Electric Vehicles Begin To Bite Into Oil Demand

 

Projections have suggested that the advent of electric vehicles will have a dramatic impact on oil demand and now its starting to show. With China adding the equivalent of London’s bus fleet every 5 weeks, that’s 279,000 barrels of oil a day removed from demand.

The latest report from Bloomberg New Energy shows that economics are driving the change, with the total cost of ownership of electric buses far outperforming the alternatives. The report says a 110kWh battery e-bus coupled with the most expensive wireless charging reaches parity with a diesel bus on total cost of ownership at around 60,000 km traveled per year (37,000 miles). This means that a bus with the smallest battery, even when coupled with the most expensive charging option, would be cheaper to run in a medium-sized city, where buses travel on average 170km/day (106 miles).

Today large cities with high annual bus mileages therefore choose from a number of electric options, all cheaper than diesel and CNG buses. The BNEF report says, ‘Even the most expensive electric bus at 80,000km per year has a TCO of $0.92/km, just at par with diesel buses. Compared to a CNG bus, it is around $0.11/km cheaper in terms of the TCO. This indicates that in a megacity, where buses travel at least 220km/day, using even the most expensive 350kWh e-bus instead of a CNG bus could bring around $130,000 in operational cost savings over the 15-year lifetime of a bus.

For every 1,000 battery-powered buses on the road, about 500 barrels a day of diesel fuel will be displaced from the market, according to BNEF calculations. In 2018, the volume of oil-based fuel demand that buses remove from the market may rise 37 % to 279,000 barrels a day, or approximately the equivalent of the oil consumption of Greece. By 2040, this number could rise as high as 8 million barrels per day (bpd).

This will make a significant dent in oil demand but overall the market appears confident that petrochemicals will make up the difference in demand. That question remains open however, as the plastics market particularly continues to evolve.

Stephen George, chief economist at KBC, agrees with the International Energy Agency predictions that petrochemicals will grow to replace transport fuel demand. His projections don’t show a peak in oil demand, rather a plateau around 2040 ranging between 110 and 110 million bpd, with no signs of a peak and drop by 2050.

He does accept that everybody uses different scenarios and that the strategies need to be resilient in facing market change and says, “I see the majors embracing renewables more than previously.” Oil demand however will continue to increase due predominantly to plastics growth.

Today the U.S. is the biggest per capita consumer of plastics at 150 kg per person per year. That includes bottles, packaging, durable goods (many cars now built out of plastic); 3-d printing and a myriad number of uses. Europe and Japan are not far behind and George predicts that demographics and the growth of the middle class will drive up the global average which is currently 45 kgs per person per year.

China alone has gone from 5kgs to the global average in 5 years and is expected to drag the global average up as it grows. India is bound to follow and while its consumption is roughly around 8-10kgs per capita this is likely to develop rapidly.

So it’s the downstream derivatives of oil that are going to drive demand with George saying, “150kgs per capita is the non combustible oil demand that replaces the transport fuel demand.”

The real question it seems is whether this will be new plastics, or recycled and reused. New methods are arising constantly, driven by new regulation and breakthroughs in technology. In April 2018, it was announced that scientists had accidently discovered an enzyme that eats plastic, which when scaled up could have a significant impact on the way in which plastic is treated within the economy.

At the moment it ends up predominantly as a waste product, clogging up pipes, water sources, beaches and in dumps. If we find a plastics breakthrough, from recycling, to bioplastics to new forms of processing, the future line of oil demand could look very different.

The intersection of innovation and global challenges such as climate change and sustainable development are driving change in the economy. A founder of The Net Imperative Ltd and New Energy Finance (later bought by Bloomberg), author of Conquering Carbon: Carbon Emissions, Carbon Markets and the Consumer and a journalist for many years, I teach on the MSc Global Energy and Climate Policy and Finance, Sustainability and Climate Change at School of Oriental and African Studies at the University of London.

Most Americans say climate change affects their local community, including two-thirds living near coast

A road in Flagler Beach, Florida, washed out by ocean waters stirred up by Hurricane Matthew in October 2016. (Joe Raedle/Getty Images)

A road in Flagler Beach, Florida, washed out by ocean waters stirred up by Hurricane Matthew in October 2016. (Joe Raedle/Getty Images)

 

Roughly six-in-ten Americans (59%) say climate change is currently affecting their local community either a great deal or some, according to a new Pew Research Center survey.

Some 31% of Americans say the effects of climate change are affecting them personally, while 28% say climate change is affecting their local community but its effects are not impacting them in a personal way.

As is the case on many climate change questions, perceptions of whether and how much climate change is affecting local communities are closely tied with political party affiliation. About three-quarters of Democrats (76%) say climate change is affecting their local community at least some, while roughly a third of Republicans say this (35%).

But politics is not the only factor related to these views. Americans who live near a coastline are more likely than those who live further away to say climate change is affecting their local community. Two-thirds of Americans who live within 25 miles of a coastline (67%) say climate change is affecting their local community at least some. In contrast, half of those who live 300 miles or more from the coast say climate change is affecting their community.

This difference exists among both Republicans and Democrats. For example, 42% of Republicans and Republican-leaning independents who live within 25 miles of a coastline say climate change is affecting their local community, compared with 28% of Republicans who live 300 miles or more from the coast. And about eight-in-ten Democrats and Democratic leaners (81%) living within 25 miles of a coastline see a local impact from climate change, compared with 69% of Democrats living at least 300 miles inland.

Scientists say sea levels are rising, and a recent study found this is happening at an increasing rate. Sea level rise could endanger coastal communities, which are especially vulnerable to floods and storm surges.

Americans who live near the coast are also somewhat more likely than those in interior areas to say the effects of climate change are affecting them personally: 37% of those who live within 25 miles of a coastline say this, compared with 25% of those who live 300 or more miles inland.

In the new survey, the Center also asked people who said climate change is affecting their local community to describe those effects in an open-ended format. People who live close to a coastline and people who live further away tend to point to similar effects. For example, 44% of those who live within 25 miles of a coastline and 46% of those who live more than 300 miles away say climate change is currently affecting their community through weather and temperature changes.

Americans in coastal areas differ from those further inland in at least one other way: Those living within 25 miles of a coastline are less likely than those living 300 or more miles away to favor expanding offshore drilling for oil and gas (33% vs 42%). This modest difference reflects the fact that Democrats are more likely than Republicans to live within 25 miles of a coastline, since neither Democrats’ nor Republicans’ views of offshore drilling differ by distance from the coast.

A Pew Research Center survey conducted in January found somewhat lower levels of support for more offshore drilling among those living within 25 miles of a coastline.

Note: To calculate the distance to the nearest point on the U.S. coastline, respondents with valid ZIP codes were located at the ZIP code centroid (from the 2016 definition of the ZIP code tabulation areas provided by the Census Bureau). The minimum distance between each respondent’s ZIP code and the nearest point on the coastline was calculated using the spherical law of cosines approximation.

TOPICS: SCIENCE AND INNOVATION, ENERGY AND ENVIRONMENT, POLITICAL ISSUE PRIORITIES

  1. Photo of Brian Kennedy

    is a research associate focusing on science and society at Pew Research Center.

Sea-level rise: the defining issue of the century | Editorial

May 4, 2018, 8:00 AM

 

No graver threat faces the future of South Florida than the accelerating pace of sea-level rise. In the past century, the sea has risen 9 inches. In the past 23 years, it’s risen 3 inches. By 2060, it’s predicted to rise another 2 feet, with no sign of slowing down.

Think about that. Water levels could easily be 2 feet higher in 40 years. And scientists say that’s a conservative estimate. Because of melting ice sheets and how oceans circulate, there’s a chance South Florida’s sea level could be 3 feet higher by 2060 and as much as 8 feet by 2100, according to the National Oceanic and Atmospheric Administration.

It’s not just a matter of how much land we’re going to lose, though the barrier islands and low-lying communities will be largely uninhabitable once the ocean rises by 3 feet. It’s a matter of what can be saved. And elsewhere, how we’re going to manage the retreat.

You see the evidence several times a year in Miami Beach, the finger isles of Fort Lauderdale and along the Intracoastal Waterway in Delray Beach. During king tides on sunny days, seawater bubbles up through storm drains and over seawalls into lawns, streets and storefronts. That didn’t happen 20 years ago, but it’s going to happen more and more.

JIM MORIN CARTOON 5/6/18 (Climate Change Sea Level Rise)
JIM MORIN CARTOON – Original Credit: Jim Morin – Original Source: Handout (Courtesy)

 

Of the 25 American cities most vulnerable to sea-level rise, 22 are in Florida, according to the nonprofit research group Climate Central. They’re not all along the coast, either. Along with New York City and Miami, the inland cities of Pembroke Pines, Coral Springs and Miramar round out the top five.

Flooding also is increasing in South Florida’s western communities — like Miami-Dade’s Sweetwater and The Acreage in Palm Beach County — because seawater is pushing inward through our porous limestone foundation and upward into our aged flood control systems, diminishing capacity. Sawgrass Mills in western Broward closed for three days last year because the region’s stormwater system couldn’t handle a heavy afternoon thunderstorm. You’ve never seen that before.

The encroaching sea is bringing sea critters, too. Catfish were spotted swimming through floodwater at a Pompano Beach apartment complex west of I-95 last year. And don’t forget the octopus that bubbled up through a stormwater drain in a Miami Beach parking garage.

Not a distant threat

More than the rest of the country, South Floridians get it. The Yale Climate Opinion Maps show 75 percent of us believe global warming is happening, even if we don’t all agree on the cause. We understand that when water gets hotter, it expands. And warmer waters are melting the ice sheets in Greenland and Antarctica. If all of Greenland’s ice were to melt — and make no mistake, it’s melting at an increasing clip — scientists say ocean waters could rise 20 feet.

The problem is, we’re not convinced sea-level rise will harm us in our lifetimes. We’ve got to change that mindset because it already is. Like most of us, Doris Edelman of Hollywood hadn’t heard of king tides five years ago. Now she can’t leave her house those autumn days when king tides lift the Intracoastal Waterway over its banks, over her street and halfway up her driveway. Hers is not an isolated case.

One of the reasons sea-level rise feels like a distant threat is because construction cranes still dot our skylines, the population keeps growing and politicians keep approving new developments.

Yet government officials see the danger ahead. South Florida’s four counties have created a climate compact that, among many things, requires new construction to anticipate that minimal 2-foot rise in water levels by 2060.

However, sea-level rise is not yet on the short-term horizons of the mortgage and insurance industries. Perhaps that’s because lenders generally recoup their money within 10 years and insurers can cancel your policy year to year.

But government officials well know their successors will be stuck with abandoned properties when the water rises. And part of their responsibility will be to clean the debris to ensure pristine ocean water for future generations.

Perhaps you think you’re safe because the flood map shows your home is on high ground. But you still need infrastructure — things like roads, power plants, water treatment facilities, airports and drinking-water wellfields. So while your house may be high and dry, good luck getting to the grocery store, the doctor’s office or out of town.

It’s tricky to trumpet the threat headed our way. Scientists like Harold Wanless, a noted University of Miami coastal geologist, have the freedom to be blunt. He says says the local projection understates the accelerating rate of rise. “By the end of the century and just after,” Wanless says, “South Florida will be a greatly diminished place and sea level will be rising at a foot or more per decade.”

But local leaders fear scaring people and damaging our economy. Though our region is certain to be reshaped, they express confidence that we can adapt if we start planning now to raise roads, elevate buildings, update the region’s 70-year-old flood control system, buy out flood-prone properties and make smart choices about what to save and where to invest.

Leadership lacking elsewhere

At the federal level, little leadership is being shown on the threat of sea-level rise. President Trump recently rolled back the Obama-era order that requires infrastructure projects, like roads and bridges, be designed to survive rising sea levels. And though membership is growing in Congress’ Climate Solutions Caucus, too many Republican members still deny the reality of climate change and sea-level rise, perhaps fearing political retribution by right-wing deniers. U.S. Sen. Marco Rubio resides in that camp.

In Tallahassee, after years of silence on sea-level rise, Gov. Rick Scott this year finally requested $3.6 million — a pittance, really — to help local governments plan. But despite the efforts of some South Florida lawmakers, the issue wasn’t on the Legislature’s agenda, partly because of the politics of climate change and partly because term limits create a revolving door of lawmakers who focus on today’s hot buttons, not tomorrow’s existential threats.

“It’s not something we’ve taken a position on,” Cragin Mosteller, communications director for the Florida Association of Counties, said in December when asked about sea-level rise. “We represent 67 counties who have differing opinions … So for us, we’re trying to focus on the things counties need to manage water.”

Mark Wilson, president of the Florida Chamber of Commerce, says that to get Tallahassee’s attention, we must first raise public awareness. Then, people need to make their voices heard.

“I travel the state more than anybody but the governor. I promise you that people are not demanding that their local House member and their local senator drop what they’re doing and do something about sea-level rise,” Wilson said. “The solution is to raise awareness to it.”

Raising our region’s voice

To that end, the editorial boards of the South Florida Sun Sentinel, Miami Herald and Palm Beach Post — with reporting help from WLRN radio — are joining hands in an unprecedented collaboration this election year to raise awareness about the threat facing South Florida from sea-level rise. In drumbeat fashion, we plan to inform, engage, provoke and build momentum to address the slow-motion tidal wave coming our way.

Sea-level rise is the defining issue of the 21st Century for South Florida. Some of us might not live long enough to see its full effects, but our children and grandchildren will. To prepare for a future that will look far different, we’ve got to start planning and adapting today.

“The Invading Sea” is a collaboration of the editorial boards of the South Florida Sun Sentinel, Miami Herald and Palm Beach Post, with reporting and community engagement assistance from WLRN Public Media. For more information, go to InvadingSea.com

Editorials are the opinion of the Sun Sentinel Editorial Board and written by one of its members or a designee. The Editorial Board consists of Editorial Page Editor Rosemary O’Hara, Elana Simms, Andy Reid and Editor-in-Chief Julie Anderson.

State gives first look at possible Coastal Connector highway routes

All five of the proposed routes meet again at U.S. 27 near Fellowship and west of Golden Ocala Golf and Equestrian Club.

State road planners on Thursday revealed a spaghetti map of possible routes for the proposed “Coastal Connector” highway project — including one that could bring a new interchange at Interstate 75 in north Marion County.

The plan is in its earliest stages and the current study is only gathering public input. The highway would connect north Central Florida with the Tampa area and run through Citrus and Marion County. The new road, likely a toll road, would reduce the strain on Interstate 75 with the goal of keeping up with growth and improving transportation and future emergency evacuations.

The project is decades from fruition with no construction expected before 2045, according to Harry Pinzon, an environmental engineer with the Florida Department of Transportation.

The five routes unveiled on Thursday all start at the end of State Road 589 (Suncoast Parkway) which is now set to end at State Road 44 in Citrus County but could go as far north as County Road 486 in Citrus. From there, the routes split off and would cross over the Withlacoochee River at one of four points between Lake Rousseau to the west and near State Road 200 to the east

All five of the proposed routes meet again at U.S. 27 near Fellowship and west of Golden Ocala Golf and Equestrian Club. The road would continue north and would either follow the current path of State Road 326 east to U.S. Highway 441 or would continue north and exit just south of the U.S. 441/U.S. 301 split. The more northerly route would not mirror an existing road and would need a new interchange at I-75.

While still in the very preliminary stages, Randy and Sally Keller came out to a public meeting held in Crystal River on Thursday evening to see where their property sat in relation to the routes. A similar meeting is set for Ocala on May 1 at the Hilton Ocala, 3600 SW 36th Avenue at 4 p.m.

Turns out their 5-acre lot is only a few hundred feet away from one of the proposed routes.

“It’s kind of scary,” said Sally Keller. “Now I know why we’ve gotten six letters from people wanting to know if we wanted to sell. I knew something was up.”

The Kellers live in Brooksville and their property near Dunnellon is raw land.

But dozens more attended the meeting and many huddled around several big screen monitors to try and pinpoint their homes. Some routes do overlap existing home sites.

For Sandra Marraffino, who lives in Dunnellon, none of the proposed routes crossing the Withlacoochee are ideal.

“That is all very sensitive land from an ecological standpoint,” Marraffino said.

Tens of thousands of birds nest on islands on Lake Rousseau and the route closest to State Road 200 would cut through Halpata Tastanaki Preserve, home to a population of Florida Scrub Jays. The dwindling species is only found in Central Florida. In between, there are other bird habitats including burrowing owl, said Marraffino, a member of the Marion Audubon Society.

Her suggestion for a route crosses the Withlacoochee further west and takes the road through Levy County and into Alachua County.

Despite some misgivings, all those approached at Thursday’s meeting agreed that a new road is necessary given the state’s growing population and the bottlenecks formed during Hurricane Irma evacuations last year.

“We are really open to what’s going on,” said Nancy Huff, who also lives near one of the routes. “But it’s going to take so long, who knows what it will really look like.”

Learn more

• Watch the state presentation about this possible new road at http://www.coastalconnector.com/onlinemeeting2/. The site also has links to a map of the proposed corridors.

• See documents about the study at http://www.floridasturnpike.com/coastalconnector.html#resources