Senators Boxer and Kerry introduced a Climate bill in the Senate that would require a 20% reduction in emmisions by 2020 from 2005 levels (the US House passed a version earlier this year). Reactions are mixed. Stay tuned for a busy Senate session this fall. Meanwhile the EPA moved forward with its own plan for GHG regulation which would not require congressional approval.
Senate Introduces New Cap-n-Trade Bill
Posted in Greenhouse Gas Emissions, Legislation Leave a comment
Block & Index - What Should I Do?
We have a lot of conversations with our clients and prospective clients about the electricity and natural gas markets. Most of those conversations revolve around taking either a “fixed price, variable (indexed) price or a combination of the two (block and index) 3rd party supply contract”. The other part of the conversation usually revolves around “how long of a term” and “when should we do this”. What NuEnergen does best in our energy sourcing group is to have the necessary conversations with Sr. Management around risk management and budget. We find that most of the time by doing a deep dive with the right group of people around these two issues, coupled with our in depth analysis of where the market is heading, we’re able to best recommend the strategy that is right for you. Our process involves many moving parts, but the most important part of that process typically lies with our clients, their short and long term financial goals and their risk tolerance. So the next time someone gives a recommendation on purchasing energy in a deregulated market, ask the question - why?
Posted in Energy Sourcing Leave a comment
Ontario Bets Billions on Wind Power
Ontario’s power grid is getting a $2.3 billion makeover as part of an ambitious, three-year effort to create 20,000 jobs and bring more green electricity to homes and businesses across the province.
In all, 20 projects are slated to go ahead. Some will boost capacity of existing transmission corridors, while others involve construction of “enabler lines” that branch out from corridors and tap into areas with rich wind and hydro electric potential.
Even with difficult economic times, this will be a record year for wind energy development in Canada. By the end of 2009, wind turbines installed in Canada will have the capacity to generate 3,169 megawatts of power, though about a third of that figure more realistically reflects average output over the year.
Posted in Renewable Energy Leave a comment
NuEnergens John Carmichael - Tailhooker of the Year
This September 10th, John Carmichael (Director of Client Services) was named Honorary Tailhooker of the Year at the 2009 Tailhook Annual Reunion and Symposium in Reno, Nevada. John has been writing a blog for the Tailhookers for the past couple of years. We’re proud of John and his achievements with the U.S. Navy. You can read more here about his being honored by the Navy.
Posted in Current Affairs, NuEnergen Leave a comment
Gore Pushes for Investment to Fight Climate Change
Former Vice President Al Gore urged U.S. lawmakers to pass President Obama’s proposed $816 billion economic stimulus package, saying it will boost the economy while “beginning to solve the climate crisis.”
“The plan’s unprecedented investments in four key areas — energy efficiency, renewables, a unified national energy grid and the move to clean cars — represent an important down payment and are long overdue,” Gore told members of the Senate Foreign Relations Committee in Washington today in prepared testimony.
Obama and Democratic leaders in Congress have made passing legislation to fight global warming and promote clean energy a top priority. Gore’s testimony will lend clout to their efforts to reach consensus, environmental advocates said.
Gore, who has lectured worldwide about the dangers of global warming and was awarded the Nobel Peace Prize in 2007 for his efforts, has called for a 90 percent reduction in heat-trapping carbon dioxide emissions by 2050 and for the U.S. to produce all its electricity from renewable energy by 2018.
Posted in Greenhouse Gas Emissions Leave a comment
China - The New Wind Superpower
The numbers are in, and as expected 2008 set a record year for the worldwide wind industry as new wind farms generating a total of 27,000 megawatts of greenhouse gas-free electricity came online, according to the Global Wind Energy Council.
The headline was that the United States overtook the world’s green superpower, Germany, by installing 8,358 megawatts in 2008 - a 50% jump from the previous year and enough wind energy to power two million American homes. But the big story this year will be China’s rapid emergence as a global wind power.
China last year doubled its wind energy capacity - for the fourth straight year - adding 6,300 megawatts of new electricity generation for a total capacity of 12,210 megawatts. A third of the world’s new wind capacity last year was installed in Asia, with China accounting for 73% of that power. China reached its 2010 target of generating 5,000 megawatts of wind-powered electricity in 2007 and is expected to hit its 2030 goal of 30,000 megawatts years early.
Of course, 30,000 megawatts of wind is but a flicker in a country with more than 3,00,000 megawatts of coal-fired energy online but it’s huge by world standards and has spawned both a burgeoning domestic wind industry and growing investment by overseas companies. General Electric (GE), one of only two U.S. turbine makers, operates a factory in China and in January the company announced a joint venture with China’s A-Power Energy Generation to make turbine gearboxes.
As the financial crisis slows growth in the U.S. and Europe, India is another potential wind power. It ended 2008 with 9,645 megawatts of wind energy and added more capacity that year - 1,800 megawatts - than former world leaders Germany and Spain.
Installed global wind capacity now stands at 120.8 gigawatts with the 2008 turbine market worth $47.5 billion, according to the Global Wind Energy Council.
The Electricity Market - Our Perspective
The overall direction of the commodities markets has changed very little over the last few months, with prices continuing to fall for most terms driven by weak demand, a weak economy and uncertainty regarding the potential for a turnaround in the short-term.
Natural gas prices started off in January at $5.971 for the prompt month and they are now at $3.54. This continued decline has resulted in the lowest prompt settle since September 2002. The weak economy continues to suppress demand, while domestic supply output continues to be robust.
Electricity prices in Zone J in New York continue to follow natural gas prices and have reached the lowest levels since 2005. Prices for the balance of 2009 and Calendar 2010 are at the market low over the past four years, with the balance of 2009 in Zone J currently sitting at $54.14 around the clock (ATC).
So-Where We’re Going? The summer power prices have dropped tremendously over the last three months, with July and August 2009 currently trading under $80 for On-Peak. To put this into perspective, the last time Day-Ahead prices in the July-August timeframe in Zone J were under $80 was back in 2004. However, Calendar 2010 and beyond carry the most upside risk when it comes to forward prices due to potential economic recovery, declining rig counts and possible production cuts. While there could be further decline in the prices for 2009 and 2010, the upside risk is far greater than the downside potential.
The economy remains the primary market driver causing prices for 2009 to be the lowest in more than five years and making a near-term rally very unlikely without a major market surprise. Based on one’s appetite for risk, there is strong justification for executing buys at current levels and buyers should consider all terms contingent upon their ability and willingness to buy long-term.
The future of the economy also remains one of the biggest questions in terms of whether or not the market has hit the bottom or if there is more downside potential. In addition, factors such as reduced drilling activity and demand increases, along with weather, geopolitical events, natural disasters and market surprises could incite a rally in prices.
The MPG Debate - GHG Emissions
What reduces emissions more?
A. Someone swapping their old SUV (which gets 12 miles per gallon) for a hybrid version (18 mpg) or;
B. someone upgrading their 25 mpg compact to a new 46 mpg Prius?
The surprising answer (for those who don’t work it out) is A. It’s easy enough to see why this is the case. If the driving distance is 100 miles, then for case A the saving in fuel used (and hence emissions) is 100/12-100/18 = 2.8 gallons, while for B, you have 100/25-100/46 = 1.8 gallons. The confusion arises because people like to think linearly about numbers, not inversely, and so they tend to assume that a similar change in mpg has a similar impact on fuel usage. This is not the case however - improvements in efficiency at the low end of the scale are much more useful at reducing emissions. This is actually a very general point - when trying to raise efficiency it is always sensible to start with the least efficient processes.
There was a recent article published in Science magazine that tested peoples instinctive reactions to changes in mpg numbers and found that people very often got it wrong, leading to less than optimal decisions. They also tested a different way of giving fuel usage information (the number of gallons used per mile), and since this is linear in emissions, people made the correct judgment much more often (it’s worth noting that the standard in most of Europe is already litres per 100 km). Rewritten in those terms, the choices above become:
A. Someone swapping their old SUV (which takes 8.3 gallons to go 100 miles) for a hybrid version (5.6 gallons/100 miles) or;
B. someone upgrading their 4 gallons/100 miles compact to a new 2.2 gallons/100 mile Prius?
Much easier, right? The authors of the Science piece are trying hard to get US manufacturers and the EPA to switch over from mpg to this new standard. It all seems eminently sensible to us.
NuEnergen’s Director of Client Services, John Carmichael, Recognized for his Contributions to the Tailhook Association
John Carmichael, NuEnergen’s Director of Client Services, recently learned of his nomination for Honorary Tailhooker of the Year.
The Tailhook Association represents the current and historical interests of Tactical Naval Aviation. As the name implies, members are mostly comprised of Naval Aviators who have served aboard aircraft carriers. The Tailhook Association is an independent, fraternal, nonprofit organization internationally recognized as the premier supporter of the aircraft carrier and other sea-based aviation.
The purposes of the Association are: to foster, encourage, develop, study, and support the aircraft carrier, sea-based aircraft, both fixed and rotary wing, and aircrews of the United States of America; and to educate and inform the public in the appropriate role of the aircraft carrier and carrier aviation in the nation’s defense system.
Two years ago, John approached the Executive Director of the Tailhook Association, Capt. JR Davis about leveraging a new form of communication via the internet, creating a blog to share news, information, stories and other relevant information in a flexible, far reaching format. After the presentation, JR was sold on the idea and quickly issued the order… “Make it Happen!”
John then proceeded to design, build, and implement the “Tailhook Daily Briefing” the association’s blog. Not only did John create the Daily Briefing, he has continued to serve as editor, writer and photographer for the blog. John’s knowledge of the internet and Naval Aviation communities has allowed him to recruit other writers for the Daily Briefing providing first hand articles by those who are on the tip of the spear, both today and in our historic past.
In the two years since creating the Daily Briefing, the blog has received more hits and has been read by more people than the original Tailhook website has in the past 4 years; successfully exposing tens of thousands of new readers per year to the rich heritage of Naval Aviation.
In his tenure at The Daily Briefing, John has written over 300 articles ranging from the Care and Outreach of a Squadron (VFC-13 the “Saints”) to a fourteen year old in Grand Junction Colorado with testicular cancer, to the recent commissioning of the aircraft carrier USS George H.W. Bush (CVN-77). These articles along with numerous others have received national attention being linked to by countless mainstream news and information sites.
For his efforts, John learned recently that he has been nominated for Honorary Tailhooker of the Year. He will learn if he has indeed been selected for this prestigious honor at this year’s National Convention held in Reno in September.
John’s affiliation with Naval Aviation began with is birth. His father, RADM E.I. “Hoagy” Carmichael (USN Ret) is a 33 year career Naval Aviator, with a history in the Navy that includes commanding an A-6 Intruder Squadron (VA-115) during the Vietnam War, and later commanding an entire Airwing (CVW-15) followed by his assignment as Commanding Officer of the USS Midway (CV-41) home ported in Yokosuka Japan. Eventually Admiral Carmichael commanded the 11th and 12th Naval Districts (California, Arizona, Nevada) and then in the mid 80’s served as Commander Fleet Air Western Pacific, and Commander Naval Forces Japan, retiring in 1988 to his current home in Jacksonville FL where he lives with his wife Jo.
This life gave John a front row seat to the history of Naval Aviation for over 20 years. Originally John’s plans were to follow in his father’s footsteps by joining the Navy after college and attending Air Officer Candidate School in Pensacola Florida. But even after successfully completing a rigorous battery of academic and physical qualification tests, and receiving a date of entry, John could not avoid the budget cuts of the 1990 “Peace Dividend.” John’s opportunity to live his life long goal of becoming a Naval Aviator was not to be.
This set back did not diminish John’s passion for Naval Aviation, he has remained well connected with many who are currently serving this nation’s defense as aviators and welcomes any opportunity to listen to a tale or two woven by veterans of Naval Air’s historic past, knowing he can now benefit all who are interested with a new tale for the pages of The Daily Briefing.
We at NuEnergen wish John luck in his selection for Tailhooker of the Year and applaud his support for our nation’s armed forces especially the US Navy. We are proud to have John as a member of our team.
Posted in Current Affairs Leave a comment
NuEnergen Speaks at Westchester County Association
NuEnergen CEO Kevin Hamilton was asked to address a large group assembled by the Westchester County Association regarding the topic of “Lower Energy Costs” this past Tuesday at The Graduate Center at Pace University.
From the Jan 13, 2009 Press Release: Taking a leadership role in addressing the economic crisis, The Westchester County Association (WCA) - the area’s premier business membership and advocacy group - today proposed an economic stimulus initiative for Westchester by Westchester.
The unprecedented private sector initiative will focus on three key areas to help provide economic stability and growth for businesses and residents in the county.
The recommendations are the result of the WCA’s December 12 “Economic Summit” that was attended by more than 40 top business leaders from across Westchester that focused on the concerns facing business and possible solutions.
Included in the WCA proposal;
Lower Energy Costs - Create an energy purchasing program to provide lower energy costs for specific sectors that are critical to the county’s economic vitality such as hospitals, colleges, commercial office buildings and other business sectors.
William M. Mooney Jr., WCA President, said; “A clear outcome of our Economic Summit was the need to provide leadership in addressing the economic crisis faced by Westchester. Although we cannot solve the massive economic problem, we can find creative ways to address specific segments of the Westchester economy. While many details of the program remain to be worked out, we are confident that the economic stimulus initiative for Westchester by Westchester is practical and will complement and work in tandem with the anticipated federal economic stimulus program. I am confident that the Westchester business community will come together to meet this challenge as they have so often in the past”.
NuEnergen will continue to offer their support to the WCA and its members in addressing energy costs.
Posted in Legislation, Press Release Leave a comment
