Just maybe, a few of the legislators were praying for the next oil boom, the way their fathers and grandfathers did. But this oil bust could be different. A growing body of research says that changes in the international oil market, rapid advances in wind- and solar-powered generation and regulations aimed at curbing climate change may hold down the price of oil and natural gas for years or even a decade. That means the fracking-fueled bonanza that pushed American oil production to levels not seen since the early 1970s may be remembered as more than just another high point for the states that depend on the oil industry. It could be the last oil boom. "We've actually hit a point that this isn't your daddy's kind of boom and bust — it's a new set of factors that are influencing demand," said Shanna Cleveland, a manager of the carbon asset risk program at the nonprofit group Ceres. A lot of people disagree with the idea. And even among those who agree, there are different ideas about how a long-term decline in oil demand could happen and, crucially, when it could happen. But if the predictions are accurate, it could mean that even though oil prices are recovering, they may not hit the $100-a-barrel peaks they reached just two summers ago. And it could extend the economic pain that's already rippling across a half-dozen states dependent on taxes on oil production, from Alaska to the Gulf of Mexico. In North Dakota, a handful of small towns took on hundreds of millions in debt to pay for schools, parks and other projects. A prolonged oil bust could send those communities into a downward spiral in which a dwindling population is forced to pay for boom-time debts with a shrinking tax base.
A new report shows Iowa is deriving more than 35 percent of its electricity from wind energy, an increase from statistics made public earlier this year. The American Wind Energy Association says in a report released Thursday that Iowa has increased its percentage of in-state electricity that comes from wind turbines. The data, backed by the U.S. Energy Information Administration, is based on a 12-month rolling average through the end of August 2016. The association says Iowa is now the first state to generate more than one-third of its electricity from wind energy.
Some refiners stand to rake in $1 billion by selling fuel credits, while others must spend millions to comply. Companies including Chevron Corp., Royal Dutch Shell PLC, and BP PLC could reap a total of more than $1 billion this year by selling the renewable fuel credits associated with the ethanol program, according to an analysis commissioned by CVR Energy, a refinery operator controlled by billionaire Carl Icahn, a vocal critic of the rules. The ethanol and biodiesel program, created during President George W. Bush’s administration, was aimed in part at reducing U.S. dependence on foreign oil. But those concerns have waned as a result of the abundant new U.S. oil and gas supplies unlocked by shale drilling. The rules require refiners to either blend ethanol with the gasoline they produce or buy credits. Another area of dispute is the step in the fuel supply chain at which the credits are created. It takes place at the point where ethanol and gasoline are blended. That favors companies that control vast networks of gasoline stations and thus reap more credits than the amount of oil they actually refine into fuel, while disadvantaging smaller refiners without as much of a retail presence.
A drive 30 minutes north of Omaha, Neb., leads to the Fort Calhoun nuclear power plant. It's full of new equipment. There's a white concrete box building that's still under construction. It's licensed until 2033. But the plant is closing Monday. The Fort Calhoun plant cranked out electricity for 43 years, and it was licensed for another 17. Decommissioning will cost up to $1.5 billion, and take up to 60 years to complete. Still, Tim Burke figures eating all of that is cheaper than keeping the plant in production. Burke runs the Omaha Public Power District, which owns Fort Calhoun. He says operating a small plant like this one, especially in a region with abundant wind power and natural gas, just doesn't make sense.
Minnesota - Winona County commissioners on Tuesday ordered the county attorney to finalize language that would make it the first county in Minnesota to ban the highly contentious industry of frac sand mining. After lengthy discussion weighing several options, commissioners voted 3-2 for language that would impose an outright ban on all industrial mineral operations, including frac sand mining, that initially was proposed last spring. A final vote is expected at the board's Nov. 22 meeting. The vote was "a big step forward for the ban" of all frac sand mining in the county, said Johanna Rupprecht of the Land Stewardship Project. Mining supporters in the county have said they're trying to protect private property rights, provide new jobs and preserve the region's chance to cash in on new developments in the nation's oil industry. There are no mine permit applications pending in Winona County, due to a lull in sand mining that reflects a slump in worldwide energy production. Still, the regulation of sand mining in Winona has generated intense interest, with recent public meetings packed with citizens. Sand mining in Minnesota and Wisconsin has boomed and waned along with the oil and gas production practice known as hydrofracking. The particular kind of sand found in parts of southeast Minnesota was in huge demand by exploration companies, which use it to prop open cracks in the underground shale formations that produce oil and natural gas.
Imagine a state that has enacted all of the policies that the public and clean energy providers have asked for: an aggressive renewable portfolio standard, a robust grid modernization plan, far-reaching shared renewables. The sun is shining, the birds are chirping, people are celebrating and getting ready to build new projects -- perfect, right? Unfortunately, there could be dark clouds on the horizon without the one policy most critical to making everything else work: interconnection. The absence of this crucial policy would cause projects to because mired in a murky technical process, with no end in sight. Does this sound too pessimistic to be real? It’s not. Just ask Minnesota, New York and several other states that have learned the hard way about the importance of interconnection. The power grid is much like our network of country roads, highways and freeways, carrying energy from its origin to its final destination. Interconnection standards are, in effect, the “rules of the road,” set by policymakers, which both system owners and utilities must follow to keep traffic flowing smoothly. The quality of these rules -- like any given street sign, traffic direction or roadmap -- can facilitate an easy free-flow of traffic, or result in maddening, unnecessary gridlock. As we introduce new technologies and services, such as self-driving cars and ride-sharing apps, the rules of the road must evolve. So, too, must interconnection procedures.
Fewer and fewer oil exploration and production companies are declaring bankruptcy. But more oilfield service companies are. So far this month, only one North American E&P firm filed for Chapter 11 protection, according to data released on Tuesday by the Dallas law firm Haynes & Boone. That’s down from two in September, three in August and four in July. But it’s been an especially tough few months for service companies. As crude prices began crashing in 2014, drillers started idling rigs. That led to fewer jobs for the companies that make their money helping producers pump oil and gas. Moreover, when producers did hire service companies, they often forced them to heavily discount their rates. Eight service companies filed this month. Seven filed last month, and eight again the month before. Almost 50 have filed in the last six months, half of the 108 over two years.
American Indian tribes in Washington, including the Spokane Tribe, called on President Barack Obama to overhaul the way the federal government consults with tribes on fossil fuel export and other projects. The Spokane Tribe, Yakama Nation, Lummi Nation and Swinomish Indian Tribal Community released a five-point plan they say will improve the consultation process, protect sacred sites and provide greater recognition of tribal rights.
Ethanol futures posted limited market movement Tuesday afternoon with prices hovering in a narrow trading range, as nearby contracts fell just 0.6 cent per gallon while deferred contracts fell 0.2 cent per gallon. November contracts fell to $1.60 per gallon as the market has been recently been capped at that level, given the lack of support in the corn and gasoline market over the last week. A combination of losses through the last week in the corn market, which fell about 8 cents per bushel, and moderate seasonal pressure starting to finally develop in RBOB gasoline and crude oil markets trickling into the complex appears to be limiting any upward market support through the end of the month. Trade activity through the ethanol market is likely to remain limited in the next several days as traders remain focused on not only the direction of corn markets, but the inventory levels of gasoline and ethanol markets. This could bring some additional price shifts to nearby contracts, but seasonal pressure is likely to continue through the end of the year as long-term pressure is likely.
Efforts to expand electric vehicle infrastructure in the Kansas City are hitting a roadblock amid pushback from state regulators. Early in 2015, Kansas City Power & Light announced it would install about 1,100 electric-vehicle charging stations in the greater Kansas City area. At the time, it apparently was the largest such undertaking in the country. The utility indicated that it wanted to give a nudge to the electrification of vehicles – a potential boon for KCP&L and electric utilities in general. But KCP&L is backing away. Following installation of about 230 of 315 charging stations it had planned for the Kansas side of the Kansas City metropolitan area (the project is also underway in Missouri), the utility put the other 85 on hold after the Kansas Corporation Commission last month denied the company’s request to charge ratepayers for the $5.6 million initiative.