• 20 mins Thanksgiving Gas Prices At 3-Year High
  • 4 hours Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 6 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 10 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 10 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 11 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 13 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 4 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 5 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 6 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 7 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects

Breaking News:

Thanksgiving Gas Prices At 3-Year High

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Coal Consumption Increases in the EU: Is the Carbon Trading Scheme a Failure?

Coal Consumption Increases in the EU: Is the Carbon Trading Scheme a Failure?

The EIA has reported that natural gas in the US now accounts for an equal portion of power production as coal, both contributing 32% of total generation. This led the US to reduce their carbon emissions by 92 million tonnes in 2011, a 1.7% decrease from the year before.

Unfortunately, despite having the most ambitious carbon reduction regulations in the world, Europe is now heading in the opposite direction as they saw coal consumption increase by 3.3% compared to 2010.

Germany’s coal consumption increased by 1.2% compared to 2010, despite its renewable energy intentions, and large capacity of photovoltaic installations. Spain, who has also been investing heavily in renewable sources such as solar and wind, saw their coal consumption increase by more than 50%. Over all EU coal imports from the US increased by 49%.

The reason is purely financial. Coal imported from the US is very cheap, and so are the carbon permits sold under the EU Emissions Trading Scheme, prices of which have fallen 17% this year already. Energy utilities find it much more profitable to use coal power plants and buy the permits for the extra emissions, than shift to renewable energy sources, or other low carbon fuels.

Cheap natural gas is the main reason that the US has been able to reduce its carbon emissions by so much, however gas prices in Europe are no way near as low as in the US. European utilities are actually closing gas-fired power plants in favour of coal ones. Deutsche Bank AG has predicted that 6.4GW of Germany’s natural gas plants will be closed by 2015. Yet at the same time the Economics Ministry in Berlin has stated that “fossil fuel-fired power plants are essential for a secure energy supply,” and that 17 new power plants will be built by 2022. If some of these are to be coal powered, then it will prove the failure of the EU carbon trading scheme.

By. James Burgess of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News