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Tag: Energy Information Administration

  • DOGE Cuts and Borked Code Delay Important Energy Report

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    Elon Musk may have left the Trump administration months ago, but his stink still lingers in just about every federal office building. The latest agency to get bogged down by the legacy of the Department of Government Efficiency is the Energy Information Administration (EIA). According to Bloomberg, the department missed the publishing time for the Weekly Petroleum Status Report, a crucial update that is closely watched by players in the energy industry.

    On paper, the delay may not seem like much. The report, which contains weekly data on the state of the US oil market, was slated for 10:30am on Monday but got pushed back until 5pm, after trading markets had closed for the day. But delays are very rare for the report, and the EIA was hit hard by DOGE cuts earlier this year. According to Bloomberg, the agency lost more than 100 of its nearly 350-person staff, leaving those remaining extremely shorthanded as they try to keep everything running smoothly.

    While the report had steadily come out on time, even through the government shutdown, an apparent coding error resulted in the delay. The report was also already technically late, though at no fault of the EIA. Instead, it got bumped from its normal Wednesday release and pushed to Monday thanks to an executive order signed by Donald Trump that declared December 24 and 26 a federal holiday. It joins other once-trusted government reports, like the Bureau of Labor Statistics’ monthly jobs report, as examples of the federal government losing its status as a reliable source of information.

    The delay, blip of a problem though it may be, is a good reminder of just how much damage was done to the underlying infrastructure of the federal government by Trump, Musk, and the so-called Department of Government Efficiency. The reality is, as The Guardian recently pointed out, we still have no real idea of how much damage was done.

    Taking DOGE at its word—a dubious decision, given how unreliable its figures have been proven to be—the agency saved about $214 billion in spending by canceling federal contracts, firing workers, and closing departments. Other estimates put that closer to $16 billion, while a report from congressional Democrats suggests DOGE actually created $21.7 billion in waste. Regardless, one effect is real and easy to see: The government is smaller and working less efficiently.

    According to the Trump administration, the federal government will exit 2025 with 300,000 fewer employees than it had at the start of the year. That includes the 100 or so who left the EIA, resulting in the agency losing credibility as it struggles to continue to function. One source told Bloomberg that industries are “rolling their eyes on how inefficient and unpredictable data has become from the US government.” That seems like a bad sign.

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    AJ Dellinger

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  • Officials tap into limitless underground energy source to power massive new project: ‘Our energy future is happening right now’

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    Developers of a business district near Hayden, Colorado, have an underground incentive to lure potential companies to the area.

    The Northwest Colorado Business District is tapping sustainable geothermal energy to provide cost-effective heating and cooling for enterprises that move into the planned 117.1-acre project, according to Inside Climate News and Hayden officials.

    “Our energy future is happening right now — right here in Hayden,” Colorado Sen. John Hickenlooper said in a statement published by ICN.

    Geothermal energy taps steady temperatures under Earth’s surface that can be used to heat and cool buildings, depending on the season. For some, mile-deep holes provide steam-inducing heat that can even be used to power electricity generators, according to the Energy Information Administration. The Department of Energy added that the United States leads the world in geothermal electricity, making enough to power three million homes.

    In Hayden, Texas-based Bedrock Energy will be using drilling tricks learned from the oil and gas industry to bore dozens of holes 1,000 feet into the crust. Temperatures in the shallower boreholes range from 51 degrees Fahrenheit to 64 degrees near the bottom. Pipes will funnel the steady thermal energy to buildings in the industrial park, where heat pumps will help with temperature management, all according to ICN.

    The cleaner-energy project is important for Hayden’s 2,000 residents on multiple fronts. The town’s coal-fired power plant is scheduled to shut down, representing lost jobs and tax revenue. But officials hope to fill the void with new businesses leveraging the cleaner geothermal opportunity that can provide reliable, cheaper indoor climate control. The plan also aligns with the state’s environmental goals, unlocking certain funding streams to make it all possible. About $600,000 in Colorado grants were secured for the project, ICN reported.

    Better yet, it all comes without heat-trapping air pollution that is fumed by dirty fuels, linked by NASA to greater risks for extreme temperatures that are already setting records. Experts fear some places may even become uninhabitable. The overheating is even life-threatening in some places.

    “We’re creating the infrastructure to attract employers, support local jobs, and give our community reliable, cost-effective heating and cooling for decades to come,” town manager Mathew Mendisco said in ICN’s story.

    Officials in the report added that geothermal will protect the businesses from high energy costs incurred by fossil fuels in Colorado’s often extreme weather. The system will be owned by the town, and businesses will be connected to the larger network as the district grows, according to the story.

    Geothermal is going deeper elsewhere. Massachusetts’ Quaise Energy intends to drill 12 miles into the ground to tap an energy source with a million-year lifespan. Nigerian officials are also eyeing underground heat to relieve their unreliable power grid.

    At home, air source heat pumps are a way to upgrade your HVAC system without digging in the ground. There are a variety of systems, and experts at Mitsubishi can help you find the right one, as well as an installer from its trusted network. Fast action can secure tax breaks worth up to $2,000 that expire at the end of the year due to federal policy changes.

    ICN reported that more projects like the one in Hayden are being considered or developed across Colorado and the country, with utility companies being a unique developer that can take on the costs and generate revenue through ratepayer fees.

    Join our free newsletter for weekly updates on the latest innovations improving our lives and shaping our future, and don’t miss this cool list of easy ways to help yourself while helping the planet.

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  • Americans pinched as electricity costs hit all-time highs

    Americans pinched as electricity costs hit all-time highs

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    Electricity rates in the U.S. soared to all-time highs in September, with Americans facing the sting of higher energy bills.

    The Bureau of Labor Statistics reported a spike to $0.171 per kilowatt-hour in September, presenting a harsh reality against the backdrop of a seemingly robust economy. While costs moderated to $0.169 per kilowatt-hour in October, industry experts point to a web of causes including geopolitical tensions, global pandemics, and green energy transitions which indicate that the days of stable, low-cost electricity might be fading and a new reality may be emerging.

    As households gear up for winter, there’s cautious optimism for a slight respite in electricity costs. A recent downtick in natural gas prices—a key determinant of electricity rates—hints at a potential but modest decrease in upcoming electric bills.

    Newsweek’s previous analysis of Energy Information Administration (EIA) data indicates that while a 2 percent reduction in residential electricity rates is projected, stemming from a 14 percent year-over-year drop in wholesale natural gas prices, consumers should still brace for relatively high energy expenses.

    That’s because the complexity of the energy market means that lower fuel costs don’t always equate to lower electricity rates for consumers, according to experts. Deloitte’s 2024 power and utility industry outlook analysis paints a picture of an industry grappling with the costs of modernizing the grid and transitioning to green energy, pointing to a 1.9 percent overall increase in retail electricity prices by the end of the year.

    The Federal Reserve’s warning of a ‘higher for longer’ interest rate environment aimed at curbing inflation resonates within the energy sector. Capital expenditures have surged to a record-breaking nearly $171 billion in 2023 for the most significant electric and gas utilities, according to Deloitte, indicating a trend that may not reverse soon.

    As interest rates climb, the cost of borrowing increases, which can ripple through the economy, affecting utilities and, by extension, electricity rates.

    These higher borrowing costs come at a time when utilities are investing heavily to modernize and transition towards more sustainable energy sources, meaning a return to prices that electricity enjoyed over the 2010s may not happen anytime soon because “much of the increase over time is due to inflation and has often lagged inflation,” Jim Thomson, U.S. Power, Utilities & Renewables leader at Deloitte Consulting, explained to Newsweek.

    That lag indicates that while consumers may be feeling the immediate sting of higher prices, the energy sector and the utility companies that monetize it might be contending with the rising costs for a longer period. Thomson said that in the short term, “utilities will likely continue to face high costs as they modernize and decarbonize the electric grid.”

    Why Did Costs Increase in the First Place?

    The decade-long stability of electricity prices that consumers enjoyed for years was upended in 2022 when a confluence of factors caused the price spike. A surge in natural gas prices, fueled by lower production and amplified by geopolitical tensions stemming from the Russian invasion of Ukraine, played a key role, Thomson told Newsweek. Additionally, Thomson said the energy sector was not insulated from the pandemic’s inflationary effects and supply chain disruptions, which drove up costs.

    Will I Have High Electric Bills Forever?

    There is light at the end of the tunnel. “Some of these factors are subsiding,” Thomson explained, “and since regulated utilities are required to pass cost decreases through to customers as well as cost increases, some customers could see lower bills in the coming year.”

    The U.S. Power Utilities & Renewables leader told Newsweek that as the industry increasingly turns to renewable sources like wind and solar, which are not fuel-reliant, the potential for moderating costs emerges. “Over time, as the share of electricity generated by renewables such as wind and solar continues to grow, it could tend to moderate costs since those energy sources do not use fuel, and those savings would be passed on to customers,” he noted.

    He remains optimistic about the long-term impact of renewable energy, adding, “As the energy transition progresses, households that electrify their energy use by replacing fossil-fueled cars, heating systems, and other appliances with EVs, heat pumps and electric appliances could potentially see as much as a 40 percent decrease in household energy bills by 2045.”

    A young lady sits at her kitchen table at home checking over the household bills. Experts say that high energy costs may be the new norm as the industry grapples with the costs of modernizing the grid.
    In Pictures Ltd./Corbis via Getty Images