President Donald Trump’s White House has said his plans to slash environmental regulations will trigger a new energy boom and help the United States drill its way to independence from foreign oil. But the top U.S. oil and gas companies have been telling their shareholders that regulations have little impact on their business, according to a Reuters review of U.S. securities filings from the top producers.In annual reports to the U.S. Securities and Exchange Commission, 13 of the 15 biggest U.S. oil and gas producers said that compliance with current regulations is not impacting their operations or their financial condition.The other two made no comment about whether their businesses were materially affected by regulation, but reported spending on compliance with environmental regulations at less than 3 percent of revenue.The dissonance raises questions about whether Trump’s war on regulation can increase domestic oil and gas output, as he has promised, or boost profits and share prices of oil and gas companies, as some investors have hoped.
There has been much debate and much written about the likely costs and benefits of including ethanol in the domestic gasoline supply. Costs and benefits fall into two major categories--environmental and economic (e.g., Stock, 2015). One economic consideration is the potential impact on domestic gasoline prices from augmenting the gasoline supply with biofuels. A second economic consideration, and one that has received the most attention, is the cost of ethanol relative to petroleum-based fuel. What has been missing from the analysis of the value of ethanol in the gasoline blend is an estimate of the net value of ethanol based on: i) an energy penalty relative to gasoline; and ii) an octane premium based on the lower price of ethanol relative to petroleum sources of octane. This article provides an analysis of that net value since January 2007.
The owner of an underwater pipeline spewing processed natural gas into Alaska's Cook Inlet has lowered pressure in the line to reduce the leak. Repairs will continue to wait for ice in the inlet to clear because it's too dangerous to immediately start work, according to Hilcorp Alaska, LLC.The 8-inch leaking pipe sends natural gas from shore to four petroleum platforms in the inlet, home to a population of endangered beluga whales.
The Trump administration plans to withdraw and rewrite a 2015 rule aimed at limiting hydraulic fracturing, or “fracking,” on public lands, the Interior Department indicated in court filings. The move to rescind the 2015 regulation, which has been stayed in federal court, represents the latest effort by the new administration to ease restraints on oil and gas production in the United States. Interior’s Bureau of Land Management issued the rule in an effort to minimize the risk of water contamination through the practice, which involves injecting a mix of chemicals and water at high pressure into underground rock formations to force out oil and gas.
Not long ago, major electric utilities in much of the Southwest seemed bent on chasing rooftop solar companies out of the region. They saw the booming industry as a threat to their profits and sought rate changes that would make solar panels less financially attractive to homeowners. The electric companies advocated slashing the compensation those customers get for sending their excess power to the grid and adding new fees to their electric bills.Because the electric companies are monopolies, state regulators have to approve such changes. In late 2015, the Public Utility Commission of Nevada set new rates that were so unfavorable to solar customers that they nearly snuffed out the residential solar business in the state. The number of households applying to connect solar panels to the grid dropped from a peak of nearly 3,000 in August 2015 to just 14 in July the next year. The biggest solar installation companies left the state, laying off thousands of workers. But that’s not the end of the story. The public was outraged, and its objections resulted in a surprising shift: gradual rollback of the commission’s anti-solar decision. In November, voters overwhelmingly approved a constitutional amendment to do away with utility monopolies. The public utility commission restored higher compensation rates for existing solar customers statewide and future customers in northern Nevada. It’s considering doing the same in the southern part of the state.
The Oklahoma House has approved legislation to roll back a state tax credit for the wind energy industry.The House passed the bill Thursday by a vote of 74-24 and sent it to the Senate for consideration.The bill modifies the tax credit for electricity generated by zero-emission facilities like wind turbines. It says facilities must be in operation by July 1 in order to qualify for the credit, instead of the current deadline of Jan. 1, 2021.Gov. Mary Fallin proposed eliminating the wind tax credit to increase revenue amid a projected $868 million budget shortfall next year. The tax credit will cost $40 million this year and will average $60 million a year over the next 15 years.
California saw another three months of weak demand for pollution permits amid persistent uncertainty about the future of the state’s cap on carbon emissions, according to state data. California will take in only about $8 million from an auction that could have generated $592 million or more if all permits were sold. The program is a prime funding source for projects including high-speed rail and transit construction. For years, each quarterly auction consistently generated hundreds of millions of dollars. Fewer than one in five permits were distributed at an auction last month, according to the data from the California Air Resources Board. The vast majority were sold by utilities, which get them for free from the state, while some were sold to polluters in Quebec, the Canadian province that sells permits at the same auction.But revenue has plummeted in three of the last four auctions amid a series of pressures that have depressed demand.A glut of permits on the market means companies don’t need to buy them at auction to authorize their emissions in the near future. A state appeals court is considering a case that challenges the authority for the state to sell pollution permits. And the Legislature is considering whether to give the program clear authority to continue past 2020.
New Mexico has benefited from its renewable energy production tax credit, which has supported more than 11,000 jobs and represents $1.6 billion in economic activity, according to a new report. The report, released by Family Businesses for Affordable Energy this week, says the state has established has "a robust renewable energy generation sector with enormous potential for growth" and clean power is a wise investment for New Mexico. The credits are set to expire next year.
Consumers have seen flat or declining energy costs as renewable energy becomes a greater part of the energy mix of Minnesota and the nation. That’s one of the findings in the annual 2017 Sustainable Energy in America Factbook, published by Bloomberg New Energy Finance in partnership with the Business Council for Sustainable Energy. The report points out that in the United States, renewable energy, greater energy efficiency and low natural gas and gasoline prices have combined to drive down energy costs – as a percent of total household spending – to its lowest level in decades, according to business council president Lisa Jacobson.
A coalition of the nation’s top biofuels advocates united together as Fuels America resolved to reject a move by Carl Icahn (Eye’-Kahn), owner of CVR Refining, to destabilize the Renewable Fuels Standard. They’ve also severed ties with the Renewable Fuels Association. Fuels America says it represents diverse groups that are working to protect America’s Renewable Fuels Standard. A Fuels America statement says, “We adamantly oppose any effort to derail the RFS by shifting the point of obligation and exempting certain refiners and fuel importers from their responsibility to deliver cleaner and more affordable fuel options for consumers.” The group says in Icahn’s conflicted role of refiner as well as White House advisor, he’s now attempting to mislead biofuels advocates into accepting changes to the Renewable Fuels Standard in exchange for changing outdated Environmental Protection Agency regulations that limit the summer sales of ethanol.