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energy transition

As Oil Companies Stay Lean, Workers Move to Renewable Energy

By Clifford Krauss - New York Times, February 27, 2023

Solar, wind, geothermal, battery and other alternative-energy businesses are adding workers from fossil fuel companies, where employment has fallen.

Emma McConville was thrilled when she landed a job as a geologist at Exxon Mobil in 2017. She was assigned to work on one of the company’s most exciting and lucrative projects, a giant oil field off Guyana.

But after oil prices collapsed during the pandemic, she was laid off on a video call at the end of 2020. “I probably blacked out halfway,” Ms. McConville recalled.

Her shock was short-lived. Just four months later, she landed a job with Fervo, a young Houston company that aims to tap geothermal energy under the Earth’s surface. Today she manages the design of two Fervo projects in Nevada and Utah, and earns more than she did at Exxon.

“Covid allowed me to pivot,” she said. “Covid was an impetus for renewables, not just for me but for many of my colleagues.”

Oil and gas companies laid off roughly 160,000 workers in 2020, and they maintained tight budgets and hired cautiously over the last two years. But many renewable businesses expanded rapidly after the early shock of the pandemic faded, snapping up geologists, engineers and other workers from the likes of Exxon and Chevron. Half of Fervo’s 38 employees come from fossil fuel companies, including BP, Hess and Chesapeake Energy.

Executives and workers in energy hubs in Houston, Dallas and other places say steady streams of people are moving from fossil fuel to renewable energy jobs. It’s hard to track such movements in employment statistics, but the overall numbers suggest such career moves are becoming more common. Oil, gas and coal employment has not recovered to its prepandemic levels. But the number of jobs in renewable energy, including solar, wind, geothermal and battery businesses, is rising.

From Rigs to Riches: The promise of oil and gas decommissioning in a just transition

By Peder Ressem Østring - Just Transition Research Collaborative, February 24, 2023

The recycling of oil rigs can provide new jobs within the circular economy, particularly beneficial for oil-dependent regions. If we get it right, the process of cleaning up after the fossil economy can itself serve as a bridge from fossil dependency towards a just transition.

Globally, there are over 7000 offshore oil and gas platforms. Together with other structures and pipelines, these form an impressive built environment. If we are to have a fighting chance of keeping global warming well below 2°C however, virtually all of these installations would have to be shut down, dismantled and recycled. This process — known as offshore decommissioning — is already taking place, but will see a dramatic increase in the coming decade. It will be increasingly necessary to confront the ways in which decommissioned infrastructure is handled, both with regards to the environment and labour conditions.

A case study of the decommissioning of oil and gas infrastructure in the North Sea shows some of both the possibilities and challenges decommissioning presents in terms of a just transition.

While some oil companies would like to leave the oil platforms in the sea, eagerly promoting the idea of repurposing old rigs as artificial reefs, this is not allowed under current regulation. After the plans of Royal Dutch Shell of dumping the oil storage tanker Brent Spar in the North Sea in the 1990s was met with massive public scrutiny and campaigns from environmental organizations, regulations came in place that effectively banned the practice of abandoning manufactured structures in the North-East Atlantic.

Companies have since sought other ways of disposing of the problem with structures put out of commission. Another approach for cutting costs for the oil supermajors has been to send old floating rigs for breaking in the global South. This has taken place under horrendous conditions for both workers and the environment, as has been uncovered by the BBC.

Both these false solutions are in reality ways of externalizing costs of cleaning up after the fossil companies. Both approaches should be rejected, while insisting on the principle that the polluter should pay.

Alberta’s Roadmap to the New Energy Economy

By Simon Dyer - Pembina Institute, February 21, 2023

Alberta has always been an international leader on energy. Our abundant natural resources, coupled with our proud history of technological innovation in the oil and gas sector— particularly the oilsands—means we are renowned for our ability to use a skilled labour force to reach new frontiers in energy production.

In 2023, Alberta has an opportunity to build on that history and move towards a new energy future. In doing so, it can begin to capitalize on the multiple opportunities associated with the globally emerging clean economy.

To achieve this, Alberta needs a robust, credible plan on climate and energy. The number of governments worldwide that are legislating emissions reduction targets and policy measures to deliver them is rapidly growing each year, and it is time that Alberta joined them. This province — home to some of the world’s foremost experts on carbon capture technology, methane reduction techniques, wind and solar power, and so many other clean energy solutions— has much to offer to the energy transition, and much to gain. The International Energy Agency, for example, estimates 14 million new energy jobs and 16 million new jobs in energy efficiency will be created, worldwide, between now and 2050.

To take advantage of these opportunities, Alberta must also be willing to confront the realities of the global shift towards low-carbon energy sources, and take steps to adapt and futureproof its economy and workforce. The global outlook for fossil fuels, for example, has fundamentally shifted in the last twelve months. In 2022, for the first time, a range of assessments — including from within the oil industry — projected that the current level of worldwide policy momentum on emissions reductions will result in a sustained decline in global demand for oil, beginning this decade. If the world successfully achieves its goal of reaching net-zero emissions by 2050 and avoiding the worst effects of climate change, that demand decline will begin sooner and be steeper — and will have a significant impact on Alberta’s industry. 

Acknowledging these realities, and choosing to show leadership on climate and energy policy, is integral to Alberta’s overall attractiveness as an investment destination. Now more than ever before, companies are looking for opportunities to invest in climate solutions, and for jurisdictions where they can operate while meeting their own climate goals. Choosing instead to remain out of step with the global trend towards low-emissions economies would leave Alberta at a significant disadvantage in the years ahead.

The Pembina Institute is, and has always been, proudly headquartered in Alberta; this is our home. We are committed to seeking out effective, evidence-based policy solutions that can support this province’s communities, economy, and environment. 

As the 2023 provincial election approaches, this document provides our recommendations to future leaders in Alberta to advance this province’s position in the transition towards low-carbon energy. Above all, we think Alberta can and should be a leader on climate and the energy transformation in Canada.

Read the report (link).

The Democratic Party Failed Striking Warrior Met Coal Miners in Alabama

By Hamilton Nolan - In These Times, February 20, 2023

Web editor's note: the author repeats the debatable claim that working class voters have gravitated towards Trumpism and the Republican Party, but in actual fact, it's white, rural, (mostly male) residents who earn less than $70,000 US annually without college degrees that have made this shift, but such voters do not represent the majority of the working class, and many of them are not actualy working class at all, so this shift is vastly overstated. That said, the condemnation of the Democratic Party us well deserved anyway:

Political strategists seem content to cede red states to Republicans, and thereby confirm for the working people living in those states that their belief that Democrats don't really care about them is justified.

After almost two years on the picket line, the hundreds of United Mine Workers of America members who have been on strike at Warrior Met Coal in Alabama have offered to go back to work. They still do not have the fair contract they have sacrificed so much for. Their negotiations will continue, but they did not win this strike—and that is tragic. The company and its private equity owners bear the most direct responsibility for precipitating this heartless, inhuman struggle. But if you are looking for a meaningful place to focus your rage over the way that this strike has turned out, look directly at the Democratic Party.

Imagine, hypothetically, that we were living in a period of history in which inequality has soared for a half-century, thanks in large part to the decline of unions and working-class bargaining power; in which the American Dream has been hollowed out, and decades of economic gains have flowed almost exclusively to the rich; in which poorly designed free trade policies supported by Democrats have sucked middle America dry of once-abundant blue-collar jobs; in which the obvious failures of neoliberalism to rectify this situation have soured millions of once-reliable blue voters on the Democratic Party, and tempted them into a Republican Party that offers easy scapegoats for systemic problems; in which this toxic lack of opportunity paved the way for a xenophobic, lying narcissist to spend four years in the White House on the strength of racist fables about making America great again. Imagine, further, that after those dark four years, Democrats were back in power; that they had a leader who proclaimed himself the most pro-union president of our lifetimes; and that he led a party that fretted continuously about how to win back working-class voters from the clutches of Trumpism.

Then imagine that there was a long, grinding strike. By coal miners. In Alabama. Who were fighting against the predations of the sort of ultra-insulated capitalist financiers who are accelerating the inequality crisis. Imagine that walkout became the longest major strike in America, dragging on well past the point when most people would have given up, with the strikers assaulted by oppressive police and court rulings. And yet, for month after month, these workers persevered, held the line, and sacrificed greatly in order to fight for dignity and the fundamental ability for working people to be treated fairly by the faceless forces of capital.

'Only the Beginning': Democrats' IRA Set to Create 100,000+ US Green Jobs

By Brett Wilkins - Common Dreams, February 6, 2023

A leading climate action group on Monday published a report revealing that the 94 clean energy projects announced since U.S. President Joe Biden signed the Inflation Reduction Act into law last August are set to create more than 100,000 green jobs.

Climate Power—which published the report as part of a new six-figure national ad campaign touting the growing green economy—said that since the IRA became law without any Republican support last year, "companies are racing forward with massive investments to build our clean energy future."

"New manufacturing in wind, solar, batteries, and electric vehicles—along with storage projects across the country—mean new, good-paying jobs for hard-working Americans," the group continued. "In the six months since the landmark climate and clean energy investments became law, clean energy companies have announced more than 100,000 new clean energy jobs for electricians, mechanics, construction workers, technicians, support staff, and many others."

"As the largest U.S. investment in clean energy and climate in history, this national clean energy plan will continue to reshape and recharge our economy for many decades to come," Climate Power added.

While green groups have generally praised the IRA's historic $369 billion investment in renewable energy production and innovation, activists have condemned provisions including fossil fuel tax credits and mandatory lease sales on public lands and at sea.

The 94 new clean energy projects in the Climate Power report—which are spread across 31 states and have a combined investment value of $89.5 billion—include:

Forty new battery manufacturing sites in places like Van Buren Township, Michigan; Tucson, Arizona; and Florence County, South Carolina. So far, 22 companies have announced plans for new or expanded electric vehicle manufacturing in Pryor, Oklahoma; Montgomery, Alabama; Highland Park, Michigan—and more. A further 24 companies shared plans to expand wind and solar manufacturing in cities including Pueblo, Colorado; Perrysburg, Ohio; and Georgetown, Texas. The majority of the projects are in seven states—Arizona, Georgia, Michigan, Ohio, South Carolina, Tennessee, and Texas.

"Thanks to President Biden's affordable clean energy plan, businesses are investing in manufacturing like never before, and planning to create good-paying jobs in every corner of the country," Climate Power executive director Lori Lodes said in a statement.

"This is only the beginning—we're months after the passage of the Inflation Reduction Act and we're already at the precipice of a renewed manufacturing, made-in-America boom that will create opportunities for millions of Americans, all while reducing toxic emissions that harm the health and wellbeing of our communities," Lodes added.

Last month, the International Energy Agency said in a report that "the world is at the dawn of a new industrial age—the age of clean energy technology manufacturing," and that green manufacturing jobs will more than double by the end of the decade if countries worldwide live up to their climate and energy pledges—a huge "if" given that global emissions remain at record levels.

Read the report (Link).

How Much Will It Take For A Just Climate Transition In Spain?

By Carolyn Fortuna - Clean Technica, February 4, 2023

Spain will receive almost €869 million from the Just Transition Fund to kickstart its energy transformation in equitable ways.

It’s imperative that the climate transition in Spain work to phase out coal for energy production ahead of its 2030 initial energy scheme planning. If successful, the end result will be a region invested in energy efficiency, circular economy, and clean energy sources. It will foster economic resilience, renewables, and jobs.

And it looks like it just might happen. Spain will receive almost €869 million from the Just Transition Fund (JTF) following the adoption of the Just Transition Program, which includes its Territorial Just Transition Plan (TJTP).

The Just Transition Mechanism (JTM) is a key tool to ensure that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind. The JTM addresses the social and economic effects of the transition, focusing on the regions, industries, and workers who will face the greatest challenges, through 3 pillars.

  • A new Just Transition Fund of €19.2 billion in current prices, is expected to mobilize around €25.4 billion in investments.
  • The InvestEU “Just Transition” scheme will provide a budgetary guarantee under the InvestEU program across the 4 policy windows and an InvestEU Advisory Hub that will act as a central entry point for advisory support requests. It is expected to deploy €10-15 billion in mostly private sector investments.
  • A new Public Sector Loan Facility will combine €1.5 billion of grants financed from the EU budget with €10 billion of loans from the European Investment Bank, to marshall €18.5 billion of public investment.

The JTF will invest in solar, offshore wind, renewable hydrogen, and the green transformation of the country’s industry in several concerning areas, according to the EU:

  • the province of A Coruña in Galicia
  • the provinces of Teruel in Aragón, León, and Palencia in Castilla y León
  • the provinces of Almería, Cádiz, and Córdoba in Andalusia
  • a group of municipalities around Alcúdia on the island of Mallorca

The region of Asturias will receive almost one third of the Spanish JTF funding, in part to support an innovation hub for artificial intelligence in a former mining site.

Preliminary Assessment of Economic Benefits of Offshore Wind: Related to Seaport Investments and Workforce Development

By Paul Deaver and Jim Bartridge - California Energy Commission, February 2023

This report responds to the directive set forth by Assembly Bill 525 (AB 525, Chiu, Chapter 231, Statutes of 2021). The law directs that on or before December 31, 2022, the California Energy Commission (CEC) shall “complete and submit to the Natural Resources Agency and relevant fiscal and policy committees of the Legislature a preliminary assessment of the economic benefits of offshore wind as they relate to seaport investments and workforce development needs and standards.” This report addresses these requirements.

This report is the second of four products that AB 525 directs the CEC to prepare, informing a strategic plan for offshore wind energy turbines installed off the California coast in federal waters in coordination with federal, state, and local agencies and a wide variety of stakeholders. The strategic plan must be submitted to the California Natural Resources Agency and the Legislature no later than June 30, 2023. The strategic plan is to be informed by interim activities and products developed by the CEC that include this report and two additional reports. The first report, Offshore Wind Energy Development off the California Coast: Maximum Feasible Capacity and Megawatt Planning Goals for 2030 and 2045, was adopted by the CEC at the August 10, 2022, public business meeting. That report established offshore wind energy planning goals of 2,000–5,000 megawatts by 2030 and 25,000 megawatts by 2045. The other interim report, also due on or before December 31, 2022, will provide a permitting roadmap that describes the time frames and milestones for a coordinated, comprehensive, and efficient permitting process for offshore wind energy facilities and associated electricity transmission infrastructure off the California coast.

For more details, see: AB 525 Reports: Offshore Renewable Energy

Download a copy of this publication here (PDF).

Episode 1: Dreaming of Abandoned Wells

An EV in Every Driveway Is an Environmental Disaster

By Alissa Walker - Curbed, January 25, 2023

“There is always a huge climate benefit — and, I would argue, a safety benefit — to ensuring people have access to excellent public transit,” Transportation Secretary Pete Buttigieg said earlier this month at the Transportation Research Board’s annual meeting. “Even if we weren’t aggressively working to decarbonize existing modes of transportation, that alone is one of the biggest and the best things we can do from a climate perspective.” This is the closest thing to a mic drop that exists at such an event, so the assembled transportation academics, urban planners, and civil engineers erupted into applause. Buttigieg had to pause, letting the hoots fade out before he could finish his remarks. He was onstage with Energy Secretary Jennifer Granholm to announce the first blueprint to decarbonize U.S. transportation by 2050, an unprecedented collaboration between the Departments of Transportation, Energy, and Housing and Urban Development and the Environmental Protection Agency to move the country away from using fossil fuels when, well, moving around.

Despite its many strengths, the blueprint is largely built around two things that have very little to do with what got Buttigieg the most applause from transit professionals: It’s heavily reliant on developing technologies that don’t exist yet and the Biden administration’s goal to have half of the new vehicles sold in 2030 to be electric (a figure closely negotiated with automakers). The latter point is perhaps why the slow but steadily growing number of electric vehicles, or EVs, sold in this country each year has become its own kind of shorthand for the decarbonization revolution. (“Electric Vehicles Keep Defying Almost Everyone’s Predictions,” “Electric Vehicle Sales Hit a Tipping Point in 2022,” “Electric Vehicles = 10% Of New Vehicle Sales Globally!”) A green future, the story goes, looks a lot like today — it’s just that the cars on the road make pit stops at charging stations instead of gas stations. But a one-for-one swap like that — an EV to take the place of your gas guzzler — is a disaster of its own making: a resource-intensive, slow crawl toward a future of sustained high traffic deaths, fractured neighborhoods, and infrastructural choices that prioritize roads over virtually everything else. And considering what it would take to produce that many cars, the vision being sold by the Biden administration about an EV in every driveway is more than just a fantasy — it’s an environmental nightmare.

A zero emissions future without the mining boom: A new report finds that the U.S. can reduce lithium demand by up to 90 percent

By Blanca Begert and Lylla Younes - Grist, January 24, 2023

The effort to shift the U.S. economy off fossil fuels and avoid the most disastrous impacts of climate change hinges on the third element of the periodic table. Lithium, the soft, silvery-white metal used in electric car batteries, was endowed by nature with miraculous properties. At around half a gram per cubic centimeter, it’s the lightest metal on Earth and is extremely energy-dense, making it ideal for manufacturing batteries with a long life. 

The problem is, lithium comes with its own set of troubles: Mining the metal is often devastating for the environment and the people who live nearby, since it’s water intensive and risks permanently damaging the land. The industry also has an outsized impact on Native Americans, with three-quarters of all known U.S. deposits located near tribal land. 

Demand for lithium is expected to skyrocket in the coming decades (up to 4,000 percent according to one estimate), which will require many new mines to meet it (more than 70 by 2025). These estimates assume the number of cars on the road will remain constant, so lithium demand will rise as gas guzzlers get replaced by electric vehicles. But what if the United States could design a policy that eliminates carbon emissions from the transportation sector without as much mining? 

A new report from the Climate and Community Project, a progressive climate policy think tank, offers a fix. In a paper out on Tuesday, the researchers estimated that the U.S. could decrease lithium demand up to 90 percent by 2050 by expanding public transportation infrastructure, shrinking the size of electric vehicle batteries and maximizing lithium recycling. They claim that this report is the first to consider multiple pathways for getting the country’s cars and buses running on electricity and suppressing U.S. lithium demand at the same time. 

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