Geoscience Policy Monthly Review
may 2016
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energy
KY and WV tapping into new hydroelectric power
May 2, 2016
Along the Ohio River in Kentucky and West Virginia, 4 dams originally built for passage of large ships in the 1960s and 70s are being retrofitted for hydroelectricity production. Scheduled to be completed by the end of 2016, the 4 dams are projected to produce 313 megawatts (MW) of energy. These dams will result in an increase of hydroelectric output in WV by 15 percent, in KY by 32 percent, and the entire Ohio River by 130 percent.
These 4 retrofitted dams along the Ohio River are an example of how hydroelectric capacity is shifting in the United States. An April 2016 report issued by the U.S. Energy Information Administration (EIA), expects 1083 MW of hydroelectric energy capacity to be installed between 2015 and 2019, with 422 MW of that coming from non-powered dams (NPDs), such as the 4 dams along the Ohio River that were not previously used to generate electricity.
The U.S. Department of Energy (DOE) released a report in 2012 on NPDs, claiming that NPDs have the potential to add 12 gigawatts (GW) of generating capacity to the entire U.S. portfolio, increasing hydroelectric power generation by 15 percent.
Sources: E&E News, U.S. Energy Information Administration, U.S. Department of Energy
Updated 6/9/16
AES holds briefing on offshore energy in the United States
May 16, 2016
The Advances in Earth Science coalition (AES), a consortium of professional geoscience societies and federal agencies, held a briefing on offshore energy in the United States. The speakers were Kristin Wood of Shell, Eric van Oort of the University of Texas at Austin, and James Bennett of the U.S. Bureau of Ocean Energy Management (BOEM). The briefing was moderated by Buford Pollett of the University of Tulsa.
Wood showed that global energy demand is projected to increase by 30% over the next 30 years, and that despite a probable threefold increase in renewable energy production, oil and gas will still meet the bulk of this demand. In his introduction, Pollett noted that 17% of U.S. crude oil production comes from offshore drilling, mostly in the Gulf of Mexico, making offshore oil and gas a major part of the U.S. energy industry for the foreseeable future.
Focusing on concerns in the aftermath of the 2010 Deepwater Horizon oil spill, van Oort detailed recent developments in drilling technology, well controls, training, containment, and safety. Notable attention was given to the new well control rule from the Bureau of Safety and Environmental Enforcement, which will take effect on July 28, 2016.
Bennett summarized the progress of offshore wind energy in the United States. The first offshore wind farm in the United States will begin producing energy in late 2016 off the coast of Block Island, Rhode Island. BOEM has awarded 11 leases off the Atlantic coast, with upcoming additional leases off the coasts of Long Island and the Carolinas. Bennett explained that offshore wind energy off the Pacific Coast, where waters are deeper, will depend on advances in floating turbine technology.
To accompany this briefing, a live webinar will be hosted by the American Geosciences Institute on June 14, featuring presentations from Pollett, van Oort, and Bennett, plus a live Q&A session.
Sources: Government Publishing Office, American Geosciences Institute
May 18, 2016
Resources for the Future (RFF) and Duke University co-hosted a seminar on how oil and gas development impacts local governments and communities. The speakers were Alan Krupnick of RFF, Richard Newell and Daniel Raimi of Duke University, and Aliza Wasserman of the National Governors Association (NGA).
Krupnick outlined RFF’s Community Impacts and Interactions Initiative, which studies the wide-ranging positive and negative effects of oil and gas on communities. A notable focus of the talk was a new report on how states can reduce the risks associated with inactive oil and gas wells.
Newell and Raimi presented results from the Duke University Energy Initiative’s Shale Public Finance project, which looks at the fiscal impacts of oil and gas development on local governments. Newell noted that local governments across 16 states received at least $11.6 billion dollars from oil and gas development in 2013, from property taxes, severance taxes, and leasing of state and federal lands. On average, the share of total production value flowing through to local governments is 4.3%, but varies from roughly 0.5% in Ohio to over 9% in Wyoming. The largest overall recipients of these funds are local schools, though this also varies from state to state.
Although the project found net positive fiscal impacts for most local governments, Newell noted that rural regions with rapid increases in oil and gas development tend to experience more negative effects. Raimi focused on the Bakken region in North Dakota, explaining that local governments had particular difficulty expanding and maintaining wastewater and road infrastructure to support rapidly growing populations and heavy industry use.
Wasserman described how the NGA provides advice on policy design to facilitate responsible shale (oil and gas) development. Wasserman also offered feedback for researchers to help improve the design and utility of studies on local impacts of oil and gas development.
A recording of the webinar, including the speakers’ slides, is available on the RFF website
Sources: Resources for the Future, Duke University