Tag: oils

Behind Big Oil’s Green Motivations

  • The Maryland Science Center is running a pilot project, renting out a handful of bright green battery powered cars to Baltimore residents and tourists. The cars use a battery that employs a special polymer film developed by Exxon Chemical. (Photo courtesy of the Maryland Science Center)

Some well known oil companies
are very publicly getting behind
alternative energy initiatives.
But are these serious efforts
or just a case of green-washing?
Tamara Keith tries
to get some answers:

Transcript

Some well known oil companies
are very publicly getting behind
alternative energy initiatives.
But are these serious efforts
or just a case of green-washing?
Tamara Keith tries
to get some answers:

The first thing oil giants like Exxon Mobil, BP and Chevron would
like us to know is that they’re not oil companies. They are energy
companies. So, they say, investing in biofuels, solar panels and
geothermal power really isn’t out of character… even if those things
only make up a fraction of their total business.

And I guess that’s how you end up with an electric car that says
“powered by Exxon Mobil” on its bumper.

Reiner: “So, you want to go take a look?”

Keith: “Yeah, sure.”

Vann Reiner is the CEO of the Maryland Science Center.
The center is running a pilot project, renting out a handful of
bright green battery powered cars to Baltimore residents and tourists.

Reiner: “Here’s the gas cap.”

Keith: “It’s an outlet.”
Reiner: “It’s an outlet, that’s right. And you see it’s 110 volt
15 amp – so household current.”

The cars use a battery that employs a special polymer film developed
by Exxon Chemical.

“So, you turn the key the way you normally would.”

(sound of car)

Exxon Mobil said it couldn’t make anyone available to be
interviewed for this story.

Reiner: “Nice job on acceleration.”

Keith: “Thank you.”

So I asked the science center’s Reiner what I wanted to ask
the folks at Exxon Mobil. Why in the world is an oil company
promoting an electric car? Isn’t that like working to put themselves
out of business?

“I see it as a technology company who has made a lot of money
in oil, no getting around that. But what else can you do? And
this is a way to insure their future, in my opinion. But I’m just
delighted that they chose us.”

Exxon Mobil also recently announced a 600-million dollar investment
in algae as a future biofuel – and the company is making sure we all
know about it with with newspaper and television ads.

“And they absorb CO2. So they help solve the greenhouse problem as well.
We’re making a big commitment to finding out just how much algae can help
to meet the fuel demands of the world.”

Still, Exxon Mobil is planning for oil, gas and coal to continue dominating
the world’s energy supply for at least the next 30 years.

Alex Yelland is with Chevron, and he says that’s what his company is projecting, too.

“Renewables is currently around 10 percent of the energy mix, and, in the
coming decades, that’s not expected to change a huge amount but from its
current state it’s relative state, it will grow significantly.”

Over the next 2 years, Yelland says Chevron plans to spend 2-point-7
billion dollars on renewable energy and energy efficiency. But Yelland
insists that kind of investment in energy sources other than oil isn’t
counterintuitive.

“For us, it’s about building a sound business for the future and
understanding where global demand is going and how we can meet that.”

“I think it definitely is smart PR.”

Edward Wu is with Cora Capital Advisors in New York. His firm specializes
in alternative energy investing. He says these companies are worth hundreds
of billions of dollars and, by comparison, their green investments are fairly small.

“They’re not going to replace oil, but I think they’re hoping that
they’ll be somewhat economically viable and at the same time definitely
serve a PR purpose right now.”

But Wu says the sprinkling of investments isn’t just about having something
to talk about in their ads.

“They want to have some biofuels in the mix. They want to have some battery
companies in the mix. They’re essentially dipping their toe in the water to
essentially hedge their bets.”

Because no one will want to be an oil company if, or perhaps we should say when,
oil stops dominating the energy landscape.

For The Environment Report, I’m Tamara Keith.

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The Attractiveness of Ethanol

  • The government will soon decide whether to allow increasing the mix from the current 10% blend to as high as a 15% blend. (Photo courtesy of the National Renewable Energy Laboratory)

Cheap oil makes switching to alternative
fuels such as ethanol less attractive.
Lester Graham reports that could affect
an upcoming decision about using more
ethanol:

Transcript

Cheap oil makes switching to alternative
fuels such as ethanol less attractive.
Lester Graham reports that could affect
an upcoming decision about using more
ethanol:

Crude oil prices spiked a little because of Iran’s long-range missile testing and revelations of a secret nuclear facility.

But analysts think for the next several months we’ll actually see oil prices go down – maybe to around $30 a barrel, less than half of what it is now.

And that could hurt demand for fuels such as ethanol.

But the government has mandated the nation produce more ethanol.

Dan Flynn is an analyst with the trading firm, Alaron.

“Obviously the government definitely wants to push this through. However, the price of crude oil and gasoline, if that goes down, generally people look not to look for alternative sources of energy.”

One way to use more ethanol is to mix higher amounts with gasoline.

The government will soon decide whether to allow increasing the mix from the current 10% blend to as high as a 15% blend.

For The Environment Report, I’m Lester Graham.

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Sampling a New Crop: Sugar Corn

  • Todd Krone researches corn for Targeted Growth, a bio-energy company. Targeted Growth is tweaking corn genetics to produce 'Sugarcorn,' a variety with high amounts of sugar and biomass. The hope is the plants can be converted into ethanol cheaply. (Photo by Shawn Allee)

The federal government wants more
and more ethanol in our fuel supplies,
but it worries about how its made.
Most American ethanol is made from
corn kernels. That’s inefficient
and it makes the ethanol and food
industries compete for corn. The
government’s mandating we start making
ethanol out of things other than corn
kernels. Shawn Allee looks
at one effort to meet that mandate:

Transcript

The federal government wants more
and more ethanol in our fuel supplies,
but it worries about how its made.
Most American ethanol is made from
corn kernels. That’s inefficient
and it makes the ethanol and food
industries compete for corn. The
government’s mandating we start making
ethanol out of things other than corn
kernels. Shawn Allee looks
at one effort to meet that mandate:

I’m just outside an ethanol plant in central Indiana and its pretty much like most ethanol
plants. There’re a lot of semi-trucks going by and they’re loaded with yellow corn kernels.


Most ethanol plants grind corn kernels for starch, they let that starch turn into sugar, then
they brew the sugary juice into ethanol. Now, this whole process would be easier and
cheaper if we could make ethanol directly from sugary plants instead of starchy grain
kernels like corn.


Pretty quick here, I’m gonna meet a guy who’s trying to make corn a plant that’s easy to
grow in the Midwest but produces sweet juice – not starchy corn kernels.

“If you walk over here, these are our sugar corn hybrids.”

I’m with Todd Krone. He’s a researcher with a company called Targeted Growth. He walks me
through a test plot of a plant nicknamed ‘Sugarcorn.’ He pulls off a ear of corn and pulls back the
leaves.

(sound of leaves being pulled back)

The ear is almost bare.

Allee: “There’re just a few stray kernels developing, very few.”

Krone: “Yep. A few got through.”

Krone says this plant avoids making corn kernels. Instead, it puts energy and sugar into the
stalk. He can prove it with a taste test – right here in field.

He snips a piece of stalk.

(sound of snipping)

And pulls out a little press.

Krone: “You squeeze some of the juice to see how much sugar’s there. It’s up to you, if
you like, you could put on on your finger and taste. Is there sweetness?”

Allee: “Yeah, it’s definitely sweet. It’s definitely got a sweet tinge to it.”

Krone: “It might be a bit sweeter than pop might be.”

Krone says tests show Sugarcorn juice is as sweet as juice from sugar cane. He says this means
America could have a new plant that boosts ethanol production – but doesn’t compete with food,
and uses equipment farmers already have.

Krone: “For the farmer, not much changes until harvest when some logistics still need to
be worked out.”

Allee: “Obviously if you’re selling a lot of this corn, you’d be making a good deal of profit,
hopefully, what’s in it for the rest of us in terms of the success or failure of this, for drivers
and everybody else?”

Krone: “I would say, hopefully, it results in cheaper ethanol that can compete with cheap
oil. And then meeting that mandate to get more and more ethanol produced.”

Well, that’s the idea, but Targeted Growth would have to change more than just corn plants to
succeed. They’de have to change how at least some ethanol companies do business. And some
ethanol companies have some tough questions about it.

“How could you handle sugarcorn? How would you store it?”

This is Jeff Harts. He works at Central Indiana Ethanol. Harts says he likes the idea of using
sweet corn juice to make ethanol – it could be efficient. But he worries about getting enough to
run an expensive operation like his. He has no problem finding corn kernels.

“It’s a consistent flow of corn and we need that consistent flow to keep going. That’s why
we have storage, the farmers have storage. That’s why we have a local grain elevator
network to ship corn to us to keep that flow steady 12 months out of the year.”

Harts’ company might be a bit reluctant to change right away, but ethanol producers will have
find alternatives to the corn kernel. The government is capping how much ethanol can come
from corn starch.

As those requirements phase in, alternatives like Sugarcorn might look sweeter than they do
now.

For The Environment Report, I’m Shawn Allee.

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Turbulent Fuel Prices Hit Airlines Hard

  • Airlines say that there needs to be more regulation on oil speculators. (Photo courtesy of NASA)

Recent swings in the price of
crude oil are leading to more
trouble for the US airline
industry. Rebecca Williams
reports:

Transcript

Recent swings in the price of
crude oil are leading to more
trouble for the US airline
industry. Rebecca Williams
reports:

Even though oil futures are trading for half of what they were last summer, the airlines are not happy.

David Castelveter is with the Air Transport Association. He says wild price swings for oil make it tough for the industry to plan ahead.

“They hedge their fuel purchases when the price is high at a lower rate and if the price of fuel goes low then they’re hedged in at higher rates and it costs them money.”

Airlines would like to raise ticket prices, but, with the recession, they’re worried no one will buy them.

So instead, they’re trying to cut back on how much fuel they use. Airlines are retrofitting planes with winglets that cut fuel consumption.

But that takes money and time. So in the meantime, they’re also cutting jobs and routes.

The industry’s putting pressure on Congress to force more transparency in the oil futures trading market.

They’re hoping more regulation on oil speculators would mean fewer price swings.

For The Environment Report, I’m Rebecca Williams.

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Interview: A Former CIA Director Talks Oil

  • James Woolsey was the Director of the CIA from 1993 to 1995 (Photo courtesy of James Woolsey)

The current recession has caused the price of oil to drop – most think temporarily. James Woolsey was the Director of the Central Intelligence Agency – the CIA – during the Clinton Administration. The Environment Report’s Lester Graham recently talked with him. Woolsey has been arguing that, no matter what the price, dependence on oil is a national security problem that we need to solve:

Transcript

The current recession has caused the price of oil to drop – most think temporarily. James Woolsey was the Director of the Central Intelligence Agency, the CIA, during the Clinton Administration. The Environment Report’s Lester Graham recently talked with him. Woolsey has been arguing that no matter what the price, dependence on oil is a national security problem that we need to solve:

James Woolsey: Well, I think moving away from oil dependence, period, is extremely important for our security, and it’s important because of climate change. We are funding both sides of the War on Terror. Oil, when it comes into a hierocracy or into a dictatorship, tends to enhance the power of the state. Tom Friedman summed that up very well in his chapter of his new book ‘Hot, Flat, and Crowded,’ the chapter is called ‘Fill’er Up With Dictators,’ and it’s a pretty accurate statement. We’ve also run the risk of oil cutoffs, of terrorist attacks in the Middle East, oil is just a very big national security problem for us, and it has a 97% monopoly on transportation. So, we’ve got to break that monopoly.

Lester Graham: It seems the only time you can get the general public’s attention on this issue is during periods of gas price spikes. What do you think it will take to get a sustained effort at the personal level to become more energy independent?

Woolsey: Most major automobile companies are coming out with plug-in hybrids here before long. Plug-in hybrids let you drive all electric for 30 or 40 or 50 miles before you then become just a regular hybrid using some liquid fuel. Three-quarters of the days, the average American car goes less than 40 miles. You’re driving on the functional equivalent of 50 to 75 cents a gallon when you’re driving on electricity. And that, I think, is going to get people’s attention and provide a real economic incentive to move toward plug-in hybrids – if the up-front cost of the battery is taken care of, by a tax credit, or by leasing the battery instead of buying it, or by some other financial arrangement. So people can then see they can drive on a lot less than the cost of driving on gasoline, whether it’s driving on $3 a gallon or $4 a gallon.


Graham: Now, you’ve stated your concern on climate change, global warming on several occasions, you consider yourself fairly conservative politically, I’m wondering what you make of the controversy and the debate that you recently heard in the House and what we’re likely to hear in the Senate.

Woolsey: Well, I’m kind of liberal on domestic things, and kind of conservative on defense and foreign policy things – which, to me, is a perfectly reasonable balance, but some people don’t see it that way. I think part, and possibly a very important part, of warming and climate change is likely to be being produced, most climatologists would say, by the fact that we’re pumping so much carbon dioxide into the atmosphere and trapping heat, that creates a problem. We still need to get the job done of stopping, as much as we can, something that could make the world a very, very unpleasant place – in terms of the height of sea levels and other things – for our grandchildren and great-grandchildren.

Graham: I read an article in The Futurist Magazine from the World Future Society which explained you’re doing a lot in your personal life to become more energy independent – what’s worked for you?

Woolsey: Well, we have photovoltaic cells on the roof of our farmhouse, and lead-acid gel batteries in the basement, and a plug-in hybrid. It’s a little expensive, but you can do a lot these days to make it possible to operate your home, at least the key functions of it, even if the electric grid goes down because of an accident or some kind of hacking attack or something. And you can be, at least, partially independent. It’s not ideal, it’s not perfect, it’s going to get better, it’s going to get cheaper, but you can get started now, if you want to.

Graham: James Woolsey is a former CIA Director, and is now a partner at Vantage Point, a venture capital firm. Thanks for your time.

Woolsey: Thank you.

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Speculators Cause Spike in Oil Prices

The price of a barrel of oil has jumped
up from $45 to nearly $70 in just
three months. And gas prices have been
creeping up too. Rebecca Williams reports
these prices are out of sync with the usual
rules of supply and demand:

Transcript

The price of a barrel of oil has jumped
up from $45 to nearly $70 in just
three months. And gas prices have been
creeping up too. Rebecca Williams reports
these prices are out of sync with the usual
rules of supply and demand:

Right now there’s a huge glut of supply of oil – and at the same time, weak global demand for it.

Ruchir Kadakia is a global oil market expert. He’s with Cambridge Energy Research Associates.

He says speculators are driving oil prices up.

“People believe that with positive economic growth in the future there will be greater demand for oil. So they start to buy up oil in anticipation of that demand recovery.”

So these speculators are making money while most of the economy is in a slump.

But Kadakia thinks the realities of supply and demand will eventually catch up and drag oil prices back down.

“The pain we’re feeling at the pump today is probably going to be the worst we feel all this summer.”

He thinks gas prices might actually get back below two dollars a gallon.

For The Environment Report, I’m Rebecca Williams.

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Big Ships Dump Oil Into the Ocean

  • Ships dump 88 million gallons of oil into the ocean illegally each year - that's eight times the amount of the Exxon Valdez oil spill (Photo source: Vmenkov at Wikimedia Commons)

Each year, ships intentionally dump millions of gallons of oil into the oceans. Rebecca Williams reports everything from cruise ships to cargo ships to oil tankers have been caught:

Transcript

Each year, ships intentionally dump millions of gallons of oil into the oceans. Rebecca Williams reports everything from cruise ships to cargo ships to oil tankers have been caught:

Ships have all kinds of mechanical parts that use oil.

The ships are supposed to collect the waste oil and separate it out, but it turns out a lot of ships just dump it overboard.

Stacey Mitchell is chief of the environmental crimes section at the Department of Justice. She says some estimates are all this oil adds up to about 88 million gallons a year.

That’s eight times the amount of oil spilled by the Exxon Valdez. And those are just the ships they catch.

“As we do more and more of these enforcements the crews on board these vessels who are trying to defeat our purposes are getting craftier and are coming up with new ways to commit this crime and new ways to conceal it.”

Mitchell says it takes time and costs money to separate the oil the way you’re supposed to, and so they might think the chance of getting caught might be worth the risk. Though if you are caught, the fines can be in the millions of dollars.

For The Environment Report, I’m Rebecca Williams.

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T. Boone Pickens Weighs in on Energy

  • Michigan Gonvenor Jennifer Granholm and T. Boone Pickens, founder and chairman, BP Capital Management, shaire their alternative energy solutions at the Detroit Regional Chamber 2009 Mackinac Policy Conference (Photo courtesy of the Mackinac Policy Conference)

A Texas oil tycoon is trying to get America off of foreign oil. T. Boone Pickens has spent the last year and nearly 60-million dollars promoting his plan to use only US sources of energy. Rebecca Williams reports:

Transcript

A Texas oil tycoon is trying to get America off of foreign oil. T. Boone Pickens has spent the last year and nearly 60-million dollars promoting his plan to use only US sources of energy. Rebecca Williams reports:

T. Boone Pickens says he’s all for domestic oil drilling, solar, nuclear, coal – especially wind and natural gas. But anything, as long as it comes from the USA.

“I’m for anything that’s American. Anything that’s American. (applause) But we have to get off oil from the enemy.”

And he said he used to be an outspoken critic of ethanol. But not anymore.

“It is American. Is it a good fuel? It’s an ugly baby is what it is. But it’s our ugly baby.” (laughter)

He says Members of Congress tell him, whether it’s a good fuel or not, farm states want it.

He readily admits his plan would help him make some money. But he says he also wants the U.S. to get away from foreign imports for the sake of national security and the health of the economy.

For The Environment Report, I’m Rebecca Williams.

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City Turns Mucky Grease Into Fuel

  • San Francisco expects to process 10,000 gallons of the grease every day (Photo by Rainer Zenz, source: Wikimedia Commons)

One city’s new program is taking the mucky sink-clogging grease from restaurants and converting it into fuel for its fleet of vehicles. As David Gorn reports, it’s the first effort of its kind in the nation:

Transcript

One city’s new program is taking the mucky sink-clogging grease from restaurants and converting it into fuel for its fleet of vehicles. As David Gorn reports, it’s the first effort of its kind in the nation:

It’s 6 in the morning, and a San Francisco sewage treatment plant is already in full gear.

(sound of a truck motor)

Workers are unloading a tankful of used cooking oil from local restaurants.

(sound of a man shouting)

But soon they’ll also be picking up something a little nastier from restaurants.

“Brown grease is culled out, pumped out by grease haulers and taken out of the city, often to landfills.”

That’s Karri Ving, biofuels coordinator for the San Francisco Public Utilities Commission. She says, instead of carting that grease off to a garbage dump, it will now be converted into biofuel.

“That material, that food material, is what we’re going to condense into a putty that gets converted into road-worthy biodiesel.”

Ving says San Francisco expects to process about 10,000 gallons of the
stuff every day.

For The Environment Report, I’m David Gorn.

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The Legacy of the Exxon Valdez

  • A NOAA scientist surveying an oiled beach to assess the depth of oil penetration soon after the spill (Photo courtesy of NOAA)

Twenty years ago this week, an oil tanker ran aground on a rocky reef in Alaska’s Prince William Sound. The Exxon Valdez spilled more than 11 million gallons of crude oil. It’s considered to be perhaps the biggest ecological disaster in US history. Ann Dornfeld has this look at how oil spill prevention and preparedness have changed in the two decades since Valdez:

Transcript

Twenty years ago this week, an oil tanker ran aground on a rocky reef in Alaska’s Prince William Sound. The Exxon Valdez spilled more than 11 million gallons of crude oil. It’s considered to be perhaps the biggest ecological disaster in US history. Ann Dornfeld has this look at how oil spill prevention and preparedness have changed in the two decades since Valdez:

The call came in just after midnight.

“Ah, evidently leaking some oil and we’re gonna be here for a while.”

Court records indicate Captain Joseph Hazelwood was likely drunk when the Exxon Valdez ran aground.

There was hardly any clean-up equipment on hand. No plan for action. The location was remote.

Oil polluted a stretch of Alaskan coastline the length of the entire west coast of the U.S. The oil killed fish, sea otters, harbor seals and an estimated quarter of a million birds. Today, there is still oil on some beaches.

Twenty years later, a cargo vessel has just reported a spill of 160
gallons of oil in Washington state’s Commencement Bay. Investigators
have filled the “Spill Situation Room” in the state Department of Ecology.

“Who’s responsible for actually maintaining
the bow thruster, when was the last time they performed maintenance on it?”

“You mean one of the staff on board?”

“Yeah.”

Spill Response Manager David Byers says coastal states learned a lesson from Exxon Valdez, and developed rapid response systems like this.

“We’ve got crews headed up in a helicopter to do on-
water observations, we’ve got response resources on the water headed out to do containment when we find the location of the oil.”

Byers says the state handles dozens of spills this size each year, making it somewhat of a well-oiled machine.

After the Exxon Valdez, the state of Washington put in place some tough prevention standards. But the U.S. Supreme Court ruled against the state.

The court ruled the state was making safety demands of oil companies that only the federal government could make.

Mike Cooper is Chairman of the state’s Oil Spills Advisory Council. He says that ruling is one reason why small oil spills are common in Washington’s bays. He says other states have come up against the same restrictions.

“When the Massachusetts legislature passed strict laws,
the United States Coast Guard and the industry did the same thing that they did to the people of Washington state. They sued the people of the state of Massachusetts and said, ‘We’ll decide if industry has to pay.'”

The federal Oil Pollution Act did raise industry’s liability and the amount of federal money available in the event of a spill. It also requires oil tankers and barges in U.S. waters to be double-hulled by 2015. The Exxon Valdez’ single hull was easily gouged open when it ran aground.

Today, most U.S.-flagged tankers and barges are double-hulled. Most foreign tankers aren’t yet.

But there’s no law requiring a second hull on cargo ships. Bruce Wishart is Policy Director for People for Puget Sound. He says it’s cargo vessels that are most likely to spill oil.

“It’s commonly assumed that oil tankers pose the
single greatest threat in terms of an oil spill. There are actually many, many more cargo vessels plying our waters that pose a very significant risk simply because they carry a lot of fuel on board.”

In 2007, the cargo vessel Cosco Busan spilled 53,000 gallons of oil into San Francisco Bay. Thousands of birds died, including endangered species. A fully-loaded cargo ship can contain 40 times more oil than what leaked from the Cosco Busan.

So, while oil tankers have become safer in the two decades since the Exxon Valdez, the nation’s waterways still remain at risk of a major spill.

For The Environment Report, I’m Ann Dornfeld.

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