Volume 14 Issue 7
December 5, 2022 – December 11, 2022
Andrew Ji ‘25 | Wilder Crosier ‘25 | Cameron Farid ‘26
UK tries to shore up energy supply with US deal
December 7, 2022 | CNN | Hanna Ziady
As Europe looks to replace Russian energy and fight high fuel prices resulting from the invasion of Ukraine, the United Kingdom recently struck a deal with the United States to increase LNG (liquified natural gas) imports to the country. The deal is titled “UK-US Energy Security and Affordability Partnership” and, in this partnership, the US plans to export at least 9-10 billion cubic meters of LNG to the UK over the next year, over double that exported in 2021. Other components of the deal include collaboration on energy efficiency and alternate sources, like renewables and nuclear power. Earlier this year, a similar deal was struck with the European Union and United States, where the US would also increase LNG shipments to EU countries. As expected, the United States became the world’s largest LNG exporter in the first half of 2022, according to the US Energy Information Administration.
These deals have not been met positively by all. Kremlin spokesman Dmitry Peskov, for example, criticized increased European reliance on US energy, claiming that “now, when the Europeans are losing billions of euros every day, Washington is already earning these billions of dollars.” - CF
Keystone pipeline shut after 14,000-barrel oil spill in Kansas
December 9, 2022 | Reuters | Brijesh Patel, Rod Patel, Nia Williams
A massive onshore oil leak in rural Kansas last Wednesday spilled over 14,000 barrels of crude oil, the largest onshore spill in the United States since a 20,000 barrel spill in October 2013. Its operator, Canada’s TC Energy, shut down the pipeline at about 8 p.m. CT, with the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) ordering the pipeline to stay closed until the federal regulator authorizes a restart. The leak took place near Washington, Kansas, a small town, and 20 miles south of Steele City, Nebraska, and threatens to affect US inventories at a storage hub and two oil refinery centers.
The controversial keystone pipeline has now suffered seven spills since its opening June 2010, with the largest previous spill in December 2017 when 6,600 barrels spilled in South Dakota. This spill, however, may face a longer shutdown than the typical two weeks since it involves a creek nearby, which risks permeating the leak through the local ecosystem. With an immediate shutdown and no hard timeline on when it will reopen, Western Canada Select (WCS) oil will likely be discounted, adding to an already heavy discount given the low demand for Canadian oil. WCS for December delivery traded $33.50 below West Texas Intermediate (WTI), a benchmark for US oil prices, compared with Wednesday’s price of $27.50 below the benchmark. - AJ
Attacks on Pacific north-west power stations raise fears for US electric grid
December 11, 2022 | The Guardian | Dani Anguiano
With over the 450,000 miles of sprawling transmission lines across the country, the U.S. power grid provides millions of Americans with their electricity needs. Recently, a string of six attacks on power stations in the Northwest have highlighted both the importance and the vulnerabilities of the grid. On December 3, two similar attacks were launched on power stations in North Carolina, leaving 40,000 residents without electricity. The perpetrators are unknown, but experts believe domestic extremist groups are behind the terrorism. The Department of Homeland security released a report early this year warning that these groups have created “credible, specific plans to attack electricity infrastructure since at least 2020.” The recent impacts of the attacks shed light on the physical vulnerabilities of the grid as well as the real threat of these attacks. –WC