The United States government owns 700 million acres of mineral estates, 570 million acres of which is open for coal development. The Mineral Leasing Acts of 1920 and 1947 gave responsibility for these coal mineral estates to the Bureau of Land Management, who are in charge of leasing them to companies for mining. This federal coal system has not been reviewed in more than 30 years.
Taxpayers for Common Sense has been investigating the national coal program to make sure that American taxpayers are being paid what they are owed for the more than one billion tons of coal produced annually in the United States. Their 2013 report highlighted the urgent need for review and overhaul and spurred the Department of the Interior to launch their own multi-year review of the program. Check out TCS’s video and the great work they have been doing to promote transparency and protect American taxpayers.
The solar industry is growing rapidly in the U.S. and becoming increasingly popular among U.S. citizens as an obvious solution for clean, affordable power.
However, Environment America and Frontier Group recently released this report which reveals that at least 17 fossil fuel backed groups and electric utilities are working aggressively to slow the growth of the solar industry by undermining key environmental policies.
This work is well funded and being done largely behind the scenes, making it very dangerous, but hopefully state decision-makers will resist these efforts in favor of progressive legislation which serves the burgeoning solar industry.
The Dakota Access Pipeline has been the heart of several controversial issues, including tribal sovereignty and risks to drinking water. This IEEFA article explains that the project may also be a very high-risk economic investment.
The article concludes that:
“If oil prices remain low, as currently projected, Bakken oil production will continue to decline, and existing pipeline and refinery capacity in the Bakken will be more than adequate to handle the region’s oil production. And if production continues to fall, the Dakota Access Pipeline will become a stranded asset—one rushed to completion largely to protect the favorable contract terms its developers negotiated in 2014.”
“The evidence is clear: a lasting solution to poverty requires the world’s wealthiest economies to renounce coal, and we can and must end extreme poverty without the precipitous expansion of new coal power in developing ones.”
EIA projections missed unprecedented growth in solar PV installations and a sharp downturn in coal production over the last decade.
For a more detailed analysis of inaccuracy in the EIA’s projections, see CEA’s white paper on the topic here.
Policymakers, utility commissions, investors, and energy companies rely on the U.S. Energy Information Administration’s (EIA’s) data for a wide range of energy analyses and while the historical data provided by the EIA has been extremely useful in many arenas, the EIA’s projections of future trends are often far from accurate. Our research summarizes a few examples of previously reported inaccuracies in EIA projections (for example, here, here, and here), but also provides what we believe to be the first look at the EIA’s inaccurate projections of U.S. coal production in almost a decade.
The projections published in the EIA’s Annual Energy Outlook (AEO) have invariably overestimated the cost of renewable electricity generation and fallen sadly short of predicting new additions of wind and solar capacity. For example, Figure 1 shows that the projections published in the EIA’s Annual Energy Outlook repeatedly underestimated U.S. utility-scale solar photovoltaic (PV) capacity from 2011 to 2015 and continue to predict that solar installations will largely stall through about 2025.
In reality, however, solar PV capacity is growing at an unprecedented rate. The Solar Energy Industries Association reported that by the third quarter of 2016, the cumulative U.S. utility-scale solar PV capacity (including capacity which was under contract but not yet operating) exceeded the AEO2015 projection for capacity in 2039. Accounting for planned capacity which had been announced but was not yet under contract by Q3 2016 indicates that utility-scale solar PV capacity will soon far surpass all AEO projections for 2040.
In addition to missing the sharp rise in solar photovoltaic installations, EIA projections also missed a dramatic downturn in coal production over the last decade. They failed to pick up on the trend year after year and still predict flat or rising coal production through 2040, as shown in Figure 2.
Disruptive innovations tend to precipitate new market trends that are notoriously difficult to predict. Just as the invention of the personal computer led to an abrupt decline in the typewriter industry in the late 1900’s, a massive transition toward renewable resources is transforming U.S. energy markets and so far EIA projections have failed to keep up with this transition. Every year, EIA forecasts predict a return to the trends of the 90’s, but the technological and political landscapes surrounding the U.S. energy industry are changing rapidly and historical precedent suggests that energy markets may never return to those of past decades.
For more details, readers are encouraged to download the full CEA White Paper here.
Accelerating the transition from fossil fuels to a clean energy economy