“Obama Floats Offering First-Ever Drilling Lease in Atlantic” – AP, 27 January 2015

President Obama has introduced a plan that would allow drilling in parts of the Atlantic Coast, while simultaneously putting an end to any drilling in certain areas in Alaska.

The administration’s proposal concentrates on Virginia, North Carolina, South Carolina, and Georgia, and will sell areas 50 miles off the states’ coasts to oil companies beginning in 2021. Oil companies have been denied access to these areas in the Atlantic Ocean for years, particularly since drilling in those areas was banned in 2008. Additionally, the proposal includes leases for regions in the Gulf of Mexico and Alaska coast. Leases will be sold between 2017 and 2022.

Many politicians cited the 2010 BP oil spill in the Gulf of Mexico as a reason not to move forward with the proposal, which remains the biggest oil spill of its kind in the US. Since then, regulations on offshore drilling have not improved; Congress has yet to adopt new laws that would make drilling safer. Many believe that drilling in these regions is a misguided way of developing energy — and acquiring energy independence — in the US.

However, politicians in the Southeastern states are backing Obama’s plan, asserting that the new venture will boost the economy by creating jobs and encouraging investments. Currently, the US is experiencing a flood in oil, which has caused oil and gas prices to significantly drop.

Areas chosen to be leased and sold are subject to change. Oil generation from offshore drilling supplies 16 percent of the US’s oil. In order to find oil and gas deposits under the ocean, firms will have to run seismic imaging surveys; a process that can take years, the firms attach seismic air guns to their boats that they will drag for miles on the ocean surface. The guns then radiate air and sound, which assists in mapping 2D and 3D images of the ocean floor.

(From Associated Press)

Developed and Written by Dr. Subodh Das and Tara Mahadevan

January 28, 2015

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“GOP oil titan: Keystone’s irrelevant” – Politico, 14 November 2014

Though the Keystone XL pipeline has been a hot-button issue with environmentalists, it seems that it has become an irrelevant discussion. The pipeline was introduced in 2005, and still no decision has been made about its construction. In October, the House approved a bill that would authorize the pipeline; however, a few days later, the bill failed to pass through the Senate. If it had passed, the bill would have gone directly to President Obama, though it’s likely he would have vetoed it.

But all that might change when the new Republican-majority Congress reconvenes in January. In fact, it has become the mission of Republican Senator Mitch McConnell (KY) to have the bill pass. It’s probable that the bill will pass both Congress legislatures, but the bill will need 67 votes in favor in order to quash a presidential veto.

Regardless of the pipeline’s importance, proponents firmly contend that the $8 billion pipeline will allow for a flood of new jobs and bolster North American energy independence; but opponents believe that it will increase fossil fuels and further incite the effects of climate change.

It seems like the oil industry has moved on from Keystone; oil companies are employing other pipelines to carry their oil. Furthermore, the US now has an abundance of oil, which has reduced prices. Bringing more oil in from Canada doesn’t seem like the best plan.

What some suggest — like Harold Hamm, the CEO of Oklahoma’s Continental Resources — is that the US should end its crude oil export ban, which would make the oil market fairer for US oil companies. Congress imposed the ban in the 1970s due to the worry that we were becoming too reliant on foreign oil. Now that US oil prices have dropped, Saudi Arabia is attempting to undercut our prices so that it can recover what it has lost in the market. Further, a lift on the ban could help Ukraine and European countries that are under the thumb of Russian President Vladimir Putin.

Conversely, if the ban is lifted, we could see gas prices soar; lawmakers would become our scapegoat.

(From Politico)

Developed and Written by Dr. Subodh Das and Tara Mahadevan

November 29, 2014

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Coal Production is Increasing in Western Kentucky

Western Kentucky’s coal production has picked up again, as we see mines employing new workers. In general, production is growing across the state, though it is decreasing in Eastern Kentucky.

In 2013, production in Eastern Kentucky decreased while Western Kentucky skyrocketed by 90 percent since 2003. According to Kentucky’s Energy and Environment Cabinet, production was dropping in Western Kentucky due to the area’s high concentration of sulphur; however, mines in Western Kentucky have since installed scrubbers, which cleanse the coal of pollutants and, in turn, have increased production.

According to the most recent Kentucky Quarterly Coal Report, which includes production from July through September, Kentucky generated 19.9 million tons during the three month period.

For the past three quarters, total Kentucky coal production has increased; but while Western mines’ production have risen by 5.2%, Eastern mines’ production has fallen by 4.3%. Analysts anticipate that production from the coal basin, including Western Kentucky, will see an upsurge in the following 25 years.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

December 2, 2014

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“This company invented a better soda can. Why isn’t anybody buying?” – Grist, 30 October 2014

Less than a year after introducing the evercan, Novelis broke ground on a new multimillion dollar plant in Germany to manufacture the cans, which are made of 90 percent recycled aluminum. Novelis thought the evercan was a win-win for the company: the cans are cheaper to produce and more sustainable for the environment, since far less energy is used to produce recycled aluminum than virgin aluminum, a minimum of five percent.

With such advantages, it seems that the large beverage companies — Coca-Cola, PepsiCo, MillerCoors, etc. — would be chomping at the bit to get their hands on the evercan; however, these companies aren’t buying. The only company currently using the evercan is Georgia-based micro-brewer Red Hare Brewing Co. What’s even more odd is that Novelis’ aluminum supply is being purchased in spades by top automobile companies Ford and GM for their new lines of all-aluminum body cars.

But it seems that the beverage industry’s preferences are elsewhere. Besides the beverage companies’ hesitance to rely on one aluminum supplier, many of the companies, such as Coca-Cola, prefer PET plastic bottles to cans. Coca-Cola uses a bottle called a “plantbottle,” which is a PET bottle produced from sugar cane and sugar cane waste. The plantbottle makes up 60 percent of Coca-Cola’s worldwide sales. Moreover, the plantbottle is also resealable, which is a bonus for consumers.

Environmentally undesirable land filling, for obvious reasons, is a total waste of energy and valuable raw materials. Exporting lower value scrap is another way to export energy and valuable elements embedded in post-consumer aluminum products, only to come back to the US as more value added semi and fully finished products. This would adversely affect US trade balance.

Furthermore, economic incentives and societal consumer awareness supported by numerous newer scrap sorting technologies under development should limit land filling of scrap in US and reduce scrap export to countries like China.

If one beverage company vouches for the evercan, then perhaps other companies would follow suit. But more than that, the industries directly involved in recycling — aluminum, beverage, and waste — need to bolster their recycling actions so that Novelis has more material to work with.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

November 2, 2014

Phinix LLC

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