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EXPLAINER: GAUGING THE FUTURE OF SOLAR ENERGY IN NEW JERSEY

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TOM JOHNSON | APRIL 24, 2017

Does the fall-off in solar installations and loss of jobs indicate a slowdown in the sector?

What’s going on: Mostly business as usual: The unanswered question is whether that portends well for New Jersey’s solar sector, which has been prone to boom-and-bust cycles. The state’s solar industry is continuing to install new systems at a fairly good pace, although last month the number of deployments fell off dramatically from the rate of a year ago. In March, 889 residential systems were put in, roughly half the number installed 12 months earlier, according to the Office of Clean Energy. The number of nonresidential systems put also fell. That is only one month’s tally, but there are other signs the sector may be slowing. An industry survey of the sector nationwide released early this year found New Jersey lost 1,000 solar jobs in 2016 — at the same time the industry was growing at 25 percent nationwide.

https://www.njspotlight.com/stories/17/04/23/explainer-gauging-the-future-of-solar-energy-in-new-jersey/

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NJ’S SOLAR STUMBLE: SECTOR SHEDS 1,000 JOBS IN PAST YEAR

solar_power_theridgewoodblog

TOM JOHNSON | FEBRUARY 8, 2017

While rest of country showed strong 25 percent growth in solar jobs, New Jersey’s solar employment fell by 14 percent

The solar sector helped the economy grow last year by creating 51,000 jobs across the nation, but not in New Jersey, once one of the biggest success stories in the industry, where more than 1,000 jobs were lost.

While the rest of the country witnessed a 25 percent increase in job growth in the sector, New Jersey solar employment fell by 14 percent, according to the nonprofit Solar Foundation. It is one of only four states to experience a drop in jobs in the field, its annual report said.

The annual survey is startling given that the state experienced its second-biggest growth year ever, installing 353 megawatts, according to data compiled by the New Jersey Clean Energy Program. The state has more than 66,000 solar projects deployed.

For years, solar has been one of the fastest-growing segments of the economy, but the annual report by the foundation suggests otherwise. Its survey of thousands of solar businesses said total jobs in New Jersey fell as of November 2016 to 6,056, a drop from 7,071 over the previous 12 months.

https://www.njspotlight.com/stories/17/02/07/nj-s-solar-stumble-sector-sheds-1-000-jobs-in-past-year/

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President-Elect Donald J. Trump to Nominate CEO of ExxonMobil Rex Tillerson as Secretary of State

CEO of ExxonMobil Rex Tillerson
December 13,2016

the staff of the Ridgewood blog

Ridgewood NJ,  President-elect Donald J. Trump today announced his intent to nominate Mr. Rex Tillerson, Chairman and CEO of ExxonMobil, to serve as Secretary of the United States Department of State.

Among the most accomplished business leaders and international dealmakers in the world, Mr. Tillerson has spent his career protecting the jobs of his employees, who number more than 70,000. Guiding operations around the world that include more than 200 offices, Mr. Tillerson knows how to manage a global organization and successfully navigate the complex architecture of world affairs and diverse foreign leaders. As Secretary of State, he will be a forceful and clear-eyed advocate for America’s vital national interests, and help reverse years of misguided foreign policies and actions that have weakened America’s security and standing in the world. The American people will once again have a world-class leader working on their behalf, enhancing the prospects for peace and prosperity among nations.

“Rex Tillerson’s career is the embodiment of the American dream. Through hard work, dedication and smart deal making, Rex rose through the ranks to become CEO of ExxonMobil, one of the world’s largest and most respected companies,” said President-elect Donald J. Trump. “His tenacity, broad experience and deep understanding of geopolitics make him an excellent choice for Secretary of State. He will promote regional stability and focus on the core national security interests of the United States. Rex knows how to manage a global enterprise, which is crucial to running a successful State Department, and his relationships with leaders all over the world are second to none. I can think of no one more prepared, and no one more dedicated, to serve as Secretary of State at this critical time in our history.”

“I am honored by President-elect Trump’s nomination and share his vision for restoring the credibility of the United States’ foreign relations and advancing our country’s national security,” said Mr. Tillerson. “We must focus on strengthening our alliances, pursuing shared national interests and enhancing the strength, security and sovereignty of the United States.”

Rex Tillerson is a native Texan who earned a Bachelor of Science degree in civil engineering at the University of Texas at Austin. He began his career at Exxon Company, U.S.A. in 1975 as a production engineer.

After years of hard work and dedication to his company, Rex then became general manager of Exxon Company, U.S.A.’s central production division, responsible for oil and gas production operations throughout a large portion of Texas, Oklahoma, Arkansas and Kansas.

In 1992, Mr. Tillerson was named production advisor to Exxon Corporation. Three years later he was named president of Exxon Yemen Inc. and Esso Exploration and Production Khorat Inc., and in January 1998, he was promoted to vice president of Exxon Ventures (CIS) Inc. and president of Exxon Neftegas Limited. In those roles, he was responsible for Exxon’s holdings in Russia and the Caspian Sea as well as the Sakhalin I consortium operations offshore Sakhalin Island, Russia.

In December 1999, he became executive vice president of Exxon Mobil Development Company. Mr. Tillerson was then named senior vice president of Exxon Mobil Corporation in August 2001, and was elected president of the corporation and member of the board of directors on March 1, 2004. Nearly two years after he was elected, Mr. Tillerson was named as chairman and CEO of the board on January 1, 2006.

Mr. Tillerson is not only a stalwart in his professional life, but also in the community. He is a member of the Society of Petroleum Engineers and a trustee of the Center for Strategic and International Studies. He is the vice chairman of the Ford’s Theatre Society and a recipient of the Lincoln Medal; immediate past national president of the Boy Scouts of America, a Distinguished Eagle Scout, and a former director of the United Negro College Fund. He was recognized as a distinguished alumnus of the University of Texas at Austin in 2006, and in 2013, was elected to the National Academy of Engineering.

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PSE&G Overhead Construction Work in Ridgewood

PSEG_theRidgewood _blog

file photo by Boyd Loving

March 9,2016

the staff of the Ridgewood blog

Ridgewood NJ, PSE&G will be commencing Energy Strong electric improvements in Ridgewood .

PSE&G will begin overhead construction activities along existing pole routes as part of our Energy Strong electric improvements.  We are installing two new circuits to improve reliability and convert some existing 4kv service in Ridgewood to 13KV.

Some overhead construction activities have begun and are expected to continue over the coming months. We anticipate the majority of the project to be complete in the next two to three months however, ancillary work is expected intermittently.  PSE&G crews will be working from approximately 7:00 AM – 5:00 PM, Monday – Friday. This work is expected to be complete in September, 2016, weather permitting.

Work locations are expected in the following locations:

  • Maple Ave from Cameron to Mastin Pl
  • Mastin Pl from Maple to Walnut St
  • Walnut St from Mastin to Franklin Ave
  • Broad St – Hudson  St to Dean St
  • Doremus Ave – Orchard to Ackerman

Safety is our primary concern. PSE&G will work with the Village of Ridgewood Police Department to minimize any traffic concerns or inconvenience to the public. As part of our collaboration with the Village Police Department, traffic control officers will be at our active work sites to assist with directing traffic and pedestrians.

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PSE&G Says Customers to Pay Less to Heat Their Homes This Winter

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Bill credits will save typical customer $124 over three months

Annual bills down 55 percent since 2009 due to falling natural gas prices

November 23,2015

the staff of the Ridgewood blog

Ridgewood NJ,  Public Service Electric and Gas Company (PSE&G), New Jersey’s largest utility, announced today that it will provide bill credits this winter that will lower bills by about 30 percent during the months of December, January and February for a typical residential gas heating customer. Those customers will see a total bill credit of approximately $124 this winter.

Including this winter’s bill credits announced today, since January 2009 annual bills for PSE&G’s typical residential gas heating customer will be 55 percent — or $916 — lower due to supply rate reductions. In fact, PSE&G’s gas supply rate is at its lowest in 15 years.

“I can’t think of any other commodity that costs 55 percent less today than it did in 2009,” said Jorge Cardenas, PSE&G vice president of asset management and centralized services. “Falling natural gas prices, our transportation and storage capabilities, and the way we manage our contracts have enabled us to pass these savings along to our customers as the temperature drops.”

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Union: Obama threw workers ‘under the bus’ in Keystone decision

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By Timothy Cama – 11/06/15 12:51 PM EST

The main union for construction workers is accusing President Obama of throwing them “under the bus” by rejecting the Keystone XL oil pipeline.

The Laborers’ International Union of North America (LIUNA) is one of the few labor unions that broke with the majority of Democrats and supported the project, which Obama rejected Friday after a seven-year review.

“We are dismayed and disgusted that the President has once again thrown the members of LIUNA, and other hard-working, blue-collar workers under the bus of his vaunted ‘legacy,’ while doing little or nothing to make a real difference in global climate change,” Terry O’Sullivan, the union’s general president, said in a statement. “His actions are shameful.”

The group’s statement cited a State Department report that Keystone could reduce greenhouse gas emissions when compared with oil transportation by rail.

“But facts apparently mean as little to the president as the construction jobs he repeatedly derided as insignificant because they are ‘temporary,’ ” O’Sullivan said. “Ironically, the very temporary nature of the president’s own job seems to be fueling a legacy of doing permanent harm to middle- and working class families.”

https://thehill.com/policy/energy-environment/259395-union-obama-threw-workers-under-the-bus

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PSE&G Reaches $905 Million Agreement to Accelerate Replacement of Aging Gas Infrastructure and raise rates

PSEG_theRidgewood _blog

file photo by Boyd Loving

Utility to replace up to 510 miles of cast iron and unprotected steel gas pipes over three years

Low gas supply prices make this the ideal time to upgrade system

September 15, 2015
the staff of the Ridgewood blog

Ridgewood NJ, Public Service Electric and Gas Company (PSE&G), New Jersey’s largest utility, today announced a $905 million settlement in principle with the staff of the New Jersey Board of Public Utilities (BPU) and the New Jersey Division of Rate Counsel to expedite the replacement of aging gas pipes — supporting a safe, clean and reliable gas system well into the future.  The agreement detailing this three-year program will be submitted to the BPU for formal approval in the coming weeks.

In a filing with the BPU announced on March 2, PSE&G sought approval to invest $1.6 billion during five years to accelerate the replacement of 800 miles of cast iron and unprotected steel gas mains, and 55,000 unprotected steel service lines to homes and business. The settlement will enable the utility to replace up to 510 miles of gas mains and 38,000 service lines over the three-year period. This agreement culminates six months of formal discovery, review and discussions, including public hearings before the BPU.

“We thank all of the parties involved for their thoughtful participation and review in this matter,” said Ralph LaRossa, PSE&G president and COO. “Although the agreement calls for a three-year program, we will have the ability to make a similar level of annual investment.  We look forward to continuing these substantial upgrades to our system.”

The mains and service lines will be replaced with strong, durable plastic piping, which is much less likely to have leaks and release methane gas. The new elevated pressure systems also enable the installation of excess flow valves that automatically shut off gas flow if a service line is damaged, and better support the use of high-efficiency appliances.

Since 2009, residential gas heating bills are down 47 percent because of the lower cost of natural gas supply. “We are pleased to be able to accelerate this work now, while gas prices remain low,” LaRossa said.

There will be no rate increase at the onset of the program. In 2017, the typical residential gas heating customer who uses 1,010 therms annually is expected to see an increase of $0.49 on their average monthly bill. At the end of the Gas System Modernization Program, the same residential customer is projected to see a total cumulative increase of $4.82 on their average monthly bill, or an increase of approximately 1.5 percent annually over four years.

“In addition to ensuring the continued safety and reliability of our gas system, the Gas System Modernization Program will enable us to create 500 direct, sustained jobs over the three-year period — providing an economic boost for New Jersey,” said LaRossa.

Under the agreement, PSE&G will earn a return on equity of 9.75 percent on $650 million of investment based on an accelerated recovery mechanism, and will seek to recover the remaining $255 million in a base rate case, to be filed no later than November 1, 2017.

The Gas System Modernization Program is a next step in a series of modernization programs, including PSE&G’s Energy Strong work that is focused on building the resiliency into its systems required to withstand the kind of severe weather that has devastated our state over the past five years. Approved last year, the $1.22 billion Energy Strong program includes raising, relocating and protecting electrical switching and substations, and replacing 250 miles of low-pressure cast iron gas mains in or near flood areas.

“PSE&G has been providing safe, reliable gas service to customers in New Jersey for more than 100 years,” said LaRossa. “Today we serve 1.8 million gas customers in the most densely populated areas of our state. This agreement means we can modernize our gas system at a faster pace — benefiting our customers and the economy of our state.”

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New solar panels may add to savings for Ridgewood school district

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APRIL 1, 2015    LAST UPDATED: WEDNESDAY, APRIL 1, 2015, 10:19 AM
BY MALCOLM HERBERT
FOR THE RIDGEWOOD NEWS |
THE RIDGEWOOD NEWS

The Ridgewood school district saved about $70,000 last year by installing solar panels at eight schools, and could be looking to increase those revenues by adding more solar energy units at the two middle schools.

Jim Wavle, president of Verterra Renewable Energy Group and a village resident, oversaw the installation of solar panels at all but two of Ridgewood’s public schools nearly three years ago. He was brought back by the Ridgewood Board of Education (BOE) to discuss possibly adding some more.

The potential new units would be set up at George Washington (GW) Middle School, which currently does not have any solar panels, and Benjamin Franklin (BF) Middle School, Wavle said at a BOE meeting last month.

Superintendent of Schools Daniel Fishbein reported that the district is exploring this possibility at this time because “the pricing point for us to expand our solar has come to a better point now.”

The district is considering a small solar project at GW and a larger, carport-based system at BF.

https://www.northjersey.com/news/education/new-solar-panels-may-add-to-savings-1.1299905

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PSE&G residential electric bills to increase 2.1 percent on June 1

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file photo Boyd Loving

PSE&G residential electric bills to increase 2.1 percent on June 1
Feb. 13, 2015

Utility corrects previous 5.1 percent calculation errorNewark, NJ ,Public Service Electric and Gas Co. (PSE&G) today said the impact of the recent Basic Generation Service electricity supply auction on residential electric bills will be a 2.1 percent increase on June 1, when new electric rates take effect. The utility had previously said the impact would be an increase of 5.1 percent.

“The bill impact information we provided to the NJ Board of Public Utilities at the conclusion of the auction was inaccurate,” said Jorge Cardenas, vice president of asset management and centralized services. “While the wholesale prices for electricity secured in the auction are correct, we made a calculation error in how the new prices would affect customer bills on June 1. We are pleased to report that the typical residential bill will increase by 2.1 percent and not the 5.1 percent we had indicated. It was our calculation error and we sincerely regret both the error and any confusion that may have resulted.”

The bill for a PSE&G residential customer who uses the statewide average of 650 kilowatthours per month will pay $123.82 a month, or $2.58 more per month when averaged over the entire year.

“We commend the Board of Public Utilities for once again approving this efficient and competitive way to secure electricity on behalf of our customers,” Cardenas said. “Our continued investment in transmission infrastructure, along with our commitment to renewable energy sources, contributed to the modest increase to typical residential bills.”

Cardenas said the transmission investments are mandated by regional grid operator PJM to ensure grid stability in PSE&G’s densely populated service territory, enabling the utility to ensure the delivery of safe, reliable electricity. “Our customers are benefitting from a more modern electric system that will provide strong reliability for many years to come,” he added.

Although electric bills are rising slightly, most PSE&G customers also receive gas service and are benefitting from lower gas bills this winter. PSE&G lowered the price of residential gas supply on October 1, 2014 to 45 cents per therm — its lowest rate in 14 years. In addition, the utility is providing significant bill credits to residential gas customers for usage from November 2014 to March 2015 – saving the typical residential gas customer more than $200 during the five-month period.

Since January of 2009, reductions in the cost of gas supply have lowered bills 44 percent, for an annual savings of $741 for PSE&G’s current typical residential gas heating customer. Since 2012, PSE&G has issued bill credits that reduced customers’ supply portion of their bills by a total of approximately $400.

Hotwire US

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Feeling Better at the Pump? Since 2008, America’s Oil Supply Has Grown by 50 Percent.

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Feeling Better at the Pump? Since 2008, America’s Oil Supply Has Grown by 50 Percent.

Ed Feulner / @EdFeulner / December 07, 2014

If you’re like most Americans, you haven’t been questioning the welcome drop in gasoline prices. You just fill ‘er up and feel grateful that you’re spending less.

Why has this remarkable drop come about? And what can we do to help keep prices lower?

Some of it, unfortunately, is beyond our control. Worldwide demand for oil is down now. That always causes the cost of gasoline to drop.

But the other side of the equation — the part that is under our control — has gone largely unheralded in many media accounts: the boom in U.S. energy production. Simply put, we’re producing much more energy domestically these days, and that is, predictably enough, pushing prices downward.

Since 2008, we’ve increased our domestic supply of oil by 50 percent. Thanks to technological breakthroughs such as hydraulic fracturing (“fracking”) and horizontal drilling, we’re able to find and extract far more oil than we possibly could have years ago.

Oil production in states such as North Dakota, Texas and Oklahoma has doubled in the last six years. The United States is now the world’s No. 1 producer of oil and natural gas. Signs that read “No to fracking” might as well read, “Yes to higher prices,” and “no” to the more than 100,000 jobs created in the oil and gas extraction industry over the last few years.

It all comes down to supply and demand. It’s pretty simple. We can’t do much about worldwide demand, but we can do a lot about supply.

Here’s what not to do: subsidize “green” energy such as wind and solar (or any form of energy, for that matter). If green forms of energy show promise, believe me, the market will put resources behind them. The fact that wind and solar producers are so wholly dependent on government handouts (i.e., taxpayer money) is telling.

Yet the push to prop them up continues. Consider the $440 billion tax package lawmakers recently hammered out. It contains a provision that would have revived the wind tax credit that expired last year. Yet the wind industry already gets $56 in federal tax credits per energy unit produced.

Infographic by Kelsey Harris/The Daily Signal

What should we do? Stop impeding markets. Here are four steps policymakers should take, courtesy of Heritage Foundation energy expert Nicolas Loris:

First, lift the ban on crude oil exports. A recent IHS study found that removing the ban would lower gasoline prices by 8 cents per gallon, saving drivers $265 billion over 15 years and adding nearly 1 million jobs by 2018.

Second, lift the drilling bans and approve the Keystone XL oil pipeline. We need more exploration in the eastern Gulf of Mexico, and along the Atlantic and Pacific coasts. We should also be conducting more lease sales off Alaska’s coasts. Alaska’s Arctic National Wildlife Refuge is another abundant source of oil, with an estimated 10.4 billion barrels of oil resting beneath a few thousand acres.

Third, repeal the ethanol mandate. This rule forces refineries to blend increasing amounts of ethanol into gasoline each year, reaching 36 billion gallons in 2022. It’s already driven up fuel and food prices, according to multiple federal-agency and government-backed studies.

Fourth, prohibit greenhouse gas regulations. The Department of the Interior has already suspended oil and gas leases because of their alleged impact on climate change. Coming greenhouse gas regulations from the Environmental Protection Agency will increase the cost of energy production — and producers will pass those costs on to consumers. Yet the regulations will have no meaningful impact on the climate, the EPA has acknowledged.

Notice the one thing these steps have in common? It’s government getting out of the way. The secret to extending the streak of lower energy prices, it turns out, is no secret at all: Let markets work.

Originally appeared in the Washington Times.

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OPEC Policy Ensures U.S. Shale Crash, Russian Tycoon Says

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OPEC Policy Ensures U.S. Shale Crash, Russian Tycoon Says

By Will Kennedy and Jillian Ward  Nov 27, 2014 10:04 AM ET

At today’s prices of just over $70 a barrel, drilling is close to becoming unprofitable… Read More

OPEC policy on crude production will ensure a crash in the U.S. shale industry, a Russian oil tycoon said.

The Organization of Petroleum Exporting Countries kept output targets unchanged at a meeting in Vienna today even after this year’s slump in the oil price caused by surging supply from U.S shale fields.

American producers risk becoming victims of their own success. At today’s prices of just over $70 a barrel, drilling is close to becoming unprofitable for some explorers,Leonid Fedun, vice president and board member at OAO Lukoil (LKOD), said in an interview in London.

https://www.bloomberg.com/news/2014-11-27/opec-policy-ensures-u-s-shale-crash-russian-oil-tycoon-says.html

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The Gas Tax Hike Cometh

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The Gas Tax Hike Cometh
Sep. 23  
By Matt Rooney | The Save Jersey Blog

As recently as March, Save Jerseyans, Governor Chris Christie said gas tax hikes were off the table.

He strongly opposed a proposal from Sen. Ray Lesniak (D-20, Union) earlier in the year which would’ve raised the gas tax by 15 cents over 3 years.

But I warned you earlier this week how the pending confirmation of Jersey Department of Transportation Commissioner-designate Jamie Fox could signal a change in thinking, or at least tactics.I take no pleasure in being right. Trust me. I’ll be paying right along side you at the next pump. So enjoy our run of cheap gas (which is attracting drivers to NJ… when does that every happen?) while it lasts…

According to multiple reports, a bipartisan agreement to raise the gas tax between 15 cents and 20 cents or, alternatively, hike the petroleum products gross receipts tax (paid by refineries and distributors) is moving forward behind closed doors. Or some combination of the two. Whatever. Fox, who presumably discussed these issues with Gov. Christie’s team at length, is echoing his support of a gas tax back during the McGreevey Administration by declaring “[n]othing is off the table.”

It damn well should be!

Believe it or not, New Jerseyans enjoy the third lowest gas tax in the United States. A 15 cent tax would’ve added, on average, $230 to the cost of driving every New Jersey car each year. This is on top of Parkway and Turnpike tolls doubling since 2008. At what point does flying or driving (or swimming) around New Jersey make more sense than paying out the rear end to drive through it?

https://savejersey.com/2014/09/gas-tax-christie-new-jersey-fox-transportation-fund/

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United Water plans hydro plant at Dundee Dam

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United Water plans hydro plant at Dundee Dam

AUGUST 30, 2014    LAST UPDATED: SATURDAY, AUGUST 30, 2014, 1:21 AM
BY JAMES M. O’NEILL
STAFF WRITER
THE RECORD

After more than a year of study, United Water has decided to develop a small hydroelectric power plant at the Dundee Dam to produce enough power to supply 1,000 homes.

The company will seek bids from hydropower developers to build turbines and run the facility at the dam, which stretches across the Passaic River from Garfield to Clifton.

United Water, a co-owner of the dam, would sign a multiyear lease with the winning hydropower company. The hydropower company would then collect the revenue generated by selling the electricity to the regional grid. The company could also receive financial clean energy credits from the state.

“This is a great environmental sustainability story,” said Steve Goudsmith, a United Water spokesman. “We believe this is not only an untapped renewable resource but attractive to hydro developers,” said Goudsmith.

The facility would become one of only a handful of hydroelectric facilities in New Jersey and mesh with Governor Christie’s goal of generating 70 percent of the state’s electricity through clean sources — such as wind, solar and hydro — by 2050.

– See more at: https://www.northjersey.com/news/environment/harnessing-the-power-of-the-passaic-river-1.1078344

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One of the World’s Biggest Sources of Oil Is Right Here in America

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One of the World’s Biggest Sources of Oil Is Right Here in America

Rob Nikolewski / @Watchdogorg / July 29, 2014

SANTA FE, N.M.—Oil production in New Mexico keeps on booming, and it could continue to do so for some time.

“I think the forecast is great,” said Parker Hallam, president and CEO of Crude Energy in Dallas. “I’m excited.”

The Permian Basin, located in eastern New Mexico and West Texas, recently has become one of the world’s biggest sources for crude oil.

The Bakken formation in North Dakota, the Eagle Ford “play” in South Texas and the Permian Basin are each producing more than 1 million barrels of oil per day, with the Permian leading the pack at 1.6 million barrels a day.

Domestic production has grown so large that last month, the International Energy Agency announced the United States surpassed Russia and even Saudi Arabia in oil production.

In New Mexico, field production has doubled in the past three years and is on the verge of surpassing 10 million barrels a month, according to figures from the U.S. Energy Information Administration.

“I think the next 10 years, we can expect to see three to 3-and-a-half million [barrels a day from the Permian Basin],” Hallam said. “We could see even more than that.”

The reason?

Horizontal drilling, using hydraulic fracturing—“fracking.”

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Energy: The indispensable country


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Energy: The indispensable country

By Ed Crooks and Anjli Raval

The US shale revolution has averted the threat of a global oil crisis caused by growing levels of conflict and instability.

In the sleepy farmland of south Texas, near the ghost town of Helena, the 18 gleaming towers of ConocoPhillips’ oil stabilisation plant are an incongruous sight.

Three years ago, there were only fields here but facilities have sprung up to handle the flood of oil pouring out of the Eagle Ford shale region south and east of San Antonio. These are exciting times in the US oil industry; the new plants are proof of that.

Prospects are bright here and in a few other countries including Canada. As the gush of crude from North America strengthened, analysts predicted it would send prices tumbling and open a new era of cheap fuel. It has not happened.

That is because the great advances in US shale have coincided with political upheaval in big oil-producing countries. Political instability in Libya, Iraq and Venezuela has stoked concerns about disruption and threats to future supplies. International sanctions on Iran have also reduced the global supply of oil, and Nigeria’s industry is plagued by theft.

Were it not for the new production in the US, which has cut the country’s imports sharply, there would probably be talk of another world oil crisis. As a global energy supplier, it is, in the words of Madeleine Albright, the former secretary of state, the “indispensable nation”.

The rise of Eagle Ford has been spectacular. The advances in horizontal drilling and hydraulic fracturing, or “fracking”, which were first used to extract natural gas from shale, have in the past four years been applied here to produce oil, with remarkable results. Eagle Ford produced just 15,000 barrels of crude oil per day in 2010, but 838,000 b/d in the first four months of this year, according to the Railroad Commission of Texas, the state regulator.

https://www.ft.com/cms/s/0/601a8476-0b5d-11e4-ae6b-00144feabdc0.html#axzz37cnVLgMQ