The long-term petroleum price outlook - When will it escalate?

For the last few years, the Saudi kingdom’s insistence on pumping oil at high capacity has dramatically depressed oil prices. The result has undermined Saudi’s major oil rivals in OPEC – like Iran and Venezuela.

It has also hit Russia, hard.

Rating agency Standard & Poor forecasts that Russia’s budget deficit is set to swell to 4.4 per cent of GDP this year. Russia’s own finance ministry concedes that if expenditures continue at this rate, within sixteen months – by around the end of next year – its oil reserve funds will be exhausted.

Meanwhile, over the last year real incomes have dropped by 9.8 per cent, and food prices have spiked by 17 per cent, heightening the risk of civil unrest.

System failureh

Rumbling along beneath the surface of such financial woes are deeper systemic issues.

A report from the Swedish Defence Research Agency notes that “prolonged dry periods in southern Russia are having the effect of reducing the level of food production”.

Most of Russia’s wheat imports come from Kazakhstan, “where climate change is expected to exacerbate droughts. These impacts would make farming harder and food more expensive,” observe Dr. Marina Sharmina and Dr. Christopher Jones of the Tyndall Centre for Climate Change Research.

Russia’s looming energy crisis is the other elephant in the room. In 2013, HSBC forecasted that Russia would hit peak oil between 2018 and 2019, experiencing a brief plateau before declining by 30 per cent from 2020 to 2025.

That year, Fitch Ratings came to pretty much the same conclusion. And last year, Leonid Fedun, vice-president of Russia’s second largest oil producer, Lukoil, predicted that the production could peak earlier due to falling oil prices and US-EU sanctions.

Faced with overlapping economic, food and energy crises, Russia is well and truly on the brink. More

Furthermore, According to a recent report from the IMF, Saudi Arabia’s public debt is estimated to rise from below 2 percent of its GDP in 2014 up to 33 percent by the end of 2020. The report also shows that in the past three years, Saudi Arabia’s budget surplus was turned into a deficit reaching 21.6 percent of GDP in 2015. More

 

©

Global carbon dioxide levels break 400ppm milestone

Record carbon dioxide (CO2) concentrations in the atmosphere were reported worldwide in March, in what scientists said marked a significant milestone for global warming.

Figures released by the US science agency Noaa on Wednesday show that for the first time since records began, the parts per million (ppm) of CO2 in the atmosphere were over 400 globally for a month.

The measure is the key indicator of the amount of planet-warming gases man is putting into the atmosphere at record rates, and the current concentrations are unprecedented in millions of years.

The new global record follows the breaking of the 400ppm CO2 threshold in some local areas in 2012 and 2013, and comes nearly three decades after what is considered the ‘safe’ level of 350ppm was passed.

“Reaching 400ppm as a global average is a significant milestone,” said Pieter Tans, lead scientist on Noaa’s greenhouse gas network.

“This marks the fact that humans burning fossil fuels have caused global carbon dioxide concentrations to rise more than 120ppm since pre-industrial times,” added Tans. “Half of that rise has occurred since 1980.”

World leaders are due to meet in Paris for a UN climate summit later this year in an attempt to reach agreement on cutting countries’ carbon emissions to avoid dangerous global warming.

Dr Ed Hawkins, a climate scientist at the University of Reading told the Guardian: “This event is a milestone on a road to unprecedented climate change for the human race. The last time the Earth had this much carbon dioxide in the atmosphere was more than a million years ago, when modern humans hadn’t even evolved yet.

“Reaching 400ppm doesn’t mean much in itself, but the steady increase in atmospheric greenhouse gases should serve as a stark reminder of the task facing politicians as they sit down in Paris later this year.”

Greenhouse gas emissions from power plants stalled for the first time last year without the influence of a strict economic recession, according to the International Energy Agency, an influential thinktank.

Nick Nuttall, a spokesman for the UN Framework Convention on Climate Change (UNFCCC) which oversees the international climate negotiations, said: “These numbers underline the urgency of nations delivering a decisive new universal agreement in Paris in December – one that marks a serious and significant departure from the past.

“The agreement and the decisions surrounding it needs to be a long term development plan providing the policies, pathways and finance for triggering a peaking of global emissions in 10 years’ time followed by a deep, decarbonisation of the global economy by the second half of the century.”

But even if manmade emissions were dramatically cut much deeper than most countries are planning, the concentrations of CO2 in the atmosphere would only stabilise, not fall, scientists said.

James Butler, director of Noaa’s global monitoring division, said: “Elimination of about 80% of fossil fuel emissions would essentially stop the rise in carbon dioxide in the atmosphere, but concentrations of carbon dioxide would not start decreasing until even further reductions are made and then it would only do so slowly.”

Concentrations of CO2 were at 400.83ppm in March compared to 398.10ppm in March 2014, the preliminary Noaa data showed. They are are expected to stay above 400pm during May, when levels peak because of CO2 being taken up by plants growing in the northern hemisphere.

Noaa used air samples taken from 40 sites worldwide, and analysed them at its centre in Boulder, Colorado. The agency added that the average growth rate in concentrations was 2.25ppm per year from 2012-2014, the highest ever recorded for three consecutive years. More

 

©

Signs of stress must not be ignored, IEA warns in its new World Energy Outlook

Energy sector must tackle longer-term pressure points before they reach breaking point

Events of the last year have increased many of the long-term uncertainties facing the global energy sector, says the International Energy Agency’s (IEA) World Energy Outlook 2014 (WEO-2014). It warns against the risk that current events distract decision makers from recognising and tackling the longer-term signs of stress that are emerging in the energy system.

In the central scenario of WEO-2014, world primary energy demand is 37% higher in 2040, putting more pressure on the global energy system. But this pressure would be even greater if not for efficiency measures that play a vital role in holding back global demand growth. The scenario shows that world demand for two out of the three fossil fuels – coal and oil – essentially reaches a plateau by 2040, although, for both fuels, this global outcome is a result of very different trends across countries. At the same time, renewable energy technologies gain ground rapidly, helped by falling costs and subsidies (estimated at $120 billion in 2013). By 2040, world energy supply is divided into four almost equal parts: low-carbon sources (nuclear and renewables), oil, natural gas and coal.

In an in-depth focus on nuclear power, WEO-2014 sees installed capacity grow by 60% to 2040 in the central scenario, with the increase concentrated heavily in just four countries (China, India, Korea and Russia). Despite this, the share of nuclear power in the global power mix remains well below its historic peak. Nuclear power plays an important strategic role in enhancing energy security for some countries. It also avoids almost four years’ worth of global energy-related carbon-dioxide (CO2) emissions by 2040. However, nuclear power faces major challenges in competitive markets where there are significant market and regulatory risks, and public acceptance remains a critical issue worldwide. Many countries must also make important decisions regarding the almost 200 nuclear reactors due to be retired by 2040, and how to manage the growing volumes of spent nuclear fuel in the absence of permanent disposal facilities.

“As our global energy system grows and transforms, signs of stress continue to emerge,” said IEA Executive Director Maria van der Hoeven. “But renewables are expected to go from strength to strength, and it is incredible that we can now see a point where they become the world’s number one source of electricity generation.”

The report sees a positive outlook for renewables, as they are expected to account for nearly half of the global increase in power generation to 2040, and overtake coal as the leading source of electricity. Wind power accounts for the largest share of growth in renewables-based generation, followed by hydropower and solar technologies. However, as the share of wind and solar PV in the world’s power mix quadruples, their integration becomes more challenging both from a technical and market perspective.

World oil supply rises to 104 million barrels per day (mb/d) in 2040, but hinges critically on investments in the Middle East. As tight oil output in the United States levels off, and non-OPEC supply falls back in the 2020s, the Middle East becomes the major source of supply growth. Growth in world oil demand slows to a near halt by 2040: demand in many of today’s largest consumers either already being in long-term decline by 2040 (the United States, European Union and Japan) or having essentially reached a plateau (China, Russia and Brazil). China overtakes the United States as the largest oil consumer around 2030 but, as its demand growth slows, India emerges as a key driver of growth, as do sub-Saharan Africa, the Middle East and Southeast Asia.

“A well-supplied oil market in the short-term should not disguise the challenges that lie ahead, as the world is set to rely more heavily on a relatively small number of producing countries,” said IEA Chief Economist Fatih Birol. “The apparent breathing space provided by rising output in the Americas over the next decade provides little reassurance, given the long lead times of new upstream projects.”

Demand for gas is more than 50% higher in 2040, and it is the only fossil fuel still growing significantly at that time. The United States remains the largest global gas producer, although production levels off in the late-2030s as shale gas output starts to recede. East Africa emerges alongside Qatar, Australia, North America and others as an important source of liquefied natural gas (LNG), which is an increasingly important tool for gas security. A key uncertainty for gas outside of North America is whether it can be made available at prices that are low enough to be attractive for consumers and yet high enough to incentivise large investments in supply.

While coal is abundant and its supply relatively secure, its future use is constrained by measures to improve efficiency, tackle local pollution and reduce CO2 emissions. Coal demand is 15% higher in 2040 but growth slows to a near halt in the 2020s. Regional trends vary, with demand reaching a peak in China, dropping by one-third in the United States, but continuing to grow in India.

The global energy system continues to face a major energy poverty crisis. In sub-Saharan Africa (the regional focus of WEO-2014), two out of every three people do not have access to electricity, and this is acting as a severe constraint on economic and social development. Meanwhile, costly fossil-fuel consumption subsidies (estimated at $550 billion in 2013) are often intended to help increase energy access, but fail to help those that need it most and discourage investment in efficiency and renewables.

A critical “sign of stress” is the failure to transform the energy system quickly enough to stem the rise in energy-related CO2 emissions (which grow by one-fifth to 2040) and put the world on a path consistent with a long-term global temperature increase of 2°C. In the central scenario, the entire carbon budget allowed under a 2°C climate trajectory is consumed by 2040, highlighting the need for a comprehensive and ambitious agreement at the COP21 meeting in Paris in 2015.

The World Energy Outlook is for sale at the IEA bookshop. Journalists who would like more information should contact ieapressoffice@iea.org.

Download the following resources:

• The WEO-2014 executive summary
• IEA Executive Director Maria van der Hoeven and Chief Economist Fatih Birol's presentation

About the IEA

The International Energy Agency is an autonomous organisation that works to ensure reliable, affordable and clean energy for its 29 member countries and beyond. Founded in response to the 1973/4 oil crisis, the IEA’s initial role was to help countries co-ordinate a collective response to major disruptions in oil supply. While this remains a key aspect of its work, the IEA has evolved and expanded. It is at the heart of global dialogue on energy, providing authoritative research, statistics, analysis and recommendations.

Alternative Download

 

© 2014

How will geo-political unrest in the Middle East affect Cayman's Energy Security?

Will the battle for Iraq become Saudi war on Iran?

Be careful what you wish for could have been, and perhaps should have been, Washington’s advice to Saudi Arabia and other Gulf states which have been supporting Sunni jihadists against Bashar al-Assad’s regime in Damascus.

The warning is even more appropriate today as the bloodthirsty fighters of the Islamic State of Iraq and al-Sham (ISIS) sweep through northwest Iraq, prompting hundreds of thousands of their Sunni coreligionists to flee and creating panic in Iraq’s Shiite heartland around Baghdad, whose population senses, correctly, that it will be shown no mercy if the ISIS motorcades are not stopped.

The outbreak of civil war in Iraq has oil traders nervous. Crude oil trading on the NYMEX Thursday gained more than $2 per barrel and has so far continued its climb Friday morning, going as high as $107.68 for WTI and Brent Crude to $113.02.

Such a setback for Iraqi Prime Minister Nouri al-Maliki has been the dream of Saudi Arabia’s King Abdullah for years. He has regarded Maliki as little more than an Iranian stooge, refusing to send an ambassador to Baghdad and instead encouraging his fellow rulers of the Gulf Cooperation Council (GCC) — Kuwait, Bahrain, Qatar, the United Arab Emirates, and Oman — to take a similar standoff-ish approach. Although vulnerable to al Qaeda-types at home, these countries (particularly Kuwait and Qatar) have often turned a blind eye to their citizens funding radical groups like Jabhat al-Nusra, one of the most active Islamist groups opposed to Bashar al-Assad in Syria.

Iran’s President Hassan Rouhani commented on June 12 on the latest crisis in Iraq, making it clear that Iran will intervene at the appropriate time to combat terror. According to a transcript of the speech released by the Islamic Republic News Agency, he said, "The Islamic Republic of Iran will not tolerate this violence and we will not tolerate this terror and as we stated at the UN, we will fight and combat violence, extremism and terrorism in the region and the world."

Currently on vacation in Morocco, King Abdullah has so far been silent on these developments. At 90-plus years old, he has shown no wish to join the Twitter generation, but the developments on the ground could well prompt him to cut short his stay and return home. He has no doubt realized that — with his policy of delivering a strategic setback to Iran by orchestrating the overthrow of Bashar al-Assad in Damascus showing little sign of any imminent success — events in Iraq offer a new opportunity.

This perspective may well confuse many observers. In recent weeks, there has been a flurry of reports of an emerging — albeit reluctant – diplomatic rapprochement between the Saudi-led GCC and Iran, bolstered by the apparently drunken visit to Tehran by the emir of Kuwait, and visits by trade delegations and commerce ministers in one direction or the other. This is despite evidence supporting the contrary view, including Saudi Arabia’s first public display of Chinese missiles capable of hitting Tehran and the UAE’s announcement of the introduction of military conscription for the country’s youth.

The merit, if such a word can be used, of the carnage in Iraq is that at least it offers clarity. There are tribal overlays and rival national identities at play, but the dominant tension is the religious difference between majority Sunni and minority Shiite Islam. This region-wide phenomenon is taken to extremes by the likes of ISIS, which also likely sees its action in Iraq as countering Maliki’s support for Assad.

ISIS is a ruthless killing machine, taking Sunni contempt for Shiites to its logical, and bloody, extreme. The Saudi monarch may be more careful to avoid direct religious insults than many other of his brethren, but contempt for Shiites no doubt underpinned his Wikileaked comment about "cutting off the head of the snake," meaning the clerical regime in Tehran. (Prejudice is an equal opportunity avocation in the Middle East: Iraqi government officials have been known to ask Iraqis whether they are Sunni or Shiite before deciding how to treat them.)

Despite the attempts of many, especially in Washington, to write him off, King Abdullah remains feisty, though helped occasionally by gasps of oxygen — as when President Barack Obama met him in March and photos emerged of breathing tubes inserted in his nostrils. When Sheikh Mohammed bin Zayed, the crown prince of Abu Dhabi — and, after his elder brother’s recent stroke, the effective ruler of the UAE — visited King Abdullah on June 4, the Saudi monarch was shown gesticulating with both hands. The subject under discussion was not revealed, but since Zayed was on his way to Cairo it was probably the election success of Egypt’s new president, Abdel Fattah el-Sisi, considered a stabilizing force by Riyadh and Abu Dhabi. Of course, Sisi gets extra points for being anti-Muslim Brotherhood, a group whose Islamist credentials are at odds with the inherited privileges of Arab monarchies. For the moment, Abdullah, Zayed, and Sisi are the three main leaders of the Arab world. Indeed, the future path of the Arab countries could well depend on these men (and whomever succeeds King Abdullah).

For those confused by the divisions in the Arab world and who find the metric of "the enemy of my enemy is my friend" to be of limited utility, it is important to note that the Sunni/Shiite divide coincides, at least approximately, with the division between the Arab and Persian worlds. In geopolitical terms, Iraq is at the nexus of these worlds — majority Shiite but ethnically Arab. There is an additional and often confusing dimension, although one that’s historically central to Saudi policy: A willingness to support radical Sunnis abroad while containing their activities at home. Hence Riyadh’s arms-length support for Osama bin Laden when he was leading jihadists in Soviet-controlled Afghanistan, and tolerance for jihadists in Chechnya, Bosnia, and Syria. More

One of the reasons that I have been lobbying and submitting reports on the need for an energy policy and the need for alternative energy to the Cayman Islands Government for the last seven years is because of the possibility of geo-political instability triggering conflict in the Middle East.

This may have come to pass. As you will have read above the insurgency has moved out of Syria and into Iraq. Civil war appears to have broken out, with Iraq's most senior Shia cleric has issued a call to arms after Sunni-led insurgents seized more towns. The call by a representative of Grand Ayatollah Ali al-Sistani came as the militants widened their grip in the north and east, having seized Mosul and Tikrit and threatened to march south, towards Baghdad.

The question is whether Saudi Arabia will offer help to the ISIS insurgents. Currently on vacation in Morocco, King Abdullah has so far been silent on these developments, but the developments on the ground could well prompt him to cut short his stay and return home. The Washington Institute for Near East Policy asserted that the Saudi military parade on April 29 marked a message to both Iran and the United States. Institute fellow Simon Henderson said this marked the first time Riyad displayed its Chinese-origin CSS-2 ballistic missile, designed to contain a nuclear warhead. King Abdullah has no doubt realized that — with his policy of delivering a strategic setback to Iran by orchestrating the overthrow of Bashar al-Assad in Damascus showing little sign of any imminent success — events in Iraq offer a new opportunity. Saudi Arabia's defense budget according to Deloitt, stands at $16 billion dollars.

Iran’s President Hassan Rouhani commented on June 12 on the latest crisis in Iraq, making it clear that Iran will intervene at the appropriate time to combat terror. According to a transcript of the speech released by the Islamic Republic News Agency, he said, "The Islamic Republic of Iran will not tolerate this violence and we will not tolerate this terror and as we stated at the UN, we will fight and combat violence, extremism and terrorism in the region and the world."

Given that Iraq is OPEC's second largest producer and that Brent Crude is already at a nine month high, the possibility is that oil prices could rapidly escalate to $150 per barrel is high.

What effect would this have on the Cayman Islands you may ask. If we have civil war in Iraq, which already appears to be the case, and if the ISIS takes Baghdad and continues south to the oil rich areas we could see $150 per barrel oil. However, if conflict spreads further afield in the region, which conceivably could see the Straights of Hormus closed, we could see oil at $300 per barrel. Editor.

 

 

© 2014

Solar Resource Fundamentals

Figure 1: Comparing finite and renewable planetary energy reserves (Terawatt-years).
Total recoverable reserves are shown for the finite resources. Yearly potential is
shown the environmental for the renewables (source: Perez & Perez, 2009a)

We have, on this planet, vast renewable energy potential: First and foremost, the solar energy resource is very large (Perez et al., 2009a). Figure 1 compares the current annual energy consumption of the world to (1) the known planetary reserves of the finite fossil and nuclear resources, and (2) to the yearly potential of the renewable alternatives. The volume of each sphere represents the total amount of energy recoverable from the finite reserves and the annual potential of renewable sources.

While finite fossil and nuclear resources are very large, particularly coal, they are not infinite and would last at most a few generations. More

 

© 2014

Europe 24 Air Traffic

Europe 24 from NATS on Vimeo.

This data visualization of Air Traffic in Europe was created from real flight data. It shows the air traffic which flies on a typical summer day and highlights the intensity of the operation in Europe - an operation which runs 24x7x365.

NATS and the UK are at the heart of the operation. With Heathrow as the busiest international airport in Europe, and Gatwick as the busiest single runway airport in the world, the UK plays a key role in ensuring air traffic under our control in European airspace is as safe and efficient as it can be.

The question and the elephant in the skies is of course how much fossil fuel is burned and converted into carbon dioxide by aviation globally on a daily basis? For those of us that live on small low lying islands (SIDS) the outcome will be disasterous as our homes will eventually be submerged by rising sea level. Editor

© 2014

Small islands push for new energy

Most islands are well endowed with one or more renewable energy source — rivers, waterfalls, wind, sunshine, biomass, wave power, geothermal deposits — yet virtually all remain heavily or entirely reliant on imported fossil fuels to produce electricity and power transport.

With rising oil prices, fuel import bills now represent up to 20 percent of annual imports of 34 of the 38 small island developing states (SIDS), between 5 percent to 20 percent of their Gross Domestic Product — and even up to 15 percent of the total import bills of many of the European Union’s 286 islands.

Action advocated under “The Malta Communiqué On Accelerating Renewable Energy Uptake For Islands” adopted by a 50-nation two-day conference that ended here last week will hopefully slash, in some cases eliminate, reliance on fossil fuels and related pollution, while increasing energy security, employment as well as economic and social wellbeing.

“The Renewables and Islands Global Summit” in Malta was co-hosted by the 100-nation International Renewable Energy Agency (IRENA) based in Abu Dhabi and by the government of Malta — a 316 sq km Mediterranean island republic of 410,000 inhabitants, and EU’s smallest member state.

The Malta Communiqué On Accelerating Renewable Energy Uptake For Islands will hopefully help slash or eliminate reliance on fossil fuels, while increasing energy security, employment as well as economic and social wellbeing.

The meeting represents a key milestone in IRENA’s initiative on renewables and islands launched by its governing council last January, as well as a follow-up to the Rio+20 conference in June and the “Achieving Sustainable Energy for All in Small Island Developing States” ministerial meeting in Barbados in May.

The communiqué invites IRENA to establish a global renewable energy islands network (GREIN) as a platform for sharing knowledge, best practice, challenges and lessons learnt while seeking innovative solutions.

GREIN will also help assess country potential, build capacity, formulate business cases for renewables deployment involving the private sector and civil society while identifying available finance as well as new ideas for innovative financing mechanisms.

In addition, the network will develop methodologies for integrating renewables into sustainable tourism, water management, transport, and other industries and services.

IRENA’s Kenyan director-general Adnan Amin told the 120 delegates that “we have confirmed the enormous potential for renewables in small island developing states as well as for developed island countries, not to mention coastal countries with remote, energy-deprived islands of their own. Ambitious policy targets appear increasingly attainable because of great strides forward in technology and cost-effectiveness.

“We are laying the groundwork for a business council to bring investors — from major energy companies to innovative SMEs (small- and medium-sized enterprises) and also financial institutions — into the discussion,” Amin added. “Academics and NGOs can also contribute to the search for practical solutions. Developed island states can do much by sharing their experience with small-island developing states that face broadly similar challenges.”

Representatives (including 15 ministers) from 26 developing Pacific, Caribbean and African developing island nations and from coastal developing states with islands reported a wide range of renewables deployment, from detailed long-term plans and ongoing activities to reach up to 100 percent renewables, to admissions of very low deployment and no firm goals or plans yet. More

 

Apply for a 2013 Ashden Award

Apply for a 2013 Ashden Award

Are you breaking new ground in increasing access to sustainable energy, saving energy or generating renewable forms of energy supply? Are you encouraging low-carbon living or more sustainable travel? If so, we want to hear from you!

A significant prize - and much more

Next June, up to 13 winners will be presented with a cash prize of £5,000 to £40,000 at a prestigious ceremony in London. But winning an Ashden Award is about more than the prize money. If you are successful we’ll also support you to develop your work further, help you build your profile and gain access to new networks.

What are we looking for?

For our UK and International Awards we are looking for sustainable energy pioneers that are making progress in transforming people's lives through sustainable energy, saving energy, generating renewable energy or promoting behaviour change.

Applications for our School Awards must be able to demonstrate success in making their buildings and grounds more sustainable as well as integrating sustainability into their culture and curriculum.

For our Eurostar Ashden Awards for Sustainable Travel we are looking for schemes that are encouraging more sustainable forms of travel in Belgium, France or the UK.

Follow one of the links below to find out more about the eligibility criteria for each award and how to apply.

> UK Ashden Awards

> International Ashden Awards

> Eurostar Ashden Awards for Sustainable Travel

> Ashden School Awards

> Small Island Developing States Awards

 

Caribbean lacks resources tp combat oil spills, warns Jamaica

The Caribbean region including Jamaica and other Small Island Developing States lacks the resources to combat a major oil spill, delegates to a regional convention on oil spill prevention and response have been warned.

Opening the convention to discuss oil spill prevention, preparedness and response in the Gulf of Mexico, keynote speaker Christopher Cargill, Chairman of the Petroleum Corporation of Jamaica, said Jamaica and other islands in the region do not have access to vast amounts of resources to combat major oil spills of the magnitude of the BP Deepwater Horizon incident – which occurred two years ago this month in the Gulf of Mexico.

He told delegates: “We understand that the BP Deepwater Horizon incident involved 47,000 persons, 600 vessels and 120 aircraft and the responders had access to a Spill Liability Trust Fund.

The development of a mechanism for cooperation is therefore a critical part of the preparedness in the region as Jamaica and other small states will have to rely heavily on their neighbours to the north for assistance in dealing with such events. “

The objective of last week’s convention, held in Kingston, Jamaica from April 11-13th, was to further regional preparedness and cooperation to oversee the offshore oil exploration and exploitation industry and to improve oil spill response preparedness and capabilities.

This was third such forum and aimed to complete a Caribbean Multinational Authorities Matrix to aid regional plans towards the offshore oil exploration industry. The previous discussions looked at the legal and policy frame work for drilling operations and issues related to preparedness and response to pollution incidents arising from oil and gas exploration and exploitation.

According to Bertrand Smith, Director of Legal Affairs at the Maritime Authority of Jamaica (MAJ): “This meeting was important to Jamaica as we ratified the IMO Oil Pollution and Response Convention (OPRC) two years ago and are currently incorporating its provisions into national legislation to deal with discharges from oil and gas platforms, among other things.”

The convention was sponsored by the Maritime Authority of Jamaica and the Petroleum Corporation of Jamaica under the auspices of the International Maritime Organization (IMO), United Nations Environment Programme (UNEP) and the Regional Activity Centre/Regional Marine Pollution Emergency Information and Training Centre (RAC/REMPEITC).

In attendance were US Ambassador, Ms. Pamela Bridgewater Ambassador Extraordinary and Plenipotentiary, Embassy of the United States of America, His Excellency, Mr. Yuri Gala Lopez, Ambassador, Embassy of the Republic of Cuba, and Mr. Raul Mendoza-Gallo, Head of Consular, Commercial and Cooperation Affairs, Embassy of Mexico. Attendees also included representatives from the US State Department and other regulators from the USA as well as delegates from Jamaica, Cuba, Mexico, The Bahamas and Guyana and representatives from RAC/RECPEITC-Caribe. More

 

Choking on Rising Fuel Costs for Electricity, Barbados Launches Multiple Source-Multiple Use Renewable Energy Plan

Another sign of the rapidly changing (for the better) energy landscape: the southeastern Caribbean island nation of Barbados is taking an integrated, multiple source-multiple use approach as it launches a program to shift away from its almost total reliance on imported fossil fuel imports to clean, homegrown renewable sources for electricity generation and other uses.

The Barbadian cabinet on April 5 approved the US$188.5 million Mangrove Pond Green Energy Complex, according to a Caribbean Journal report. The complex is to include solar power and wind power facilities, a new Mechanical Maintenance Facility, a Waste-to-Energy Facility, and a Landfill Gas Management System.

In total, the Barbadian government expects the Mangrove Pond Green Energy Complex to produce more than 25 MW of clean electrical power that can be sold on to the island nation’s grid, reducing dependence on fossil fuels and helping reduce greenhouse gas emissions.

Barbados relies almost entirely (96%) on fuel oil and diesel to generate electricity; 90% of it imported. That’s comparable to what the island nation spends on education. Barbados’s bill for oil imports in 2009 and 2010 totaled some $230 million, which amounts to nearly 6% of national GDP, about what it spends on education, Senator Darcy Boyce was quoted as saying in a Barbados Today article.

Barbados’s Sustainable Energy Framework

The government intends to reduce Barbados’s oil import bill significantly, Boyce, who heads the Prime Minister’s Energy Office, told attendees gathered for the launch of the Energy Efficiency Awareness Programme of the Sustainable Energy Framework for Barbados Pilot Project.

The aim of the Sustainable Energy Framework for Barbados Pilot Project is to reduce fossil fuel use by some 30% by bringing renewable energy resources online, and to reduce electricity demand by over 21% by implementing energy efficiency measures and technologies over a 20-year period. TheInter-American Development Bank (IADB) is contributing $1 million in investment grants and loans through the World Bank Group’s Global Environment Facility (GEF).

Rising global market prices for crude oil and derivatives have been rising consistently for several years, putting greater financial pressure on local businesses and residents alike. The direct effect rising fuel costs have on ratepayers’ pocketbooks and businesses’ operating budgets is compounded by the indirect effects, as they flow through into prices of all imports and are passed on to consumers. More