Global warming, climate change, all these things are just a dream come true for politicians. I deal with evidence and not with frightening computer models because the seeker after truth does not put his faith in any consensus. The road to the truth is long and hard, but this is the road we must follow. People who describe the unprecedented comfort and ease of modern life as a climate disaster, in my opinion have no idea what a real problem is.
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.
BPโs 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 companyโs 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”.
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.
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.
โThe 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 companyโs 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 โdangerous 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 reporterโs byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.
One of Americaโs biggest oil companies is to abandon its headquarters in California amid a backlash against โharshโ 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 worldโs 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)
It is the latest oil company to walk away from the state, while other employers such as Elon Muskโs SpaceX have also relocated following rows with state authorities about new legislation.
These 11 charts show how Americaโs 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 Europeโs biggest energy companies are abandoning the SS Offshore Wind.
These 11 charts show how Americaโs 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 Marthaโs Vineyard in June 2023. Photo:ย Abigail Rosen, MV Times.
Two of Europeโs 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 โdeliver 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 companyโs offshore wind and renewable power businesses.
Last month, Murray Auchincloss, the CEO of oil and gas giant BP, imposed a โhiring freeze and paused new offshore wind projects.โ According to Reuters, the new CEO is putting more โemphasis on oil and gas amid investor discontent over its energy transition strategyโ and that BP (2023 revenue: $208 billion) was cutting investments in โbig 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 OโDonnell, 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 donโt jibe with the tsunami of hype about offshore wind energy that has appeared in major media outlets. But the hard reality is that Americaโs offshore wind sector is a subsidy-dependent industry that is dominated by foreign companies who are in bed with some of Americaโs 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.
โWhat is Big Wind going to say when they kill the last whale? โSorryโ?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 havenโt 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. Oliverโs 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 Iโve been privileged to meet over the last decade as Iโve 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 sheโs special, but not unique. Oliver โ and the many others Iโve met who are fighting the energy sprawl that inevitably comes with alt-energy โ all share a common value. What is it? Itโs 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: โThere are no do-overs when the last whale is killed off,โ she explained. โThere are fewer than 350 North Atlantic Right Whales left. What is Big Wind going to say when they kill the last whale? โSorryโ?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 6: Iโm 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: โOffshore 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 clubโs 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. Hereโs my plain English translation: โThese projects wonโt 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 thatโs a topic for another Substack.)
I will close by repeating W. Edwards Demingโs famous line: โIn God we trust, all others must bring data.โ The data shows offshore wind energy is a lousy deal for whales and ratepayers.
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 โdeliver 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 companyโs offshore wind and renewable power businesses.
Last month, Murray Auchincloss, the CEO of oil and gas giant BP, imposed a โhiring freeze and paused new offshore wind projects.โ According to Reuters, the new CEO is putting more โemphasis on oil and gas amid investor discontent over its energy transition strategyโ and that BP (2023 revenue: $208 billion) was cutting investments in โbig budget, low-carbon projects, particularly in offshore wind, that are not expected to generate cash for years.โ
Two of Europeโs 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 โdeliver 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 companyโs offshore wind and renewable power businesses.
Last month, Murray Auchincloss, the CEO of oil and gas giant BP, imposed a โhiring freeze and paused new offshore wind projects.โ According to Reuters, the new CEO is putting more โemphasis on oil and gas amid investor discontent over its energy transition strategyโ and that BP (2023 revenue: $208 billion) was cutting investments in โbig 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 OโDonnell, 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 donโt jibe with the tsunami of hype about offshore wind energy that has appeared in major media outlets. But the hard reality is that Americaโs offshore wind sector is a subsidy-dependent industry that is dominated by foreign companies who are in bed with some of Americaโs 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.
โWhat is Big Wind going to say when they kill the last whale? โSorryโ?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 havenโt 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. Oliverโs 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 Iโve been privileged to meet over the last decade as Iโve 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 sheโs special but not unique. Oliver โ and the many others Iโve met who are fighting the energy sprawl that inevitably comes with alt-energy โ all share a common value. What is it? Itโs 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: โThere are no do-overs when the last whale is killed off,โ she explained. โThere are fewer than 350 North Atlantic Right Whales left. What is Big Wind going to say when they kill the last whale? โSorryโ?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 6: Iโm 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: โOffshore wind kills whalesโฆThe 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 clubโs 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. Hereโs my plain English translation: โThese projects wonโt 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 thatโs a topic for another Substack.)
I will close by repeating W. Edwards Demingโs famous line: โIn God we trust, all others must bring data.โ The data shows offshore wind energy is a lousy deal for whales and ratepayers.
Almost all of BPโs biggest shareholders are unhappy with its shift to green energy, an activist investor has claimed, amid a growing backlash over the oil giantโsย focus on netย zero targets.
Oil giant faces fresh pressure to halt renewables investments.
Almost all of BPโs biggest shareholders are unhappy with its shift to green energy, an activist investor has claimed, amid a growing backlash over the oil giantโs 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 companyโs top 30 investors. The Telegraph has the story.
He said: โWith 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 โin 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 โclearly expose them to the fact that many investors are sympathetic to what we are sayingโ.
He is hopeful this will serve as a โwake-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, BPโs new chief executive, who has told staff that he will stick to the green energy plans rolled out by his predecessor Bernard Looney.
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
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.
Laborโs renewable โinvestmentsโ 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 โmore decisive action across all levels of governmentโ is a sign of increasing desperation as the governmentโs emissions-reduction timetable falls hopelessly behind.
The giant boring machine crawling beneath the Snowy Mountains is an apt metaphor for the governmentโs 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 Bidenโs 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. Orstedโs 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.
Britainโs 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, BPโs head of low-carbon energy, told a Financial Times conference on Wednesday that the US offshore wind industry was โfundamentally brokenโ and required a โfundamental 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.โThereโs really not a Plan B right now,โ environmentalist Jeff Tittel told the New York Times. โItโs 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. โWe arenโt just building an industry from scratch,โ he said. โWe 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 ministerโs 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.
โWe need you,โ Bowen told the industry gathering. โWe need your capital. We need your investment. We need your experience.
โThe 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 governmentโs 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 governmentโs 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 โthe 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 Australianโs Economic and Social Outlook Conference last week, Chalmers flagged a โuniquely 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 โto 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.
โAustralia 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. โBut 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. Bowenโs obstinacy comes at a price. The Australian
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
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 Yorkโs utility regulator has blown away pleas for contract relief.
โNearly all of New Yorkโs pacesetting 4.3GW of contracted offshore wind capacity is now in limbo following rejection of developersโ pleas for inflation relief by the stateโs utility regulator.โ
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.
โNew York Public Service Commission (PSC) denied petitions by the stateโs 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 โbreathtakingโ.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.
โRegulator said cost hikes of up to 55% would have substantial ratepayer impacts and were โfundamentally inconsistentโ with commission policy.โ
The Uncertain Path Ahead
The decision leaves a significant portion of New Yorkโs 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 PSCโs 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. Weโll see how many walk away.
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
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 โThermalโ) 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:
Oil
194%
Gas
525%
Coal
178%
WFFC
239%
PE
287%
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 โaverageโ 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 (ฮT), 1861-2000. The thin dashed line represents annual ฮT, the bold lineโits 13-year smoothing, and the line constructed from rectanglesโWFC (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.
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 โStatistical Review of World Energyโ to an outfit called the โEnergy Instituteโ at the end of last year.
They released the new version, with annual data updated to 2022, on Monday (4 days ago).
Since I had the new data, I thought Iโd 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 โYou donโt understand. Solar and wind are growing exponentially! Just wait a few years and youโll see!โ
So, having now waited a few years, hereโs the 2022 version. This time Iโve split out fossil fuels as a separate line. Iโve 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 doesnโt provide even a third of the energy we get from wood and dung.
Next, I can hear some people thinking โWait a minute, what about all the nuclear and the hydroelectric? Iโve seen charts where they are much larger! Why is the violet line so near to the red line?โ
Well, the simplest answer is โฆ weโre being lied to. Those charts youโre 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, hereโs the explanation from the BP folks:
Figure 3. The explanation from BP about the โinput-equivalentโ method used to make nuclear and everything else but fossil fuels look bigger than they are.
But that โtwo and a half times realityโ is just imaginary energy. You canโt 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%.
Donโt believe me? Hereโs Our World In Data on the subject.
Figure 4. Percentage of energy consumption by source. DATA SOURCE.
Itโs 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 passingโif youโd prefer to deal with real energy numbers rather than imaginary โinput-equivalentโ figures, look for the word โConsumptionโ in the description of the data. Thatโs the amount of energy that is actually consumed, not the โinput-equivalentโ fantasy figures that the alarmists like to quote.)
Hereโs the rude reality. Thereโs 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 โฆ
And while screwing the poor today in the false hope of helping them in the year 2050 isnโt a crime โฆ perhaps it should be. Because hereโs 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 itโs a big win for renewables โฆ 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.
Weโre spending far more on solar than the real-world sale price โฆ โcheapest form of energyโ, my okole โฆ
Hereโs another way to consider the insanity. According to the Manhattan Institute, weโve 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 โฆ
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 โฆ grrrr.
Conclusion? Weโre 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 โฆ well โฆnothing.
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 โฆ 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 couldnโt do better than the Copenhagen Consensusโs 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.
Thatโs 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, hereโs 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 โproblemโ that the trillions of wasted dollars are supposed to be solving.
Like I said โฆ 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. Thatโs 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, heโs totally misrepresenting the situation. First, heโs not including traditional biomass, which is larger than all his โnon-fossilโ sources together.
Next, his โnon-fossil sourcesโ (hydro, nuclear, wind, biofuels, solar, geothermal, other) only total 7.5% of total energy, not 18%. See Figure 4 above for confirmation. Heโs showing you the โinput-adjustedโ fake data.
Once we include traditional biomass (another โnon-fossil sourceโ) and use actual consumption figures rather than the โinput-adjustedโ nonsense, the trend in non-fossil sources looks like this:
I canโt 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 Iโd take a look at the capacity factor for solar installations in various countries. The โcapacity factorโ is the ratio of the actual energy generation from a power source to the โnameplateโ 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, itโs 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 todayโno 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,
You must be logged in to post a comment.