September 14, 2009

With the prevailing emphasis on reducing carbon emissions, natural gas producers could become more instrumental in developing national energy policy. But the industry must still demonstrate that it can safely produce and deliver its product.

For starters, natural gas developers have been fighting for increased access to natural gas deposits that have long been off-limits to production. Getting newfound rights remains tough and especially in today's economy, particularly as the nation's natural gas storage limits are getting maxed out and the product is literally getting dumped onto markets at the cheapest prices in a decade.

Beyond that, the coal industry has a ton of political power, as evidenced by the waivers -- and federal dollars -- it received in the recently passed House energy bill. In the area of power plant generation, coal is still king and natural gas must compete with it.

August 26, 2009

If folks thought this recession has been a doozy, they may want to consider the one that could hit in a decade as the demand for oil permanently exceeds production.

The International Energy Agency says in a report that the 800 biggest fields around the world that comprise three-quarters of all reserves have already hit peak. Moreover, the pace of the decline in production is about twice that of what it was in 2007. That means that the so-called peak oil theory whereby global oil demand meets declining production is 10 years away, all according to the agency's chief economist Fatih Birol.

August 21, 2009

When it comes to a smarter grid, utilities have been learning that success is about more than just technology. It's about people -- people inside the utility and people outside.

That is, in order for a project to succeed, it is important to have all of the internal departments on the same page and working together. These include administration, operations, engineering, IT and customer service. Similarly, understanding and cooperation are vital with external entities, such as municipalities, legislatures, regulators and consumer groups.

August 07, 2009

Across the country, energy providers are prepping for dramatic changes to their distribution networks. Information will automatically be relayed to back office systems, so that power companies can monitor demand and avoid buying from the spot market.

In addition, customers will be able to program their air conditioning systems to raise temperatures during times when energy pricing is high. And they may even be able to communicate with everyday consumer devices. That is the good news.

August 05, 2009

Big Oil's reluctance to invest more of its vast resources into the green space is a function of its vision. It is seeking to meet global oil demand while at the same time protecting its shareholders by focusing on the development of fossil fuels.

Any evolution in that thinking will only occur if there is a fundamental change in global carbon policies and particularly those of the United States. Even though the Obama administration is aggressively pushing for greater fuel diversity, the oil industry is sticking closely to its core competencies and in some cases, reducing its investment in wind and solar power.