Tuesday, March 14, 2023

Norway’s Oil Fund Held Over $260M In Failed SVB Banking Group

Norway’s oil fund held over $263 million in Signature Bank and SVB Financial Group, the owner of Silicon Valley Bank (SVB), which failed spectacularly over the weekend, sparking government intervention. 

MarketWatch reports that the Norwegian sovereign wealth fund (SWF) held around $263 million in SVB Financial Group and Signature Bank, based on last week’s valuations. 

"This is the biggest U.S. bank collapse since the financial crisis and we are closely monitoring the situation in the market," Norges Bank Investment Management (NBIM), which manages the SWF, said in an emailed statement to MarketWatch. 

Both Silicon Valley Bank (SVB) and Signature Bank have now been taken over by the federal authorities. 

SVB, the go-to lender for tech startups backed by venture capitalists, failed dramatically on Friday, with shares plunging 60% before the SEC halted trading. On Wednesday, the bank announced a massive capital raise, saying it would sell $2.25 billion in new shares to fix the balance sheet. That spooked investors, who feared the high share of uninsured deposits, creating a panic and a run on the bank. Shares tanked on Thursday, leading to an FDIC takeover on Friday. 

On Sunday, Washington launched emergency measures to avoid the contagion spreading into a wider financial crisis. The Biden administration pledged that banks will bear the losses, not taxpayers. 

The failure of these regional banks has sparked fears of a contagion spreading and leading to another financial crisis on the level of the Lehman Brothers collapse. Those fears have led to a drop in oil prices on Monday, and a battered Dow. 

Oil prices plunged as much as 5% before the opening bell on Monday, retracing somewhat by the early afternoon. As of 1:25 p.m. EST on Monday, both Brent and WTI were trading down 1.86%. 

Chinese Oil Drillers Set New Asian Depth Record

Oil drillers in China set a new record for well depth, drilling 9,396 meters into the ground for what has become the deepest oil well in Asia, Chinese media have reported.

The record well is part of a new phase in the development of an oil field in the Taklamakan desert, the biggest one in China. The Tarim field can now become a benchmark for other field development in the country, the People’s Daily noted in a report on the news.

The Tarim oil field sports some of the deepest wells in China, with 72 of them more than 8,000 meters deep and more than 1,600 wells with depths of over 6,000 meters. The so-called ultradeep wells are part of efforts in China’s crude oil industry to boost local oil and gas production to reduce the country’s still overwhelming dependence on imports.

Last year, China produced 204.7 million tons of crude one, an increase of 2.9 percent on the year, which was roughly equal to 4.11 million barrels daily. Imports, however, were more than twice that, at a total 508.3 million tons, or about 10.2 million barrels daily.

Because of its dependence on imports, China has become the single price swing factor among consuming nations, with doubts and hopes about its oil demand this year moving oil prices most of the time since Beijing announced the end of its zero-Covid policy.

This year, analysts expect China to import a record amount of crude oil thanks to new refineries coming online and travel rebounding after last year’s lockdowns. The consensus demand growth forecast of Wood Mackenzie, S&P Global, Energy Aspects, and FGE is between 500,000 bpd and 1 million bpd. This would push total imports to up to 11.8 million barrels daily, beating the record set last year, despite the lockdowns.

By Charles Kennedy for Oilprice.com

ING Further Restricts Lending To The Oil And Gas Industry

ING is further restricting financing to the oil and gas industry, reducing the volume of traded oil and gas it finances and no longer financing midstream infrastructure for new oil and gas fields, the Netherlands-based bank said on Tuesday.  

Last year, ING said it would aim to grow new financing of renewable energy by 50% by year-end 2025 and would no longer provide dedicated finance to new oil and gas fields.

Under the policy from last year, ING doesn’t provide dedicated upstream finance – lending or capital markets – for oil and gas fields approved for development after December 31, 2021.

Now the bank is also expanding that approach to midstream oil and gas, it said today, adding that it would respect the existing commitments to its clients.

Still, ING is not outright stopping financing for all fossil fuels, because “There simply isn’t enough green energy yet, and even in the future a net-zero world will not equal a completely fossil-free world.”

Financing fossil fuels is a “balancing act,” ING said in today’s statement, noting that “We want to balance our climate action with our societal role to ensure energy remains affordable and available for people and companies.”

Many banks have moved to restrict financing to fossil fuels over the past year, but ING has one of the most ambitious policies in lending to oil and gas.

Early this month, Deutsche Bank said it would start implementing a stricter policy for coal financing as part of additional measures to reinforce its net-zero commitment, adding that it would also update its oil and gas policy at some point. Deutsche Bank could announce some updates on its oil and gas lending policy in its Non-Financial Report which will be published on March 17, 2023.

Last month, Barclays said it would no longer provide financing to oil sands companies or oil sands projects and tightened conditions for thermal coal lending in an updated policy, which, however, fell short of announcing overall pledges or targets in funding oil and gas.

By Tsvetana Paraskova for Oilprice.com

Can Double-Sided Solar Panels Help Meet Global Energy Demands?

  • The SUNLAB team at the University of Ottawa has developed a new method for measuring solar energy produced by bifacial solar panels.

  • This methodology takes into account external effects of ground cover such as snow, grass and soil, providing consistent testing for bifacial panel performance under varying illumination conditions.

  • Implementing this method into international standards can enable accurate comparisons of bifacial panel technologies, application-specific optimization and standardization of bifacial panel power ratings.

University of Ottawa’s laboratory in photonics and renewable energy has developed a new method for measuring the solar energy produced by bifacial solar panels. The double-sided solar technology is expected to meet increased global energy demands into the future.

Published in the journal Joule, this study from the SUNLAB team in the Faculties of Engineering and Science proposes a characterization method that will improve the measurement of bifacial panels indoors by considering external effects of ground cover such as snow, grass and soil. This will provide a way to consistently test bifacial solar panel performance indoors that accurately represents how the panels will perform outdoors.

With bifacial photovoltaics expected to provide over 16% of global energy demand by 2050, the SUNLAB’s methodology will improve international device measurement standards which currently do not distinguish between ground cover.

Erin Tonita, lead author and a physics PhD student studying under Professor Karin Hinzer, whose research group develops new ways to harness the sun’s energy explained, “Our proposed characterization method, the scaled rear irradiance method, is an improved method for indoor-measuring and modeling of bifacial devices that is representative of outdoor environmental conditions. Incorporating this new method into future bifacial standards would provide a consistent methodology for testing bifacial panel performance under ground conditions including snow, grass, and soil, corresponding to globally varying illumination conditions.”

Photovoltaics is the study of converting solar energy into electricity through semiconducting materials, such as silicon. In bifacial solar panels, the semiconducting material is wedged between two sheets of glass to allow for sunlight collection on both sides, with one side typically angled towards the sun and the other side angled towards the ground. The additional light collected by bifacial solar panels on the rear-side offers an advantage over traditional solar panels, with manufacturers touting up to a 30% increase in production compared to traditional solar panels. Bifacial solar panels are also more durable than traditional panels and can produce power for over 30 years.

“Implementation of this method into international standards for such panels can enable predictions of outdoor bifacial panel performance to within 2% absolute,” said Tonita, who expects the benefits of this methodology to include:

  • Allowing comparisons between existing and emerging bifacial technologies.
  • Enhancing performance via ground cover specific design optimization.
  • Increasing solar panel deployments in non-traditional markets.
  • Reducing investment risk in bifacial panel deployments.
  • Improving bifacial panel manufacture datasheets.

Professor Hinzer, founder of SUNLAB and the University Research Chair in Photonic Devices for Energy and a Professor at the School of Electrical Engineering and Computer Science said, “This method is of particular importance as renewable energy penetration increases towards a net-zero world, with bifacial photovoltaics projected to contribute over 16% of the global energy supply by 2050, or around 30,000 TWh annually.”

“This will extend current International Electrochemical Commission standards for bifacial solar panel measurements, enabling accurate comparisons of bifacial panel technologies, application-specific optimization, and the standardization of bifacial panel power ratings,” adds Hinzer, whose SUNLAB researchers worked in collaboration with Arizona State University for the study,” she added.

Housed at the University of Ottawa’s Centre for Research in Photonics, SUNLAB is the premier Canadian modeling and characterization laboratory for next generation bifacial, multi-junction, and concentrator solar devices.

***

This likely makes a great deal of sense to our northern neighbors. With an oblique angle to the solar radiation and much more of the year with lighter ground cover such as snow plus a more robust build and a very long lifespan the attractions must size the attention with a bit of relief.

The attributes are quite encouraging and may well find their way further south to a warmer welcome.

By Brian Westenhaus for New Energy and Fuel

Russia Can’t Afford To Continue Exporting Arms

  • Russian arms exports have collapse in recent years. 

  • The Kremlin’s need to conserve weaponry for its war in Ukraine, along with western sanctions are crushing its ability to sell arms.

  • The United States has increased arms sales, with its share rising to 40%.

Russia’s share of global arms exports declined sharply in the most recent five-year period, as Western sanctions against Moscow and the Kremlin's own need to conserve weaponry for its ongoing war effort in Ukraine limited sales abroad, new data from an influential research group showed.

Russia’s share of global arms exports declined from 22 percent in the 2013-17 period to 16 percent in 2018-22, according to a report by the Stockholm International Peace Research Institute (SIPRI) published on March 13.

Meanwhile, the United States remained the global leader in arms exports, with its share rising to 40 percent from 33 percent in the same five-year period.

"It is likely that the invasion of Ukraine will further limit Russia's arms exports," said Pieter Wezeman, a senior SIPRI researcher.

“This is because Russia will prioritize supplying its armed forces, and demand from other states will remain low due to trade sanctions on Russia and increasing pressure from the U.S.A. and its allies not to buy Russian arms,” he added.

SIPRI noted that arms exports worldwide have long been dominated by the United States and Russia, with the two countries ranking first and second over the past three decades.

But Russia’s gap over France, the third-biggest exporter, narrowed, with Paris’s share rising to 11 percent from 7.1 percent.

"France is gaining a bigger share of the global arms market as Russian arms exports decline, as seen in India, for example," Wezeman said. “This seems likely to continue, as by the end of 2022, France had far more outstanding orders for arms exports than Russia.”

U.S. arms exports rose 14 percent from the 2013-17 period to 2018-22, while Russia’s exports tumbled 31 percent. France’s exports rose 44 percent, mainly to states in Asia, Oceania, and the Middle East.

India received 30 percent of France’s arms in the recent five-year period, surpassing the United States as the second-largest supplier of weaponry to New Delhi.

Russian remained the largest supplier to India of arms exports and managed to increase sales to two large nations -- China by 39 percent and Egypt by 44 percent over the period.

Ukraine became the third-largest arms importer globally in 2022 as Kyiv continues to battle against the full-scale invasion by Russian forces, a major change from the nation’s actions over previous decades.

“From 1991 until the end of 2021, Ukraine imported few major arms,” the report said. “As a result of military aid from the U.S.A. and many European states following the Russian invasion of Ukraine in February 2022, Ukraine became the third-biggest importer of major arms during 2022 [after Qatar and India].”

It said Ukraine accounted for 2 percent of global arms imports in the five-year period.

European NATO nations hiked their arms imports 65 percent “as they sought to strengthen their arsenals in response to a perceived heightened threat from Russia,” the report said.

“Following Russia’s invasion of Ukraine, European states want to import more arms, faster,” Wezeman added.

The European increase came as the global level of international arms transfers dipped 5.1 percent over the five-year period.

SIPRI, an independent international institute focusing on research into conflict, armaments, arms control and disarmament, was established in 1966.

By RFE/RL

LA REVUE GAUCHE - Left Comment: Search results for PERMANENT ARMS ECONOMY 

The Environmental Implications Of A Hydrogen Economy

  • A new study has been published in Nature Communications, which shows that above a certain threshold, hydrogen emissions can react with the same molecule responsible for breaking down methane and lead to decades-long climate consequences.

  • This research poses environmental and technological concerns around hydrogen’s potential as a clean fuel and demands careful management of emissions from hydrogen production.

  • The risk is compounded for hydrogen production methods using methane as an input, further highlighting the critical need to manage and minimize emissions from hydrogen production.

Often heralded as the clean fuel of the future, new hydrogen research suggests that a leaky hydrogen infrastructure could end up increasing atmospheric methane levels. Hydrogen’s potential as a clean fuel could be limited by a chemical reaction in the lower atmosphere, which would cause decades-long climate consequences.

The research from Princeton University and the National Oceanic and Atmospheric Association has been published in Nature Communications, in which researchers modeled the effect of hydrogen emissions on atmospheric methane.

This is because hydrogen gas easily reacts in the atmosphere with the same molecule primarily responsible for breaking down methane, a potent greenhouse gas. If hydrogen emissions exceed a certain threshold, that shared reaction will likely lead to methane accumulating in the atmosphere with those decades-long climate consequences.

Matteo Bertagni, a postdoctoral researcher at the High Meadows Environmental Institute working on the Carbon Mitigation Initiative said, “Hydrogen is theoretically the fuel of the future. In practice, though, it poses many environmental and technological concerns that still need to be addressed.”

Bertagni is the first author of the research where it was found that above a certain threshold, even when replacing fossil fuel usage, a leaky hydrogen economy could cause near-term environmental harm by increasing the amount of methane in the atmosphere. The risk for harm is compounded for hydrogen production methods using methane as an input, highlighting the critical need to manage and minimize emissions from hydrogen production.

Amilcare Porporato, Thomas J. Wu ’94 Professor of Civil and Environmental Engineering and the High Meadows Environmental Institute noted, “We have a lot to learn about the consequences of using hydrogen, so the switch to hydrogen, a seemingly clean fuel, doesn’t create new environmental challenges.” Porporato is a principal investigator and member of the Leadership Team for the Carbon Mitigation Initiative and is also associated faculty at the Andlinger Center for Energy and the Environment.

The problem boils down to one small, difficult-to-measure molecule known as the hydroxyl radical (OH). Often dubbed “the detergent of the troposphere,” OH plays a critical role in eliminating greenhouse gases such as methane and ozone from the atmosphere.

The hydroxyl radical also reacts with hydrogen gas in the atmosphere. And since a limited amount of OH is generated each day, any spike in hydrogen emissions means that more OH would be used to break down hydrogen, leaving less OH available to break down methane. As a consequence, methane would stay longer in the atmosphere, extending its warming impacts.

According to Bertagni, the effects of a hydrogen spike that might occur as government incentives for hydrogen production expand could have decades-long climate consequences for the planet.

Bertagni said, “If you emit some hydrogen into the atmosphere now, it will lead to a progressive build-up of methane in the following years. Even though hydrogen only has a lifespan of around two years in the atmosphere, you’ll still have the methane feedback from that hydrogen in 30 years from now.”

In the study, the researchers identified the tipping point at which hydrogen emissions would lead to an increase in atmospheric methane and thereby undermine some of the near-term benefits of hydrogen as a clean fuel. By identifying that threshold, the researchers established targets for managing hydrogen emissions.

“It’s imperative that we are proactive in establishing thresholds for hydrogen emissions, so that they can be used to inform the design and implementation of future hydrogen infrastructure,” said Porporato.

For hydrogen referred to as green hydrogen, which is produced by splitting water into hydrogen and oxygen using electricity from renewable sources, Bertagni said that the critical threshold for hydrogen emissions sits at around 9%. That means that if more than 9% of the green hydrogen produced leaks into the atmosphere, whether that be at the point of production, sometime during transport, or anywhere else along the value chain, atmospheric methane would increase over the next few decades, canceling out some of the climate benefits of switching away from fossil fuels.

And for blue hydrogen, which refers to hydrogen produced via methane reforming with subsequent carbon capture and storage, the threshold for emissions is even lower. Because methane itself is the primary input for the process of methane reforming, blue hydrogen producers have to consider direct methane leakage in addition to hydrogen leakage. For example, the researchers found that even with a methane leakage rate as low as 0.5%, hydrogen leakages would have to be kept under around 4.5% to avoid increasing atmospheric methane concentrations.

“Managing leakage rates of hydrogen and methane will be critical,” Bertagni said. “If you have just a small amount of methane leakage and a bit of hydrogen leakage, then the blue hydrogen that you produce really might not be much better than using fossil fuels, at least for the next 20 to 30 years.”

The researchers emphasized the importance of the time scale over which the effect of hydrogen on atmospheric methane is considered. Bertagni said that in the long-term (over the course of a century, for instance), the switch to a hydrogen economy would still likely deliver net benefits to the climate, even if methane and hydrogen leakage levels are high enough to cause near-term warming. Eventually, he said, atmospheric gas concentrations would reach a new equilibrium, and the switch to a hydrogen economy would demonstrate its climate benefits. But before that happens, the potential near-term consequences of hydrogen emissions might lead to irreparable environmental and socioeconomic damage.

Thus, if institutions hope to meet mid-century climate goals, Bertagni cautioned that hydrogen and methane leakage to the atmosphere must be held in check as hydrogen infrastructure begins to roll out. And because hydrogen is a small molecule that is notoriously difficult to control and measure, he explained that managing emissions will likely require researchers to develop better methods for tracking hydrogen losses across the value chain.

“If companies and governments are serious about investing money to develop hydrogen as a resource, they have to make sure they are doing it correctly and efficiently,” Bertagni said. “Ultimately, the hydrogen economy has to be built in a way that won’t counteract the efforts in other sectors to mitigate carbon emissions.”

***

There are lots of “ifs” revealed with this kind of research. Hydrogen isn’t formed for free or even particularly efficiently so far. Storage and transport is very much up in the air with lots of seemingly good ideas forthcoming. But none seem to be in that 100% contained zone.

At the consumption end little thought is offered on the volatility and danger in having hydrogen out as a consumer product.

Finally now we can see that freed hydrogen isn’t simply going to whiz off into outer space. First round modeling shows one significant problem.

Nature figured out hundreds of millions of years ago that the best energy store on this planet is hydrogen linked to carbon. There is a lesson from the past . . .

Hydrogen linked to carbon has covered the earth with life.

By Brian Westenhaus via New Energy and Fuel