28 March 2016, Energy Post, Wake up call for oil companies: electric vehicles will deflate oil demand. The major oil companies greatly underestimate the impact electric vehicles will have on their market, write independent energy advisors Salman Ghouri and Andreas de Vries. According to Ghouri and De Vries, the trends currently underway in the auto industry are likely to have a substantial impact on oil demand in the medium term, and even a devastating impact in the longer term. If there is one event in history that has shaped the crude oil industry, it is the popularization of the internal combustion engine (ICE) by the auto industry. At the beginning of the 20th century, coal and wood were the dominant sources of energy, together providing more than 90% of global energy consumption. From 1910 onward, however, the Automotive Revolution triggered by Henry Ford spurred on demand for liquid fuels, causing crude oil’s contribution to global energy supply to more than double every decade. Consequently, by 1970 crude oil had taken top-spot in the global energy mix. Continued growth in the transportation sector ever since has provided the world’s oil companies with plenty of organic growth opportunities. And judging by the energy outlooks the major oil companies have published, they appear to expect this status quo to continue. For example, BP’s most recent Energy Outlook 2035 assumes that non-oil based transport will grow just 5% per annum for the next 20 years, and that essentially all of this growth will be in the gas-powered transport segment. Similarly, The Outlook for Energy: A View to 2040 published by ExxonMobil assumes that by 2040 “plug in” electric vehicles (EVs) and fuel cell vehicles (FCVs) will have no more than a 4% market share. Chevron, meanwhile, has indicated that it plans on the basis of the assumption that the auto industry will remain fundamentally the same for at least another 50 years. Alternative assumptions However, as we documented elsewhere, the auto industry itself expects its future to be radically different from its present. To assess how the new vision of the auto industry would impact crude oil demand, we have developed an Alternative Energy Outlook (AEO). Read More here
Yearly Archives: 2016
27 March 2016, Climate News Network, Renewable energy demands the undoable. Switching to renewable energy as fast as the world needs to will require changes so massive that they are unlikely to happen, scientists say. The world is increasingly investing in renewable energy. Last year, according to UN figures, global investment in solar power, wind turbines and other renewable forms of energy was $266 billion. This was more than double the investment of $130bn in coal and gas power stations in 2015. It sets a new investment record and brings spending on renewable energy since 2004 to a total, adjusted for inflation, of $2.3 trillion. And, says the United Nations Environment Programme’s report on Global Trends in Renewable Energy Investment 2016, that same push added 134 gigawatts (one gigawatt is reckoned enough to supply the needs of 750,000 typical US homes) of renewable power worldwide. It also spared the atmosphere the burden of an estimated 1.5 gigatonnes of carbon dioxide emissions (human activities, chiefly the burning of fossil fuels and changes in land use, add an extra 29 gigatonnes of CO2 to the atmosphere annually). Not enough But right now, the report says, renewable energy sources deliver just 10.3% of global electrical power. Neither the report’s authors nor anyone else thinks that is enough to slow climate change driven by rising global temperatures as a consequence of greenhouse gas emissions from fossil fuels. Read More here
25 March 2016, Climate News Network, Past emissions cause mounting climate havoc. Despite signs that the world will cut its future fossil fuel use, greenhouse gases already emitted are still driving accelerating climate change.Climate change has reached the point where it may outstrip the quickening efforts to slow it by reducing emissions of carbon dioxide and other greenhouse gases, scientists say. They say humans are now releasing CO2 into the atmosphere 10 times faster than natural processes have ever done in the last 66 million years, before the extinction of the dinosaurs. The disclosure comes in the World Meteorological Organisation’s State of the Climate report, published in the journal Nature Geoscience. The lead author, Professor Richard Zeebe of the University of Hawaii, said: “Our carbon release rate is unprecedented over such a long time period [and] means that we have effectively entered a ‘no-analogue’ state. “The present and future rate of climate change and ocean acidification is too fast for many species to adapt, which is likely to result in widespread future extinctions.” “The window of opportunity for limiting global temperature rise to well below 2°C . . . is narrow and rapidly shrinking. The effects of a warming planet will be felt by all” The UN secretary-general, Ban Ki-moon, said: “Climate change is accelerating at an alarming rate. The window of opportunity for limiting global temperature rise to well below 2°C – the threshold agreed by world governments in Paris in December last year – is narrow and rapidly shrinking. The effects of a warming planet will be felt by all.” The WMO secretary-general, Petteri Taalas, said the present “alarming” rate of climate change as a result of greenhouse gas emissions was “unprecedented in modern records”. “The future is now”, he said. Yet less than a week ago the International Energy Agency announced that global energy-related emissions of carbon dioxide had shown no increase for the second year in a row. The announcement was widely hailed as significant good news, with the IEA’s executive director, Fatih Birol, describing it as “yet another boost to the global fight against climate change”.Read More here
25 March 2016, BIEN, Universal basic income: a search for alternative models. With the expressed commitment of the Prime minister Juha Sipilä’s centre-to-right Government to conduct an experiment to evaluate the effects of a basic income system, the idea of a universal basic income has come to the forefront of the Finnish political discourse. Discussions centring on the idea of a universally guaranteed basic income have a long and varied history in the Finnish political arena, and several initiatives and practical models have been made public since the 1980s. A recent working paper published by the Finnish Social Insurance Institution (Kela) charts the history of the basic income debate and outlines solutions put forward for a true basic income system or one that bears some features of a universal basic income. The working paper will be used as background to analysis preparing the ground for the planned basic income experiment. An idea with a long history The working paper begins by presenting the history of ideas behind the discussion on a universal basic income or citizen’s wage, the latter being a term which is often used alongside ’basic income’ in the Finnish debate. Read More here