February 9, 2009
Emitting Defeat: EPA to Drop Bush’s Controversial Mercury Emissions Policies and Begin New Rulemaking Process | gristmill.grist.org
The D.C. Circuit Court of Appeals ruled on February 8, 2009 in favor of the plaintiffs that coal plants could not be removed from the list of mercury sources subject to a Maximum Available Control Technology (MACT) standard. The Bush Administration filed an appeal of this. The Obama Administration dropped this appeal. This sets up the potential for Congress/EPA to establish a Maximum Achievable Control Technology (MACT) standard for mercury removal from coal-fired plants.
Coal Supply Response to Decreased Demand
February 9, 2009
Steelmakers’ Woes Hit Coal Miner Massey’s Profits | uk.reuters.com
Thermal coal consumption is down as a result of lower electricity usage, less industrial demand, fuel switching to natural gas as a result of low natural gas prices and high emissions costs on coal-fired generation, high inventories at many coal plants, and falling exports. Metallurgical coal demand is down due to steel demand being off.
Class I Railroads' Coal Volumes to Be Down in 2009
February 9, 2009
Transportation and Logistics Rates Will Largely Depend on Capacity, Fuel, and the Overall Economy | www.logisticsmgmt.com
Coal demand will be down in 2009 due to the economy, high inventories at coal plants, competitive switching to less expensive natural gas for electricity generation, high emissions prices for coal plants, less met coal needed for steel, and less exports. This will affect the railroads since approximately 70% of the U.S.’s coal moves by rail at some point in the transportation chain.
CO2 Emissions Cap and Trade Program’s Mechanics and Cost to Electricity
February 9, 2009
How Carbon Caps Will Affect Utilities Sector | seekingalpha.com
The proposals in Congress and the Obama Administration for a reduction in carbon dioxide (CO2) emissions include what is called a “Cap and Trade” program. Under a Cap and Trade program, the amount of annual CO2 emissions would be capped and an entity would have to have a CO2 allowance for each ton (or metric ton depending on the final wording of the law) emitted during the year
Paying Banker Bonuses: Good Business?
February 3, 2009
'Idiots' Indeed | online.wsj.com
In the Wall Street Journal opinion, paying off the $18 billion in bonus pool is just good sense. The only real problem was that some bankers exercised poor timing. “John Thain's year-end bonuses to Merrill Lynch executives, whatever their rationale, reflected an acute case of political tin ear.” The Journal also feels that the compensation is mislabel: it is not bonuses at all, but rather like tips, constituting the majority of the employees compensations and it has the bonus pool in way has fallen to the insignificant level of about $112,000 person, and paying them will help the NYC. The Opinion Page opposes any limits on employee compensation for fear of harm to the business motivation.
US Great Lakes Wind Energy Market Begins to Take Shape
January 16, 2009
PSC: Great Lakes wind energy likely part of Wisconsin future | www.fdlreporter.com
Even though US wind power potential has only begun to be scratched on land, serious attention is being given to offshore developments. Plans and actions presently focus on the Atlantic offshore region. Now the Great Lakes will get greater scrutiny with the release of a state regulatory agency-sponsored study for large-scale wind power development off Wisconsin's shores in Lakes Michigan and Superior.
Dynegy Ending Joint Venture with LS Power on Coal Plants – MWs and Tons of Coal at Risk
January 15, 2009
Dynegy Ends Coal-Plant Venture with LS Power | www.planetark.org
Dynegy recently announced it was ending its joint venture with LS Power on coal-fired power plants. The commentary below discusses the plants, the MWs, and tons of coal now at risk of not proceeding without Dynegy’s participation.
Potential Coal Transportation Tonnage for the DM&E if It Builds into the Powder River Basin
January 15, 2009
Commission Takes Testimony on DM&E Project | www.ktiv.com
The Dakota Minnesota & Eastern (DM&E) Railroad was recently acquired by the Canadian Pacific (CP) Railway. The DM&E has for years been proposing an extension to the Wyoming Powder River Basin (PRB) coal reserves. If the DM&E would commence this project, it would upgrade an existing 600 miles of track and provide for 260 miles of new track expansion into the coal fields of the PRB. When the DM&E was a stand-alone Class II Railroad, it applied to the Federal Railroad Administration for Government-backed loan guarantees for this potential project. The submissions and comments related to this FRA filing portend the potential affects on the DM&E, Union Pacific (UP), and BNSF for coal tonnage from the PRB.
White Energy and Upgraded Coal – Items to Consider
January 15, 2009
White Energy to Build Coal Plant in Wyoming | www.forbes.com
White Energy intends to build a processing plant to take raw sub-bituminous coal from the Buckskin Mine in the Wyoming Powder River Basin and improve its heat content (by roughly 35%) and preserve, and possibly improve, its emissions profile. There are a few things to consider on White Energy’s venture.
January 14, 2009
In Reversal, Court Allows a Bush Plan on Pollution | www.nytimes.com
CAIR require deeper cuts in NOx emissions starting in 2009 and SO2 emissions starting in 2010 in the Eastern US. This is through a cap and trade program with the usage of limited emissions allowances for both NOx and SO2 emissions. CAIR was originally thrown out by the Courts on July 11, 2008 and reinstated on December 23, 2008. CAIR requires annual NOx allowances starting in 2009 for the affected Eastern states plants. Previously, certain Eastern states only had seasonal NOx allowance requirements. Now most of these Eastern states plants will be required to have annual NOx allowances for 12 months of the year and seasonal NOx allowances for 5 months of the year (May 1 to September 30). CAIR also requires starting in 2010 affected Eastern states plants to surrender 2 SO2 allowances for each ton of SO2 emissions. This surrender rate changes to 2.86 starting in 2015. Pre-2010 banked SO2 allowances retain their surrender rate for 2010 and beyond compliance.
Shale gas abundance provides new options for energy companies
February 13, 2012
Chesapeake Energy bites the natural gas bullet
January 25, 2012
Flurry of newbuild drilling rig deliveries in 2012 may dampen rig rates
January 20, 2012
Talisman joins the ranks of cautious E&P companies
January 12, 2012
Early signs of caution begin to cloud frontier exploration and production
January 4, 2012