Thursday, January 19, 2017

Shhhh,...the era of oil is over.

18 January 2017
By Leigh Collins

For those who think the direct purchase of renewable energy (click here) by corporations is an insignificant corner of the clean power world, consider this: in the US in 2015, more new wind capacity was bought by businesses than utilities.
While the 3.24GW of corporate renewables installed in 2015 was something of a one-off as the industry reacted to the impending expiration of the production tax credit, the overall demand has been steadily rising.
And the momentum is growing.
Last May, four non-governmental organisations (NGOs) with their own corporate energy campaigns, supported by more than 60 green-minded companies, clubbed together to form the Renewable Energy Buyers Alliance(REBA) to promote the business case for renewables and help firms navigate the energy-purchase process. Generally speaking, the economic case for corporate renewables has been twofold: meeting companies’ sustainability goals, while locking in a low, stable power price for 15-20 years — a potentially valuable long-term hedge at a time when the cost of utility-supplied electricity seems to be continuously rising.
Yet the cost of wind and solar has fallen so much over the past seven years — 60% and 80% respectively — that some companies are now finding it cheaper to buy renewable energy directly from developers (or to build projects themselves) than to purchase fossil-fuel-based electricity from a utility....
Alternative energy is attainable by everyone, from the homeowner to the production plant. It is clean and safe. There really is no cost comparison to building a natural gas plant and building renewable energy production. Anyone can own their own power plant.

Volatility? Alternative energy? No. Fossil fuels, you betcha.

January 17, 2017
By Rakteem Katakey

Top oil industry officials in Davos (click here) aren’t turning completely bullish just yet. Capping their enthusiasm is U.S. shale oil, which is likely to limit price increases and usher in a period of greater volatility.
U.S. supply is already returning at $50 a barrel, Saudi Arabia Energy Minister Khalid Al-Falih and BP Plc Chief Executive Officer Bob Dudley said in Davos, Switzerland, on Tuesday. Higher prices will accelerate that process, according to International Energy Agency Executive Director Fatih Birol. 

“I expect U.S. production will start to increase again -- all the indications are there -- as a result of the higher prices,” Birol said. “Prices will go up, U.S. and other production will go up and put downward pressure on prices again. And up and down. We are entering a period of greater oil-price volatility.”...
There simply is no doubt at all that oil is as dead as the dinosaurs that rotted in the ground to be pumped out of their graves.