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Oil Forever!

By Alan Caruba

I suspect that most people think the Earth is running out of oil or that the U.S. and the rest of the world are “addicted” to its use.

Both beliefs are wrong, but in different ways. First because the Earth produces oil in abundance deep within its mantel in ways that have nothing to do with dead dinosaurs and gives no indication of ever stopping this natural process and, second, because the use of oil for fuel and for thousands of other applications, not the least of which is plastics, is one of the great blessings of modern technology and life.

All this is made dazzlingly clear in Dr. Jerome R. Corsi’s new book, “The Great Oil Conspiracy” ($22.95, Skyhorse Publishing). By way of explaining why there is so much oil within the planet Dr. Corsi tells the story of the Nazi regimes development of synthetic oil after German scientists “cracked the code God built into the heart of chemistry to form hydrocarbons in the first place.” Known as the “Fischer-Tropsch” process, it permitted the Nazis to pursue war even though Germany had no oil fields of its own.

The widespread use of the term “fossil fuels” is a deception created by anti-energy propagandists and earlier theorists to make people believe that oil is the result of countless dead dinosaurs and decaying vegetation. Oil, however, is “abiotic”, a term that means it is a natural product of the earth itself “manufactured at deep levels where there never were any plants or animals.”

Corsi writes of Thomas Gold, a professor of astronomy who taught at Cornell University. In 1998 he published a controversial book entitled “The Deep Hot Biosphere: The Myth of Fossil Fuels” in which he applied his knowledge of the solar system, noting that carbon is the fourth more abundant element in the universe, right after hydrogen, helium, and oxygen. Gold pointed out that “carbon is found mostly in compounds with hydrogen—hydrocarbons—which, at different temperatures and pressures, may be gaseous, liquid, or solid.”

Gold, who passed away in 2004, was way ahead of most other scientists with his assertion that the earth produces oil at very deep levels. While telling the story of how the U.S. went to great lengths to acquire the data regarding synthetic oil production as our military overran Germany and then took care not to let the public know about. It was, after all, our own oil industry that had provided the fuel that aided the war effort in both theatres.

Correspondingly, the oil industry had no reason to develop “relatively expensive synthetic oil when billions of dollars in profits could be made annually bringing to market naturally produced and reasonably priced hydrocarbon fuels, including crude oil and natural gas.”

This mirrors the efforts of “renewable” energy producers, wind, solar, and biofuels like ethanol, to profit at the cost of billions of dollars in subsidies and loan guarantees paid for by taxpayers along with higher electricity and gasoline bills paid for by consumers; all of which are mandated by the federal government. It is pure crony capitalism to enrich a few at the expense of all the rest of us. None of these alternative forms of power could exist or even compete without such government mandated support.

As Dr. Corsi points out, “Eliminating the fear that the world is running out of oil eliminates an urgency to experiment with or to implement alternative fuels including biofuels, wind energy, and solar energy as long as these energies remain less energy-efficient, less reliable, and more costly than using oil and natural gas.”

There are, in fact, “more proven petroleum reserves than ever before, despite the increasing rate at which we are consuming petroleum products worldwide” says Dr. Corsi, noting that the Energy Information Administration of the U.S. Department of Energy, in on record that “there are more proven crude oil reserves worldwide than ever in recorded history, despite the fact that worldwide consumption of crude oil has doubled since the 1970s.”

So tell me why, since the Obama administration took over, have gas prices per gallon risen from $1.84 to $3.80 now, a rise of 105%? The American Energy Alliance compared costs between 2009 and 2012, publishing them to reveal that we are all paying more for energy. The average monthly residential electricity bill has increased 6% and annual household energy expenses have increased 31%.

At the same time, the Obama Department of Energy increased new rules whose implementation cost more than $100 million each 141%! The Environmental Protection Agency increase of such regulations increased 40%, the Department of the Interior, 13%.

Total regulatory costs (all sectors) went from $1,172 trillion in 2009 to $1,752 trillion today! If you were trying to bankrupt the energy sector and its consumers, this is a great way to do it.

You can access the AEA chart at:  Click Here

The Obama administration came into office declaring a war on coal, further restricting oil and natural gas exploration on federal lands and offshore, and wasting billions on solar, wind, and biofuel companies. That in itself would be reason enough to turn them out of office.

The Earth is not running out of oil and likely never will.

© Alan Caruba, 2012

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Current and Projected Costs for Biofuels from Algae and Pyrolysis

The presentation explored the question of whether the U.S. government is spending money on the right technology pathways. Costs were presented for biofuel produced from pyrolysis, algae, Fischer-Tropsch (FT), and methanol-to-gasoline (MTG) routes.

Read more: The Oil Drum | Current and Projected Costs for Biofuels from Algae and Pyrolysis.

Germany: Siemens to Convert Wind Energy into Gas

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Siemens AG (SIE) has revealed its intention to introduce technology in 2015 that will enable conversion of wind-turbine electricity into gas, providing wind farms with an alternative revenue stream when the grid is fully charged.

Michael Weinhold, Chief Technology Officer of Siemens’ Energy Businesses, says the electrolyser, a soccer-field sized plant that converts power into storable hydrogen, is in the testing phase, reports Bloomberg. It offers a promising capacity necessary for overcoming the challenge of how to harness fluctuating electricity output from wind farms, especially at night when demand is the lowest.

Munich-based Siemens allocates 1 billion euros ($1.3 billion) on annual bases to devising new technology for the energy industry. Wind farms have faced hardship in commercial terms because power cannot be stored on a large scale, however the converted hydrogen can be stored by feeding it into the gas grid.

“The main problem today is the mismatch of renewable power generation and demand,” Weinhold said in an interview. “If we can offer solutions to solve that, we have a business case.”

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Why Wind Power Doesn’t Live up to its Environmental Promises

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By MasterResource | Wed, 18 January 2012 01:33

“I cannot abide the suggestion that we must sacrifice our environment in order to save it. This is an absurd argument enabling this energy imposter’s invasion of delicate habitat with little return. … Environmentalists must consider the possibility that industrial wind, by its failure to perform to stated goals, does not then qualify for this sacred consideration.”

The heavily funded and admittedly effective U.S. industrial wind lobby portrays its product as descending from old-world windmills. Close your eyes and you’ll surely imagine these magnificent machines gently turning in the breeze … each kilowatt arriving at your reading lamp courtesy of a rosy–cheeked Hummel child.

Existing solely to save the planet by generating clean, affordable and environmentally friendly electricity, you can be sure that any addition to the plant owner’s bank account is purely accidental.

Hogwash!

In reality, the U.S. industrial wind business was rescued by Ken Lay and Enron with quick, low-risk profit as its core goal. As Gabriel Alonso, chief executive of Horizon Wind Energy LLC – one of America’s biggest wind developers, often reminds his employees … their goal isn’t to stage a renewable-energy revolution … “This is about making money!”

Once a Believer

I was not always this cynical. I wanted to believe that industrial wind would replace fossil fuelled power plants and, until two years ago, defended its arrival here. Like many West Virginians, I wanted the destruction of our mountains by those who profit from the blue diamond stopped … NOW!

I believed industrial wind offered the best opportunity to accomplish that goal and, even recognizing industrial wind also consumes our forest lands, it seemed an excellent alternative to the coal industry’s horribly destructive mountaintop removal mining process.

Sadly, once the layers of woulds, coulds and shoulds were peeled back, I found industrial wind failed to keep its environmental promises. Save the canned boilerplate responses to criticisms, the wind industry offered nothing conclusive to demonstrate it would significantly reduce emissions or close fossil fuelled plants. There is no conclusive evidence that one coal plant has been closed as a direct result of the installation of tens of thousands of wind turbines. Not one! I’ve asked advocates to name one facility. Answer … zippo!

I fully expect advocates to point to many studies which validate their woulds and shoulds. But the studies they point to carry their own fair share of woulds and shoulds as well.

We’re even asked to disregard the increased emissions generated by fossil fueled plants as they inefficiently try to compensate for wind’s constant variability and accept that, on their word alone, when the wind is blowing, a coal plant, somewhere, is not running. That’s equivalent to some self-appointed Giraffe Control Officer bragging that not one has been spotted in Charleston during his watch.

Consider this measure instead. US industrial wind capacity at the end of 2010 exceeded 40,000 MW. The U.S. has some 490 coal power plants with an average size of 667 MW. A direct one-to-one trade would have closed some 60 coal plants. Again … name one!

Bringing this closer to home … Edison Mission Energy is heavily invested in Appalachian coal-fired power plants even as it grows its Appalachian wind plants. Can we expect Edison to replace its fossil plants as it opens wind plants with equivalent MW capacity? Will any of the major players holding significant interest in both fossil fueled plants and wind plants make this commitment? I suggest they will not, as long as there is profit to be made from each.

The sad truth is that industrial wind does not replace fossil-fueled electricity generators. It does not reduce emissions. It does not provide affordable, on-demand electricity. The relatively miniscule amount of electricity generated typically arrives when it’s not needed and cannot effectively be stored. Industrial wind, true to Ken Lay’s intent, is a profit center founded on favorable legislation, mandated renewable energy goals and funded by taxpayer subsidies.

Conversion Experience

I did not come to the “dark side” willingly. At the suggestion of a friend, I attended a presentation on industrial wind at which the speaker systematically destroyed any notion that industrial wind has earned a seat at the US energy table.

Expecting yet another NIMBY rant, the presenter [ed. note: John Droz Jr.] instead based his case that industrial wind is a failed technology on science alone. There was little mention of view-shed, bat/bird kills, noise or health issues, all of which I’ve since learned are serious issues in their own right. The presenter focused primarily on the poor performance and high cost of industrial wind and the fact that it could never replace current generators, my main reason for initially supporting industrial wind.

Knowing that the two key representatives of our proposed wind plant were introduced as being in the audience, I could hardly wait for the question-and-answer session. This was going to be a knock down for the ages! Just wait until they set this clown straight!

Then, the presenter wrapped up and said the magic words I’d been waiting for … Any Questions? My gladiators stood up and walked out! Not a word! No defense! How could they let this brutal attack stand?

That was my turning point. Suspicion drove me to read any article I could find about industrial wind, and the more I learned the more I disliked these monstrous contraptions which were scheduled to invade my Appalachian Mountains by the tens of thousands.

What I Have Learned

Before this event, I was willing, like many of my friends, to sacrifice a mountain view, some bats and birds and even the hard earned tax dollars these wind folks would pick from my pocket if it meant the greater good would be served.

What I learned, however, lead me to the conclusion that there is no trade.

• Coal plants will continue to exist at pre-wind levels and the mines will remain open in order to supply them.
• Emissions will not be reduced as a result of industrial wind. When asked if wind power was reducing carbon emissions, Deb Malin, a Bonneville Power Authority Representative, answered, “No. They are, in fact, creating emissions.”
• Not only will the surface destruction brought about by mountain top removal mining not be reduced as a result of wind plants, industrial wind will bring destruction well above the ground in areas not previously impacted by mountain top removal.
• The cumulative impact of long stretches of deadly 450 foot tall whirlybirds along our fragile mountain ridges will set a deadly gauntlet for many migratory species with no real benefit to show for the sacrifice.
• The arguably unnecessary remote wind installations require long runs of forest fragmenting high power lines required to bring the occasional electricity generated to a point of use.
• My picked pocket only serves to benefit the wind developers.

I cannot abide the suggestion that we must sacrifice our environment in order to save it. This is an absurd argument enabling this energy imposter’s invasion of delicate habitat with little return. Sacrifice is, after all, a forfeiture of something highly valued for the sake of something one considered to have a greater value or claim. Environmentalists must consider the possibility that industrial wind, by its failure to perform to stated goals, does not then qualify for this sacred consideration.

Affiliations

My comments here are my own. I am a member of the Board of Directors for the Allegheny Highlands Alliance, but do not speak for the organization in this commentary. I serve as editor of the Allegheny Treasures blog, an amateur site intended not to answer questions, but instead to stimulate discussion of industrial wind among readers, as I hope to do in this piece.

I arrived at my opinions after all consideration to the argument presented by the American Wind Energy Association (AWEA) and other industrial wind support groups. I’ll be the first to admit I could be wrong, as I was when I supported industrial wind just two years ago. If a persuasive argument can be made to sway me back, I assure you I’ll happily move.

But I should warn you, the argument must begin with a list of coal- plant closings and not easily manipulated speculative “data.” Empty promises will not justify consuming even one more square inch of Appalachian forest.

Oh, before I’m criticized on the property rights issue … I firmly believe that you should be allowed to do anything you wish with your property as long as it brings no harm to others. But whatever you choose, don’t ask me to underwrite your adventure with my tax money in the form of subsidies, grants, or any other considerations from which you profit.

Beyond NIMBY

I am not insulted at the NIMBY (not-in-my-back-yard) moniker the wind advocates apply to me. I would take it one step further and suggest they call me a NOPE (not-on-planet-earth)!

I believe we are all responsible for our environment and must challenge every intrusion. We cannot accept, without question, the possibility that what has been portrayed as a solution may, in fact, create additional ills, no matter how much we want to believe.

Moving the country away from fossil fuels is one thing; choosing an alternative with no proven track record in accomplishing this effort, especially one with industrial wind’s potential for serious environmental destruction is quite another.

By. Michael Morgan

Michael Morgan is a “no party” West Virginian with a self-described “nose for nonsense.” A semi-retired Project Management and Transportation Consultant, he worked as Transportation/Materials Manager for an international manufacturer of large hydro turbine equipment and, before that, as Materials Manager with a Fortune 500 company.

“While I can’t claim to be an environmentalist,” Morgan adds, “growing up along the Allegheny Front dictates a respect for the environment and demands scrutiny of any intrusion.”

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UK: SeaEnergy Publishes ‘Past Laurels, Emerging Offshore Wind Energy Service Sector Bode Well’

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The management has an excellent track record of establishing businesses from the concept stage and adding value for shareholders

SeaEnergy PLCs (earlier Ramco Energy PLC) strategic approach to growth entails entering new businesses at an early stage when the need for capital is low and exiting these ventures when the right value is attained. The company, which was incorporated with focus on oil services, evolved into| an energy investment company with interest in oil and gas assets. SeaEnergy is currently also focusing on the development of its offshore wind service business, SeaEnergy Marine. In line with its strategy, the company has successfully monetized its business interests in the past. It liquidated its 2.0825% interest in the Azeri Chirag Guneshli (ACG) field in Azerbaijan for USD150 million during 2000 and divested its 80.13% stake in SeaEnergy Renewables Limited (SERL) for a cash consideration of £38.6 million in 2011.

SeaEnergy Marine – Banking on the promising offshore wind energy services sector

SeaEnergy is venturing into services related to the installation, operation and maintenance (O&M), and support of wind turbines through SeaEnergy Marine. It will stand out in terms of efficiency and cost-effectiveness. Offshore wind capacity in Europe is estimated to rise from 2.6GW at the end of 2010 to 43.3GW by 2020. This is likely to create massive demand for vessels that can facilitate the installation and O&M of wind turbines. The industry is currently facing a dearth of right-fit vessels that can execute these activities efficiently. For instance, wind farm owners in UK currently depend on workboats that operate at a maximum wave height of 1.5 meters and at a distance of 60 miles from shore, severely limiting their usefulness for wind farms now in development. The huge gap between demand and supply reflects the opportunities for growth in the offshore wind energy sector.

SeaEnergy Marine – A one-stop-shop for offshore energy sector

SeaEnergy Marine plans to integrate all services that offshore wind farm owners/developers may require. The company’s state-of-the-art vessels will shorten the installation cycle and increase accessibility for O&M. In addition, SeaEnergy Marine’s vessels will offer these services at very competitive rates, making the economics of operation quite favourable for its customers.

Past experience, established business model increase probability of success

SeaEnergy Marine benefits from the management’s experience in the offshore wind energy sector, especially the exposure gained while working with SERL. Moreover, the business model is well established. SeaEnergy Marine is also actively submitting tenders for contracts with major offshore wind companies.

The Discounted Cash Flow approach yielded a fair value of GBp50.5 per share, based on a cost of equity at 14.48%, inclusive of an additional risk premium of 8% as the company is still in the inception phase. As the marine business will gradually materialise, the additional premium will be faded out over time , providing further upside. In addition, our fair value excludes current (and further) upside from the O&G assets.

Original Article

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