05/14/2008 06:22 AM

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Weekly Clean Energy Roundup: May 14, 2008

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Those increases also depend on several conditions that the state commissioners must evaluate, namely, there must be an industry specification or federal standard for each blend; a sufficient supply of biodiesel, with at least half produced in the state, using mainly feedstocks produced in the United States or Canada (barring weather-related complications); an adequate blending infrastructure and regulatory protocol; and a supply of at least 5% of the biodiesel from non-traditional feedstocks, such algae, waste oils, or tallow (unless it is uneconomic to do so).

The state commissioner of commerce can temporarily suspend the biodiesel requirements if there is a supply or quality problem, or if regional price disparities would cause economic hardship to the state's diesel fuel retailers. The bill also exempts several limited uses of diesel fuel and prohibits the production of biodiesel from palm oil, except when the palm oil is in recycled waste oil. See the press release from the National Biodiesel Board and read the new fact sheet on biodiesel blends from DOE's Alternative Fuels Data Center (PDF 272 KB).

To support the biodiesel requirements of the bill, Section 72 allows up to $300,000 in state bioenergy grants to go toward infrastructure improvements for blending biodiesel for use in cold weather. In addition, Section 69 requires the state commissioners to provide recommendations to the NextGen Energy Board and to the legislature on the potential use of biobased alternatives to diesel fuel. This may include diesel-like fuels produced from plant or animal byproducts through thermal or chemical processes. The NextGen Energy Board generates recommendations on how the state should invest its resources in renewable technologies to help achieve energy independence. Section 21 of the act defers the expiration of the NextGen Energy Board until mid-2014. See the full text of the bill.

Oil Producers Head to Deep Water in the Gulf of Mexico

As oil prices continue to hit new record highs, a new report from the Interior Department's Minerals Management Service (MMS) documents a steady advance of oil producers into deeper waters in the Gulf of Mexico. The report, "Deepwater Gulf of Mexico 2008: America's Offshore Energy Frontier," notes that 72% of the Gulf oil production is now coming from wells drilled in 1,000 feet or more of water.

Ten deepwater well started production in 2006 and another 15 started production in 2007. And of 48 development wells drilled in 2007, 60% were in "ultra-deep water," which is defined as water depths greater than 5,000 feet. Eight new deep water discoveries were announced in 2007, three of which were in ultra-deep water, with the deepest located in 7,400 feet of water. See the MMS press release and the full report (PDF 9.1 MB).

How will these deep-water facilities cope with hurricanes? Petrobas, a Brazilian oil company, plans to develop a floating oil and natural gas facility that will draw from a well drilled in 8,200 feet of water. The facility will be able to disconnect from its wells and pipelines and move out of the path of approaching storms. It will be the first production facility to take advantage of significant oil and gas resources discovered in a geologic region known as the Lower Tertiary trend, which located in the ultra-deep water of the Gulf. See the MMS press release.

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Kevin Eber is the Editor of EREE Network News, a weekly publication of the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE). 

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