The magic of renewable mandates

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DAILY ENERGY NEWS | 09/01/2022

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There isn't enough land on Oahu to power the island with renewables, but let's shut the coal plant down anyway and burn oil instead. ¯\_(ツ)_/¯

Bloomberg (9/1/22) reports: "The last bits of ash and greenhouse gases from Hawaii’s only remaining coal-fired power plant slipped into the environment this week when the state’s dirtiest source of electricity burned its final pieces of fuel. The last coal shipment arrived in the islands at the end of July, and the AES Corporation coal plant closed Thursday after 30 years in operation. The facility produced up to one-fifth of the electricity on Oahu — the most populous island in a state of nearly 1.5 million people. 'It really is about reducing greenhouse gases,' Hawaii Gov. David Ige said in an interview with The Associated Press. 'And this coal facility is one of the largest emitters. Taking it offline means that we'll stop the 1.5 million metric tons of greenhouse gases that were emitted annually.'...In 2020, Hawaii’s Legislature passed a law banning the use of coal for energy production at the start of 2023. Hawaii has mandated a transition to 100% renewable energy by 2045, and was the first state to set such a goal. But critics say that while ending the state's dirtiest source of energy is ultimately a good move, doing so now is not. Renewable sources meant to replace coal energy are not yet on line because of permitting delays, contract issues and pandemic-related supply-chain problems. So the state will instead burn more costly oil that is only slightly less polluting than coal."

"[Low suppy] demonstrates that we have to move to clean reliable energy, and that's why [Biden] has really put a big emphasis on moving in that direction. So, that we can plug in electric vehicles and have solar panels."

– Secretary Jenny

It should be called Net zero things being produced instead. That would be more accurate.

Public News (8/31/22) reports: "German manufacturers are halting production in response to the surge in energy prices caused by Russia’s squeeze on gas supplies, a trend the government has described as 'alarming.' Robert Habeck, economy minister, said industry had worked hard to reduce its gas consumption in recent months, partly by switching to alternative fuels like oil, making its processes more efficient and reducing output. But he said some companies had also 'stopped production altogether' — a development he said was 'alarming.' 'It’s not good news,' he said, 'because it can mean that the industries in question aren’t just being restructured but are experiencing a rupture — a structural rupture, one that is happening under enormous pressure.' Habeck said rising gas prices were affecting everyone from big industrial companies to small trading firms and the medium-sized enterprises that make up the 'Mittelstand.' 'Wherever energy is an important part of the business model, companies are experiencing sheer angst,' he said. He said the business model of large parts of German manufacturing was based on the abundance of gas from Russia that was cheaper than gas from other regions. That competitive advantage 'won’t come back any time soon, if it ever comes back at all.' Habeck said."

It would be funny if it wasn't so sad.

When your policies make energy more expensive, they make everything more expensive.

Oil Price (8/30/22) reports: "The national average diesel price in the United States rose in the week to August 29 to above $5 per gallon again, the first weekly increase in more than two months, data from the Energy Information Administration (EIA) showed. For the week to August 29, the U.S. nationwide price of diesel jumped to $5.115 per gallon, up from $4.909/gal for the previous week. Higher diesel prices, due to low inventories, are hurting the trucking and agricultural businesses and raising the prices of consumer goods. Distillate fuel inventories, which include diesel, are about 24% below the five-year average for this time of year, the EIA said in its latest weekly petroleum status report. Inventories in the Northeast are dangerously low, at over 50% below the recent average, according to a survey by the U.S. Department of Energy cited by the Associated Press. Supplies of diesel fuel and heating oil are 63% below the five-year average in New England and 58% below the five-year average from Maryland to New York, according to the survey. Officials are concerned that an extreme weather event could cause a major disruption to distillate fuel supply in the Northeast and the entire East Coast. "

Energy Markets

WTI Crude Oil: ↓ $87.97
Natural Gas: ↑ $9.16
Gasoline: ↓ $3.82

Diesel: ↑ $5.08
Heating Oil: ↓ $351.57
Brent Crude Oil: ↓ $93.88
US Rig Count: ↑ 846

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