• 50 mins Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 5 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 6 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 7 hours Rosneft Signs $400M Deal With Kurdistan
  • 9 hours Kinder Morgan Warns About Trans Mountain Delays
  • 16 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 21 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 1 day Russia, Saudis Team Up To Boost Fracking Tech
  • 1 day Conflicting News Spurs Doubt On Aramco IPO
  • 1 day Exxon Starts Production At New Refinery In Texas
  • 1 day Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
World Class Copper Auction Draws Major Interest

World Class Copper Auction Draws Major Interest

Peru’s mega Michiquillay copper is…

Can India Overtake China In The EV Revolution?

Can India Overtake China In The EV Revolution?

India wants to drastically increase…

NatGas Killing Off Nuclear In NY

NatGas Killing Off Nuclear In NY

In a city once plagued by the flight of manufacturing, the presence of two nuclear power plants for the past four decades has been an economic lifeline. Now, though, their operator wants to close one of them no later than early 2017.

Entergy Corp. said Nov. 2 that it will close the James A. FitzPatrick Nuclear Power Plant in Scriba, N.Y., a move to save the company between $225 million and $275 million over the next five years, not only by limiting its operating losses but also reducing the capital expense of buying more fuel for the plant and paying an estimated 1,000 outside employees for a month-long refueling a year from now.

Civic leaders in upstate Oswego County, where Scriba is situated, say they’re looking for a way to persuade Entergy, based in New Orleans, to change its mind, but Entergy executives told Wall Street analysts that the decision is “clearly appropriate” for the company’s future.

Maybe the company will now prosper, but Scriba’s residents fear for the effect on their town.

Related: Oil Tankers Are Filling Up As Global Storage Space Runs Low

“I think it’s going to have a very, very devastating effect on our area and our schools,” said Missy Taylor, who owns Scriba’s Stylin & Smilin Hair Salon. “You’re going to see more homes abandoned.”

Taylor said two of her customers, a married couple who work at the FitzPatrick plant, were considering building a new home, but now have put those plans on hold until they learn whether they will still have jobs after the facility is shut down. “They’re nervous,” she said. “They don’t know what to do.”

Officials throughout the state as well as in Oswego County have been urging Gov. Andrew Cuomo to come up with a plan to head off a closure. Already Cuomo has called instead for Entergy to shut down another of its nuclear plants, Indian Point, just north of New York City, in order to keep FitzPatrick open.

Related: Is The Oil Industry Really Subsidized?

Entergy, though, notes that the recent proliferation of plants powered by low-cost gas has left FitzPatrick losing $60 million a year. Besides, the company points out, it has only one reactor, compared with the two at Indian Point. And the nuclear plant next to FitzPatrick, the Nine Mile Point Nuclear Power station, operated by another utility, Exelon, based in Chicago, also has two reactors.

Gas produced prodigiously through hydraulic fracturing is the chief culprit, Matt Huber, a professor at the Maxwell School of Citizenship and Public Affairs at nearby Syracuse University, told the regional broadcaster CNY Central. He said the practice, also called fracking, has created a gas glut with prices so low that nuclear power can’t compete with it.

Besides, Huber said, nuclear power is expensive even without competition from gas. “It costs an enormous amount, so they are already hurting from an economic standpoint,” he said. “So this natural gas thing is just going to make it worse.”

Related: OPEC’s Strategy Is Working According To Cartel’s Latest Report

Entergy has more than 600 employees at the FitzPatrick plant who are paid an average of more than $120,000 a year – more than twice the average annual pay of employees in any other industry in the area, according to L. Michael Treadwell, the executive director of Operation Oswego County, an agency that promotes industrial development in the region.

Treadwell said it would be nearly impossible to find so many new jobs with equivalent pay in the area. He knows because he has experience dealing with mass layoffs.

Entergy says it plans to lay off half of FitzPatrick’s 600 employees as soon as the plant is closed, then lay off more gradually as the reactor’s spent fuel cools off and is disposed of. The company said it will try to find new jobs for the idled workers, but they probably would have to be transferred to other plants it operates, an option that would only disrupt the Scriba community even further.

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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