• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 2 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 4 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 7 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 7 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Alt Text

Oil Tycoon Hamm Slams EIA’s Overoptimistic Shale Forecasts

Shale billionaire and chief executive…

Alt Text

Is China Heading Toward An Energy-Debt Crisis?

China’s influence is often overlooked…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Why Greenbacks Aren't Going Toward Green Energy

Why Greenbacks Aren't Going Toward Green Energy

Coal-fired power in the United States should start to ebb as regulations targeting pollution come into effect. More power, in turn, is coming online in the form of green energy resources, but so far, the money isn't backing that momentum.

U.S. coal production during the first quarter of 2014 was down 1.1 percent year-on-year and should continue that trend into 2015. For the first three months of the year, however, coal consumption was 9.3 percent higher than last year, the U.S. Energy Information Administration (EIA) said in its most recent monthly market report.

Last week, the Environmental Protection Agency (EPA) unveiled new regulations aimed at cutting carbon emissions by 30 percent from a 2005 baseline by 2030. The regulation in part targets emissions from the more than 600 coal-fired power plants in the country.

EIA said that as older coal power plants shut down in response to stricter pollution standards, consumption should decline by 3.1 percent in 2015. Energy generated from renewable resources like wind a solar, meanwhile, should grow by 4.1 percent.

Wind power capacity is expected to lead the way in the U.S. renewable energy sector and should account for 4.5 percent of the electricity generated in the country by next year.

But that trend masks part of the story. Chevron, which said in an ad campaign that it was investing "millions [of dollars]" on renewable energy resources, has shied away from the renewable energy industry to focus on its highly profitable oil and gas business.

Related Article: EPA Inflicts Mortal Wound on King Coal

BP, which has tried to rebrand itself as a company moving "beyond petroleum," said in a March sustainability report it wasn't making "a public commitment on future spending for alternative energy."

That means two of the largest energy companies in the world are out of the game. The problem, as Chevron's profits indicate, may lie in the costs.

According to estimates from British multinational banking firm Barclays, the EPA's new rules could add as much as 10 percent to utility rates by 2013. That means it could cost more than $8 billion to follow the new rules.

More than 1,000 U.S. respondents taking part in a June survey from Bloomberg News said they'd be willing to pay higher utility bills if it would lead to a corresponding decrease in pollution. But that can only happen if energy companies switch to cleaner-burning fuels.

The International Energy Agency (IEA) said in a global investment outlook that the international community needs to spend trillions of dollars to keep the lights on through 2035. While 15 percent of the annual investments target renewable energy, the IEA said more than half, or more than $1 trillion, will be spent on fossil fuels.

By Daniel J. Graeber of Oilprice.ocm




Back to homepage


Leave a comment

Leave a comment




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