Category: Energy Matters

The twentieth century way of life has been made available, largely due to the miracle of cheap energy. The price of energy has been at record lows for the past century and a half.As oil becomes increasingly scarce, it is becoming obvious to everyone, that the rapid economic and industrial growth we have enjoyed for that time is not sustainable.Now, the hunt is on. For renewable sources of energy, for alternative sources of energy, for a way of life that is less dependent on cheap energy. 

“Fire Ice” impact on oil spill, Containment and Energy Future

admin /31 May, 2010

Stranger than fiction: methane hydrate, a potential source of energy that may dwarf the supply of earth’s existing fossil fuels likely caused the April 20 Deepwater Horizon-BP explosion and then prevented the containment of the resulting spill this weekend.

Reports that methane hydrate gases shot up the well before the Deepwater Horizon explosion appeared on Friday, while the attempt Saturday by BP to put a containment dome over the leaking oil well was foiled by “slushy methane hydrates” that built up in the structure.

Unknown risks associated with our society’s fossil fuel reliance are suddenly coming into sharper focus, and it’s beginning to look like a well-conceived science fiction movie. Only this is real, it’s happening now, and a happy ending appears out of the question.

We can’t turn it off.  

An out-of-control oil spill is coming directly out of the earth, with seemingly unlimited quantities of crude fouling into the nation’s most productive fishery, where 80% of the country’s domestically produced wild seafood supply is harvested. The oil spill is accompanied by one of the most potent known greenhouse gases, which stymies rescue efforts with acute volatility, threatening far more global climate damage than existing fossil fuels.    

Also known as “ice energy,” methane hydrate is layered below the global ocean floors around the world in a frozen, yet highly flammable state. Occurring in permafrost as well, this enigmatic substance has more than three times the carbon than natural gas, coal and oil combined, so it presents incalcuable risks to the global climate if it is released into the atmosphere without sequestration.

The Peak Oil Crisis: The Deepwater Horizon

admin /31 May, 2010

It has been nearly a month since the tragic events aboard BP’s drilling rig, Deepwater Horizon, which suffered a blowout, caught fire, and sank in the Gulf of Mexico releasing prodigious amounts of oil into the sea. So far there has been little damage to the coastline; however, this could change quickly as oil is still pouring from the damaged well pipe and it could be months before the blowout is brought under control.

The possible damage to the environment ranges anywhere from minor, which is doubtful, to wiping out the seafood and tourist industries along the Gulf coast for many years.

Although BP and the government continue to talk about a leak of only 5,000 barrels a day based on photography of the surface slick, numerous outside observers who have viewed video footage of the broken pipe are saying this figure may be an order of magnitude too low. Thus far BP has refused to deploy instruments that could give a more accurate appraisal of the amount of oil spewing into the Gulf on the grounds that stopping the leak, not its size, is what matters.

No matter how much environmental and economic damage results from the Deepwater Horizon blowout, the ramifications of the spill are likely to linger for decades and have a major impact on the availability of deepwater oil as we enter the era of oil depletion. The U.S. government has already put a temporary hold on additional drilling until the facts of the current situation are clarified. The oil companies who are used to minimal government interference with their activities are already raising objections to the possibility of tougher regulation.

Kevin Rudd to backflip on mining tax rate

admin /27 May, 2010

Kevin Rudd to backflip on mining tax rate

100527 graphic mining tax

Date/Time: 2010:05:27 02:04:58 Source: The Australian

THE Rudd government is moving towards a major backdown on its $12 billion tax on resources, redefining its proposed super-profits levy, but the big mining companies have declared the changes do not stop the risk to investment in Australia.

Only three weeks after unveiling the new resource super-profits tax, the government is preparing to lift the threshold definition of a super profit from 6 per cent to 11 or 12 per cent following a ferocious campaign by the mining companies.

To offset the lost revenue in raising the threshold to the same level as the existing petroleum resources rent tax, which applies to offshore gasfields, the government intends to withdraw the 40 per cent taxpayer-funded compensation originally offered for mining projects that fail.

But all the major mining companies have rejected the new proposals as “tinkering at the edges” and not addressing the main risk to mining investment in Australia. The mining companies are demanding more negotiation with the government on the issues of the retrospective application of the new tax, different rates for different minerals and the 40 per cent tax rate.

Plugs replace pumps at car recharging station

admin /24 May, 2010

Plugs replace pumps at car recharging station Updated 22 minutes ago The modified hybrid cars can be charged at the station. (ABC News: Jesse leary) Map: Glebe 2037 New South Wales’ first public electric car charging station has been opened in Sydney. The charging point in Glebe is available to customers of a hybrid car Continue Reading →

Super tax has damaged Australia’s global invstment reputation :Rio Tinto

admin /24 May, 2010

Super tax has damaged Australia’s global investment reputation: Rio Tinto

Rio Tinto Pilbara

Rio Tinto CEO Tom Albanese: “Now it’s in everyone’s best interest to mitigate this (proposed tax) if we can.” Source: AFP

RIO TINTO chief executiveTom Albanese says Australia’s reputation has been damaged by the lack of consultation around Kevin Rudd’s proposed 40 per cent tax on mining profits.

“The non-consulted announcement I think has left damage to Australia’s investment reputation and that damage has been done,” Mr Albanese said at a media conference today.

“Now it’s in everyone’s best interest to mitigate this if we can.”

Mr Albanese also said the mining tax was the biggest sovereign risk facing Rio anywhere in the world.

BP swamped by criticism

admin /22 May, 2010

BP swamped by criticism Anna Driver and Matthew Bigg, Reuters May 22, 2010, 6:40 am   HOUSTON/VENICE, Louisiana (Reuters) – Anger, scepticism and accusations of lying washed over energy giant BP Plc on Friday as it desperately pursued efforts to contain a month-old seabed well leak billowing crude oil into the Gulf of Mexico. U.S. Continue Reading →