Saturday, January 30, 2016

Enquiring Minds Want To Know -- January 30, 2016

Updates

January 31, 2016: update on new energy plant costs in the US:
  • Off-shore wind: $7.5 million /MW (intermittent; requires fossil fuel back-up)
  • Solar: $3 million / MW (intermittent; requires fossil fuel back-up)
  • On-Shore Wind: $2.5 million / MW (intermittent; requires fossil fuel back-up)
  • Natural gas: $865,000 / MW
January 31, 2016: Snowstorm Jonas, which was predicted to be one of the biggest snowstorms ever in the US, pretty much lived up to the hype. What I find interesting is how the story -- not necessarily the storm -- just ended. This was the storm that was supposed to wreak as much havoc on New Jersey -- you know, the rising sea levels, the ocean surge, the deluge -- as Hurricane Sandy in 2012. Jonas hit on Friday, and by Sunday night, maybe even by Sunday afternoon, the story was over. Except for an occasional story about Brooklyn folks reporting that their streets have not yet been plowed, there really wasn't much reported. Yes, it's a slow news day.

January 31, 2016: this link was sent to me sometime ago, but I did not get to it until today -- it appears another great theory for energy production is not ready for prime time. This time it is energy provided by the oceans' tidal waves. Northern Ireland is calling it quits
A tidal energy turbine installed in Strangford Lough, County Down, is to be removed.
The SeaGen turbine was lowered into place in 2008 and generates electricity from from tidal currents.
Two horizontal axis turbines are anchored to the seabed and are driven by the powerful currents resulting from the tide moving in and out.
Its owners Atlantis Resources said it will be decommissioned later this year. The company said it had been "an essential research and design platform".
January 30, 2016: from a reader -- Just had to share this with you ...
  • state-of-the-art combined cycle gas plant to be built in Burrville, R.I.
  • 900 MW plant costing $700 million
  • Deepwater Wind offshore wind turbines also being built off Block Island, R.I.
  • 30 MW capacity (on windy days, I suppose) costing $225 million
  • Activists are livid over the gas plant
I've confirmed the data points -- later I will supply the links. If I remember. A huge thanks for the reader who sent me this data. The reason this is so important, it confirms the current cost for a new natural gas plant (about $750K/MW) vs off-shore wind (about $7.5 million, per MW). 

And, no, wind energy is not free once the wind turbines are on-line. Wind turbines need to be backed up by continuous energy sources supplies by fossil fuels. Say, natural gas. 

Again, unfortunately, states are not eligible for the Geico Rock Award.

Cost / MW:
  • Natural gas plant: $800,000 MW
  • Offshore wind: a whopping $7.5 million / MW
I have no dog in this fight; I don't live in -- nor do I have plans to ever live in -- Rhode Island. The folks who live in Rhode Island are fairly well off, with a median annual income slightly less than North Dakota. Paying $7.5 million/MW shouldn't be an issue for them. LOL.

Median annual income by state:
  • Rhode Island: $59,000
  • North Dakota: $61,000
  • Mississippi: $36,000
Wiki also had a list as of 2014.

Activists must have money to burn. Speaking of which, I wonder if it would be cheaper to burn US one-dollar bills to heat a home rather than paying $7.5 million/MW, off-shore wind? Just curious.
 
Original Post
 
According to the EIA, what is the residential rate for electricity, kilowatt-hour, in each of the 57 states?

Link here. North Dakota moves up a notch to #2 in the nation, ahead of the hydroelectric states of Washington and Idaho. It's possible that southwestern North Dakota leads the nation, even beating out Louisiana, at #1.

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Pretty Cool

On a fairly generic google search, "the million dollar way blog" pops up as the #2 hit out of 162,000 hits.


On another note, among Bakken blogs this site is still #2.  Google "Bakken blog."

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Putting Things Into Perspective

Do you remember the 29 deaths-- or whatever the number was -- blamed on winter storm Jonas, affecting 85 million Americans from Kentucky to New York up to New England? Hold that thought: 29 deaths.

This just in from Iran:
30 Jan 2016 – The vice president of the Red Crescent society said that of the 9,515 injured in the country during the last week, 7,450 of the injuries were related to snow. This included 283 road accidents due to snow and blizzard.
Meanwhile, Mexico has declared a state of emergency in 23 states due to severe cold (same link). More on Mexico here, February 3, 2016:
The situation is particularly worrying in the north, where the thermometer reached the -17 ° C mark. In Mexico City it snowed in January, a phenomenon not seen in the capital since 1967.

31 Jan 2016 – While the storm Jonah was unleashed on the United States, in Mexico temperatures dropped to record lows.
The snow and cold forced the government to declare a state of emergency is declared in 24 of the 32 states in the country.
The National Meteorological System has warned that the worst of winter may be yet to come and that temperatures will fall in the north, northeast, east and center of Mexico.

Week 4: January 24, 2016 -- January 30, 2016

The big story this past week that turned into a non-story surrounded rumors that Russia and Saudi Arabia -- "lifelong" enemies -- were discussing crude oil quotas in an attempt to raise the price of oil. By the end of the week, nothing more was heard.

The other big story, of course, which was reported almost nowhere was the fact that Kuwait reported snow for the first time "ever."
Temperatures in Kuwait soar up to 50C in the summer months and even in winter 20C is the norm. However, on Thursday the temperature was as low as 3C.
There is no record of snow having fallen in Kuwait before, although the emirate has experienced hail and frost in the past when temperatures have fallen in the winter.
A Kuwaiti told MEE that Thursday's snow was a first for the country.
"I asked my grandfather, he said there has never been snow before," they said, preferring to remain anonymous. "Everyone is surprised."
The Kuwaiti who preferred to stay anonymous no doubt heard that some warmists advocate beheading those who do not believe in global warming. Or at least "arresting them." By the way, this past week, the entire world was under a "snow watch."

Perhaps the "best" story this past month was learning that it is hard to measure snowfall in a blizzard -- at least in Washington, DC.  Or perhaps it was this one: one dead duck in a Bakken waste pit and the EPA is on the operator like flies on poop, but lead-contaminated water in Flint, Michigan -- and they know about it for months.

Another non-Bakken story: when one absolutely, positively needs reliable electricity, one goes with fossil fuel.

Operations
North Dakota ends week with new post-boom low in number of active rigs: 45
CLR proposes 22 wells on a new 2560-acre unit in Elm Creek oil field
Highlights of the February, 2016, NDIC, hearing dockets agenda
Bentek predicts minimal decline in North Dakota crude oil production for December, month-over-month
Halcon reports a huge Bakken well 
Note number of DUCs in first 100 North Dakota oil permits in 2015
CLR CAPEX for 2016
Oasis CAPEX for 2016

Pipelines
Phillips 66 may consider bigger stake in Bakken pipeline

Refinery
MDU refinery update 
Diesel fuel is really, really inexpensive 

Bakken economy
Legacy fund update: $3.4 billion (with a "B") through December, 2015

Miscellaneous
US crude oil stocks at highest inventory level for month of December since the Great Depression
With drop in gasoline prices, vehicle fuel economy has dropped for nine consecutive months, year-over-year
DOT estimates Americans driving record amount of miles
Public transportation ridership dropping in southern California
Public transportation (light rail, bus) ridership dropping in Arizona 
Minnesota regulators approve $30 million solar project for emergency power
Electricity down to 3.5 cents/kw-hour
Oasis to issue significantly more shares
Third of three US crude oil shipments reached European destinations
Brent crude oil futures to rollover/expire well in advance of WTI crude oil futures
Sanctions lifted: Iranian crude oil exports likely to be a drop in the bucket

Phillips 66 May Consider Bigger Stake In Bakken Pipeline -- Reuters -- January 30, 2016

The Dickinson Press is reporting:
Phillips 66 may consider increasing its 25 percent stake in Energy Transfer Partners' pipeline project to move North Dakota Bakken oil to Illinois and Texas, but likes its current commitment as is, President Tim Taylor told analysts on Friday.
This was my last entry regarding this pipeline:
January 20, 2016: North Dakota approves Dakota Access Pipeline; only Iowa is yet to approve; company expects Iowa to approve "next month." I'll believe it when I see it.
And that link led to this:
Regulators in North Dakota, South Dakota, and Illinois have already approved permits. Iowa still remains, though the company says it expects that approval to come next month.
The U.S. Army Corps of Engineers also must approve the pipeline because it would cross beneath the Missouri River twice in North Dakota, near Williston and Mandan.
So Nebraska Iowa must still approve the pipeline as well as President Obama. I'm not holding my breath when the promoters say they hope to have this pipeline completed by the end of 2016.

A "snapshot" of this pipeline can be found here