OVERLOOKED 2010 ENERGY STORIES

The top 5 overlooked energy stories
Andrew Restuccia, January 3, 2011 (The Hill)

"The Gulf oil spill and the Senate’s failure to pass comprehensive climate-change legislation have for good reason topped 2010’s list of top energy stories. Rather than provide another one of those lists…[here are] the energy stories that flew under the radar…

"[1] Offshore wind…[got] little mainstream attention. While the U.S. offshore wind industry has lagged behind other countries, the Obama administration is ramping up efforts to develop [it]…After securing a number of key permits from the Interior Department, Massachusetts’ Cape Wind offshore wind project is slated to become the country’s first offshore wind project, though two projects in Texas are also hoping to get that honor…[and] the Interior Department issued a “request for interest” meant to determine whether companies were willing to invest in future offshore wind development off the coast of Massachusetts."

Offshore wind and transmission got a big boost from the announcement of financing for the Atlantic Wind Connection (click to enlarge)

"[2] Clashes over power lines…[The Obama administration] wants to expand the country’s reliance on renewable energy…But that requires huge investments in massive power lines…from one side of the country to the other. Electric utilities have been fighting for months about who should be required to pay for those new power lines…[T]he job of sorting out the mess fell last year to the Federal Energy Regulatory Commission…and the discussion is certain to continue into 2011.

"[3] Nuclear loan guarantees…Much to the chagrin of anti-nuclear activists, the Department of Energy issued loan guarantees totaling $8.3 billion for a proposed nuclear power plant in Georgia last year and has plans to issue more guarantees for other projects. Nuclear opponents call the guarantees a subsidy for an energy technology that is too expensive to operate without government support…[T]he nuclear industry says the guarantees are essential for rebuilding the U.S. nuclear industry…President Obama has specifically mentioned nuclear energy as a potential issue of compromise in the coming year's energy talks…"

Spending on nuclear loan guarantees is a bad bet but a smart political compromise(click to enlarge)

"[4] Rare earth metals…[China] announced it is restricting export quotas of rare-earth metals, which are essential components in wind turbines and electric vehicles. China produces 97 percent of the world’s rare-earth supply, and significant restrictions of the country’s exports could have a major effect on the United States…[but] the U.S. is hoping to develop its own domestic supply…Mining company Molycorp is hoping to reopen a rare-earths mine in California next year.

"[5] SEC rules on oil payment disclosure…The Securities and Exchange Commission floated draft rules…that would require oil and mining companies to disclose payments to foreign governments… Industry groups, including the American Petroleum Institute, are not happy about the rules…arguing that broad application could result in confidential proprietary information getting in the hands of foreign oil companies."