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Joe Romm on May 22, 2013 at 12:30 pm

Dr. Ernest Moniz was sworn in as the new Energy Secretary this week. Last week, the previous Secretary, Dr. Steven Chu, gave an interview to Stanford where he is returning as a physics professor.

The Nobel laureate was asked “What’s the No. 1 problem on your list?” His answer:

Climate change. We’re heading into an era where if we don’t change what we’re doing, we’re going to be fundamentally in really deep trouble. We’re already in trouble. So we have to transition to better solutions.

We’re not too far away from producing a lot of renewable energy, and doing it cheaply. Solar power is going to become cheaper and cheaper – costs have plummeted three-fold in six years, partly because of the dropping price of modules and electronics. Wind energy is within 15 percent of the cost of new natural gas energy, and the DOE predicts that that cost will cross over within one or two decades, so we need to start to plan the transition system that can conduct more wind energy.

But right now, we’re not prepared. As technology continues to race forward – battery technology has advanced faster in the past five years than what I’ve seen in the [previous] 15 years – we need policy to guide and anticipate development. It takes decades to change things like infrastructure, and so people have to think about that today. Otherwise, progress slows down, and we emit more carbon and get into more trouble environmentally.

Back in 2009, Chu said “Wake up,” America, “we’re looking at a scenario where there’s no more agriculture in California.”

Chu did keep talking about climate change in the past 4 years, but neither the media nor the White House were paying much attention. And so we are “already in trouble” with much, much worse to come if we don’t act now.

thinkprogressDOTorg/climate/2013/05/22/2021201/chu-on-climate-if-we-dont-change-what-were-doing-were-going-to-be-fundamentally-in-really-deep-trouble/

Katie Valentine on May 22, 2013 at 3:45 pm

China is taking steps to tackle its huge carbon output. Today, the country announced the details of its first carbon trading program, which will begin in the city of Shenzhen next month. The southern city is one of seven cities and provinces, including Beijing, which will take part in the pilot program, set to be completely implemented by 2014.

And according to one local news source, China could implement an absolute, nation-wide cap on its carbon emissions by 2016. China’s 21st Century Business Herald reported this week that the country’s State Council still needs to approve the carbon cap proposal submitted by the National Development and Reform Commission, a government entity that controls much of the Chinese economy. The proposal, which the State Council is reportedly likely to support, would ensure China’s emissions would not increase past the country’s target cap, regardless of economic growth — though it’s still unclear what that cap would be. The paper reported that the NDRC also predicts China’s greenhouse gas emissions will peak in 2025, rather than 2030, as earlier predictions stated.

If the cap is adopted, it would be a major step for the world’s top CO2 emitter, which desperately needs to slow its carbon production. China is experiencing the world’s fastest growth in energy production and CO2 emissions, while production and emissions in the U.S. and Europe are flat-lining or decreasing. China uses 47 percent of the world’s coal, a number that’s only going up: in 2011, China’s coal consumption grew by 9 percent, accounting for 87 percent of the world’s 374 million ton increase in coal consumption that year.

The country’s emissions aren’t just a major contributor to climate change worldwide — they’re causing serious local problems as well. In Beijing, pollution has reached record levels, topping 775 in January — a number

thinkprogressDOTorg/climate/2013/05/22/2047111/china-carbon-cap/

May 22, 2013 5:35 PM MDT Updated: May 22, 2013 5:36 PM MDT
By Jack Gerfen, Weekend Weather/News Reporter

ST. JAMES, Minn. -
With the holiday weekend almost here, and two refineries down in the Chicago area, the price of regular unleaded is historically high statewide.

When gas is this high, many think about filling up with E85. E85 prices around the area range from 50 to over 80 cents cheaper than the price of regular unleaded, and in some places closer to a dollar cheaper.

E85 is 85% ethanol, 15% gasoline and can be used for vehicles whose engines are designed for it. Vehicles that use it may have an emblem on the rear of the vehicle that says Flex Fuel, if not, the gas cap is usually yellow with E85 on it.

Since it has become more popular, many engines are able to run the corn blend in new vehicles.

"It's not the first question they ask, but as we go through the process, yeah, it comes up to ask if its capable of burning both fuels the E85 and regular unleaded and I think a lot of times it does kind of add into the equation when they start making their choice," says Mark Nibbe, Sales Manager at Lager's Chrysler World.

E85 is cheaper than regular gas because the ethanol blend is cheaper. Its price is determined from supply of the corn and refinement. It's also home grown.

"It helps the entire state of Minnesota because our ethanol in Minnesota comes from Minnesota and we talk about it as being cleaner, renewable, and home grown and it provides economic activity and jobs and so on in the state of Minnesota," says Dale Busch, Regional Representative for Minnesota Corn Growers Association.

Busch says that while E85 is less efficient, a spread of around 40 cents is the break even point, but it does depend on the vehicle.

Gas prices look to remain high through the holiday weekend due to the start of the summer driving months and

keycDOTtv/story/22400771/e85-prices-significantly-lower-than-regular-unleaded

Absolute Energy Offers Drivers Relief at the Pump

Joanna Schroeder – May 22nd, 2013

As Memorial Day approaches marking the beginning of summer driving season, gas prices have spiked. Last week, gas prices went up .19 cents per gallon in Iowa with ending average prices at $3.70 per gallon. Spikes were even higher in Minnesota/St. Paul with prices averaging $4.21 across the state while the national average is around $3.60 per gallon.

In response Absolute Energy, an ethanol plant located on the Iowa-Minnesota border, is offering Minnesota drivers some relief at the pump in the form of ethanol. Absolute Energy is offering E85, (85 percent ethanol / 15 percent gasoline), in bulk to gas marketers impacted by the recent shut-down of three oil refineries for mostly seasonal reasons. According to E85Prices this week, the published average statewide E85 price is averaging $3.08 and has been reported to be as low as $2.39 per gallon in Eagan, Minn.

Rick Schwarck, CEO of Absolute Energy, said, “With gas prices spiking and ethanol plentiful in the Midwest, this will be the summer of the flex-fuel vehicle. Drivers of FFVs should be able to take advantage of serious savings at the pump by using E85. Not only will they be saving money, they will be choosing a fuel alternative that creates jobs and opportunities throughout Minnesota, Iowa and other states. E85 will drive us toward a cleaner, brighter summer sky thanks to lower greenhouse gas emissions while also strengthening our national security and economy.”

domesticfuelDOTcom/2013/05/22/absolute-energy-offers-drivers-relief-at-the-pump/

Obama's new Energy chief: Climate change ‘not debatable’

By Ben Geman - 05/22/13 11:03 AM ET

New Energy Secretary Ernest Moniz doesn’t want to spend his tenure battling over climate science.

“Let me make it very clear that there is no ambiguity in terms of the scientific basis calling for a prudent response on climate change,” Moniz told Energy Department employees shortly after his swearing-in.

“I am not interested in debating what is not debatable,” Moniz said in his remarks at the Tuesday ceremony. “There is plenty to debate as we try and move forward on our climate agenda.”

The comment was part of much wider-ranging remarks, available here, on Moniz’s overall agenda.

He also addressed the Energy Department’s missions around power grid resilience, oversight of the nation’s nuclear weapons stockpile, nonproliferation, scientific research and more.

Moniz is stepping into the Cabinet job at a time when President Obama has vowed new executive-level actions on climate.

Moniz, in a separate speech Tuesday, vowed to focus heavily on energy efficiency initiatives, which he called a vital tool in addressing greenhouse gas emissions.

thehillDOTcom/blogs/e2-wire/e2-wire/301287-new-energy-secretary-need-to-address-climate-change-not-debatable

Vicki Needham - 05/22/13 10:44 AM ET

Federal Reserve Chairman Ben Bernanke warned Congress that the central bank's actions will be insufficient to stave off a drag on the economy caused by rising taxes and spending cuts.

Bernanke told the Joint Economic Committee on Wednesday that a bevy of fiscal policy issues are creating headwinds and will "exert a substantial drag on the economy this year."

The expiration of the payroll tax cut, other tax increases, budget caps on discretionary spending, billions in sequestration and the declines in defense spending will weigh on the economy, and the Fed won't be able to stop the effects.

"Taking them all together, they have the effect of being a drag on economic growth, perhaps more than necessary," he said.

With interest rates near zero, "monetary policy does not have the capacity to fully offset an economic headwind of this magnitude."

Bernanke told lawmakers that instead of focusing on near-term budget cutting, Congress must take "more aggressive action to address the long-term issues that puts the budget on an unsustainable path."

"The objectives of effectively addressing longer-term fiscal imbalances and of minimizing the near-term fiscal headwinds facing the economic recovery are not incompatible," he told the panel.

"To achieve both goals simultaneously, the Congress and the administration could consider replacing some of the near-term fiscal restraint now in law with policies that reduce the federal deficit more gradually in the near term but more substantially in the longer run."

Bernanke argued that the still fragile economic recovery would have been "much weaker without the aggressive monetary policy" of the Fed, but said that "monetary policy is not omnipotent" and is unable to do all the work to boost growth.

He said the after effects of the financial crisis, the ongoing fiscal crisis

thehillDOTcom/blogs/on-the-money/economy/301279-bernanke-fed-cant-stave-off-economic-slowdown-this-year

May 22, 2013 at 12:49 pm by Jennifer A. Dlouhy

Wednesday’s congressional debate on the Keystone XL pipeline will be a forum for a host of other contentious topics, including climate change, oil spills and protectionist policy.

The debates will come as the House of Representatives takes up legislation to speed approval of the proposed Keystone XL pipeline that would carry diluted bitumen from Canadian oil sands developments to Gulf Coast refineries.

Although the bill sponsored by Rep. Lee Terry, R-Neb., probably will pass the House, it faces a presidential veto threat, and is unlikely to advance in the Senate anyway. Nevertheless, the legislation represents a new opportunity for Keystone XL’s congressional supporters to pressure the White House into approving TransCanada Corp.’s pipeline, eight years after the company first proposed it.

And to congressional Democrats — including some who support the pipeline — Wednesday’s debate is a chance to get lawmakers on record on politically sensitive issues surrounding the project.

For instance, Rep. Henry Waxman, D-Calif., wants the House to vote on an amendment that would add a provision stating that using oil sands crude would boost heat-trapping greenhouse gas emissions as much as 4.3 million passenger vehicles. Waxman’s proposal also would make the streamlined approval of Keystone XL under the bill contingent on oil sands producers or TransCanda fully offsetting greenhouse gas emissions associated with the project.

Read more: Activists threaten massive protests if Obama approves Keystone XL

Other lawmakers are using amendments to highlight the risk of leaks along the pipeline’s path, after recent spills of diluted bitumen have proved more difficult to clean up than anticipated. TransCanada has acknowledged that oil sands-derived crudes can be driven to the bottom of turbulent water, sticking to rocks and making...

fuelfixDOTcom/blog/2013/05/22/climate-change-trade-policy-enter-debate-over-keystone-xl/

Global oil BOOM forcing Saudi Arabia 2 cut oil production

May 22, 2013 at 10:30 am by Jeannie Kever

Saudi Arabia has cut crude oil production this year and will have to cut it further if it wants to prevent a significant drop in the global oil price, according to the latest Global Crude Oil Outlook from Energy Security Analysis Inc.

The Massachusetts-based consulting firm said Saudi Arabia, perhaps with help from Kuwait, Qatar and the United Arab Emirates, will need to drop production by a million barrels a day from 2012 levels to defend $100 Brent crude, the global benchmark oil price.

The prediction is in line with a report from the International Energy Agency, which said last week that most of the world’s new oil production over the next five years would come from outside OPEC.

South Texas boom: Eagle Ford barrels hit record high

Much of that shift is due to the North American shale oil boom, according to the IEA, but also growing production in Brazil and Iraq.

The Energy Security Analysis outlook said Saudi Arabia, Kuwait, the United Arab Emirates and Qatar produced an average of 15.2 million barrels per day in the first quarter of 2013, down from an average of 15.8 million barrels per day in the fourth quarter of 2012.

Halfway through the second quarter of 2013, it said production appears to be about 15.1 million barrels per day.

Other OPEC countries are maintaining average production at 15.2 million barrels per day.

Saudi Texas: Oil’s new reign in Texas draws comparisons to the Kingdom

Looking forward, the report said, in order to prevent surplus inventories, producers along the Arab Gulf, excluding Iran and Iraq, will need to cut production during the second half of the year, despite expected lower production in Libya and Nigeria.

“OPEC can manage supply effectively this year, but not through benign neglect,” Sarah Emerson, energy principal at Energy Security Analysis Inc., said in a statement.

fuelfixDOTcom/blog/2013/05/22/us-shale-forcing-saudi-arabia-to-cut-oil-production/

... the week ending May 17, 2013, 4 thousand barrels per day below the previous week’s average. Refineries operated at 87.3 percent of their operable capacity last week. Gasoline production increased last week, averaging over 9.2 million ...

U.S. crude oil refinery inputs averaged over 15.2 million barrels per day during the week ending May 17, 2013, 4 thousand barrels per day below the previous week’s average. Refineries operated at 87.3 percent of their operable capacity last week. Gasoline production increased last week, averaging over 9.2 million barrels per day. Distillate fuel production increased last week, averaging 4.8 million barrels per day.

U.S. crude oil imports averaged over 8.1 million barrels per day last week, up by 507 thousand barrels per day from the previous week. Over the last four weeks, crude oil imports have averaged 7.9 million barrels per day, 932 thousand barrels per day below the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 1.1 million barrels per day. Distillate fuel imports averaged 101 thousand barrels per day last week.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 0.3 million barrels from the previous week. At 394.6 million barrels, U.S. crude oil inventories are above the upper limit of the average range for this time of year. Total motor gasoline inventories increased by 3.0 million barrels last week and are near the upper limit of the average range. Both finished gasoline inventories and blending components inventories increased last week. Distillate fuel inventories decreased by 1.1 million barrels last week and remained in the lower half of the average range for this time of year. Propane/propylene inventories increased by 2.2 million barrels last week, and are in the middle of the average range. Total commercial petroleum inventories increased by 4.2 million barrels last week.

Total products supplied over the last four-week period have averaged 18.6 million barrels per day, down

irDOTeiaDOTgov/wpsr/wpsrsummary.pdf

Data Overview (Combined Table 1 and Table 9)

irDOTeiaDOTgov/wpsr/overview.pdf

May 22, 2013

The USDA's May 10 World Agricultural Supply and Demand Estimates report contained supply and consumption projections for the 2013-14 marketing year for U.S. corn and soybeans. For the most part, the market focused on the projections of crop size, but according to University of Illinois agricultural economist Darrel Good, the most important information is in the projections of marketing year consumption.

"The U.S average corn yield is projected at 158 bushels per acre, below our calculation of trend yield near 161.5 bushels, and production is projected at a record 14.14 billion bushels," Good said. "The U.S. average soybean yield is projected at 44.5 bushels per acre, above our trend-yield calculation near 44 bushels, and production is projected at a record 3.39 billion bushels. The projected corn yield reflects the expectation that yield potential has been compromised by the likelihood that a much larger-than-average percentage of the 2013 crop will be planted later than is optimal for maximum yield potential. The soybean yield forecast reflects an opportunity to plant much of the crop in a timely fashion with much improved soil moisture conditions in many areas," Good said.

According to Good, the yield of both crops will be determined by weather conditions yet to unfold so considerable uncertainty will persist for another three months. In addition, the magnitude of planted acreage is not yet known with more information to be available in the USDA's June Acreage report.

"The consumption projections for both crops reflect judgment about the size of the market under conditions of ample supplies and much lower prices," Good said. "These projections are valuable because they provide context for evaluating the price implications of production potential as it unfolds over the next few months," he said.

For corn, use for ethanol and by-product production is forecast at 4.85

farmersadvanceDOTcom/article/20130522/MARKETOUTLOOK/305220312/1053

... The (Slow, Tentative) Greening of the GOP ...

NIST Tech Beat: May 14, 2013
Mark Bello

Chances are you know how many miles your car logs for each gallon or tankful of gas, but you probably have only a foggy idea of how much energy your house consumes, even though home energy expenditures often account for a larger share of the household budget.

This disparity in useful energy data is just one of several information gaps that must be bridged as the United States transitions towards residences that generate as much energy as they use over the course of a year—so-called net-zero houses.

Gaps—and strategies to overcome them—are summarized in Strategies to Achieve Net-Zero Energy Homes: A Framework for Future Guidelines, a new publication* from the National Institute of Standards and Technology (NIST) based on the discussions at a 2011 workshop convened by the agency.

One such strategy, proffered by experts who attended the workshop, is to require that energy costs be listed in all real-estate transactions.

"This means incorporating energy in the appraisal process, and the valuation of principal, interest, taxes, and insurance (PITI), so that it incorporates energy cost considerations to become the valuation of principal, interest, taxes, insurance, and energy cost considerations (PITIE)," the report says.

The report breaks out three categories of challenges: design, technology and equipment, and the needs and behaviors of homeowners and the building industry.

With regard to design, one workshop recommendation is to establish a scoring system for new and used homes so that prospective buyers can "compare energy, durability, indoor air quality, accessibility, and other factors relative to their needs."

In net-zero energy homes, energy loads will be substantially lower than current heating and cooling equipment is built to deliver and existing product performance standards are designed to test. According to the

nistDOTgov/el/netzero-051413.cfm

Energy Matters

Some Australian businesses installing commercial scale solar power systems can now source electricity cheaper than from the mains grid.

According to an article on The Australian, the economics of solar have improved so much in recent years, commercial solar is being installed without major subsidies.

Quoting figures from AGL, The Australian states the number of commercial scale solar installations has jumped from 550 in the first four months in 2012 to 1,460 in the same period this year.

The reason for the jump isn't so much to do with the environmental aspect, which can have benefits in terms of customer perception; but more to do with bottom line results.

"The cost of buying solar is now cheaper than buying from the grid, even with zero subsidies," says UBS utilities analyst David Leitch.

Australian commercial solar installer Energy Matters says if businesses are paying more than 20c/kWh for daytime electricity consumption, a system sized to generate equivalent to that consumption will provide a payback time of between 5 and 7 years; "after which time, the electricity you generate is essentially free".

Also a significant player in the residential solar sector, Energy Matters' commercial arm installs systems for businesses, schools and community organisations across Australia from 20 kilowatts to 1 megawatt capacity.

Energy Matters recently announced it was commencing work on a 290kW solar power system for foodservice giant Bidvest; which will be one of the largest purely privately funded solar installations in Australia.

Commercial scale solar arrays still represent a significant capital investment, "so it is important to know what you are buying and from whom," says Energy Matters; which offers a free commercial solar guide to assist businesses discern value-for-money proposals from sales spin.

"Undertaking research

energymattersDOTcomDOTau/index.php?main_page=news_article&article_id=3754

Planting surge sinks corn futures

Dow Jones Newswires05/21/2013 3:32pm

U.S. corn futures settled at a four-week low Tuesday, after a surge in corn plantings last week eased concerns that planting delays this spring could reduce the new crop's output.

Corn futures for July delivery at the Chicago Board of Trade settled down 9 1/2 cents or 1.5% at $6.40 a bushel, the lowest close for the front-month contract since April 24.

U.S. farmers sowed corn at a feverish pace last week as warm, dry weather allowed producers throughout the Midwest to return to their fields, a government report showed Monday. Cold, wet weather from Nebraska to Ohio earlier this spring had caused a slow start to plantings, raising worries of tighter corn supplies after the fall harvest.

VIDEO: Critical Weather for Corn Planting

On Monday afternoon, the U.S. Department of Agriculture said the corn crop was 71% planted as of Sunday, up sharply from 28% a week earlier. The one-week percentage gain in seedings matched the record of 43 percentage points set in 1992.

Wheat futures were pulled lower by the decline in corn prices and expectations for ample world wheat supplies this year. Analysts expect production to rebound from last year's drought-reduced levels in areas like the former Soviet Union.

Soybean futures ended mixed, with nearby futures jumping on tight current supplies and strong demand from domestic processors.

CBOT July wheat settled down 4 3/4 cents or 0.7% at $6.80 1/2 a bushel, the lowest close for the front-month contract since April 2. July soybeans rose 13 3/4 cents or 0.9% to $14.78 1/4 a bushel.

agricultureDOTcom/markets/analysis/corn/plting-surge-sinks-cn-futures_9-ar31671

Corn futures near two-week low as USDA data show jump in plantings

May 21, 2013, 2:14 PM

Corn futures were poised to log their lowest close in almost two weeks on Tuesday after a report from the U.S. Department of Agriculture showed that plantings of corn jumped for the week ended Sunday, from a week earlier.

July corn CN3-0.16% traded at $6.35 per bushel, down nearly 15 cents, or 2.3% on the Chicago Board of Trade. If prices close around this level, that’ll mark the lowest settlement for a most-active contract since May 8, according to FactSet data.

The USDA’s Crop Progress report released late Monday showed that 71% of the corn crop was planted as of the week ended May 19. A week earlier, plantings were at just 28%. The percentage was still well below the five-year average of 79% and 95% for the same period a year ago, data show.

The report showed “substantial catch up” due to better weather conditions, said analysts at Cowen Securities, in a note Tuesday. “With the pace of planting demonstrated this past week, we continue to believe that farmers should be able to make up a substantial portion of lost time in the next few weeks.”

The analysts reiterated their “cautious outlook” on agricultural shares, noting that they still expect a large corn crop.

Even so, “until the next harvest for corn and soybeans, domestic supplies will be very, very tight,” American Restaurant Association President David Maloni wrote in The Maloni Report, a daily newsletter covering food service-related commodity markets. “This should be supportive of nearby grain futures deep into the summer.”

blogsDOTmarketwatchDOTcom/thetell/2013/05/21/corn-futures-near-two-week-low-as-usda-data-show-jump-in-plantings/