On Tuesday, June 26, a senior State Department official told reporters that it was not likely to issue exceptions to US sanctions for countries that were significantly reducing its purchases of Iranian oil.
Unfortunately, many engineering solutions to both past and current architectural and industrial design challenges have relied on abundant and cheap energy for their effectiveness. When energy is cheap and plentiful, using increased amounts of horsepower is a seductive default position when designing industrial systems and processes.
A problem the University of California at Davis (UC Davis) experienced with a drinking water reservoir in 2005, involving a one-million-gallon open-air surface reservoir, serves as an instructive example.
The phrase “too cheap to meter” was used in a 1954 speech by the then-Chairman of the Atomic Energy Commission, Lewis L. Strauss. The occasion for the speech was the 20th anniversary of the National Association of Science Writers, held in New York City on September 16, 1954. When Strauss spoke, no commercial nuclear power plant was in service.
As Pioneer Chairman Scott Sheffield put it, shale companies share an interest in a more balanced market and “preventing overheated prices.” Unlike OPEC (at least Saudi Arabia), many shale producers are facing limits to their ability to ramp up production. Permian producers are finding themselves constrained, not necessarily by the vagaries of geopolitics and the maneuvering of OPEC, but by takeaway capacity and infrastructure constraints close to home.
Q: What are the major takeaways from the OPEC meeting that took place over the weekend in Vienna?
Croft: The biggest takeaway is that OPEC managed to hold it together.
During the trip, the delegation visited the Cleveland Foundation, a key contributor to the economic and civic vitality of the region, to learn more about Cleveland’s ongoing efforts to attract investment into new growth sector such as advanced energy.
The Global Energy Center’s David Livingston sat down to discuss the Cleveland Foundation’s history, mission, and current priorities in clean energy and grid resilience with Stephen Love, a program officer with the Cleveland Foundation.
The first piece in this series focused on the development and benefits of geothermal utilization in Iceland, where geothermal resources are abundant and serve as the main source for home heating and roughly 30 percent of power production. In an area with regular volcanic activity, many would assume that geothermal potential is only to be found in areas like Iceland, where such geographical conditions are present.
However, that is not necessarily the case.
During the trip, the delegation visited Talan Products, a metal stamping company that produces parts for solar systems and LED bulbs, to learn how Cleveland’s manufacturing base makes it a natural location for building the infrastructure of the new energy economy.
The Global Energy Center’s David Livingston sat down to discuss Talan’s history, success, and advanced energy contributions with Steve Peplin, CEO and founder of Talan Products.
However, the biggest elephant in the room won’t even be there. The United States, while not a member of OPEC or the non-OPEC group that agreed to the cuts, has, and continues to play, an outsized role in the oil market because of both the continued strength of US shale and the actions of the Trump Administration.