BP set to scale back greenย investments

Oil giant BP has said it will “fundamentally reset” its strategy as profits dropped sharply last year.

From NOT A LOT OF PEOPLE KNOW THAT

By Paul Homewood

From the BBC:

Oil giant BP has said it will “fundamentally reset” its strategy as profits dropped sharply last year.

It is widely expected to say later this month that it will scale back renewable projects and increase oil and gas production following similar moves from rivals including Shell and Equinor.

BPโ€™s net income fell to $8.9bn (ยฃ7.2bn) in 2024, down from $13.8bn the previous year.

It said lower oil and gas prices, plus lower profits from its refineries, had dented how much money it had made.

Five years ago BP set a target of 50GW of renewables generation capacity by 2030.

That is expected to be abandoned on 26 February in a major change of strategy.

BP has already been scaling back on renewables.

In December it put the majority of its offshore wind assets into a joint venture with Japanese company Jera to separate them from the companyโ€™s core fossil fuel business.

It is expected to cut its previous $10bn commitment in renewables until 2030 by up to a half.

BP also froze new wind projects in June last year.

Activist shareholder Elliott Management hasbought a stake in BP to push for more investment in oil and gas, with investors anticipating board changes.

AJ Bell analyst Russ Mould said the sharp drop in profit “provided plenty of fodder” for hedge fund Elliott, with BP having done “little to reassure other shareholders that the current plan is working”.

He added that “a clear and credible plan is desperately needed if BP is going to remain the master of its own destiny”.

https://www.bbc.co.uk/news/articles/c30d4ernzqjo

Five years ago, there were still obscene subsidies available for renewable energy.

Now those subsidies have dried up and, despite what AEP would tell you, there is no profit to be had.

Energy Giant Puts Goal To Drastically Cut Oil, Gas Production On Ice

European energy company BP has abandoned its pledge to cut oil and gas production by 2030 as the firm aims to shore up investor confidence amid a slide in its share price, Reuters reported Monday.

From Watts Up With That?

The Daily Caller

Owen Klinsky
Contributor

European energy company BP has abandoned its pledge to cut oil and gas production by 2030 as the firm aims to shore up investor confidence amid a slide in its share price, Reuters reported Monday.

BP unveiled plans in August 2020 to reduce its oil and gas output 40% by 2030, before dialing back the target to 25% in February 2023, according to Reuters. Now, in an attempt to regain the trust of investors, CEO Murray Auchincloss has dropped the target altogether in what sources told Reuters is part of a broader corporate strategy shift to focus on profitability and returns rather than green initiatives. (RELATED: Automakers Hit Reverse On Idealistic Electric Vehicle Targets Despite Billions In Biden-Harris Subsidies)

โ€œThe direction is the same โ€“ but we are going to deliver as a simpler, more focused, and higher value company,โ€ a BP spokeswoman told the Daily Caller News Foundation.

While the company has already dropped the goal in practice, the strategy shift is not expected to be formally announced until an investor meeting in February, Reuters reported.

The news follows BP announcing plans to sell its roughly $2 billion U.S. onshore wind portfolio in September and comes as the companyโ€™s share price sits at a near two-year low. It also coincides with a strategy shift at rival energy company Shell, which rejected further cuts to oil production in June 2023 shortly before its CEO Wael Sawan described lowering oil output as โ€œdangerous and irresponsibleโ€ in a July 2023 interview with the BBC.

BP has also shifted gears on oil exploration, engaging in negotiations to invest in three new projects in Iraq after sharply reducing its oil and gas exploration team since 2020, according to Reuters.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporterโ€™s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

US oil giant abandons California after 150 years over โ€˜harshโ€™ greenย policies

One of Americaโ€™s biggest oil companies is to abandon its headquarters in California amid a backlash against โ€œharshโ€ green policies.

Chevron on Friday said it would relocate to Houston, Texas, breaking a historic association with the Golden State that stretches back to the 1870s.

MIDLAND, TEXAS – MARCH 11: Oil pumpjacks work in the Permian Basin oil field on March 11, 2022 in Midland, Texas. United States President Joe Biden imposed a ban on Russian oil, the worldโ€™s third-largest oil producer, which may mean that oil producers in the Permian Basin will need to pump more oil to meet demand. The Permian Basin is the largest petroleum-producing basin in the United States. (Photo by Joe Raedle/Getty Images)

From NOT A LOT OF PEOPLE KNOW THAT

By Paul Homewood

h/t Philip Bratby

How long will it be before BP and Shell follow suit, and leave the UK?

One of Americaโ€™s biggest oil companies is to abandon its headquarters in California amid a backlash against โ€œharshโ€ green policies.

Chevron on Friday said it would relocate to Houston, Texas, breaking a historic association with the Golden State that stretches back to the 1870s.

Chevronโ€™s decision follows repeated warnings from bosses that stringent environmental regulations and other moves by the Californian government had made doing business there too difficult.

It is the latest oil company to walk away from the state, while other employers such as Elon Muskโ€™s SpaceX have also relocated following rows with state authorities about new legislation.

https://www.telegraph.co.uk/business/2024/08/02/oil-giant-abandons-california-150-years-harsh-green-policy

The Offshore Wind Energy Scandal Is Even Worse Than You Think

These 11 charts show how Americaโ€™s biggest NGOs are colluding with foreign corporations that want to industrialize our oceans with thousands of turbines that will hurt whales and ratepayers.

Two of Europeโ€™s biggest energy companies are abandoning the SS Offshore Wind.

From The Robert Bryce Substack

By Robert Bryce

These 11 charts show how Americaโ€™s biggest NGOs are colluding with foreign corporations that want to industrialize our oceans with thousands of turbines that will hurt whales and ratepayers.

This humpback whale washed ashore on Marthaโ€™s Vineyard in June 2023. Photo:ย Abigail Rosen, MV Times.

Two of Europeโ€™s biggest energy companies are abandoning the SS Offshore Wind.

In May, Shell, the UK-based oil and gas giant (2023 revenue: $317 billion), announced that it was cutting staff from its offshore wind business because, according to Bloomberg, the company has decided to focus on markets that โ€œdeliver the most value for our investors and customers.โ€ Bloomberg also reported that the staff cuts were made after the departures of top executives in the companyโ€™s offshore wind and renewable power businesses.

Last month, Murray Auchincloss, the CEO of oil and gas giant BP, imposed a โ€œhiring freeze and paused new offshore wind projects.โ€ According to Reuters, the new CEO is putting more โ€œemphasis on oil and gas amid investor discontent over its energy transition strategyโ€ and that BP (2023 revenue: $208 billion) was cutting investments in โ€œbig budget, low-carbon projects, particularly in offshore wind, that are not expected to generate cash for years.โ€

The moves by BP and Shell are only the latest examples of the troubles facing the offshore wind sector, which has been foundering on the shoals of higher interest rates, citizen opposition, and ballooning costs. Over the past year, numerous projects on the Eastern Seaboard, including Skipjack Wind in Maryland, Park City Wind in Connecticut, and South Coast Wind in Massachusetts, have been canceled due to bad economics. In all, according to data compiled by Ed Oโ€™Donnell, a nuclear engineer and a principal at New Jersey-based Whitestrand Consulting, about 14,700 megawatts of offshore wind capacity has been canceled. For comparison, about 15,500 megawatts of capacity is now in development, under construction, or operational.

Of course, those figures donโ€™t jibe with the tsunami of hype about offshore wind energy that has appeared in major media outlets. But the hard reality is that Americaโ€™s offshore wind sector is a subsidy-dependent industry that is dominated by foreign companies who are in bed with some of Americaโ€™s biggest climate NGOs, including the NRDC (gross receipts: $555 million) and Sierra Club (Gross receipts: $184 million).

Those NGOs and others, including the National Wildlife Federation (gross receipts: $142 million) and Conservation Law Foundation (gross receipts: $17.5 million), are leading the most shameful environmental betrayal in modern American history. Rather than seek to protect marine mammals and stop the industrialization of our oceans, they are eagerly promoting the installation of hundreds of offshore wind platforms smack in the middle of the known habitat of the critically endangered North Atlantic Right Whale.

โ€œWhat is Big Wind going to say when they kill the last whale? โ€˜Sorryโ€™?โ€ ACK 4 Whales president Vallorie Oliver on the porch of her home in Nantucket, on July 8, 2024. Photo by author.

Last week, I gave public lectures in Nantucket and Newport on the energy transition and offshore wind energy. Those events allowed me to take a deep dive into the cesspool of offshore wind and the entities pushing it. Two small groups, ACK 4 Whales and Green Oceans, sponsored the lectures. (The groups are so new that they havenโ€™t filed Form 990s.) The lectures allowed me to meet dozens of committed and interesting people from all walks of life, income levels, and political beliefs, who are fighting the insanity of offshore wind. Among them was Vallorie Oliver, a native of Nantucket who is the president of ACK 4 Whales. Oliverโ€™s father worked as a carpenter and fisherman on the island. She has been fighting the offshore wind projects since 2019.

Oliver reminds me of the dozens of other Americans Iโ€™ve been privileged to meet over the last decade as Iโ€™ve reported on the backlash against the encroachment of Big Wind and Big Solar. When we talked at her modest home in Nantucket last Monday, I told Oliver that sheโ€™s special, but not unique. Oliver โ€” and the many others Iโ€™ve met who are fighting the energy sprawl that inevitably comes with alt-energy โ€” all share a common value. What is it? Itโ€™s the desire to protect their homes, neighborhoods, viewsheds, and property values from the climate change carpetbaggers who are only interested in the profits they can make by paving vast swaths of territory with solar panels and wind turbines.

In an email on Sunday afternoon, Oliver told me what keeps her motivated: โ€œThere are no do-overs when the last whale is killed off,โ€ she explained. โ€œThere are fewer than 350 North Atlantic Right Whales left. What is Big Wind going to say when they kill the last whale? โ€˜Sorryโ€™?โ€

These 11 charts show the offshore wind energy scandal is even worse than you think.

Chart 1: About two-thirds of the offshore projects that are operating, under construction, or proposed are owned either entirely, or in part, by foreign companies.
Chart 2: Those foreign companies are feasting on subsidies. As shown below, the foreign corporations pushing for offshore wind in U.S. waters have, according to data from Good Jobs First, collected more than $9 billion in local, state, and federal subsidies, loans, or loan guarantees, and they are eager for more. How lucrative are the offshore wind subsidies? Consider Vineyard Wind, the 800-megawatt offshore project owned by Avangrid, the Spanish company, and Copenhagen Infrastructure Partners. Construction costs on the project will be about $4 billion. With an investment tax credit of about 40%, those two foreign outfits could collect as much as $1.6 billion in federal tax credits on Vineyard Wind alone.   

Chart 3: If thereโ€™s a better example of how climate NGOs have sold out to big business โ€” and Big Oil โ€” I canโ€™t name it. Hereโ€™s a screenshot from theย New York Offshore Wind Allianceย website that shows theย NGO-corporate-industrial-climate complexย at work.

Chart 4: Yup.

Chart 5: Ibid.

Chart 6: Iโ€™m old enough to remember when environmental groups cared about whales. Alas, that was a long time ago.ย On Sunday, theย Daily Mailย published an article about Apostolos Gerasoulis, a Rutgers professor emeritus of computer science who built a software system to analyze the dozens of whale deaths that have occurred on the Eastern Seaboard over the past few years. Gerasoulis set out to determine if the whale deaths were related to the loud blasts of sonar used by offshore wind survey vessels. His conclusion: โ€œOffshore wind kills whales…The numbers never lie. There is a cause. We have shown that the cause for death of the whales is offshore wind. Period.โ€ (H/t fellow Substack writerย David Blackmon.) ย 

Chart 7: Can we trade the Sierra Club for an environmental group that cares about protecting marine mammals? The text below isย from the clubโ€™s website.

Chart 8: This bit of bureaucratic mumbo jumbo is buried in the environmental impact statement the Bureau of Ocean Energy Management did on Vineyard Wind. Hereโ€™s my plain English translation: โ€œThese projects wonโ€™t make any difference on climate change. But they are good because they allow state-level bureaucrats to say they met their policy goals.โ€

Chart 9: The big NGOs claim we must build gigawatts of offshore wind because of climate change. But given the enormous size of the U.S. power grid (1,300 gigawatts), whatever reductions in greenhouse gas emissions that might be achieved with offshore wind will be the equivalent of a fart in a hurricane.

Chart 10: Short of throwing currency into a boiler, offshore wind energy is the most expensive way to generate electricity. The recent announcement that the state of New York will payย $155 per megawatt-hour for the juice from the Empire Wind projectย proves that point.

Chart 11: The states on the East Coast that are building offshore wind have some of the highest electricity prices in the country. Those rates will go higher due to offshore wind. (California is alsoย planning to spend billions on offshore wind, but thatโ€™s a topic for another Substack.)

I will close by repeating W. Edwards Demingโ€™s famous line: โ€œIn God we trust, all others must bring data.โ€ The data shows offshore wind energy is a lousy deal for whales and ratepayers.

The offshore wind energy scandal is even worse than you think

In May, Shell, the UK-based oil and gas giant (2023 revenue: $317 billion), announced that it was cutting staff from its offshore wind business because, according to Bloomberg, the company has decided to focus on markets that โ€œdeliver the most value for our investors and customers.โ€ Bloomberg also reported that the staff cuts were made after the departures of top executives in the companyโ€™s offshore wind and renewable power businesses.

Last month, Murray Auchincloss, the CEO of oil and gas giant BP, imposed a โ€œhiring freeze and paused new offshore wind projects.โ€ According to Reuters, the new CEO is putting more โ€œemphasis on oil and gas amid investor discontent over its energy transition strategyโ€ and that BP (2023 revenue: $208 billion) was cutting investments in โ€œbig budget, low-carbon projects, particularly in offshore wind, that are not expected to generate cash for years.โ€

From CFACT

By Robert Bryce

Two of Europeโ€™s biggest energy companies are abandoning the SS Offshore Wind.

In May, Shell, the UK-based oil and gas giant (2023 revenue: $317 billion), announced that it was cutting staff from its offshore wind business because, according to Bloomberg, the company has decided to focus on markets that โ€œdeliver the most value for our investors and customers.โ€ Bloomberg also reported that the staff cuts were made after the departures of top executives in the companyโ€™s offshore wind and renewable power businesses.

Last month, Murray Auchincloss, the CEO of oil and gas giant BP, imposed a โ€œhiring freeze and paused new offshore wind projects.โ€ According to Reuters, the new CEO is putting more โ€œemphasis on oil and gas amid investor discontent over its energy transition strategyโ€ and that BP (2023 revenue: $208 billion) was cutting investments in โ€œbig budget, low-carbon projects, particularly in offshore wind, that are not expected to generate cash for years.โ€

The moves by BP and Shell are only the latest examples of the troubles facing the offshore wind sector, which has been foundering on the shoals of higher interest rates, citizen opposition, and ballooning costs. Over the past year, numerous projects on the Eastern Seaboard, including Skipjack Wind in Maryland, Park City Wind in Connecticut, and South Coast Wind in Massachusetts, have been canceled due to bad economics. In all, according to data compiled by Ed Oโ€™Donnell, a nuclear engineer and a principal at New Jersey-based Whitestrand Consulting, about 14,700 megawatts of offshore wind capacity has been canceled. For comparison, about 15,500 megawatts of capacity is now in development, under construction, or operational.

Of course, those figures donโ€™t jibe with the tsunami of hype about offshore wind energy that has appeared in major media outlets. But the hard reality is that Americaโ€™s offshore wind sector is a subsidy-dependent industry that is dominated by foreign companies who are in bed with some of Americaโ€™s biggest climate NGOs, including the NRDC (gross receipts: $555 million) and Sierra Club (Gross receipts: $184 million).

Those NGOs and others, including the National Wildlife Federation (gross receipts: $142 million) and Conservation Law Foundation (gross receipts: $17.5 million), are leading the most shameful environmental betrayal in modern American history. Rather than seek to protect marine mammals and stop the industrialization of our oceans, they are eagerly promoting the installation of hundreds of offshore wind platforms smack in the middle of the known habitat of the critically endangered North Atlantic Right Whale.

โ€œWhat is Big Wind going to say when they kill the last whale? โ€˜Sorryโ€™?โ€ ACK 4 Whales president Vallorie Oliver on the porch of her home in Nantucket on July 8, 2024. Photo by author.

Last week, I gave public lectures in Nantucket and Newport on the energy transition and offshore wind energy. Those events allowed me to take a deep dive into the cesspool of offshore wind and the entities pushing it. Two small groups, ACK 4 Whales and Green Oceans, sponsored the lectures. (The groups are so new that they havenโ€™t filed Form 990s.) The lectures allowed me to meet dozens of committed and interesting people from all walks of life, income levels, and political beliefs who are fighting the insanity of offshore wind. Among them was Vallorie Oliver, a native of Nantucket who is the president of ACK 4 Whales. Oliverโ€™s father worked as a carpenter and fisherman on the island. She has been fighting the offshore wind projects since 2019.

Oliver reminds me of the dozens of other Americans Iโ€™ve been privileged to meet over the last decade as Iโ€™ve reported on the backlash against the encroachment of Big Wind and Big Solar. When we talked at her modest home in Nantucket last Monday, I told Oliver that sheโ€™s special but not unique. Oliver โ€” and the many others Iโ€™ve met who are fighting the energy sprawl that inevitably comes with alt-energy โ€” all share a common value. What is it? Itโ€™s the desire to protect their homes, neighborhoods, viewsheds, and property values from the climate change carpetbaggers who are only interested in the profits they can make by paving vast swaths of territory with solar panels and wind turbines.

In an email on Sunday afternoon, Oliver told me what keeps her motivated: โ€œThere are no do-overs when the last whale is killed off,โ€ she explained. โ€œThere are fewer than 350 North Atlantic Right Whales left. What is Big Wind going to say when they kill the last whale? โ€˜Sorryโ€™?โ€

These 11 charts show the offshore wind energy scandal is even worse than you think.

Chart 1: About two-thirds of the offshore projects that are operating, under construction, or proposed are owned, either entirely or in part, by foreign companies.

Chart 2: Those foreign companies are feasting on subsidies. As shown below, the foreign corporations pushing for offshore wind in U.S. waters have,ย according to data from Good Jobs First, collected more than $9 billion in local, state, and federal subsidies, loans, or loan guarantees, and they are eager for more. How lucrative are the offshore wind subsidies? Consider Vineyard Wind, the 800-megawatt offshore project owned by Avangrid, the Spanish company, and Copenhagen Infrastructure Partners. Construction costs on the project will be about $4 billion. With an investment tax credit of about 40%, those two foreign outfits could collect as much as $1.6 billion in federal tax credits on Vineyard Wind alone.

Chart 3: If thereโ€™s a better example of how climate NGOs have sold out to big business โ€” and Big Oil โ€” I canโ€™t name it. Hereโ€™s a screenshot from theย New York Offshore Wind Allianceย website that shows theย NGO-corporate-industrial-climate complexย at work.

Chart 4: Yup.

Chart 5: Ibid.

Chart 6: Iโ€™m old enough to remember when environmental groups cared about whales. Alas, that was a long time ago.ย On Sunday, theย Daily Mailย published an article about Apostolos Gerasoulis, a Rutgers professor emeritus of computer science who built a software system to analyze the dozens of whale deaths that have occurred on the Eastern Seaboard over the past few years. Gerasoulis set out to determine if the whale deaths were related to the loud blasts of sonar used by offshore wind survey vessels. His conclusion: โ€œOffshore wind kills whalesโ€ฆThe numbers never lie. There is a cause. We have shown that the cause for death of the whales is offshore wind. Period.โ€ (H/t fellow Substack writerย David Blackmon.)

Chart 7: Can we trade the Sierra Club for an environmental group that cares about protecting marine mammals? The text below isย from the clubโ€™s website.

Chart 8: This bit of bureaucratic mumbo jumbo is buried in the environmental impact statement the Bureau of Ocean Energy Management did on Vineyard Wind. Hereโ€™s my plain English translation: โ€œThese projects wonโ€™t make any difference on climate change. But they are good because they allow state-level bureaucrats to say they met their policy goals.โ€

Chart 9: The big NGOs claim we must build gigawatts of offshore wind because of climate change. But given the enormous size of the U.S. power grid (1,300 gigawatts), whatever reductions in greenhouse gas emissions that might be achieved with offshore wind will be the equivalent of a fart in a hurricane.

Chart 10: Short of throwing currency into a boiler, offshore wind energy is the most expensive way to generate electricity. The recent announcement that the state of New York will payย $155 per megawatt-hour for the juice from the Empire Wind projectย proves that point.

Chart 11: The states on the East Coast that are building offshore wind have some of the highest electricity prices in the country. Those rates will go higher due to offshore wind. (California is alsoย planning to spend billions on offshore wind, but thatโ€™s a topic for another Substack.)

I will close by repeating W. Edwards Demingโ€™s famous line: โ€œIn God we trust, all others must bring data.โ€ The data shows offshore wind energy is a lousy deal for whales and ratepayers.

This article originally appeared at Robert Bryce Substack

Almost all top BP shareholders unhappy with green strategy, claims activist investor

Almost all of BPโ€™s biggest shareholders are unhappy with its shift to green energy, an activist investor has claimed, amid a growing backlash over the oil giantโ€™sย focus on netย zero targets.

Oil giant faces fresh pressure to halt renewables investments.

Almost all of BPโ€™s biggest shareholders are unhappy with its shift to green energy, an activist investor has claimed, amid a growing backlash over the oil giantโ€™s focus on net zero targets.

Giuseppe Bivona, chief executive of Bluebell Capital, which has a minority stake in BP, said he had spent the past three weeks talking to many of the companyโ€™s top 30 investors. The Telegraph has the story.

He said: โ€œWith only the exception of one shareholder, I am still to find someone who supports BP in its entirety.โ€

Bluebell is spearheading a brewing investor revolt after sending a 30-page letter to the FTSE 100 company in January. 

In the letter it urged BP to halt investment in renewable energy schemes, prioritise oil and gas production, and rewrite net zero targets to clarify that they will be achieved โ€œin line with societyโ€. 

BP has been under increasing pressure over net zero commitments that have allegedly left shareholders ยฃ40bn poorer. 

Mr Bivona said he plans to share negative feedback with BP on a no-name basis, which he said will โ€œclearly expose them to the fact that many investors are sympathetic to what we are sayingโ€. 

He is hopeful this will serve as a โ€œwake-up callโ€ for the company, with Bluebell having previously taken similar action against blue-chip giants Glencore and Danone.

The activist threat represents the first major test forย Murray Auchincloss, BPโ€™s new chief executive, who has told staff that he will stick to the green energy plans rolled out by his predecessor Bernard Looney.

Read the full story here.

Scorched Earth: Subsidised Wind & Solar Wreaking Economic Havocย Everywhere

The renewable energy industry is in full collapse mode this week. First, Orsted A/S, the world’s largest offshore wind farm developer, abandoned two major US projects due to supply chain and interest rate impacts, and now solar stocks are being clubbed like a baby seal in US premarket trading on Thursday after solar equipment-makers SolarEdge and Sunrun reported dismal guidance amid waning demand.ย 

From STOP THESE THINGS

Keep cranking up power prices and watch your economy slowly disappear. Subsidised wind and solar guarantee the former and the latter simply follows.

Every country that has tapped into the so-called wind and solar transition is suffering from power prices that are simply out of this world. Australia is a case in point.

Having just been whacked with 20-30% increases in their power bills โ€“ on top of increases of between 10-20% in retail power prices that took effect throughout the financial year โ€“ many Australian households and businesses will see a 50% jump in their power bills in less than 12 months.

And yet, Labor party apparatchiks reckon that the solution to the unfolding disaster is simply more of the same; much, much more. As Nick Cater explains below.

Laborโ€™s renewable โ€˜investmentsโ€™ are just blowing in the wind
The Australian
Nick Cater
6 November 2023

The floundering offshore wind turbine industry received some welcome news from Australia last week with a strong hint from Jim Chalmers of more sugar on the table for renewable energy.

The promise of what the Treasurer euphemistically called โ€œmore decisive action across all levels of governmentโ€ is a sign of increasing desperation as the governmentโ€™s emissions-reduction timetable falls hopelessly behind.

The giant boring machine crawling beneath the Snowy Mountains is an apt metaphor for the governmentโ€™s progress towards its 2030 target. Both projects were based on heroic assumptions, ยญneither were adequately surveyed, and both have turned into giant sinkholes for capital that could be better spent elsewhere.

It will be little comfort to know that ours is not the only government to discover that the carbon challenge cannot be overcome simply by setting targets.

Joe Bidenโ€™s dream of deploying 30 gigawatts of offshore wind turbines by 2030 is in tatters after a string of cancelled projects. Last week, Danish wind energy company Orsted dropped two projects that would have installed more than 200 giant turbines off the New Jersey coast. Orstedโ€™s stock has fallen 60 per cent this year and The New York Times estimates it will have to write off billions of dollars in investments in the two ยญprojects. Orsted is not the only company encountering headwinds.

Britainโ€™s target of 50GW of offshore wind by 2030 can only be met with substantial subsidies and revenue guarantees. The Swedish company Vattenfall abandoned a giant offshore wind project off the Norfolk coast earlier this year, blaming a 40 per cent rise in costs. The latest auction for offshore wind licences failed to attract a single bid.

Anja-Isabel Dotzenrath, BPโ€™s head of low-carbon energy, told a Financial Times conference on Wednesday that the US offshore wind industry was โ€œfundamentally brokenโ€ and required a โ€œfundamental resetโ€ to help the nascent market grow. Mounting problems included approval delays, long timelines and escalating interest rates that have caused financing costs to soar.โ€œThereโ€™s really not a Plan B right now,โ€ environmentalist Jeff Tittel told the New York Times. โ€œItโ€™s a political disaster.โ€

Enter Energy Minister Chris Bowen who told the Asia Pacific Offshore Wind and Green Hydrogen Summit in August that Australia had big ambitions for offshore wind. โ€œWe arenโ€™t just building an industry from scratch,โ€ he said. โ€œWe are building an industry in which we want to be a world leader.โ€

Bowen has announced five offshore wind zones in the past year, with a sixth between Bunbury and Perth expected to be formally ยญannounced this month.

The numbers, sprinkled like fairy dust in the ministerโ€™s press ยญreleases, are too silly to believe. The Hunter, Illawarra and Southern Ocean zones alone will provide enough electricity to power 16 million homes, according to the minister. In a country of 9.7 million households, that would be impressive if it were true, rather than a scribble on the back of an envelope.

We are told that the energy ยญcapacity of the five offshore wind zones in the eastern states will be 43GW. That means constructing 5400 turbines with a boilerplate capacity of 8MW, or one a day for the next 15 years. On a conservative installation cost assumption of $US1.3m a megawatt, that would require a capital investment of $86bn.

โ€œWe need you,โ€ Bowen told the industry gathering. โ€œWe need your capital. We need your investment. We need your experience.

โ€œThe Australian government is deadly serious about our journey to become a renewable energy superpower.โ€

Reducing emissions is not as easy as Labor seemed to assume when it announced its 82 per cent renewable-energy target two years ago. The construction of onshore wind, grid-scale solar and transmission lines has fallen way behind the governmentโ€™s timetable. Offshore wind, with its long lead time and significant capital costs, is an even larger challenge.

Yet building the extra generation capacity to meet the governmentโ€™s 2030 target is only the beginning. The additional power that would be needed to manufacture green hydrogen on an industrial scale has barely been discussed. Yet the amount is considerable.

Plans for the proposed renewable energy hub in Gladstone, Queensland, for example, include a facility to export 4MT of green hydrogen a year. That would require 110GW of renewable energy capacity, according to a presentation by Gladstone Ports Corporation chief executive Craig Haymes at a recent engineering conference. It means an extra 10,000 wind turbines or 2500sq km of solar panels, an area the size of Fraser and Mornington Island combined.

Some attendees thought Haymes may have been trying to can the project by putting the figures on the table. Yet in a statement, the Corporation said Haymes had merely wanted to illustrate โ€œthe potential for renewable energy for Queensland and the opportunities this presentsโ€.

Green hydrogen is at a nascent stage. It is an inefficient and hazardous way of storing electricity, and there is no serious industrial ยญdemand. It comes with huge capital constraints.

Yet governments in the US, Europe and Australia are investing billions of dollars of seed capital into hydrogen produced by renewable energy without a care in the world as to where the energy will come from.

In a speech to The Australianโ€™s Economic and Social Outlook Conference last week, Chalmers flagged a โ€œuniquely Australianโ€ revamp of energy policy to prise an extra $225bn in capital from the hot little hands of private investors. He promised measures in the 2024-25 budget โ€œto get private capital flowing towards our priorities effectively and efficientlyโ€.

The hubris in this statement bodes poorly for our future prosperity. Diverting the flow of such huge sums of private capital to government pet projects, however noble the intentions, is the road to economic ruin. The investors withdrawing from renewable energy projects are responding to price signals. Private investors have a keen nose for snake oil. They are trading off costs and benefits and assessing the technical feasibility of projects with rigour this government has failed to match.

โ€œAustralia is, to be honest, a bit like the kid who forgot to study for an exam early in the process and is pulling all-night study sessions,โ€ Bowen told the August conference. โ€œBut now we are working 24/7 to catch up.โ€

The tragedy is that Australia was gifted the chance to learn from the mistakes of others. Bowenโ€™s obstinacy comes at a price.
The Australian

Regulatory Rebuff Blow to Offshore Wind Projects

The state denial could force some developers whose contracts may not cover project costs to scrap plans to sell power to customers in New York, cancel or delay projects, as happened with a couple of offshore wind projects inย Massachusetts.ย 

From Watts Up With That?

When the breezy dreams of offshore wind giants met the rocky shores of regulation.

In a move that left offshore wind giants like Orsted, Equinor, and BP staggering, New Yorkโ€™s utility regulator has blown away pleas for contract relief.

โ€œNearly all of New Yorkโ€™s pacesetting 4.3GW of contracted offshore wind capacity is now in limbo following rejection of developersโ€™ pleas for inflation relief by the stateโ€™s utility regulator.โ€

https://www.rechargenews.com/wind/blow-to-orsted-equinor-and-bp-as-new-york-rejects-pleas-for-offshore-wind-contract-relief-leaving-4gw-in-limbo/2-1-1534223

Developersโ€™ Substantial Requests Denied

The developers, caught in the turbulent winds of cost overruns, sought increases to offtake contracts by a staggering 55%. However, the PSC was not swayed by their arguments.

โ€œNew York Public Service Commission (PSC) denied petitions by the stateโ€™s two offshore wind developers, joint ventures (JVs) of Equinor-BP and Orsted-Eversource, for increases to offtake contracts as high as 55%, which one PSC member reportedly described as โ€˜breathtakingโ€™.โ€

Ratepayer Impact: A Central Concern

The PSC stood its ground, prioritizing the interests of ratepayers over the inflation woes of developers. The commission emphasized that the proposed contract increases were not in line with its policy objectives.

โ€œRegulator said cost hikes of up to 55% would have substantial ratepayer impacts and were โ€˜fundamentally inconsistentโ€™ with commission policy.โ€

The Uncertain Path Ahead

The decision leaves a significant portion of New Yorkโ€™s offshore wind capacity in a state of uncertainty. The ambitious plans of these offshore developers now seem to be at the mercy of regulatory scrutiny and economic practicality. The future trajectory of these projects remains unclear amidst this regulatory challenge.

Conclusion: Navigating the Regulatory Landscape

The PSCโ€™s decision underscores an interplay of economic considerations and, (finally!) some regulatory prudence in the renewable energy sector. Developers now, perhaps for the first time, face the task of advancing their projects amidst economic fluctuations, having to with regulatory expectations and safeguarding ratepayer interests. Weโ€™ll see how many walk away.

Source force this article: https://www.rechargenews.com/wind/blow-to-orsted-equinor-and-bp-as-new-york-rejects-pleas-for-offshore-wind-contract-relief-leaving-4gw-in-limbo/2-1-1534223

HT/david d for sending me official decision below.

2023 Update: Fossil Fuels โ‰  Globalย Warming

The climate alarmist/activist claim is straight forward: Burning fossil fuels makes measured temperatures warmer. The Paris Accord further asserts that by reducing human use of fossil fuels, further warming can be prevented. ย 

From Science Matters

Byย Ron Clutz

Previous posts addressed the claim that fossil fuels are driving global warming. This post updates that analysis with the latest (2022) numbers fromย Energy Instituteย and compares World Fossil Fuel Consumption (WFFC) with three estimates of Global Mean Temperature (GMT). More on both these variables below. Note: Previously these same statistics were hosted by BP.

WFFC

2022 statistics are now available from Energy Institute for international consumption of Primary Energy sources.ย Statistical Review of World Energy.ย The reporting categories are:
Oil
Natural Gas
Coal
Nuclear
Hydro
Renewables (other than hydro)

Note:ย 

ย Energy Institute began last year to use Exajoules to replace MToe (Million Tonnes of oil equivalents.) It is logical to use an energy metric which is independent of the fuel source. OTOH renewable advocates have no doubt pressured EI to stop using oil as the baseline since their dream is a world without fossil fuel energy.From BP conversion table 1 exajoule (EJ) = 1 quintillion joules (1 x 10^18). Oil products vary from 41.6 to 49.4 tonnes per gigajoule (10^9 joules).ย  Comparing this annual report with previous years shows that global Primary Energy (PE) in MToe is roughly 24 times the same amount in Exajoules.ย  The conversion factor at the macro level varies from year to year depending on the fuel mix. The graphs below use the new metric.This analysis combines the first three, Oil, Gas, and Coal for total fossil fuel consumption world wide (WFFC).ย  The chart below shows the patterns for WFFC compared to world consumption of Primary Energy from 1965 through 2022.

The graph shows that global Primary Energy (PE) consumption from all sources has grown continuously over nearly 6 decades. Since 1965  oil, gas and coal (FF, sometimes termed โ€œThermalโ€) averaged 88% of PE consumed, ranging from 93% in 1965 to 82% in 2022.  Note that in 2020, PE dropped 21 EJ (4%) below 2019 consumption, then increased 31 EJ in 2021.  WFFC for 2020 dropped 24 EJ (5%), then in 2021 gained back 26 EJ to slightly exceed 2019 WFFC consumption. For the 58 year period, the net changes were:

Oil194%
Gas525%
Coal178%
WFFC239%
PE287%

Global Mean Temperatures

Everyone acknowledges that GMT is a fiction since temperature is an intrinsic property of objects, and varies dramatically over time and over the surface of the earth. No place on earth determines โ€œaverageโ€ temperature for the globe. Yet for the purpose of detecting change in temperature, major climate data sets estimate GMT and report anomalies from it.UAH record consists of satellite era global temperature estimates for the lower troposphere, a layer of air from 0 to 4km above the surface. HadSST estimates sea surface temperatures from oceans covering 71% of the planet. HadCRUT combines HadSST estimates with records from land stations whose elevations range up to 6km above sea level.Both GISS LOTI (land and ocean) and HadCRUT4 (land and ocean) use 14.0 Celsius as the climate normal, so I will add that number back into the anomalies. This is done not claiming any validity other than to achieve a reasonable measure of magnitude regarding the observed fluctuations.[Note: HadCRUT4 was discontinued after 2021 in favor of HadCRUT5.]No doubt global sea surface temperatures are typically higher than 14C, more like 17 or 18C, and of course warmer in the tropics and colder at higher latitudes. Likewise, the lapse rate in the atmosphere means that air temperatures both from satellites and elevated land stations will range colder than 14C. Still, that climate normal is a generally accepted indicator of GMT.

Correlations of GMT and WFFC

The next graph compares WFFC to GMT estimates over the decades from 1965 to 2022 from HadCRUT4, which includes HadSST4.

Since 1965 the increase in fossil fuel consumption is dramatic and monotonic, steadily increasing by 239% from 146 to 494 exajoules. ย Meanwhile the GMT record from Hadcrut shows multiple ups and downs with an accumulated rise of 0.8C over 56 years, 6% of the starting value.The graph below compares WFFC to GMT estimates from UAH6, and HadSST4 for the satellite era from 1980 to 2022, a period of 43 years.

In the satellite era WFFC has increased at a compounded rate of nearly 2% per year, for a total increase of 92% since 1979. At the same time, SST warming amounted to 0.53C, or 3.7% of the starting value.ย  UAH warming was 0.52C, or 3.8% up from 1979.ย  The temperature compounded rate of change is 0.1% per year, an order of magnitude less than WFFC. ย Even more obvious is the 1998 El Nino peak and flat GMT since.

Summary

The climate alarmist/activist claim is straight forward: Burning fossil fuels makes measured temperatures warmer. The Paris Accord further asserts that by reducing human use of fossil fuels, further warming can be prevented. ย Those claims do not bear up under scrutiny.It is enough for simple minds to see that two time series are both rising and to think that one must be causing the other. But both scientific and legal methods assert causation only when the two variables are both strongly and consistently aligned. The above shows a weak and inconsistent linkage between WFFC and GMT.Going further back in history shows even weaker correlation between fossil fuels consumption and global temperature estimates:

Figure 5.1. Comparative dynamics of the World Fuel Consumption (WFC) and Global Surface Air Temperature Anomaly (ฮ”T), 1861-2000. The thin dashed line represents annual ฮ”T, the bold lineโ€”its 13-year smoothing, and the line constructed from rectanglesโ€”WFC (in millions of tons of nominal fuel) (Klyashtorin and Lyubushin, 2003). Source: Frolov et al. 2009

Footnote: CO2 Concentrations Compared to WFFC

Contrary to claims that rising atmospheric CO2 consists of fossil fuel emissions, consider the Mauna Loa CO2 observations in recent years.

Despite the drop in 2020 WFFC, atmospheric CO2 continued to rise steadily, demonstrating that natural sources and sinks drive the amount of CO2 in the air.See also: Nature Erases Pulses of Human CO2 EmissionsTemps Cause CO2 Changes, Not the Reverse

The Myth Of Replacing Fossil Fuels

Next, his โ€œnon-fossil sourcesโ€ (hydro, nuclear, wind, biofuels, solar, geothermal, other) only total 7.5% of total energy, not 18%.

From Watts Up With That?

Guest Post by Willis Eschenbach (see update below)

A hat tip to the commenter on one of my posts who was kind enough to give me a heads-up as follows:

Mark BLR June 30, 2023 2:23 am

BP handed over the production of their โ€œStatistical Review of World Energyโ€ to an outfit called the โ€œEnergy Instituteโ€ at the end of last year.

They released the new version, with annual data updated to 2022, on Monday (4 days ago).

The latest (.xlsx) spreadsheet can be downloaded from the following URL :
https://www.energyinst.org/statistical-review/resources-and-data-downloads

Since I had the new data, I thought Iโ€™d update the following graphic that I made a few years ago, which only covered up to 2019.

Figure 1. The 2019 version of energy consumption.

When I put that out, people were saying things like โ€œYou donโ€™t understand. Solar and wind are growing exponentially! Just wait a few years and youโ€™ll see!โ€

So, having now waited a few years, hereโ€™s the 2022 version. This time Iโ€™ve split out fossil fuels as a separate line. Iโ€™ve also added a line for traditional biomass. All the data is from the BP spreadsheet linked above except traditional biomass, which is from Our World In Data.

Figure 2. The 2022 version, including traditional biomass and fossil fuels as separate lines.

There are some very interesting things about this graphic. First, all the solar and wind in the world combined doesnโ€™t provide even a third of the energy we get from wood and dung.

Next, I can hear some people thinking โ€œWait a minute, what about all the nuclear and the hydroelectric? Iโ€™ve seen charts where they are much larger! Why is the violet line so near to the red line?โ€

Well, the simplest answer is โ€ฆ weโ€™re being lied to. Those charts youโ€™re thinking about only show the actual energy for fossil fuels. For fossil fuels alone, they report the real energy we use to heat our houses, cook our food, power our cars and factories, and all the rest.

But regarding all the other sources except fossil fuels, the nuclear, hydro, various renewables, and the rest, in every case the true energy numbers have all been multiplied by about two and a half.

Why? Well, hereโ€™s the explanation from the BP folks:

Figure 3. The explanation from BP about the โ€œinput-equivalentโ€ method used to make nuclear and everything else but fossil fuels look bigger than they are.

But that โ€œtwo and a half times realityโ€ is just imaginary energy. You canโ€™t use it to heat your house or run a factory. My graphics above show the actual energy consumed. And the truth is, nuclear provides less than 2% of our global energy needs, as does wind. And solar provides less than 1%.

Donโ€™t believe me? Hereโ€™s Our World In Data on the subject.

Figure 4. Percentage of energy consumption by source. DATA SOURCE.

Itโ€™s worth noting that traditional biomass is second only to fossil fuels in providing us with our daily energy, and that fossil plus traditional biomass provide us with ~ 93% of all the energy we use.

(A word in passingโ€”if youโ€™d prefer to deal with real energy numbers rather than imaginary โ€œinput-equivalentโ€ figures, look for the word โ€œConsumptionโ€ in the description of the data. Thatโ€™s the amount of energy that is actually consumed, not the โ€œinput-equivalentโ€ fantasy figures that the alarmists like to quote.)

Hereโ€™s the rude reality. Thereโ€™s no way we will get off of fossil fuels for decades and decades. And until we have a market-ready equally inexpensive replacement for fossil fuels, all that fighting against them will do is increase energy costs, and that will assuredly screw the poor today โ€ฆ

And while screwing the poor today in the false hope of helping them in the year 2050 isnโ€™t a crime โ€ฆ perhaps it should be. Because hereโ€™s the direction the lunacy is going.

Figure 5. Investment in solar energy and fossil fuels, 2013 and 2023

The IEA people are celebrating this, thinking itโ€™s a big win for renewables โ€ฆ but here is the 2023 investment in fossil fuels and solar per 2023 kilowatt-hour of energy consumed from each source:

Figure 6. 2023 investment in fossil fuels and solar energy, per kilowatt-hour (kWh) of energy consumed by each source.

Weโ€™re spending far more on solar than the real-world sale price โ€ฆ โ€œcheapest form of energyโ€, my okole โ€ฆ

Hereโ€™s another way to consider the insanity. According to the Manhattan Institute, weโ€™ve spent $5 trillion on wind, solar, and biofuels in the last two decades. That works out to $0.18 per kilowatt-hour (kWh) of wind + solar + biofuel energy consumed โ€ฆ

That subsidy alone is more than the US electricity sales price, which itself is jacked up by useless renewable sources. Many US states that run on coal and gas charge about $0.11 per kWh for electricity. Here in California, with lots of renewables, I pay $0.28 per kWh โ€ฆ grrrr.

Conclusion? Weโ€™re paying through the nose for useless, intermittent, unreliable renewable energy. After spending literally trillions of dollars on solar and wind, their combined contribution to the world energy situation is under two percent.

Under. Two. Percent.

Trivially small. Meaningless. Makes no difference. Lost in the noise.

But instead of admitting that and stopping the foolishness, politicians continue shoveling further billions of your and my money down a rathole and accomplishing โ€ฆ well โ€ฆnothing.

Think of all the good we could actually have done with those five trillion dollars spent over two decades on meaningless renewables. That works out to six hundred and eighty million dollars per day, or two hundred fifty billion per year โ€ฆ the number of pressing real-world problems we could have solved with that amount of money is incalculable.

If you want a list of what the money could be spent on, you couldnโ€™t do better than the Copenhagen Consensusโ€™s list ofย 12 of the best investmentsย we could make.

The 12 best investments for the world

The 12 best policies, our experts have identified, cover a wide range of areas: tuberculosis, education, maternal and newborn health, agricultural research and development, malaria, e-procurement, nutrition, land tenure security, chronic diseases, trade, child immunization and skilled migration.

These have both costs and benefits. The annual costs, as shown in the figure below, rise from $30 billion to almost $50 billion by the end of the decade, for an average cost of $41 billion per year. The 2030 cutoff just denotes the end of the SDG era โ€” these policies would also be phenomenally efficient in the years and decades after. Indeed, for some of them, the researchers estimated the costs and benefits far beyond 2030, as indicated in the individual analyses.

These have both costs and benefits. The annual costs, as shown in the graph above, rise from $30 billion to almost $50 billion by the end of the decade, for an average cost of $41 billion per year. The 2030 cutoff just denotes the end of the SDG era โ€” these policies would also be phenomenally efficient in the years and decades after. Indeed, for some of them, the researchers estimated the costs and benefits far beyond 2030, as indicated in the individual chapters.

Thatโ€™s just one look at the difference $280 billion could make if spent wisely over the next seven years. 4.2 million lives saved, $1.1 trillion in economic benefits.

Instead, hereโ€™s all the difference the $250 billion dollarsย per yearย spent on solar, wind, and biofuels over the last two decades made to atmospheric CO2 levels, the CO2 โ€œproblemโ€ that the trillions of wasted dollars are supposed to be solving.

Like I said โ€ฆ grrrr.

[UPDATE] Over at his substack, Dr. Roger Pielke Jr. has discussed the new BP data as follows:

The figure below shows that in 2022, more than 18% of total energy consumption came from non-fossil sources. Thatโ€™s the highest it has been in my lifetime.

Over the past decade, carbon-free energy consumption has increased as a proportion of total consumption from less than 14% to above 18%.

However, heโ€™s totally misrepresenting the situation. First, heโ€™s not including traditional biomass, which is larger than all his โ€œnon-fossilโ€ sources together.

Next, his โ€œnon-fossil sourcesโ€ (hydro, nuclear, wind, biofuels, solar, geothermal, other) only total 7.5% of total energy, not 18%. See Figure 4 above for confirmation. Heโ€™s showing you the โ€œinput-adjustedโ€ fake data.

Once we include traditional biomass (another โ€œnon-fossil sourceโ€) and use actual consumption figures rather than the โ€œinput-adjustedโ€ nonsense, the trend in non-fossil sources looks like this:

I canโ€™t comment on his substack because you have to be a subscriber, but I invite him to come here and discuss this question. If anyone knows him, could you please pass this invitation on to him?


On a related subject, since I had the new BP data in front of me, I thought Iโ€™d take a look at the capacity factor for solar installations in various countries. The โ€œcapacity factorโ€ is the ratio of the actual energy generation from a power source to the โ€œnameplateโ€ amount it generates at full power. For fossil and nuclear, this is on the order of 90% plus, meaning it generates full power about 90% of the time. Here are the capacity factors for grid-scale solar power by country.

Figure 5. Solar capacity factors by country.

Enjoy.

Here, itโ€™s Sunday, my day off from house maintenance and endless mowing. Went to the coast this morning with the Gorgeous Ex-Fiancรฉe. The Pacific was pacific indeed todayโ€”no waves, hardly a breath of wind. And as soon as I wrap up this post, gonna watch some bรฉisbol, Giants vs. Mets. Life is good.

With wishes that you all have a life full of wonder,

w.