U.S. supports increased oil and gas production
The Obama Administration's support for increased domestic oil and gas production does not conflict with its goals of addressing climate change and lowering greenhouse gases, according to U.S. Energy Secretary Dr. Ernest Moniz.
“We remain committed, even as we produce much more oil, to lessening our oil dependence, using less oil domestically and having fewer emissions,” Moniz said.
The Secretary made his remarks before an audience of more than a hundred energy executives, government officials and other industry representatives in a keynote address at the 2013 Platts Global Energy Outlook Forum Thursday in New York City, which annually convenes industry experts to detail and debate the challenges, opportunities and special issues facing the world's energy companies and policymakers.
The U.S. remains a major importer of crude oil, Moniz said, and the Obama Administration is taking aim at reducing those imports through efficiency measures and investments in alternative fuels and vehicle electrification.
Titled “Bridging the U.S. Boom: Global Markets Prepare," this year's forum focused on the continuing ripple effects of the U.S. shale revolution, which Moniz said once again cast the nation as an "energy powerhouse.”
Read more about the oil and gas industry:
“What we are seeing now is that some new technologies – without government subsidies – are getting mature enough to make it into the mainstream,” said Wal van Lierop, president and CEO, Chrysalix Energy Venture Capital. “We will continue to see more of this in years to come.”
With the U.S. awash in domestically produced oil, it may be time for the U.S. to review its ban on exports of crude, but the Department of Energy has no immediate plans to change the composition of or to sell off any part of the Strategic Petroleum Reserve, said Moniz, at a post-forum media briefing.
The U.S. has experienced a boom in crude production in places like North Dakota, and pipelines that once took crude from the Gulf of Mexico up to the Midcontinent have now been reversed to bring Bakken crude oil south, leading to questions about whether the Strategic Petroleum Reserve can effectively and efficiently deliver oil to where it's needed most in a crisis.
Earlier, in the Forum's first panel, Leonhard Birnbaum, chief commercial officer of Germany-based E.ON, said he does not see shale gas being a game-changer in Europe the way it has been in the U.S.
Birnbaum said Europe lacks the regulatory environment and infrastructure to significantly tap into its shale gas resources. In addition, he said, Europe does not have the robust oil services industry and pipeline systems that the U.S. has. Also, environmental opposition to fracking is high in Europe.
“It's hard to imagine it's going to take off fast,” Birnbaum said. “For the next 10 years, it's not a game-changer. The advantage of the U.S. on the gas side and the power side is quite sustainable.”
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.