Today, we’re hosting a Clean Energy Investment Summit at the White House, where we’re announcing $4 billion in independent commitments by major foundations, institutional investors, and others to fund innovative solutions to help fight climate change, including technologies with breakthrough potential to reduce carbon pollution
We’re headed to the L-NGV2015 conference in San Diego, where natural gas will be in the spotlight.
Natural gas has been getting a lot of attention lately, because the United States is producing so much of it. As Jude Clemente wrote in Forbes earlier this month:
U.S. proven natural gas reserves continue to soar to record highs. We now have some 360 Tcf [trillion cubic feet] of proven gas in the ground, recoverable under current market conditions, experiencing increases of 5-8% per year. Driven by the Marcellus shale play in the Appalachian Basin, Pennsylvania and West Virginia have registered the largest gains, with both state reserve totals more than quadrupling since 2010. In fact, Pennsylvania and West Virginia have accounted for about 60% of new U.S. gas reserves since 2008, although mighty Texas continues to plug along, upping its reserves by 20% since then.
The surge has occurred despite a steady decline in prices. Henry Hub spot prices are about $2.80 per million British Thermal Units, down from an average of $8.86 per MMBtu in 2008, as Clemente notes.
NG is running about 70 percent lower in price than the equivalent amount of oil, even with oil’s precipitous drop from last summer. That’s what makes natural gas an attractive alternative for transportation fuel.
Much of the discussion at L-NGV2015 will center on compressed natural gas (CNG) and liquefied natural gas (LNG), which is being used in municipal fleets (official vehicles and transit buses) and industrial trucking (delivery, garbage-hauling) around the country. These fuels not only cost less than gasoline and diesel, they burn much cleaner, which is better for air quality and the environment.
Natural gas can also be converted into alcohol fuels to run in the cars, trucks and SUVs driven by the rest of us.
NG is “very, very cheap, and we need to take advantage of that,” Fuel Freedom co-founder and chairman Yossie Hollander said recently during a discussion about energy in Israel. “The greatest opportunity is a transportation one. Using a natural-gas product, whether compressed natural gas, liquid natural gas, ethanol from natural gas – you can make ethanol from natural gas, and another fuel called methanol – if we use all of them in transportation to replace oil, this will replace a $3 trillion industry around the world.”
We’ll be presenting more about this topic at L-NGV2015. Check out our Twitter feed (@fuelfreedomnow) for regular updates.
There is a movement afoot to slow the wheels of modern life. A highly emotional, anti-industrial fringe is urging institutions to “divest” — or sell investments in the oil, gas, and coal industries. Their goal is to keep dense, reliable, affordable energy in the ground and out of our lives.
A new Republican bill introduced Tuesday would completely repeal the federal mandate to blend ethanol into the nation’s gasoline supply.
Oil’s dramatic price changes seem baffling. In mid-2014, crude prices averaged around $100 a barrel; now, they’re gyrating between $50 and $60. Over the same period, U.S. gasoline prices have dipped from more than $3.50 a gallon to around $2.50. With the world economy slowly recovering, why have prices collapsed?
Sen. Kevin de Leon, president pro tem of the California state Senate, is not only confident a climate-change bill will pass the Legislature and be signed into law. He fully expects the rest of the nation to follow California’s lead.
“Leadership does matter. That’s why we will not wait,” de Leon said last week during an energy discussion in Sacramento.
The lawmaker went on:
“We have never waited for Washington, D.C. To be honest with you, while Washington, D.C., dithers on this issue, between members who are negative, climate-change deniers altogether when the empirical data is there … We’re not waiting for that. We’re not gonna wait for Washington, D.C. We never have; we never will. We are the state of California, and we are the leaders nationally. And they’re gonna have to follow, and they will eventually follow what is done here.”
Senate Bill 350 passed the Senate on June 3 and now goes to the Assembly. If it’s approved there and signed by Gov. Jerry Brown, the state will have achieved an ambitious plan that could have a huge impact on transportation and power generation in the state, and could affect the state’s economy long into the future.
The bill sets three goals to be achieved by 2030: cut petroleum use by 50 percent; increase the amount of renewables in electricity generation by 50 percent; and boost efficiency of buildings by 50 percent.
To discuss the measure, the group Diesel Technology Forum sponsored a gathering called “50/50/50 by 2030: Transportation and the California Energy Challenge. Carl Cannon, the Washington bureau chief of the website Real Clear Politics, moderated the event and interviewed de Leon.
De Leon said that if SB350 passes, it will save consumers money from “better fuel efficiencies” as well as reduce smog. “Air pollution knows no boundaries of political ideologies,” he said. The Democrat called the network of freeways in his Los Angeles district a “serpent that chokes the air out of a young child’s lungs.”
The bill was among several related to climate change passed by the Democrat-controlled Legislature. “These measures together represent the most far-reaching measures dealing with climate change, not in the history of California or the history of the country, but I would go a step further and say in the history but the world.”
De Leon said he’s looking forward to a “vigorous debate on the merits of the measure itself. … I think it’s going to be fun.” Democrats easily outnumber Republicans in both houses of the Legislature (26 out of 40 in the Senate; 52 out of 80 in the Assembly), but de Leon said that some Republicans had said to him privately that they “concurred that something must be done about this issue. Politically, that’s another issue altogether. But privately, I’ve heard on numerous occasions that ‘I agree with you, but it’s extremely difficult for us to do anything about this.’ ”
Watch the interview here:
And watch a panel discussion, with energy expert Amy Myers Jaffe and others:
The past year has brought a welcome surge in investment and growth for the renewable energy industry — with one very large exception: biofuels.
OPEC is producing one million barrels more than the official target OPEC ministers agreed to last week.
In coming years, presuming no substantial geopolitical shocks, oil demand will struggle to keep pace with oil supply, keeping pressure on oil prices.
The Environmental Protection Agency issued a draft finding that, if finalized, would trigger federal rules to curtail greenhouse gas emissions from U.S. commercial aviation.
