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Archive for May, 2008

Hot rocks are a rockin’ hot climate solution

Friday, May 23rd, 2008

alba.jpgcharacter.jpgWhile wind and solar get the media attention of a sexy starlet, good old geothermal power is treated like an aging character actor.

But geothermal energy is, in fact, sizzling hot these days. Big-time investors from Warren Buffet to Goldman Sachs to Morgan Stanley to Google have begun investing:

In 2007, private equity firms invested more than $400 million in geothermal energy, which is derived from hot water under the Earth’s surface and can be used for space heating or generating electricity

Why the interest in a form of energy that President Bush repeatedly tried to zero out of the Department of Energy Budget? One reason is the soaring cost of conventional power, like coal and nuclear. Another is the growing awareness of just how much is zero-carbon electricity will need in coming decades.

But perhaps most important for this reemerging technology, in the 2005 energy bill, Congress finally extended the renewable energy tax credit to geothermal “which at 2 cents per kilowatt hour for the first ten years, can account for a third of the cost of a project” — and which will expire in December unless Congress gets its act together (see here)!

The U.S. currently has 3 gigaWatts (3000 megaWatts) of geothermal, one third of the world’s capacity, generating $1.8 billion electricity sales. What is the ultimate potential?

The US Geological Survey estimates the US could generate 150,000 megawatts.

geo-map.gif

A major 2007 study by MIT on Enhanced Geothermal Systems (EGS) found that it could be a provider of substantial baseload (24/7) power:

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Tundra, Part 2: The point of no return

Friday, May 23rd, 2008

What is the point of no return for the climate — the level of CO2 concentrations beyond which catastrophic outcomes are virtually unstoppable?

No one knows for sure, but my vote goes for the point at which we start to lose a substantial fraction of the tundra’s carbon to the atmosphere — substantial being 0.1% per year! As we saw in Part 1, frozen away in the permafrost is more carbon than the atmosphere currently contains (and much of that is in the form of methane, a far more potent greenhouse gas than carbon dioxide).

What is the point of no return for the tundra? A major 2005 study (subs. req’d) led by NCAR climate researcher David Lawrence, found that virtually the entire top 11 feet of permafrost around the globe could disappear by the end of this century.

Using the first “fully interactive climate system model” applied to study permafrost, the researchers found that if we tried to stabilize CO2 concentrations in the air at 550 ppm, permafrost would plummet from over 4 million square miles today to 1.5 million. If concentrations hit 690 ppm, permafrost would shrink to just 800,000 square miles.

ncar.jpg

While these projections were done with one of the world’s most sophisticated climate system models, the calculations do not include the feedback effect of the released carbon from the permafrost. That is to say, the CO2 concentrations in the model rise only as a result of direct emissions from humans, with no extra emissions counted from soils or tundra. Thus they are conservative numbers–or overestimates–of how much CO2 concentrations have to rise to trigger irreversible melting.

In short, those would-be points of atmospheric stabilization, 550 ppm or 690 ppm, aren’t stable at all — they are past the point of no return. We must stay well below 450 ppm to save the tundra and hence the climate.

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The permafrost won’t be perma for long, Part 1

Thursday, May 22nd, 2008

[This 3-parter will look at the tundra-climate connection, modeling of tundra loss from future warming, and some new research.]

tundra-melt.jpgThe tundra is probably the single most important amplifying carbon-cycle feedback. None of the IPCC’s climate models, however, include carbon emissions from a defrosting tundra as a feedback.

Yet, as NOAA reported last month (here), levels of methane (a far more potent greenhouse gas than CO2) rose last year for the first time since 1998, which may be an early indication of thawing permafrost. So it seems like a good a time for a review and update of what we know.

The tundra or permafrost is soil that stays below freezing (0°C or 32°F) for at least two years. Normally, plants capture carbon dioxide from the atmosphere during photosynthesis and slowly release that carbon back into the atmosphere after they die. But the Arctic acts like a freezer, and the decomposition rate is very low. The tundra is a carbon locker. We open it at our own risk.

permafrost-better.jpgWe now know the Arctic contains far more carbon than previously thought (Science, subs. req’d) — nearly 1000 billion metric tons of carbon (some 3600 billion metric tons of carbon dioxide). That exceeds all the carbon dioxide currently in the atmosphere. The permafrost may contain more than a third of all carbon stored in soils globally, much of it in the form of methane. Problem: Global warming is melting the top layer of permafrost, creating the possibility of large releases of soil carbon, and that is a potentially devastating vicious cycle. We are defrosting the tundra freezer-and at an unprecedented rate.

We know methane is bubbling up out of the tundra far faster than previously thought (Nature, subs. req’d). In fact, a 2006 study by Alaska researchers (GRL, subs. req’d) finds rapid degradation to key elements of the permafrost “that previously had been stable for 1000s of years.” The study, titled “Abrupt increase in permafrost degradation in Arctic Alaska,” concludes that this recent degradation exceeds changes seen earlier in the 20th Century by a factor of ten to a hundred.

What’s happening in Siberia is even more alarming:

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Water groups seek help from Congress to address climate impacts

Thursday, May 22nd, 2008

drought-little.jpgThe most serious impacts of global warming involve water and the hydrological cycle:

  • Sea level rise and storm surges
  • Droughts and desertification
  • Deluges and Flooding
  • Loss of snowpack and inland glaciers

That’s why “The Water Environment Federation (WEF) and a coalition of national water organizations called on Congress to recognize the severe impacts that global climate change will likely have on water resources in the United States.” The groups noted that climate change is already begun to effect water resources around the country. The letter to Congress (here) calls for a number of measures including

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Should you believe anything John Christy and Roy Spencer say?

Thursday, May 22nd, 2008

I don’t. But should you?

spencer.jpgchristy.jpgYou can’t read everything or listen to everybody. Life is just too short. I debated Christy years ago so I know he tries to peddle unscientific nonsense when he thinks he can get away with it.

But some of the more than 360 (!) comments in my recent post “The deniers are winning, especially with the GOP” can’t seem to get enough of the analyses by these two scientists University of Alabama in Huntsville (UAH) who famously screwed up the satellite temperature measurements of the troposphere.

In the interest of saving you some time, which is a major goal of this blog, let’s see why these are two people you can program your mental DVR to fast forward through. First off, they were wrong — dead wrong — for a very long time, which created one of the most enduring denier myths, that the satellite data didn’t show the global warming that the surface temperature data did. As RealClimate wrote yesterday:

We now know, of course, that the satellite data set confirms that the climate is warming , and indeed at very nearly the same rate as indicated by the surface temperature records. Now, there’s nothing wrong with making mistakes when pursuing an innovative observational method, but Spencer and Christy sat by for most of a decade allowing — indeed encouraging — the use of their data set as an icon for global warming skeptics. They committed serial errors in the data analysis, but insisted they were right and models and thermometers were wrong. They did little or nothing to root out possible sources of errors, and left it to others to clean up the mess, as has now been done.

Amazingly (or not), the “serial errors in the data analysis” all pushed the (mis)analysis in the same, wrong direction. Coincidence? You decide. But I find it hilarious that the deniers and delayers still quote Christy/Spencer/UAH analysis lovingly, but to this day dismiss the “hockey stick” and anything Michael Mann writes, when his analysis was in fact vindicated by the august National Academy of Sciences in 2006 (see New Scientist’s “Climate myths: The ‘hockey stick’ graph has been proven wrong“).

In their solo careers, Spencer and Christy are still pros at bad analysis. (more…)

$12 – $15 gas? Not so fast. But we’ll soon be mad for $6 – $7

Thursday, May 22nd, 2008

mad_money.jpgNormally I would listen to Robert Hirsch and the legendary Charlie Maxwell, over CNBC’s “Mad” Jim Cramer. But Hirsch (here) and Maxwell (here) are making headlines for saying $12-$15 gasoline is around the corner, based on Maxwell’s projection of oil “reaching $180 a barrel in 2015 and $300 a barrel in 2020.”

Sorry guys, every extra $40 barrel is another dollar a gallon or so at the pump. Don’t quite know how they did the math, but they did it wrong.

When Mad Money’s Jim Cramer is the voice of sanity, you know the energy world is topsy-turvy, but I happened to catch him explaining to Matt Lauer on Today that such prices take us to $6 to $7 over the next few years, yes, but $12 to $15 gasoline requires a price of oil that the world is exceedingly unlikely to get to any time soon — $450 to $500 a barrel by my estimate. The world would almost certainly go into a deep global recession long before we hit those prices.

But the situation is dire, as I’ve noted many times (see below). The WSJ has a front page article today, “Energy Watchdog Warns Of Oil-Production Crunch: IEA Official Says Supplies May Plateau Below Expected Demand,” which begins ominously

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Quick Kansas Update – A 3rd Veto

Wednesday, May 21st, 2008

This past Saturday, Governor Sebelius vetoed the third (and final) piece of legislation that proposed two new coal-fired power plants in western Kansas.

There’s still a chance that legislators will attempt an override on May 29th. Like last time, an override is a given in the Senate, but the House votes are in question.

Her comments are starting to sting, and you can tell she’s sick of the shenanigans:

Rather than working toward a compromise solution, legislative leaders recklessly chose to jeopardize important initiatives for businesses and communities across our state by combining them with energy legislation I have previously vetoed twice. …this maneuver has done nothing to address the issues at hand – developing comprehensive energy policy, providing base-load energy power for Western Kansas, implementing carbon mitigation strategies and capitalizing on our incredible assets for additional wind power.

This third attempt to build the coal plants is unique in that the legislation pairs the coal plants with economic development incentives. Sounds like it should give coal proponents a leg up, until you find out that under the Kansas constitution, no single piece of legislation can undertake two subjects. So there’s a good chance that for this legislative session, the final attempt will be forced to die with a whimper. Let’s hope so.

– Kari Manlove

The Strange Case of Dr. Pielke and Mr. Hidebound on delaying climate action

Wednesday, May 21st, 2008

jekyll.jpgRoger Pielke has jumped the shark.

The ultraconservative Washington Times, in yet another media piece that misunderstands the recent Nature article on warming (see here), writes:

Roger A. Pielke, environmental studies professor at the University of Colorado, and not previously a global warming skeptic, reacted to the Nature article: “Climate models are of no practical use beyond providing some intellectual authority in the promotional battle over global-warming policy.”

Who is this “not previously a global warming skeptic”? Let me call him Mr. Pielke, since, unlike Dr. Jekyll’s, Mr. Hyde, Dr. Pielke and Mr. Pielke look exactly the same. The friendly non-skeptical heretic Dr. Pielke explicitly said on this blog that the “acceptable level” of atmospheric concentrations of carbon dioxide is 450 to 500 ppm (see here). The friendly Dr. Pielke has also said achieving such a target would require more than 14 wedges (see here), which is a bloody lot of effort.

But Mr. Pielke says climate models have no practical use. Yet it is climate models that tell us that if we don’t stabilize near 450 ppm, the consequences for the climate and humanity will be an unmitigated catastrophe. If climate models are of no practical use, then why go to all that effort mitigating? Why not do nothing — as the Washington Times prefers — and just go to 1000 ppm?

That’s why Mr. Pielke is the go-to guy for quotes on not mitigating …

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Bush policies cause U.S. carbon dioxide emissions to soar in 2007

Wednesday, May 21st, 2008

The year of living stupidly is over. No longer must we put up with the nonsense that Bush’s policies are anything but an outright catastrophe for greenhouse gas emissions and future generations.

eia1.gifThe EIA reported yesterday:

U.S. carbon dioxide emissions from burning fossil fuels increased by 1.6 percent in 2007…. Factors that drove the emissions increase included … a higher carbon intensity of electricity supply.

President Bush immediately released a statement:

We are effectively contributing to the problem of global climate change through flawed energy policy, obstructionist domestic and international climate policy, and general disinformation.

Okay, he didn’t release that statement, but he should have, given that after EIA revealed the temporary dip last year, he claimed:

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No-till farming does NOT save carbon and is NOT a carbon offset

Wednesday, May 21st, 2008

The list of very knowledgeable folk who still are pushing no-till farming as a greenhouse gas mitigation strategy even though science passed them by a while ago include:

I buried the science in the McCain post, but it deserves higher visibility. As a major review article from Agriculture, Ecosystems and Environment, Tillage and soil carbon sequestration–What do we really know?” concluded:

In essentially all cases where conservation tillage was found to sequester C[arbon], soils were only sampled to a depth of 30 cm or less, even though crop roots often extend much deeper. In the few studies where sampling extended deeper than 30 cm, conservation tillage has shown no consistent accrual of SOC [soil organic carbon], instead showing a difference in the distribution of SOC, with higher concentrations near the surface in conservation tillage and higher concentrations in deeper layers under conventional tillage.Long-term, continuous gas exchange measurements have also been unable to detect C gain due to reduced tillage. Though there are other good reasons to use conservation tillage, evidence that it promotes C sequestration is not compelling.

[Conservation tillage is "broadly defined as any tillage method that leaves sufficient crop residue in place to cover at least 30% of the soil surface after planting.]

This is actually not especially new research. The review article went online in June 2006, and, of course, as a review article, it was based on even earlier research — including a 1981 (!) study that came to the same exact conclusion:

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Rep. Bartlett hits House on renewables — and I don’t mean Gregory House

Tuesday, May 20th, 2008

house.jpgI love House. Not the House of Representatives, but the TV show.

Seems like everybody loves to see people with seemingly inexplicable symptoms saved from sure death. No doubt that explains the fascination with the Lieberman-Warner Bill. But people — I’ve been trying to be gentle about this — it’s dead. Sure, like Amber on the season finale — [Spoiler Alert] — L-W can be briefly revived so we can say goodbye to it forever, but that is really just a soap opera gimmick. And she died anyway.

We don’t need to say goodbye to L-W, we need to focus all our effort on those important bills that are still clinging to life, bills that haven’t already signed a contract to appear on another TV show next season — like the investment tax credit that is crucial to keeping the momentum going on core technologies that can avert catastrophic climate change (see Barlett op-ed here and PG&E op-ed here). To L-W supporters, I can only offer this eulogy:

L-W has passed on! It is no more! It has ceased to be! L-W’s expired and gone to meet ‘is maker! It’s a stiff! Bereft of life, It rests in peace! If you hadn’t nailed ‘im to the perch ‘e’d be pushing up the daisies! ‘Is metabolic processes are now ‘istory! ‘E’s off the twig! ‘E’s kicked the bucket, ‘e’s shuffled off ‘is mortal coil, run down the curtain and joined the bleedin’ choir invisibile!! THIS IS AN EX-PARROT piece of so-so climate legislation that in any case would not have averted catastrophe!

Okay, that wasn’t really a eulogy. But the point is, the wind and solar tax credits must be saved. As Bartlett (R!-MD) wrote:

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Sanders: Senate Energy hearing on costs of climate bill filled with “Old Think”

Tuesday, May 20th, 2008

The Senate Energy & Natural Resources committee held a pointless if not counterproductive hearing today, “To receive testimony on Energy and Related Economic Effects of Global Climate Change Legislation.”

How painful a hearing was it? Before it started, the Senate’s leading global warming denier issued a release titled, “Inhofe Praises Energy Committee for Holding Hearing on Economic Impacts of Climate Bill.” Grist called it a “hearing to stoke fear about the costs of climate legislation.”

The hearing did not have any experts on the cost of inaction or on clean energy technologies, especially energy efficiency, which is the cornerstone of any strategy to minimize total costs. The witness were mostly filled with the same-old classical economists:

  • Mr. Brent Yacobucci, Congressional Research Service
  • Dr. Larry Parker, Congressional Research Service
  • Dr. Howard Gruenspecht – Deputy Administrator, Energy Information Administration
  • Dr. Brian McLean, U.S. Environmental Protection Agency
  • Dr. Peter Orszag, Congressional Budget Office

I actually worked with both Gruenspecht and Orszag during the Clinton administration. They are very smart guys, but they have never been people who believed in the serious ability of energy efficiency (or other low-carbon technologies) to keep energy bills from rising much even as fuel costs inevitably rise under a major cap-and-trade bill.

The opening statements were bland. Question after question trashing even the idea of US climate legislation was answered lamely if at all. Absent any relevant experts, conservative senators were able to raise doubts about impacts on the economy, on gas and oil prices, and on US competitiveness — and even potential allies were left calling for a Manhattan project to develop new technologies, blah, blah, blah, with little pushback from the witnessses.bernie.jpg

The hearing only came to life when Bernie Sanders (I-VT) spoke. He dismissed everything he had heard [from the witnesses] as “old think.” He wondered how you could contemplate analyzing the economic impact of climate legislation if you don’t understand what’s going on with energy efficiency in California and other states, or electric vehicles, or the new concentrated solar thermal power (!) plants now being built. He also demanded to know what the cost of inaction would be, and why none of the witnesses spoke to that.

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Lieberman-Warner moved from morgue to anatomy class

Tuesday, May 20th, 2008

greysanatomy_s3.jpgAlthough still dead, the L-W climate bill remains a subject of morbid curiosity. Now that its body has been donated to science, L-W will probably get as much attention as a certain season finale also about anatomy.

Grist has kindly posted the version of the L-W bill that will go to the Senate floor (through the miracle of Scribd here). This is the “substitute amendment” by Senate Environment and Public Works Chair Barbara Boxer (D-CA) to the Climate Security Act.

In dissecting the bill, let’s start with Title V, Subtitle C: Emergency Off-Ramps.

If the price of carbon allowances reaches a certain price range, there is a mechanism that will automatically release additional emission allowances onto the market to lower the price. The additional allowances are borrowed so that the environmental integrity of the caps over the long term is protected.”

We see here that the bill was rushed to the emergency room in a desperate attempt to save the bill from the safety valve. Yes, borrowing is a better idea than the safety valve (see A Better Idea Than the “Safety Valve”), but the patient is left with a medical mystery that would even intrigue the Sherlock Holmes of diagnosticians, Dr. Gregory House –what is meant by “a certain price range”?

If that price range is anywhere near $30 a ton of carbon (and rising each year), then the coroner’s original cause of death, “apathy,” will prove to be well justified (though justifiable homicide would also be a plausible verdict). If it is closer to $30 a ton of carbon dioxide (and rising each year), we may have to look elsewhere. [For a critique of the greenhouse gas target, see A Siegel here.]

Interestingly, with the body still warm, we almost forgot about the deceased’s will. But in a move whose generosity will warm the hearts of everyone but the coldest conservatives, the bill creates the largest bequest in history — $5.6 trillion from now through 2050 — to boost clean energy and to satisfy various interest groups. Let’s look at the astonishing array of beneficiaries Boxer’s amendment provides (all dollars are cumulative through 2050): (more…)

This just in: Great Ice Age of 2008 is still over

Monday, May 19th, 2008

This is a follow up to the Climate Progress exclusive from last month, “The Great Ice Age of 2008 is finally over — next stop Venus!” NOAA’s National Climactic Data Center reported (here):

Based on preliminary data, the globally averaged combined land and sea surface temperature was the thirteenth warmest on record for April and the January-April year-to-date period ranked twelfth warmest.

So global coolers will have to find some other fish to fry freeze. [Yes, I know, deniers/delayers, the mere fact that this wasn't the warmest April or warmest January-April on record proves conclusively we must be cooling.] Interestingly the warmest April and January-April on record according to NOAA/NCDC occurred in … wait for it … 2007.

The rest of us know that we are on the cool side of all-time warming because we’re still in a (weakened) La Niña and a local mininum of the solar irradiance cycle (see figure) but the deniers/delayers insist that if CO2 doesn’t explain every single short-term and medium-term temperature fluctuation, then the whole damn theory of human-caused warming is as debunked as, say, the notion that men ever landed on the moon.

nasa-solar-fixed.jpg

By the way, I don’t like to brag or anything, but as I correctly predicted last month:

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Bar Wars

Monday, May 19th, 2008

When President Bush delivered his much-hyped climate policy speech from the Rose Garden last April (see here), he voiced an interesting concern. He’s worried that the courts will do what the other two branches of government have failed to do: take meaningful action to curb the country’s carbon emissions.

We face a growing problem here at home,” the president said. “Some courts are taking laws written more than 30 years ago — to primarily address local and regional environmental effects — and applying them to global climate change.”

“Decisions with such far-reaching impact should not be left to unelected regulators and judges,” he continued. “Such decisions should be opened — debated openly; such decisions should be made by the elected representatives of the people they affect. The American people deserve an honest assessment of the costs, benefits and feasibility of any proposed solution.”

The White House promised that Bush’s Rose Garden remarks would be important and it was correct: The president’s call for open debate and an honest assessment of climate action was a major policy shift. His complaint about unelected judges making decisions was specious, however. The elected members of past Congresses and Bush’s predecessors signed the 30-year-old laws on which some of the current court decisions are based. Old laws are being applied to global warming because the current Congress and White House have failed to pass new ones.

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Prius, Part 2: Why hybrids beat diesels

Monday, May 19th, 2008

The best thing about the Prius is that it achieves its high fuel economy without sacrificing size or performance and, most importantly for global warming, without being a diesel. There seems to be a lot of confusion on this point in the comments section of Part One, so let me elaborate.

Bottom Line: If you care about global warming, don’t buy a diesel car (certainly not in this country), and if you must buy a diesel, only get a new one with a very good particle trap. [Does this mean that Europe's massive switch to diesel was not good for the climate? In a word,"probably."]

First, diesel fuel has a considerably higher carbon content than gasoline, so burning a gallon of diesel emits 22.2 pounds of CO2 vs. 19.4 for gasoline (see here). A diesel car with the same mpg as a gasoline car would have considerably higher carbon dioxide emissions per mile. [This is offset one third by the fact that diesel has fewer upstream emissions, which, if I did the math right, takes total life-cycle CO2 emissions from a gallon of diesel to 25.8 pounds vs. 24.2 for gasoline (see here).]

diesel.jpgSecond, and more importantly, we have known for a number of years that black carbon (BC) or small soot particles are a major greenhouse gas — and that diesel engines are a major source of BC. A March 2008 review article published in Nature Geoscience, (subs. req’d, abstract below), “Global and regional climate changes due to black carbon,” found that BC may be as much as 55% as potent in total greenhouse warming as CO2.

In October, the House held “a hearing to examine the climate change and other impacts of black carbon emissions” (testimony and transcript here). Dr. Mark Jacobson, Co-founder and Director of the Atmospheric Energy Program at Stanford University’s Department of Civil and Environmental Engineering, testified directly on how BC emissions significantly reduce the climate benefits from diesel cars (here):

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The Coal Calm in Kansas, for now

Sunday, May 18th, 2008

Ever since the Kansas House failed to override Governor Sebelius’ veto of two coal plants, the state’s chambers have fallen quiet. Not because the issue is dead; but the actors are laying low, reflecting, and figuring out their next move.

In the meantime, persona speculation is rampant. There is talk of the Governor’s potential as a running mate for Obama, should he be declared the Democrat nominee.

On the other side of things, there’s rumbling of Kansas Speaker Melvin Neufield’s utter disappointment to his party to deliver the votes to override Sebelius’ veto. My question for those critics is – to what extent did he fail because the coal plants are just bad ideas in and of themselves, and people finally recognized that? I’d argue that it is slightly erroneous to place full blame on the politician and miss an acknowledgment of how doomed the actual policy is/would be, regardless.

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Wind Power — A core climate solution

Saturday, May 17th, 2008

wind-turbines3.jpgWind power is a key climate solution. It is one of the few zero-carbon supply options that can plausibly provide more than one of the 14 or so “wedges” we need to stabilize below 450 ppm of CO2 (see “Is 450 ppm politically possible? Part 2: The Solution“). I plan to go through all of the major solutions this year on the blog.

The stunning new Bush administration report, 20% Wind Energy by 2030 (discussed here), convinced me it was time to write a long piece, which has just been published in Salon. The article–”Winds of change: The U.S. can greatly boost clean wind power for 2 cents a day. Now all we need is a president who won’t blow the chance.“– explains the more than 2,000-year history of wind power, how conservatives cost America the chance to be the world wind leader, and why the global industry is so successful in spite of our government’s relative apathy:

From 2000 to 2007, the industry increased fivefold in size. Last year, $36 billion in wind investments were made around the world, with $9 billion invested in U.S.-based projects. In 10 years, it is expected to nearly quadruple in size.

Yes, I know, most of the media attention goes to a few high-visibility debates about putting wind in places like the waters off Cape Cod. But most installations are a welcome source of revenue to farmers and landowners. In fact, because the new wind turbines are tall, and don’t interfere significantly with grazing or farming, they have become popular in the central U.S., where the wind resource is best in the country. Some ranchers make half a million dollars a year by leasing only a fraction of their land for turbines.

Surprisingly, the top state for wind farms is no longer California as of 2006:

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Note to media/Bush: Saudis/OPEC don’t control the price of oil any more!

Friday, May 16th, 2008

With Bush going to Saudi Arabia to beg — again — for lower prices, the media is gaga over a confrontation that has about as much significance as a Rocky Balboa fight.

Even the venerable NYT just published an article, “Bush Rebuffed on Oil Plea in Saudi Arabia,” that opens, “With the price of oil hitting record highs, President Bush used a private visit with King Abdullah to make a second attempt to persuade the Saudis to increase oil production and was rejected yet again.”

Unlike the 1970s and 1980s and even much of the 1990s, neither OPEC nor the Saudis no longer control the price of oil.

If any country had a million barrels a day of (sellable) sparce oil capacity, they could make more than $100 million a day selling it, even if that much new oil dropped prices 20%, which it probably wouldn’t.

opec.gifWho would sit on that kind of money? Yes, the Saudis are selling over 8 million barrels a day, so they don’t really need the money. But if they have any significant excess capacity, it is sour or high-sulfur crude (see the other experts on the full CNBC interview here). Such crude is not currently in demand: “Many refineries are not set up to process such crude because it is more difficult and expensive to refine into products.”

Even the WSJ, which published the figure on the right, headlined the October article, “OPEC’s Lever Loses Its Pull on Oil” (subs. req’d). As I wrote back then, “We cannot be far from $100+ oil.” Duh!

By the way, the Saudis are much slier than Bush, national security adviser Stephen J. Hadley, and, most of the press [okay, that's not saying much]. As the NYT and AP reported, Hadley told reporters:

“What they’re saying to us is” that “Saudi Arabia does not have customers that are making requests for oil that they are not able to satisfy.”

What a clever way of sounding to those not in the know [This means you -- Bush, Hadley, and the media] like they are sitting on extra capacity that they could sell, when in fact what they are really saying is that they have no customers for any extra capacity they have.

The situation is not going to get any better soon until the nation and the world develop and deploy at scale a high-volume, low-cost, carbon free alternative fuel:

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Toyota’s foresight pays off, Part 1: Prius sales top one million

Friday, May 16th, 2008

The Toyota Prius is “the world’s first mass-produced petrol-electric hybrid car to hit 1 million in sales.” More than half of those were sold in North America. Toyota’s goal is to sell more than one million per year.

prius-lot.jpg

I own one and must say it is a terrific car. I get about 45 miles per gallon combined city and highway — double the mpg of my old Saturn, which was not as big.

I think the comments from the Wired blog bear repeating, considering how GM (and others) mocked Toyota for pushing what they claimed was a money-losing vehicle:

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