Natural Gas in the Palestinian Authority: The Potential of the Gaza Marine Offshore Field

Summary: Although in strict legal terms its status is ambig-uous, a 25-year exploration license for the marine area off the Gaza Strip was awarded by the Palestinian Authority in 1999.

The Gaza Marine field was discovered the following the year though its natural gas has yet to be exploited. Politics as well as failure to agree on commercial terms have been the principal reasons for the delay.

Exploitation of the field would provide the Palestinian Authority with an important revenue stream. Using Gaza Marine gas may also reduce the need of Israel to consume its own natural gas to generate electricity for the Palestinians. Ultimately the decision will be political, but, in economic terms, the case for the exploita-tion of Gaza Marine is strong. Download PDF

 

© 2014

Why Morgan Stanley Is Betting That Tesla Will Kill Your Power Company

There’s a reason that power companies are attacking rooftop solar across the nation: They see those silicon panels as nothing short of an existential threat.

As the cost of solar continues to fall, and more people opt for the distributed power offered by solar, there will be less demand for big power plants and the utilities that operate them. And one major investment giant has now released three separate reports arguing that Tesla Motors is going to help kill power companies off altogether.

Earlier this year, Morgan Stanley stirred up controversy when it released a report that suggested that the increasing viability of consumer solar, paired with better battery technology—that allows people to generate, and store, their own electricity—could send the decades-old utility industry into a death spiral. Then, the firm released another one, further emphasizing the points made in the first. Now, it’s tripling down on the idea with yet another report that spells out how Tesla and home solar will “disrupt” utilities.

“There may be a ‘tipping point’ that causes customers to seek an off-grid approach,” the March report argued. ”The more customers move to solar, the [more the] remaining utility customers’ bills will rise, creating even further ‘headroom’ for Tesla’s off-grid approach.”

Yes, Tesla Motors, everyone’s favorite electric car company. And that’s where the controversy comes in. Morgan Stanley breathlessly pegged Tesla as “the most important auto company in the world” in part because its electric car business was pushing it to develop better energy storage technology, and then mass manufacture said batteries. That’s exactly what Tesla CEO Elon Musk and company will be doing at its forthcoming Gigafactory, which it is building in the Southwest with Panasonic.

With the new manufacturing facility, Morgan Stanley reasons, Tesla stands to double its business (adding another $2 billion in revenue) by selling the lithium ion batteries it typically ships under the hood of a Model S to homeowners with solar panels, too. If consumers can store energy the panels generate during the day for use at night, it would ostensibly render the need for utilities to pipe in faraway power—and their electric bills—obsolete.

Energy storage, when combined with solar power, could disrupt utilities in the US and Europe to the extent customers move to an off-grid approach

Musk is also the chairman of Solar City, a company that leases rooftop solar setups to homeowners, and one that would benefit from the battery tech. Now, the shadiness here is that Morgan Stanley released the report trumpeting Tesla’s crossover energy storage potential—causing Tesla’s stock to rise—right before it underwrote a fundraising round for… Tesla.

So the whole thing is very incestuous, and it does render some of the projections a little suspect, but the bottom line here is that private solar and battery companies are viable enough that they’ve attracted the backing of one of the world’s biggest financial services companies—over the multi-trillion dollar utility industry.

“Energy storage, when combined with solar power, could disrupt utilities in the US and Europe to the extent customers move to an off-grid approach,” Morgan Stanley writes in its third report this year emphasizing the prospect. ”We believe Tesla’s energy storage product will be economically viable in parts of the US and Europe, and at a fraction of the cost of current storage alternatives.”

In other words, Morgan Stanley has Tesla’s back, big time. It’s betting that Musk is going to make the best solar energy batteries money can buy.

Ironically enough, however, even staunch clean energy advocates are wary about Morgan Stanley’s finding that utilities are going the way of the buffalo. “Barring extraordinary circumstances, the economic case for grid defection is still very weak for US consumers,” Stephen Lacey, the senior editor of Greentech Media, wrote of the Morgan Stanley report. ”The electricity system offers valuable backup in case a customer over- or under-invests in an on-site system.”

It’s more likely, then, that people will still buy home solar—by the tens of millions, Greentech suggests—but not unplug from the grid entirely. Utilities will be diminished, but not broken. This process is underway in Europe already, where countries like Germany have powerful incentives for consumers to switch to solar.

Last year, the Economist called the sharp decline of European utilities “startling,” noting that together, they lost half their value—$600 billion—in just five years. Here in the states, utilities and conservative politicians are fighting solar tax credits to prevent the same thing from happening. For the most part, the utilities are losing.

All of this is, ideally, what needs to happen. Climate change is accelerating, and we need to transition away from those massive, fossil fuel-slurping power plants. Distributed solar is an increasingly powerful force behind that weaning process.

And even if some of Morgan Stanley’s calculations are shaky, the trends that Tesla is helping to amplify are anything but—clean, personalized (or community-wide) power will play a major role in shaping our energy future.

The fact that a greed-driven titan of finance like Morgan Stanley recognizes as much, and is willing to triple down on its bets on battery storage and distributed power, is a promising sign that the energy revolution is underway. More

 

© 2014

Solar is here

Solar is here.

That's right. You know the solutions to the climate crisis are available today; we simply need the public (and political) will to implement them. Clean energy is urgently necessary, abundant, and becoming increasingly more affordable. That's why on June 21, The Climate Reality Project is joining 12 other organizations in a day of action to support clean-energy solutions and show our commitment to bringing solar power to communities around the world.

If you don't already have plans to take part on Saturday, don't despair! Here are a few last minute ways to get involved:

1. Sign: Send President Obama an email thanking him for putting solar panels on the roof of the White House.
2. Share: Take your own #PutSolarOnIt photo and share it with your social media network.
3. Discover: Check out the Mosaic website to find out if solar is right for you.
4. Participate: Check out OFA's website to find an event near you, some of which are being hosted by your fellow Climate Reality Leaders.

The reality is this: solar is affordable. It's clean. And it's powerful. The cost of solar panels has plummeted 60 percent since early 2011, and the number of installations keeps growing. The United States now has enough installed solar capacity to power more than 2.2 million homes. In several states, solar power is now competitive with other sources of energy without emitting the dangerous greenhouse gases that cause climate change.

Climate Reality Leaders are the first responders to the climate crisis and lead action across the globe. We're proud so many of you will be participating on Saturday by hosting presentations, organizing events, and informing others about the benefits of solar power.

The Climate Reality Leadership Corps Team

Solar Array at Caledonian Bank, George Town, Cayman Islands

 

 

© 2014

New Realities: Energy Security in the 2010s and Implications for the U.S. Military

Revolutionary changes among energy producers and dramatically altered patterns of energy consumption across the planet are having profound implications for American national security in general and the U.S. Army specifically.

Panel Discussion on the Military Implications of Energy Security

For example, the reduced saliency of Africa and the Middle East as energy sources for the United States and many of its key allies will alter Washington’s calculations of its vital interests, which will subsequently affect where and how the U.S. Army is wielded as a tool of national policy in the defense of those interests. Meanwhile, burgeoning fossil fuel demand in China, India, and elsewhere may both increase regional and global security competition over energy resources while simultaneously worsening human-induced global climate change and bringing increased risk of humanitarian crises, all of which may compel the United States to utilize military force in defense of vital as well as important interests overseas. For the U.S. Army during a period of contraction and reduced budgetary authority, these strategic factors will force it to give Soldiers and leaders the capability to manage energy status, resources, and performance; to significantly reduce its energy footprint; and to provide flexibility and resiliency by developing alternatives and adaptable capabilities. At the same time, whether in garrison or deployed, the “new realities” of the global energy market will compel the Army to strengthen the capacity to insulate itself from disruption of its energy supply chains, whether in electricity or fuels.

These were just some of the key conclusions reached during a conference on “New Realities: Energy Security in the 2010s and Implications for the U.S. Military,” organized by the Strategic Studies Institute, U.S. Army War College, and hosted by the Defense Education Forum, Reserve Officers Association (ROA). The conference was held on November 19-20, 2013, in Washington, DC, at the ROA’s Minuteman Memorial Building on Capitol Hill. Funding for this conference was provided by generous support from the U.S. Army War College Foundation. Participants included representatives from the U.S. military, government, private industry, Congress, and academia principally from the United States, with a number from European nations. A virtual audience component to the conference accompanied it via a live web feed, and during the event itself, live Tweets were broadcasted via @SSInow.

The academic engagement component of the event included presentations by professors and researchers from the Atlantic Council, Rice University’s Baker Institute, the Carnegie Endowment for International Peace, Case Western Reserve University, the Center for Naval Analyses (CNA), the Center for Strategic and International Studies (CSIS), Jacobs University (Bremen), the Eurasia Group, Hampshire College, Idaho National Laboratory, the Middle East Institute, the National Defense University, the National Science Foundation, the University of California at San Diego, the University of Florida, and the University of St. Andrews, as well as audience participation by a number of U.S. Army War College Senior Fellows.

The New Realities conference was divided into three themes focusing on changes among global energy market suppliers, evolving forms of consumption, and what the implications of these trends represent for the U.S. military. The event was comprised of a total of seven panels with 22 presenters and two keynote lunch speakers—the Honorable Sharon Burke, Assistant Secretary of Defense (Operational Energy Plans and Programs); and the Honorable Katherine Hammack, Assistant Secretary of the Army (Installations, Energy & Environment).

The first four panels focused on current trends in production and consumption and the impact of these trends on the strategic environment. The last three panels addressed the implications of the broad, strategic trends for the U.S. military generally and the Army specifically. Key takeaways included the following:

• The unconventional fossil fuels revolution sweeping across North America and spreading to other continents is the most fundamentally transformative event – in terms of society, economics, and ultimately politics – of the last several decades.
• Europe has two opposite fears about Russian energy behavior primarily focused on natural gas; the first is Russia will continue and intensify the pattern of energy supply manipulation for political purposes as seen in the previous decade; the second fear is that Russia will pursue incompetent policies at home that reduce its ability to supply gas to Europe.
• Criminal organizations and guerillas in Latin America are not viewed as the major challenge to the oil industry. Rather, the inability of governments to equitably distribute rents from the energy industry while simultaneously protecting the environment and public health will undermine confidence in those governments.
• Energy production is shifting from the Middle East to the Western Hemisphere which will have geopolitical implications and will further strengthen U.S. energy security independence and national power. This is an outcome of advances in fracking, deep sea drilling, and other technologies.
• Renewable energies (RE) offer many potential advantages including reducing exposure to price vulnerability, creating greater interdependence for regions, prolonging the stability of hydrocarbon exporters, and reducing nations’ vulnerability to energy being used as a ‘weapon’ against them in international relations. However, for the immediate future Middle East oil will continue to control oil pricing as long as the world’s industrial infrastructure remains oil-based.
• The ubiquity of computer and information technology systems throughout the energy industry is growing, as computerization increasingly dominates energy industry processes from exploration through production and distribution. This increases the vulnerability of cyber technologies supporting U.S. Army missions.
• Increasing American energy independence and a projected decline in African energy production are likely to fundamentally alter U.S. interests in Africa. On the one hand, the United States is likely to have less at stake in Africa if it imports less in terms of energy resources from Africa. On the other hand though, reduced energy production may mean increased economic, social, and political instability across the continent, potentially resulting in humanitarian and other crises that may compel U.S. involvement.
• As a key strategic partner of India and as an emerging energy supplier with a number of proven bilateral mechanisms for energy cooperation already in place, the United States is well positioned to forge even closer civil and military ties to enhance mutual energy security.
• Much more energy is wasted due to inefficiencies in energy generation, transmission, and distribution than is normally imagined. Some Russian natural gas facilities can flare (burn off) up to a third of their gas during the generation process. A number of industrial processes and efficiency technologies offer great potential for energy resource conservation and storage, but this will require less developed energy producers to become more comfortable inviting in Western industry, capital, and technology.
• The U.S. Army, Navy, Air Force, and Marines seek to conduct energy-informed operations, which balance energy capabilities and employment to achieve the greatest net operational benefit. At the same time, the military must maintain balance in terms of the protection, resilience, and sustainability of its forces in the field.
• Ultimately an enterprise approach to energy security will be required for U.S. national and coalition defense needs. This will further the development of both strategic and operational energy concepts, plans and programs, and doctrines, which is vital given the increasing energy requirements of the technologically advanced forces being fielded over the coming decades.

Deliverables from the conference will consist of a compendium of the papers presented, a YouTube archive of the presentations, and a series of executive summaries for use by policymakers and other decisionmakers. More