Archive for the ‘emissions’ Category

Guest post: A driving force behind the Low Carbon Fuel Standard sees credit prices rising

John Kingston is President of the McGraw Hill Financial Global Institute and Director of Global Market Insights. He continues to observe energy markets after his many years with Platts.

The price of Low Carbon Fuel Standard credits is going to rise. It’s just a question of when.

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Crunch time for EU carbon market reform: time for compromise?

What happens when an irresistible force meets an immovable object? One answer to this paradox is “nothing” since irresistible forces and immovable objects can’t co-exist. At least not in the real world.

But what happens when the irresistible force is the political will of the European Union to reform its carbon market ahead of global climate talks later this year, and the immovable object is a group of EU member states who are resolutely opposed to higher carbon prices?

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Regulation & Environment: California as a carbon testing ground

In the US, state attempts to cut down on carbon have raised worries about fuel availability, costs and timelines. Herman Wang explains more in this week’s Oilgram News column, Regulation & Environment.

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California’s cap-and-trade no more than road bump in gasoline’s steep price decline

Drivers in car-crazed California paid more than 10% more for their gasoline at the start of the year. They just didn’t realize it.

As expected, California’s introduction of the emissions cap-and-trade program for transportation fuel suppliers boosted Los Angeles regular gasoline rack prices nearly 17 cents in the first two days of 2015 to $1.5885/gal. The rack is the wholesale level where gasoline and diesel is moved onto those often-shiny tanker trucks that hold roughly 9,000 gallons.

What barely changed right away was the price up and down the supply chain.

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Energy Economist: Trying to make CO2 have an application, rather than just getting rid of it

CO2 in your mattress? Not a great selling point, but it should be. There is a strong possibility that in the next few years some materials currently derived from fossil fuels will have a growing proportion of CO2 derived from the waste flues of industrial processes embedded within the chemical backbone of the polymers used to make them. This represents one of the first steps in creating a closed and sustainable carbon economy. Ross McCracken, the editor in chief of Platts Energy Economist, looks at that possibility in this month’s selection from that publication.

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New Frontiers: Cutting back natural gas flaring in North Dakota hits a bump

North Dakota has aggressively sought to cut the amount of natural gas flaring going on in the state. It’s made strides, but it has a new hurdle, as Brian Scheid discusses in this week’s Oilgram News column, New Frontiers.

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The shipping business gets ready — with new fees — for the dawn of cleaner fuels

The bunker fuel market in the Atlantic Basin is just a bit more than 100 days away from the next shift in the sulfur emissions cap on ships traveling within 200 miles of shore in North America and North West Europe, a designated Emissions Control Area. And some of its impact on costs is starting to show up.

After several months of vague rumblings about higher costs, we’re beginning to see a clearer picture of just how much more shippers expect to pay to comply with this stricter rule. MSC on Monday became what we believe is the third company to announce per-container surcharges intended to offset its expected higher fuel bills come January.

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A small Maine city may have set off a big fight over oil movements

The next big fight in the war over oil and gas development in the US — or at least one of the next big fights – will be over local control. That issue ramped up this week and appears to raise a significant question of federalism.

The city council in South Portland, Maine, voted this week to approve a package of zoning restrictions that would affect the handling of crude oil in the city. But the laws were drawn to impact the handling of oil being put on to tankers. It doesn’t affect oil being taken off tankers.

Why this is significant is because South Portland is the eastern terminus of the Portland-Montreal Pipeline, which takes crude oil imported into Maine and brings it to Montreal near the St. Lawrence Seaway. It can be refined in Montreal, or moved down Line 9 to Canadian refineries in Ontario.

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Gas Daily: Colorado’s anti-fracking ballot initiative fizzles out…for now

After some local areas of Colorado last year passed fracking bans of dubious legality — that sort of thing is generally the responsibility of the state, not a city or town — there arose a clamor for an initiative that would give localities that power. It was seen as a way to severerly limit fracking throughout the state.

It was such a hot-button issue that Democrats in the state were concerned that the issue could create rifts in the party. But all that fretting was for naught; the issue won’t be on the ballot in November.

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Regulation & Environment: Cap & Trade comes to California oil product markets

California’s cap and trade law has been reality for a wide variety of CO2 emitters for several years. But they are all stationary sources. In January, it moves to a moving kind of source: motor vehicles. In this week’s Oilgram News column, Regulation & Environment, John Kingston, fresh off a trip to the state’s capital city of Sacramento, discusses the implementation of the law in the fuels business.

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