“The move to regulate fuel economy came about a few years earlier, following the 1973–74 Arab embargo that suddenly ended the flow of oil from OPEC nations. In the face of skyrocketing oil prices, Congress froze gasoline prices to protect American consumers from pocketbook shock. Then came the hard part. Elected officials sought to require U.S. automakers to build the smaller, more economical cars that unquestionably would have been built had gasoline prices been allowed to rise freely. Yet the fuel economy standards hit passenger sedans hard while leaving light trucks, which were not seen as passenger vehicles, almost untouched.
As the fuel economy standards began to bite consumers, they found that trucks provided comfort and safety no longer available in the downsized sedans. Truck sales surged, and in 1990, Ford placed a four-door body on a Ranger truck frame and introduced the Ford Explorer, a passenger vehicle that satisfied the government’s truck definition. This inspired an explosion of similar SUV production across the industry. Trucks became beautiful, expensive, and highly desirable.”
“All the while, the fuel economy standard for trucks remained less strict than for sedans. To make things even better for U.S. producers, almost-prohibitive tariffs on European light trucks were extended to the rest of the world. Many foreign producers eventually jumped the tariff wall and built trucks and cars here, but the home-grown industry enjoyed an early advantage.”
“Clean energy is rapidly rising on the Texas power grid, but regulators in the Lone Star State are now considering a plan that could give fossil fuels a boost.
The zero greenhouse gas emissions trio — wind, solar, and nuclear energy — provided more than 40 percent of electricity in the state in 2022. It was a year when several Texas cities experienced their hottest summers on record, driving electricity demand to its highest levels ever as fans and air conditioners switched on. Winter proved stressful too, with freezing temperatures last month pushing winter electricity peaks to record-high levels, narrowly avoiding outages.”
“Texas leads the US in oil and natural gas production, but it’s also number one in wind power. Solar production in the state has almost tripled in the past three years. Part of the reason is that Texas is particularly suited to renewable energy on its grid. Wind turbines and solar panels in Texas have a high degree of “complementarity,” so shortfalls in one source are often matched by increases in another, smoothing out power production and reducing the need for other generators to step in. That has eased the integration of intermittent energy sources on the grid.
Coal, meanwhile, has lost more than half of its share in Texas since 2006. For a long time and across much of the country, the story was that cheap natural gas from hydraulic fracturing was eating coal’s lunch on the power grid. Coal was also facing tougher environmental regulations like stricter limits on mercury, requiring coal power plants to upgrade their equipment, and raising electricity production costs.”
“in Texas, natural gas’s share of the electricity mix has been holding around 40 percent for more than a decade. On the other hand, renewable energy has surged as coal withered. Wind alone started beating out coal in 2019 and is now the second-largest source of electricity behind natural gas in the state.
An important factor is that the state has its own internal power grid, serving 26 million customers and meeting 90 percent of its electricity demand. It’s managed by the nonprofit Electric Reliability Council of Texas, or ERCOT. In the freewheeling Texas energy market, the cheapest sources of electricity become dominant, and wind and solar — with low construction costs, rapid build times, and zero fuel expenses — have emerged as winners.”
“Some lawmakers are now working to tilt the balance toward fossil fuels. “There are different political figures who are trying to incentivize gas power plants or deny, prohibit, or inhibit renewables,” Webber said.
Last year, the Texas legislature passed a law that would prevent the state’s retirement and investment funds from doing business with companies that “boycott” fossil fuels.
Texas Lt. Gov. Dan Patrick said one of his legislative priorities for this year is to secure more support for natural gas-fired generation. “We have to level the playing field so that we attract investment in natural gas plants,” Patrick said during a press conference last November. “We can’t leave here next spring unless we have a plan for more natural gas power.””
“While wind and solar power are ascendant, they are intermittent, and regulators want to make sure there is enough dispatchable power like natural gas to ramp up on still, cloudy days. The new proposal would create a credit scheme that would encourage more of these dispatchable plants to come online and extend a lifeline to some existing generators that are struggling to compete. But it would also raise the costs of electricity production.
Environmental groups like the Sierra Club noted that the proposal leaves the door open for other tactics for balancing electricity supply and demand, like energy storage, increasing energy efficiency, and demand response.”
“There is one key factor explaining why imports to the EU from Russia haven’t fallen further: energy — and its price. During the five years that preceded the war, energy-related products represented two-thirds of all imports from Russia, in monetary terms.
European countries needed to find alternative providers before they could stop buying from Moscow — and even when they reduced their energy purchases, soaring prices meant that cash flows to Russia did not decrease proportionally.”
“Cooking emits about 13 percent of on-site greenhouse emissions in U.S. buildings, according to the EIA. 68 percent of emissions stem from space heating, while 19 percent comes from water heating.
Some studies, including one published by Stanford University scientists last year, examined methane leaks from gas stoves and concluded that their global warming impact could be far higher than previously believed — equivalent to the emissions of a half-million cars (Energywire, Jan. 27, 2022).
But environmentalists and public health groups most often focus on indoor air quality as the chief problem with gas stoves, rather than greenhouse gas emissions.”
“Last April, researchers at the Institute for Policy Integrity released a report calling for gas stoves to be sold with warning labels and requirements for better ventilation, while pointing to studies concluding that low-income households and people of color were more likely to live in homes with poor ventilation (Energywire, April 25, 2022).
As far back as 2010, the World Health Organization recommended that governments develop guidelines for indoor air quality — which the EPA does not do — while citing studies that linked gas stoves to increased respiratory problems in children.
Gas industry advocates have rejected any connection between health risks and use of gas stoves, at times pointing to a 2013 study based on a 47-country questionnaire that turned up no association between cooking gas and asthma.”
“These are some of the biggest sanctions to date, as Europe — once the destination for about half of Russia’s oil exports — further weans itself off Russian energy. And Europe, along with the United States and other major economies, like the United Kingdom, Japan, Canada, and Australia, have agreed to a maximum of $60 per barrel on Russian seaborne oil, which means anyone who still wants to buy Russian oil has to pay that price or less, if it wants to ship cargo through operators or insurers based in the EU or other countries who signed on to this price cap.”
“There are a lot of unknowns, but this is a dramatic and unprecedented move by the US and its partners — especially given how dependent Europe was on Russian energy. “If anyone told you a year ago that the EU is going to effectively eliminate its dependence on fossil fuel imports from Russia, over a period of a year, you would have thought they’re a complete lunatic,” said Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air.
It’s true that Europe continued to buy a lot of Russian oil and gas in the first half of the year, even after Russia invaded Ukraine. It’s also true that Moscow itself cut off supplies of natural gas, giving Europe little choice but to find alternatives. But even so, it’s a real and rapid scrambling of a relationship, and the EU has largely (if not perfectly) been decreasing its Russian fossil fuel imports with the expectation of the ban and other measures. Starting in February, the EU will also ban oil product imports from Russia.”
“There are already caveats. Though Russia isn’t exactly going to be transparent about this, the $60 price cap appears to be about what Russia is already selling its oil for, which means Russia’s oil revenues are unlikely to nosedive immediately. Some countries, like Poland, pushed for a much lower cap, and Ukraine has also said this doesn’t go far enough. There are also some questions around enforcement, as shippers have to attest they are abiding by the price cap, and negotiators ended up weakening some of the penalties for violators.
But the US and its allies were trying to strike a balance through a mechanism that hasn’t been attempted before. They wanted to avoid completely disrupting global oil markets while applying more pressure to Russia’s oil profits. The cap is not firmly set, and is subject to a review every two months. That means it — and its enforcement mechanisms — are likely to be tinkered with depending on how this all plays out.
“This is about balance. It was never about not having any Russian oil on the market. It was about balancing supply and demand but also balancing the need to limit Mr. Putin’s ability to profit. And again, we think that $60 per barrel will do that,” National Security Council coordinator for strategic communications John Kirby said on a press call Monday.
“It doesn’t mean that that cap can’t be adjusted going forward as we see the way it’s being implemented, and as we see how the Russians might react to it,” Kirby added.”
“Here’s how it’s supposed to work in practice: Any actor in a jurisdiction of the price-cap coalition that transports, insures, or finances the shipment of Russian oil by sea, can only do so if the price per barrel is $60 or less.
The reason the coalition thinks it could work is because a lot of maritime operators, insurers, and reinsurers are based in Europe and the United Kingdom — or as Myllyvirta put it: “The two big things are Greek ships and UK insurers.” That market domination would make it costly and cumbersome to insure your ship against an oil spill, say, or find an available tanker that doesn’t fall under a jurisdiction that’s adopted the price cap.”
“Russia has said it will not sell oil subject to the price cap, even if it has to scale back production. But this is easier said than done because Russia still needs oil buyers, like China and India, who now have a lot of leverage. “Am I going to buy [oil] at anything above 60 bucks, knowing that’s the only option Russia has? Are you going to do Putin a solid and say, ‘No, I’ll pay you $65, I’ll pay you $70.’ I’m not sure why they would, especially because they have all the cards,” Smith said.”
“Russia is under unprecedented financial and energy sanctions, especially for an economy of its size. Russia has weathered a lot of that pressure so far, and its energy and resource exports are a huge reason why. Still, sanctions are undoubtedly having an effect. Russia’s economy has shrunk. Import bans on advanced technology are forcing Russian manufacturers to scale back features — no airbags in cars, for example — because they can’t get parts. That is also affecting Russia’s ability to make advanced weapons. And even if Russia was buoyed by its oil and gas sales, those are declining, and Russia has been heavily taxing some of its oil and gas industries to try to raise more revenues. That can’t work forever, either.”
“there are still more sanctions to impose on Russia — we’re not at the level of an Iran or a North Korea yet — but that would come with repercussions for the United States, Europe, and the rest of the world, all of which is struggling with inflation and rising food and fuel prices.”
“Petroleum shipments are still relatively stable for Russia, as nations like China and India have picked up some slack from EU countries weaning themselves off oil, and Russia still has LNG, coal, and nuclear energy to help the economy float, too.
In order to make petroleum products more appealing to customers like India and Indonesia, Russia has offered fairly steep discounts — an average of $30 per barrel — against Brent crude oil, which has also been a benefit for Sri Lanka, Pakistan, Bangladesh, and Cuba, all emerging economies struggling with inflation, as Business Insider reported. Although according to S&P the discounts on Russian crude oil are decreasing, some analysts believe they’ll persist, making Russian crude oil imports highly palatable for poorer countries.”
“Countries like China, India, and Turkey are proving eager partners for the Russian fuel industry, with Turkey doubling Russian oil imports this year and vying to become a hub for Russian LNG transfers into Europe after damage to the Nord Stream pipelines.”
“Even with the Nord Stream 1 pipeline out of commission — and setting aside the transfers to China, now Russia’s biggest natural gas buyer — European countries are importing record amounts of Russian LNG at market prices, according to Bloomberg. France has purchased about 6 percent more Russian LNG between January and September of this year than it did all of last year; Spain has already broken its record for Russian LNG imports this year, and Belgium is on track to do the same.
The stakes for natural gas imports are somewhat different than they are for Russian petroleum, in a number of different ways; for one, the EU hasn’t imposed sanctions against it as it has against petroleum products, though the bloc does intend to eliminate its reliance on Russian fossil fuels by 2027. Second, Russia has already used Europe‘s reliance on its natural gas as a weapon; Russia cut access to many European countries which refused to pay for LNG in rubles, and cut total output to Europe by 60 percent in June and by 80 percent in July, Reuters reported last month.”
“Russia continues to invest heavily in its nuclear technology, and nuclear facilities in many nations are dependent on Russian technology and cooperation to function, even if they’re not directly importing Russian nuclear fuel, according to a report by Robert Ichord for the Atlantic Council.”
“Russia has several illicit strategies to evade western sanctions on its energy products and financial system. Because these transactions are, by their nature, often difficult to track, it’s hard to know how effective and how widespread they are — not to mention how much the Russian economy is benefiting from them.”
“More than half the gas stations in the country are single-store operations run by an individual or a family, according to the Association for Convenience and Fuel Retailing (NACS), a trade association representing the stores that sell more than 80 percent of the
“Global known reserves of natural gas would last nearly 50 years at current rates of consumption. Burning natural gas to generate electricity emits about half of the carbon dioxide that coal does. This is why many environmental activist groups a little more than a decade ago hailed natural gas as “the bridge to the clean energy future.”
In fact, the mostly market-driven switch from coal to natural gas to generate electricity in the U.S. has served as a bridge to a cleaner energy future. The replacement in the U.S. of coal-fired power plants by those fueled by natural gas is responsible for a 32 percent reduction since 2005 in carbon dioxide emissions from that sector. Overall, annual U.S. carbon dioxide emissions have fallen by around 23 percent since 2005. Despite the undeniable role that the switch from coal to natural gas has played in significantly reducing U.S. carbon dioxide emissions, many environmental activists now perplexingly denounce natural gas as a “bridge to nowhere.””
“What about nuclear power? The fact that splitting atoms to generate electricity produces no greenhouse gas emissions should be enough to establish nuclear power as a “climate-friendly” energy technology. Last week, the International Energy Agency released a report arguing that global nuclear power capacity needs to double from 413 gigawatts now to 812 gigawatts by 2050 in order to meet greenhouse gas emissions targets set in international agreements addressing the problem of man-made climate change. Meanwhile, in response to pressure from environmental activists, Germany is going in the opposite direction, shutting down perfectly good nuclear power plants while firing up electricity generation fueled by coal.
The ecomodernist Breakthrough Institute has just released a new study setting out various scenarios of how the development and deployment of advanced nuclear reactors in the U.S. could unfold over the next 30 years. In the optimistic scenario, U.S. nuclear power generation capacity would rise from 95 gigawatts from conventional nuclear plants today to as much as 470 gigawatts generated by advanced reactors in 2050. Expanding nuclear power production would both help smooth out the intermittency of wind and solar generation and further cut climate-warming greenhouse gas emissions.”