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We Wonder If Today's EPA Announcement Pleases Our Energy Readers: layer this on top of the WOTUS, Ocean Policy, ESA, CAA, CWA and War on Coal MATRIX! Like the industrious Lilliputians did with Gulliver, is EPA — under White House direction — strapping the great American economy to the ground, immobilizing it, pretext to total control of the people and their free enterprises? Frankly, the EPA's authoritarian use of rulemaking — to us — more resembles a well coordinated attack strategy than simple incompetence. -dh (Ref. 2012 E.O.)
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RELEASED TODAY: BP's Statistical Review shows 2014 was a year of ‘tectonic’ shifts in global energy production and consumption Yesterday, we linked readers to BP In Alaska, the company's biannual listing the latest facts and figures around BP's ALASKA field data, hiring, community investment, special projects, and more. Related to headline above TODAY: 1) Bloomberg: Court throws out challenges to EPA power plant rule…. "We are not surprised with the ruling in any way, given that EPA has not finalized the rule. We do, however, think that it is important to note that this is merely a procedural ruling and that lawsuits over the rule will be filed as soon as the agency completes its work and finalizes the rule," said Mike Butler, Mid-Atlantic executive director for the Consumer Energy Alliance, which opposes the rules. 2) Comment: The Out of Control, Anti-U.S., Environmental Protection Agency (EPA) is proposing to find under the Clean Air Act that greenhouse gas (GHG) emissions from commercial aircraft contribute to the pollution that causes climate change, endangering…. More 3) WSJ re: EPA. The Obama administration is planning a series of actions this summer to rein in greenhouse-gas emissions from wide swaths of the economy, including trucks, airplanes and power plants, kicking into high gear an ambitious climate agenda that the president sees as key to his legacy. More. |
Kasich A Disaster For Energy?
Could Republican Governor John Kasich, like former Alaska Republican Governor Sarah Palin, be a disaster for the job and wealth producing oil & gas & support industries if elected to high national office?
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Ohio's Governor John Kasich, a likely presidential contender, seems to have joined ranks of the wealth redistribution crowd in unreasonably attacking his home state's wealth and job producing oil industry.
Primarily democrats (including socialist, environmental and other social activists) have long sought to increase already high and discriminatory taxes and/or royalties on the oil industry in Alaska and Canada.
But populist, anti-oil industry policy, as we see in this case, is not reserved for activists of only one party.
We have commented on the danger of politicizing energy policy, including taxation, many times over the years, including this most recent editorial.
Energy analysts released a report on Kasich's tax proposal a few weeks ago, available here.
The study was prepared by Bernard L. Weinstein, Ph.D. Nicholas Saliba, B.A., B.S., BBA and Sam Lee of the Maguire Energy Institute, Cox School of Business Southern Methodist University Dallas, Texas and sponsored by the Ohio Oil and Gas Association.
Our astute NGP readers throughout Alaska, the Lower 48 and Canada will recognize Kasich's tactics and the arguments against launching unreasonable, discriminatory volleys of tax assaults on the wealth and job producing sector which could otherwise be a jurisdiction's best economic friend.
Alaskans and Albertans in particular will find a number of familiar themes. Their experiences, as we have documented over the years, underline the validity of the majority of the study's observations:
- Because of the 50 percent drop in oil prices since last summer, and historically low natural gas prices, the industry is currently in recession and retrenching
- Hiking Ohio’s severance tax rates will have profound effects on profitability
- The severance tax will not be a sizeable or dependable revenue source for Ohio’s general fund (i.e. unlike Alaska, whose production occurs mostly on state land and whose economy has become over 1/3 dependent on one of the highest taxing (i.e. and highest per capita spending) jurisdictions in the free world.
- The proposed hikes in Ohio’s oil and gas severance taxes are discriminatory
- Higher tax burdens on Ohio’s oil and gas producers may retard future investment in the state
Kasich |
Palin |
Conclusion: Kasich (Stock photo) appears to be approaching higher office with a very similar, anti-oil & gas attitude to the one we saw reflected in Governor Sarah Palin's (NGP Photo) populist administration.
A populist approach to national energy policy could inhibit energy wealth and job production; stifle the manufacturing, transportation and service industries; exacerbate deficit spending and balance of payment deficits; and, weaken national defense capability.
| Red State by Eric Erickson. …John Kasich does not want to be president…. …one does not run for President in the Republican Party by hiring consultants who hate the Republican base to run the campaign of a Republican who says …. |
Both proclaim themselves to be advocates of free enterprise. In many ways, both seem to be well-intended and defenders of the national interest.
However, both have sought to support their government spending priorities by unreasonably, if not unintelligently, attacking the ability of energy investors to increase their investments in a hostile political environment.
In short, Kasich, as represented herein, seems afflicted with an dearth of diplomatic skill, an amateurish communication style and ignorance of the concept of tax hikes in a low oil price environment. Such attributes in a national leader would likely be bad news for oil and gas producers everywhere — not to mention the negative effect on consumers whose jobs and energy prices would likely be prioritized below populist, government spending programs.
(Note: We invite representatives from Governor Kasich's administration or his presidential advisory team to provide a response to this commentary. Should we have misrepresented any facts, we will make appropriate and timely changes to assure the accuracy of our searchable archives. We would, obviously, provide the same invitation to Governor Palin, particularly if she is planning to seek national, public office. -dh)
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Dave Harbour, publisher of Northern Gas Pipelines, is a former Chairman of the Regulatory Commission of Alaska and a Commissioner Emeritus of the National Association of Regulatory Utility Commissioners (NARUC). He served as NARUC's official representative to the Interstate Oil & Gas Compact Commission (IOGCC). Harbour is past Chairman of the Alaska Council on Economic Education, former Chairman of the Anchorage Chamber of Commerce, and past President of the American Bald Eagle Foundation and the Alaska Press Club. He is Chairman Emeritus of the Alaska Oil & Gas Congress. Opinions or viewpoints expressed in this webpage or in our email alerts are solely those of the publisher and in no way reflect the opinion(s) of any affiliated company, person, employer or other organization. |
From a Mid-Atlantic energy consultant friend of ours:
Ohio continues to pursue an onerous approach to an oil and gas severance tax, driven by Governor John Kasich. This has been an ongoing effort by Kasich since shortly after he was first elected governor over four years ago.
The Ohio Oil and Gas Association has endeavored during that time to work with the legislature to adopt a reasonable approach to a severance tax that came close to the model ostensibly sought by the Governor. During that time neither the Governor nor his staff has made any effort to even meet with representatives of the industry, much less work out a fair approach to a severance tax. In the end, Kasich would not even allow the Ohio Senate to vote on the House proposal.
This year the Governor more than doubled his tax proposal, even in the face of horrible pricing for oil, gas, and liquids. It makes for terrible tax policy.
Today…from your out-of-control, anti-US EPA, add a new layer to the 'enslave free enterprise and prepare for authoritarian control MATRIX':
The U.S. Environmental Protection Agency (EPA) is proposing to find under the Clean Air Act that greenhouse gas (GHG) emissions from commercial aircraft contribute to the pollution that causes climate change, endangering the health and welfare of Americans.
At the same time, the agency is releasing information about the international process already underway by the International Civil Aviation Organization (ICAO) for developing carbon dioxide (CO2) standards for aircraft and EPA’s participation in that process. EPA is now seeking public input to inform future steps by the agency.
For the past five years, ICAO — a specialized body of the United Nations with 191 member states — has been working with the aviation industry and other stakeholders to develop coordinated, international CO2 emissions standards for aircraft. EPA and the Federal Aviation Administration, representing the United States, are participating in ICAO’s process to ensure that any standards achieve meaningful CO2 emissions reductions through policies that are equitable across national boundaries.
The ICAO standards are expected to be adopted in early 2016. The items issued today by EPA lay the necessary foundation for the development and implementation of a domestic aircraft standard, in accordance with U.S. law and the ICAO process.
U.S. aircraft emit roughly 11 percent of GHG emissions from the U.S. transportation sector and 29 percent of GHG emissions from all aircraft globally. In 2009, EPA determined that GHG pollution from cars and light trucks threatens Americans' health and welfare by leading to long-lasting changes in our climate that can have a range of negative effects. Since then, the body of science on human-induced climate change has strengthened, supporting today’s proposed finding — under a different section of the Clean Air Act — that GHGs emitted from aircraft engines contribute to pollution that causes climate change endangering public health and welfare. Today’s action supports the goals of the President’s Climate Action Plan to reduce emissions from large sources of carbon pollution.
Today’s actions do not apply to small piston-engine planes (the type of plane often used for recreational purposes), or to military aircraft.
Once this action is published in the Federal Register, it will be open for a 60-day public comment period. Any future domestic actions toward aircraft engine standards would also be open to public comment and review before they could take effect.
For more information on the proposed contribution finding and the advance notice of proposed rulemaking, visit http://epa.gov/otaq/aviation.
BP Statistical Review shows 2014 was a year of ‘tectonic’ shifts
in global energy production and consumption
The 2015 edition of the BP Statistical Review of World Energy, launched today, highlights how significant changes in global energy production and consumption have had profound implications for prices, for the global fuel mix, and for global carbon dioxide emissions.
The 64th annual edition of the Statistical Review highlights the continuing importance of the US shale revolution, with the US overtaking Saudi Arabia as the world’s biggest oil producer and surpassing Russia as the world’s largest producer of oil and gas.
On the consumption side, the Statistical Review records primary energy consumption slowing markedly, with growth of just 0.9% in 2014, a lower rate than at any time since the late 1990s (other than in the immediate aftermath of last decade’s financial crisis). Chinese growth in consumption slowed to its lowest level since 1998 as its economy rebalances away from energy intensive sectors, though China remained the world’s largest growth market for energy.
Speaking at today’s launch, BP Group Chief Executive Bob Dudley said: “The eerie calm that had characterized energy markets in the few years prior to 2014 came to an abrupt end last year. However, we should not be surprised or alarmed. These events may well come to be viewed as symptomatic of a broader shifting of the tectonic plates that make up the energy landscape, with significant developments in both the supply of energy and its demand. Our task as an industry is to meet today’s challenges while continuing to invest to meet tomorrow’s demand, safely and sustainably.”
The shifts in production and consumption had major effects on energy prices as well as the fuel mix. For oil, prices have fallen sharply, largely driven by the strength of supply as non-OPEC production grew by a record amount while OPEC maintained its output levels to maintain market share. Elsewhere, the growth of China’s coal consumption stalled and global natural gas growth was also weak, held back by a mild European winter triggering a sharp fall in consumption.
Renewables were the fastest growing form of energy, accounting for one third of the increase in overall primary energy use during a year in which global primary energy consumption growth slowed. Even so, they accounted for only 3% of primary energy.
Global carbon dioxide (CO2) emissions from energy use grew by just 0.5%, the weakest since 1998 (other than in the immediate aftermath of last decade’s financial crisis). The slower growth relative to its average over the past 10 years or so was largely attributable to the changing pace and pattern of Chinese economic growth.
Review highlights – energy developments
Growth of global primary energy consumption decelerated markedly in 2014, even though global economic growth was similar to 2013. Energy consumption increased by just 0.9% in 2014, a sharp deceleration over 2013 (+2.0%) and well below the 10-year average of 2.1%.
· Consumption increased for all fuels, reaching record levels for every fuel type except nuclear power. Production increased for all fuels except coal.
· Emerging economies continued to dominate the growth in global energy consumption, as they have on average over the past decade, but growth in these countries (+2.4%) was well below its 10-year average of 4.2%.
· Chinese consumption growth (+2.6%) was the slowest since 1998, yet China still recorded the world’s largest increment in primary energy consumption for the fourteenth consecutive year. OECD consumption experienced a larger than average decline (-0.9%), with weakness in the EU and Japan offsetting above-average growth in the US. The fall in EU energy consumption was the second-largest percentage decline on record (exceeded only in the aftermath of the financial crisis in 2009). Energy consumption in the EU fell to its lowest level since 1985.
· Growth was significantly below the 10-year average for Asia Pacific, Europe & Eurasia, and South & Central America.
· Oil remained the world’s leading fuel, with 32.6% of global energy consumption, but lost market share for the fifteenth consecutive year.
· Energy price developments in 2014 were generally weak, with oil and coal prices falling globally. Gas prices fell in Europe, were relatively flat in Asia, and rose in North America.
Oil
Prices
· Dated Brent averaged $98.95 per barrel in 2014, a decline of $9.71 per barrel from the 2013 level and the first annual average below $100 since 2010.
· Crude oil prices remained firm in early 2014 in the face of continued large supply disruptions, but fell sharply later in the year.
· The average WTI – Brent differential narrowed to $5.66 per barrel (from $10.67 in 2013) despite continued robust US production growth, but remained elevated relative to past levels.
Consumption and production
· Global oil consumption grew by 0.8 million barrels per day (bpd), or 0.8% – a little below its recent historical average and significantly weaker than the increase of 1.4 million bpd seen in 2013.
· Countries outside the OECD accounted for all of the net growth in global consumption. Chinese consumption growth was below average but still recorded the largest increment to global oil consumption (390,000 bpd).
· OECD consumption declined by 1.2%, the eighth decrease in the past nine years. Light distillates (motor and aviation gasoline, light distillate feedstock) were the fastest-growing refined product category for a second consecutive year.
· Global oil production growth was more than double that of global consumption, rising by 2.1 million bpd or 2.3%.
· Production outside OPEC grew by 2.1 million bpd, the largest increase in our dataset. The US (+1.6 million bpd) recorded the largest growth in the world, becoming the first country ever to increase production by at least 1 million bpd for three consecutive years, and taking over from Saudi Arabia as the world’s largest oil producer. Along with the US, production in Canada (+310,000 bpd) and Brazil (+230,000 bpd) also reached record levels in 2014.
· OPEC output was flat, and the group’s share of global production fell to 41%, its lowest since 2003.
Refining and trade
· Global crude runs rose by 1.1 million bpd (1.4%) in 2014 – the highest growth since 2010 and more than double the 10-year average. Refinery runs in the US rose by 530,000 bpd, the largest increase since 1986.
· Global refining capacity expanded by an above average 1.3 million bpd, led by additions in China and the Middle East, with Middle Eastern capacity expanding by a record 740,000 bpd.
· Global refinery utilization remained at 79.6%, its lowest rate since 1987.
· Global trade of crude oil and refined products in 2014 grew by a below average 0.9%, or 490,000 bpd.
· Import growth was driven by China and other emerging economies, while US net imports declined. China replaced the US as the world’s largest net oil importer in 2013.
Natural gas
Consumption and production
· World natural gas consumption grew by just 0.4%, well below the 10-year average of 2.4%. Growth was below average in both the OECD and emerging economies, with consumption in the EU (-11.6%) experiencing its largest volumetric and percentage declines on record. The Europe & Eurasia region (-4.8%) had the five largest volumetric declines in the world in Germany, Italy, Ukraine, France and the UK. Globally, natural gas accounted for 23.7% of primary energy consumption.
· Global natural gas production grew by 1.6%, below its 10-year average of 2.5%. Growth was below average in all regions except North America. The US (+6.1%) recorded the world’s largest increase, accounting for 77% of net global growth. The largest volumetric declines were seen in Russia (-4.3%) and the Netherlands (-18.7%).
Trade
· Global natural gas trade registered a rare contraction in 2014, falling by 3.4%.
· Pipeline shipments declined by 6.2%, the largest decline on record, driven by falls in net pipeline exports from Russia (-11.8%) and the Netherlands (-29.9%). Global LNG trade increased by 2.4%. International natural gas trade accounted for 29.4% of global consumption; LNG’s share of global gas trade rose to 33.4%.
Other fuels
Coal
· Global coal consumption grew by 0.4% in 2014, well below the 10-year average annual growth of 2.9%. Coal’s share of global primary energy consumption fell to 30.0%.
· Consumption outside the OECD grew by 1.1%, the weakest growth since 1998, driven by a flattening of Chinese consumption (+0.1%). India (+11.1%) experienced its largest volumetric increase on record, and the world’s largest volumetric increase. Global coal production fell by 0.7%, with large declines in China (-2.6%, the world’s largest volumetric decline) and Ukraine (-29.0%) more than offsetting large increases in India (+6.4%) and Australia (+4.7%).
Nuclear and hydroelectric
· Global nuclear output grew by an above-average 1.8%, the second consecutive annual increase, and the first time nuclear power has gained global market share since 2009.
· Increases in nuclear output in South Korea, China and France outpaced declines in Japan, Belgium and the UK.
· Global hydroelectric output grew by a below average 2.0%. Hydroelectric output accounted for a record 6.8% of global primary energy consumption.
· Chinese hydroelectric output growth (+15.7%) accounted for all of the increase in global output.
Renewables (including wind, solar, and biofuels)
· Renewable energy sources – in power generation as well as transport – continued to increase in 2014, reaching a record 3.0% of global energy consumption, up from 0.9% a decade ago.
· Renewable energy used in power generation grew by 12.0%, and renewables accounted for a record 6.0% of global power generation.
· China recorded the largest increment in renewables in power generation for a fifth consecutive year; growth last year (+15.1%) was one-third the 10-year average.
· Globally, wind energy (+10.2%, +65 tera watt-hours) grew by less than half of its 10-year average.
· Solar power generation grew by 38.2% (+51 tera watt-hours).
· Global biofuels production grew by a below average 7.4% (+144,000 bpd).
Notes:
The BP Statistical Review of World Energy 2015 is available online at:
The website contains all the tables and charts found in the latest printed edition, plus a number of extras, including:
— Historical data from 1965 for many sections.
— Additional data for natural gas, coal, hydroelectricity, nuclear energy, electricity and renewables.
— An oil, natural gas and LNG conversion calculator.
— PDF versions and PowerPoint slide packs of the charts, maps and graphs, plus an Excel workbook of the data.
— Regional fact sheets.
— Videos and speeches.
Today, the U.S. Environmental Protection Agency (EPA) released EJSCREEN, an environmental justice screening and mapping tool that uses high resolution maps combined with demographic and environmental data to identify places with potentially elevated environmental burdens and vulnerable populations. EJSCREEN’s simple to understand color-coded maps, bar charts, and reports enable users to better understand areas in need of increased environmental protection, health care access, housing, infrastructure improvement, community revitalization, and climate resilience.
“EJSCREEN provides essential information to anyone seeking greater visibility and awareness about the impacts of pollution in American communities,” said EPA Administrator Gina McCarthy. “EJSCREEN has been a valuable resource for EPA to advance our commitment to protect Americans most vulnerable to pollution. I’m excited to share this tool with the public to broaden its impact, build transparency, and foster collaboration with partners working to achieve environmental justice.
“State environmental agencies appreciate EPA’s collaborative work on the use and release of this important tool,” said Dick Pedersen, Director of Oregon’s Department of Environmental Quality and past President of the Environmental Council of States. “Citizens having access to environmental and demographic data is extremely important in helping states implement environmental programs and ensure public health and environmental protection for all. To that end, EJSCREEN facilitates vital citizen engagement.”
EJSCREEN can help governments, academic institutions, local communities, and other stakeholders to highlight communities with greater risk of exposure to pollution based on 8 pollution and environmental indicators, including traffic proximity, particulate matter, and proximity to Superfund sites. These indicators are combined with demographic data from the U.S. Census Bureau American Community 5-year Summary Survey enabling users to identify areas with minority or low-income populations who also face potential pollution issues.
EJSCREEN’s capabilities could provide support for educational programs, grant writing, and community awareness efforts so that users can participate meaningfully in decision-making processes that impact their health and environment. While EJSCREEN is being shared publicly to improve work on environmental justice, EPA is not mandating state governments or other entities use the tool or its underlying data.
EJSCREEN does not direct EPA decisions; it does not provide a basis for identifying areas as EJ communities, and it is not an appropriate standalone tool for making a risk assessment. As a screening tool, its data may have levels of uncertainty, and is therefore incomplete in capturing the total number of pollution problems people face.
Today’s release of EJSCREEN initiates a stakeholder engagement period over the next six months. EPA will collect feedback on the datasets and design of the tool – as well as how it could be further enhanced – and will release a revised version in 2016.
Environmental justice is defined as the fair treatment and meaningful involvement of all people, regardless of race or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. EPA’s goal is to provide all people with equal access to the environmental decision-making process to maintain a healthy environment in which to live, learn, and work.
To access the tool, visit: http://www2.epa.gov/ejscreen.
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