Chrysler’s plan to beat the Chevy Volt

http://money.cnn.com

NEW YORK (CNNMoney.com) — Chrysler is pinning a huge part of its future on a plan to produce a full line of electric vehicles, at a reasonable cost to both the carmaker and the consumer.

While General Motors is moving ahead with its Volt electric midsized car, Chrysler says it already has plans in place, not just for electric cars, but also for minivans and even off-road vehicles.

Chrysler’s strategy hinges on keeping it cheap. The carmaker will dispense with flashy designs in exchange for low cost and flexibility. And it plans to pile on more electric-powered models quickly once the program launches in 2010.

“We aren’t a one-electric-vehicle company,” Lou Rhodes, Chrysler’s vice president for advanced vehicle engineering, told CNNMoney in an exclusive interview.

Rhodes is also president of Chrysler’s ENVI, a separate business division tasked with bringing new electric vehicles to market.

Instead of making one, or just a few, electric-only models, Chrysler will sell the same models in both gasoline-powered and electric-powered versions. This low-cost, high-variety electric-vehicle strategy will play a big part in any comeback plan Chrysler may present in hopes of getting government rescue funding.

Chrysler’s strategy substantially cuts costs, Rhodes said, and it reduces the risk of entering uncharted market territory. That will translate into lower costs and more choices for customers.

If gas prices stay low, Chrysler factories will produce more gasoline powered models. If gas prices rise, factories can start rapidly turning out more electric cars since the models are essentially the same.

Chrysler’s first electric vehicles will be based on current vehicles. The carmaker hasn’t yet announced what the first model will be but, based on prototypes Chrysler revealed in September, it will likely be a minivan, a Jeep Wrangler 4X4 or a 2-seat sports car built in a Lotus body.

At least some of Chrysler’s products will be extended-range electric vehicles, like GM’s Volt. Because the car’s body will not have been designed around optimal weight and aerodynamics, the Chrysler vehicle will need a more powerful electric drive system to provide performance similar to the Volt’s. For instance, Chrysler promises the same 40-mile all-electric plug-in range as the Volt. (After that, a small gasoline engine will start up to produce more electricity as the car drives.) But the heavier Jeep prototype has a 27-kilowatt-hour (KwH) battery back compared to the Volt’s 16 KwH pack.

Round two

Chrysler’s second-generation electric vehicles, which the carmaker plans to start rolling out between 2012 and 2015, will be engineered from the wheels up to use either gasoline or electric power.

No matter which drivetrain the customer chooses, the vehicles will not be compromised, Rhodes insists.

“If you know what you want to achieve up front, you can certainly design that flexibility in up front,” he said.

Electric cars will not have useless transmission tunnels running along the center of the floor, he said. If a rear-wheel-drive gasoline car needs that, a different floor will be used when that version is built.

The electric power systems are also being engineered for maximum flexibility, Rhodes said. Bigger, heavier vehicles take more power to move, whether that power is from gasoline or batteries. For gasoline-powered cars, engineers have to design larger and smaller engines for different uses. A small Jeep Compass, for instance, gets a 2.4-liter 4-cylinder engine while a Jeep Commander SUV can come equipped with a 5.7-liter V8 engine.

But what if going to a larger engine was as simple as just plugging in more cylinders? Chrysler’s electric drivetrains will work something like that. To hold more battery power, larger vehicles will simply get more battery cells. The cells themselves will be exactly the same whether in large or small vehicles. That’s important because batteries are the biggest expense of creating an electric car.

“The real economy is in the cells,” said Rhodes.

Likewise, the electric motor will be the same. It will just be up-sized for bigger jobs.

“All we change is the length of the rotor and the number of windings to span between different power outputs,” Rhodes said.

Even the housing that goes around the motor will be same regardless of the size of the motor . The magnesium housing will be so lightweight that it simply won’t be worth the added cost of creating smaller housings for the downsized motors, Rhodes said.

Electric cars aren’t just a side-show or a public relations move for Chrysler, Rhodes insists, but a major strategic move. Through its GEM (Global Electric Motorcars) subsidiary, Chrysler already claims to be the largest seller of electric vehicles in the U.S. But those are so-called “Neighborhood Electric Vehicles,” ultra-light cars with a top speed limited to 25 miles per hour. Chrysler claims sales of 40,000 GEM cars over the last 10 years. With its new plan, Chrysler plans to produce over 500,000 electric vehicles by 2013.

“This is going to be a big deal for Chrysler,” he said.

original article

http://money.cnn.com/2008/12/15/autos/chrysler_envi/index.htm

December 15th, 2008 | Posted in Alternative Energy, Technology, Transportation, electric cars | Comments Off

Global oil supply will peak in 2020, says energy agency

http://www.guardian.co.uk

Global oil production will peak much earlier than expected amid a collapse in petroleum investment due to the credit crunch, one of the world’s foremost experts has revealed.

Fatih Birol, chief economist to the International Energy Agency, told the Guardian that conventional crude output could plateau in 2020, a development that was “not good news” for a world still heavily dependent on petroleum.

The prediction came as oil companies from Saudi Arabia to Canada cut their capital expenditure on new projects in response to a fall in oil prices, moves that will further reduce supply in future.

Birol’s comments will give more ammunition to those who warn that the British government is dangerously complacent in not trying to wean the country off oil as quickly as possible. Some observers believe that, because the global economy is underpinned by oil, the peaking of supply will cause severe economic, social and political disruption unless prepared for over many years.

John Hemming, chairman of the All Party Parliamentary Group on Peak Oil and Gas, said Birol’s “conversion” was significant. “The penny has finally dropped - geological issues matter as well as political and economic. The IEA - unlike our government - appears to be leaving cloud cuckoo land finally,” he added.

The IEA has never before been specific about the point at which so-called conventional oil would peak. It said last month that total crude output could peak in 2030. Birol’s comments follow other signs that the IEA is rapidly changing its view. In its 2007 World Energy Outlook, the IEA predicted a rate of decline from the world’s existing oil fields at 3.7%, only to admit 12 months later that the speed of the fall was more likely 6.7%.

Jeremy Leggett, chief executive of solar energy company Solarcentury, said Birol’s views underplayed the scale of the problem. “The IEA is very constrained in what it can say - by the demands of its constituent governments - so you have to read between the lines. We believe that peak oil will come about in 2013 at the latest but the real concern from the IEA is the adjustment of production figures,” he said.

The energy agency, which represents most western governments including the UK and US, has been backtracking rapidly on previous positions.

Three years ago the Paris-based organisation still denied there was any fundamental threat to the world’s petroleum economy.

original article

http://www.guardian.co.uk/business/2008/dec/15/global-oil-supply-peak-2020-prediction

December 15th, 2008 | Posted in Economy, Energy, Oil and natural gas, peak oil | Comments Off

Harvesting Electricity From Moving Vehicles

http://hothardware.com

by Daniel A. Begun

Parasitic energy harvesting” might sound like it is part of a Sci-Fi plot where alien beings feed off of the energy emanating from human bodies, but it is actually a means of reclaiming wasted energy. An Israeli company, Innowattech, says that it holds the patents to technologies that can harvest the mechanical energy from vehicles traveling on surfaces such as roadways, railways, and airport runways, and convert that energy to electricity. Not only does Innowattech have the technology, but it wants to implement it into our highway, rail, and airport infrastructures.

The technology “is based on piezoelectric generators; the piezoelectric effect converts mechanical strain into electrical current or voltage.” In other words, when a piezoelectric material is deformed, the energy from the deformation of the material gets converted into electricity. Innowattech has created three different versions of what it calls the Innowattech Piezo Electric Generator (IPEG): a Roadway Generator, a Railroad Generator, and a Runway Generator. Innowattech claims that its IPEGs can “harvest energy from weight, motion, vibration and temperature changes.”

While it might not be noticeable to the casual observer, whenever a vehicle passes over a roadway, the roadway actually deforms somewhat beneath the vehicle. If you have ever had your foot run over by a car, you have experienced a version of this–albeit, likely a painful one. The same thing happens to rail beds and runways when trains and planes pass over them–these surfaces deform slightly as well. Innowattech wants to implant networks of its IPEGs into these surfaces so that vehicles will also deform the piezoelectric generators as well, which in turn would generate electricity. In fact, the heavier a vehicle is and the faster it is moving, the more energy gets transferred to the IPEGs. Innowattech claims that 1km of a railroad can produce up to 150kW of electricity per hour; and 1km of roadway or runway can produce up to 0.5mW (500kW) of electricity per hour. The electricity harvested by the IPEG network could be added to local electrical grids.

The roadway and airport IPEGs can also “record the weight, frequency and speed of passing vehicles as well as the spacing between vehicles in real time.” This can create “smart roads” and airports where the data can be used to help manage traffic and alert drivers and emergency responders.

What makes this such an innovative approach is that it doesn’t force drivers or car manufacturers to have to make any significant changes, such as switching over to electric cars or other fossil fuel alternatives. By the same token, it makes no difference to the IPEGs what is powering the vehicles passing overhead, so as automobile engines continue to evolve over time away from fossil fuels, the IPEGs will continue harvesting their energy. It remains to be seen, however, if this “green“  technology will ever see real-world applications.

original article

http://hothardware.com/News/Harvesting-Electricity-From-Moving-Vehicles/

December 13th, 2008 | Posted in Alternative Energy, Energy, Environment, Technology, Transportation, electric cars | Comments Off

IEA’s Birol Says Drop in Oil Prices May Halt Project Investment

http://bloomberg.com

By Tara Patel

Dec. 10 (Bloomberg) — A further decline in global oil prices may delay or halt investment in exploration and production projects, according to Fatih Birol, chief economist of the International Energy Agency.

“If prices were to go lower, investments could be delayed or canceled and we would pay the cost in the future,” Birol said today at a conference in Paris. “We could get a supply crunch.”

Birol urged OPEC countries, meeting next week in Algeria, “to consider the fragile situation of the global economy today” and noted the need for $80 oil to ensure the viability of “marginal” production such as deep offshore projects.

Members of the Organization of Petroleum Exporting Countries are scheduled to meet Dec. 17 to discuss output quotas in a bid to bolster oil prices, which have slumped almost 70 percent since reaching a record in July.

original article

http://bloomberg.com/apps/news?pid=20602099&sid=aV0wbL7Jbyqo&refer=energy

December 10th, 2008 | Posted in Economy, Energy, Oil and natural gas, peak oil | Comments Off

Electric Cars vs. Oil in Hawaii

http://energyoutlook.blogspot.com

Ever since last week’s announcement of a deal to roll out Project Better Place’s model for recharging electric cars in Hawaii, I’ve been curious about how it would work out, if the supplies of new renewable electricity needed to wean the Islands’ million or so cars and light trucks off of oil were not forthcoming, or at least didn’t materialize as quickly as the company and state hope. If I’ve done my sums right this morning, it appears that electrifying Hawaii’s passenger cars would still save large quantities of oil and reduce greenhouse gas emissions significantly, even if every kilowatt-hour (kWh) to run them was generated from the state’s oil-fired power plants.

Since the late 1990s, I’ve been convinced that in the long run, the majority of cars would be some form of electric vehicle (EV), whether in the form of hybrids, with power generated onboard from engines or fuel cells, or battery EVs tapping external sources of power. The rate at which this transformation takes place, however, remains highly uncertain, with conventional, Prius-type hybrids still accounting for less than 3% of the US car market, and battery EVs other than golf carts as rare as hen’s teeth. I’ve followed the plans of Better Place with great interest, since their mobility-based business model could provide a key ingredient for accelerating the electrification of personal transportation, even while the high cost of batteries makes EVs more expensive to purchase than their gasoline-based competitors.

As Better Place founder Shai Agassi noted in an interview published in Sunday’s Washington Post, Hawaii looks ideally suited to be an early adopter of this technology. With no indigenous production, all of Hawaii’s oil, including that from which its gasoline needs are refined, must be imported. In that context, the benefits of the Better Place plan look obvious, until you realize that powering a million cars on renewable electricity would require on the order of 3 billion kWh of electricity per year, the equivalent output of more than 400 wind turbines of 2.5 MW each. Ignoring issues of transmission and intermittency, that’s about 16 times the state’s currently-installed wind power base. Year-to-date through August, 75% of the state’s electric power was generated from oil, and less than 7% from various renewables. So at least for now, if this model is going to work in Hawaii, it has to make sense assuming that most of the incremental power for electric cars would be generated from oil.

That sounds counter-intuitive, until you consider the relative efficiencies of centralized power generation versus the gasoline engine under the hood of your car, combined with the inherent efficiencies of electric drive. Comparing the fuel consumed by Hawaii’s oil-fired power plants to the power they generated, I found that each gallon of fuel oil yielded roughly 15 kWh of electricity. If the typical electric cars that will be sold in Hawaii travel 3-4 miles per kWh, that equates to an average effective fuel consumption of around 47 miles per gallon, after allowing for 10% transmission losses. That’s 43% lower than the 26.8 mpg of the 2008 model year average for the US new-car fleet, and it would reduce greenhouse gas emissions by roughly the same proportion. Although that’s no better than the fuel economy of a Toyota Prius, that comparison would improve, as renewable power gradually displaced oil-fired power.

So at least from an oil-consumption and importation perspective, this idea appears to make sense in Hawaii. I can’t speak to its economics, or to how practical it is today for regions such as California’s Bay Area, where in recent years increasing numbers of workers have been driving in from communities such as Modesto, Tracy and Stockton–commutes that would have seemed unthinkable 25 years ago–in order to beat the high cost of housing near the coast. I wish Better Place well, and I would certainly appreciate having the choice of an attractive, economical electric car, when it comes time to replace my current sedan in a few years.

original article

http://energyoutlook.blogspot.com/2008/12/electric-cars-vs-oil-in-hawaii.html

December 8th, 2008 | Posted in Energy, Environment, Technology, Transportation, electric cars | Comments Off

10 of the Most Fuel-Efficient Cars in the United States

www.discovery.com

by Alyssa Danigelis

You don’t have to be Leo DiCaprio to own one of the most fuel-efficient vehicles available, although it certainly helps if you want someone hot to ride shotgun. The stodgy auto industry, spurred by high gas prices and consumer demand, is coming around with more hybrid vehicles, smaller models and alternative energy options. Still, “fuel efficiency” stateside is an oxymoron akin to “congressional ethics” and “doing nothing.”

The miles-per-gallon standard for cars in the United States is stuck at 27.5, compared to 43 in Europe and 46 in Japan. And those standards will be laughable in a few years time. Case in point: A British Volkswagen concept car gets 235 miles to the gallon. But that one won’t be available for a couple more years.

“Given everything that’s coming soon, if you can afford to wait, wait,” says Chelsea Sexton, electric vehicle advocate and executive director of Plug In America. (And while you’re waiting check out these 100 tips to save on fuel costs with your current vehicle.)

A plug-in hybrid charges for a few hours from a regular plug, runs solely on electricity for 40 miles or so and then kicks into gas-battery mode after that. Sexton says the full electric charge will cost about 50 cents a day. General Motors is readying both the Saturn Vue and Chevy Volt plug-in hybrids for consumers, while Daimler is working on plug-in Mercedes and Smart cars.

Or, for about $10,000, EPA-certified Hymotion will convert your gas-electric hybrid car into a plug-in. But if you’re looking to buy now, here are some of the most fuel-efficient passenger vehicles on the road in the United States:

10. Toyota Yaris
At 32 miles-per-gallon combined city and highway, this is one of three all-gasoline-powered contenders that made our list. The non-hybrid sedan is on par with some of the green SUVs on this list, but it boasts the weirdest name, apparently being a combination of the Greek goddess of grace “Charis” and the German “ya.’ Hmm. While there are some better-named and better-performing subcompact cars than the Yaris, they’ll cost more to fill up.

9. Hybrid SUV Tie: the Ford Escape, Mercury Mariner and Mazda Tribute
Last year Paris Hilton said she wanted a hybrid Hummer and GM responded, “A vehicle like that does not exist.” Undeterred, Hilton ended up with a shiny new GMC Yukon hybrid that gets around 21 miles per gallon. All three of these hybrid SUVs do much better, getting 32 combined city and highway miles per gallon.

8. MINI Cooper
The MINI is to this list’s collection of vehicles what the iPod is to MP3 players. It comes in a sharp palate of colors, including “British racing green,” “oxygen blue,” and, of course “mellow yellow.” A stylish product of the 1960s, the vehicle has evolved since its Austin Powers beginnings. At a combined 32 MPG for the 2008 six-speed manual transmission model, this little number might get some Yanks to say, “Yeah baby!”

7. Toyota Camry Hybrid
Besides being voted the best new family car last year in its price range by the Automobile Journalists Association of Canada, HybridCars.com called the Camry Hybrid, “relatively attractive and altogether predictable.” And predictable is good, especially when you can predict that the 2009 automatic model will get 34 combined city and highway miles per gallon.

6. Nissan Altima Hybrid
A New York Times reviewer described it thus: “The Altima Hybrid fit me like a pair of Tony Lama Black Label boots, which is to say something akin to house slippers.” Since this hybrid is currently available only in a handful of states on either side of the country, it’s probably harder to get than some Tony Lamas. At a combined MPG of 34, let’s hope Nissan ups production.

5. Smart ForTwo
Available for a few years now in Europe, these itty-bitty cars went on sale in America earlier this year. Here, Smart Cars went from being looked down upon (from Humvee heights) to being looked at in curious awe. Chances are yours isn’t going to get stolen because everyone in the neighborhood will be staring at it. Ideal for gridlocked city-dwellers and cash-strapped college students, this pint-sized vehicle starts around $12,000. It has a combined 36 MPG rating for 2008 models.

4. Honda Civic Hybrid
The non-hybrid version of the Civic replaced quite a few Yuppie-driven Volvos, so it’s no surprise that the hybrid comes in high on the list. With 42 combined city and highway miles per gallon and a $23,000-range price tag, it regularly tops “small affordable car” lists.

3. Toyota Prius
It’s sort of strange to see the Prius in the third slot, but this is perhaps the best known hybrid, as in “Prius Progressives.” But it’s not just the tree-huggers going for this popular ride, former CIA chief James Woolsey told Motor Trend, “I have a bumper sticker on the back of my Prius that reads, ‘Bin Laden hates this car.’” As he would: The 2008 hybrid gets 46 combined city and highway miles per gallon and costs around $24,000. Congrats Toyota — you dominated this list. Now please hurry up and produce an amazing plug-in hybrid.

2. Honda FCX Clarity
Just last month, Japan’s third biggest automaker announced it was ready to lease a few dozen units of its latest hydrogen-electric vehicle. The company claims that the car is two times more energy efficient than a gas-electric hybrid. With a combined city and highway estimate of 72 miles per gallon, it sounds pretty tantalizing. But adoption of these cars will depend on overcoming several obstacles, among them development costs and infrastructure — hydrogen-electric cars require hydrogen fueling stations and so far these are few and far between. If you’re ready to go down that road, though, you can lease one for around $600 per month.

If money is no object, Tesla’s electric Roadster is one sexy and efficient car. The sports car goes zero to 60 miles-per-hour in under four seconds, but costs nearly $100,000. Cha-ching! However, the 2007 model has an EPA rating of 135 miles per gallon equivalent and the 2008s in production are rated 256 MPG. That’s some serious gas savings.

1. Tesla Roadster

If money is no object, Tesla’s electric Roadster is one sexy and efficient car. The sports car goes zero to 60 miles-per-hour in under four seconds, but costs nearly $100,000. Cha-ching! However, the 2007 model has an EPA rating of 135 miles per gallon equivalent and the 2008s in production are rated 256 MPG. That’s some serious gas savings.

original article

http://dsc.discovery.com/technology/tech-10/cars-fuel-efficient-top-10-print.html

December 8th, 2008 | Posted in Technology, Transportation, electric cars | Comments Off

The Peak Oil Crisis: July 2008 – A Month To Remember

www.fcnp.com

by Tom Whipple

There is a growing consensus among those who follow such things, that the new high of world oil production (87.9 million barrels a day) reached last July is likely to go down in history as the all-time peak.

This is by no means a unanimous opinion.

The official government forecasting agencies, the IEA and the EIA, have devised rather bizarre scenarios that would allow oil production to ease higher for another 20 years or so. These organizations, or course, are not free agents both being bound by political strictures rather than a search for truth. While the world’s governments are inching closer to public acknowledgement of peak oil, they have many diverse responsibilities such as maintaining the domestic tranquility, fighting various kinds of wars, and providing some semblance of financial stability. Clearly a sudden admission that world oil production had just entered an irreversible decline would not help with these other responsibilities. Optimists and those unwilling to contemplate the ramifications of rapid change are still maintaining that oil production will grow in some mysterious manner for the foreseeable future.

Most students of the subject at first thought that world oil production was going to peak for geological reasons — the inability to find and produce enough oil to keep our annual consumption of 30 billion barrels increasing. In recent years, “above ground” factors such as wars, nationalistic governments, and failure to invest have become the popular reasons for constraints on increasing world oil production among those who for one reason or another do not like the geologic (running out of reserves) argument.

While all these factors are contributing to the likelihood that from here on out less and less oil will be produced, it seems that the initial decline in production will come because the world economic situation has deteriorated so much that we simply don’t need 87.9 million barrels a day (b/d) of oil anymore.

At the minute, OPEC is scrambling to figure out how to enforce an equitable production cut to drive prices higher again. Current talk is that it will take cuts totaling 3 million b/d or more to balance supply and demand. If reductions on this order actually take place in the near future, then world production which has been declining since July will have started on a downward slope from which it is unlikely to ever recover.

New oil production and refining projects are being cut back right and left due to low prices, lack of demand, and the inability to borrow money. It will take several years for these cutbacks in investment to affect oil production; in the meantime, depletion will take over and cause irreversible declines in oil production in the next five to ten years.

In the three-way struggle among worldwide oil depletion, new oil production projects, and the global recession, we have a pretty good handle on depletion and new projects, but appreciation of the depth and length of the recession is not well understood. What was widely believed last year to be a couple of weak quarters is now generally acknowledged to be the worst economic slump since World War II. Optimists, especially on Wall Street and in Detroit, are saying that by 2010, or 2011, or 2012, the recession should be over and economic growth will return. There is great faith that the world’s governments can manage a recovery by lowering interest rates, pumping trillions of government money into the financial system, loaning money to failing corporations, and instituting massive stimulus packages. Some are not so sure.

Whatever the root causes of our new recession - bad lending practices, leverage, too much debt, lax regulations, or as some believe, high oil prices - it is clear that it is going to be worldwide, serious and will take some time, perhaps years, to work itself out. The last recession of this scope went on for ten years and picked up the name of “the great depression” somewhere along the way.

The role of oil in the nature and duration of the recovery from all this will be critical. Should OPEC succeed in driving oil prices back up to $75 or $100 a barrel by imposing serious restrictions on production, then, as we saw last summer, money will be drained from the recovery into oil producers’ coffers, but there will be more incentive to invest in new production. Gasoline prices, however, will climb again and consumers will be back where they were last spring.

If the recession deepens over the next year or so, the demand for oil is likely to decline significantly. OPEC may have trouble getting prices back up to “satisfactory” levels. At present, worldwide demand for oil, while slipping, is not yet dropping precipitously. If such a drop should happen, then it is a solid indication of deep and lasting economic troubles for some time to come. Declines in worldwide production over the next few years initially will come from production cutbacks due to lack of demand. If the economic situation gets really bad, these demand-induced cutbacks could continue longer - perhaps for many years. At some point, however, worldwide oil depletion will catch up with new production as expensive investment in new oil fields is likely to shrink under conditions of declining demand.

At this point, the oil age will be closing down. Worldwide production will be declining rapidly through a combination of lower demand and then depletion. In four years sustainable production capacity is likely to be down from 87 million b/d to the vicinity of 80 million. In 10 or 15 years world production is likely to be in the vicinity of 50 million b/d and by mid-century 20 or 30 million. By the end of the century, oil production will be nearly gone and will be restricted to high-value uses for which there is no alternative. Future generations will either adopt alternative forms of energy, far more efficient machines, or do without. And it all started last July.

original artcile
http://www.fcnp.com/index.php?option=com_content&view=article&id=3832:the-peak-oil-crisis-july-2008–a-month-to-remember&catid=17:national-commentary&Itemid=79

December 5th, 2008 | Posted in Alternative Energy, Economy, Energy, Oil and natural gas, peak oil | Comments Off

Falling oil prices hurting OPEC members

www.financialpost.com - Claudia Cattaneo, Financial Post

CALGARY — After throwing a wrench into Canada’s oil sands growth and messing up Alberta’s budget surplus, slumping oil prices are beginning to bite into the government budgets of many OPEC members, Tristone Capital Inc. said in a report.

The Calgary-based energy investment dealer said Tuesday cartel outliers Iran and Venezuela are in the toughest spot, requiring oil at US$90 a barrel for their budgets to break even next year, while Nigeria and Bahrain need crude above US$70 a barrel.

Even producers in the Arabian Gulf are getting close to the oil price they need — US$50 a barrel — for their government budgets to break even. Oil settled at US$50.75 a barrel in New York Tuesday, down US$3.75 on worries the U.S. Energy Department will reveal a growth in oil inventories Wednesday, and down nearly US$100 since mid-July.

“There is a growing gap between what the required oil price is to balance the budget, and where we are at,” Chris Theal, Tristone’s head of research, said in an interview. “Iran and Venezuela are clearly in unsustainable territory.”

But the brokerage doesn’t see relief for another year on weak global oil demand and slack OPEC discipline. It expects oil prices to average US$50 a barrel in 2009, down 47% from its previous oil call of US$95 a barrel, rebounding to US$70 in 2010 and US$90 in 2011.

Indeed, Tristone sees a return to oil bull market conditions beyond 2010 as project cancellations and deferrals result in insufficient supplies starting in 2011. Tristone forecasts global spending on oil projects will fall by 30% to 40% in 2009 to US$275-billion.

“With the low price environment for oil over the next 12-18 months, we are setting the stage for under-investment in crude oil and in turn the next supply shock in two to five years,” the brokerage said.

Tristone says Venezuela, which funds 46.5% of its budget from oil sales, needs US$90 a barrel to avoid a current-account deficit based on production of 2.4-million barrels a day. While Venezuela’s national budget for 2009 is based on an average price of US$60 a barrel and production of 3.6-million barrels a day, Tristone said the country consistently underdelivers by 1.2-million barrels a day.

Tuesday, Venezuela’s President, Hugo Chavez, suggested that OPEC return to a system of setting a price band for crude oil to enhance market stability, similar to the price band adopted in the late 2009 to keep prices between US$22 and US$29 a barrel.

Venezuela would consider a price of US$80 to US$100 a barrel to be “fair,” Mr. Chavez said.

Iran is in the biggest trouble, having built its budget for fiscal 2008/2009 based on US$115 oil. Oil production accounts for 57.8% of government spending.

“These guys are actually dipping into their oil stabilization fund, the equivalent of the sovereign wealth fund, to fund programs,” Mr. Theal said. “They are going into an election next year. How palatable is that going to be with an increasingly educated electorate?”

Meanwhile, Nigeria, which derives 85% of its budget from oil sales, needs oil to be around US$80 a barrel.

Outside OPEC, Russia, the world’s second-largest oil producer, needs oil at US$70 to balance its budget, while Mexico’s budget reflects oil at US$80 a barrel. Alberta, Canada’s top oil producing province, based its 2008/2009 budget on oil averaging US$78 a barrel.

original article

http://www.financialpost.com/most_popular/story.html?id=993327

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November 26th, 2008 | Posted in Economy, Energy, Oil and natural gas, peak oil | Comments Off

Vatican set to go green with huge solar panel roof

http://www.reuters.com By Philip Pullella

VATICAN CITY (Reuters) - The Vatican was set to go green on Wednesday with the activation of a new solar energy system to power several key buildings and a commitment to use renewable energy for 20 percent of its needs by 2020.

The massive roof of the Vatican’s “Nervi Hall,” where popes hold general audiences and concerts are performed, has been covered with 2,400 photovoltaic panels — but they will not be visible from below, leaving the Vatican skyline unchanged.

The new system on the 5,000 square meter roof will provide for all the year-round energy needs of the hall and several surrounding buildings, producing 300 kilowatt hours (MWh) of clean energy a year.

The system, devised by the German company SolarWorld, will allow the 108-acre city-state to cut its carbon dioxide emissions by about 225,000 kilograms (225 tonnes) and save the equivalent of 80 tonnes of oil each year.

The Holy See’s newspaper said on Tuesday that the Vatican planned to install enough renewable energy sources to provide 20 percent of its needs by 2020, broadly in line with a proposal by the European Union.

The 1971 Nervi Hall is named after the renowned architect who designed it, Pier Paolo Nervi, and is one of the most modern buildings in the Vatican, where most structures are several centuries old. The hall can hold up to 10,000 people.

It has a sweeping, wavy roof which made the project feasible and the solar panels virtually invisible from the ground. Church officials have said the Vatican’s famous skyline, particularly St Peter’s Basilica, would remain untouched.

An editorial in Tuesday’s newspaper appealed for greater use of renewable energy.

“The gradual exhaustion of the ozone layer and the greenhouse effect have reached critical dimensions,” the newspaper said.

By producing its own energy the Vatican will become more autonomous from Italy, from where it currently buys all its energy. The Vatican is surrounded by Rome.

Pope Benedict and his predecessor John Paul put the Vatican firmly on an environmentalist footing.

Benedict has made numerous appeals for the protection of the environment. The Vatican has hosted a scientific conference to discuss the ramifications of global warming and climate change, widely blamed on human use of fossil fuels.

Environmentalists praised the pope last year after he made a speech saying the human race must listen to “the voice of the earth” or risk destroying the planet.

original article:

http://www.reuters.com/article/environmentNews/idUSTRE4AO8C820081125

November 26th, 2008 | Posted in Alternative Energy, solar power | Comments Off

Canada’s largest wind farm to be set up in southern Manitoba

www.cbc.ca

Manitoba’s NDP government and the province’s hydro utility said Monday they have signed a deal to develop what would be the largest wind farm in Canada, near St. Joseph in southern Manitoba.

The project is worth more than $800 million and would generate 300 megawatts of electricity from 130 turbines. The farm is being developed by Babcock & Brown Canada ULC, which is to sell the power to Manitoba Hydro.

Both Manitoba Premier Gary Doer and Manitoba Hydro CEO Bob Brennan described the project as the largest of its kind in Canada. Manitoba opened a 99-megawatt wind farm near the town of St. Leon in 2006.

“This new wind farm underlines Manitoba’s position as a leader in clean energy and will bring economic and environmental benefits to the local municipalities, Manitoba and the region,” Doer said.

The wind farm will bring the province closer to achieving its goal of an installed capacity of 1,000 megawatts of aeolian, or wind, power.

The project is still subject to regulatory approvals and a power-purchase agreement. Construction is expected to start in 2009, with power deliveries as early as 2011.

Schedule to be determined

The exact schedule will depend on the availability of materials and equipment for the wind turbines and related transmission facilities.

“The St. Joseph wind farm will add another renewable resource to Manitoba’s considerable portfolio of renewable hydroelectric generating facilities,” Brennan said.

Local landowners will receive $70 million in lease payments. Environmental benefits include displacing 800,000 tonnes of greenhouse gas emissions annually, Brennan said — the equivalent of taking 145,000 cars off the road.

Manitoba Hydro will buy wind-generated power as part of a proposed 25-year agreement with Babcock & Brown’s North American Energy Group, which has interests in more than 20 wind farms across North America with an aggregate value in excess of $3 billion.

The group has worked closely on this project with local residents and Calgary-based wind developer BowArk Energy.

“Babcock & Brown is pleased to have reached this stage of the wind procurement process and we thank Manitoba Hydro for selecting the St. Joseph wind project,” said Hunter Armistead, head of Babcock & Brown’s North American Energy Group.

“We look forward to a long and mutually beneficial relationship with local communities, Manitoba Hydro and the province of Manitoba.”

Roger Vermette, reeve of the Rural Municipality of Montcalm, said the project will bring in almost $500,000 to the municipal coffers, a third of the total budget.

“We’ve been waiting for economic development for many, many years and this is the best news we’ve had in a long time,” he said. “It means local jobs, it means gravel companies, it means cement companies, it means labourers and so on.”

original article

http://www.cbc.ca/canada/manitoba/story/2008/11/24/wind-farm.html?ref=rss

November 26th, 2008 | Posted in Alternative Energy, Energy, wind power | Comments Off

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