History > 2006 > USA > Environnement
(IV-VI)
The Energy Challenge
It’s Free, Plentiful and Fickle
December 28, 2006
The New York Times
By MATTHEW L. WALD
Wind, almost everybody’s best hope for big supplies of
clean, affordable electricity, is turning out to have complications.
Engineers have cut the price of electricity derived from wind by about 80
percent in the last 20 years, setting up this renewable technology for a major
share of the electricity market. But for all its promise, wind also generates a
big problem: because it is unpredictable and often fails to blow when
electricity is most needed, wind is not reliable enough to assure supplies for
an electric grid that must be prepared to deliver power to everybody who wants
it — even when it is in greatest demand.
In Texas, as in many other parts of the country, power companies are scrambling
to build generating stations to meet growing peak demands, generally driven by
air-conditioning for new homes and businesses. But power plants that run on coal
or gas must “be built along with every megawatt of wind capacity,” said William
Bojorquez, director of system planning at the Electric Reliability Council of
Texas.
The reason is that in Texas, and most of the United States, the hottest days are
the least windy. As a result, wind turns out to be a good way to save fuel, but
not a good way to avoid building plants that burn coal. A wind machine is a bit
like a bicycle that a commuter keeps in the garage for sunny days. It saves
gasoline, but the commuter has to own a car anyway.
Xcel Energy, which serves eight states from North Dakota to Texas and says it is
the nation’s largest retailer of wind energy, is eager to have more. Wind is
“abundant and popular,” said Richard C. Kelly, the chairman, president and chief
executive, speaking at a recent conference on renewable energy.
But Frank P. Prager, managing director of environmental policy at the company,
said that the higher the reliance on wind, the more an electricity transmission
grid would need to keep conventional generators on standby — generally
low-efficiency plants that run on natural gas and can be started and stopped
quickly.
He said that in one of the states the company serves, Colorado, planners
calculate that if wind machines reach 20 percent of total generating capacity,
the cost of standby generators will reach $8 a megawatt-hour of wind. That is on
top of a generating cost of $50 or $60 a megawatt-hour, after including a
federal tax credit of $18 a megawatt-hour.
By contrast, electricity from a new coal plant currently costs in the range of
$33 to $41 a megawatt-hour, according to experts. That price, however, would
rise if the carbon dioxide produced in burning coal were taxed, a distinct
possibility over the life of a new coal plant. (A megawatt-hour is the amount of
power that a large hospital or a Super Wal-Mart would use in an hour.)
Without major advances in ways to store large quantities of electricity or big
changes in the way regional power grids are organized, wind may run up against
its practical limits sooner than expected.
At a recent discussion of clean energy technologies held at General Electric’s
research center in Niskayuna, N.Y, Dan W. Reicher, a former assistant secretary
of energy for conservation and renewable energy, predicted that renewables, led
by wind, could reach 20 percent of demand in the next decade or two. President
Bush has also said that wind could supply 20 percent of the nation’s
electricity.
But Mr. Reicher drew a quick response from James E. Rogers, chief executive of
Cinergy, one of the nation’s largest utilities, and chairman of the Edison
Electric Institute, the industry’s trade association. “I love his optimism,” Mr.
Rogers said. “But unfortunately, I have to deliver electricity every day.”
Mr. Rogers said that wind and another big renewable source that is available
only when nature cooperates, solar power, will be necessary because the
government would eventually regulate carbon emissions from coal-fired power
plants. He later said that his reply to Mr. Reicher had been a “cheap shot,” but
he and others are still wondering how much wind the nation can absorb.
General Electric, a major maker of wind machines, says that along with lowering
the price for a megawatt-hour, engineers have made other improvements in wind
machines. With better electronic controls, many of them now help stabilize
voltage on the grid, and have been cured of their tendency to shut off when
detecting a voltage fluctuation, a problem that can escalate into a blackout.
Juan de Bedout, manager of the electric power and propulsion systems lab at
G.E., said this was more important now because wind machines had grown from a
few hundred kilowatts to 1.5 gigawatts, and his company was exploring machines
four times bigger than that. “That’s ginormous,” he said.
In many places, wind tends to blow best on winter nights, when demand is low.
When it is available, power from wind always displaces the most expensive power
plant in use at that moment. If wind blew in summer, it would displace expensive
natural gas. But in periods of low demand, it is displacing cheap coal.
And in places where suppliers enter bids each day to supply power on the next
day, on an hour-by-hour basis, wind is at a disadvantage. Wider use of wind
requires the invention of a new kind of weather forecasting, according to the
Electric Power Research Institute, a nonprofit consortium based in Palo Alto,
Calif., sponsored by the utility industry and its suppliers. Rather than
forecasting from temperature or rainfall, what is needed is a focus on almost
minute-by-minute predictions of wind in small areas where the turbines are.
The economics of wind would change radically if the carbon dioxide emitted by
coal were assigned a cash value, but in the United States it has none. Coal
plants produce about a ton of carbon dioxide each megawatt hour, on average, so
a price of $10 a ton would have a major impact on utility economics.
Another possibility is energy storage, although this presents other
difficulties.
In May, Xcel and the Energy Department announced a research program to use
surplus, off-peak electricity from wind to split water molecules into hydrogen
and oxygen. The hydrogen could be burned or run through a fuel cell to make
electricity when it was needed most. Xcel plans to invest $1.25 million, and the
government $750,000. But storage imposes a high cost: about half the energy put
into the system is lost.
The Electric Power Research Institute said that existing hydroelectric dams
could be used as storage; they can increase and decrease their generation
quickly, and each watt generated in a wind machine means water need not be run
through the dam’s turbines; it can be kept in storage, ready for use later, when
it is most needed.
The institute listed another possibility, still in the exploratory stage: using
surplus electricity made from wind to pump air, under pressure, into underground
caverns. At peak hours, the compressed air could be withdrawn and injected into
generators fired by natural gas. Natural-gas turbines usually compress their own
air; compression from wind would cut gas consumption by 40 percent, the
institute said.
That would help with an important goal, reducing consumption of natural gas,
which is increasingly scarce and costly in North America. But not everyone is so
sanguine that wind will do that.
Paul Wilkinson, vice president for policy analysis at the American Gas
Association, the trade group for the utilities that deliver natural gas, said
that wind, while helpful in making more gas available for home heating and
industrial use, would still need a gas generator to back it up. And the units
used as backup are generally chosen for low purchase price, not efficient use of
fuel.
At the American Wind Energy Association, Robert E. Gramlich, the policy
director, said that one solution would be to organize control of the electric
grid into bigger geographic areas, so that a drop-off in wind in one place would
be balanced by an increase somewhere else, reducing the need for conventional
backup. That is among several changes the wind industry would like in the
electric system; another is easier construction of new power lines, because many
of the best wind sites are in prairies or mountain ranges far from where the
electricity is needed.
A problem for new power lines is that they would be fully loaded for only some
of the year, since the amount of energy that the average wind turbine produces
over 12 months is equal to just 30 to 40 percent of the amount that would result
from year-round operation at capacity. That number runs closer to 90 percent at
a nuclear or coal plant.
Thus a 1,000-megawatt nuclear plant will produce nearly three times as much
electricity as 1,000 megawatts of wind turbines. But operating costs at the wind
farm are lower, and the fuel is, of course, free.
It’s Free,
Plentiful and Fickle, NYT, 28.12.2006,
http://www.nytimes.com/2006/12/28/business/28wind.html
Earthquakes Shakes Central Oklahoma
December 21, 2006
By THE ASSOCIATED PRESS
Filed at 11:38 a.m. ET
The New York Times
MIDWEST CITY, Okla. (AP) -- Two minor earthquakes shook
central Oklahoma, rattling nerves but causing no serious damage or injuries,
authorities said.
The quakes were centered in the Del City-Midwest City area east of Oklahoma
City. The first struck at 8:41 p.m. Wednesday with a preliminary magnitude of
2.6. The second, at 12:14 a.m. Thursday, had a preliminary reading of 2.7,
according to the Oklahoma Geological Survey.
''The quake scared a lot of people,'' Midwest City Police Chief Brandon Clabes
said. ''We had multiple calls about shaking homes. They thought it was some kind
of explosion.''
Central Oklahoma sits over a subsurface geologic structure called the Nemaha
Ridge and experiences up to a dozen earthquakes each year, said Charles Mankin,
director of the Survey.
''These are fairly small earthquakes,'' he said. ''They're mostly adjustments.''
On the Net:
Oklahoma Geological Survey at
http://www.okgeosurvey1.gov
Earthquakes Shakes
Central Oklahoma, NYT, 21.12.2006,
http://www.nytimes.com/aponline/us/AP-BRF-Oklahoma-Earthquake.html?_r=1&oref=slogin
Poachers in West Hunt Big Antlers to Feed
Big Egos
December 9, 2006
The New York Times
By RANDAL C. ARCHIBOLD
ELY, Nev., Dec. 3 — A bighorn sheep lay in a
field not far from here, its head missing. In nearby Elko, three elk and five
deer died from gunshot wounds, their carcasses rotting in the hills. And in the
distant mountains, game wardens searched for another elk that a tipster said had
been killed by illegal hunters apparently just for the thrill of it.
The reports keep coming in — elk, deer, antelope, bighorn sheep and other
big-game animals — killed in a wave of poaching that has alarmed state and
federal wildlife officials in Nevada and several other Western states.
The authorities said they are seeing more organized rings of poachers and
unlicensed guides chasing the biggest elk and mule deer, with the largest antler
array, sometimes trading them on Internet auction sites or submitting pictures
to glossy hunting magazines that prominently feature big kills.
“There is almost a fixation on possessing or obtaining trophy-class animals,”
said Jim Kropp, the wildlife law enforcement chief for Montana, which this fall
began a new public awareness campaign about poaching called Enough is Enough.
“People,” he added, “will go to any length to have these things in their
possession. It’s big antlers and big egos.”
The federal government does not keep national statistics on poaching incidents,
but wildlife law enforcement officials in several states, mainly those with
large populations of elk, mule deer and other animals prized for their
impressive antlers or girth, have raised concerns about the rash of complaints
and the big money that seems increasingly a factor in the cases they
investigate.
The officials said tight regulations on where and what can be hunted at various
times of year, part of an effort to manage the size of big-game herds, had
motivated some shooting out of season or on restricted land.
The National Park Service wrote in a budget statement last year that poaching
had contributed to the decline of 29 species of wildlife in the 390 parks and
other sites it oversees.
An interstate compact set up 15 years ago in a few Western states to track and
punish violators of hunting laws across state lines has grown to 24 states
nationally, including New York this year. Big-game crimes, mostly related to
poaching, accounted for 42 percent of the violations to the compact last year.
“We treat these as essentially homicides,” said Lt. Jerry Smith, a Nevada
supervising game warden. “But it is such a secretive crime. We have no witnesses
to work with, just the bodies, when we find them.”
A decade ago, Nevada tallied 50 or so animals poached or killed out of season
and by hunters without permits. Last year, 70 such animals were found, the
highest number ever; so far this year the tally is 65, and with a few weeks of
the biggest hunting left, Nevada officials said the number could surpass last
year’s.
And game wardens here suggest that far more animals may have been killed than
they have found; they calculate that they find 1 percent to 5 percent of poached
animals.
Poaching is not Nevada’s problem alone.
This year, Montana and federal investigators seized 30 elk heads and prosecuted
22 people in a poaching ring who drew fines and the ring leader, Danny McDonald
of Gardiner, Mont., a year in federal prison.
They had illegally led out-of-state hunters to trophy bull elks leaving
Yellowstone National Park.
In Idaho, Ed Mitchell, a spokesman for the Department of Fish and Game, said
poaching cases in the state had remained steady in recent years, but the crimes
increasingly are carried out by people in the black market for antlers and
heads, which can fetch tens of thousands of dollars.
“Legitimate hunters don’t find it entirely understandable, but some people will
pay to have some critter on their wall they can claim they have shot,” Mr.
Mitchell said. “Hunters find that completely out of the realm of understanding.”
In part to better understand the scope of the problem, the Association of Fish
and Wildlife Agencies is developing a database that will include closer tracking
of the number and nature of poaching incidents nationwide.
In Nevada, officials said they suspect the strict regulation that has allowed
the elk and deer population to flourish may also be driving up poaching. People
who covet antlers as decorations or to sell on the market do not want to wait
the decade or more it can take to get a tag, or permit, to hunt a single big elk
or deer.
This year, 25,893 people requested an elk tag, but only 2,254 were issued, to
the dismay of some hunter groups that have pushed for more tags. On average, the
department receives 15 applicants for every bull elk tag.
Like other states, Nevada has a sparse staff of field game wardens who cover
vast swaths of territory, making it easier for poachers to get away with their
crimes. Often, poached animals are not found until hunters deep in the
backcountry come across something suspicious, said Rob Buonamici, the law
enforcement chief for the Nevada Department of Wildlife.
But several of the finds in the past couple of years have been close to growing,
populated areas, leading him to suspect the culprits may have been newcomers
taking advantage of easy targets close to home.
The rise in poaching here has come as Nevada has managed to increase its elk and
mule deer population greatly in recent years, and officials fear poaching will
set back those efforts.
“Wildlife belongs to everybody,” said Mr. Buonamici of the Nevada Wildlife
Department. “If not for what the departments of fish and wildlife do and the
sportsmen support through the fees they pay, the little old lady in L.A. would
never be able to see a wildlife documentary because there would be no wildlife
left.”
Poaching also angers licensed hunters because it depletes the pool of animals
they can potentially bag; by law they must carry away all the edible portions of
their kill, which typically fill a freezer and provide steaks, burgers, jerky
and the like for more than a year.
“I don’t understand why they just go out there, kill it and leave it,” said Lazo
Pavlakis, 76, shaking his head as he stood triumphant over a bull elk he legally
killed on the first day of an elk hunt here, 200 miles north of Las Vegas. He
had waited 18 years for a permit, issued by annual lottery, to shoot a single
elk, which he planned to consume with his grandsons.
“This is about once in a lifetime for me, so no, I don’t appreciate hearing
about elks killed and left out there,” he said.
Up against the poachers are wardens like Joe Maslach, a 17-year veteran of the
Nevada Wildlife Department and a devoted hunter himself.
On one recent tour, Mr. Maslach put 300 miles on his department-issued pickup
truck, checking the documentation of hunters, making sure that legally set traps
complied with regulations and responding to a call from a tipster of poached
chukars, a popular game bird.
Discovering 26 of the birds shot dead and tucked into bushes, Mr. Weslach grew
disgusted as he worked what in effect was a crime scene, photographing the
position of the birds, measuring tracks and taking the birds’ internal
temperature to estimate when they were killed.
“These are the kind of guys you would like to take to jail,” he said, stuffing
the birds, frozen stiff in the 20-degree chill, into a bag.
But it was also clear hunters were not accustomed to seeing Mr. Maslach or other
wardens. Several said they had never had their hunting documents checked or not
for years.
In 35 years of hunting in Nevada, Fred Perdomo, who was legally tracking an elk
this weekend, said he had encountered a game warden only twice — 12 years ago
and on this trip.
“I heard about the poachings and could not believe it,” he said. “It just
doesn’t make much sense.”
Mr. Maslach checked his papers, and then Mr. Perdomo set off toward a stand of
trees where an elk waited.
Poachers in West Hunt Big Antlers to Feed Big Egos, NYT, 9.12.2006,
http://www.nytimes.com/2006/12/09/us/09poach.html?hp&ex=1165726800&en=6dcb9e2d27e646a1&ei=5094&partner=homepage
Editorial
Taming King Coal
November 25, 2006
The New York Times
The front page of this newspaper’s business
section recently featured two articles about the world’s most plentiful fuel,
coal. Written from different parts of the globe, they framed the magnitude of
the task confronting international negotiators and the newly empowered Democrats
in Congress who want to put the brakes on emissions of carbon dioxide, the main
global warming gas.
One article pointed out that China will surpass the United States as the world’s
largest emitter of carbon dioxide by 2009, a decade ahead of previous
predictions. A big reason is the explosion in the number of automobiles, but the
main reason is China’s ravenous appetite for coal, the dirtiest of all the fuels
used to produce electricity. Already, China uses more coal than the United
States, the European Union and Japan combined. Every week to 10 days, another
coal-fired power plant opens somewhere in China, with enough capacity to serve
all the households in Dallas or San Diego.
What’s frightening about this for those worried about the long-term consequences
of warming is that nearly all of these plants are being built along traditional
lines, burning pulverized coal to make electricity. And what’s sad about it is
that there’s a much cleaner coal-burning technology available. Known as I.G.C.C.
— for integrated gasification combined cycle — this cleaner technology coverts
coal into a gas before it is burned.
These plants produce fewer of the pollutants that cause smog and acid rain than
conventional power plants do. More important, from a global warming perspective,
they also have the potential to capture and sequester greenhouse gases like
carbon dioxide before they enter the atmosphere.
This new technology is not readily available in China, but it is available to
utilities in the United States. Which brings us to the second article — an
announcement by TXU, a giant Texas energy company, that it intends to build 11
new coal-fired power plants in Texas, plus another dozen or so coal-fired
monsters elsewhere in the country. All told, this would be the nation’s largest
single coal-oriented construction campaign in years.
Is TXU availing itself of the cleaner technology? No. TXU will use the old
pulverized coal model. The company says the older models are more reliable. But
the real reason it likes the older models is that they are easier to build,
cheaper to run and, ultimately, much more profitable. So, like the Chinese, TXU
is locking itself (and the country) into at least 50 more years of the most
carbon-intensive technology around.
Barbara Boxer, the California Democrat who will shortly assume command of the
Senate environment committee, believes that we should impose a price on carbon
emissions (as Europe has done) so that companies like TXU will begin to think
about investing in cleaner technologies — technologies that China could then use
in its power plants. The message from both Texas and China is that Ms. Boxer
should get cracking.
Taming King Coal, NYT, 25.11.2006,
http://www.nytimes.com/2006/11/25/opinion/25sat1.html
After More Than a Century of Soaking, Washington Town
Mulls Move to Higher Ground
November 12, 2006
The New York Times
By WILLIAM YARDLEY
HAMILTON, Wash., Nov. 9 — To move this tiny town to higher
ground is not such a stretch for the short term. Residents here have done it for
years when the big rains have come.
Roll up the rugs. Empty the kitchen cabinets. Put the good furniture on the
second floor and hope the river does not rise that high. Then load up the RV and
head north of Highway 20 to the church.
“They’re actually getting a little better at this, unfortunately,” said the Rev.
Ron Edwards, the pastor of the First Baptist Church and a foul-weather host to
many of Hamilton’s refugees.
Most of the about 300 residents of Hamilton repeated their weary routine this
week, when an immense band of moisture, known as the Pineapple Express for its
origins in tropical waters near Hawaii, dumped record rain and drove rivers to
new heights across western Washington and Oregon. The storm killed three people,
breached levees, flooded farms, washed out roads and forced hundreds of
evacuations.
And here in Hamilton, 80 miles northeast of Seattle, where the Skagit River once
again ignored its ostensible banks, where mud now slicks the ramp that Dave
Thompson uses to roll his wheelchair to his front door, where “flood line” signs
mark the head-high reach of the river in 2003, this last storm has renewed
attention, and momentum, to the idea of moving Hamilton to higher ground for
good.
“The only problem we have with it is that we don’t have a program that buys new
town sites,” said Carl Cook, the mitigation director for the regional office of
the Federal Emergency Management Agency in Washington State.
And so the Hamilton Public Development Authority was born in 2004. The group, an
agency created by the town with a board that includes representatives of local
Indian tribes and the Nature Conservancy, wants to move Hamilton, minus the mud,
across Highway 20 to about 200 acres of private land on a dry hillside.
Supporters of the move say it would serve dual purposes: improving the lives of
Hamilton residents, many of whom cannot afford to move on their own, and
improving the Skagit, home to one of the largest wintering colonies of bald
eagles in the country and a spawning site for six species of salmon.
The greatest challenge now is buying the new land. Board members say it would
cost about $4 million, which they hope to raise from the federal and state
government. But another challenge would be actually moving the people, not all
of whom say they want to go.
“We’re too old to start over,” said Kathy Lipsey, 59, who moved to Hamilton with
her husband, Ed, 64, a hay farmer, about 15 years ago. The couple knew about
Hamilton’s history of flooding when they moved into a double-wide mobile home
there. But the price was right.
This year they raised their house three feet, using hydraulic jacks and concrete
blocks. “You always can convince yourself that you’re going to be a little
better prepared than you are,” Mr. Lipsey said. “But the floods come differently
each time.”
It has been a soggy century for Hamilton, which once thrived on coal mining and
logging but fell into depression after the timber industry declined in the
1980s. Library archives have images of floods from the 1890s. On
skagitriverhistory.com, there are links to newspaper articles about floods
published as far back as 1896, when Hamilton was “totally inundated” by
flooding.
The floods never stopped, but people stayed, rebuilding after floods as recent
as 1990, 1995, 1996 and 2003.
FEMA estimates that it has spent at least $10 million helping Hamilton recover
over the years, but supporters of the move say the actual figure could be $20
million or more. While Hamilton would not be the first river town in the nation
to move, its plan for doing so is distinctive.
Over the course of 20 years, Hamilton’s riverfront lots would slowly slip from
the map through a kind of land swap that is part environmentalism, part social
engineering. The new town could have up to 400 lots.
No one would be forced to relocate, but the new development authority would buy
property and help people move. The authority, said Patrick M. Hayden, a lawyer
who is the part-time town attorney, would raise some money by selling land on
the new town site and then use that money to buy property in the old part of
town, preventing it from being developed again.
Residents of Hamilton and other parts of the Skagit River floodway could buy or
rent in the new town site at discounted rates.
At the same time, the river, which twists 163 miles from British Columbia to the
Puget Sound, would offer that much more undisturbed habitat along its banks.
Gayle Poole, a cook at Joy’s Bakery in Sedro-Woolley, about 12 miles west, said
she moved from Hamilton after the floods of 1995 and 1996. Ms. Poole said she
knew some people had stayed in Hamilton solely to file claims with FEMA after
each flood.
“To me it’s stupid to keep pouring out the taxpayers’ money when the solution’s
right there on that hill,” she said, referring to the proposed new town site.
Mr. Cook, the FEMA official, acknowledged there was room for abuse but said,
“There’s an obligation on FEMA to make sure claims are paid.”
Mr. Edwards, the pastor, said he believed few people were exploiting FEMA.
“By and large, they’re the exceptions,” he said. “The norm is that people don’t
have the money to move.” As for residents who say they like life in Hamilton as
it is and would not want to move to the new town, “I think that’s kind of a
smokescreen,” Mr. Edwards said. “I think they would get out, if they knew they
really could.”
After More Than a
Century of Soaking, Washington Town Mulls Move to Higher Ground, NYT,
12.11.2006,
http://www.nytimes.com/2006/11/12/us/12flood.html?hp&ex=1163394000&en=ba10e236fd44e9ea&ei=5094&partner=homepage
Drilling Deep in the Gulf of Mexico
November 8, 2006
The New York Times
By JAD MOUAWAD
ABOARD THE WESTERN NEPTUNE, Gulf of Mexico — Every 17
seconds, a small armada of ships trawling 130 miles from the Louisiana coast
fire powerful air guns toward the bottom of the sea in a hunt for the next big
oil discovery.
The Neptune and three other ships are on a three-month mission to map one of the
most remote regions of the United States. The data they collect from the
vibrations set off by the guns in the gulf’s deepest waters will help engineers
form a picture of some of the world’s newest petroleum prospects.
As oil consumption grows and access to most oil-rich regions becomes
increasingly restricted, companies are venturing farther out to sea, drilling
deeper than ever in their quest for energy. The next oil frontier — and the next
great challenge for oil explorers — lies below 10,000 feet of water, through
five miles of hard rock, thick salt and tightly packed sands.
“It’s not a place for the timid,” said Paul K. Siegele, the vice president for
deepwater exploration at Chevron, which commissioned a survey by the Neptune.
“It’s a place where a lot of people have lost their shirts.”
To picture the challenge, imagine flying above New York City at 30,000 feet and
aiming a drill tip the size of a coffee can at the pitcher’s mound in Yankee
Stadium. Then imagine doing it in the dark, at $100 million a go.
Even after hitting pay dirt, it will take another decade and billions of dollars
to transform oil from these ultra-deep reserves into gasoline. Some of the
technology to pump the sludge from these depths, at these pressures and
temperatures, has not yet been developed; only about a dozen ships can drill
wells that deep, and no one knows for sure how much oil is down there.
While most people regard affordable and abundant supplies as an essential
element of the nation’s prosperity, few realize how complex and costly the quest
has become, even in the nation’s own backyard. At the same time, some experts
argue that the industry is nearing the limits of what it can do to maintain a
growing supply of fossil fuels.
But for the geologists, scientists and explorers who work here in the Gulf of
Mexico, the history of the deep water holds another lesson: technological
breakthroughs have always breathed new life into the energy industry.
“This is as close as we get to the space age on earth,” said Kenny Lang, BP’s
vice president for gulf production.
Thanks to advances in offshore technology, and tremendous leaps in
supercomputers and three-dimensional imaging, this region’s deepest waters have
become the hottest exploration prospects in the nation.
Barely more than a decade ago, the area was called the Dead Sea and was nearly
abandoned as the major energy companies left for better prospects in Russia and
the Caspian Sea basin.
In fact, the region’s output would have peaked and started slipping long ago
without the leaps that have driven the search for offshore oil and natural gas.
While production from the Gulf’s shallow waters is declining, deepwater
production is on an upswing. Altogether, the Gulf of Mexico accounts for more
than 25 percent of the nation’s oil production and 20 percent of its natural gas
output.
According to the most optimistic estimates, there could be 40 billion barrels of
undiscovered reserves in the deep water, which starts at about 1,500 feet,
enough to satisfy American consumption for more than five years.
These reserves might lift the offshore output to 2.2 million barrels a day by
2012, up from 1.5 million barrels today.
Still, that’s a drop in the bucket. Even as the deepwater resources are
developed, the nation is expected to continue to import more than two-thirds of
the 20 million barrels of oil it consumes each day.
Since 2001, there have been 12 discoveries in waters 5,000 feet deep, drilling
into older rock formations known as the Lower Tertiary. Those point to the
presence of a region that might hold as much as 15 billion barrels of reserves.
The latest and largest find in the Lower Tertiary, about 250 miles south of New
Orleans, was announced in August by BP. The find is a layer of 800 feet of
oil-bearing sands, more than five miles under the ocean floor.
“The deep water in the Gulf of Mexico is a textbook application of where
technology drove opportunity,” said Barney Issen, a geologist with Chevron.
“It’s been known for quite some time that there were huge resources out there
but we didn’t have the seismic data to have the nerve to drill. And even if we
did, we didn’t have the drilling tools until recently.”
Last month, Royal Dutch Shell announced that it would develop three ultradeep
discoveries 200 miles south of the Texas coastline. The project, called Perdido,
will tie together fields called Great White, Tobago and Silvertip, and is
projected to have a daily capacity of the equivalent of 130,000 barrels of oil
by the turn of the decade.
Some of the earlier doubts about production in the Lower Tertiary were recently
lifted when Chevron successfully tested its Jack field. The test proved that oil
could flow in commercial quantities from sediments deposited as long as 65
million years ago.
“The geology has been proven, the oil is present,” said Renato Bertani, the
chief executive of the American unit of Petrobras, Brazil’s national oil
company. His company plans to produce from Lower Tertiary discoveries in 2009.
“The result really encouraged us tremendously,” he said. “There is nevertheless
some level of uncertainty.”
Part of the problem for deep exploration in the Gulf of Mexico is a thick layer
of salt — 15,000 feet deep in some places — that extends unevenly under the
Gulf’s waters. The salt acts like frosted glass when geologists try to see
through it, blurring their view of untapped oil reserves thought to lie below.
A clear image of the subsea salt can make the difference between a successful
discovery and a dry well.
“This is an industry that has to manage risk,” said Rocco Detomo Jr., a senior
geophysicist at Shell. “And it’s much too risky and too expensive to look for
oil the old-fashioned way.”
At BP’s sprawling campus in a Houston suburb, geologists take many years looking
for oil before drilling a single well. They are counting on huge leaps in
processing power from computer networks that allow scientists to make sense of
the complex seismic data acquired by ships like the Neptune.
The more sophisticated data is necessary because drilling costs have soared in
recent years and can now reach as much as $800,000 a day, or up to $100 million
for a single well. Those costs raise the risks when, on average, only one in
every three to five wells turns up oil.
Chevron, for example, expects to spend $3.5 billion on its Tahiti project, which
should start production in 2008. BP invests more than $2 billion a year in the
Gulf and devotes 40 percent of its global exploration budget here.
“When you’re living in that place where you’re constantly on the edge,
occasionally you’re going to stub your toe,” Mr. Lang of BP said.
That recently happened at BP’s Thunder Horse, the world’s largest offshore
platform, with a planned oil capacity of 250,000 barrels a day. The platform,
dwarfing anything else in the Gulf, was supposed to start production last year,
but ran into problems, including being left listing after Hurricane Dennis
passed in 2005. The latest mishap involves replacing critical pieces of
equipment at the bottom of the ocean, a lengthy process that will delay
production until 2008.
Thunder Horse has been more than a decade in the making, according to Cindy A.
Yeilding, the company’s chief geologist in Houston. Back in the early 1990s, Ms.
Yeilding and other BP scientists used better technology, including the new
three-dimensional seismic mapping, and more powerful computers to focus on big
fields, which are referred to as “elephants” in the industry.
“We went on an elephant hunt,” she said. “To test a new play, we needed to find
a huge accumulation of hydrocarbons and we needed a rig that could drill in
5,000 or 6,000 feet of water. It was a combination of geology and technology.”
From 1992 to 1997, the company acquired dozens of new leases from the
government, spurred by a new royalty relief program that provided extra
incentives to encourage deepwater exploration.
On the first day of 1999, the company finally began drilling a well in the
Mississippi Canyon’s Block 778, a lease in the northeast region of the Gulf,
about 125 miles from New Orleans. The drilling team, led by Ms. Yeilding, was
confident it had found the giant field it was looking for but was nervous at the
prospect of drilling through salt in deep waters.
“We were petrified,” Ms. Yeilding recalled. “We were so afraid of salt, we
wanted to go around it.”
But the efforts paid off. On July 4 that year, the BP well reached its final
depth of 29,000 feet, after having gone through 6,000 feet of water and 2,500
feet of salt. There, BP made the biggest discovery in the Gulf of Mexico. The
field, holding one billion barrels of reserves, became known as Thunder Horse.
The wider hunt has been on ever since. On the Neptune’s deck, the repetitive
beat of the air guns can barely be heard. But below the sea, the vibrations
travel deep inside the earth’s crust. Then they bounce back and are picked up by
streamers of densely packed electronic sensors, stretching four miles behind the
ship.
Inside, working in cool temperature-controlled rooms, dozens of engineers
control the ship’s position, collect the seismic data and begin forming a
picture of the earth’s geological layers.
“The easy oil is running out because it has already been found,” said Ezio
Plenizio, an Italian geophysicist aboard the Neptune, which belongs to the oil
services company Schlumberger. “But 20 years ago, when I started in the
business, people were already saying that oil is going to run out soon.”
Drilling Deep in
the Gulf of Mexico, NYT, 8.11.2006,
http://www.nytimes.com/2006/11/08/business/worldbusiness/08gulf.html?hp&ex=1163048400&en=6d5e79177c843992&ei=5094&partner=homepage
Taking On a Coal Mining Practice as a
Matter of Faith
October 28, 2006
The New York Times
By NEELA BANERJEE
HALE GAP, Va. — The windswept ridge that
Sharman Chapman-Crane hiked to on a recent fall afternoon is the kind of place,
she said, that she normally would avoid. From there, she could see what she
loved about Appalachia and what it had lost, and she wanted her visitors to see
it, too.
The old rounded peaks of the mountains encircled the ridge, dense with trees
smudged red and gold. But in the middle of the peaks, several stood stripped
bare and chopped up, a result of an increasingly common and controversial coal
mining practice called mountaintop removal.
“Doesn’t it say in Scripture, ‘Who can weigh a mountain, measure a basket of
earth?’ ” Ms. Chapman-Crane said, recalling descriptions of God’s omnipotence in
Isaiah 40:12. “Well, only God can. But now, the coal companies seem to be able
to do it, too.”
Ms. Chapman-Crane, her colleagues at the Mennonite Central Committee Appalachia
and other Appalachian Christians are trying to halt mountaintop removal, and at
the heart of their work, they say, is their faith.
They are part of an awakening among religious people to environmental issues,
said Paul Gorman, executive director of the National Religious Partnership for
the Environment, an interreligious alliance. Increasingly, religious people
across denominations are organizing around local issues, like preventing a
landfill, preserving wetlands and changing mining.
“People of faith are thinking afresh about human place and purpose in the
greater web of life,” Mr. Gorman said. “They are asking, What does it mean to be
present in a crisis of God’s creation made by God’s children?”
Although Christian environmental activists speak out against mountaintop removal
at different levels of government, many believe that showing the practice’s toll
will persuade others to join them in seeking stricter regulation of it, if not
an outright ban.
A new group, Christians for the Mountains, urges religious people to take up
mountaintop removal “as a spiritual issue,” and it has made a DVD that it is
distributing to churches and individuals, said Allen Johnson, an evangelical
Christian and a founder of the group.
The Rev. John Rausch, director of the Catholic Committee of Appalachia, has led
tours of mountaintop removal sites since 1994. Mr. Rausch estimates that 400
people have taken his tour. They learn of the tours by word of mouth or from
their churches, pay a few hundred dollars to stay in simple accommodations, hike
several miles through forests and mined lands and talk to people whose lives
have been affected by mountaintop removal.
The Mennonite Central Committee Appalachia, based in Whitesburg, Ky., gave its
first tour in October, focusing on a corner of southeastern Kentucky and
southwestern Virginia rich in coal and diverse forests.
On the second morning of the four-day tour, the trip’s leaders, Ms.
Chapman-Crane and the Rev. Duane Beachey, marched their three-member group up
the mile-long trail to Bad Branch Falls. Poplars, beeches, hemlocks and
magnolias thatched together a canopy above the trail, and the rain of their
leaves made a soft ticking sound. Wild ginseng and wintergreen lined the path.
Cottage-size boulders leaned forward over a rushing stream below the trail.
“Not every place on the mountains has waterfalls like Bad Branch,” Ms.
Chapman-Crane said. “But this is pretty much what it’s like on the mountains
here. The forests of the Appalachian range are like a northern rain forest.”
Mary Yoder, who had volunteered to come on the trip for her congregation,
Columbus Mennonite Church in Columbus, Ohio, asked, “So this is the kind of
place that gets blown up in mountaintop removal?”
Mr. Chapman-Crane replied, “This is what would be lost, is lost, when they blast
a mountaintop.”
The United States is rich with coal, and mountaintop removal has begun to
replace underground mining in Appalachia as the preferred method of extraction
because of its efficiency and lower cost. Mountaintop removal involves leveling
mountains with explosives to reach seams of coal. The debris that had once been
the mountain is usually dumped by bulldozers and huge trucks into neighboring
valleys, burying streams.
The coal industry asserts that mountaintop removal is a safer way to remove coal
than sending miners underground and that without it, companies would have to
close mines and lay off workers.
Luke Popovich, a spokesman for the National Mining Association, a coal lobbying
group, said that by fighting mountaintop removal religious groups might find
their priorities colliding.
“They find themselves in a difficult position,” Mr. Popovich said, “because
they’re expressing support for those who purport to protect nature, and, at the
same time, that activism carries implications for the human side of the natural
equation. Human welfare depends on the rational exploitation of nature.”
Christianity runs wide and deep in Appalachia. At the Courthouse Cafe in
Whitesburg, Mr. Beachey explained that as a Christian concern for his neighbors
drove his desire to rein in mountaintop removal. But as in much of Appalachia,
pastors and churchgoers here are reluctant to stir up trouble: many work for
coal companies, or the people next to them in the pew do. Others believe
stopping mountaintop removal would eliminate the few jobs that remain.
Many understand their faith differently than Christian environmentalists do. One
night, Darrell Caudill and several friends gathered to play their guitars for
the environmental tour and sing traditional songs and hymns. Mr. Caudill, 57,
works for a coal company and believes in being a good steward of the earth. But
to him, he said, being a Christian means being saved and spreading the Gospel.
There is no tension between being committed to his faith and supporting
mountaintop removal.
“Why did God produce coal then and put it underground?” said Mr. Caudill, who
attends a nondenominational evangelical church. “He produced things that we need
on this earth. Without coal, you wouldn’t have the warmth and light you have
right now.”
Late in the trip, the tour group drove Lucious Thompson, 63, a former coal
miner, to the horseshoe of peaks above McRoberts, where he lives. The peaks have
been leveled. The woods where he had hunted are gone. The new grass on the new
plateaus barely clings to the soil, which means that McRoberts often floods now
after hard rains, he said.
“I’ve been flooded three times since they started working on the mountaintop,”
Mr. Thompson said.
He talked of neighbors whose house foundations had been cracked because of the
daily blasting, of a pond lost to sludge and of respiratory ailments because of
the coal dust flying from the coal trucks.
“The coal company says it’s God’s will,” he said. “Well, God ain’t ever run no
bulldozer.”
People like Mr. Thompson and the woods and mountains of Appalachia seemed to
make the point the tour’s organizers hoped for. After the tour, Ms. Yoder
returned to Columbus to tell her congregation of about 200 what she had learned.
“My comment to the church was that I would do the tour with an open mind,” she
said, “and my conclusion is there is no room for mountaintop removal in our
country.”
Taking On a Coal Mining Practice as a Matter of Faith, NYT, 28.10.2006,
http://www.nytimes.com/2006/10/28/us/28mountains.html?hp&ex=1162094400&en=08c7ce06e6fb8d86&ei=5094&partner=homepage
A Bet on Ethanol, With a Convert at the Helm
October 8, 2006
The New York Times
By ALEXEI BARRIONUEVO
DECATUR, Ill.
BACK in 1999, when she was the head of refining at Chevron,
Patricia A. Woertz told a group of energy officials that it was “time to stop
mixing agricultural policy with fuels policy.”
In that same speech, at a fuels conference in Washington, Ms. Woertz also
publicly expressed worry about the “unintended consequences” of a federal
mandate requiring the use of corn-based ethanol in gasoline.
Today Ms. Woertz is standing on the other side of the gasoline debate,
wholeheartedly supporting the growth of ethanol, the fuel the oil industry loves
to hate but has had to learn to live with. In May, she took over as the chief
executive of Archer Daniels Midland, the giant agricultural company that also
happens to be the biggest ethanol producer in the country.
A.D.M. spent nearly three decades pushing relentlessly for the use of ethanol in
gasoline, lobbying Congress and the White House and rousing farmers. But only in
the last few years, amid record-high oil prices and government mandates to use
ethanol, has this clear, colorless fuel — a form of ethyl alcohol — finally
begun to catch on, transforming it from a dream into almost a religion in the
Midwestern states that produce corn.
Ethanol has been a boon to A.D.M.’s fortunes, helping it to achieve record
earnings last year of $1.3 billion on sales of $36.6 billion. While the company
does not break down the sources of its profit, analysts say ethanol could make
up 40 percent of A.D.M.’s net income in fiscal 2007, about double what it meant
to the company last year.
With that bigger profit potential has come greater volatility in A.D.M.’s stock,
which lately has mirrored more closely the rise and fall of energy prices. That
has caused some analysts to caution its investors to go slow on the company.
“For the bulk of the company’s history, the vast majority of their profits came
from crushing products like corn to feed the world,” said Eric Katzman, an
analyst at Deutsche Bank. But a greater proportion of A.D.M.’s earnings will
come from biofuels in the future, he said, as a large portion of the $2.4
billion the company plans to invest in the next two years is energy related.
So far, that capital is devoted to sustaining corn as the preferred crop for
producing ethanol. While ethanol can be made more cheaply from sugar cane, as it
is in Brazil, lobbying by A.D.M. and farm-state politicians has helped corn win
out as the crop of choice for ethanol in the United States. It did not hurt that
the powerful American sugar lobby helped to erect trade barriers keeping out
cheaper imported sugar and cheaper imported ethanol.
MOST politicians originally saw ethanol as a way to help farmers to make more
money from their corn crop. Now it is being seen by policy makers, including
President Bush, as a partial antidote to the nation’s reliance on foreign oil.
To achieve that vision of energy independence will require much more ethanol,
and many agricultural experts have begun to worry about the food-for-fuel
trade-off of using so much corn — more than 60 percent of which is used to feed
livestock, an important American export — to produce fuel. And corn is one of
the most energy-intensive and water-intensive crops to grow anywhere.
But A.D.M. has been slow thus far to be a party to research that might sway
ethanol production away from corn and into crops that require less water and
fossil-fuel based fertilizers; one such crop is switchgrass, a tall prairie
grass that is highly drought resistant. Some outside experts call A.D.M.’s
strategy shortsighted.
“I am sure A.D.M. shareholders want the company to be economically viable for
the next 20 to 25 years, not just for the next 5 to 10,” said Clayton K.
Yeutter, a former secretary of agriculture and United States trade
representative. “If ethanol is going to be a significant part of A.D.M.’s
profits, they should have as much interest in finding the lower-cost inputs as
anyone would.”
Sitting in a conference room in A.D.M.’s global headquarters, Ms. Woertz, 53,
did not dwell on the risks of A.D.M.’s focus on corn as the primary source of
ethanol. She promoted ethanol’s growth potential, saying she sees the fuel
making up 10 percent of the country’s gasoline supply, by sometime next decade,
up from about 4 percent this year.
The idea that ethanol could one day replace more than half of gasoline is not
out of the realm of possibility, either, she said, but will require successful
development of ethanol from agricultural waste like corn stalks, or hardy
grasses like switchgrass. The technology to efficiently produce this so-called
“cellulosic” ethanol is most likely many years away. In any event, “We will be
there when it’s there,” she said. “We want to intersect the future and still be
a big player in the bio-energy world.”
She said she saw little contradiction in her previous concern about the fuel — a
worry that she said was tied to federal clean air standards for tailpipe
emissions and the debate over how to meet them. Refiners, she said, wanted to be
told what the emissions standards were and to allow their scientists to find a
way to meet them, rather than to have a specific gasoline formulation dictated
by regulators.
“Things have evolved,” she said, and the oil industry and ethanol producers
“have come to work much more closely on the fuel supplies for this country.”
Many analysts saw the hiring of Ms. Woertz as a signal that A.D.M. wanted to
become the Exxon Mobil of ethanol. Indeed, her energy experience helped win her
the job, A.D.M. officials said. But they added that she was also selected
because her background as a strategic planner at Chevron gave A.D.M.’s board
members the confidence that she could chart a vision for the company’s future.
“We needed someone that was a proven and capable strategist,” said Kelvin R.
Westbrook, the board member who led the search process. Her energy experience
“was a valued part of her background but by no means was it a determining
factor.”
Ms. Woertz arrives at a favorable time in the company’s 104-year history. A.D.M.
paid $400 million last year to settle the last of a pile of lawsuits stemming
from a price-fixing scandal in the mid-1990’s involving lysine, an animal feed
additive. Three top executives were sent to prison over the scandal, including
Michael D. Andreas, A.D.M.’s former executive vice president and the son of
Dwayne O. Andreas, the chief executive who led the company for 27 years.
At the same time, prices are rising for high-fructose corn syrup and other
products that A.D.M. processes from corn, soybeans and wheat. And the demand for
ethanol is forecast to soar as federally mandated fuel formulations take effect.
Congress passed a law last year requiring refiners to increase their use of
ethanol to 7.5 billion gallons by 2012, from 4 billion this year.
The future looks even better, if that is possible. While the federal government
has mandated greater ethanol use in the United States, European governments are
pushing for higher use of soybean-based biodiesel in the fuel supply. A.D.M. is
one of the world’s biggest producers of both of those fuels.
A.D.M. is also the world’s largest producer of food and animal feed. The
company, which adopted the slogan “Supermarket to the World” in the 1990’s, says
it makes enough to feed 300 million people, as well as many millions of cows,
chickens and pigs.
WHEN Ms. Woertz looks to the future, she sees the twin trends of a growing
population that needs additional food — with a diet that increasingly demands
protein — and the quest for alternative sources of energy to oil.
She said A.D.M. was “uniquely positioned” to benefit from growing global demand
for both food and fuel. “We have the technologies, we have the assets and we
have the infrastructure,” she said.
That optimism is apparent in A.D.M.’s latest annual report, the first to feature
Ms. Woertz. Its title is “We See Opportunity.”
How exactly A.D.M. will go about capitalizing on its opportunities remains to be
seen. Ms. Woertz says senior managers are working on a plan, to be unveiled to
analysts in November, that will outline the company’s biofuels strategy over the
next decade.
While the plan is still being drafted, Ms. Woertz said that it clearly would
involve a stronger push by A.D.M. to develop ways to make ethanol from grasses
and agricultural waste — cellulosic ethanol. She hinted that the plan might
involve partnerships with venture capitalists like Vinod Khosla, the founding
chief executive of Sun Microsystems, who is investing in companies working on
cellulosic ethanol and other alternative fuels, and stumping for ethanol all
over the country.
In August, Ms. Woertz invited Mr. Khosla to sit in on a meeting in Chicago of
A.D.M.’s strategic planning committee, where he briefed the executives on
cellulosic ethanol opportunities.
“We have discussed opportunities we could pursue together,” Ms. Woertz said of
Mr. Khosla. “All of this question about the longer term is something we
absolutely have under way and there will be more to come.”
In Decatur, Ms. Woertz and two other top executives at the company made it clear
that A.D.M.’s plans, for the moment, revolved mostly around getting ethanol from
corn. The company has little concern about the amount of corn being harvested
for biofuels, even as it is set to commercialize a promising new technology to
produce biodegradable plastics that will use even more corn.
Ms. Woertz and the other A.D.M. executives said they believed that the genetic
modification of corn seed, which has led to a 75 percent increase in corn yields
since 1980, would continue to keep pace with growing demand for nonfood products
like ethanol. That stands in stark contrast to the concern of some agriculture
executives — notably Warren R. Staley, chief executive of Cargill, an A.D.M.
rival — that if the ethanol boom were left unchecked, it would eventually raise
food prices and hurt America’s grain exports.
At A.D.M.’s main research center, a converted high school here in Decatur, two
company executives seemed unfazed by that concern. Mark G. Matlock, senior vice
president for research and development, said A.D.M. was trying to wring more
ethanol out of unused parts of the corn crop. He said he was less optimistic
about the near-term economics of producing ethanol from switchgrass, an idea
promoted by President Bush in his State of the Union address this year. While
switchgrass is cheaper to grow than corn, it would be more costly to convert to
ethanol, partly because the country lacks the machines to harvest and transport
switchgrass efficiently as a crop.
“From a strategy standpoint it made the most sense to look at the existing corn
streams that we are handling through our network of everything from country
elevators to processing facilities,” said Edward A. Harjehausen, the senior vice
president for food and feed ingredients. The company is involved in a research
project with the Energy Department to take the corn fiber stream and convert as
much of the cellulose as possible to additional ethanol.
The way the A.D.M. executives see it, by focusing on waste streams already
coming out of its corn-processing plants, the company can avoid the “chicken and
egg” problems that other companies may face in trying to make cellulosic ethanol
from new crops like switchgrass: farmers may be hesitant to grow the grass until
there is a market for the crop, but companies will be reluctant to create a
market and build separate processing plants until they see a ready supply of raw
material.
“Everyone has this vision in the end of a billion tons of biomass generating all
of our fuel needs,” Mr. Matlock said. “That is the far vision. So we focus on
those intermediate steps to get to the vision.”
Ms. Woertz is a fresh start for a company that had been run by four families for
a century. The families once controlled more than half its board seats and still
control some 10 percent of A.D.M.’s stock, analysts said. That insular grip on
power allowed the company to make long-term bets, which paid off handily. In the
1970’s, for example, A.D.M. invested heavily in factories to make high-fructose
corn syrup, a low-cost corn-based sweetener that later replaced sugar in Coke
and Pepsi and hundreds of other foods.
A.D.M. fell into the biofuels business later in the decade, when the company
tried to solve a problem with seasonal overcapacity in its corn syrup plants by
producing something else from abundant corn supplies: ethanol. That set off a
two-decade-long lobbying and public-relations effort by the elder Mr. Andreas to
win broader acceptance for ethanol as a fuel.
CRITICS, noting ethanol’s shortcomings like its lower energy content versus
gasoline and the fact that it receives a 51-cent-a-gallon subsidy, say that
while the marketing campaign has been good for the company, it has been bad for
the country. “A.D.M.’s role in the ethanol debate has largely been to provide
the narrative that the politicians need to justify the handouts they want to
give to farmers anyway,” said Jerry Taylor, a senior fellow at the Cato
Institute who has been critical of ethanol.
The ethanol promotion campaign was hurt when the lysine price-fixing scandal
torpedoed A.D.M.’s reputation. Secret audio tapes made by a former executive,
Mark E. Whitacre, in the early-1990’s revealed a scheme by top A.D.M. executives
to fix the global price for lysine with executives from Japanese, French and
Korean competitors. Michael Andreas and Terrance S. Wilson, the head of corn
processing, were both sentenced to two years in prison for their roles in the
scandal. Mr. Whitacre was sentenced to nine years for embezzling $9.5 million at
the same time he was helping the government to investigate his bosses.
Since the scandals shook public confidence in A.D.M., the board has been
overhauled with independent outsiders like Mr. Westbrook, who joined in 2003 and
is chief executive of Millennium Digital Media, a broadband services company.
Ms. Woertz’s hiring continues the trend.
“The board was cognizant of the fact that A.D.M.’s image had approached a
Mafioso level over the last few decades with all the scandals,” said John M.
McMillin, a longtime analyst for the Prudential Equity Group. “I am not sure she
understands the difference between a soybean and a rapeseed, but she knows
people and has identified the people within the company to trust.”
Ms. Woertz’s energy background, especially in refining, has helped her grasp
quickly the basics of A.D.M.’s agricultural business. Oil refiners take a barrel
of crude oil and process it into a slate of products like gasoline and jet fuel.
A.D.M. takes a bushel of corn or soybeans and spits out dozens of food products
on the other side.
Mr. Westbrook and analysts agree that she also brings a human touch that was
lacking at A.D.M. in the past. A divorced mother of three grown children, she
quickly embraced the idea of moving to Decatur, a sleepy city of 78,000. Other
candidates hoped to commute to work from Chicago, some 180 miles away, Mr.
Westbrook said.
SHE is also comfortable with bold initiatives. A.D.M. once controlled more than
60 percent of ethanol production, but today it controls less than 25 percent
after the building of a number of farmer-owned ethanol plants in recent years.
A.D.M. is planning to recapture some market share by adding 550 million gallons
of ethanol capacity over the next two years, pushing up its total by 50 percent,
to 1.65 billion gallons.
Ms. Woertz is also fascinated by aspects of A.D.M. that have nothing to do with
biofuels, especially the company’s push to commercialize technology that uses
corn starch to make plastics that, theoretically, at least, are biodegradable.
At one point, she reached behind her chair and pulled a clear plastic bag from
her purse containing several green plastic items, including golf tees. “This is
made from corn, so it is a corn and starch stream, and you can dial up or dial
down the biodegradability,” she said, showing off a tee. “People throw their
spoons out the window from McDonald’s. Ours will biodegrade.”
But for now, it is ethanol, the fuel she once questioned, that is giving Ms.
Woertz the spotlight. She is set to make her first public speech since becoming
C.E.O. at a conference promoting biofuels on Wednesday in St. Louis, where she
will be joined by Mike Johanns, the secretary of agriculture; Samuel W. Bodman,
the energy secretary; and Charles O. Holliday Jr., the chief executive of
DuPont. President Bush has been invited and may speak on Thursday.
One person who has reviewed Ms. Woertz’s speech said it would focus on the
“innovation, investment, partnership and vision” needed to ensure that biofuels
“fulfill their promise in meeting global needs for sustainable supply, energy
security and environmental improvement.”
A Bet on Ethanol,
With a Convert at the Helm, NYT, 8.10.2006,
http://www.nytimes.com/2006/10/08/business/yourmoney/08adm.html?hp&ex=1160366400&en=9a40a738b5a6de5c&ei=5094&partner=homepage
Woman Pleads Guilty in UW Ecoterrorism
October 4, 2006
By THE ASSOCIATED PRESS
Filed at 1:37 p.m. ET
TACOMA, Wash. (AP) -- A woman pleaded guilty Wednesday to
conspiracy and arson in the 2001 firebombing of the University of Washington's
horticulture center, one of the Northwest's most notorious acts of ecoterrorism.
Under Jennifer Kolar's plea agreement, federal prosecutors will ask U.S.
District Judge Franklin Burgess to sentence her to five to seven years.
Kolar, 33, did not comment after entering the plea. Her sentencing is scheduled
for Jan. 5.
The fire on May 21, 2001, severely damaged the building, which was rebuilt at a
cost of about $7 million. The center had done work on fast-growing hybrid
poplars in hopes of limiting the amount of natural forests that timber companies
log.
The Earth Liberation Front, a shadowy collection of environmental activists,
claimed responsibility five days after the fire and issued a statement saying
the poplars pose ''an ecological nightmare'' for the diversity of native
forests.
Woman Pleads
Guilty in UW Ecoterrorism, NYT, 4.10.2006,
http://www.nytimes.com/aponline/us/AP-Ecoterrorism-Plea.html
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