The steep rise in the price of crude oil resulting in the high prices of petrol and diesel are contributing to raging inflation across the globe. In just about a year from April 2021, the price of crude oil shot up from a low of $ 30 per barrel touching $ 130 per barrel. The impact is most severe in the US with its humungous number of automobiles on the road. On an average, one in two Americans owns a car and the use of public transportation is poor.
In just a year the price of gasoline (petrol) in the US had shot up from $ 3 per US gallon (3.8 litres) to over $ 5. An average US housewife will rush to the grocery shop some 4 km away to buy daily needs like a gallon of milk, vegetables, fruits… spending in the bargain more on petrol than the value of the essentials for the day. Imagine, the US doesn’t have the luxury of door delivery by a street corner kirana shop nor the present competition among JioMart, Big Basket and numerous other online grocery companies. Thus, the impact of this surge in the price of fuel on the common man is severe in the U S. The price of diesel, higher than that of petrol (unlike in India), also severely impacts the cost of transportation of goods across the much larger country.
SHALE OIL, A PRECIOUS SOURCE
The high volatility in the price of crude has been playing havoc with fresh investments on the oil sector and hence on supplies. When the price of crude oil surged, the US looked for new sources of oil and gas and made huge investments on exploration, supported by innovations and emerging technologies. Important among these was the fracking of oil and gas contained in shales. High crude prices made it viable and policy support by the US government helped tap this precious source in abundance. It became so profitable resulting in the US production of shale oil expanding 2.5 times to over 12 million barrels a day by the end of the decade of the 2010s.
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RAJASTHAN EMERGES AS SOLAR HUB… As the country steps on the gas to minimise the dominance of energy from coal-based plants, Rajasthan has taken to solar energy. The desert state produces the largest quantity of solar power in the country with an installed capacity of over 14,000 MW. The emergence of solar energy as a viable source has become a boon, making the uncultivable land productive and the state has over 650 companies in the sector. The advancement of technology and the steep fall in panel costs have already made solar power lucrative. Adani Green Energy Ltd It has commissioned India’s first solar-wind hybrid project of 390 MW in Jaisalmer. The company’s energy sale saw a rise to 3550 million units in the quarter ended June 2022 compared to 2054 million units in Q1 FY22, a 73 per cent increase and its operational capacity rose by 65 per cent year-on-year. |
The Covid-19 pandemic with widespread lockdowns, work from homes and precipitous decline in travels led to reduced demand for petroleum products in 2020, Production units were shut/slowed down and the world witnessed yet another instance of a business cycle.
CONCERN FOR CARBON EMISSIONS
Another crucial factor that had its role in the energy scene was the concern for carbon emissions. For a few years there have been efforts to address this problem by curtailing consumption of fossil fuels and switching to renewable sources of energy. With the threat of large coastal towns getting submerged due to the rising levels of oceans and dire warnings on global warming, there were efforts to build consensus on committing reduction of carbon emissions.
In the US, the earlier Trump administration walked out of the 2015 Paris commitment, refusing to fall in line with the consensus. The election of the Democratic Party candidate Joe Biden corrected this hostility and reaffirmed the commitment of the US. However, large sections of Americans do not seem to be convinced and the pro-Republican media never misses an opportunity to blame China and India for their heavy dependence on coal for meeting their energy needs.
The recent Russian invasion of Ukraine has been making its own contribution to oil and gas price rises. Russia as the second largest producer (after Saudi Arabia) of oil and more importantly of natural gas, accounts for a major share of meeting the energy needs of prosperous Europe. The unusual, very high temperatures this summer and the uncertain outputs from wind and solar power stations add to the miseries caused by reduced, uncertain Russian supplies.
STEPPED UP INVESTMENTS IN SOLAR AND WIND POWER…
There are welcome signs on India massively stepping up investments on solar and wind power. Tamil Nadu was able to draw up to 30 per cent of its increasing requirements from wind mills! The state took pioneering steps in encouraging investments in wind power way ahead of other states. But the experience of Europe has shown the unreliability of wind power on a sustained basis. At best Tamil Nadu has been able to benefit for around four months a year from May. The initial thrust is missing and there are expectations on newer technologies for a more efficient generation eg. the design of the blades.
In regard to solar there is welcome news of large investments. The Adanis have committed to installing 100,000 MW solar power. First Solar, Tatas, Reliance and several others are also coming up with impressive plans. These indicate a break from the past of massive dependence on imports of technology and equipment from China. Gautam Adani has indicated development from the basic silica to produce poly-silicon, the building block for solar power.
A quick success in the switch to electric vehicles can also save massive amounts of petrol. Experts point to the difficulty of such a switch of diesel burnt in huge volumes by the transportation sector.
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TULIP or FLOWER TURBINES Normally we picturise wind turbines as giant spinning metal blades with a loud clanking noise. But the colourful wind turbines designed in the shape of a tulip has two vertical blades that generate clean energy from any direction. The wind enters the turbine and then hits both blades at the same time. Horizontal ribs reduce turbulence and increase efficiency. This allows the turbine to produce more energy from a lower wind speed. These can be installed anywhere: houses, offices, shopping malls, car parks… They don’t need tall towers and even with little wind they start to turn and provide enough power. They take up little space and generate more energy per sq.ft than solar panels when there is sufficient wind. Traditional wind turbines require up to 80 acres of land. They must be tall to take advantage of the stronger and more consistent wind. Their massive spinning blades are not suitable for installation in urban areas. Most wind turbines need to be placed far apart. When placed together their turbulence interferes with each other. However, tulip turbines can be placed together in clusters without affecting energy output. In fact, they produce up to 50 per cent more electricity in clusters because they feed air currents into one another. Its unique aerodynamic design is noiseless and creates a low frequency that’s undetectable to humans. Europe is currently working on becoming climate neutral by 2050. Flower turbines can help achieve this goal. |
COAL-BASED POWER
King coal has been contributing to more than two-thirds of the energy needs of India. The earlier plan to go slow on building coal-based thermal power stations seems to have received a hit. Recent developments point to the continued dependence on coal for quite some time.
NUCLEAR POWER, SOURCE OF CLEAN ENERGY…
Disappointingly, the other option of nuclear power doesn’t seem to be receiving much attention. The leader in nuclear power, France, seems to be an exception. The accidents, first at the Three Mile Island in the US, later at Chernobyl, then in the USSR and more recently Fukushima in Japan had severely impacted the focus on nuclear power. The fear of the fission technology used for amassing nuclear weapons kept development and sharing of knowledge at low key. The inability to tackle the storage of highly radioactive spent fuel is another deterrent.
IE reported on the efforts made by the Bill Gates Foundation to address these concerns. We found his advocacy of nuclear power through the TerraPower a game-changer. Bill Gates firmly believes that nuclear power is a source for clean energy “ideal for dealing with climate change because it is the only carbon-free, scalable energy source that is available 24 hours a day.” He sought to solve the problems of today’s reactors, such as the risk of accidents, through innovation.
We also pointed to the work done by the Bhabha Atomic Research Centre and hordes of Indian scientists to use safely the spent fuels along with thorium to produce nuclear power in abundance. Anil Kakodkar, former IAEC Chairman, pointed to research on the fast breeder technology pursued by India for decades, would bring in tangible results. Its success can help build small/modest capacity, safe nuclear reactors that would benefit developing countries.
A quick breakthrough in this clean power with no emissions deserves coordinated and cooperative efforts.
