Power Surge 14.5

Volume 14 Issue 5
October 31, 2022 – November 11, 2022
Andrew Ji ‘25 | Wilder Crosier ‘25 | Cameron Farid ‘26 | Hagop Alajajian ‘26

At COP27 climate talks, slow progress stokes worry over final deal

November 13, 2022 | Reuters | William James, Kate Abnett and Valerie Volcovici

One week deep into this year’s annual U.N. climate conference, held in Sharm El-Sheikh, Egypt, agreements have been few and far between. With the summit’s close scheduled for Friday, time is running out to sort out technical details on how to complete deals and pledges made in previous years, including those aiming to make severe cuts to emissions and contributing to hundreds of billions of dollars each year for developing nations to cope with the ever-intensifying effects of climate change.

The latter goal, dubbed ‘loss and damage’, mainly pushed by developing countries, has left some wealthier nations like the U.S. cautious, with the EU and US having blocked such moves in previous years. Although the EU has stated that it would be open to discussing such a fund, the language of such a document has been a hot battleground. In the meantime, a few nations have also opposed to explicitly mentioning the long-standing goal of limiting warming to 1.5C. -AJ

Can Refracs Boost U.S. Shale Output?

November 8, 2022 | OilPrice | Alex Kimani

With rising oil demand post-COVID, the supply side is struggling to keep up around the world. Global conflicts like Russia’s invasion of Ukraine have only escalated issues, pushing oil prices per barrel into the triple digits earlier this year. One potential avenue for increasing oil production is through the refracturing of old oil wells. Companies do this by inserting a new steel liner into an old well bore and blasting holes to get more oil from the existing well. This process typically uses half as much steel and sand as a new well, attributing to its economic viability in a time where supply chain shortages have drastically raised costs. Studies have also shown that refracturing has a higher recovery rate than drilling a modern well. Additionally, there’s yet another benefit in that companies do not have to obtain new permits and negotiate ownership rights, as these would have already been settled in the original well production. This refracturing is one of several avenues to increase oil production in a time where individuals are under financial strain to fuel their vehicles and heat their homes. -CF

To Store Renewable Energy, Some Look to Old Mines

November 11, 2022 | Rhiannon Hoyle | Wall Street Journal

Recently, there has been a new use for old mines. Internationally, they have started to be repurposed to generate renewable energy through pumped-storage hydropower, which works by using gravity and water as an energy supply in a giant battery system. The following is how the system works: when the energy is plentiful, water is pumped uphill for storage; when energy is in demand, gravity leads water to flow downhill through turbines, where it then gets stored in a lower reservoir. Water later moves uphill through a reversible pump turbine. The movement of water uphill and downhill continues in a cycle to generate hydroelectric power. Mines are a useful location for this process because there’s a high chance they may already contain water and because it’s cheaper than building the environment for this technology from scratch. The United States has tapped into this technique as well, with Biden’s administration spending half a billion dollars to repurpose mines to “clean energy hubs.” Moreover, the conversion of mines to these hydroelectric power generators has more potential, especially since Michigan Technological University professors have identified about a thousand suitable locations in the United States to launch this technology. -HA

U.S., Centrus Energy in pact to make next-generation nuclear fuel

November 11, 2022 | Reuters | Timothy Gardener

On Thursday, the U.S. Department of Energy announced a new deal with nuclear fuel company Centrus Energy to test the production of a fuel technology called high assay low enriched uranium (HALEU). As part of the government’s goal of reaching net-zero carbon emissions by 2050, the U.S. government sees the new fuel technology as a valuable step towards the next generation of fission reactors. Planned reactor designs from X-energy, TerraPower, and others will use HALEU. The government and Centrus energy will equally share the $300 million cost of the test production. Detractors argue these modern reactors pose threats because they produce plutonium which can be used to make nuclear weapons. Regardless of these critiques, the Biden administration is pushing forth with the hope of producing 900 kilograms per year of the fissile material by as soon as 2024. –WC

Power Surge 14.4

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