Peak Oil is You

Donate Bitcoins ;-) or Paypal :-)

Page added on October 9, 2021

Bookmark and Share

Energy Crisis Threatens to Hit USA Grids


The energy crisis that’s led to electricity shortages and blackouts in Europe and Asia may be heading for the U.S.

Electric companies are alerting customers about winter price hikes and an energy hedge fund warned of potential gas shortages. Ernie Thrasher, chief executive officer of Xcoal Energy & Resources LLC, said utility executives have told him they’re anxious that fuel shortages this winter could trigger blackouts.

“These utilities are worried the assets that they have can’t get enough fuel,” Thrasher said in an interview. “There are people of high authority at large utilities that are deeply concerned.” He declined to name the companies, saying they come from almost every region in the U.S.

The global economic recovery from the pandemic has driven up demand for power, triggering shortages and higher prices for natural gas, especially in Asia. That’s prompted utilities to use more coal, which as a result is also now in short supply around the world. U.S. utilities are switching away from gas and expected to burn about 23% more coal this year.

The U.S. has enough gas to get through a normal winter, said James Shrewsbury, co-chief investment officer of e360 Power LLC, a gas and power hedge fund in Austin, Texas. But sustained low temperatures could create gas shortages. “If we get a prolonged cold this winter, there will be problems.”

Increased demand is bumping up against mine output that’s been falling for years. The growing urgency to fight climate change has made suppliers reluctant to increase production capacity for the dirtiest fossil fuel. Now, U.S. utilities’ stockpiles are shrinking and it’s not clear whether U.S. miners will be able to meet their increasing calls for more fuel.

Power producers including Duke Energy Corp. are already warning customers that bills will spike this winter. Duke’s Piedmont Natural Gas unit said Tuesday that high gas prices and low production will raise customer bills by about $11 a month in North and South Carolina. And Xcel Energy Inc. told Colorado regulators last month that its natural-gas customers will also see price hikes of about $11 a month due to tight supplies, an increase in gas exports and damage from Hurricane Ida.

A representative for Edison Electric Institute, the trade group for U.S. investor-owned electric utilities, didn’t respond to a request for comment.

The New York State Public Service Commission is monitoring utilities in the state to ensure they have enough fuel this winter but said it expects they’ll be in position to meet demand.

“The utilities have hedged approximately 70%” of their residential electricity needs, which should protect against price swings, the agency said in a statement.


8 Comments on "Energy Crisis Threatens to Hit USA Grids"

  1. Cloggie on Mon, 11th Oct 2021 7:29 am 

    Fraunhofer Institute latest:

    Energy payback time average solar panel is now at 1 year. Further improvement towards 8 months is in the pipeline. That corresponds to an EROI that is more than high enough.

  2. dissident on Mon, 11th Oct 2021 9:57 am 

    What clowns. There is absolutely no reason for the US to experience any power shortages. This is purely the result of gambling by the utilities.

  3. Cloggie on Wed, 13th Oct 2021 4:10 am 

    Excellent German idea to get autonomous driving finally taking off:

    “Autonomous Driving Lite in Hamburg 2022”

    Fully autonomous driving in the city (not highway) is still a “bridge too far”. But there is an alternative: remote control, effectively bringing a driverless car accurately to any destination (think 9/11!).

    Angry that I didn’t think of this myself.

  4. Cloggie on Fri, 15th Oct 2021 5:03 am 

    How stranded fossil fuel power plants the world over can be retrofitted to become huge storage facilities for renewable energy:

    “Breathing New Storage Life in Stranded Fossil Power Plants”

  5. Biden's hairplug on Fri, 15th Oct 2021 5:18 am 

    Surreal cycling trip through downtown LA:

    Pedestrians or cyclists don’t exist. If you want to survive cycling in LA, better take the stoop.

    Tents everywhere, like from [17:50]


  6. Hello on Fri, 15th Oct 2021 9:18 am 

    >>> Surreal cycling trip through downtown LA:

    Ahhh. LA. Wenn ich in einer US stadt leben muesste, dann LA. Cool, cool, cool!

    Clog, bald ist CES in Las Vegas. Gehst du? Ich auf jeden fall. Cheers.

  7. FamousDrScanlon on Fri, 15th Oct 2021 7:26 pm 

    Only foreigners would want to watch that LA shithole & the homeless suffer – it’s a nation wide American problem that’s decades in the making. “All American” “Made in the USA”

    Politics has way less to do with the numbers of homeless in LA than the weather does. Same in Canada – they flock to the warmer cities. Being a city with a major port usually means more drugs too.

    American tribal monkeys are sparing no expense/energy to point-N-wag the finger at each other…..and they are both right.

    “Donald Trump is a kamikaze candidate. He has never deigned to do the basic work of all politicians — to reach out to new people, to “grow the base.” Instead he has formulated positions and statements so extreme that while they make his most ardent supporters salivate and scream — instant gratification for him at his rallies — they tend to repel ordinary people, even ordinary Republicans. He never achieved an approval rating of 50%, and left office with 34% approval, ten points later than when he took office.

    In other ways large and small the Republican Party seems bent on self immolation. It has encouraged an anti-mask, anti-vaccine response to the COVID pandemic with the result that most of the people now dying from the disease are Republicans. It has flirted openly with white supremacists, militias, racists and rioters, to the disgust of a majority of voters. It has adopted as its premiere operating principle that it will approve of nothing — no matter how desirable or beneficial to the American people — for which any Democrat anywhere might get some credit.

    And it has taken to lying, so gratuitously and brazenly that everyone knows they are lying, yet they persist. In his book Landslide, Michael Wolff reports that in the waning days of Trump’s presidency there was not one single person among his most loyal supporters who believed the election had been “stolen” by the Democrats. Yet even today his handlers and those who seek to feed off of him continue to repeat the lie.

    There’s an old saying in politics to the effect that when your opponent is destroying himself, don’t get in the way. In the realm of politics, not government, probably the best thing the Democratic Party can do right now is pop some popcorn and enjoy the show.

    Even before Trump the American people were exhibiting a significant amount of daily recklessness like “challenges” that involve eating toxic substances (pods), chicken sandwich sale rumbles, firearms stunts, “Black Fridays” & playing Russian roulette with street drugs that or may not be laced with enough Fentanyl and/or Carfentanil to kill 12 hefty lumberjacks.

    If ‘your guy’ can’t win, wait for the next Jan 6th & go on a rampage like a many millions strong herd of Buffalo rumbling across the great plains. Destroy all that hate or don’t understand.

  8. Biden’s hairplug on Sat, 16th Oct 2021 1:22 am 

    “There’s an old saying in politics to the effect that when your opponent is destroying himself, don’t get in the way. In the realm of politics, not government, probably the best thing the Democratic Party can do right now is pop some popcorn and enjoy the show.”“

    That’s exactly the European attitude vs America. Sooner or later your “white tribal monkeys” are going to revolt, most likely on the very moment that the Chinese have made it abundantly clear that the days of US global hegemony are over for good. Then the time for plan B will have arrived.

Leave a Reply

Your email address will not be published. Required fields are marked *