DOE Announces $180 M for Offshore Wind Projects

Energy Department Announces $180 Million for Ambitious New Initiative to Deploy U.S. Offshore Wind Projects

March 01, 2012

As part of President Obama's all-out, all-of-the-above approach to developing every domestic energy resource, Energy Secretary Steven Chu today announced the start of an ambitious initiative to capture the potential of wind energy off American coasts. As part of a planned six-year $180 million initiative, an initial $20 million will be available this year as the first step in supporting up to four innovative offshore wind energy installations across the United States. These offshore wind projects will accelerate the deployment of breakthrough wind power technologies that will help diversify our nation's energy portfolio, promote economic development, and launch a new industry here in America.

"Developing all of our nation's vast energy resources is an important part of President Obama's blueprint for an American economy that uses all of America's energy resources," said Secretary Chu. "The new offshore wind energy initiative announced today will help to catalyze the development of offshore wind in America, supporting U.S. innovators as they seek to design and demonstrate next generation wind energy technologies. These investments are critical to ensuring that America remains competitive in this growing global industry that can drive new manufacturing, construction, installation and operation jobs across the country."

Offshore wind is an enormous potential resource for the United States, with strong, consistent winds located in the Atlantic, Pacific, the Great Lakes and the Gulf of Mexico. America's vast offshore wind resources, estimated at more than 4,000 gigawatts, will help the United States meet its critical energy, environmental and economic challenges and provide energy to coastal cities where much of the nation's population and electricity demand lies.

To support these new demonstration projects, the Energy Department will make available up to $180 million over six years, subject to congressional appropriations, including an initial commitment of $20 million in fiscal year 2012. The Department will focus this latest research and demonstration initiative on highly innovative technologies that will achieve large cost reductions over existing offshore wind technologies. The demonstrations will help address key challenges associated with installing utility-scale offshore wind turbines, connecting offshore turbines to the power grid, and navigating new permitting and approval processes.
In addition to the new funding, the Department is continuing to work with partners across the federal government to implement a comprehensive offshore wind energy strategy, conduct resource assessments, and streamline siting and permitting.

By investing in this emerging industry, this support will help lower the cost and speed the deployment of American-made offshore wind energy technologies designed for U.S. coastal conditions and provide valuable opportunities to test these innovations in real offshore environments.

Applicants to the competitive solicitation are expected to form world-class consortia of energy project developers, equipment suppliers, research institutions and marine installation specialists. Energy Department funds may be used to cover up to 80% of a project's design costs and 50% of the hardware and installation costs. Letters of intent are due on March 30 and applications are due on May 31, 2012.

For more information and application requirements for this funding opportunity, see the Funding Opportunity Exchange website.

Obama Responsible for Greater Oil & Gas Production?

U.S. Chamber’s Energy Institute Comments on President Obama’s Energy Speech

February 23, 2012

WASHINGTON, D.C.—Karen Harbert, president and CEO of the U.S. Chamber’s Institute for 21st Century Energy, issued the following statement in response to President Obama’s remarks on energy delivered at the University of Miami today:

 

“As the President said, there is no silver bullet that will decrease gas prices and improve our energy security. However, there are a series of significant steps that this President could take that would lead us to a more secure energy and economic future, but this Administration has rejected that path.

 

“Today’s speech contained two fundamental mischaracterizations. The first is the notion that raising taxes on oil companies is going to lower gas prices. It won’t, and we know it won’t because it has been tried before. The result was higher prices and more imports. 

 

“The second is that this Administration is somehow responsible for the uptick we’ve seen recently in domestic production. It’s not. Because of the restrictions this Administration has placed on accessing public land, as well as the ever-increasing amount of red tape, the energy industry has moved to produce oil and gas on private lands. Also, credit is due to policy decisions made years ago in previous Administrations. The fact that the Administration would repeatedly try to take credit for this shows a troubling lack of understanding of energy production in this country. 

 

“The results of the President’s ‘just say no’ energy policy will be felt in the years to come. The facts speak for themselves. President Obama’s administration has issued 50.7 percent fewer annual leases on public lands than President Clinton’s did. Gulf of Mexico energy production is down 16 percent since 2009 and is projected to decrease even further in 2012. President Obama denied the Keystone XL pipeline permit, which would have created thousands of jobs and provided all Americans with a steady supply of oil from a friendly ally. He also has banned new offshore areas from oil and gas exploration, and recently his Administration took one million acres of onshore land rich with oil shale off the table.

 

“The American people can see that the current approach is not working. But we cannot have a constructive conversation about energy policy as long as this Administration fails to put forward any new ideas, relying instead on four year old campaign rhetoric. It isn’t enough just to be for an ‘all of the above’ energy policy in a speech. It’s time to actually propose one.”

 

The mission of the U.S. Chamber of Commerce's Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.

 

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

MOEX Offshore Agrees to $90 Million Partial Settlement

News release from EPA:

FOR IMMEDIATE RELEASE
February 17, 2012

MOEX Offshore Agrees to $90 Million Partial Settlement of Liability in Deepwater Horizon Oil Spill
$70 million penalty is largest under the Clean Water Act; MOEX also to perform Gulf conservation projects worth at least $20 million
 

WASHINGTON – MOEX Offshore 2007 LLC has agreed to settle its liability in the Deepwater Horizon oil spill in a settlement with the United States valued at $90 million, announced the Department of Justice, the U.S. Coast Guard and the U.S. Environmental Protection Agency (EPA) today.  Approximately $45 million of the $90 million settlement is going directly to the Gulf in the form of penalties or expedited environmental projects.

According to the terms of the settlement, MOEX will pay $70 million in civil penalties to resolve alleged violations of the Clean Water Act resulting from the spill and agreed to spend $20 million to facilitate land acquisition projects in several Gulf states that will preserve and protect in perpetuity habitat and resources important to water quality and other environmental features of the Gulf of Mexico region.  At the time of the spill, MOEX was a minority investor in the lease for the Macondo well. It no longer owns any share of the lease.

The terms of today’s settlement do not affect the potential liability of – or recoveries from – other parties involved in the Deepwater Horizon oil spill.

Beginning with a well blowout and explosion on April 20, 2010, the owners and operators of the Macondo Well and the drilling rig Deepwater Horizon allowed millions of barrels of oil to escape into the Gulf of Mexico, affecting the entire region.  Oil spills can cause both immediate and long-term harm to people’s health and the environment.  The Clean Water Act provides for civil penalties for such discharges.  This is the largest civil penalty ever recovered under the Clean Water Act.

“The Department of Justice has not wavered in its commitment to hold all responsible parties fully accountable for what stands as the largest oil spill in U.S. history,” said Attorney General Eric Holder.  “This landmark settlement is an important step – but only a first step – toward achieving accountability and protecting the future of the Gulf ecosystem by funding critical habitat preservation projects.”

“This will move the Gulf Coast along in its recovery as it continues to rebound from the largest spill in U.S. history,” said Coast Guard Commandant Adm. Bob Papp.  “The settlement demonstrates our firm commitment to hold accountable those who pollute our environment.”

“This is good news for the Gulf Coast communities that are continuing to rebuild their economy and restore their ecosystem. This administration is going to stand with the people here to ensure a full recovery from the Deepwater Horizon oil spill,” said EPA Administrator Lisa P. Jackson. “Dedicating funds to actions that restore the local waters is a vital part of restoring these communities.  As someone who grew up on the Gulf Coast, I know how important clean water is to the lives and livelihoods of the people here, and I know we need to take every possible action to get the ecosystem here on a path to long-term restoration.” 

As part of the settlement, MOEX Offshore has agreed to pay $70 million in civil penalties, of which, $45 million will go to the United States.  The money will go toward replenishing the Oil Spill Liability Trust Fund, where by law it will be available to pay for response actions, cleanup and damages caused by future spills.  The remaining penalty will go to Gulf states that participate in the settlement.  Those states will receive penalty payments as follows: $6.75 million to Louisiana, $5 million each to Alabama, Florida and Mississippi, and $3.25 million to Texas.

MOEX Offshore has also agreed to secure and protect properties of ecological significance for the Gulf habitats.  MOEX Offshore will ensure that properties within the states of Louisiana, Texas, Mississippi and Florida are transferred to – or acquired by – state governments, non-profit groups, land trusts or other appropriate entities, to protect those properties from development.  In all, these projects are expected to cost at least $20 million. The negotiation process with MOEX included numerous discussions with the Gulf states, who have been indispensible in reaching this important agreement.

This settlement does not affect the government’s claims against any other defendant in the Deepwater Horizon lawsuit that was filed on Dec. 15, 2010.  The trial of the first phase of the case is set to begin in federal district court in New Orleans on Feb. 27, 2012.

MOEX Offshore is a wholly-owned subsidiary of the MOEX USA Corporation.  Mitsui Oil Exploration Co. Ltd. is the corporate parent of MOEX USA, which in turn is owned by Mitsui & Co. Ltd. of Japan.

The proposed settlement, lodged in the U.S. District Court for the Eastern District of Louisiana, is subject to a 30-day comment period and final court approval. 

More information on the settlement: http://www.epa.gov/compliance/resources/cases/civil/caa/moex.html

Energy Spurs Recovery in Houston

Excerpt from an article in The New York Times
Wednesday, February 08, 2012

Energy Spurs a Recovery in Houston Real Estate 

By KRISTINA SHEVORY

HOUSTON — In most cities, companies are holding tight, mothballing office expansions and delaying new hires. But not in Houston.

Powered by a rise in oil prices and a shale exploration boom, Houston is the first major metropolitan region to regain all the jobs it lost in the recession. The region added about 76,000 jobs last year, according to the Texas Workforce Commission, and is on pace to pick up tens of thousands more this year.

Oil and gas companies, from the biggest names like Exxon Mobil to the smallest independents, are dusting off plans to expand, relocate or put up new buildings. Last year, 1.8 million square feet of commercial space was vacuumed up, and real estate brokers expect the same or greater this year. “No question, it’s energy,” said Jim Arket, a senior vice president at Grubb & Ellis in Houston. “That’s been the plus multiplier of Houston.”

The resurgence can be partly tied to the lifting in fall 2010 of the government moratorium on deepwater drilling in the Gulf of Mexico after the BP oil spill. The bulk of the gulf’s drilling and profits comes from those offshore waters. Shale drilling has also bolstered balance sheets.

Nexen, a Canadian company, is moving its American headquarters from Plano, Tex., to Houston after it received permits to restart deepwater drilling in the gulf. “Houston is quite clearly the place to be for a deepwater operator,” said Grant Dreger, the vice president for finance and administration at Nexen Petroleum U.S.A. “You have loads of deepwater talent, and it’s home to the majority of our joint venture partners.”