Category Archives: Energy

Ice Virus Hits Hard in Texas

I reported on an Ice Virus outbreak in Russia at the end of 2010 that affected nearly half a million people in Moscow — critical infrastructure failed.

Now Texas is the one failing from the same attack and infestation.

Perry was quoted as blaming the problems on “unprecedented demand on the state’s energy grid” and saying experts were working “to ensure power is restored as quickly as possible.”

Texas unable to provide sufficient power?

But it was Lt. Gov. David Dewhurst who met with the executives of the state’s power grid manager, ERCOT, and the heads of power generating companies. He said Wednesday that the problem was the failure of some newer plants to sufficiently weatherize.

Two coal-burning plants had frozen water pipes and contributed to 50 of the state’s 550 power plants going off-line.

Dewhurst noted that power demands, while high, were about 20 percent less than what the state handles during peak summer months.

Democrats accused Perry of falling down on the job. The governor “was paying so little attention to the ice storm during his five day trip to California that his own press release misstated the reason for the rolling blackouts,” said Matt Angle of the Democratic Lone Star Project.

I am surprised the Governor was so removed from the situation and made misstatements while his state’s residents suffered through rolling blackouts. It seems obvious, even to an outsider, that demand would not be higher than during the hot summers. Likewise, it seems odd that water pipe failures at just two coal power plants, Oak Grove and Sand Hill, would cascade to 50 more plant failures and have such an impact.

Is your infrastructure prepared for the Ice Virus? Severe weather might actually pose a far greater risk than Stuxnet.

Meanwhile in Antarctica, wind farms have been operating for three years already.

Source: Meridian Energy

The wind farm reduces the carbon footprint of the Antarctic operations, as well as the environmental risks associated with transporting diesel fuel. The bases’ annual fuel consumption has been cut by approximately 463,000 litres. Greenhouse gas production from both bases has been reduced by 1,242 tonnes of CO2.


Update February 2021 (TEN YEARS LATER!):

Texas operates on its own by design and during the current winter storm bad things happened yet again.

Texas has its own grid to avoid dealing with — you guessed it — the feds…

The ICF (consulting firm founded 1969 by a Tuskegee Airman) outage report tells us the 2011 winter led the self-isolating Texans to the wrong solutions, poor decisions, and gas production failed to deliver during cold:

ERCOT’s Extreme Peak Load scenario anticipated demand up to 67.2 GW, but the day-ahead load forecast for 8am Monday was 74.5 GW. ERCOT’s Extreme Peak forecast was based on 2011 winter weather, which resulted in emergency operations but not widespread load shedding.

Gas is blamed so directly for failure to operate. They even make a point to emphasize this was not a renewable energy issue:

Thermal outages, rather than renewables, are the main supply gap.

I know it will become fashionable to say nobody modeled the power system dealing with cold weather (winter storm warning) across all 254 Texas counties but that is LITERALLY WHAT THIS 2011 BLOG POST WAS ABOUT — cold weather change is coming to Texas and it better start planning like Moscow for an “Ice Virus” national security disaster.

And Texas politicians shamelessly boasted as late as 2020 that they were the best planners for energy management, trying to shame Americans outside of Texas.

To put it another way, Texas chose to build only a tiny renewable energy sector and when the gas energy fell offline with nearly 50% failure rates… it’s time to accept responsibility.

Blame Texas gas energy management directly for their totally predictable failure while trying to shame others for what they did themselves.

It’s ridiculous for anyone to say renewables should have suddenly kicked in for a state that didn’t setup weatherized renewables to kick in when their gas systems failed.

On that note, it’s interesting to also read huge amounts of Texas oil production was shut down from an inability to get gas power:

Oil refiner Motiva Enterprises said it was shutting its 607,000 barrel-per-day Port Arthur, Texas, refinery, the largest in the United States. Valero Energy Corp and Total SE separately moved to shut their 335,000 and 225,000 bpd plants in Port Arthur, Texas, due to Monday’s severe cold, sources familiar with plant operations said. Exxon Mobil also began shutting its 369,024 bpd Beaumont refinery and 560,500 bpd Baytown refinery and chemical plant in Texas, sources familiar with plant operations said. Its Baton Rouge, Louisiana, plant also suffered operational issues. Citgo Petroleum Corp said some units at its 167,500 bpd Corpus Christi, Texas, oil refinery were shutting due to weather-related power disruptions.

That’s a LOT of oil wells and refinery to be taken offline. In addition, the same article says gas infrastructure isn’t able to scale to meet demand across a very large region:

Kinder Morgan reported gas-pipeline capacity constraints at locations in Arkansas, Illinois, Louisiana, New Mexico and Texas…

For more detail on this, another article is clear about causes of electricity outages, gas failures:

Officials for the Electric Reliability Council of Texas, which manages most of Texas’ grid, said the primary cause of the outages Tuesday appeared to be the state’s natural gas providers. Many are not designed to withstand such low temperatures on equipment or during production. By some estimates, nearly half of the state’s natural gas production has screeched to a halt due to the extremely low temperatures, while freezing components at natural gas-fired power plants have forced some operators to shut down.

And then they get down to the basic facts with a quote from Michael Webber, an energy resources professor at the University of Texas at Austin:

Texas is a gas state. Gas is failing in the most spectacular fashion.

Even more evidence of this gas failure comes from a tweet by Jesse Jenkins, Professor at Princeton and a prominent energy expert:

As of ~10 AM Eastern time [Monday the 15th], the system has ~30 GW of capacity offline, ~26 GW of thermal — mostly natural gas which cant get fuel deliveries which are being priorities for heating loads — and ~4 GW of wind due to icing. That is a HUGE amount of gas capacity offline, about 30% of total ERCOT capacity and ~half of the natural gas fleet… devastating for reliability

Joshua Rhodes, another energy expert looking at the data, says essentially the same in his tweet

Over 30 GW of generation still down in ERCOT! ~27 GW thermal, or about 35% of all thermal capacity.

Yet, even more importantly, Rhodes also tweeted on the 14th (along with pointing out all systems were affected by the storm) that wind-farms in Texas (albeit very small) over-produced energy far above normal output, because of the… wait for it… high-winds.

Windmills in winter easily can heat their blades and avoid outages, as innovators around the world already documented. Something tells me, however, the real selling point of ice-shedding windmills to Texans would be an opportunity to buy more armored Suburbans that guzzle gasoline:

Skelleftea Kraft maintenance workers ride on armored vehicles when visiting wind sites in the winter

Or look at it this way, a simple table shows wind farms doing ok in a winter storm (forecast demand of 1.8, actual 4.5) yet gas coming up massively short at a much higher scale, leaving a huge -21 deficit in how Texas alone manages its energy.

The numbers don’t lie. The difference from 2011 for me is that investigations will have to start now into whether gas production was shutdown intentionally because of cruel Texas market manipulation and gouging… and Texans willfully ignoring crisis, as well as spending millions on lobbying to prevent better options, all after at least a decade of warnings to weatherize. Some tie it back to 1989 when “wind chills reached 14 degrees below zero”.

Speaking of 1989, that was just a couple years after Enron was started, as Mark Sumner tweeted.

On Monday electricity in Texas approached a rate that would make the average home monthly bill around $96,000… If any of this—purposely constrained market, free floating prices subject to wild changes, consumers facing blackouts—rings a little bell at the back of your head, there’s also this: Enron got its start dabbling in these markets from it’s Houston, TX HQ in the 1980s

A Texas political scientist tweeted that not only does Texas isolate itself to have monopoly control (private regulation to prevent public regulation) in a closed market for energy distribution and pricing, it just used that factor in a disaster to turn down its gas to reduce operating costs while charging Texans higher rates.

All of this summed up by a comment on that tweet:

Dude this is looking more like a Texas version of the 2000-01 California electricity crisis. These private energy producers went offline intentionally and are forcing ERCOT to lift the pricing cap to reflect the scarcity they created.

Strandbeests – Wind Powered Kinetic Sculpture

A beautiful display of wind powered vehicles made from inexpensive materials:

Kinetic sculptor and artist Theo Jansen builds ‘strandbeests’ from yellow plastic tubing that is readily available in his native Holland.

The graceful creatures evolve over time as Theo adapts their designs to harness the wind more efficiently. They are powered only by the wind and even store some of the wind’s energy in plastic bottle ‘stomachs’ to be used when there is no wind.

Is the Kochtopus Risk Real?

Where is Godzilla when you need him? A giant menacing shadowy figure of petrochemical poisons looms over America. It waves its tentacles and weaves it ways into every market, every sector, trying to subdue the environment and overpower resistance. Is it smog? Could it be…is it…The Kochtopus?!

…the University of Massachusetts at Amherst’s Political Economy Research Institute named Koch Industries one of the top ten air polluters in the United States.

[…]

Koch Industries owns Brawny paper towels, Dixie cups, Georgia-Pacific lumber, Stainmaster carpet, and Lycra, among other products. Forbes ranks it as the second-largest private company in the country, after Cargill, and its consistent profitability has made David and Charles Koch—who, years ago, bought out two other brothers—among the richest men in America. Their combined fortune of thirty-five billion dollars is exceeded only by those of Bill Gates and Warren Buffett.

One of my big beefs, pardon the pun, with the Kansas-based duo is that they fail the libertarian test.

They claim to be advocates of a completely free market — only the strongest should survive through “creative destruction” (their term) — yet their history of wealth tells a very different story.

When their father failed in the market, he quit and found a more generous source of income. Regulations might have helped Fred innovate in America, but an easier path to get rich lured him away — Russia.

Fred attended M.I.T., where he earned a degree in chemical engineering. In 1927, he invented a more efficient process for converting oil into gasoline, but, according to family lore, America’s major oil companies regarded him as a threat and shut him out of the industry. Unable to succeed at home, Koch found work in the Soviet Union.

It might be said he was unfairly shut out of the market, but this begs the question of what market is completely fair and why he did not try to reform the market? He failed in the existing market, and instead of using creative destruction to improve he quit the competition and gave himself to Stalin. That arrangement apparently did not work out so well for Fred, who soon realized his financial benefactor now was calling all the shots (pun not intended).

In the nineteen-thirties, his company trained Bolshevik engineers and helped Stalin’s regime set up fifteen modern oil refineries. Over time, however, Stalin brutally purged several of Koch’s Soviet colleagues. Koch was deeply affected by the experience, and regretted his collaboration. He returned to the U.S. In the headquarters of his company, Rock Island Oil & Refining, in Wichita, he kept photographs aimed at proving that some of those Soviet refineries had been destroyed in the Second World War. Gus diZerega, a former friend of Charles Koch, recalled, “As the Soviets became a stronger military power, Fred felt a certain amount of guilt at having helped build them up. I think it bothered him a lot.”

Fortunately for Fred, he managed to get rich thanks to Stalin. But his decisions bothered him so much it became a grudge that he passed on to his children.

Here I think it appropriate to mention the younger Bush Presidency connection to problems raised by the elder Bush. The elder Bush invaded Iraq, but failed to depose Saddam Hussein, for example. The younger Bush then re-lit and carried his father’s torch to the point where it blinded him; who today believes that the current war with Iraq was really about the search for WMD? Could the Koch sons make a similar mistake in judgment?

I fear the same totally irrational view of current events now infects the Koch corporate offices in Wichita. They probably seek to avenge their father; they want to win the battles in a war that ended over 60 years ago. Although there are many possible paths they could choose, it seems they may just want to find a target to pin with a 1950s hatred of the “Reds”.

The Koch father, no matter how well intentioned he was with his grudge, unfortunately tended to work himself up over nothing. He joined extreme political movements and vowed to fight the evil Communist agents taking over America, like a decorated war General elected President and the “colored man”

Members considered President Dwight D. Eisenhower to be a Communist agent. In a self-published broadside, Koch claimed that “the Communists have infiltrated both the Democrat and Republican Parties.” He wrote admiringly of Benito Mussolini’s suppression of Communists in Italy, and disparagingly of the American civil-rights movement. “The colored man looms large in the Communist plan to take over America,” he warned. Welfare was a secret plot to attract rural blacks to cities, where they would foment “a vicious race war.” In a 1963 speech that prefigures the Tea Party’s talk of a secret socialist plot, Koch predicted that Communists would “infiltrate the highest offices of government in the U.S. until the President is a Communist, unknown to the rest of us.”

He admired suppression by Mussolini? That’s like saying he admires the use of WMD. The Italian leader made indiscriminate use of chemical weapons and viruses on civilians, which decimated the Horn of Africa. He even bombed hospitals. Koch was either ignorant of the facts or blinded by his rage. Either way, his admiration was misplaced.

Perhaps Fred Koch did not concern himself with the welfare of Africans, dismissing them as more of the “colored man” who “looms large”.

The Koch sons now running his empire do not seem to reflect upon their father with any disdain for his philosophy at all. It does not appear that they have distanced themselves from his admiration of fascism or from his rhetoric against civil rights and welfare; thus we today find a mutation from Fred Koch into a formidable Kochtopus.

The Kochtopus has entered new battles. It has rallied against clean energy innovation in America, for example. Imagine a Fred Koch today, just graduating from MIT and hoping to bring his new ideas for energy to market to reduce emissions. Who would oppose the need for his ideas and try to shut him out? The Kochtopus would, because energy innovation to reduce emissions is some kind of evil government plot, apparently.

…97 percent of the $8.2 million raised by the [Yes on Proposition 23] forces has been given by oil-related interests and 89 percent of that money has come from out of state. Three companies, Koch Industries, Tesoro, and Valero — another Texas-based oil company — have provided 80 percent of those funds.

“There are three companies from out of state that have a very specific economic interest in rolling back our clean energy economy and jobs,” Thomas Steyer, a San Francisco hedge-fund manger who is co-chair of the No on 23 campaign, said during a conference call Friday.

“I am a businessman,” he added. “I believe in the free enterprise system. I believe in profit. But companies have to accept the rules that are placed on them.”

Steyer, founder of Farallon Capital Management, has pledged $5 million of his own money to the No campaign.

If Proposition 23 had passed, the Fred Koch’s of today would likely have to go to China or other countries to innovate with clean energy, just like Fred had to go to Stalin.

“If the Yes on 23 folks win, we’re going to change the framework for investment here,” said Steyer. “We’re going to change our ability to create new industries. Those industries are going to go elsewhere, probably not in the United States. Probably specifically our biggest competition in this is China.”

Oh, the irony of so-called libertarianism. First the Koch family gets rich from government aid, then they try to shut down regulations that would help others with new ideas who could be in competition. They also spin studies that try to cast doubt on the need for cleaner energy or more regulation to protect health; it’s a play right out of the oil company book of the 1930s that their father was so angry about.

The sons should be backing innovation and new ideas and fighting for regulation that protects the market. They should be promoting welfare programs and proving Communism evil and wrong by example — show how success in a fair market can spur growth and help reduce harm. Instead they are playing right into the hands of their harshest critics.

The Kochtopus is demonstrating an obsession with consolidation of wealth, deregulation and monopolization, fueled by misplaced pride in anti-Stalinism, which is quickly earning it the reputation of one of the more ironic and tragic stories in America.

Look around. Do you see signs of the Kochtopus, ready to take control and stop you from suggesting new ideas or helping others?


Excuse me, which way to the boardroom?