the “green shoots” of green energy are still there, and every now and then, it is possible to see them poking up above the oilspill-desecrated soil. My role is to count blades and project bushes. Therefore my research is interpretivist or constructivist, although it is documenting positivist engineering progress. That’s quite hard for me to agree with, even though I reasoned it myself. I can still resist being labelled “post-positivist”, though, because I’m still interpreting reality not relativisms.
So now, on from research paradigm to research methodologies. I was trained to be an experimentalist scientist, so this is a departure for me. In this case, I am not going to seek to make a physical contribution to the field by being actively involved as an engineer in a research programme, partly because from what I’ve read so far, most of the potential is already documented and scoped.
I am going to use sociological methods, combining observation and rapportage, to and from various organisations through various media. Since I am involved in the narrative through my interactions with others, and I influence the outcomes of my research, this is partly auto-narrative, autoethnographic, ethnographic. An apt form for the research documentation is a weblog, as it is a longitudinal study, so discrete reports at time intervals are appropriate. Social media will be useful for joining the research to a potential audience, and Twitter has the kind of immediacy I prefer.
My observation will therefore be akin to journalism – engineering journalism, where the term “engineering” covers both technological and sociological aspects of change. A kind of energy futures “travelogue”, an observer of an emerging reality.
My research methods will include reading the science and interacting with engineers. I hope to do a study trip (or two) as a way of embedding myself into the new energy sector, with the explicit intention of ensuring I am not purely a commentator-observer. My research documentation will include a slow collation of my sources and references – a literature review that evolves over time.
My personal contribution will be slight, but hopefully set archaic and inefficient proposals for energy development based on “traditional” answers (such as nuclear power, “unconventional” fossil fuel production and Carbon Capture and Storage for coal) in high relief.
My research choices as they currently stand :-
1. I do not think I want to join an academic group.
2. I do not think I want to work for an energy engineering company.
3. I do not want to claim a discovery in an experimental sense. Indeed, I do not need to, as I am documenting discoveries and experiments.
4. I want to be clear about my bias towards promoting 100% renewable energy, as a desirable ambition, in response to the risks posed by climate change and peak fossil fuel production.
5. I need to admit that my research may influence outcomes, and so is applied rather than basic (Roll-Hansen, 2009).
References
OECD, 2002. “Proposed Standard Practice for Surveys on Research and Experimental Development”, Frascati Manual :-
https://browse.oecdbookshop.org/oecd/pdfs/free/9202081e.pdf
Roll-Hansen, 2009. “Why the distinction between basic (theoretical) and applied (practical) research is important in the politics of science”, Nils Roll-Hansen, Centre for the Philosophy of Natural and Social Science Contingency and Dissent in Science, Technical Report 04/09 :-
https://www2.lse.ac.uk/CPNSS/projects/CoreResearchProjects/ContingencyDissentInScience/DP/DPRoll-HansenOnline0409.pdf
Gas Strategy “Dangerous Gamble”
I had a most refreshing evening at Portcullis House in Westminster this evening – apart from the fact that the Macmillan Room was overheated, so you couldn’t possibly deduce that energy conservation is intended to be part of the UK Government’s strategy, making an example with the public sector.
Tonight was the launch of the Greenpeace and WWF-UK report “A Study into the Economics of Gas and Offshore Wind“, which was commissioned from Cambridge Econometrics.
Professor Paul Ekins got up to speak and actually had the gall to declare the Government’s “Gas Strategy” to be a “dangerous gamble”. It was at this point that I took heart again – there are still some sane, rational people in the “national energy conversation”, even though Ekins did admit that he wasn’t sure that the “Gas Strategy” was an actual thing. Oh, but it is. All eighty pages of it.
Today was not the first time Professor Paul Ekins called out the Government on this, apparently, although I didn’t have a recollection of seeing the the mention in New Scientist before today.
Other highlights of the evening were provided by Laura Sandys MP naming her political opposition Alan Whitehead MP as the leader of a “parliamentary roadshow” on Energy and Climate Change, and questioning the use of the term “energy efficiency”. “It’s energy waste, guys”, she corrected and said we should be using that term instead of the “effete word efficiency”, and encouraged the energy waste prevention industry to get the rest of us engaged with their products.
A chap from Scottish and Southern Energy (SSE) – I think it might have been Kevin MacLean – got up during questions from the floor, and almost begged for a long-term framework – a plan for renewable energy – a “binding framework” to encourage investment and “get costs down”.
It was pointed out during the evening, that, logically enough, that policy is important to energy futures, “if you have more certainty, you get more investment”. And there was encouragement to get Government Departments to think about this more. Yes, some subsidies and other forms of support are going to be needed to get the renewable energy revolution kickstarted, but “if [we] get benefits – isn’t that a price worth paying ?” The benefits outlined included potential for some small growth in the economy, around about 0.8% GDP, but good prospects for high value employment in depressed coastal towns where much of the offshore wind industry will host engineers, both for construction and ongoing operations and maintenance.
Laura Sandys MP was ashamed to say that she may no longer be able to claim she has the two largest offshore wind farms in her constituency – as progress is being made elsewhere.
Sarah Merrick from Vestas, the wind power engineering firm, emphasised that the economics of wind power stacks up and that it’s important to communicate this – despite the current dismissive media agenda – where she said it is important to defend the industry against certain media claims.
Lord Alan Haworth brought up the inevitable question of renewable energy intermittency – “days of dead calm and dark nights”. He raised the statistic that weather systems in Europe can cover 1,500 kilometres, so if wind power is down in the UK, it’s going to be down elsewhere in the EU electricity networks – the countries we have interconnectors with. What he didn’t elaborate on was this – just as the UK is beefing (and I don’t mean “up to 100% horsing about”) up its connections with the European electricity networks, so too, Europe as a whole is beginning to reach out with its networks to satellite countries. What that could mean is that even if wind-powered electrons in the UK take a dive, electrons could still appear in the power network from very far afield, and shunt power to the UK.
The speaker from the Crown Estate said that it was “sensible” to push for a good quantity of wind power – and that the report was a compelling argument. He regretted that it could not be guaranteed that the wind power-ed economy would necessarily have more of its supply chain in the UK – as various bodies have to comply with EU trade rules – but that there was a commitment in one part of the industry to 50% indigenous resourcing and employment (if I noted that down correctly).
Long-term policy clarity was espoused. Disappointment was expressed in the Coalition Government’s flip-flop about gas – emphasising the development of gas-powered electricity generation at the expense of projecting high levels of renewables (65%, says the report, is perfectly feasible) – and that it gave mixed messages – which weren’t helping investment decisions. Sarah Merrick repeated the E.On line that UK electricity should be “balanced by gas, not based on gas”, although she didn’t explain that they weren’t necessarily talking about wind power being the mainstay of new generation capacity.
It was generally agreed that David Cameron should lead and adopt the EU 2030 renewable energy targets – to enable billions of new confidence in the UK energy sector.
Not having a strong lead on renewable energy and energy waste reduction would be an “abdication of responsibility on the part of the policy-creating machine”. And, “even if shale gas does materialise”, it would not provide much stimulus.
Fossil Fuel Company Obligation
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I knew I knew her from somewhere, Ms Henrietta Lynch PhD, from the UCL Energy Institute. I had the feeling we’d sheltered together from the rain/police helicopters at a Climate Camp somewhere, but she was fairly convinced we’d crossed paths at the Frontline Club, where, if she was recalling correctly, I probably tried to pick an “difference of opinion” with somebody, which she would have remembered as more than a little awkward. |
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Why ? Because when I’m surrounded by smart people displaying self-confidence, I sometimes feel pushed to try to irritate them out of any complacency they may be harbouring. Niceness can give me itchy feet, or rather emotional hives, and I don’t see why others should feel settled when I feel all scratchy. So here we were at a Parliamentary event, and I was on my best behaviour, neither challenging nor remonstrative, but all the same, I felt the urge to engage Henrietta in disagreement. It was nothing personal, really. It was all about cognition, perception – worldviews, even. After my usual gauche preamble, I snuck in with a barbed gambit, “The United Nations climate change process has completely failed.” A shadow of anxiety crossed her brow. “Oh, I wouldn’t say that”, said Henrietta Lynch. She went on to recount for me the validity of the UN climate talks, and how much further we are because of the Kyoto Protocol. “Ruined by Article 12”, I said, “…the flexible mechanisms”. She said I shouldn’t underestimate the effort that had gone into getting everybody into the room to talk about a response to climate change. I said, it would be useful if the delegates to the climate talks had power of some kind – executive decision-making status. Henrietta insisted that delegates to the climate talks do indeed have authority. I said that the really significant players, the oil and gas production companies, were not at the climate talks, and that there would be no progress until they were. I said that the last time the UN really consulted the oil and gas companies was in the 1990s, and the outcome of that was proposals for carbon trading and Carbon Capture and Storage. Each year, I said, the adminstration of the climate talks did the diplomatic equivalent of passing round a busker’s hat to the national delegations, begging for commitments to carbon emissions reductions. Besides leading to squabbling and game-playing, the country representatives do not even have the practical means of achieving these changes. Instead, I said, the energy production companies should be summoned to the climate talks and given obligations – to decarbonise the energy resources they sell, and to increase their production of renewable and sustainable energy. I said that without that, there will be no progress. Oil and gas companies always point to energy demand as their get-out-of-jail-free card – they insist that while the world demands fossil fuel energy, they, the energy resource companies, are being responsible in producing it. Their economists say that consumer behaviour can be modified by pricing carbon dioxide emissions, and yet the vast majority of the energy they supply is full of embedded carbon – there is no greener choice. They know that it is impossible to set an economically significant carbon price in any form, that there are too many forces against it, and that any behavioural “signal” from carbon pricing is likely to be swallowed up by volatility in the prices of fossil fuels, and tax revenue demands. Most crucially, the oil and gas companies know that fossil fuels will remain essential for transport vehicles for some time, as it will be a long, hard struggle to replace all the drive engines in the world, and high volumes of transport are essential because of the globalised nature of trade. Oil and gas companies have made token handwaving gestures towards sustainability. BP has spent roughly 5% of its annual budget on renewable energy, although it’s dropped its solar power division, and has now dropped its cellulosic ethanol facility. BP says that it will “instead will focus on research and development“. Research and development into what, precisely ? Improved oil and gas drilling for harsh environmental conditions like the Arctic Ocean or sub-sea high depth, high pressure fields ? How many renewable energy pipedreams are exhausted ? BP are willing to take competitors to court over biobutanol, but even advanced techniques to produce this biofuel are not yet commercialised. So, the oil and gas majors do not appear to be serious about renewable energy, but are they also in denial about fossil fuels ? All business school graduates, anybody who has studied for an MBA or attended an economics course, they all come out with the mantra that technology will deliver, that innovation in technology will race ahead of the problems. Yet, as the rolling disasters of the multiple Fukushima Dai-ichi nuclear reactor accident and the continuing oil spill in the Gulf of Mexico from the blowout of the Horizon Deepwater drilling rig show, technological advancement ain’t what it used to be. Put not your faith in technology, for engineering may fail. For the oil and gas companies to be going after the development of unconventional fossil fuel resources is an unspoken, tacit admission of failure – not only of holding a bold vision of change, but also a demonstration of the failure of being able to increase production from discoveries of more conventional petroleum and Natural Gas. It is true that oil and gas exploration has improved, and that technology to drill for oil and gas has improved, but it could be said that the halting pace of technological advancement means that the growth in fossil fuel exploitation is not strong enough to meet projected demand. Technology does not always make things more efficient – the basic fossil fuel resources are getting much poorer, and perhaps scarcer. There is some evidence that global petroleum crude oil production rates have peaked, despite BP adding significant South American heavy oil fields to their annual Statistical Review of World Energy within the last few years. Some of the jitteriness in total production is down to geopolitical factors, like the chokehold that the United States has imposed on Iran via economic sanctions, and some of it is related to consumption patterns, but there is an element of resource failure, as indicated in this IMF report from last month :- “Over the past decade the world economy has experienced a persistent increase in oil prices. While part of this may have been due to continued rapid demand growth in emerging markets, stagnant supply also played a major role. Figure 1 shows the sequence of downward shifts in the trend growth rate of world oil production since the late 1960s. The latest trend break occurred in late 2005, when the average growth rate of 1.8 percent per annum of the 1981-2005 period could no longer be sustained, and production entered a fluctuating plateau that it has maintained ever since.” There is an increasing amount of evidence and projection of Peak Oil from diverse sources, so perhaps our attention should be drawn to it. If this type of analysis is to be trusted, regardless of whether the oil and gas companies pursue unconventional oil, change is inevitable. Bringing the oil and gas companies onto the world stage at the United Nations climate talks and demanding a reduction in fossil fuel production would be an straightford thing to make commitments to – as it is happening already. A huge facesaver in many respects – except that it does not answer the energy security question – how the world is going to be able to adapt to falling fossil fuel supplies. You see, besides Peak Oil, there are other peaks to contend with – it will not simply be a matter of exchanging one energy resource with another. Can the oil and gas companies hold on by selling us Natural Gas to replace failing oil ? Only if Natural Gas itself is not peaking. As the oil and gas companies drill deeper, more Natural Gas is likely to be found than petroleum oil, but because they are so often associated, Peak Oil is likely to be followed quite sharply by Peak Natural Gas. But does anybody in the oil and gas companies really know ? And if they did, would they be able to let their shareholders and world’s media know about it without their businesses crumbling ? What I want to know is : with all the skills of dialogue, collaboration, and facilitation that the human race has developed, why can Civil Society not engage the oil and gas companies in productive communication on these problems ? | |
Bosworth: “We are not going soft on coal”
![]() | At the annual Stop Climate Chaos coalition chin-wag on Friday 20th July 2012, I joined a table discussion led by Tony Bosworth of the environmental group Friends of the Earth.
He was laying out plans for a campaign focus on the risks and limitations of developing shale gas production in the United Kingdom. |
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During open questions, I put it to him that a focus on shale gas was liable to lay Friends of the Earth open to accusations of taking the pressure off high carbon fuels such as coal. He said that he had already encountered that accusation, but emphasised that the shale gas licencing rounds are frontier – policy is actively being decided and is still open to resolution on issues of contention. Placing emphasis on critiquing this fossil fuel resource and its exploitation is therefore timely and highly appropriate. But he wanted to be clear that “we are not going soft on coal”. I suggested that some experts are downplaying the risks of shale gas development because of the limitations of the resource – because shale gas could only contribute a few percent of national fuel provision, some think is is unwise to concentrate so much campaign effort on resisting its development. Bosworth countered this by saying that in the near future, the British Geological Survey are expected to revise their estimates of shale gas resource upwards by a very significant amount. He quoted one source as claiming that the UK could have around 55 years of shale gas resource within its borders. I showed some scepticism about this, posing the question “But can it be mined at any significant rate ?” It is a very common public relations trick to mention the total estimated size of a fossil fuel resource without also giving an estimate of how fast it can be extracted – leading to entirely mistaken conclusions about how useful a field, well or strata can be. Tony Bosworth said that shale gas reserve estimates keep changing all the time. The estimate for shale gas reserves in Poland have just been revised downwards, and the Marcellus Shale in the United States of America has also been re-assessed negatively. Bosworth said that although campaigners who are fighting shale gas development had found it useful to communicate the local environmental damage caused by shale gas extraction – such as ozone pollution, traffic noise, water pollution and extraction, landscape clearance – the best argument against shale gas production was the climate change emissions one. He said academics are still being recruited to fight on both sides of the question of whether the lifecycle emissions of shale gas are higher than for coal, but that it was becoming clear that so-called “fugitive emissions” – where gas unintentionally escapes from well works and pipeline networks – is the key global warming risk from shale gas. Opinion around the table was that the local environmental factors associated with shale gas extraction may be the way to draw the most attention from people – as these would be experienced personally. The problem with centring on this argument is that the main route of communication about these problems, the film Gasland, has been counter-spun by an industry-backed film “Truthland”. The Royal Society recently pronounced shale gas extraction acceptable as long as appropriate consideration was paid to following regulatory control, but even cautious development of unconventional fossil fuels does not answer the climate change implications. There is also the extreme irony that those who oppose wind farm development on the basis of “industrialisation of the landscape” can also be the same group of people who are in favour of the development of shale gas extraction – arguably doing more, and more permanently, to destroy the scenery by deforestation, water resource sequestration and toxification of soils, air and water. Tony Bosworth told the group about the Friends of the Earth campaign to encourage Local Authorities to declare themselves “Frack-Free Zones” (in a similar way to the “Fair Trade Towns” campaign that was previously so successful). He said that FoE would be asking supporters to demand that their local governments had a “No Fracking” policy in their Local Plans. It was suggested in the discussion group that with the current economic slowdown and austerity measures, that Local Authorities may not have the capacity to do this. Tony Bosworth suggested that in this case, it might be worth addressing the issue to church parish councils, who can be very powerful in local matters. It was pointed out that frequently, parish councils have been busy declaring themselves “Wind Free Zones”. It was considered that it would be ineffective to attempt to fight shale gas production on a site-by-site direct action basis as the amount of land in the UK that has already and will soon be licenced for shale gas exploration made this impossible. Besides which, people often had very low awareness of the potential problems of shale gas extraction and the disruption and pollution it could bring to their areas – so local support for direct action could be poor. One interesting suggestion was to create a map of the United Kingdom showing the watersheds where people get their tap supplies from superimposed on where the proposed shale gas exploration areas are likely to be – to allow people to understand that even if they live far away from shale gas production, their drinking water supplies could be impacted. In summary, there are several key public relations fronts on which the nascent shale gas “industry” are fighting. They have been trying to seed doubt on low estimates of actual shale gas production potential – they have been hyping the potentially massive “gamechanging” resource assessments, without clear evidence of how accessible these resources are. They have also been pouring scorn on the evidence of how much damage shale gas could do to local environments. And they have also been promoting academic research that could be seen to make their case that shale gas is less climate-damaging than other energy resources. Shale gas, and the issue of the risks of hydraulic fracturing for unconventional fossil fuels, is likely to remain a hot ecological topic. Putting effort into resisting its expansion is highly appropriate in the British context, where the industry is fledgeling, and those who are accusing Friends of the Earth and others of acting as “useful idiots” for the ambitions of the coal industry just haven’t taken a look at the wider implications. If shale gas is permitted dirty development rights, then that would open the gateway for even more polluting unconventional fossil fuel extraction, such as oil shale and underground coal gasification, and that really would be a major win for the coal industry. Friends of the Earth Briefing : Shale gas : energy solution or fracking hell ? | |
Tillerson Talks It Down
| Rex Tillerson, Chief Executive Officer of ExxonMobil, was recently invited to talk to the Council on Foreign Relations in the United States of America, as part of their series on CEOs.
His “on the record” briefing was uploaded to YouTube almost immediately as he made a number of very interesting comments. | |
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The thing most commented upon was his handwaving away the significance of climate change – a little change here, a little change over there and you could almost see the traditional magician’s fez here – shazam – nothing to worry about. In amongst all the online furore about this, was discussion of his continued Membership of the Church of Oil Cornucopia – he must have mentioned the word “technology” about seventy-five times in fifteen minutes. He clearly believes, as do his shareholders and management board, that his oil company can continue to get progressively more of the black stuff out of tar sands, oil shales or oil-bearing shale sediments and ever-tighter locked-in not naturally outgassing “natural” gas out of gas shales. At least in Northern America. As numerous commentators with a background in Economics have claimed, well, the price of oil is rising, and that creates a market for dirtier, harder-to-reach oil. Obviously. But missing from their Law of Supply and Demand is an analysis of how oil prices are actually determined in the real world. It’s certainly not a free market – there are numerous factors that control the price of the end-product, gasoline, not least state sponsorship of industries, either through direct subsidies, or through the support of dependent industries such as car manufacture. At least in North America. In the background, there is ongoing shuttle diplomacy between the major western economies and the assortment of regimes in the Middle East and North Africa (MENA) who still have the world’s largest pool of cleaner-ish petroleum under their feet. That, naturally, has an impact on supply and pricing : even though the strength of this bonding is not as tight-fast as it historically was, there appears to have been more of it since around 2005. Or at least, that’s when I first started monitoring it consciously. In addition to that, there are only a limited number of players in the oil industry. It is almost impossible to break into the sector without an obscene amount of capital, and exceedingly good buddy-type relationships with everybody else in the field – including sheikhs you formerly knew from when you attended specialty schools. So, no, the market in oil is not free in any sense. It is rigged – if you’ll excuse the pun. And then there’s foundational reasons why oil prices are artificial – and may not cause a boom in the “unconventional” production that Rex Tillerson is so excited about (in a rancher-down-the-farm kind of way). Oil is still fundamental to the global economy. In fact, the price of oil underpins most business, as oil is still dominant in the transportation of goods and commodities. Despite all the techno-wizardry, it is fundamentally more costly to drill for fossil fuels in shale, than from pressure wells where oil just gloops out of the ground if you stick a pipe in. It’s not the drilling that’s the major factor – so the technology is not the main driver of the cost. It’s the put-up, take-down costs – the costs of erecting the infrastructure for a well, or putting underground shale heating or fracturing equipment in place, and the cleaning up afterwards. Some of the technologies used to mine shales for oil use an incredible amount of water, and this all needs to be processed, unless you don’t mind desecrating large swathes of sub-tropical scenery. Or Canada. The price of oil production has a knock-on effect, including on the very markets that underpin oil production – so increasing oil prices have a cyclic forcing effect – upwards. It also has an impact on the prices of other essential things, such as food. One can see a parallel rise in the price of oil and the price of staple crops in the last few years – and the spiralling cost of grain wheat, rice and corn maize is not all down to climate change. Oil companies are in a quandary – they need to have higher oil prices to justify their unconventional oil operations – and they also need good relationships with governments, who know they cannot get re-elected if too many people blame them for rising costs of living. Plus, there’s the global security factor – several dozen countries already have economies close to bust because of the cost of oil imports. There are many reasons to keep oil prices depressed. Let’s ask that subtle, delicate question : why did Rex Tillerson espouse the attitudes he did when asked to go on the record ? Why belittle the effects of climate change ? The answer is partly to soothe the minds of American investors, (and MENA investors in America). If such a powerful player in the energy sector believes “we can adapt to that” about climate change, clearly behind-the-scenes he will be lobbying against excessive carbon pricing or taxation with the American federal administration. And why be so confident that technology can keep the oil flowing, and make up for the cracks appearing in conventional supply chains by a frenzy of shale works ? Well, logically, he’s got to encourage shareholder confidence, and also government confidence, that his industry can continue to deliver. But, let’s just surmise that before he was shunted onto the stage in June, he’d had a little pre-briefing with some government officials. They would be advising him to show high levels of satisfaction with unconventional oil production growth (in America) – after all, this would act against the rollercoaster of panic buying and panic selling in futures contracts that has hit the oil markets in recent months. So Rex Tillerson is pushed awkwardly to centre stage. Global production of oil ? No problem ! It’s at record highs (if we massage the data), and likely to get even better. At least in America. For a while. But hey, there’s no chance of oil production declining – it’s important to stress that. If everyone can be convinced to believe that there’s a veritable river of oil, for the forseeable future, then oil prices will stay reasonable, and we can all carry on as we are. Nothing will crash or burn. Except the climate. Rex Tillerson’s interview on global (American) oil production may have been used to achieve several propaganda aims – but the key one, it seems to me, was to talk down the price of oil. Of course, this will have a knock-on effect on how much unconventional oil is affordable and accessible, and maybe precipitate a real peak in oil production – just the thing he’s denying. But keeping the price of oil within a reasonable operating range is more important than Rex Tillerson’s impact on the American Presidential elections, or even Rex Tillerson’s legacy. | |
Gas in the UK (3)
![]() | Bursting the Nuclear Bubble
The UK Government appear to have seen the light about their, frankly, rubbish plan to covertly invest in (by hidden subsidies) a spanking new fleet of nuclear power reactors. Dogged by Electricite de France (EdF) as they have been, with Vincent de Rivaz continuing to proffer his begging bowl with outstretched pleading arms, it just might be that before the Energy Bill is finally announced – |
| when the Electricity Market Reform (EMR) dust has settled – that this new thinking will have become core solidity.
After all, there are plenty of reasons not to support new nuclear power – apart from the immense costs, the unclear costs, the lack of immediate power generation until at least a decade of concrete has been poured, and so on (and so forth). Gas is Laughing It appears that reality has bitten – and that the UK Government are pursuing gas. And they have decided not to hatch their eggs all in one basket. First of all, there’s a love-in with Statoil of Norway :- https://www.decc.gov.uk/en/content/cms/news/pn12_072/pn12_072.aspx Then, there’s the new “South Stream” commitment – the new Azerbaijan-European Union agreement, spelled out in a meeting of the European Centre for Energy and Resource Security (EUCERS) on 12th June at King’s College, London :- https://www.eucers.eu/2012/06/07/5-eucers-energy-talk-the-southern-gas-corridor-at-the-home-stretch/ Meanwhile, the “North Stream” gas pipeline is going to feed new Russian gas to Europe, too (since the old Siberian gas fields have become exhausted) :- https://www.bbc.co.uk/news/world-europe-15637244 And then there’s the amazing new truth – Natural Gas is a “green” energy, according to the European Union :- https://www.guardian.co.uk/environment/2012/may/29/gas-rebranded-green-energy-eu The UK will still be importing Liquified Natural Gas (LNG) from our good old friends in Qatar. Never mind the political interference in the nearby region and the human rights abuses, although NATO could be asked to put a stop to that if Europe needed to bust the regime in order for their energy companies to take ownership of the lovely, lovely gas. I mean, that’s what happened in Iraq and Libya, didn’t it ? A Fossilised Future So, despite all the green noises from the UK Government, the underlying strategy for the future (having batted away the nuclear buzzing insects around the corpse of British energy policy), is as Steve Browning, formerly of National Grid says – “gas and air” – with Big Wind power being the commercialisable renewable technology of choice. But not too much wind power – after all, the grid could become unstable, couldn’t it, with too much wind ? There are several problems with this. First, the commitment to fossil fuels – even Natural Gas with its half the emissions profile of coal – is a risky strategy, despite making sure that supplies are secure in the near term. The reasons for this are geological as well as geopolitical. Natural Gas will peak, and even the UK Government accepts that unconventional gas will not keep fossil gas going forever – even with the “18 years” ultimate recoverable from under Lancashire of shale gas (that’s “18 years” of current gas annual demand – but not all drilled at once – perhaps amounting to about 1.5% of current UK gas supply needs per year, stretched out over 40 years) , and the billion tonnes of coal that can be gasified from under the sea off the east coast of England. As long as Carbon Capture and Storage can work. Not only will Natural Gas peak and start to decline in the UK, it will also peak and decline in the various other foreign resources the UK is promising to buy. By simple logic – if the North Sea gas began depletion after only 30 years – and this was a top quality concentrated resource – how soon will poorer quality gas fields start depleting ? Whilst I recognise the sense in making Natural Gas the core strategy of UK energy provision over the next few decades, it can never be a final policy. First off, we need rather more in terms of realistic support for the deployment of renewable electricity. People complained about onshore wind turbines, so the UK Government got into offshore wind turbines, and now they’re complaining at how expensive they are. Then they botched solar photovoltaics policy. What a palaver ! Besides a much stronger direction for increasing renewable electricity, we need to recognise that renewable resources of gas need to be developed, starting now. We need to be ready to displace fossil gas as the fossil gas fields show signs of depletion and yet global demand and growth still show strength. We need to recognise that renewable gas development initiatives need consistent central government financial and enabling policy support. We need to recognise that even with the development of renewable gas, supplies of gas as a whole may yet peak – and so we need to acknowledge that we can never fully decarbonise the energy networks unless we find ways to apply energy conservation and energy efficiency into all energy use – and that this currently conflicts with the business model for most energy companies – to sell as much energy as possible. We need mandates for insulation, efficient fossil fuel use – such as Combined Heat and Power (CHP) and efficient grids, appliances and energy distribution. Since energy is mostly privately owned and privately administered, energy conservation is the hardest task of all, and this will take heroic efforts at all levels of society to implement. | |
Gas in the UK (2)
…Continued from https://www.joabbess.com/2012/06/12/gas-in-the-uk/
Questions from the floor
[Tony Glover]
…increasing electricification of heat and transport. I was interested in what Doug said about heat. [If energy conservation measures are significant and there is] a significant reduction in gas use for heat…interested in the Minister’s response.
[Terry ? (Member of PRASEG)]
I’m interested in gas that would need CCS [Carbon Capture and Storage] [in future] …[since there would be no restriction there would be an] incentive to build new gas in next few years away from CCS-usable infrastructure. Maybe encouraging gas stations over next few years to be built in view of CCS.
[ ? ]
[There have been mentions of the] Gas [generation] Strategy and gas storage. Is it your intention to have both in the Energy Bill ? [Need to improve investor confidence.]
[Charles Hendry MP] I’m more confident than Doug on CHP…[in respect of energy conservation we will begin to increase our use of] CHP [Combined Heat and Power], geothermal energy, don’t need District Heating. I think we’ll see more people switch to electric heating. The likely pricing on gas will mean people have to look at other sources – such as localised heat storage, intelligent ways to produce hot water and heat in their homes […for example, a technology to store heat for several days…] The first [new gas power] plants will be where they are already consented – where originally coal plants – need to have identified in advance – no new plant is consented unless…We’ve asked Ofgem to ask re securing gas supplies. If we can stretch out the tail of North Sea gas – can stretch it out 30 – 40 years […] technology […] Centrica / Norway […] develop contracts […] Is there a role for strategic storage [Centrica asking] […] Buying and selling at the wrong price (like the gold) [widespread chuckling in the room]. Some of it may not need legislation. Gas Strategy will be published before the Energy Bill.
[David Cox] Get very nervous about gas storage. Don’t think there’s a need to put financial incentives in place to increase gas storage. We think the hybrid gas market is successful – a market and regulatory framework – [gas storage incentives] could damage.
[Doug Parr] I’m not downbeat because I want to be downbeat on heat. [Of all the solutions proposed none of them show] scaleability, deliverability. I’d love that to come true – but will it ? […] Heat pumps ? Biogas is great but is it really going to replace all that gas ? If we’re going to be using gas we need to make the best use of it […] Issues around new plant / replacement – all about reducing risks no exposing ourselves to [it] – security of supply, climate risks, issues about placement [siting of new plant]. If CCS can really be made to work – it’s a no-brainer – do we want all that carbon dioxide in the atmosphere or … ? Our entire policy becomes dependent on a technology that hasn’t even been demonstrated. Other technologies that people thought were great – years later they still haven’t arrived [for example, rooftop wind turbines]. If we say CCS is the only way it’s going to work – what’s Plan B ? We are going to use [fossil fuels] – should not become wholly dependent on technology not yet demonstrated.
[Alan Whitehead] Perhaps people should be asked – which would you prefer – a CHP / DH [Combined Heat and Power / District Heating] plant in the valley here, or a couple of wind turbines on that hill ? That would [shake things up].
Questions from the floor
[ X ? ] See […] as the ultimate destination. Most important – gas can be made zero carbon – not pie in the sky. 1. Start contributions of carbon-neutral gas and 2. will need far less if [we act] like Japan – force installation of microCHP. Their aim is to do same as for washing machines [bring prices down – make widely available for the home]. MicroCHP [with] heat pumps – reduction as good as decarbonising gas or electricity. But can also decarbonise gas.
[ X ? ] The Minister mentioned the importance of CHP but recently dropped […] mandate. If CHP so important what measures is the Government taking to ensure its installation ?
[ X ? ] Electricity is a rubbish fuel for heating buildings – very peaky load – need something cheap to store, cheap to […]. Fits very well with forcing down demand. Where we’re getting our gas from. At the moment our waste is being incinerated. For a cheap additional cost, where currently incinerating we can do anaerobic digestion [AD], producing a fungible asset – the gas – can gradually decarbonise our grid.
[ Thomas Grier ? ] …a decision [?] of London – CHP in London over the next few years. If we want to use electricity for heat, we need to reinforce the electricity grid [by 60% to 90% ?] In rural situations – use electrical heating. In urban, use decarbonised energy. [This model projection] shows the gas grid disappearing – it will collapse at some point if all we have on the gas grid is cooking.
[ X ? ] …[encouraged CHP then a few days later] stood up then said all support [removed ?] for CHP next year. A Heat Strategy that said there is enormous [scope / potential] for CHP. We want to see gas, we want to see efficiency. Are we moving towards […] without it they won’t build it.
[David Cox] Microgeneration – couldn’t get it down economically. Reliability [issues]. Full supporter of biogas – AD got a contribution to make – but never more than 5% – no matter how much [we crack it]. Electricity is not very good for heating – but how to we decarbonise the heat sector ? Always been an advocate of CHP. Government need to do more incentivising of that.
[Charles Hendry MP] Innovation and invention […] Government can’t support all emerging technologies. Best brains around the world [are working on] how we move fundamentally in a low carbon direction. On the waste hierarchy – burning of waste should be the final stage – finding a better use for it. [I visited] the biggest AD plant in Europe in Manchester – biogas and electricity generation. We are seeing Local Authorities taking a more constructive long-term view on how to manage waste. CHP – we all want to see more of it – to what extent does it need support ? That depends on whether new build – building a community around it. [By comparison, urban retrofitting is probably too expensive] Iceland [took the decision and] retrofitted almost every home – I’m now more convinced than before. What is the right level of subsidy and what makes good economic case ?
[Doug] We do keep missing opportunities. [For example in Wales, Milford Haven, the new Combined Cycle Gas Turbine at the Liquified Natural Gas (LNG) refinery to process the gas] should have been CHP. I am enthusiastic about lots of heat technologies [but the same questions/issues apply] scaleability and deliverability. District heating [DH] – an infrastructure asset ! [Can change priorities about what gets built – for example in Denmark (?)] they’re building large-scale solar farms to top up the DH. In the Treasury’s infrastructure plan [see DH could be…] Heat is the poor relation in energy debate. Other networks have been identified in the National Policy Statements (NPS) – but not heat.
[ Leonie Green, Renewable Energy Association ] [I must] defend heat pumps. In Sweden 90% of new builds [hav e heat pumps ?] – heat pump efficiency is a function of the energy-efficiency of the building […] Just on AD – National Grid report said it could provide 50% [of the nation’s supply. Our members think] that’s a bit too high – we think 25%. My question is really about the benefits. We are hearing anxiety about costs, but it’s piecemeal on benefits. We’ve been strong on jobs, balance of trade, exports [all benefits of renewable energy investment and deployment]. Pleased to see DECC put out [report from] Oxford Economics [on the] wider economic benefits. How can we get more and more balance in reports. [An example] Deutsche Bank renewable generation opportunities.
[ ? ] We would also support more than 5% from renewable gas – also about hydrogen – we used to do it when it was town gas – why not again ? As regards injecting biomethane/biogas from AD into the National Grid [last year ? to this year ?] 130 enquiries to connect AD to our network – none have progressed. Please sort these [registrations] out.
[ ? ] Minister, we’re not expecting you to fund all technologies – we need some logic – especially with transport. The Government doesn’t recognise the difference between Renewable Natural Gas if used in transport and fossil fuels. Would be simple – a tax on gas if used in a vehicle. What’s the problem over […] ?
[Colin Snape, University of Nottingham] We are looking at reducing the costs of carbon capture – we have a section of PhDs… One other gas source not mentioned – gas from underground gasification of coal [UCG]. In UK […] 2 billion tonners of coal – slightly offshore – on the energy coast of the UK – where all the action is on CCS – obviously UCG needs to be coupled with CCS to be carbon neutral. Would [be operational] in a very short time period […incentives…]. Significant proportion of UK needs.
[ ? ] What is the purpose of the Gas Strategy ? Shale gas isn’t a miracle. The “Golden Age of Gas” [report by the International Energy Agency (IEA)] doesn’t mean cheap gas, because [it will be put to] lots of uses. Renewable electricity and nuclear are not going to come until the 2020s. How do we avoid building loads of gas generation that is not necessary after that time ? What’s the role of mothballing (relatively cheap to bring CCGT out of mothballs comparing to build new). No sign of reduction in electricity demand reduction – therefore there will be high gas use.
[ Doug Parr ] On UCG, the IEA had two scenarios in the “Golden Age of Gas” – both took us over 3.5 degrees Celsius [in additional global warming]. Even if there is unconventional gas sources, still a huge danger of going down the road of unrestrained gas use. What is the alternative ? We should not end up becoming dependent on gas. Should not build gas to fill a short-term hole – they will lobby for their own interests – to keep open.
[ David Cox ] CCGTs won’t be built without guarantees greater than 20 years. Also renewable energy might not provide in the way that we hope. The CCC report – what caused the rise in energy prices ? The wholesale gas price – not renewable energy, green policies. However, that was slightly dishonest – the counter-factual was […] renewable energy significantly still more expensive than fossil fuel there. Until we can get costs of renewable energy down to the prices of fossil fuels… [The industry] don’t give the impression [they will build] on the basis of short-term need. Gas isn’t clean, I admit that […] CCS – that will work.
[Charles Hendry MP] A lot comes back to a need for a balanced approach – carbon targets and security of supply. If you haven’t sorted out security of supply, the electorate will not give permission to go low carbon. Gas is a hedging fuel currently but don’t know where costs going over time. As a politician, I like pipelines – know where it’s going (not like LNG, where there was limited use of new LNG import plant). If we want Scandinavian gas, we need security of demand to build the new pipeline. How we deal with issues of biomethane – in 2 years – need to make more progress. Some of these [techologies] will be gamechangers – some, look back in a couple of years… [Need a] permissive framework to allow a lot of ideas and technologies. There is no source of energy that hasn’t required subsidy in early days. Fanciful to suggest new forms of energy can come through without support. The letters we get [from the public, from constituents] are on vehicle fuel costs, not how much their gas bill went up last winter…
Official end of meeting
A gaggle of people gathered in the hallway to discuss some items further.
The Electricity Market Reform (EMR) was generally criticised – as it contains measures likely to specifically benefit nuclear power. Electricite de France was identified as very involved. The Government had said “no nuclear subsidy”, but the EMR measures are equivalent to hidden subsidies.
The Levy Cap was criticised as it would disturb investor confidence – if several nuclear reactors came on-stream in 10 years time, in the same year, they would eat up the whole subsidy budget for that year – and other technologies would lose out. If was felt that a number of the EMR proposals were “blunt instruments”, not overcoming shortcomings of former levies and subsidies.
Although the EMR was designed to addressed economic fears, it wasn’t assisting with financing risks – if anything it was adding to them. Rates of return have to be guaranteed for loans to be made – chopping and changing subsidies doesn’t allow for that.
Leonie Green said that the REA members don’t like the Premium Feed-in-Tariff (FiT). She also said later that they were not pleased about the cuts in support for AD.
Since my personal interest is in using Renewable Gas of various sources (including Biomethane / Biogas) to displace Natural Gas from the gas grid, I spoke with various people about this informally (including a woman I met on the train on my way home – who really got the argument about decarbonising gas by developing Renewable Gas, and using that to store excess renewable electricity, and use it as backup for renewable electricity. Although she did say “it won’t be done if it won’t confer benefits”.). One of the key elements for developing Renewable Gas is to create a stream of Renewable Hydrogen, produced in a range of ways. Somebody asked me what the driver would be for progress in Renewable Hydrogen production ? I said the “pull” was supposed to be the fabled “Hydrogen Economy” for transport, but that this isn’t really happening. I said the need for increased sources of renewably-sourced gas will become progressively clear – perhaps within a decade.
One of the persons present talked about how they think the Government is now coming out of the nuclear dream world – how only a few of the proposed new reactors will get built in the next decade – and how the Government now need to come up with a more realistic scenario.
It was mentioned that is appears that the Biogas technologies are going to have the same treatment as solar photovoltaics – some sort of subsidies at the start – which get cut away far too early – before it can stand on its own two feet. This was said to be the result of an underlying theory that only a fixed amount of money should be used on launching each new technology – with no thought to continuity problems – especially as regards investment and loan structures.
Gas in the UK
“The role of gas in the UK’s energy mix” 12 June 2012 17:30 – 18:30, Committee Room 5, House of Commons with speakers Minister of State for Energy and Climate Change, Charles Hendry; David Cox, Managing Director of The Gas Forum and Dr Doug Parr, Chief Scientist of Greenpeace UK. Chaired by Dr Alan Whitehead MP, Chairman of PRASEG, the Parliamentary Renewable and Sustainable Energy Group, who called the seminar : https://www.praseg.org.uk/the-role-of-gas-in-the-uk-energy-mix/
UNVERIFIED COMMENTS : Please check with the speakers to confirm their statements and do not take this account as verbatim.
[Alan Whitehead MP] Questions about gas. Will it be business as usual ? If not – too “much” gas ? What does that mean for Climate Change targets ? New gas generation – about 11 gigawatts coming on-stream in the next 5 years – “grandfathered” (no obligations to control emissions with Carbon Capture and Storage (CCS)) throughout the life of the power plant – does produce questions about Climate Change targets – CCS may change that landscape in the medium-term future. Question about emergence of biogas into system [which would bring] a down-trend in emissions.
[David Cox] The wonderful future that gas offers us. Have to look at whole low carbon [framework] – gas has a place. Not a war [between gas and renewable energy technologies]. Both needed [in the advance towards carbon-free] energy. Without gas, not going to make it. Make sure we can afford it. Gas has a role. The recent [International Energy Agency] IEA report on the “Golden Age of Gas” – tight gas, shale gas – has doubled reserves. Nobody knows for sure – there’s so much there. Perhaps 250 years of gas – no shortage of gas [although some of it is in] sensitive areas. Getting it from those areas with political problems. [There are uncertainties about] unconventional gas. There is plenty around the world – “pretty good”. Gas is not at war with renewables. Gas isn’t just a transition fuel – it’s a destination fuel. Got to prove CCS technically. If we can do that gas becomes a destination fuel. Can decarbonise not only electricity. Heat. Heat pumps won’t do it on their own. Sorry. [Gas can help decarbonise] transport – electrify the transport system – that’s what we believe is possible. Hope the Government will support CCS.
[Doug Parr] First and foremost – we are not going to eliminate gas from energy systems any time soon – don’t think of gas as a destination – I would warn against policy that gas is allowed to become the default and become too dependent on gas. A lot of policy on gas – but only over part of the energy system [electricity]. Heat is going to rely on gas fo a long time. If follow the Committee on Climate Change (CCC) logic – [heat is a] strategic sector – to getting away from carbon emissions. If gas is going to be what gets us out of energy problems – the so-called “trilemma” of decarbonisation, security [of supply] and cost. [New gas power plants amount to] 11 gigawatts [GW] over the next 5 years – 120 TWh – a quarter of current gas [still in service] out to 2030. If one take CCC target of 50 gC / KWh (grammes of carbon per kilowatt hour). Look at CCGT [Combined Cycle Gas Turbine gas generation power plant in operation] – that target is a fraction of [current] unabated [CCGT] – not that great. Any substantial role of gas has to make some pretty strong assumptions about CCS. Remember, this is not yet working – let us not have a decarbonisation policy relying heavily on CCS when not at the first stage. The CCC have warned that grandfathering of the 11 GW new generation – emit without restrictions – and issue until 2045. Can’t say gas is somehow the answer to decarbonisation issues. In media – don’t [swallow] the media froth. [As for] security of supply – already going to be quite reliant on gas for heating for quite some time – hard to see [otherwise]. Heavily reliant on imports – around 80%. Where do we import our gas from ? Qatar and Norway mostly. The former head of the Navy argued [recently] changing gas prices is the single most significant factor. DECC [UK Government Department of Energy and Climate Change] recent report on price shock. REA [Renewable Energy Association] said that just by hitting renewables targets would displace £60 billion of imports. [As for] shale gas : both Ofgem research and Deutsche Bank reports that shale gas is very unlikely to help on security [of supply] issue. Citing American example [of shale gas exploitation] is just irrelevant. [So the UK Government must be] supporting gas because of costs ? The biggest rise in consumer bills is from fossil fuel [price increases]. Not renewable energy, not green energy [measures] – it’s the rise in the wholesale gas price. Is that going to stabilise and go down ? Not according to Merrill Lynch and DECC – [strong] prices for Liquid Natural Gas (LNG) and therefore for gas [as a whole, will stay]. Clearly we will be using gas – as [electricity grid load] balancing. What I’m railing about is that gas doesn’t get us out of our energy trilemma. Gas will not [save us]. We know we can deliver through renewable energy, wind – acceleration of new technologies [such as tidal] – perhaps CCS will work, who knows ? and efficient use for example Combined Heat and Power (CHP) on industrial scale. If we are using gas we are using at it’s most efficient.
[Alan Whitehead MP] [recounts tale of how he got into trouble with Twitter commentators when he insisted the recent rise in consumer energy bills was due to the rise in the cost of wholesale gas, not green energy measures] [To Charles Hendry] I’m sure you don’t Tweet.
[Charles Hendry MP] No. absolutely not. I have enough people telling me I’m wrong without… We have to look at the role of gas. It would a dereliction of Government not to look at the role of gas going forward. […mentions developments in gas production…] seismic profiling [enabling better understanding of gas fields] horizontal drilling [improving access to complex fields]. [As for] unconventional gas – the IEA “Golden Age of Gas” – but don’t assume [it’s that simple – supply may go up but] demand for gas is going to go up dramatically. Japan – major user of LNG and diesel. Consequence of Germany’s decision to close nuclear power plants – will use much more gas. China…India…growth rate – massive growth of demand. Anticipate new resources to be found – Iraq for example – but cannot assume [what has happened in the United States of America with the development of shale gas where gas prices are now] a quarter [of what they were] – a massive boost to America – will they allow this to be exported to Asia – or use cheap gas to [relocating] industry back to the USA ? Have to look at implications for us. Reasons why shale gas is different in Europe – legal [situation] – the mineral rights [in the US, these can be acquired from underneath a landowner]. Don’t have the same commercial drives as farmers in the US. The reason why gas prices collapsed in the US and not here – if we saw a price benefit here, it would go out through the [gas] interconnectors [to neighbouring countries]. For real practical reasons won’t see shal gas develop [significantly] here. [It is a] global gamechanger – but… The US is fundamentally shifting from coal to gas – with the implications for emissions. The change from coal to gas was a major driver in European control of emissions [in the 1990s] […] Investment…technology…practical constraints. EdF [Electricite de France] will go ahead with new nuclear [by the end of the year ?] but the plant will not come online until the end of the decade. Major renewable energy resources also in 2020s [not immediate] – the cost of offshore wind power is two times that of onshore. We’re saying to industry to reduce by 40% by the end of the decade – otherwise simply not affordable. Contributions from tidal, CCS ahead. It’s going to be very end of this decade to see if CCS can work. Worrying gap [in power generation between now and next decade]. Megawatts (MW) of coal being turned off in 2015. [Coal plants are] getting through their [legally permitted] generating hours too quickly. By 2023, the only nuclear plant still operational will be Sizewell B. We have to have more gas in the mix. As we look towards more intermittent resources (renewables), gas is an important source of backup. [Will have/need] a capacity mechanism to ensure [optimisation when] mismatch between supply and demand – auction to include gas – could be [North Sea] gas, gas from the interconnectors [from abroad] or demand side response [demand reduction] – a more sophisticated capacity mechanism than historical. I’m more optimistic about CCS [than Doug Parr]. CCS is a requirement. It is something we have to deliver – no scenario I’ve seen where we’re going [to be] using less coal, oil and gas than today. [Out to 2035] our basic needs [will still rely for a good percentage on] fossil fuels. Broadening CCS [demonstration competition] out to pre- and post-combustion on coal – [expand] to gas. Can be applied to gas as well as coal. I think CCS is a fundamentally critical part of this equation. If so, can see gas as a destination fuel. The GW of gas being built in the next few years [some questions] – currently gas is being mothballed [some plants being shut down effectively putting them into disuse] because of [fuel] prices. I consented more in gas and also wind on- and offshore last year. But that gas is not being built. If we want that gas built we need a more coherent strategy. Look at what is necessary to encourage that gas – and carbon emissions [reduction] alongside. EPS [Emissions Performance Standard] […] to stop unabated coal – limit 450 gC / kWh – significant proportion of plant would need CCS. But ddin’t want to disincentivise gas. Have also said a point where CCS on gas will be necessary. But if we had people building gas now and then 15, 20 years later they would have to fit very expensive [CCS] equipment… Volume of gas coming forward meets our supply issues. Over the next few years, grandfathering. If see enough gas coming through can change the mechanism in due course. [We will be] responding officially to the CCC in Autumn. Need to [fully] decarbonise electricity in the course of the 2030s if we want to meet out climate change objectives. I think that [the] reality [is that] gas and important element. Nuclear is important. Want to see significant amount of renewable energy and what Doug is calling for – significant commitment to [energy use] efficiency in the country. [We should concentrate particularly on] energy efficiency.
The meeting then opened up to questions from the floor… To Be Continued
The UK’s Energy Crisis
What annoys me most about the Solar Power Feed-in Tariff saga is not that the UK Government suddenly pulled the plug on the full rate for household-sized systems, or that they set the cut-off date before they finished their consultation, or even that that the Department of Energy and Climate Change (DECC) dragged out a legal appeal process.
Despite the truly pitiful sight of a Minister of State being sent out to bat with a miniaturised teaspoon to defend the indefensible decision, and despite the energy industry stooges that have placements inside DECC and are clearly affecting policy, no, the thing that really gets me is the focus on budgets instead of targets.
Here’s a summary from the Government’s own “long term trend” figures for energy consumption in Great Britain :-
Nobody can swear to me that the last few years are not just a glitch caused by economic instabilities, and that the re-localisation of manufacture in future in a recovering economy will not push this demand continually higher according to the trendline.
What are we using to supply this energy ? Here’s a summary :-
Despite the near exponential rise in renewable energy, it’s starting from a small base. The increase in energy consumption is being satisfied by a sharp rise in the supply of Natural Gas – something which the UK is producing increasingly less of these days. And for those who think that shale gas production would help, no, only a few percent of demand could be satisfied. This is an import-led energy supply, and the trend should ring alarm bells, but clearly doesn’t even tickle the ears of the average person in the street.
Electricity demand growth remains healthy, despite problems with unreliable supply from nuclear electricity (refered to as “outages” in the DECC Digest of UK Energy Statistics (DUKES) reports) :-
Now, in the future, with an envisioned massive rise in renewable energy, higher electricity use would be reasonable, as long as other energy consumption reduced. But the growth in electricity consumption charted here is not people driving more electric cars or using electric heating instead of Natural Gas-fired comfort. This is higher consumption, pure and simple, not “energy switching” over to electricity.
As an aside – the sum total of these figures indicates that the nation as a whole is not engaged in significant energy conservation, despite decades of campaigning.
All these trends add up to a very slight loss in dependency on fossil fuels for the UK’s energy :-
This is the critical trend. North Sea oil and Natural Gas production is falling like a large rock, and no amount of technological advancement and re-stimulating the drilling sector is turning this around. This means that without a rapid decrease in fossil fuel dependency, the United Kingdom is going to start haemorrhaging wealth.
Goodbye, First World.
This is why is it essential to ramp up renewable energy deployment by whatever means at our disposal.
Greg Barker MP bleating about keeping to budgets is not helping.
Another Meeting I Will Not Be Attending
![]() | What appears to be a serious event is due to take place at the Energy Institute in London on 6th December 2011, “Peak Oil – assessing the economic impact on global oil supply“.
Dr Roger Bentley, author of a seminal 2002 paper on the subject, research that spawned hundreds of related learned articles, will be speaking. But the event organisers have also invited one Dr Matt Ridley, the self-styled “rational optimist”, and member of the Global Warming Policy Foundation, and this, I’m afraid, prevents me from attending. |
Ridley projects a view that many probably find comforting – as his headline in The Times of 1st October 2011 summarises – “Cheer up. The world’s not going to the dogs”. He has been captured speaking at a TEDx event pouring scorn on “environmental” scare stories of the past, but not bothering to delve or dig into how mankind has actually gone out of its way to act on past crises and prevent catastrophes. And now he’s thrown in his lot with the shale gas miracle men, writing a report with a foreword by Freeman Dyson, one of the world’s most balanced individuals. How much uncorroborated optimism can one man contain ? | |
Renewable Gas : Balanced Power
People who know very little about renewable and sustainable energy continue to buzz like flies in the popular media. They don’t believe wind power economics can work. They don’t believe solar power can provide a genuine contribution to grid capacity. They don’t think marine power can achieve. They would rather have nuclear power. They would rather have environmentally-destructive new oil and gas drilling. They have friends and influence in Government. They have financial clout that enables them to keep disseminating their inaccuracies.
It’s time to ditch the pundits, innuendo artists and insinuators and consult the engineers.
Renewable Gas can stand in the gap – when the wind doesn’t blow or the sun doesn’t shine and the grid is not sufficiently widespread and interconnected enough to be able to call on other wind or solar elsewhere.
Renewable Gas is the storing of biologically-derived and renewably-created gases, and the improving of the gases, so that they can be used on-demand in a number of applications.
This field of chemical engineering is so old, yet so new, it doesn’t have a fixed language yet.
However, the basic chemistry, apart from dealing with contaminants, is very straight-forward.
When demand for grid electricity is low, renewable electricity can be used to make renewable hydrogen, from water via electrolysis, and in other ways. Underused grid capacity can also be used to methanate carbon-rich biologically-derived gas feedstocks – raising its stored energy.
Then when demand for grid electricity is high, renewable gas can be used to generate power, to fill the gap. And the flue gases from this combustion can be fed back into the gas storage.
Renewable gas can also be biorefined into vehicle fuels and other useful chemicals. This application is likely to be the most important in the short term.
In the medium-term, the power generation balance that renewable gas can offer is likely to be the most important application.
Researchers are working on optimising all aspects of renewable gas and biorefinery, and businesses are already starting to push towards production.
We can have a fully renewable energy future, and we will.

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