Oil Spill | Green World Investor

Advantages and Disadvantages of Natural Gas Energy – Pros and Cons of Gas Usage

7 Jul, 2011

Natural Gas has got a lot of press these days as massive discoveries of natural gas reserves in shale gas formations has meant that the prices have gone down substantially and new power plants and infrastructure is being developed to use natural gas as fuel.Even as crude oil and coal prices have gone through the roof,natural gas prices have dived.This is due to the new technology being commercialized which is allowing huge shale gas deposits to be used.This has led to forecasts that natural gas will become a more important part of the energy mix in the coming days.The falling prices of natural gas has also led to declining electricity prices in the USA where shale gas development is the most advanced.Natural Gas prices have gone down to as low as $3.5/mmbtu from $8 in 2008 and experts predict that it may go down to $2.5/mmbtu.Shale Gas has its own critics who say that the shale gas deposits are much lower than being said and they deplete much faster.Environmental concerns are also being raised about the fact that it leads to poisoning of the water supplies with France banning shale gas mining completely.Natural Gas is a byproduct of Oil Drilling and in the earlier days it used to be looked upon as an irritant and burned off.But now it is being used to generate power,in chemical and fertilizer plants and also being used in some parts of power vehicles as well.Natural Gas is also used for Heating in most western developed countries and for Cooking as well.With increasing availability it is replacing coal and oil in power plants and tranport now.

Advantages of Natural Gas

1) Cheap and Abundant – The biggest advantages and Pro of Natural Gas is that it is now cheaper than almost any other fuel.New ways of extracting Natural Gas has made it abundant and in the coming days massive formations are waiting to be discovered.

2) Provides 24/7 and Continuous Source of Power – Natural Gas can provide electricity 24 hours,7 days a week unlike other sources of renewable energy.This makes it very important and some gas solar and gas wind hybrid plants are being developed.General Electric has developed very efficient Gas Boilers and Engines to improve the Efficiency of Gas to Energy Conversion.

3) Used for providing Peaking Power – Natural Gas is used to provide Peaking Power that is Electricity when Demand is very High.Note Nuclear Plants and Hydro Plants run continuously and it makes no difference to cost to stop them.However Natural Gas as no constraint and it is used to provide power at peak times and is stopped when demand is lower.This makes Natural Gas important to the development of Renewable Sources of Intermittent Energy like Wind and Solar Energy

4) Most Important Fuel for Cooking and Heating - Natural Gas is the most commonly used fuel for heating and cooking.Oil is not used as it is costlier.

5) Easily Transported Through Pipelines and as Liquefied Natural Gas (LNG) – Natural Gas Infrastructure is being developed rapidly and it is now transported over land through big Pipelines and over Water through massive LNG Tankers.This is done in a cost effective manner which implies that Cost of the Gas is not increased too much

Disadvantages of Natural Gas

1) Greenhouse Gas Emissions(GHG) – The biggest Disadvantage of Natural Gas is that it releases Carbon Dioxide which has been sequestered for millions of years in the dead bodies of plant and animals.This transfers the Carbon from the Earth to the Environment leading to the Global Warming Effect.Global Treaties have failed in putting a Cost on this,though individual countries are tying to account for this through Carbon Taxes and Cap and Trade.Natural Gas has been touted as a much Greener Fuel as compared to Oil and Coal.However some experts dispute the fact that Natural Gas is cleaner and say that if you consider the lifetime impact from the mining of Gas to its use it may be more harmful to the environment than Oil

2) Pollution of Water and Earth– Natural Gas leads to Air Pollution as some Gas escapes into the Air and its not possible to capture all the Natural Gas that is released.Shale Gas has raised huge concerns for causing toxicity to nearby water bodies

3) Growth in Terrorism and Violence- Gas is drilled in some of the worst dictatorships like Saudi Arabia,African countries.This Money goes directly into the hands of these despots who have amassed trillions of dollars.They give rise to violence and growth in terrorism as this oil money is used to fund these organizations.Osama Bin Laden comes from one of the richest Saudi families.

4) Non Renewable Source of Energy and will eventually Deplete – Like other sources of fossil fuel energy,Natural Gas Energy is going to deplete eventaully and does not form a sustainable answer to man’s energy questions.While the current large discoveries have made Natural Gas Cheap,these will also become empty.Compared to Gas,Solar and Wind Energy will last for a very very long time and building infrastructure for these cleaner fuels is more useful

5) Dangerous to work with and Combustible – Natural Gas is highly combustile and it can lead to explosions if not carefully handled.This is the reason that it is not used in vehicles more.Also it exists mostly in the gaseous state which makes handling it more difficult than Oil

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Pros and Cons of Wind Energy

Advantages and Disadvantages of Coal

While Shale Gas could be an Energy Panacea ,is it Environmentally Safe?

There have been concerns raised about the environmental degradation resulting from Shale Gas Production.Recent incidents of water and soil contamination from Pennsylvania has led to voices being raised in protest.Note all Fossil Fuel extraction leads to some extend of Environmental Pollution both during extraction and during usage.Shale Gas in no exception.However some unique types of Pollution being reported by Farmers has led to more focus on this still nascent technology.Pennsylvania has quarantined cattle which have fallen sick after drinking toxic waste water.Shale Gas Extraction requires injecting Water mixed with Chemicals at High Pressure to fracture Shale Rock formations.This results in contamination of water with chemicals that can lead to human and animal sickness.The problem arises from “Fracking” that involves mixing of water and toxic chemicals.Reports from US indicate that tap and toilet water in houses near these gas wells have been severely contaminated.Their have also been reports about Gas Leakages.Federal Regulators have tentatively started investigating Shale Gas Technology.But the Oil Industry in typical fashionis opposing the scope of the study.Reminds me of Saudi Arabia blocking the study of climate change on rising seal levels.The Oil and Gas companies currently don’t even have to reveal the chemicals they are using during the Fracking process.Lets hope that this Regulators do their job otherwise it could lead to another BP Oil Spill type of disaster in the future.The laxness of the Oil Drilling Regulator was a major factor in one of the world’s biggest environmental disasters.

Anti Environment Groups file frivolous lawsuit against Colorado 30% Renewable Portfolio Standard (RPS) by 2020

6 Apr, 2011

Gas,Oil,Renewable Energy,USA

USA has been sorely lacking in the fight against Climate Change and Global Warming.Greenhouse Gas Emissions by the US has increased tremendously from 1990 the benchmark year when countries under Kyoto Protocol pledged to reduced their Carbon Emissions.However US has refused to do anything and has not even signed the Kyoto Protocol.The hopelessly rudderless leadership in the US has failed to pass any Clean Energy Laws like Cap and Trade ( not my favorite),Federal RPS etc.Some states have been showing proactive leadership like California despite massive opposition by the powerful oil and gas lobby (Valero,Koch Brothers).Their efforts are being stymied by the very rich who don’t care about global warming as they can easily use their money to mitigate any affect on them and the powerful fossil fuel lobby with their thinktank puppets.Colorado is the latest state to be hit with a lawsuit regarding its RPS of 30% by 2020.Note RPS means that the state’s utilities are mandated to generate 30% of their electricity from renewable energy.The reason behind their lawsuit is that the costs of energy will be raised.These anti-environment groups fail to account for the massive societal costs of fossil fuels like the affect on health,national security,funding of terrorists through oil money.Electricity prices have been rising much faster than inflation as prices of oil,gas and coal have zoomed up.But when your salary depends on a point of view,it hard to reason on changing it.

Groups challenge Colorado renewable energy law

Two groups and a Morrison businessman are challenging Colorado’s renewable energy standard.They said Monday that they’ve filed a lawsuit in federal court asking a judge to declare the law unconstitutional.

They argue the Colorado law mandating that larger utilities get 30 percent of their energy from renewable sources by 2020 is leading to higher prices for consumers. They claim the law violates Constitution’s interstate commerce clause by imposing burdens on the interstate market for electricity.The Colorado attorney general’s office disagrees and plans to defend the law.The suit was filed by Morrison businessman Rod Lueck, the American Tradition Institute and the American Tradition Partnership.

Obama’s New Energy Policy – Just a lot of Empty Gas (Rhetoric)

31 Mar, 2011

Climate Change,Gas,Nuclear Energy,Oil,Renewable Energy,USA

Obama’s outlined a New Energy Policy as he periodically does without any far reaching national goals on to reduce America’s dependence on billions of barrels of imported oil which cause global warming,finance terrorist and prop up brutal regimes in the Middle East.However his periodic bursts of rhetoric on the US Energy Policy is nothing but a lot of empty gas without any specifics.Earlier he used to stress on nuclear energy which has been thrown out of the window with the Fukushima nuclear disaster.His plans of supporting the nuclear energy industry with $36 billion in DOE loans seems a bad if not a gruesome joke.Similarly last year his plans of allowing offshore drilling for Oil also fell flat after the massive BP Oil Spill ecological disaster.His New Energy Policy is anything but new as it hashes the same old stale ideas once again.The 5 points of his New Energy Policy (listed below) are as bad as they get.Using biofuels from corn increase food prices worldwide.The “Clean Energy Standard” is nothing but a statement without any implementation or specifics.The increased fuel efficiency for vehicles is the only thing good about the policy.The rest are just useless

1) More domestic production of oil.
2) Expand the use of biofuels as an oil substitute.
3) Develop natural gas as a transport fuel
4) Increase the efficiency of motor vehicles in order to use less gasoline.
5) Maintain a “clean energy standard” to promote electricity generation from plants by using cleaner burning fuels and renewables.

US is already way behind in the Green Industry trailing China and Germany for the biggest green investments in 2010.With lack of any movement towards climate change mitigation or large scale support for wind and solar energy,US should keep slipping further into oblivion even as countries like Taiwan,South Korea and even India make massive strides.The Opposition Republicans are even worst as they are completedly bought over by the powerful Oil and Gas Lobby.They have even less of a vision on how to change the blundering US Energy Policy than Obama.

Obama oil policy aims to cut imports by one-third, critics say it’s not enough

Pointing to continuing Middle East unrest and spiraling gas prices, President Barack Obama Wednesday proposed a one-third reduction in oil imports within the next decade.”Any claim that my administration is responsible for gas prices because we’ve ‘shut down’ oil production, any claim like that is simply untrue,” Obama said. “It might make for a useful sound bite, but it doesn’t track with reality. What is true is we’ve said if you’re going to drill offshore you’ve got to have a plan to make sure that we don’t have the kind of catastrophe that we had last year.”

The plan relies on a combination of increased domestic oil and natural gas production and incentives for alternative energy as well as support for nuclear power plants despite the recent Japanese disaster.

“I don’t think anybody here has forgotten what happened last year, where we had to deal with the largest oil spill in [our] history,” Obama said, as he outlined his plans for oil and gas development. “I know some of the fishermen down in the Gulf Coast haven’t forgotten it.”

Greenworldinvestor Articles that you should read on Failed US Energy Policies

BP Solar Panels – Why you Should Avoid Buying Them (Environment,Pricing)

28 Mar, 2011

Climate Change,Gas,Oil,Solar Cells,Solar Energy,Solar Panels

British Petroleum (BP) the multi billion dollar Oil and Gas Conglomerate is a strange player in the Renewable Energy Sector of Solar Energy.BP was a dominant company amongst the top 10 global manufacturers of solar panels till a few years ago.However the lack of interest on the part of management,low investment,lack of R&D has made it a bit player in the fast growing solar panel market.Companies which did not exist till a few years ago have outpaced BP to become top solar panel producers.However BP Solar Panels continue to sell in a number of market because of existing sales relationships and brand name.However it is only uneducated and uninformed consumers who are buying BP Solar Panels in my opinion.BP Solar Panels should be avoided both from an economic point of view and from the environment perspective.

Economic Perspective

Note BP has been closing down its solar panel factories in different parts of the world as it has not managed to compete with lower cost competition from the Chinese companies.It has also not put enough investment the solar industry despite having a first mover advantage.BP now outsources most of the production to Asian companies like JA Solar.Some of its production facilities are in JV with Asian companies like Tata Power.BP sells its solar panels at higher prices which can easily be bought directly from solar panel producers in China and Taiwan.Note the quality of these solar panels are better if not equal to that of BP Solar.So from a pricing and economic perspective it makes no sense to buy BP Solar Panels.Note BP Solar has closed down its US,Australia and Spain factories.It now outsources manufacturing to low cost locations in India,Mexico and China.While outsourcing itself does not make a product bad,note high quality low cost products are available from the same places,then what is the need of buying the same expensive product – BP Solar Panels in this case.Solar Panels are not iPads with great proprietary technology,they are more like commodities with a little bit of difference in quality.

BP Solar closes Maryland factory, despite promising growth

BP Solar closed its solar manufacturing plant in Frederick, Maryland, on Friday, with the loss of 320 jobs – despite achieving good growth in its sales.

Confirming closure of the plant, BP Solar CEO Reyad Fezzani said: “This was a difficult decision and we deeply regret the impact it will have on our employees and the community.”

BP had first revealed its plan to phase out the Frederick plant this time last year. Initially, 140 jobs were lost out the then-total of 600, as module assembly ceased. At the same time, BP Solar closed its manufacturing plant in Madrid, Spain.

Mr Fezzani said solar prices had declined by 40%-50% since the onset of the economic slow-down,

He explained: “By shifting our supply to a high quality, low cost supply base to serve both distribution customers and large scale projects, we have strengthened our position as a provider of competitive solar solutions with our offer of the highest lifetime value.”

Environment and Green Perspective

BP has been in the limelight for its major disaster it cause off the coast of USA in the Gulf Oil Spill.Its bad management,lack of responsibility has already been highlighted in the media and this blog.To buy solar panels from such a company would seem to be contradictory to going Green.Note Shell the other major Oil and Gas Conglomerate has already left the solar industry despite having impressive R&D and production facilities.These Oil and Gas Majors have little interest in developing the Green Industry as it would infringe on their core Oil and Gas Franchise.Their Corporate Leaders have no incentive to save the Environment or prevent Climate Change.For this reason alone,avoid BP Solar Panels.

BP incompetence and deception leads to a $60 billion marketcap loss after Oil Spill

BP’s conduct during the whole Oil Spill has been one of Lying,Cover ups,making over inflated claims and plain incompetence.It woke up a week after the Oil Spill as pressure mounted on it from the US administration and the civil society.It was making tall claims during its “dome” and “top kill” efforts which were untried at these ocean depths.Its conduct previous to the disaster with regard to safety has also been just short of criminal negligence.BP has also consistently under balled the barrels of oil figures leaking from the doomed oil rig.The monetary claim is certain to rise into a multi billion dollar figure politicians join the bash BP bandwagon

Greenworldinvestor Articles which expand on this article

Is Shale Gas Extraction Environmentally Safe?

2 Jul, 2010

Climate Change,Gas

Shale Gas is the newest Fossil Fuel Technology which would greatly help extend the world’s fast depleting oil and gas reserves.Shale gas has boomed in the US recently with improvements in hydraulic technology.Shale Gas is a “unconventional” Gas form like coalbed methane which was not usually available in commercial quantities.However the ability to fracture shale formation to allow gas to be extracted with advancements in Technology has allowed the ability for large scale Shale Gas Production.Despite higher costs,the high prices of Natural Gas makes this process economically viable.Huge investments are being planned in Shale Gas production in the US with Big Oil already making significant acquisitions in this space.

While it Shale Gas could be an Energy Panacea ,is it Environmentally Safe?

There have been concerns raised about the environmental degradation resulting from Shale Gas Production.Recent incidents of water and soil contamination from Pennsylvania has led to voices being raised in protest.Note all Fossil Fuel extraction leads to some extend of Environmental Pollution both during extraction and during usage.Shale Gas in no exception.However some unique types of Pollution being reported by Farmers has led to more focus on this still nascent technology.Pennsylvania has quarantined cattle which have fallen sick after drinking toxic waste water.Shale Gas Extraction requires injecting Water mixed with Chemicals at High Pressure to fracture Shale Rock formations.This results in contamination of water with chemicals that can lead to human and animal sickness.The problem arises from “Fracking” that involves mixing of water and toxic chemicals.Reports from US indicate that tap and toilet water in houses near these gas wells have been severely contaminated.Their have also been reports about Gas Leakages.Federal Regulators have tentatively started investigating Shale Gas Technology.But the Oil Industry in typical fashion is opposing the scope of the study.Reminds me of Saudi Arabia blocking the study of climate change on rising seal levels.The Oil and Gas companies currently don’t even have to reveal the chemicals they are using during the Fracking process.Lets hope that this Regulators do their job otherwise it could lead to another BP Oil Spill type of disaster in the future.The laxness of the Oil Drilling Regulator was a major factor in one of the world’s biggest environmental disasters.

Pennsylvania quarantine cattle over gas drilling fluid – Reuters

Officials have quarantined 28 cows that may have drunk toxic waste water from natural gas drilling in Pennsylvania, adding to concerns about health risks arising from exploiting the state’s vast shale deposits.The cows had access for at least three days to a pool that formed from a leaking waste water holding pond on a farm in Tioga County, north-central Pennsylvania, where East Resources Inc is drilling into the Marcellus Shale formation.

Face-Off Over ‘Fracking’: Water Battle Brews On Hill – NPR

Steve Harris believes that pressure also ruined his well. He lives on 14 acres south of Dallas. Shortly after a driller fracked a nearby well, he and his neighbors noticed a change in water pressure.”When you’d flush the toilet — in the back where the bowl is — water would shoot out the top of the bowl,” says Harris.When he took a shower, there was a foul odor, and the water left rashes on his grandson’s skin. His horses stopped drinking from their trough, and there was an oily film on top of the water.

Similar stories are popping up around the country. In Ohio, a couple’s house blew up when gas from their water well filled their basement. A woman in Colorado blames her health problems on the chemicals used for fracking.For the most part, people nearby don’t even know what chemicals are being injected into the ground — companies don’t have to report that.

Broad Scope of EPA’s Fracturing Study Raises Ire of Gas Industry – ProPublica

A federal study of hydraulic fracturing [1] set to begin this spring is expected to provide the most expansive look yet at how the natural gas drilling process can affect drinking water supplies, according to interviews with EPA officials and a set of documents outlining [2] the scope of the project. The research will take a substantial step beyond previous studies and focus on how a broad range of ancillary activity – not just the act of injecting fluids under pressure – may affect drinking water quality.The oil and gas industry strongly opposes this new approach. The agency’s intended research “goes well beyond relationships between hydraulic fracturing and drinking water,” said Lee Fuller, vice president of government affairs for the Independent Petroleum Association of America in comments [3] (PDF) he submitted to the Environmental Protection Agency.The “lifecycle” approach will allow the agency to take into account hundreds of reports of water contamination in gas drilling fields across the country. Although the agency hasn’t settled on the exact details, researchers could examine both underground and surface water supplies, gas well construction errors, liquid waste disposal issues and chemical storage plans as part of its assessment.

Oil Industry learns nothing from the BP Environmental Disaster,Opposes California’s Green Laws and Ban of Drilling

23 Jun, 2010

Climate Change,Oil,Renewable Energy,USA

The Oil Industry which had gone on the defensive with questions being raised about their commitment towards environment and society has learned nothing from the BP Oil Spill.This disaster had brought the lies,deception and corruption of Oil Giant BP in plain sight of everyone.However the strong civil society backlash has failed to reform the Oil Companies.Andarko is trying to shirk responsibility towards its legitimate payments towards the Gulf Oil Disaster.And even as the strong public reaction against the biggest ecological disaster in US history continues,Oil Companies are using their massive cash warchests to fund opposition to Green Efforts.The Oil Lobby is now trying to stop a California Law AB32 which would limit the emission of GHGs from the states oil refiners and industries.It also mandates Renewable Energy to meet 30% of California’s Energy Demand by 2020 from rought 15% at present.

Texas Oil Refiners Valero Energy and Tesoro Corp are at the forefront of the battle against the environmental groups and the large Clean Technology industry.This Green Law has become a key issue in the California Elections in November 2010.A defeat of this Green Law in one of the most Clean Tech supporting states would be a great victory for the Oil Industry against supporters of a cleaner and greener future.Huge amount of money is being spent by both sides to win over the electorate.Valero Energy is the biggest oil refiner in the United States and is the one of the biggest fighters against Federal Climate Legislation.Note Valero Energy has already bought up substantial biofuel capacity and research in order to hedge its losses.The current cat fight shows that the US still remains moribund and stuck in its climate change fighting efforts.The Oil Lobby in contrast still remains strong as ever.

Bid to suspend California’s global warming law qualifies for November ballot – LA Times

California headed for a high-stakes battle over global warming Tuesday, as an oil industry-backed measure to suspend the state’s aggressive climate-change law qualified for the November ballot.The fight will pit the state’s powerful environmental organizations and clean-tech businesses against the oil and manufacturing industries. It also arrays many conservative political leaders, including the GOP nominee for governor, Meg Whitman, against Gov. Arnold Schwarzenegger, a fellow Republican who regards the global warming law as a key part of his legacy.Whitman has said she would suspend the global-warming law for one year but has not endorsed the initiative.

The measure, launched six months ago by Texas oil giants Valero Energy Inc. and Tesoro Corp., comes as the industry has fallen under intense scrutiny in the wake of the Gulf of Mexico oil spill disaster.Under California’s law, known as AB 32, the state is setting limits on greenhouse gas emissions from automobiles, oil refineries and other industries, and will probably require that a third of the state’s electricity come from renewable sources by 2020, up from about 15% today. New rules under the law would encourage sales of more fuel-efficient cars.

Oil Drilling Ban Overturned by US Court

The Oil Industry has also managed a minor victory by getting a US District Judge to overturn the Oil Drilling Ban put in place after the BP Oil Spill.The 6 month moratarium would have reexamined the safety regulations which had been compromised by the Regulator and Oil Companies.However the Oil Companies are oblivious to the massive damage being suffered by humans and wildlife alike as they can’t seem to wait to drill more Oil.The reason given is the loss in jobs and profits which does not make sense.The catastrophic loss of life,jobs and revenues from the BP Oil Spill is far larger.Not to wait to examine the causes of the disaster to prevent a repeat is grossly if not criminally negligent.

Judge rejects U.S. deep-water oil drilling ban – SF Chronicle

A federal judge on Tuesday struck down the Obama administration’s six-month ban on deep-water drilling and rebuked the government for “arbitrarily” imposing a moratorium that would cause “irreparable harm to businesses” along the Gulf Coast.

Interior Secretary Ken Salazar said Tuesday night that he will issue a new order against such drilling, which he said would eliminate “any doubt that a moratorium is needed, appropriate and within our authorities.”

The decision by U.S. District Judge Martin Feldman in New Orleans was a major defeat for President Obama, who imposed the ban last month in the wake of the Deepwater Horizon disaster.

The administration had argued that the ban would give an independent commission time to investigate what caused the rig to explode in the Gulf of Mexico on April 20, killing 11 people and unleashing the nation’s worst oil spill.