Battery Storage for Resilient Homes
Payne Institute Director Morgan Bazilian and Emon Chatterji write about small-scale battery energy storage systems (BESS), especially for behind-the-meter applications, that are still relatively expensive, but we show that it can be a potent solution to render homes resilient to storm related power outages. We present a stochastic programming model formulation to optimize PV/BESS explicitly accounting for resilience benefits these investments entail, over and above their ability to reduce cost of supply. October 20, 2020.
Sebnem Duzgun one of the 100 Resilience Fellows of the Resilience Engineering (RE) community 10/14/2020
Sebnem Duzgun one of the 100 Resilience Fellows of the Resilience Engineering (RE) community
Payne Institute Faculty Fellow Sebnem Duzgun has been appointed appointed as one of the 100 Resilience Fellows of the Resilience Engineering (RE) community! As a resilience Fellow, Dr. Dugun is now part of the 4TU-programme DeSIRE which was set-up by the 4TU.RE Centre. The 4TU.DeSIRE programme and the 4TU.RE Centre aim to establish and foster an international network of top-level academic scholars, engineers, practitioners and decision-makers who serve as ambassadors of the RE paradigm. October 14, 2020.
Responsible or reckless? A critical review of the environmental and climate assessments of mineral supply chains 10/13/2020
Responsible or reckless? A critical review of the environmental and climate assessments of mineral supply chains
Payne Institute Senior Research Associate Jordy Lee, Director Morgan Bazilian, Ben Sovacool, and Suzanne Greene write a paper that critically reviews and identifies gaps in the methodologies used to analyze the environmental impacts of mineral and metal global supply chains. Of specific focus are assessments of the extraction and production of minerals and metals needed for a low-carbon energy future. Current trends and projections suggest that the future low-carbon energy system will have greater material needs than the current one. October 13, 2020.
Indicators of Electric Power Instability from Satellite Observed Nighttime Lights
Payne Institute Earth Observation Group writes about how electric power services are fundamental to prosperity and economic development. Disruptions in the electricity power service can range from minutes to days. Such events are common in many developing economies, where the power generation and delivery infrastructure is often insufficient to meet demand and operational challenges. Yet, despite the large impacts, poor data availability has meant that relatively little is known about the spatial and temporal patterns of electric power reliability. Here, we explore the expressions of electric power instability recorded in temporal profiles of satellite observed surface lighting collected by the Visible Infrared Imaging Radiometer Suite (VIIRS) low light imaging day/night band (DNB). September 30, 2020.
Chinese Fishing Fleet Threatens Biodiversity in Galapagos
Payne Institute Mines student worker Elijah Mt. Castle worked with the Earth Observation Group utilized VIIRS Nightfire technology to see a a fishing fleet hailing from China that has been forced away from the Galapagos Islands by Ecuador’s navy. In recent years, Chinese fishing vessels have begun fishing for giant squid during the summer near the protected area of the Galapagos islands. This year’s fleet was the largest on record, according to Rear Admiral Daniel Ginez, the Ecuadorian Commander of Naval Operations. September 29, 2020.
Strategic Intelligence – Mining and Metals
Payne Institute Senior Research Associate Jordy Lee has documented the paradigm shift in the mining and metals industry, as it incorporates greater sustainability, absorbs technical innovation from other sectors, and seeks a way forward in the midst of a pandemic. By focussing on modernization, digitalization, and transparency, the industry can strengthen its foundational role in a rapidly evolving global economy. However, effectively managing related changes will require greater adaptability, transformative thinking, and building stronger relationships in a global context. September 23, 2020.
Space Resources Podcast: Exploring the Final Frontier, with Alex Gilbert
Payne Institute Fellow Alex Gilbert is on the Resources Radio podcast discussing the emerging field of space resources development. Although essential resources likely are plentiful on the moon, Mars, and elsewhere in outer space, we have less certainty over where, precisely, these resources are; what technology is necessary to extract them; and what types of economic development are legally permissible in outer space. Still, Gilbert contends that boundless opportunities exist for commercial exploration outside Earth—and that the United States, with its innovative rocket companies and long-running government space agency, could be the nation that leads the way. September 22, 2020.
Colorado School of Mines launches Integrated Carbon Capture, Utilization and Storage Initiative 9/18/2020
Colorado School of Mines launches Integrated Carbon Capture, Utilization and Storage Initiative
Led by the Payne Institute for Public Policy and the Mines’ Office of Global Initiatives, the Integrated CCUS initiative will be interdisciplinary across Mines departments. Global interest in carbon capture, utilization and storage is unprecedented as one of the key strategies for addressing climate change. The need for detailed scientific and engineering research, coupled with cross-cutting work on policy, markets and regulation of the technology is equally critical. September 18, 2020.
Cameron Peak Fire in Colorado
Payne Institute Mines student workers Joseph Hall and Elijah Mt. Castle worked with the Earth Observation Group utilized VIIRS Nightfire technology to not only pinpoint fire hotspots, but accurately calculate average temperatures of the flames within the Cameron Peak Fire in Larimer County, Colorado, just outside of Estes Park, and about 60 miles from The Payne Institute for Public Policy headquarters in Golden. September 15, 2020.
Mines researcher contributing to $4M DOE project for energy-efficient steelmaking
Payne Institute Faculty Fellow Sridhar Seetharaman has been awarded a $4 million dollar grant to prove the economic viability of increased renewal energy usage in steel production. Researchers believe the de-carbonization of the steel industry can be achieved by connecting ironmaking to renewable electric power through electrolytically produced hydrogen. September 9, 2020.
3.5 BILLION PEOPLE LACK RELIABLE POWER
Payne Fellow Todd Moss, Morgan Bazilian, Jacob Kincer, and John Ayaburi write about the UN’s Sustainable Development Goal 7 that commits the world to ending energy poverty by “ensuring access to affordable, reliable, sustainable, and modern energy for all by 2030.” The dominant measurement of progress against SDG7 is the access rate, which measures the number of people with basic household electricity. There is no accepted international indicator for reliability. A new approach will help to fill this gap. September 8, 2020.
The Dimming of Lights in China during the COVID-19 Pandemic
The Payne Institute Earth Observation Group research on satellite surveys of the cumulative radiant emissions from electric lighting across China reveals a large radiance decline in lighting from December 2019 to February 2020—the peak of the lockdown established to suppress the spread of COVID-19 infections. To illustrate the changes, an analysis was also conducted on a reference set from a year prior to the pandemic. September 7, 2020.
Some Colorado temps are increasing at twice the global average, fueling wildfires, scientists say 9/4/2020
Some Colorado temps are increasing at twice the global average, fueling wildfires, scientists say
The Payne Institute Earth Observation Group and Director Christopher Elvidge is featured in this article about the growing threat of forest fires in Colorado, using insights from their VIIRS satellite images. September 4, 2020.
Country Spotlight: Gas Flaring in India
The Payne Institute looks at the gas flaring in India. According to the IEA, India is the fourth largest refiner of oil (behind the US, Russia, and China), and the third largest importer of crude oil and LNG (behind China and the US), though is outranked by 24 other countries on oil production, with declining trends. September 3, 2020.
Bouncing Forward Sustainably: Pathways to a post-COVID World Sustainable Energy
Payne Institute Director Morgan Bazilian was a co-author on the Second Consultative Science Platform of the IIASA-ISC “Bouncing Forward Sustainably: Pathways to a post-COVID-19 World” that aims to harness the transformative power of crisis to imagine a more sustainable world. The authors gathered with a focus on science -to deliberate on the following overarching questions: How should COVID-19 and related stimulus and/or recovery packages be directed to build back better to create the maximum impact on the transition to sustainable development; and how can a decarbonized, decentralized, and digitalized energy system make our society more resilient? How can the ability of science, policy and governance systems be enhanced to rapidly respond to unforeseen shocks? August 31, 2020.
Energy 360° Podcast – Getting to Reliable Electricity Access
Payne Institute Advisory Board Member Sarah Ladislaw and the Center for Strategic and International Studies (CSIS) host Morgan Bazilian for a podcast to discuss energy access globally and some of the metrics used to measure access. The Payne Institute recently released ‘Measuring “Reasonably Reliable” Access to Electricity Services,’ which provides an in-depth view of the gaps in global electricity access and how quality of access matters as much as quantity. August 31, 2020.
Hurricane Laura from Space
The Payne Institute Earth Observation Group has been viewing the power outages following Hurricane Laura. One of the consequences of many natural disasters are power outages, which result in losses in electric lighting that can be detected with low light imaging data. This paper looks at the nighttime light images of the impacted areas. August 28, 2020.
Mines Energy Future Podcast – Dr. Robert Braun discusses Hybrid Stationary Power Systems and Fuel Cells 8/28/2020
Mines Energy Future Podcast – Dr. Robert Braun discusses Hybrid Stationary Power Systems and Fuel Cells
Mines Energy Future podcast featuring Faculty Fellow Dr. Robert Braun, Rowlinson Professor of Mechanical Engineering and Lead of the Advanced Energy Systems Group, Colorado School of Mines, discussing Hybrid Stationary Power Systems and Fuel Cells. August 28, 2020.
HISTORICAL LICK OBSERVATORY SURROUNDED BY WILDFIRE
Payne Institute Mines student workers Elijah Mt. Castle and Mitch Burcham worked with the Earth Observation Group using VIIRS NightFire technology to view the Lick Observatory operated by the University of California. The observatory is slowly being encroached upon by a surrounding wildfire in the Mt. Hamilton area of California. August 24, 2020.
Measuring “Reasonably Reliable” access to electricity services
Payne Fellow Todd Moss, Morgan Bazilian, John Ayaburi, and Jacob Kincer write that while the electricity access rate is regularly measured in most countries, there are no routinely tracked metrics that measure reliability. This paper presents a new approach that: (1) aggregates all available country data on reliability; (2) defines a minimum threshold metric for ‘reasonable reliability’; and (3) estimates the number of people without ‘reasonably reliable’ electricity services. We estimate the number of people without access to reliable electricity is approximately 3.5 billion. This new metric provides a more granular view of the enormous energy access gap globally, and insights for future investment and policy decisions. August 19, 2020.
Natural Gas Transportation Price Regulation and the Dash for Gas
Payne Institute Senior Research Associate Greer Gosnell and Payne Faculty Fellow Ian Lange write about the large reduction in natural gas prices due to horizontal fracturing that has led to an unprecedented expansion in natural gas use for electricity generation. Another innovation that helped facilitate the expansion of natural gas electricity generation is the deregulation of natural gas pipeline transportation. Previous to June 2008, the price for transacting space in natural gas pipelines was set by the Federal Energy Regulatory Commission (FERC). FERC Order 712 allowed transactions under one year in duration, generally known as the secondary market, to transact at market prices. This regulatory innovation should facilitate natural gas power plants in procuring natural gas and lead to expanded generation. August 18, 2020.
GRIZZLY CREEK AND PINE GULCH FOREST FIRES
Payne Institute Mines student workers Elijah Mt. Castle and Mitch Burcham worked with the Earth Observation Group using VIIRS NightFire technology to view two extremely hazardous fires in Colorado. Our team utilized VIIRS NightFire technology to not only pinpoint fire hotspots but accurately calculate average temperatures of the flames within an area. These fires are occurring along I-70: one in Grizzly Creek near Glenwood Springs, and one in Pine Gulch near Palisade, Colorado. August 17, 2020.
Market failures and willingness-to-accept the smart energy transition: Experimental evidence from the UK 8/13/2020
MARKET FAILURES AND WILLINGNESS-TO-ACCEPT THE SMART ENERGY TRANSITION: EXPERIMENTAL EVIDENCE FROM THE UK
Payne Institute Senior Research Associate Greer Gosnell and Daire McCoy have a new working paper that discusses why there is a need to facilitate the sustainable energy transition, and how governments and innovators are encouraging households to adopt smart technologies that allow for increased flexibility in energy grids. The UK’s ambitious smart metering policy has indisputably failed to achieve its objective of equipping all dwellings with smart meters. This research uses a novel experiment to elicit the willingness-to-accept of 2,400 nationally representative UK households for smart meter installation. August 13, 2020.
FALL IN US GAS FLARING GIVES CAUSE FOR OPTIMISM
Payne Institute Senior Research Associate Jordy Lee, Director Morgan Bazilian, and Jamie Webster write about how in the past 12 months, gas flaring in the US has actually declined by 70 per cent, according to numbers provided by the Earth Observation Group.This decline was not driven by policy, Covid-19, or suddenly improved operations, but rather as the result of investors demanding greater capital discipline from a sector that had earned a reputation for prioritising growth over all other concerns. These demands have reduced activity, particularly from smaller operators that have often found it financially difficult to spend capital to improve environmental outcomes. August 11, 2020.
Published on End Poverty in South Asia India’s electricity consumption data shows economic impact of COVID-19 8/11/2020
INDIA’S ELECTRICITY CONSUMPTION DATA SHOWS ECONOMIC IMPACT OF COVID-19
The Payne Institute Earth Observation Group research provides the data for this piece on how COVID-19 has disrupted economic activity. Quantifying this disruption is challenging. Traditional national account estimates, the official government measure for economic activity, are not very helpful for that. To monitor economic activity in times like these, one needs instead measures that are available at higher frequency and higher spatial granularity- for example at the district level. In India, the amount of electricity used (measured as total consumption) and the intensity of lights in the evening (measured as lights per area) are useful proxy indicators. Electricity consumption is measured daily at the state-level and changes reveal information about the economy. August 11, 2020.
OIL WELL EXPLOSION IN INDIA
Payne Institute Earth Observation Group Willie Helms reports that an ongoing fire in India exploded on July 22, 2020, injuring three people. Over the last two months, Oil India Limited (OIL) has suspended operations at well number 5 of the Baghjan oil field, located in the Tinsukia district of Assam, India. Problems originally started on May 27, a blowout occurred, allowing gas to spew uncontrollably from the well. Fueled by the gas, a large fire broke out on June 9, killing two firefighters. August 5, 2020.
Spatially variable taxation and resource extraction: The impact of state oil taxes on drilling in the US 8/5/2020
SPATIALLY VARIABLE TAXATION AND RESOURCE EXTRACTION: THE IMPACT OF STATE OIL TAXES ON DRILLING IN THE US
Payne Institute Faculty Fellow Peter Maniloff, Jason Brown, and Dale Manning estimate the responsiveness of nonrenewable resource firms to taxes on output using spatially explicit data from the oil sector in the United States. Using a model of resource firm capital allocation over space, we show that responses to spatially-varying taxes differ from responses to equivalent changes in the common output price. A larger response to tax rates occurs because the tax change only affects the returns to drilling in a single state, whereas a price change affects both the returns to drilling in a state and the opportunity cost of not drilling in other states. August 5, 2020.
CHINESE FISHING NEAR NORTH KOREA IS A SYMPTOM OF A BIGGER PROBLEM
The Payne Institute Earth Observation Group research provides the data for a comprehensive piece on China’s distant water fleet, and the robust scale of illegal fishing in the waters off the coast of North Korea by Chinese fishermen. July 31, 2020.
Sumit Agarwal named 2020 AVS Fellow
Payne Institute Faculty Fellow Sumit Agarwal has been named a 2020 AWS Fellow. Fellowship recognizes AVS members who have made sustained and outstanding technical contributions throughout their careers to research, engineering, technical advancement, academic education or technical management in the areas of basic science, technology development and commercialization of materials, interfaces and processing. July 24, 2020.
IRAQ LOOKING TO DEVELOP ITS NATURAL GAS RESOURCE
Payne Institute Earth Observation Group Willie Helms reviews VIIRS satellite imagery to see that since 2018, the United States has been putting pressure on Iraq to move toward energy independence. Iraq currently imports the majority of its natural gas from Iran, which is then burned for electricity. However, as a bi-product of its oil production, Iraq already flares the second most natural gas in the world as of 2018 per data from NOAA with assistance from VIIRS Nightfire (VNF). July 23, 2020.
ILLUMINATING DARK FISHING FLEETS IN NORTH KOREA
The Payne Institute Earth Observation Group research on nighttime lights (VIIRS) provides the data for this article on Illegal, unreported, and unregulated fishing that threatens resource sustainability and equity. A major challenge with such activity is that most fishing vessels do not broadcast their positions and are “dark” in public monitoring systems. Combining four satellite technologies, we identify widespread illegal fishing by dark fleets in the waters between the Koreas, Japan, and Russia. July 22, 2020.
NEW TECHNOLOGY UNVEILS MASSIVE ILLEGAL FISHING BY DARK FLEETS IN NORTH KOREA, WHAT NEXT?
The Payne Institute Earth Observation Group research on nighttime lights (VIIRS) was featured in this article about unprecedented fishing activity in North Korea. International collaboration reveals widespread illegal fishing in North Korean waters across 2017 and 2018. Hundreds of large, industrial vessels originating from China likely violated United Nations (U.N.) sanctions and caught almost half a billion dollars worth of Pacific flying squid. July 22, 2020.
GLOBAL GAS FLARING JUMPS TO LEVELS LAST SEEN IN 2009
The Payne Institute Earth Observation Group’s research on gas flaring is providing the data for the annual World Bank Global Gas Flaring Report. Estimates from satellite data show global gas flaring increased, by 3%, to levels not seen in more than a decade, to 150 billion cubic meters (bcm), equivalent to the total annual gas consumption of Sub-Saharan Africa. July 21, 2020.
Smart Meter Data to Optimize Combined Roof-top Solar and Battery Systems using a Stochastic Mixed Integer Programming Model 7/21/2020
SMART METER DATA TO OPTIMIZE COMBINED ROOF-TOP SOLAR AND BATTERY SYSTEMS USING A STOCHASTIC MIXED INTEGER PROGRAMMING MODEL
Emon Chatterji and Payne Institute Director Morgan Bazilian presents the design and results of a model that uses household smart meter data, electric vehicle (EV) travel load and charging options, and multiple solar resource profiles, to make decisions on optimal combinations of photovoltaics (PV), battery energy storage systems (BESS) and EV charging strategies. The least-cost planning model is formulated as a stochastic mixed integer programming (MIP) problem that makes first stage decisions on PV/BESS investments, and recourse decisions on purchase/sell from/to the grid to minimize expected household electricity costs. July 21, 2020.
Dynamic corrective taxes with time-varying salience
Payne Institute Faculty Fellow Ben Gilbert and Joshua Zivin write about economies across the globe that are becoming increasingly cashless and many payment systems have become automated, driving a temporal wedge between consumption and payment and generally making the costs of consumption intermittently salient. Since this inconsistent price salience alters demand elasticities, it is a particular concern for goods that generate externalities and the price-based policies deployed to address them. This paper derives optimal dynamic corrective taxes for suboptimal and persistent consumption decisions. These taxes depend on the agent’s ability to commit to a future consumption path. July 15, 2020.
Mines researchers awarded $7.7M from ARPA-E to test full-scale hybrid stationary power system 7/13/2020
MINES RESEARCHER AWARDED $7.7m FROM ARPA-E TO TEST FULL-SCALE HYBRID STATIONARY POWER SYSTEM
Payne Institute Faculty Fellow Robert Braun has been awarded $7.7 million in funding from the U.S. Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E) to develop and test a full-scale hybrid stationary power system that could provide highly efficient electricity to hospitals, supermarkets, large retailers and more. The fuel cell researchers are targeting the highest electric efficiency ever for something that’s powered by a fossil fuel – the world’s first 70 percent efficient natural-gas fueled power generation system. July 13, 2020.
ARGENTINA’S POPULAR EXCLUSIVE ECONOMIC ZONE
Payne Institute Earth Observation Group Willie Helms reviews VIIRS satellite imagery to look at Argentina. Argentina is a nation with rich, natural squid resources. Its exclusive economic zone (EEZ) is one of the best places for squid fishing on Earth. The EEZ, spanning for 200 nautical miles from any point of the Argentinean coast, is home to the Argentine shortfin Squid. Because some of the best areas for squid fishing are just near the EEZ boundary, fishing fleets from other countries try to catch these squid by getting as close as possible to the Argentinean EEZ. July 10, 2020.
WHY LIGHT POLLUTION IS A CRUCIAL TEST OF HUMANITY’S PROBLEM-SOLVING SKILLS
The Payne Institute Earth Observation Group research on light pollution was featured in this article about a new way to think about light pollution in Europe and the U.S. that should help policy makers take its measure. But if they can’t solve it, what hope for more complex problems like global heating? July 9, 2020.
ARTIFICIAL LIGHTS TELL THE STORY OF THE PANDEMIC
The Payne Institute Earth Observation Group research on nighttime lights (VIIRS) provides confirmation for this article on satellite views of Earth that reveal the distinct imprint of humankind’s response to a fast-spreading virus. As entire populations and industries curtailed their usual movements, pixels of light on satellite images rearranged themselves accordingly—a new bright cluster here, a fresh spot of darkness there. July 8, 2020.
ECONOMIC IMPACTS OF THE 2020 OIL MARKET CRASH
Payne Fellow Brad Handler and Director Morgan Bazilian write about how the upstream oil and gas industry risks losing more than 200,000 jobs over the next six to 12 months—comparable to the 2015–2016 oil market downturn—and appears poised to shrink over the longer term, as well. This may challenge states and local communities that have significant upstream exposure and suggests they focus on making their economies more resilient. May 21, 2020.
NIGHT LIGHTS: Suomi NPP Detects Changes In Nighttime Lights Around NYC…
Payne Institute Dr. Christopher Elvidge and the Earth Observation Group contributed to the article tapping into data from the NOAA/NASA Suomi NPP satellite’s Day/Night Band (DNB), NOAA’s Joint Polar Satellite System (JPSS) colleagues at the Cooperative Institute for Research in the Atmosphere (CIRA), Cooperative Institute for Meteorological Satellite Studies (CIMSS), and the Colorado School of Mines (CSM) that examined the difference in illumination of urban and suburban lights between February 2020 and March 2020. By doing so, the scientists were able to detect areas of dimming (blue), and in some cases brightening (red), of nighttime lights from the Mid-Atlantic to New England. May 12, 2020.
AGGREGATION AND ANALYSIS OF METHANE DATA IN THE DJ BASIN, COLORADO
Payne Institute Fellow Dorit Hammerling and Payne Research Associate William Daniels consider emissions data in the Denver-Julesburg (DJ) Basin. They focus on methane data from the TROPOMI instrument on board the Copernicus Sentinel-5 Precursor satellite. They have aggregated the data into a variety of temporal packets and performed an initial exploratory analysis. This review will help inform ongoing and future air pollution monitoring eﬀorts. These eﬀorts rely on data gathered from a wide array of monitoring techniques, including ground-level sensors, drones, and planes. Being able to better incorporate satellite data into these eﬀorts will oﬀer a more complete emissions proﬁle, which can be used to inform both operations and regulations. May 5, 2020.
NIGHTTIME LIGHTS ARE REVOLUTIONIZING THE WAY WE UNDERSTAND COVID-19 AND OUR WORLD
The Payne Institute Earth Observation Group research on light pollution was featured in this article about images of Earth taken at night are revolutionizing our ability to measure and understand nearly every dimension of human activity on Earth and allow us to get a glimpse into human-Earth interactions in close to real time. The need to track and predict outbreaks, as well as understand the impacts of COVID-19 on economies, has led to the utilization of unique sources of data that could help track the spread of the pandemic in close to real time. Satellite observations – including those taken at night – are becoming a primary source of data for tracking the progress of the pandemic and its impacts on energy consumption, transportation, social interactions, the functionality of critical infrastructure, tourism, trade emissions, etc. May 4, 2020.
THE NEXT FRONTIER OF CARBON ACCOUNTING
Payne Institute Research Associate Jordy Lee and our COMET team collaborators write a unified approach for unlocking systematic change in carbon accounting. Pressure is building on companies to disclose the greenhouse gas (GHG) emissions that form both the direct and indirect carbon footprint of their operations. In aggregate, industrial supply chains are responsible for over 40 percent of all GHG emissions. This pressure for more accuracy and transparency comes from investors, policymakers, and consumers. Increasingly, each of these players demand that industrial companies prove better alignment with carbon reduction trajectories commensurate with the goals set out in the Paris Agreement. May 2020.
WORLD TOUR OF COVID-19 IMPACTS ON NIGHTTIME LIGHTS
The Payne Institute’s Earth Observation Group has been watching the nighttime lights dim, and recently recover, across the world since the start of the COVID-19 pandemic. This is a good proxy for both electricity demand and economic activity. The disruption patterns of the Coronavirus shutdowns have been recorded by the NASA / NOAA Visible Infrared Imaging Radiometer Suite (VIIRS) day /night band (DNB). To examine this is detail, the EOG calculated changes in the brightness between monthly cloud‐free average radiance composites. The results are detailed in this paper. April 21, 2020.
DRILL-BIT PARITY: SUPPLY-CHAIN LINKS IN OIL AND GAS MARKETS
Payne Institute Fellow and Mines Professor Ben Gilbert and Gavin Roberts provide a model and empirical evidence of supply-side connections between oil and gas markets. Oil and gas production require common inputs: drilling rigs and specialized labor. Competition for inputs creates a cost-spillover channel through which a price shock for one commodity reduces drilling for, and production of, the other commodity. Oil wells produce associated gas, while gas wells produce associated liquid hydrocarbons. This creates an associated-commodity channel through which a price shock for one commodity might increase or decrease drilling for the other commodity, and always increases production of, the other commodity. April 8, 2020.
A DIGITAL CANOPY: GETTING TO TRANSPARENCY
Earlier we wrote a commentary titled, “LEANING IN: MOVING AHEAD OF REGULATIONS FOR NATURAL GAS EMISSIONS.” That Commentary stressed that one of the key steps for oil and gas operators is to establish transparency across their operations, which will help support a ‘social license to operate’ from the community, regulators, and investors. This is a critical step in moving towards “responsibly-sourced” oil and gas. April 3, 2020.
PROVINCIAL, FEDERAL, AND INTERNATIONAL REGULATORY DRIVERS OF POSSIBLE STRANDED ASSETS IN ALBERTA, CANADA March 30, 2020
PROVINCIAL, FEDERAL, AND INTERNATIONAL REGULATORY DRIVERS OF POSSIBLE STRANDED ASSETS IN ALBERTA, CANADA
The Alberta oil sands are vast deposits of crude bitumen mixed with sand, water, and clay located on the Treaty 6 and 8 lands of the Cree, Dene, and Métis First Nations. The oil sands sector represents 10% of Canada’s greenhouse gas emissions. This analysis will adopt the theoretical lens of economic geography, which emphasizes the importance of multiscalar inquiry in understanding economic phenomena. Concerning the impacts caused by regulatory drivers of stranded assets, jurisdictional scale matters. March 30, 2020.
THESE IMAGES SHOW THE IMPACT OF CORONAVIRUS ON ELECTRICITY DEMAND IN CHINESE CITIES
The novel coronavirus (SARS-CoV-2) and the disease it causes (COVID-19) have caused significant disruptions to markets around the world since the virus was first identified in Wuhan City in China in late 2019. In the energy sector, the impact has been most apparent in the dramatic fall in oil demand in China. The Payne Institute’s Earth Observation Group is using satellite images to view the decrease in electricity usage in key Chinese cities due to COVID-19. March 25, 2020.
The Payne Institute experts are regional, national, and international leaders in applied research in natural resources, energy, and the environment. Our team is involved in a wide variety of research projects in these fields, and are committed to sharing these results with academic and professional audiences.
DISCLAIMER: The opinions, beliefs, and viewpoints expressed are those of the author alone and do not reflect the opinions, beliefs, viewpoints, or official policies of the Payne Institute or Colorado School of Mines.