Before you start furiously typing out a retort, hear me out. First, I want to make it clear what I am not skeptical about. I am not skeptical about electric vehicles (EVs) continuing to grow rapidly for the foreseeable future. Indeed, I believe that will happen — although growth has slowed in the U.S. in recent years.
I am also not skeptical over the fact that EVs make sense for many people. Indeed, I would buy one myself if I could justify it economically. I have only put about 5,000 miles on my car in the past 2 years, so it’s hard to justify any sort of premium that could be paid off by fuel savings.
I am also not skeptical that EVs will get cheaper, and that improvements in batteries will extend their range. I believe tomorrow’s EV will be much better than today’s.
So far, so good. On these three points, I am on the same page with the most rabid EV enthusiast. But I am extremely skeptical about one thing. CONTINUE»
In January of this year, as I do every year, I made several energy predictions for the upcoming year. (See My 2016 Energy Predictions). Now that half the year is in the books, I thought it might be a good idea to check in and see how these predictions are tracking.
As a reminder, I strive to make predictions that are specific, measurable, and preferably actionable. If forecasts are broad and vague, one can almost always declare victory. I would also remind readers that my predictions are based on what I believe will happen, which isn’t the same thing as predicting what I want to happen. My desire for a particular outcome has absolutely no bearing on a prediction. I am simply trying to accurately gauge the most likely outcome.
Here are the predictions, along with an update through the first half of the year. CONTINUE»
Each year in June two very important reports are released that provide a comprehensive view of the global energy markets. The highlight of the recently-released Renewables 2016 Global Status Report (GSR) was that the world’s renewable energy production has never been higher. But the biggest takeaway from this year’s newly-released BP Statistical Review may be that the world’s fossil fuel consumption has also never been higher.
Demand for crude oil set a new all time-high in 2015. Despite all the hype about electric vehicles and peak oil demand, the world’s oil demand continues to grow unabated — growing a robust 1.9 million barrels per day (bpd) from 2014 (+1.9% year-over-year).
The recently-released Renewables 2016 Global Status Report shows that renewables had a record year in 2015, but it wasn’t enough to make a dent in global fossil fuel consumption, which also set new records for consumption.
Several years ago, when I was working on my book Power Plays, I spent a lot of time thinking about the future of energy. One thing I concluded was that solar power would become one of the world’s most important sources of energy – if not eventually the most important source of energy. I also discussed this in the 2007 column “The Future Is Solar.”
There are a couple of reasons I still believe this. But first, I should make it clear that it will be a long time before solar power rivals the consumption of oil in the global energy market.
While solar power is growing rapidly, we still use about 100 times as much energy in the form of oil (and about 90 times as much in the form of coal). Further, even though solar power is growing at a fast rate, the absolute growth in oil consumption from 2013 to 2014 was about 3 times the growth in solar power consumption. In other words, even though solar consumption grew at a 38% rate and oil consumption grew at about a 0.7% rate, this amounted to an increase in solar consumption of 11.6 million metric tons of oil equivalent versus an increase in oil consumption of 32 million metric tons. CONTINUE»
I spent a lot of time in 2015 warning that at year-end we would see a huge decline in crude oil reserves. As I have explained in the past, the reason I expected this is because of the relationship between proved oil reserves and oil prices. This relationship is important for understanding oil reserves. Some articles that recently began making the rounds made certain conclusions from this paper — A global energy assessment — in which some subtleties about oil reserves have been lost. So let’s review.
An oil resource refers to the total amount of oil in place in particular area. Generally, most of a resource can’t be technically recovered, but the resource refers to the amount that could potentially be recovered. These estimates can go up and down, but the resource is what could be recovered at 100% recovery based on current estimates.
As an example, it is estimated that the Bakken Shale centered under North Dakota contains several hundred billion barrels (bbl) of oil (the resource). However, what is technically and economically recoverable in the Bakken has been estimated at less than 10 billion barrels (<10% of the resource). CONTINUE»
A few people have asked if I can reproduce more of my Forbes columns here, because they don’t like wading through the ads there to get to the content. This week I wrote an update on the progress toward cellulosic ethanol commercialization, and given my previous coverage on the topic (especially Why I Don’t Ride a Unicorn to Work) this seems like an appropriate subject to discuss here.
Last week the U.S. Environmental Protection Agency (EPA) announced that during the first quarter of 2016, just over 1 million gallons of cellulosic ethanol were produced. In fact, production for the month of March jumped 64% from the previous month to 446,000 gallons produced, the highest levels of the modern era. Production this year is well ahead of the pace in 2015, when 2.2 million gallons of cellulosic ethanol were produced for the entire year.
So, have we finally reached the long-promised realization of commercial cellulosic ethanol? CONTINUE»
Coal Goes Bust
Today, as had been expected, Peabody Energy Corp. (NYSE: BTU) — the largest coal producer in the United States — filed for Chapter 11 bankruptcy protection. Following the announcement I immediately began to receive press releases from various environmental organizations crediting the rise of renewable energy and/or the campaigns to divest investments from fossil fuels for the decline in the U.S. coal industry.
A press release from 350.org declared Peabody’s bankruptcy “A harbinger of the end of the fossil fuel era.” While I applaud a transition away from coal, these organizations are falling all over themselves to give credit to everything except the primary culprit behind the demise of the U.S. coal industry, which is natural gas (as I demonstrate below). In fact, many of these organizations have circulated stories — usually from those with clear vested interests — intended to discredit the indisputable role that natural gas has played. So let’s take a closer look. CONTINUE»
In my previous article — Leonardo DiCaprio’s Huge Carbon Footprint — I discussed the seeming inconsistency of Leonardo DiCaprio’s climate change activism and his excessive fossil fuel consumption. My argument was that with his own large carbon footprint, DiCaprio is undermining his message and making himself an easy target for critics.
My argument wasn’t specifically that he is a hypocrite, although that has indeed been the argument of many. But others have argued that DiCaprio isn’t a hypocrite at all, because he isn’t actually asking anyone to sacrifice. This is the position articulated well by David Roberts at Vox in Rich climate activist Leonardo DiCaprio lives a carbon-intensive lifestyle, and that’s (mostly) fine. I generally find a lot of truth in what David writes, even when I disagree with him. But here I kind of think David misses the point.
Roberts acknowledges the appeal of the critiques against DiCaprio, noting that there are even plenty of liberals and environmentalists who are quick to criticize climate activists with high-carbon lifestyles. He believes there are two arguments that DiCaprio’s critics make, and then he sets out to debunk them. My intention today is to challenge his debunking. CONTINUE»
Leonardo DiCaprio recently won the Oscar for Best Actor for his performance in The Revenant. I saw the movie, and to my layman’s eye it certainly seemed like an Oscar-worthy performance. I was rooting for him to win, as was, it seems, most of America. His victory reportedly set a social-media record, with 440,000 posts in about a minute to become the single-most Tweeted minute during an Oscar telecast.
While I applauded his victory, I took exception to part of his acceptance speech. Here is an excerpt:
“Climate change is real, it is happening right now. It is the most urgent threat facing our entire species, and we need to work collectively together and stop procrastinating. We need to support leaders around the world who do not speak for the big polluters, but who speak for all of humanity, for the indigenous people of the world, for the billions and billions of underprivileged people out there who would be most affected by this.”
The problem isn’t the message. I believe we are engaging in a dangerous experiment by dumping ever-increasing amounts of carbon dioxide into the atmosphere. I don’t think there is an easy fix to the problem, but I agree with his characterization that it is an urgent threat. CONTINUE»