Volume 14 Issue 4
October 31, 2022 – November 11, 2022
Andrew Ji ‘25 | Cameron Farid ‘26 | Wilder Crosier ‘25 | Hagop Alajajian ‘26
Biden Calls for Penalties on Oil-and-Gas Companies’ ‘Windfall’ Profits
October 31, 2022 | Wall Street Journal | Andrew Restuccia
As a result of the Russian invasion of Ukraine, energy prices around the world have skyrocketed. While the hike in prices has created a great burden for consumers at the pump, oil companies are experiencing record profits. Two weeks ago, Exxon announced their third quarter profit of almost $20 billion, making it the company’s most lucrative quarter ever. In the approach to midterm elections, President Biden chastised the energy companies claiming, “Their profits are a windfall of war.” Biden hopes to work with Congress to raise taxes on their excess earnings. However, oil-supporters argue new tariffs would stifle important growth for these companies. They claim global markets set gas prices, and the government’s choice to raise taxes would lead to a reduction in supply and potentially even higher prices for consumers. –WC
“U.S. Colleges Talk Green. But They Have a Dirty Secret…”
November 11, 2022 | Tim McLaughlin and M.B. Pell | Reuters
In recent years, US universities have claimed to be at the forefront of the green movement, investing millions in climate and energy research, offering environmental science courses, and building and advertising an image of sustainability to outsiders. Here at Princeton, the recent divestments from many fossil fuel companies as well as diverse sustainability initiatives provide some evidence of a commitment to sustainability. However, a Reuters research report exposes a shocking truth. Universities that pride themselves on being green are some of the largest polluters. Harvard, for example, still operates a 113 year old plant with boilers dating back to the 60s, emitting more than double the amount of nitrogen oxides as compared to grid averages across the US. Darthmouth uses sludgy oil in its facilities while schools like The University of North Carolina continue to burn coal, the least efficient, dirtiest fossil fuel. According to the study, around half of the campuses studied produced more CO2 per MWh of power generated in 2020 than commercial utilities in their local grids. Essentially, it would be less environmentally harmful for these schools to rely on the standard grid given how polluting their practices are.
However, it should be noted that, here at Princeton, our facilities do pollute at rates lower than the local grid. But this study reminds us to remember the difference between words and actions of institutional bodies. Do these universities really have the right to ridicule other organizations for poor environmental standards when they are big emitters themselves? The study also indicates the clash between economical and environmental values when it comes to energy production. Investing in new energy infrastructure can be an expensive task that universities may not have the financial resources for. -CF
Smart Thermostats Can Reduce Energy Use—but Not if You Take Away the Smart Part
November 10, 2022 | Heidi Mitchell | Wall Street Journal
As a means to reduce bills, Americans have been getting energy-efficient smart thermostats, which are Wifi-connected devices that let users easily design heating and cooling schedules in an efficient manner for their homes. Researchers in partnership with Honeywell International and Pacific Gas & Electric co. studied the effects of this new type of thermostat in terms of energy consumption. However, researchers found that energy consumption was no different between the control group and the group with smart thermostats. The reason for this is hypothesized to be that people easily override energy savings out of comfort and convenience. - HA
Exxon faces $2 billion loss on sale of troubled California oil properties
November 6, 2022 | Reuters | Gary Mcwilliams
Exxon Mobil Corp finalized a sale to Sable Offshore, a blank check firm, taking a $2 billion estimated loss on a California offshore oil and gas field that underwent a serious pipeline spill in 2015. Exxon had previously acquired the properties after the 2015 Refugio oil spill that had leaked 3,400 barrels of crude oil into one of the most biologically diverse areas on the US west coast, and had attempted and failed earlier this year to restart production at the site, with Santa Barbara county rejecting the oil giant’s bid to truck oil to inland refineries.
Sable Offshore, a blank check company, will borrow 97% of the $643 million purchase from Exxon in a five-year loan. If production does not start by the start of 2026, Exxon could recoup the property and the operation, said Sable. - AJ