April 2007 Energy Update

Great Forest’s Energy Update is a monthly compilation of news clips related to the energy matters for commercial end-users.  For more information about Great Forest’s Energy or other Sustainability Services please reach out to Michael Sanfilippo

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Short-Term Energy and Summer Fuels Outlook  April 10, 2007 Release     (Next Update: May 8, 2007)

Highlights

·        Recent and continuing international tensions amplify the effects of already tight international petroleum markets as the summer season (April through September) begins.  At the same time, unanticipated refinery problems in February and March, both in the United States and abroad, reduced the supply of gasoline resulting in seasonal price increases about a month earlier than usual.

·        As a result of tight oil markets and continued international uncertainty, the price of West Texas Intermediate (WTI) crude oil is expected to average over $65 per barrel this summer (compared with $70 per barrel last summer) and average close to $64 per barrel annually for both 2007 and 2008.   However, as we have seen in the recent past, petroleum prices are subject to significant volatility, particularly when markets are tight and tensions in oil exporting nations deepen.

·        U.S. retail motor gasoline prices surged over the last 2 months, rising by more than 60 cents per gallon due to higher crude oil prices, unplanned refinery outages, increased demand for gasoline, and low levels of gasoline imports from Europe.  Although gasoline prices began their seasonal increase about a month earlier than usual, the rapid rate of price increase is projected to slow over the next few months. 

·        During the summer season the average monthly gasoline pump price is projected to peak at an average of $2.87 per gallon in May, compared with $2.98 per gallon last July.  Retail regular grade motor gasoline prices are projected to average $2.81 per gallon this summer compared with $2.84 per gallon last summer.

·        Concerns about extreme weather conditions and rising prices in the oil market will keep upward pressure on the Henry Hub natural gas spot price during much of the forecast period.  On an annual basis, the Henry Hub spot price is expected to average $7.83 per thousand cubic feet (mcf) in 2007, an 89-cent increase from the 2006 average, and $8.11 per mcf in 2008.  

·        Following large increases in residential electricity prices during 2006, prices are projected to grow at a slower rate of 3.0 percent during 2007.  Electricity prices are expected to continue to grow at 3.1 percent during 2008 as higher fuel costs are passed through to retail customers.  Some regions with States in the midst of electric power restructuring, such as New England and the West South Central, could face highly volatile prices in 2007 and 2008.

Spitzer Proposes Cutting New York Energy Use 15% by 2015

by Martin Z. Braun  April 19 (Bloomberg) -- New York Governor Eliot Spitzer proposed cutting the state's projected electricity demands by 15 percent in eight years and speeding the construction of new ``clean'' power plants, moves that would reduce energy costs and improve the environment.

Spitzer said the state Public Service Commission would provide incentives to utility companies to encourage customers to conserve power. Proposed legislation would strengthen efficiency standards for buildings, appliances, and furnaces. The governor also will ask lawmakers to make it easier for utilities to build new power plants that pollute less.

``The result will be lower energy bills, a cleaner environment that addresses climate change and thousands of new jobs, fueled by a new industry born from clean power,'' the Democratic governor said in a speech at a Crain's Business Breakfast Forum in Manhattan.

 

Crude rallies as Nigerian presidential election looms

Prices set to end lower on week as China-demand worry stays in backdrop

By Myra P. Saefong & Ciara Linnane, MarketWatch

Last Update: 11:47 AM ET Apr 20, 2007

 

SAN FRANCISCO (MarketWatch) -- Crude-oil futures rallied Friday with traders concerned about a disruption to Nigerian oil production as the country readied for the presidential election this weekend against a backdrop of violence and unrest.

But prices were still poised to end the week lower following a 2% drop in the previous session on worries over the potential for weaker energy demand out of China.   "Hanging over the market are the Nigerian elections this weekend," said John Kilduff, an analyst at Fimat USA, in a note to clients. "There is certainly the risk that more politically inspired violence will erupt and threaten the flow of oil."

 

Traders expect demand for the commodity as a heating fuel to wane as temperatures throughout the nation start to warm up.

May natural gas fell 8.7 cents, or 1.2%, to $7.405 per million British thermal units.

 

"Cool early spring weather, maintenance at the nation's nuclear power plants, and the start of the stock-building season have supported prices recently. Now that these factors have dissipated, there is really nothing to hold up prices until air-conditioning loads and concerns about hurricane damage start to build in a few weeks," said Fimat's Kilduff, in a separate note to clients.

 

Ontario to ban sale of inefficient light bulbs

April Lindgren, CanWest News Service    Published: Wednesday, April 18, 2007

 

TORONTO — Sales of inefficient incandescent light bulbs will be outlawed in Ontario beginning in 2012, the provincial government announced yesterday. The ban, the first of its kind inCanada, is the latest initiative aimed at achieving a conservation goal that far exceeds anything attempted even in California, considered a leader in the field. “It will be lights out for old, inefficient lighting and lights on for efficient compact fluorescent bulbs [CFLs] in Ontario,” Energy Minister Dwight Duncan told reporters.

 

Mr. Duncan said the 87 million incandescent bulbs in Ontario households use four times as much electricity as CFLs, which cost about $3 and will save consumers up to $80 on their electricity bills over their eight-year life span.

Australia has announced a similar ban on inefficient light bulbs beginning in 2010, inefficient incandescent will be switched off in Europe in 2009 and California is considering a bill to abolish the bulbs by 2012. In Canada, Nova Scotia is also considering a ban.

 

New York Natural Gas Declines as Warmer Weather to Trim Demand

By Geoffrey Smith

April 20 (Bloomberg) -- Natural gas futures fell in New York on forecasts showing a trend of warmer weather across the central and eastern U.S. The warming trend that begins today across the eastern half of the U.S. will cut furnace demand for natural gas and end a more than two-week stint of colder-than-normal weather. Gas is the most commonly used heating fuel in theU.S.

``A lot of people feel like prices should be moving lower,'' said Brad Florer, a trader with Kottke Associates Inc. in Louisville, Kentucky. ``With mild weather and storage levels where they are, they feel the market should be pulling back with a little more enthusiasm than we've seen.''

Gas for May delivery dropped 10.6 cents, or 1.4 percent, to $7.386 per million British thermal units at 12:05 p.m. on the New York Mercantile Exchange. The price has tumbled 5.3 percent this week.

U.S. gas stockpiles stood at 1.546 trillion cubic feet at the end of last week, or 22 percent higher than the average amount in storage over the past five years, an Energy Department report yesterday showed.

Utilities removed 46 billion cubic feet out of underground storage caverns last week as cold weather forced them to tap reserves. It's the latest in the season that stockpiles have posted a weekly drop since 2000. Utilities typically begin adding to the caverns at this time of year as mild weather slows demand.

 

US FERC approves major Rocky Mountain gas pipeline project

By Maya Jackson

Last Update: 2:24 PM ET Apr 19, 2007


WASHINGTON (MarketWatch) -- The U.S. Federal Energy Regulatory Commission Thursday approved a significant natural gas project that would help ship supply from the Rocky Mountains to major markets in the Midwest and eastern U.S.

 

The Rockies Express-West project consists of three related expansion projects - the Rockies Express project, Overthrusts' Wamsutter Expansion project and TransColorado's Balnco-Meeker expansion project - which together carry a price tag of almost $2 million.

The project is one of the largest greenfield projects approved by FERC in recent years, the commission said.

FERC Chairman Joseph Kelliher said that increased access to Rocky Mountain gas supplies will help offset production declines in other areas of the U.S., like the Gulf of Mexico.

 

 

Coming Events:

 

Developing Green: Integrating Sustainability with Success 
April 23-24, 2007  Westin Convention Center, Pittsburgh PA

The Urban Land Institute’s Developing Green conference explores the latest trends in green and sustainable development. Green development is surging through the real estate industry. As market acceptance grows, developers, owners, and tenants are discovering many advantages of building sustainably and green.

This conference will ensure that you are up to date on the latest issues surrounding sustainable development. You will see how green can be not just financially feasible but financially preferable. You will learn what makes it work; how it differs from conventional practices; how your business can benefit from it; how you can maximize your profit; and just how easy it is to develop green.

This conference is perfect for office, mixed-use, hotel, apartment, and residential developers; suburban and downtown property owners, planners, public officials, architects, urban designers, and contractors; landscape architects; real estate market and business consultants; investment bankers and institutional investors; real estate brokers and real estate lenders.

General Topics

·        Green Building + Smart Growth = Sustainable Communities

·        Designing Whole Systems to Achieve Sustainability and Profitability

·        Residential Green: Healthful and Affordable

·        Financing Green Mixed Use Projects

·        Land Use, Transportation and a Sustainable Energy Future

·        Retrofitting Green: Getting the Biggest Bang for the Buck

·        Europe and Asia: Lessons Learned in Green Development

·        Case Studies: Striving for Sustainable Development by Adding Up Economy, Community, and Environment

Technical Training for Effective, Energy-Efficient Lighting

Tuesday, 04/24/2007, 5:008:30pm Con Edison Building, 4 Irving Place, New York
The New York Energy $martSM Small Commercial Lighting Program and the Lighting Research Center will present an expanded and innovative approach to Effective, Energy Efficient Lighting. The Presentation will be open to all lighting designers, specifiers, architects, engineers and other lighting practitioners interested in advanced lighting design fundamentals and SCLP program Incentives. Please share the following information with your colleagues or interested parties. The presentation will include the science and visual perception of lighting, different types of lighting, and elements of quality lighting design for small commercial spaces. Seating is limited at this event, so please pre-register early to insure your attendance.
Speaker: Dan Frering, LC Lighting Research Center Jeff Schwartz, LC ICF International
Organized by: The New York Energy $martSM Small Commercial Lighting Program and the Lighting Research Center.
Sponsored by: New York State Energy Research & Development Authority (NYSERDA)
Location: Con Edison Building, 4 Irving Place, New York, NY Seating is limited at this event, so please pre-register early to insure your attendance.
Price: Free
CES LUs: 3, CES HSW: 3, CES PDH: 3, Lighting Certified (LC) 3
Telephone/Fax: 866.698.8177/518.452.2149
Contact: For Pre-Registration forms please contact us at sclp@icfi.com or (866)698-8177.
More Info: Seating is limited at this event, so please pre-register early to insure your attendance.

 

SUSTAINABLE DESIGN A panel discussion free and open to the public

Wednesday, 04/25/2007, 6:008:00pm at The Cooper Union
Sustainable Design, a panel discussion at The Cooper Union for the Advancement of Science and Art, will explore the many ways in which designing environmentally sensitive buildings affect our life quality, personal health and, in the global perspective, our financial condition. Moderating the panel will be Bruce Kahn and Jennie Nevin of Smith Barney Financial Advisors and members of Sustainability Practice Network. The panelists will examine the long-term benefits of designing green and the latest sustainable design strategies as well as the financial benefits and constraints. The event, organized by Lena Imamura, School of Art at The Cooper Union, will also include an exhibition of her works inspired by various elements and concepts relating to building a sustainable environment. WHO: Public Health Impacts of the Built Environment: Dinah A. Koehler, Sci.D. Social Scientist, Office of Research and Development, US EPA Integrating Sustainable Design: Catherine Nueva Espana, Atelier Ten, Consulting Environmental Designers Green Building, The Legal Design: Nancy E. Anderson, Ph.D., Executive Director, The Sallan Foundation
Sponsored by: The Cooper Union
Location: The Cooper Union, The Great Hall, 7 East 7th Street at Third Avenue, New York, Subways: Astor Place (6), 8th Street (N, R, W)

 

17th Annual Regional Assembly: A Bright and Green Future

May 4th at the Waldorf Astoria Hotel from 8 a.m. to 2p.m

Regional Plan Association's 17th Annual Regional Assembly, "A Bright and Green Future: Climate Change, Energy and Growth in the Tri-State Metropolitan Region" will be held May 4th at the Waldorf Astoria Hotel from 8 a.m. to 2p.m. A downloadable program and registration form is available here: Regional Assembly Registration Brochure (PDF 400k)

 

Zero Energy Tower, Guangzhou, China

May 8, 2007 • 6:30 PM - 8:00 PM  Reception to follow

New York Academy of Sciences, 7 World Trade Center, 250 Greenwich St., 40th Floor

 

ROGER FRECHETTE, Director of MEP Engineering, Skidmore, Owings & Merrill LLP

Upon completion, the Pearl River “Zero-Energy” Tower will become the world’s tallest energy efficient skyscraper. Frechette discusses achieving maximum efficiency through myriad interwoven systems.

Mixed Greens, a lecture series on sustainable design and skyscraper urbanism, features leading architects, engineers, and environmental consultants whose work in Europe, Asia, and the U.S.represents the state-of-the-art in high-performance high-rise design and green-building technology.

The series is a collaboration between the Skyscraper Museum and the New York Academy of Sciences, and builds on the Museum's 2006 exhibition Green Towers for New York and the related lectures "Green Teams," available in a virtual archive at www.skyscraper.org.

 

AEE meeting- Grid of the Future

Where: Cornell Cooperative Extension, 16 East 34th Street, 8th floor

When: May 15, 2007 / 5:30 p.m. - 8:00 p.m.