Rail Deliveries of U.S. Oil Continue to Increase in 2014

Source: U.S. Energy Information Administration, based on Association of American Railroads
Note: Values in graph represent monthly averages of weekly rail carloadings.

---

The amount of crude oil and refined petroleum products moved by U.S. railroads increased 9% during the first seven months of this year compared with the same period in 2013. In July, monthly average carloadings of oil and petroleum products were near 16,000 carloads per week, according to the Association of American Railroads (AAR). The increase in oil volumes transported by rail reflects rising U.S. crude oil production, which reached an estimated 8.5 million barrels per day in June for the first time since July 1986.

AAR estimates that more than half of the nearly 460,000 carloads tracked in its petroleum and petroleum products category from January through July consisted of crude oil, up from around 3% in 2009. With the average rail tank car holding around 700 barrels of crude oil, about 759,000 barrels of crude oil per day were moved by rail during the first seven months of 2014, equal to 8% of U.S. oil production.

Source: U.S. Energy Information Administration, Short-Term Energy Outlook and Petroleum Supply Monthly
Note: June and July oil production estimated from EIA's Short-Term Energy Outlook.

---

The Bakken Shale, primarily in North Dakota, has provided a significant share of the total increase in U.S. oil production over the past three years. North Dakota, now the second-largest oil producing state, provides nearly one out of every eight barrels of oil produced in the United States. Between 60% and 70% of the more than 1 million barrels per day of oil produced in the state has been transported to refineries by rail each month in the first half of 2014, according to the North Dakota Pipeline Authority.

In the future, proposed rules published in August by the U.S. Department of Transportation to improve the safety of tank cars will affect how crude oil is moved by rail, particularly trains that carry 20 or more carloads of oil. The proposed rules would require new oil tank cars constructed after October 2015 to have thicker steel and require retrofitting of existing tank cars. Voluntary actions by railroads in anticipation of the new rules have resulted in reduced speeds and increased inspections. (DOE-EIA)

Obama Administration Appliance Efficiency Standards

The Obama administration is working on new efficiency standards for seemingly every appliance but the kitchen sink.  The Department of Energy (DOE) is drafting new standards for refrigerators, dishwashers, air conditioners, ceiling fans, furnaces, boilers, water heaters, lamps and many more appliances.  The administration says the standards will not only help the planet but also stimulate the economy by saving consumers money on their energy bills that they can spend elsewhere.

The Energy Department has already finalized new efficiency standards for seven appliances in 2014, with another three rules expected by the end of the year. That compares to two rules in 2013 and three in 2012.  DOE believes the rules will save consumers $49 billion by 2030.

The standards will lead to more expensive appliances but say consumers will save money in the long run on their energy bills.  The standards also provide a opportunity to save consumers money.  The new efficiency standards will save wealthy consumers money in the long run, because they can afford to pay the higher costs for new household appliances.  Lower-income consumers will have a tough time paying for the more expensive appliances, and are likely to keep using older ones.

While many of the efficiency rules target household appliances, others focus on business appliances, such as commercial ice-makers, commercial refrigerators and walk-in coolers and freezers.  The Air Conditioning, Heating and Refrigeration Institute is challenging the later two rules in federal court.

The push for tougher efficiency standards was initially ushered in with the 2009 stimulus bill, which included $16.8 billion for the Energy Department to promote efficiency.  (The Hill, 8/29/2014)

New England Relies on Natural Gas & Hydro from Canada

Source: U.S. Energy Information Administration, from ISO New England

---

Electric operators in New England have been both generating more electricity from natural gas and importing more hydroelectric generation from Quebec over the past decade. These two sources of electricity are displacing the use of coal and oil as generation fuels in New England.
 

Recent and planned closures of large power plants may cause the independent system operator for New England (ISO-NE) to continue to rely on an increasing amount of hydropower from Quebec. The 745-megawatt (MW) coal- and oil-fueled Salem Harbor Power Station ceased operation on June 1. Pending shutdowns include the 605-MW Vermont Yankee nuclear facility, expected to be shut down at the end of 2014, and the 1,520-MW Brayton Point coal- and natural gas/oil-fired power plant, expected to be shut down in 2017. To make up for the loss of these generators, northeastern utilities and Hydro-Quebec have proposed constructing several transmission lines, including the 1,200-MW Northern Pass, to increase transmission of electricity from Canada. Hydro-Quebec has more than 36,000 MW of installed hydroelectric capacity and has been exporting electricity to New England and New York since the 1980s.

New England states have several reasons to further limit their use of electricity generated from fossil fuels. Constraints on some of the pipelines delivering natural gas into New England have contributed to higher natural gas prices and made electricity relatively more expensive. Also, all New England states have renewable portfolio standards (or in Vermont, a nonbinding goal) requiring that a certain percentage of their electricity comes from renewable sources. Goals and qualifying renewable sources differ by state. For instance, Rhode Island's goal is 16% renewable electricity by 2020 and New Hampshire's is 24.8% by 2025; both states have limits on the size of hydroelectric facilities whose generation qualifies.

Several New England states also have energy efficiency resource standards or goals, which act like renewable portfolio standards, but are for implementing energy efficiency. Energy efficiency is among the reasons for relatively little change in total system demand over the past decade in New England, despite 3% growth in total population from 2004 to 2012.

Finally, New England states are part of the Regional Greenhouse Gas Initiative (RGGI), a market-based regulatory program that places a cap on carbon dioxide emissions from the power sector. The cap is reduced over time, encouraging states to generate more of their electricity using low- or zero-carbon sources. (DOE-EIA)

NRC Approves Nuclear Waste Confidence Rule(s)

The U.S. Nuclear Regulatory Commission (NRC) met today in an Affirmation Session and voted to approve a Nuclear Waste Confidence Rule that allows nuclear companies to continue to store nuclear waste on site until a national repository can be contructed.  NRC also lifted the moratorium on licensing nuclear power plants.

Affirmation Session

a. Final Rule :Continued Storage Spent Nuclear Fuel (RIN 3150-AJ20) 

The Commission approved a final rule and its associated generic environmental impact statement (GEIS) amending 10 CFR Part 51 to revise the generic determination on the environmental impacts of continued storage of spent nuclear fuel beyond the licensed life for operation of a reactor, with the changes in attachment 5.

In implementing the published GEIS findings into site-specific environmental analyses, the staff should utilize approaches that are transparent to the public on how these impact ranges are considered for each specific site.

b. Direct Final Rule: SGI–Modified Handing Categorization Materials Facilities (RIN 3150-AJ18)

The Commission approved a direct final rule and the companion proposed rule amending 10 CFR Parts 30, 37, 73, and 150 to remove the Safeguards Information – Modified Handling (SGIM) designation of the security-related information for large irradiators, manufacturers and distributors, and for transport of category 1 quantities of radioactive material, with the changes in attachments 1 and 2. Storage Spent Nuclear Fuel–Memo & Order Final Licensing Decisions & Pending Contentions

c. Continued Storage Spent Nuclear Fuel–Memo & Order Final Licensing Decisions & Pending Contentions

The Commission approved a Memorandum and Order lifting the suspension on final licensing decisions that the Commission imposed in CLI-12-16 as of the effective date of the Continued Storage Rule, and providing direction with respect to “continued storage” contentions that are currently held in abeyance in twenty-one adjudications before the Commission and the Atomic Safety and Licensing Boards. (Subsequently, on August 26, 2014, the Secretary signed the Memorandum and Order.)

d. Direct Final Rule: Adding Shine Medical Technologies, Inc.'s Accelerator-Driven Subcritical Operating Assembly to the Definition of Utilization Facility

The Commission approved a direct final rule and companion proposed rule amending 10 CFR Part 50.2 to add SHINE Medical Technologies, Inc.’s (SHINE) proposed accelerator-driven subcritical operating assemblies to the definition of a “utilization facility,” subject to the changes in attachments 3 and 4. This rule will allow the U.S. Nuclear Regulatory Commission (NRC) staff to conduct an efficient and effective licensing review of the SHINE construction permit application and subsequent operating license application under 10 CFR Part 50, “Domestic Licensing of Production and Utilization Facilities.”  

Attachment 5 highlights:

As noted in the GEIS, the former “Findings” were outputs of previous Waste Confidence proceedings, which included an environmental assessment and finding of no significant impact. In contrast, the current GEIS provides a detailed analysis under NEPA and provides an analysis of specific impacts.’

...the Commission has concluded in this GEIS that deep geologic disposal remains technically feasible.

This analysis does not constitute an endorsement of an extended timeframe for onsite storage of spent fuel as the appropriate long-term solution for disposition of spent fuel and high-level waste.’

...does not imply that spent fuel cannot be stored safely. To the contrary, the analysis documented in the GEIS is predicated on the ability to store spent fuel safely over the short-term, long-term, and indefinite timeframes. (NRC)

---------------------------------------------------------------------------------------------------------

Days before the Affirmation Session, several environmental groups attempted to delay the meeting until after NRC Commissioner Willim (Bill) Magwood in a futile attempt to garner enough votes to defeat the approve of the rule.  Commissioner Magwood's last day at NRC is August 31, when he leaves to head the Nuclear Energy Agency.

The Center supported holding the meeting during its August 26 assigned time and supported approval of the Waste Confidence Rule.

NRC Should Vote On Nuclear Waste Conficence Rule on August 26

The Nuclear Regulatory Commission (NRC) should not postpone its August 26 vote on the proposed rule on long-term nuclear-waste storage and its plan to lift a hold on reactor licensing that the commission approved two years ago. 

Commissioner William Magwood should not be an issue regarding the timing of the vote.  He is an NRC commissioner in good standing and has served as an honorable public servant for many years.  We wish Mr. Magwood well as he leaves the NRC to become director of the non-government Nuclear Energy Agency (NEA) on Aug. 31.

Bill Magwood

Mr. Magwood in no way represents a conflict of interest because of his new position with NEA.  Mr. Magwood is still employed with the NRC and is perfectfly capable of performing his professional duties as a seasoned commissioner of the agency.  Mr. Magwood has participated in all of the proceedings and information related to the Waste Confidence rulemaking.  To postpone the vote until after he is gone from the agency will rob the public of his experience and background regarding these vitally important issues.

This is a very important vote and opponents should not assume which way Mr. Magwood is going to vote.  Nobody knows how Mr. Magwood will vote but his experience is very important regarding the issue of long-term storage and disposal of spent reactor fuel. (Wash Post, 8/21/2014)

Dominion Wildlife & Habitat Protection

Biodiversity & Habitat Protection

The protection of species and habitats on the lands, rights-of-way, and waterways around Dominion's facilities is an integral part of Dominion’s commitment to responsible environmental stewardship.
 

Some examples of their ecosystem conservation initiatives and partnerships include the following:

 

• Cove Point Beach Restoration. In cooperation with various regulatory, environmental and community groups, Dominion helped rebuild a buffer zone separating the Chesapeake Bay and a freshwater marsh using native grasses and plants. (See related video).

• The Center for Conservation Biology Partnership. With the bald eagle population in Virginia steadily growing, the competition for nesting sites and resources is also increasing. One such nesting site is located on a Dominion transmission structure in central Virginia. With Dominion’s assistance, the Center for Conservation Biology at the College of William and Mary is studying this nest using video recording equipment installed by Dominion employees. Monitoring of the nest will improve understanding of bald eagle behavior and population dynamics in Virginia.

• Roanoke River Fish Restoration. Dominion is involved in a long term study of “diadromous” fish populations in the Roanoke River, North Carolina. Diadromous fish, such as American shad and striped bass, generally live in the ocean and return to freshwater rivers to spawn; or like American eels, they live in rivers and migrate to the ocean to spawn. As the owner of a hydroelectric dam on the Roanoke River, Dominion works with state and federal agencies to assess and implement programs designed to support these fish populations.

 

Show Content Avian and Wildlife Protection

Dominion’s avian and wildlife protection program is widely regarded as one of the industry’s best. We have received several National Conservation Service Awards from the U.S. Fish and Wildlife Service for our efforts to protect birds from adverse power line impacts.

Dominion was one of the original parties of APLIC (Avian Powerline Interaction Committee), a global leader in providing guidance to utilities on minimizing harm to bird populations. These guidelines help reduce costly power outages while also providing compliance with laws protecting birds.

Show Content Wildlife Preservation

Dominion works with the Keystone Elk Country Alliance and the Pennsylvania Game Commission to help create safe havens and grazing areas for the elk and deer, which has resulted in a tripling of the herds. We also host an annual “elk tour” for state legislators to showcase the project. The tour is held in conjunction with a Dominion employee volunteer workday in support of various elk conservation projects in the area.

Show Content Rare Plant Protection

Since 1995, Dominion has supported the Natural Heritage Program of the Virginia Department of Conservation & Recreation. The program is intended to preserve the state’s biodiversity through inventory, ecosystem protection and stewardship. Dominion has teamed with the VDCR to conduct surveys of “Threatened and Endangered” (T&E) plants and other rare plants found in open-canopy environments located on the company’s electric transmission and distribution rights-of-way.

Show Content Land Conservation

Dominion donated 477 acres of unique ecological habitat called Bear Rocks to The Nature Conservancy of West Virginia. The land, located adjacent to the Dolly Sods Wilderness Area, will be used in perpetuity for conservation purposes. We are also partnered with The Public Land Trust to purchase and preserve a 122-acre waterfront area near Virginia Beach, Va., called Pleasure House Point. The area provides rare public green space and the opportunity to experience shoreline habitat, wetlands and maritime forest that is home to many species of birds and marine life, including the Chesapeake Bay blue crab and the Lynnhaven oyster.

Show Content Partnerships

  



(Dominion)

Exelon - PEPCO Merger

Chicago-based Exelon has filed an application with the Maryland Public Service Commission for approval to acquire Pepco Holdings, the D.C.-based utility serving about 537,000 customers in Washington’s Maryland suburbs.  Pepco has more than 2 million customers in an arc stretching from Washington and its Maryland suburbs, east to the Delaware shore and north to New Jersey.

The all-cash deal, announced in April and valued at about $6.8 billion, will cement Exelon’s hold on the Mid-Atlantic power market by adding Atlantic City Electric, Delmarva Power and Pepco to the three utilities Exelon owns: BGE, ComEd and Peco.

 

The process, which follows similar filings in the District, New Jersey and Delaware, is expected to take between 12 and 15 months for approval in all jurisdictions.

To help smooth the approval process, Exelon has committed $50 million in charitable contributions over the next decade to communities served by Pepco.

Exelon also said it will provide $40 million for a “Customer Investment Fund,” which the Maryland PSC may use for customer benefits such as bill credits, low-income assistance and energy efficiency.

Exelon, which owns 23 nuclear power plants, is acquiring a gas and electric transmission company that is one-fifth its size. Pepco, having sold its power plants several years ago, buys its electricity from others.

The agreement comes three years after Exelon bought Baltimore-based Constellation Energy Group, parent of Baltimore Gas and Electric, for $7.9 billion in a deal that extended Exelon’s reach into 38 states and two Canadian provinces.  (Wash Post, 8/19/2014)

Mining Energy Production Large Part of State Economies

Source: U.S. Commerce Department, Bureau of Economic Analysis (BEA), Regional Economic Accounts

At the national level, establishments that extract crude oil and natural gas as well as naturally occurring mineral solids, such as coal and ores, collectively referred to as the mining sector in economic data, accounted for about 2% of the U.S. economy last year. In some states, though, the mining sector accounts for a much larger share of the economy. Of the six states where mining comprised more than 10% of the state's economy in 2013, mining growth resulted in five of those states having higher economic growth than the national average.

• Wyoming. With crude oil and natural gas production from the Niobrara formation and coal mining from the Powder River Basin, Wyoming derives a larger share of its economic output from mining than any other state. In 2013, Wyoming's economic output from mining grew 18% between 2012 and 2013.
• Alaska. Alaska has the second-largest share of its economy tied to mining activity. An 8% decrease in mining activity in 2013, reflecting a drop in oil production from the North Slope, contributed to the decline of Alaska's total GDP by 2.5% in 2013, the largest decline in the nation.
• West Virginia. Most of West Virginia's mining activity is from coal mining, but natural gas production from the Marcellus shale in West Virginia has increased in recent years. The sector grew from 11% of total economic activity in 2003 to 17% in 2013.
• North Dakota. In percentage terms, North Dakota has experienced more change in its economic makeup from mining activity than any other state, going from 2% of its economy in 2003 to 14% in 2013. North Dakota's crude oil production surpassed 1 million barrels per day in average monthly oil production earlier this year, because of production in the Bakken region. Associated effects from Bakken development, such as growth in construction, real estate rental and leasing, and accommodation and food services, also increased economic output. Growth in the mining sector has helped North Dakota achieve the lowest unemployment rate in the nation at 2.7% as of June.
• Oklahoma. Oklahoma has significant oil and natural gas production, ranking fifth nationally in the volume of crude oil production and fourth in natural gas production. The state saw 19% growth in mining activity, up from its ten-year average of 7%. Oklahoma’s significant refining and transportation activity is not included in the mining sector data.
• Texas. In absolute terms, mining activity in Texas in 2013 was more than seven times greater than the next largest state, Oklahoma. But compared to the states discussed above, Texas’s economy is much larger, so mining only accounts for about 11% of its economy. Much of the recent growth in mining has come from rapidly growing oil and gas production in the Eagle Ford formation and Permian Basin.

Source: U.S. Commerce Department, Bureau of Economic Analysis (BEA), Regional Economic Accounts

---

(DOE-EIA)

Garden of Nede Tour

Enhanced Oil Recovery Using Carbon Dioxide

In the 2014 Annual Energy Outlook (AEO2014), EIA projects that the price of oil will largely determine whether to use carbon dioxide (CO₂) enhanced oil recovery (EOR) technologies to extract additional crude oil from existing producing fields. The injection of CO₂ gas into oil reservoirs at high pressure forces the CO₂ to mix with oil. This reduces the oil's viscosity and causes the oil to increase in volume (swell). The result is an increase in the total cumulative volume of oil produced and in the percentage of oil-in-place that is recovered. The decision by a producer whether or not to employ this technique depends on a number of factors, including the geophysical properties of the reservoir, the oil within that reservoir, the cost of applying CO₂ EOR, and the revenue received from additional production.

Source: U.S. Energy Information Administration, Annual Energy Outlook 2014

---

The injection of miscible (capable of being mixed) CO₂ into old oil fields to recover more of the oil-in-place is an expensive undertaking. The cost of the CO₂ itself can add $20 to $30 per barrel of oil produced. In addition, the producer must pay for surface facilities to separate the CO₂ from the production stream and compress it back into the oil reservoir. The producer also incurs a financial cost for the time delay associated with repressurizing old reservoirs. Oil prices thus play an important role in determining whether the additional production resulting from applying CO₂ EOR to old fields is sufficient to make this process commercially and economically feasible. (DOE-EIA)

Average Electricity Price At All-Time High

According to the Bureau of Labor Statistics, for the first time ever, the average price for a kilowatthour (KWH) of electricity in the United States hit a record 14.3 cents in June 2014.

Typically, the cost of electricity peaks in summer, declines in fall, and hits its lowest point of the year during winter.

According to the Energy Information Administration--overall electricity production with a total of 1,329,042 million KWH.

According to the Census Bureau, however, the resident population of the United States increased from 300,888,674 in April 2007 to 317,787,997 in April 2014. So, per capita electricity production in the first four months of 2014 (0.004182 million KWH per person) was less than the per capita electricity production in the first four months of 2007 (0.004316 million KWH per person).

 

Coal is the top fuel source of electricity production. Such production dropped by 15% from 2007 until today (644,052 million KWH to 548,297 million KWH. That is a drop of 95,755 million KWH)

Electricity production from nuclear power declined from 260,838 million KWH in January-April 2007 to 254,485 in January-April 2014.

Electricity production from conventional hydroelectric power declined from 92,873 million KWH to 88,364.

Production from petroleum declined from 24,974 million KWH to 14,931.

The largest increase in electricity production came from natural gas—which climbed from generating 234,331 million KWH in the first four months of 2007 to generating 318,958 million KWH in the first four months of 2014.  (CNS News, 7/29/2014)