The Strategic Petroleum Reserve (SPR) is in play. The 695 million barrel inventory, stored in four storage locations in Texas and Louisiana with a capacity of 713.5 million barrels, never found its purpose; it is still waiting for the third oil crisis (after the 1973/74 Arab Embargo and the 1979 Iranian Revolution). Not surprisingly, the SPR is on the verge of becoming a piggy-bank offset for lawmakers. At $50 per barrel, SPR inventory is worth about $35 billion.
This week, MasterResource reviews the history of state and federal oil (and natural gas) storage regulation and ownership. Part I today is early (pre-SPR) regulation. Part II tomorrow will review the prehistory and beginnings of the SPR.
Part III will examine early problems with the federal storage program; Part IV early fill and financing controversies.…
Continue ReadingThe world has always been dirty and risky. But it was a far dirtier and riskier place before there was an electricity grid run on coal, natural gas, oil, and nuclear.
The world would still be a dirty place if we stopped utilizing our vast combustion resources. And the competitive disadvantage in manufacturing that would impose lower standards of living (including on the already impoverished) right along with shortening, not lengthening, human lifespan relative to the “breathing as usual” case.
Yes, fossil fuels may run short in some future century. But not this one. Until they do, the U.S. should compete with the rest of the world by using them–just the way that world intends to compete with us.
Potential Flaws
On critiquing such cost analyses as conducted by the U.S.…
Continue Reading“If Unit 4 does slip by more than six months, the Company would not be able to collect its current forecast of $522 million in nominal PTCs over the first eight years of the Unit 4 operating life that ratepayers would have otherwise received.”
IN THE MATTER OF: GEORGIA POWER COMPANY’S TWELFTH SEMI-ANNUAL VOGTLE CONSTRUCTION MONITORING REPORT (Docket No. 29849)
Direct Testimony and Exhibits of Philip Hayet on Behalf of the Georgia Public Service Commission, Public Interest Advocacy Staff, June 10, 2015.
IV. PRODUCTION TAX CREDITS (excerpt)
Q. DOES STAFF HAVE ANY CONCERNS REGARDING THE COMPANY’S PRODUCTION TAX CREDIT ASSUMPTIONS?
… Continue ReadingA. Yes, Staff points out two concerns that relate to the Company’s Production Tax Credit Assumptions. In their joint testimony, Dr. Jacobs and Mr. Roetger note concerns regarding the Company’s ability to meet its current schedule.