President Obama's new environmental tack: dismantling fossil fuel subsidies and expanding the green economy. (image: whitehouse.gov)

With the release of the White House budget Monday came lots of news on the energy front. According to The New Republic, the White House plans to get rid of $36.5 billion in tax breaks for fossil fuel producers over the next decade. This idea first emerged back in the fall of 2009, when President Obama vowed to end fossil fuel subsidies as a way to cut back on greenhouse gas emissions. As HeatingOil.com reported in September, Obama was joined by other members at the G20 Summit in a pledge to phase out such tax breaks and incentives.

Also part of the $1.3 trillion budget was a $100 billion jobs package focusing on both education and clean energy. As Brian Lehrer reported on his WNYC show Monday, vocational schools in New Jersey funded by federal dollars are turning out students trained in the various of green energy fields such as home energy auditing. More specifically, Dr. Michael Pennella, Superintendent of the Essex County Vocational Technical Schools, talked about the state’s weatherization program, where unemployed adults are trained in weatherization, then placed in state jobs. A similar program was announced in Colorado back in November.

The truth is, moving green energy from theory to practice will take awhile. And while the end of subsidies is a positive step, it will likely have little effect on oil prices or production here in the United States. However, each step will likely have a cumulative effect, resulting in long-term lower prices for heating oil and other energy consumers across the country.

President Obama follows through with Copenhagen promise, but the Senate’s role is still unclear. (image: timesonline.co.uk)

In encouraging but slightly underwhelming news, the United States gave formal notice to the UN last week that it would embrace the Copenhagen Accord and reduce greenhouse gas emissions. According to the Guardian, Todd Stern, the State Department envoy for climate change, told the UN that America “could cut carbon emissions by 17% from 2005 levels by 2020.” Of course, he added, such action would be contingent upon Congressional climate change legislation.

The Guardian found the announcement especially encouraging coming on the heels of Wednesday’s State of the Union address, in which President Obama promised to move forward with his energy and climate change agenda. The 2020 commitment is only a first step, to be followed with a 42 percent cut in 2030, and a cut of more than 80 percent by mid-century.

Under the watered-down accord reached in Copenhagen, countries were expected to offer formal proposals of action by January 31. But with an “elastic” deadline, many fear any momentum generated by the Copenhagen talks has fizzled. Obama’s recent pledge to continue with the climate agenda, as well as his embracing the Copenhagen Accord, is hoped to generate some continued movement.

As both the Los Angeles Times and TreeHugger.com pointed out Friday, Obama’s move was somewhat bold since following through with his pledge will be impossible without approval from the Senate. Although the bill has passed in the House, its prospects in the Senate are uncertain amid the debate over healthcare and after the recent special election that took away a Democratic senate seat.

Global reaction to Obama’s UN pledge has been virtually nonexistent, with most news outlets focusing on the news of the national budget released Monday. Besides the obvious importance of economic news in this global recession, it is likely that many see this pledge as nothing more than good intentions. The real news will be if and when the Senate can make it official.

In regards to commitments made by other nations, the Maldives blows everyone out of the water with a promise of 100 percent carbon neutrality by 2020. China has stuck to its course of lowering carbon intensity by 40 to 45 percent by 2020, which would leave it free to infinitely raise emissions, making it very difficult for other developed nations to make compensating cuts. The EU has pledged to cut its emissions by 20 percent by 2020, while India has pledged a carbon intensity reduction of 20–25 percent. Canada has matched the US target of 17 perfect by 2020, and Japan has ambitiously reiterated its plan to “achieve absolute emissions cuts” of 25 percent, providing other developed nations follow suit.

In addition to the Grist article cited above, you can find a comprehensive list of 33 nations and what they have pledged to cut on the US Climate Network’s website.

Iraqi oilfield. (image: trendsupdates.com)

A conflict between Iran and Iraq that erupted in late 2009 over a seized Iraqi oil well has finally ended peacefully. Reuters reported Wednesday that the small contingent of Iranian troops has fully withdrawn from the disputed and inactive oil field inside Iraqi territory. Foreign ministers from both countries agreed to “maintain friendly relations and withdraw all military forces in the area to their original positions.”

While Tehran initially dubbed the incident a “misunderstanding,” Iranian troops did move 100 meters into Iraqi territory in mid-December and refused to budge. The well in question was drilled in 1979 and has been inactive since 1980 due to war between the two countries.

As HeatingOil.com reported earlier this month, the border dispute tapped into two of Iraq’s most sensitive concerns: “sovereignty and oil.” The peaceful resolution to the conflict will likely go a long way towards bolstering relations between the neighboring, and oil-rich, nations.

(image: weather.com)

Today’s Northeast Weather: A cold front is moving through the region today, resulting in snow showers in northern New York State and throughout New England. Most snowfall will be light, except for those regions downwind of Lakes Erie and Ontario, where several inches of lake-effect snow are expected by Friday. Coastal temperatures are currently in the low 30s, with inland and mountain regions seeing temperatures in the mid to high 20s. Buffalo has the region low of 23 degrees. Heating oil deliveries will likely see delays in most of the Northeast, with poor to dangerous driving conditions expected throughout much of New York State and all across New England.

Forecast for Tomorrow: Tomorrow will bring wind-chill values near zero, along with temperatures falling 10 to 20 degrees below average. Blustery winds and possible snow showers are expected for much of the region.

Local Temps and Heating Degree Days (January 27)

New York City: Low 31°F, High 39°F. HDD: 30, -3 from average
Long Island: Low 28°F, High 43°F. HDD: 29, -6 from average
Boston: Low 32°F, High 43°F. HDD: 27, -9 from average
Portland, Maine: Low 27°F, High 43°F. HDD: 30, -14 from average
Burlington, Vermont: Low 28°F, High 35°F. HDD: 33, -15 from average
Washington D.C./Baltimore: Low 25°F, High 44°F. HDD: 30, -2 from average
Seattle, WA: Low 35°F, High 49°F. HDD: 23, +0 from average

Sources: weather.com, weather.gov/climate

Amid the destruction may be natural resources that could aid Haiti’s economic rebuilding. (image: mirror.co.uk)

As the devastation continues in Haiti, there may be some help on the way from an unlikely source. Bloomberg reported Tuesday that the recent earthquake may have unlocked natural gas and oil reserves, resources that could aid economic recovery in the western hemisphere’s poorest nation.

The earthquake occurred along a fault line that may have cracked nearby rock formations, allowing gas or oil to seep to the surface. Stephen Pierce, a geologist who has long worked in the region, told Bloomberg as much in a phone interview on Monday:

A geologist, callous as it may seem, tracing that fault zone from Port-au-Prince to the border looking for gas and oil seeps, may find a structure that hasn’t been drilled. A discovery could significantly improve the country’s economy and stimulate further exploration.

The exploration of oil and gas in Haiti is far less developed than its immediate neighbor, the Dominican Republic, with which it shares the island of Hispaniola. There are an estimated 3 million barrels of oil offshore, as well as a possible 1 trillion cubic feet of gas trapped near the earthquake fault.

Currently Haiti, and more specifically, Port-au-Prince, is in a state of emergency, with over 150,000 dead and more than 600,000 without shelter. The main priority for the small island nation is relief and recovery for the survivors. Looking beyond the initial devastation, however, Haiti will need “massive support” for a “colossal” reconstruction, said Haitian Prime Minister Jean-Max Bellerive.

The Greater Antilles, which includes Cuba, Haiti, the Dominican Republic, and Puerto Rico, collectively boast even bigger possibilities. With likely offshore reserves nearing 142 million barrels of oil and 159 billion cubic feet of gas, this new discovery could be just the thing Haiti needs to jumpstart its economy and fund its long process of rebuilding.

An employee at the Tawke oil field, Iraq. (image: wsj.com)

In Iraq’s latest effort to expand its oil production, its Oil Ministry sealed a deal on Monday with a group of international companies led by ExxonMobil Corp. to redevelop the West Qurna-1 field in southern Iraq. According to Forbes.com, the field has reserves of about 8.5 billion barrels, and the new contract will boost production from 285,000 barrels per day to 2.325 million barrels per day.

The consortium is led by Exxon, and includes Royal Dutch Shell, which holds a 15 percent share. It marks the first time a United States company has been allowed into Iraq’s oil patch since the 2003 invasion.

Iraq opened its borders to foreign oil companies back in December, lacking the infrastructure, the experience, and the technology to alone tap into its 115 billion barrel reserves. Since then, HeatingOil.com has reported on the initial auctions, the deal with Royal Dutch Shell, and how Japan is trying to get in on the act.

Boosting production in the region should be a good thing for people around the world. An increased supply in the global marketplace will help to keep prices low for heating oil and other energy consumers alike.