Swinging the spotlight back onto energy (as is inevitable here on the burrito), I realized there is a lot to be thankful for in the US. Despite some obvious shortfalls in the energy landscape (reliance on fossil fuels, foreign energy dependence, etc) I believe the US is moving in the right direction. So henceforth I present some random points as to why the US is great, from both an energy perspective, and from the perspective of a Brit.  

–The ramp up in domestic oil production from shale plays – hot on the heels of the shale gas revolution - means less dependence on foreign energy. Domestic energy production currently meets three quarters of total US energy demand.

–The US has lots of space. You don’t have to be a millionaire to have a good-sized garden / yard.

–New fuel economy standards announced in the US last year target car performance in 2025 of 54.5 miles per gallon, set to save 12 billion barrels of oil. 

–The weather. It is still a novelty and a pleasure to experience five three consecutive days of sunny weather.

–Oil imports in the US are now below 50% of total consumption, on the decline since peaking in 2005.

–The worst public restroom in the US is probably on par with the best public restroom in London.

–Shale gas is expected to support 870,000 jobs by 2015, and contribute $118.5 billion to GDP.

–Buffalo chicken. Cajun food. BBQ.

–8% of all energy in the US comes from renewable sources. 10% of electricity comes from renewables.

–People are generally more friendly / less grumpy.

–Lower natural gas prices means residential rates are falling across the country.   

–Kids with American accents are much cuter (I have proof²). British kids just sound like Oliver Twist.

–The focus on reducing pollution and harmful emissions (through acts such as CSAPR, and energy policy focused on safer and cleaner energy) points to a better future for all of us.

–The US is full of simple ideas to make life easier, such as drive-thru ATMs…simple yet effective.

So that’s what happens when I try to avoid making reviews, previews or forecasts. From my perspective the US has got it right - or at least is on the right path - from both the energy landscape, and otherwise.

Just as Will Ferrell is (potentially) set to be the future of ‘The Office’, renewable fuels are (potentially) set to be the future of Energyworld™. However, while TV shows can change their stars at the drop of a hat, there is a somewhat longer and more laborious transition for the dynamics of the energy landscape.   

As highlighted recently on the burrito, research reports from ‘big oil’ indicate the use of oil, coal, and natural gas are set to converge by 2030, each taking up approximately 26% of the world’s market share. At the same time, renewable fuels are set to grow to provide approximately 7% of the world’s energy. According to the EIA, renewable fuels in the US currently make up 1.6% of the energy used, with 13 billion gallons of ethanol produced last year.

A quick side note to let some pressure out of the tires (pun fully intended): Indycar racing has been using cars powered 100% by ethanol for the past four years. Eat your heart out, Ricky Bobby.

For better or for worse, ethanol is part of our future.  Not only has the government mandated a 36 billion gallon target by the EPA for 2022, but the EPA has recently approved the use of E-15 blended gasoline (15% ethanol) for cars that are as old as 2001 (previously they were only endorsing cars built after 2007). Essentially, the majority of cars and trucks on the road can now run on E-15. Which is better for the environment as burning ethanol produces less greenhouse gas emissions, but the downside is you need more of it, as ethanol contains less energy than gasoline (approx. 94,000 Btus versus 124, 000 Btus per gallon). And this is without even touching on the whole ‘food or fuel’ debate. Unfortunately, regardless of if you agree with ethanol use or not, it is here to stay.   

‘I drive a Dodge Stratus!’

My final point is that we must not forget that renewable fuels are still in the discovery phase; we do not know what technological advancement will lead us to over the next few decades. Despite such fuels as cellulosic ethanol and algae being unable to make any significant impact as yet, the big game changer may yet be just round the corner. And just as ‘The Office’ is set to inexplicably change due to the arrival of Mr Will Ferrell, the energy landscape is set to undergo just as big a transformation, as the world transitions – slowly but gradually - to renewable fuels.

1) The average person uses the energy equivalent of 228 tons of coal in their lifetime – and has a carbon footprint which would fill half the NY Giants Stadium. 

2) Total consumption of oil products in the US (gasoline, diesel, heating oil, etc) is currently 19,100,000 barrels a day. That’s 221 barrels a second.

3) Powering a car for a single year using ethanol would require 11 acres of corn, space that can be used to feed at least seven people. (full piece here).

4) The EIA revised up its recoverable natural gas shale estimate by 72% in its 2011 Annual Energy Outlook from the previous year from 480 Tcf to 827 Tcf (to give some perspective, current consumption is approx. 23 Tcf/year).

5) Capturing the methane from 18 cows could power a household in the US. 

6) Saudi Arabia produces approximately 12% of the world’s oil (over 10,000,000 barrels a day), while their proven reserves are 266,000,000,000 barrels.

7) China consumes approximately 3.5 billion tons of coal a year.

8) Using pedal power, it takes 3 cyclists to power a television, 11 cyclists for a vacuum cleaner, 14 for a microwave, 17 for a washing machine, 24 for an oven, and an astonishing 70 cyclists pedalling at full-pelt just to power an electric shower.

9) The US consumes about 100,000,000,000,000,000 Btus per year (100 Quadrillion Btus), which is approximately 20% of the world’s total consumption.

10) The world’s largest burrito was made in La Paz, Mexico, last November, and measured 2.7 kilometers long. Now that burrito took a lot of energy. Adios!

Good day! It’s been a week of extreme emotions; happy times as Punxsutawney Phil declared an early spring and China celebrated a New Year, while on the downside the news has been dominated by the unrest seen in Cairo, Egypt. Despite this first week of the month being heavy on the economic data front, concerns about the unrest spreading to the oil-rich countries of the Middle East has dictated the movement in the crude complex. Worrying? I should cocoa. As for natural gas, it was Groundhog Day again on Wednesday Thursday; just like the prior week a bullish storage print provoked a bearish response. Next week brings more energy-specific newsflow with the EIA monthly report, but for now let’s rebuff the bad news and hit the buffet:

 –WTI / Brent arbitrage may be solved by products, not crude.   

–Shale is a game changer, but LNG exports…?

–For those that loved the Hey Jude flowchart link last week….the flowchart for Total Eclipse Of The Heart.

–Marcellus Shale set to export natty?

–Infographic on if a Smart Grid was implemented in the US by 2030.

–Lower thermostat to low 60s and lose weight.

–Meanwhile, the globe feels hotter when in a warm room.

–Literally a carbon footprint of the world.

–Seven things you should never do on Facebook.

–Study says world energy can be 95% renewable by 2050.

–Pump prices could hit $3.50 by spring.

–Energy efficiency leads to higher CO2 emissions?

–The most unusual requests received by cabin crew.

The Burrito Deluxe Award of the Week goes to ISM data in the US. Manufacturing data showed its quickest pace of expansion since 2004, while non-manufacturing (= services industry) expanded at its fastest rate since 2005. Encouraging signs for the US economy. 

The Burnt Burrito Award of the Week goes to US natural gas. Another bullishly large withdrawal from storage this week drove stock levels into a deficit versus last year. Add to this inclement weather across much of the US, and yet prices have sold off.  

The Burrito Fun Quiz of the Week goes to the Lego album quiz.

Have a wondrous weekend!

Wowee, what a week. Starting with a $113 bln bailout of Ireland, culminating with Nonfarm Friday (= US unemployment data), this week has not disappointed. The filler, manufacturing data (sandwiched in the middle of the week), once again illustrated global expansion for the industrial sector, while US house prices are swooning once more (although pending sales are not). US natural gas is receiving some support from heating demand as thermostats are cranked up, while storage begins to be whittled down. Crude is back within grasping distance of $90 as positive data and potential intervention from the ECB is rallying the Euro. Meanwhile, the entire UK is walking in a winter wonderland (because no public transport works). I could go on and on (and on); what a great week. AND we are into December  – rock on. Enough of the fluff, let’s get onto the good stuff:  

–Yesterday I wrote a piece for the Houston Chronicle on the real reason why Qatar won the 2022 World Cup bid (everything leads back to energy).

–NY shale gas moratorium is a win-win.

–Love this – Camouflage artwork.

–Hurricane Season is over!

–Snow brings concerns of UK fuel shortage.

–Interactive traffic light.

–NY Mayor Bloomberg warns about fracking.

–Welcome to coal corner…prices may rise sooner than everyone expects,  as we are at the end of cheap coal,  with Chinese imports reaching a record.

–Feline fashion. (is weird).

–What is the future for fracking? 

–Itchy bull is behind power cuts.

–’Fair’ price for crude is $100. (says Venezuela).

–Markets in everything: betting on the Royal Wedding.

–China overtakes the US as the most attractive country for renewable energy.

–10 aliens we wish were real.

The Burrito Deluxe Award of the Week goes to the storming new Summit Energy blog – The Water Cooler. It has a boatload of authors (15) and a truckload of creativity (tons).  Is the burrito worried about being usurped? Pah! (= yes). But everyone’s a winner in Summitenergyland(tm).  

The Burnt Burrito Award of the Week goes to nonfarm payrolls (aka US unemployment data). After positive economic prints earlier in the week, a meager 39k job creation was a big anti-climax. Even worse, the unemployment rate rose to its highest level since April at 9.8%. (underemployed still at 17%).

The Burrito Euro-Default-Scary-Sentence of the Week:  The biggest creditor to Portugal is Spain.

Have a corker of a weekend!