China goes ahead with reserves push
China has approved a plan to build a second phase of state crude reserves and construction will begin this year, Zhang Guobao, head of the National Energy Administration, said today.
China aims eventually to meet the OECD standard of stockpiling enough oil to cover 90 days of consumption, which has prevented the world's second-largest oil consuming country from joining the International Energy Agency, he said.
"I have often been asked why we haven't joined the IEA. It's not because we don't want to join the IEA, but we're not allowed to join because there is a criterion to have oil reserves equal to 90 days of consumption," Zhang said in an interview, reported Reuters.
Friday, June 5, 2009
Saturday, May 30, 2009
Still valid: Obama Embraces ‘Green Path’ in Stimulus Plan to Aid Environment
Obama Embraces ‘Green Path’ in Stimulus Plan to Aid Environment
2008-12-02 05:01:35.0 GMT
By Lorraine Woellert
Dec. 2 (Bloomberg) -- President-elect Barack Obama is considering a stimulus package that will include a heavy dose of spending on environmentally friendly projects aimed at creating “green-collar jobs” and saving energy.
While the package will focus on short-term outlays for traditional infrastructure projects to jumpstart an economy now officially declared to be in recession, it will also include longer-term measures to safeguard the environment.
“Clean energy is going to be a foundation for rebuilding the American economy,” said Bracken Hendricks, an analyst at the Democratic-leaning Center for American Progress and an adviser to the presidential-transition team. Generating jobs in concert with cutting pollution will be “a major component” of any economic-recovery plan, Hendricks said.
Obama wants to enact a recovery package soon after his inauguration as “evidence suggests the pace of this downturn is accelerating,” Lawrence Summers, the president-elect’s pick for White House economic adviser, said yesterday. Opinions vary over how big the stimulus should be, with Senate Majority Leader Harry Reid saying $500 billion would be sufficient, while Senators Dick Durbin of Illinois, Obama’s closest Senate ally, and Charles Schumer of New York argue that an infusion of as much as $700 billion is warranted.
Obama adviser Jared Bernstein and other economists say that money could help fund at least $50 billion in environmentally sound infrastructure projects that could be up and running within a few months. Among the steps along the “green path,” Bernstein said, could be a requirement that repairs made to public buildings be environmentally friendly.
‘Greenest Way Possible’
“Almost any major infrastructure project is going to be done in the greenest way possible,” said Alice Rivlin, a former vice chairman of the Federal Reserve who has spoken with members of the transition team about the package. “There will be spending for quick-starting infrastructure as well as for larger, better-thought-out programs over several years.”
A critical mass of support for clean-energy spending and green-collar-job creation is building among environmentalists, labor groups, local governments and companies such as Google Inc. and American Electric Power Co., the biggest U.S. producer of electricity from coal.
The loosely knit coalition is advocating for what Hendricks calls a “green recovery” stimulus that would create jobs with an eye toward conserving resources and reducing reliance on fossil fuels such as coal and oil.
School repairs, for example, could be required to meet green building standards, including low-energy boilers and weatherization. Transportation spending could emphasize public transit, and support for new power sources such as wind and energy could go hand in hand with spending on an efficient electricity superhighway.
Public Transit
Ideas include $2 billion in spending on public transit to reduce fares and expand service, $5 billion in renewable-energy bonds for consumer-owned utilities, $2.5 billion to buy and scrap old polluting cars, and $900 million to help weatherize 1 million homes.
Google is among the companies lobbying for long-term tax rebates for renewable energy as well as federal investment in electric “smart grid” technology that promises to lower energy use by creating two-way communication between energy providers and consumers.
Both provisions would create high-technology jobs, said Harry Wingo, energy policy counsel for Google, which has been meeting with Obama advisers and Capitol Hill lawmakers.
More Jobs
Green-jobs provisions “are going to lead to more job creation here and put us in a better spot to compete for the global market in clean energy,” Wingo said.
Other ideas include regulatory changes that could lead to less energy use and electricity-infrastructure improvements, said Susan Tomasky, president of AEP Transmission in Toledo.
The idea is to build new and better transmission lines to link the sunniest and windiest regions to the national grid.
AEP is among companies pushing for stimulus language that would make it easier to finance and site electricity infrastructure. It also wants Obama to formalize his campaign’s embrace of “an interstate highway system for transmission.”
“Obama gets that you can’t just build windmills and wish for the power to get where it needs to go,” Tomasky said. “It is all about infrastructure.”
Not everyone is cheering the move toward green jobs. The U.S. Chamber of Commerce and the conservative Heritage Foundation have criticized the concept as big-government spending that would do little to stimulate growth.
‘Crisis du Jour’
“The people who have wanted these green initiatives are wrapping them up in the crisis du jour, the stimulus,” said David Kreutzer, a senior policy analyst at Heritage in Washington. “You have to pull resources out of some other part of the economy for government to spend it on green jobs. You don’t get a net job increase.”
Nonetheless, businesses are lining up behind the idea. In addition to big power consumers such as Google and utilities such as AEP, venture capitalists such as Kleiner Perkins Caufield & Byers support the green jobs concept and are lobbying for green provisions to be included in the stimulus.
“There’s a clear majority who want to do this,” said Michael Eckhart, president of the American Council On Renewable Energy, a Washington-based group of business leaders, academics and venture capitalists.
‘Huge Opportunity’
Even the simplest ideas could save energy and create jobs, said Jason Saragian, a spokesman for Owens Corning Inc., a Toledo, Ohio-based maker of insulation as well as material used in wind turbine blades. The company is pushing for tax breaks to encourage retrofitting of older buildings.
“There are 80 million underinsulated homes in the United States,” Saragian said. Buildings emit 42 percent of the nation’s greenhouse gasses. Weatherization “is a huge opportunity” to cut energy use, Saragian said.
State and city leaders are also making a pitch.
Pennsylvania Governor Edward Rendell, chairman of the National Governors Association, said a stimulus should consist of increased spending on programs such as unemployment compensation, federal aid to states, and infrastructure for renewable energy. “There are upwards of $136 billion worth of projects ready to go,” Rendell told reporters.
The U.S. Conference of Mayors has its own list of some $25 billion worth of infrastructure projects that could be completed in 2009.
“The challenge is to make a green stimulus actually green,” said Dan Becker, a consultant with the Safe Climate Campaign, a Washington-based clean-air advocacy group. “The more road building you have the blacker it gets.”
For Related News:
For Stories on Stimulus Proposals: STNI ECONSTIM For Stories on the Environment: NI ENV
--With reporting by Matthew Benjamin and Richard Miller in Washington. Editors: Mark McQuillan, Robin Meszoly.
To contact the reporter on this story:
Lorraine Woellert in Washington at +1-202-624-1963 or lwoellert@bloomberg.net.
To contact the editor responsible for this story:
Michael Forsythe at +1-202-624-1940 or
mforsythe@bloomberg.net.
2008-12-02 05:01:35.0 GMT
By Lorraine Woellert
Dec. 2 (Bloomberg) -- President-elect Barack Obama is considering a stimulus package that will include a heavy dose of spending on environmentally friendly projects aimed at creating “green-collar jobs” and saving energy.
While the package will focus on short-term outlays for traditional infrastructure projects to jumpstart an economy now officially declared to be in recession, it will also include longer-term measures to safeguard the environment.
“Clean energy is going to be a foundation for rebuilding the American economy,” said Bracken Hendricks, an analyst at the Democratic-leaning Center for American Progress and an adviser to the presidential-transition team. Generating jobs in concert with cutting pollution will be “a major component” of any economic-recovery plan, Hendricks said.
Obama wants to enact a recovery package soon after his inauguration as “evidence suggests the pace of this downturn is accelerating,” Lawrence Summers, the president-elect’s pick for White House economic adviser, said yesterday. Opinions vary over how big the stimulus should be, with Senate Majority Leader Harry Reid saying $500 billion would be sufficient, while Senators Dick Durbin of Illinois, Obama’s closest Senate ally, and Charles Schumer of New York argue that an infusion of as much as $700 billion is warranted.
Obama adviser Jared Bernstein and other economists say that money could help fund at least $50 billion in environmentally sound infrastructure projects that could be up and running within a few months. Among the steps along the “green path,” Bernstein said, could be a requirement that repairs made to public buildings be environmentally friendly.
‘Greenest Way Possible’
“Almost any major infrastructure project is going to be done in the greenest way possible,” said Alice Rivlin, a former vice chairman of the Federal Reserve who has spoken with members of the transition team about the package. “There will be spending for quick-starting infrastructure as well as for larger, better-thought-out programs over several years.”
A critical mass of support for clean-energy spending and green-collar-job creation is building among environmentalists, labor groups, local governments and companies such as Google Inc. and American Electric Power Co., the biggest U.S. producer of electricity from coal.
The loosely knit coalition is advocating for what Hendricks calls a “green recovery” stimulus that would create jobs with an eye toward conserving resources and reducing reliance on fossil fuels such as coal and oil.
School repairs, for example, could be required to meet green building standards, including low-energy boilers and weatherization. Transportation spending could emphasize public transit, and support for new power sources such as wind and energy could go hand in hand with spending on an efficient electricity superhighway.
Public Transit
Ideas include $2 billion in spending on public transit to reduce fares and expand service, $5 billion in renewable-energy bonds for consumer-owned utilities, $2.5 billion to buy and scrap old polluting cars, and $900 million to help weatherize 1 million homes.
Google is among the companies lobbying for long-term tax rebates for renewable energy as well as federal investment in electric “smart grid” technology that promises to lower energy use by creating two-way communication between energy providers and consumers.
Both provisions would create high-technology jobs, said Harry Wingo, energy policy counsel for Google, which has been meeting with Obama advisers and Capitol Hill lawmakers.
More Jobs
Green-jobs provisions “are going to lead to more job creation here and put us in a better spot to compete for the global market in clean energy,” Wingo said.
Other ideas include regulatory changes that could lead to less energy use and electricity-infrastructure improvements, said Susan Tomasky, president of AEP Transmission in Toledo.
The idea is to build new and better transmission lines to link the sunniest and windiest regions to the national grid.
AEP is among companies pushing for stimulus language that would make it easier to finance and site electricity infrastructure. It also wants Obama to formalize his campaign’s embrace of “an interstate highway system for transmission.”
“Obama gets that you can’t just build windmills and wish for the power to get where it needs to go,” Tomasky said. “It is all about infrastructure.”
Not everyone is cheering the move toward green jobs. The U.S. Chamber of Commerce and the conservative Heritage Foundation have criticized the concept as big-government spending that would do little to stimulate growth.
‘Crisis du Jour’
“The people who have wanted these green initiatives are wrapping them up in the crisis du jour, the stimulus,” said David Kreutzer, a senior policy analyst at Heritage in Washington. “You have to pull resources out of some other part of the economy for government to spend it on green jobs. You don’t get a net job increase.”
Nonetheless, businesses are lining up behind the idea. In addition to big power consumers such as Google and utilities such as AEP, venture capitalists such as Kleiner Perkins Caufield & Byers support the green jobs concept and are lobbying for green provisions to be included in the stimulus.
“There’s a clear majority who want to do this,” said Michael Eckhart, president of the American Council On Renewable Energy, a Washington-based group of business leaders, academics and venture capitalists.
‘Huge Opportunity’
Even the simplest ideas could save energy and create jobs, said Jason Saragian, a spokesman for Owens Corning Inc., a Toledo, Ohio-based maker of insulation as well as material used in wind turbine blades. The company is pushing for tax breaks to encourage retrofitting of older buildings.
“There are 80 million underinsulated homes in the United States,” Saragian said. Buildings emit 42 percent of the nation’s greenhouse gasses. Weatherization “is a huge opportunity” to cut energy use, Saragian said.
State and city leaders are also making a pitch.
Pennsylvania Governor Edward Rendell, chairman of the National Governors Association, said a stimulus should consist of increased spending on programs such as unemployment compensation, federal aid to states, and infrastructure for renewable energy. “There are upwards of $136 billion worth of projects ready to go,” Rendell told reporters.
The U.S. Conference of Mayors has its own list of some $25 billion worth of infrastructure projects that could be completed in 2009.
“The challenge is to make a green stimulus actually green,” said Dan Becker, a consultant with the Safe Climate Campaign, a Washington-based clean-air advocacy group. “The more road building you have the blacker it gets.”
For Related News:
For Stories on Stimulus Proposals: STNI ECONSTIM
--With reporting by Matthew Benjamin and Richard Miller in Washington. Editors: Mark McQuillan, Robin Meszoly.
To contact the reporter on this story:
Lorraine Woellert in Washington at +1-202-624-1963 or lwoellert@bloomberg.net.
To contact the editor responsible for this story:
Michael Forsythe at +1-202-624-1940 or
mforsythe@bloomberg.net.
Friday, May 29, 2009
Investing in clean energy
Greenhouse emissions endanger human health: EPAOn Friday, April 17th, the U.S. Environmental Protection Agency (EPA) officially reported that greenhouse gas emissions put the health and welfare of human beings in danger.
Specifically, the EPA stated that "greenhouse gases in the atmosphere endanger the public health and welfare of current and future generations".
Stating the obvious, the EPA also declared that human activities advance global warming. On this topic, the agency reported that "these high atmospheric levels are the unambiguous result of human emissions, and are very likely the cause of the observed increase in average temperatures and other climactic changes".
There are six greenhouse gases in total endangering health and contributing to global warming. The agency specified that carbon dioxide is a main concern and is released by natural human-made sources such as coal-fired power plants, oil refineries, and fossil-fueled vehicles.
The five others reported are methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
The official reporting of this cleared the way for U.S. regulation, although it will not automatically come into play due to the following 60-day comment period.
The U.N. and Climate ChangeU.N. Secretary-General Ban Ki-moon recently declared solving the world wide water crisis a top priority. Since then, he has been drumming up support for solving another serious issue--climate change. According to Ban, global warming could cost the world upwards of $20 trillion over two decades "to place the world on a markedly different and sustainable energy trajectory." Now, a third grader could tell that $20 trillion over 20 years means an average investment of $1 trillion per year. But current U.N. statistics indicate that the global energy industry invests only $300 billion annually in new plants, grid improvement and other new technologies.Naturally, that leaves a $700 billion pair of shoes to fill every year for the next twenty.But where are the additional monies going to come from?Welcome to the Age of Green EconomicsWell, for starters, we'll begin to see not only clean energy dollars, but also efficiency and retrofit dollars pouring into the sector. As outlined earlier, fossil fuel-burning plants are going to have to start blocking their emissions, and not by simply investing in other clean projects. All those dollars should be included in the tally.Beyond that, Ban believes "We're now on the threshold of another (transformation) -- the age of green economics.
Businesspeople in so many parts of the world are demanding clear and consistent policies on climate change--global policies for a global problem."He continued, "With the right financial incentives and a global framework, we can steer economic growth in a low-carbon direction."
And he's right. Have you noticed what's going on around you? Here's a sneak peak:
Cleantech Group: Clean technology venture capital investments in 1Q09 were down 41 percent from the previous quarter, and down 48 percent from the same period a year ago. Venture investments have now declined for two consecutive quarters since peaking at $2.6 billion in 3Q08, representing the lowest level of venture capital investment in clean technology companies in two years. Despite these disappointing figures, government stimulus spending levels are currently at record rates, and capital is emerging for cleantech from non-traditional sources.
The WilderHill clean energy index--an index of 88 clean energy stocks worldwide is recovering from a previous slump by 45%, and is still on the rise.
According to research firm New Energy Finance, global investments in energy technologies-including venture capital, project finance, public markets, and research and development-expanded by 4.7 percent from $148.4 billion in 2007 to $155.4 billion in 2008. Due to the credit crisis, 2009 may not exhibit the same growth, but energy intelligence will increase government spending.
Growing IPOs--like Iberdrola spin-off Iberdrola Renovables IBR (MCE: IBR).
Emissions rules have become a main concern for companies. Thus, by 2012 it is estimated that Greenhouse Gas Emissions trading markets could be worth $2 Trillion.
Installed wind capacity grew 50% at the end of 2008.
Countries are already claiming carbon neutral status. Many in Hawaii have already shifted to solar.
Philippines phasing out incandescent bulbs completely by 2010.
Cambridge Energy Research Associates: Study Suggests That, Unlike in the '70s, Energy Lessons Will Last.
Financial Times: Alternative Energy Fuels Long-term Opportunity.
By 2020, the European Union wants renewable energy to represent 20 per cent of the total energy mix.
Folks, those are just recent headlines. As I've said before, the numbers are only going to get bigger as more projects and technologies are pursued. And all of those projects are going to create. . . Green Collar JobsThe economic stimulus package signed by President Obama in February of this year aims to create and save 3.5 million jobs over the next two years. A sizable chunk of these opportunities are expected to be green collar jobs with allocations in the stimulus for broad ranged environmental spending.University of Massachusetts economist Robert Pollin praised this environmentally focused stimulus package shortly after it was signed. In an issue of Nation magazine, he stated, "The central facts here are irrefutable: spending the same amount of money on building a clean energy economy will create three times more jobs within the US than would spending on our existing fossil fuel infrastructure. The transformation to a clean energy economy can therefore serve as a major long-term engine of job creation".
Three Reasons Cleantech Will Make You Money
Reason #1: Favorable Legislation
Other newsletters seem to think that "coal and crude oil are the cheapest thing we've got." To think that is to be completely blind to the current legislative environment.
The President has laid out the goal of doubling our use of renewable energy in the next three years. And he's committed to laying 3,000 miles of new power lines to do it. All those activities create profitable market opportunities.
The recently-passed stimulus has a $47 billion cleantech portion that creates tax-based incentives that will lure additional capital back to these markets and renew robust demand.
Congressional leaders have also indicated they intend to pass new energy legislation before the Memorial Day break. That legislation is slated to contain two provisions that will change the energy market as we know it.
The first, cap-and-trade, will make it much more expensive to generate electricity with coal-and make renewables cost-competitive in most markets. The budget currently before Congress allocates $15 billion in revenue per year from such a scheme. Part of that revenue would go to taxpayers to offset the rising cost of energy and part would go to funding new renewable energy projects.
I don't know where you'd get the idea that coal is the "cheapest thing we've got." Wind and solar are now competitive in many areas. And Obama has been quoted saying, "if somebody wants to build a coal plant, they can - it's just that it will bankrupt them, because they are going to be charged a huge sum for all that greenhouse gas that's being emitted." Doesn't sound too cheap to me.
The second coming energy provision, a national renewable portfolio standard (RPS), would require utilities to generate a certain percentage of their electricity-probably 20% by 2021-from renewable resources. That would create guaranteed minimum demand for wind, solar, and geothermal at much higher level than presently seen-driving up stock prices and your bottom line in the process.
Reason #2: The Non-U.S. Market
Several companies (most of which my Alternative Energy Speculator readers are well-positioned in) have indicated that credit markets are starting to thaw in Europe. The German state development bank (Germany has the largest solar market in the world) KfW has indicated that financing is once again flowing for high quality projects, and new deals will be complete in time for installation by year's end.
Strong solar growth is also slated for Mediterranean countries, which boast some of the highest retail electricity rates in the world. The Italian solar market alone is slated to grow over 3,100% between now and 2015, from 190 MW to 6.2 GW.
As a whole, the global solar market is expected to grow 374% in the same time, from 15.22 GW to 72.17 GW.
And the global wind market is no different. Europe and Asia account for 76.4% of total installations to date, with 54.8% and 21.6%, respectively. Globally, the wind industry will grow 143% by 2015, from 121 GW to 294.2 GW.
The companies providing those solar panels and wind turbines are slated for equally impressive growth-much to the contrary of other observers. And you can harness that growth for your portfolio.
Reason #3: The Alternative Energy Speculator
Of course you can't make money in clean energy if you're constantly misled by other newsletters that don't know enough about it to make profitable recommendations. (As such, they just dismiss it entirely.)
Sure, times are tough. But there's still money to be made when you're being guided by someone who knows the nuances of a specific industry-especially one that's in for such staggering future growth.
Already this year, readers of the Alternative Energy Speculator have closed out five winning plays for total winnings of 121.85%, simply by following my advice on how to play the clean energy market.
That's an average gain of over 24% per closed position. . . all while the market tanked to its lowest levels in more than a decade. And we're ready to cash out on a handful of other plays at any moment.
Indeed, clean energy does make sense-both as an energy source and an investment vehicle-as long as you understand the complex associated industries and are willing to follow expert advice, not the ramblings of energy neophytes.
Specifically, the EPA stated that "greenhouse gases in the atmosphere endanger the public health and welfare of current and future generations".
Stating the obvious, the EPA also declared that human activities advance global warming. On this topic, the agency reported that "these high atmospheric levels are the unambiguous result of human emissions, and are very likely the cause of the observed increase in average temperatures and other climactic changes".
There are six greenhouse gases in total endangering health and contributing to global warming. The agency specified that carbon dioxide is a main concern and is released by natural human-made sources such as coal-fired power plants, oil refineries, and fossil-fueled vehicles.
The five others reported are methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
The official reporting of this cleared the way for U.S. regulation, although it will not automatically come into play due to the following 60-day comment period.
The U.N. and Climate ChangeU.N. Secretary-General Ban Ki-moon recently declared solving the world wide water crisis a top priority. Since then, he has been drumming up support for solving another serious issue--climate change. According to Ban, global warming could cost the world upwards of $20 trillion over two decades "to place the world on a markedly different and sustainable energy trajectory." Now, a third grader could tell that $20 trillion over 20 years means an average investment of $1 trillion per year. But current U.N. statistics indicate that the global energy industry invests only $300 billion annually in new plants, grid improvement and other new technologies.Naturally, that leaves a $700 billion pair of shoes to fill every year for the next twenty.But where are the additional monies going to come from?Welcome to the Age of Green EconomicsWell, for starters, we'll begin to see not only clean energy dollars, but also efficiency and retrofit dollars pouring into the sector. As outlined earlier, fossil fuel-burning plants are going to have to start blocking their emissions, and not by simply investing in other clean projects. All those dollars should be included in the tally.Beyond that, Ban believes "We're now on the threshold of another (transformation) -- the age of green economics.
Businesspeople in so many parts of the world are demanding clear and consistent policies on climate change--global policies for a global problem."He continued, "With the right financial incentives and a global framework, we can steer economic growth in a low-carbon direction."
And he's right. Have you noticed what's going on around you? Here's a sneak peak:
Cleantech Group: Clean technology venture capital investments in 1Q09 were down 41 percent from the previous quarter, and down 48 percent from the same period a year ago. Venture investments have now declined for two consecutive quarters since peaking at $2.6 billion in 3Q08, representing the lowest level of venture capital investment in clean technology companies in two years. Despite these disappointing figures, government stimulus spending levels are currently at record rates, and capital is emerging for cleantech from non-traditional sources.
The WilderHill clean energy index--an index of 88 clean energy stocks worldwide is recovering from a previous slump by 45%, and is still on the rise.
According to research firm New Energy Finance, global investments in energy technologies-including venture capital, project finance, public markets, and research and development-expanded by 4.7 percent from $148.4 billion in 2007 to $155.4 billion in 2008. Due to the credit crisis, 2009 may not exhibit the same growth, but energy intelligence will increase government spending.
Growing IPOs--like Iberdrola spin-off Iberdrola Renovables IBR (MCE: IBR).
Emissions rules have become a main concern for companies. Thus, by 2012 it is estimated that Greenhouse Gas Emissions trading markets could be worth $2 Trillion.
Installed wind capacity grew 50% at the end of 2008.
Countries are already claiming carbon neutral status. Many in Hawaii have already shifted to solar.
Philippines phasing out incandescent bulbs completely by 2010.
Cambridge Energy Research Associates: Study Suggests That, Unlike in the '70s, Energy Lessons Will Last.
Financial Times: Alternative Energy Fuels Long-term Opportunity.
By 2020, the European Union wants renewable energy to represent 20 per cent of the total energy mix.
Folks, those are just recent headlines. As I've said before, the numbers are only going to get bigger as more projects and technologies are pursued. And all of those projects are going to create. . . Green Collar JobsThe economic stimulus package signed by President Obama in February of this year aims to create and save 3.5 million jobs over the next two years. A sizable chunk of these opportunities are expected to be green collar jobs with allocations in the stimulus for broad ranged environmental spending.University of Massachusetts economist Robert Pollin praised this environmentally focused stimulus package shortly after it was signed. In an issue of Nation magazine, he stated, "The central facts here are irrefutable: spending the same amount of money on building a clean energy economy will create three times more jobs within the US than would spending on our existing fossil fuel infrastructure. The transformation to a clean energy economy can therefore serve as a major long-term engine of job creation".
Three Reasons Cleantech Will Make You Money
Reason #1: Favorable Legislation
Other newsletters seem to think that "coal and crude oil are the cheapest thing we've got." To think that is to be completely blind to the current legislative environment.
The President has laid out the goal of doubling our use of renewable energy in the next three years. And he's committed to laying 3,000 miles of new power lines to do it. All those activities create profitable market opportunities.
The recently-passed stimulus has a $47 billion cleantech portion that creates tax-based incentives that will lure additional capital back to these markets and renew robust demand.
Congressional leaders have also indicated they intend to pass new energy legislation before the Memorial Day break. That legislation is slated to contain two provisions that will change the energy market as we know it.
The first, cap-and-trade, will make it much more expensive to generate electricity with coal-and make renewables cost-competitive in most markets. The budget currently before Congress allocates $15 billion in revenue per year from such a scheme. Part of that revenue would go to taxpayers to offset the rising cost of energy and part would go to funding new renewable energy projects.
I don't know where you'd get the idea that coal is the "cheapest thing we've got." Wind and solar are now competitive in many areas. And Obama has been quoted saying, "if somebody wants to build a coal plant, they can - it's just that it will bankrupt them, because they are going to be charged a huge sum for all that greenhouse gas that's being emitted." Doesn't sound too cheap to me.
The second coming energy provision, a national renewable portfolio standard (RPS), would require utilities to generate a certain percentage of their electricity-probably 20% by 2021-from renewable resources. That would create guaranteed minimum demand for wind, solar, and geothermal at much higher level than presently seen-driving up stock prices and your bottom line in the process.
Reason #2: The Non-U.S. Market
Several companies (most of which my Alternative Energy Speculator readers are well-positioned in) have indicated that credit markets are starting to thaw in Europe. The German state development bank (Germany has the largest solar market in the world) KfW has indicated that financing is once again flowing for high quality projects, and new deals will be complete in time for installation by year's end.
Strong solar growth is also slated for Mediterranean countries, which boast some of the highest retail electricity rates in the world. The Italian solar market alone is slated to grow over 3,100% between now and 2015, from 190 MW to 6.2 GW.
As a whole, the global solar market is expected to grow 374% in the same time, from 15.22 GW to 72.17 GW.
And the global wind market is no different. Europe and Asia account for 76.4% of total installations to date, with 54.8% and 21.6%, respectively. Globally, the wind industry will grow 143% by 2015, from 121 GW to 294.2 GW.
The companies providing those solar panels and wind turbines are slated for equally impressive growth-much to the contrary of other observers. And you can harness that growth for your portfolio.
Reason #3: The Alternative Energy Speculator
Of course you can't make money in clean energy if you're constantly misled by other newsletters that don't know enough about it to make profitable recommendations. (As such, they just dismiss it entirely.)
Sure, times are tough. But there's still money to be made when you're being guided by someone who knows the nuances of a specific industry-especially one that's in for such staggering future growth.
Already this year, readers of the Alternative Energy Speculator have closed out five winning plays for total winnings of 121.85%, simply by following my advice on how to play the clean energy market.
That's an average gain of over 24% per closed position. . . all while the market tanked to its lowest levels in more than a decade. And we're ready to cash out on a handful of other plays at any moment.
Indeed, clean energy does make sense-both as an energy source and an investment vehicle-as long as you understand the complex associated industries and are willing to follow expert advice, not the ramblings of energy neophytes.
Wednesday, May 27, 2009
Natual gas from coal
Natural gas from coal (NGC), also known as coalbed methane (CBM), is simply the natural gas formed and trapped in coalbeds. NGC is generated during the coalification process that transforms organic material such as peat bogs into coal.
In coal seams, the methane can occur as "dry" gas or be associated with saltwater or freshwater. The most common production method uses wells drilled into the naturally fractured coal seams. Dry gas can be produced like conventional natural gas. If the gas is associated with water, the wells initially remove water from the coal, but eventually methane is freed from the coal as the pressure and surface tension are lowered. The disadvantage is the long time period before significant gas production begins and the need to dispose of the water, usually by injection into deep wells beneath existing groundwater aquifiers. Researchers are investigating other means of freeing the methane from the coal, including the injection of carbon dioxide (ECBM), which could also provide a way to reduce greenhouse gas emissions.
Versatility is the hallmark of natural gas. It is the leading source of heat for homes and business around the world. Generating electricity from natural gas is one of the fastest-growing uses of this clean-burning fuel. Natural gas is widely used for manufacturing. It is vitally important in making cement, processing forest products and manufacturing steel. Natural gas is a key raw material in the fertilizer and petrochemical industries and provides energy and hydrogen for the production of synthetic crude oil from oil sands bitumen.
Natural gas liquids - ethane, propane, butane and condensates (pentanes and heavier hydrocarbons) produces along with natural gas - are used as fuels for heating and motor vehicles, and are a primary source of methane and feedstocks for petrochemicals and oil refining.
In coal seams, the methane can occur as "dry" gas or be associated with saltwater or freshwater. The most common production method uses wells drilled into the naturally fractured coal seams. Dry gas can be produced like conventional natural gas. If the gas is associated with water, the wells initially remove water from the coal, but eventually methane is freed from the coal as the pressure and surface tension are lowered. The disadvantage is the long time period before significant gas production begins and the need to dispose of the water, usually by injection into deep wells beneath existing groundwater aquifiers. Researchers are investigating other means of freeing the methane from the coal, including the injection of carbon dioxide (ECBM), which could also provide a way to reduce greenhouse gas emissions.
Versatility is the hallmark of natural gas. It is the leading source of heat for homes and business around the world. Generating electricity from natural gas is one of the fastest-growing uses of this clean-burning fuel. Natural gas is widely used for manufacturing. It is vitally important in making cement, processing forest products and manufacturing steel. Natural gas is a key raw material in the fertilizer and petrochemical industries and provides energy and hydrogen for the production of synthetic crude oil from oil sands bitumen.
Natural gas liquids - ethane, propane, butane and condensates (pentanes and heavier hydrocarbons) produces along with natural gas - are used as fuels for heating and motor vehicles, and are a primary source of methane and feedstocks for petrochemicals and oil refining.
Shale gas
Shale gas is produce from shale. Shale gas has become an increasingly more important source of natural gas in the United States over the past decade, and interest has spread to potential gas shales in Canada and Europe. Analysts expect shale gas to supply half the natural gas production in North America by 2020.Shale gas is one of a number of “unconventional” sources of natural gas; other unconventional sources of natural gas include coalbed methane, tight sandstones, and methane hydrates. Shale gas areas are often known resource plays (as opposed to exploration plays). The geological risk of not finding petro9leum is low in resource plays, but the potential profits per well are usually also lower.Shale has low matrix permeability, so gas production in commercial quantities requires fractures to provide permeability. Shale gas has been produces for years from shales with natural fractures; the shale gas boom in recent years has been due to modern technology in hydraulic fracturing to create extensive artificial fractures around well bores.Shales that host economic quantities of gas have a number of common properties. To date, almost all successful shale gas wells have been in rocks of Paleozoic age, but shales of other ages are being evaluated, particularly in Cretaceous shales in Rocky Mt. basins. The prices required to make drilling and producing shale gas economic are different for each shale area.
China Digs into Coalbed Methane
China Digs into Coalbed Methane
In order to meet the rising demand for energy, China has quickened its pace in developing coalbed methane (CBM), a clean fuel.
CBM is more commonly known as coalmine gas. With components similar to natural gas, it is a practical and reliable alternative energy source, said Sun Maoyuan, president of China United Coalbed Methane Co Ltd.
"Last year our company drilled 391 CBM wells in the nation," he said. "And we achieved the production capacity of 200 million cubic meters. This year we aim to drill more than 400 wells and increase our production capacity to 450 million cubic meters."
China started to develop CBM in the 1990s. Established in 1996, China United Coalbed Methane has exclusive rights to form Sino-foreign cooperation to explore, develop and produce CBM in the country.
Last year, the National Development and Reform Commission (NDRC), China's top economic planning body, drafted a five-year plan for the development of CBM.
Under the blueprint, China is to increase its annual CBM output to 10 billion cubic meters in 2010. The country will explore and locate an additional 300 billion cubic meters of CBM reserves by 2010. An industrial system will be gradually set up to develop and utilize CBM.
In January, the NDRC outlined the 11th Five-Year Plan (2006-10) for the coal industry. The development and use of CBM was an important element of this plan.
Also this year, China adopted new preferential tax policies for CBM. Under these new policies, which took effect on January 1, CBM producers will enjoy a full rebate on the value-added tax they pay for CBM production.
Producers will also enjoy corporate income tax exemption on incremental CBM output arising from the application of new technology through research and development funded by their tax rebate.
"These moves will greatly encourage the development and adoption of CBM in China," said Sun. "In 2005 and 2006, China drilled as many CBM wells as it did between 1990 and 2004."
Foreign investment
China boasts 37 trillion cubic meters of CBM reserves, the third largest in the world, after Russia and Canada. No wonder then, an increasing number of foreign companies have the huge Chinese market in their sights.
This month China United Coalbed Methane signed a contract with Hong Kong-based Longmen Hui Cheng Investment Ltd to develop CBM in Northwest China's Shaanxi Province. The two companies will jointly develop the Hancheng block, in Hancheng City. The block covers 460.93 square kilometers and has CBM reserves of 404.87 billion cubic meters, said a company statement.
"It was the 28th such contract that we inked with overseas investors since 1996," said Sun. "We have worked with a number of foreign companies on exploration, mining and processing of CBM, including those from the US, Canada and Australia."
Several foreign companies have been seeking opportunities in China's CBM sector, including Royal Dutch Shell PLC, US-based Asian American Gas and Canada's Ivana Ventures, he said.
Asian American Gas (AAGI), formed by a number of US energy companies and financial institutions, has been working in China's CBM market for over 10 years.
"AAGI has signed two product-sharing contracts (PSC) with China United Coalbed Methane for Panzhuang and Mabi concessions in southern Qinshui Basin of Shanxi Province, the most promising CBM basin in China," said Stephen Zou, president and CEO of AAGI. The company's CBM well in its Panzhuang project produces about 40,000 cubic meters per day, the highest in China, he added.
"Having gained valuable experience working on CBM in China, AAGI and Chinese CBM technical service company Orion have jointly developed the multilateral Drilling (MLD) CBM well in Panzhuang, which has 40 times the productivity of conventional vertical CBM wells in the country," said Zou.
The success of the MLD technology in Panzhuang has triggered enormous enthusiasm in starting a commercial CBM industry in China, he said. "The aim is to increase our production to 200 million cubic meters in 2008," said Zou.
Source:Xinhuanet 2007-5-28
In order to meet the rising demand for energy, China has quickened its pace in developing coalbed methane (CBM), a clean fuel.
CBM is more commonly known as coalmine gas. With components similar to natural gas, it is a practical and reliable alternative energy source, said Sun Maoyuan, president of China United Coalbed Methane Co Ltd.
"Last year our company drilled 391 CBM wells in the nation," he said. "And we achieved the production capacity of 200 million cubic meters. This year we aim to drill more than 400 wells and increase our production capacity to 450 million cubic meters."
China started to develop CBM in the 1990s. Established in 1996, China United Coalbed Methane has exclusive rights to form Sino-foreign cooperation to explore, develop and produce CBM in the country.
Last year, the National Development and Reform Commission (NDRC), China's top economic planning body, drafted a five-year plan for the development of CBM.
Under the blueprint, China is to increase its annual CBM output to 10 billion cubic meters in 2010. The country will explore and locate an additional 300 billion cubic meters of CBM reserves by 2010. An industrial system will be gradually set up to develop and utilize CBM.
In January, the NDRC outlined the 11th Five-Year Plan (2006-10) for the coal industry. The development and use of CBM was an important element of this plan.
Also this year, China adopted new preferential tax policies for CBM. Under these new policies, which took effect on January 1, CBM producers will enjoy a full rebate on the value-added tax they pay for CBM production.
Producers will also enjoy corporate income tax exemption on incremental CBM output arising from the application of new technology through research and development funded by their tax rebate.
"These moves will greatly encourage the development and adoption of CBM in China," said Sun. "In 2005 and 2006, China drilled as many CBM wells as it did between 1990 and 2004."
Foreign investment
China boasts 37 trillion cubic meters of CBM reserves, the third largest in the world, after Russia and Canada. No wonder then, an increasing number of foreign companies have the huge Chinese market in their sights.
This month China United Coalbed Methane signed a contract with Hong Kong-based Longmen Hui Cheng Investment Ltd to develop CBM in Northwest China's Shaanxi Province. The two companies will jointly develop the Hancheng block, in Hancheng City. The block covers 460.93 square kilometers and has CBM reserves of 404.87 billion cubic meters, said a company statement.
"It was the 28th such contract that we inked with overseas investors since 1996," said Sun. "We have worked with a number of foreign companies on exploration, mining and processing of CBM, including those from the US, Canada and Australia."
Several foreign companies have been seeking opportunities in China's CBM sector, including Royal Dutch Shell PLC, US-based Asian American Gas and Canada's Ivana Ventures, he said.
Asian American Gas (AAGI), formed by a number of US energy companies and financial institutions, has been working in China's CBM market for over 10 years.
"AAGI has signed two product-sharing contracts (PSC) with China United Coalbed Methane for Panzhuang and Mabi concessions in southern Qinshui Basin of Shanxi Province, the most promising CBM basin in China," said Stephen Zou, president and CEO of AAGI. The company's CBM well in its Panzhuang project produces about 40,000 cubic meters per day, the highest in China, he added.
"Having gained valuable experience working on CBM in China, AAGI and Chinese CBM technical service company Orion have jointly developed the multilateral Drilling (MLD) CBM well in Panzhuang, which has 40 times the productivity of conventional vertical CBM wells in the country," said Zou.
The success of the MLD technology in Panzhuang has triggered enormous enthusiasm in starting a commercial CBM industry in China, he said. "The aim is to increase our production to 200 million cubic meters in 2008," said Zou.
Source:Xinhuanet 2007-5-28
Tuesday, May 26, 2009
PTR reports: ANNOUNCEMENT OF POTENTIAL NATURAL GAS DISCOVERY
2009-05-21 14:35 ET - News Release
Mr. Ross Gorrell reports
Petromin announced in Stockwatch that Terrawest Energy Corp. (TWE) discovered significant gas-bearing shale and multiple coal seams in its LHG 08-03 well which was drilled in November, 2008.
TWE holds a 47-per-cent interest in a production sharing contract (PSC) with China United Coalbed Methane Corp. Ltd. (CUCBM). The project, called Liuhuanggou, is located in Xinjiang province and the PSC is located adjacent to the capital city of Urumqi. The project covers over 162,000 contiguous acres (TWE approximately 77,000 net acres) in the southern Junggar basin. The Junggar basin is an active hydrocarbon-producing area but no shale gas discoveries have previously been announced.
"The Liuhuanggou project is in an easily accessible area and near existing pipeline infrastructure, which we feel is a significant benefit to future exploration and development prospects," said Ross Gorrell, TWE president and chief executive officer. "TWE has been working to establish a multiplay project at Liuhuanggou for several years and we are excited about the potential of this most recent development."
TWE had previously announced significant coal seam intersections in earlier drilling dating back to 2006. The company intersected Jurassic Xishanyao (J2X) formation coal seams with total thickness of over 40 metres. The J2X is continuous over much of the PSC area and represents a significant coalbed methane (CBM) development opportunity on a stand-alone basis.
The latest discovery is in the underlying and previously unexplored Jurassic Badaowan (J1B) formation. Well LHG 08-03 intersected approximately 350 m of J1B with multiple gaseous coal seams as well as over 170 m of gas-bearing shale before reaching total depth. Preliminary geological reconnaissance of the J1B in surface exposure has indicated potential for significantly greater thicknesses of prospective formations.
"Over the past three to five years the development and production technologies for shale gas have been established and are transferable across sedimentary basins, which we feel could be utilized to further analyze and develop the resource potential of LHG 08-03," said Mr. Gorrell.
The PSC area covers an existing PetroChina oil and gas lease and China National Petroleum Corp. (CNPC) PetroChina employees are members of the co-operative project team. TWE uses CNPC PetroChina for mud logging and specialized geophysical services and is using the services of the CNPC PetroChina Karamay Lab for shale analysis.
2009 program
Based on the 2008 results TWE will initiate further exploration of its Liuhuanggou project lands in the coming weeks to obtain critical shale data, further analyze coalbed methane in coal seams and further study essential reservoir characteristics. The 2009 program will include geological survey of target areas, seismic geophysical survey and drilling of selected locations. The initial drilling program is aimed at confirming gas contents of coal seams, sampling deeper prospective formations, confirming formation thickness and confirming the prospectivity of the J1B.
These shale gas plays have the potential to supply enough gas to satisfy North American demand for the future and are altering the energy balance on a continental scale.
New shale gas discoveries of the same type have implications for countries like China where such new gas supply may provide much needed security and the basis for large-scale conversion of the economy from coal to natural gas.
Mr. Ross Gorrell reports
Petromin announced in Stockwatch that Terrawest Energy Corp. (TWE) discovered significant gas-bearing shale and multiple coal seams in its LHG 08-03 well which was drilled in November, 2008.
TWE holds a 47-per-cent interest in a production sharing contract (PSC) with China United Coalbed Methane Corp. Ltd. (CUCBM). The project, called Liuhuanggou, is located in Xinjiang province and the PSC is located adjacent to the capital city of Urumqi. The project covers over 162,000 contiguous acres (TWE approximately 77,000 net acres) in the southern Junggar basin. The Junggar basin is an active hydrocarbon-producing area but no shale gas discoveries have previously been announced.
"The Liuhuanggou project is in an easily accessible area and near existing pipeline infrastructure, which we feel is a significant benefit to future exploration and development prospects," said Ross Gorrell, TWE president and chief executive officer. "TWE has been working to establish a multiplay project at Liuhuanggou for several years and we are excited about the potential of this most recent development."
TWE had previously announced significant coal seam intersections in earlier drilling dating back to 2006. The company intersected Jurassic Xishanyao (J2X) formation coal seams with total thickness of over 40 metres. The J2X is continuous over much of the PSC area and represents a significant coalbed methane (CBM) development opportunity on a stand-alone basis.
The latest discovery is in the underlying and previously unexplored Jurassic Badaowan (J1B) formation. Well LHG 08-03 intersected approximately 350 m of J1B with multiple gaseous coal seams as well as over 170 m of gas-bearing shale before reaching total depth. Preliminary geological reconnaissance of the J1B in surface exposure has indicated potential for significantly greater thicknesses of prospective formations.
"Over the past three to five years the development and production technologies for shale gas have been established and are transferable across sedimentary basins, which we feel could be utilized to further analyze and develop the resource potential of LHG 08-03," said Mr. Gorrell.
The PSC area covers an existing PetroChina oil and gas lease and China National Petroleum Corp. (CNPC) PetroChina employees are members of the co-operative project team. TWE uses CNPC PetroChina for mud logging and specialized geophysical services and is using the services of the CNPC PetroChina Karamay Lab for shale analysis.
2009 program
Based on the 2008 results TWE will initiate further exploration of its Liuhuanggou project lands in the coming weeks to obtain critical shale data, further analyze coalbed methane in coal seams and further study essential reservoir characteristics. The 2009 program will include geological survey of target areas, seismic geophysical survey and drilling of selected locations. The initial drilling program is aimed at confirming gas contents of coal seams, sampling deeper prospective formations, confirming formation thickness and confirming the prospectivity of the J1B.
These shale gas plays have the potential to supply enough gas to satisfy North American demand for the future and are altering the energy balance on a continental scale.
New shale gas discoveries of the same type have implications for countries like China where such new gas supply may provide much needed security and the basis for large-scale conversion of the economy from coal to natural gas.
Sunday, May 24, 2009
Shares to watch this coming weeks
Petromin resources could be a possitive mover the coming time.
http://www.petromin.ca/
Analys report from fundamental research (may 2009)
http://petromin.ca//sites/petromin/files/media/reports/Petromin_FRC_2009_report.pdf
One to watch.
http://www.petromin.ca/
Analys report from fundamental research (may 2009)
http://petromin.ca//sites/petromin/files/media/reports/Petromin_FRC_2009_report.pdf
One to watch.
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