Oil

Texas Tribune

Good morning, and happy Presidents Day. KUT News has a look at what’s open and closed today: all City of Austin’s administrative offices and other city are closed today, but trash, recycling and yard trimmings pick up will proceed as normal.  

The National Weather Service says Austin’s in for a warm, muggy day with a chance of thunderstorms this afternoon. High winds will make for elevated fire conditions, so be careful out there. 

Lead Story: The troubles roiling the Cancer Prevention and Research Institute of Texas (CPRIT) are spreading to other research groups, The Texas Tribune reports.

Tens of thousands of protesters turned out on the National Mall Sunday to encourage President Obama to make good on his commitment to act on climate change.

In his Inaugural address from outside the U.S. Capitol, the president said: "We will respond to the threat of climate change knowing that the failure to do so would betray our children and future generations."

Just a few weeks later, next to the Washington Monument, Paul Birkeland was one of a couple dozen people holding a long white tube above their heads.

Erik Reyna/KUT News

Gas prices are up. Across Texas, regular is up 14 cents this week, according to AAA's Fuel Gauge Price Report. In Austin, average prices were up by almost 15 cents to $3.36.

Oil analyst Tom Kloza says prices often rise and fall with the seasons, but these are the highest gas prices Americans have seen for this time of year.

Update at 1:26 p.m. ET. No Confirmed Deaths:

The U.S. Coast Guard tells WWLTV that 11 people have been sent to hospital but no deaths have been confirmed in a oil rig fire off the coast of Louisiana.

WWLTV, KHOU and Reuters were reporting two deaths earlier.

Our Original Post Continues:

A fire on an oil rig off the coast of Louisiana has killed two people, Louisiana's WWLTV is reporting.

Update at 11:30 a.m. ET: Oil giant BP has agreed to plead guilty to criminal misconduct related to the 2010 Gulf Oil spill and will pay a record $4 billion in criminal penalties, the company just confirmed. And it will pay $525 million in civil penalties in a resolution with the Securities and Exchanges Commission. BP will make the payments over six years.

Daniel Reese for KUT News

The Electric Reliability Council of Texas (ERCOT) says that though the Texas electric grid saw new monthly peaks in June and July, the overall electric demand fell below last summer’s record-setting numbers. 

At the Board of Directors September meeting yesterday, directors were briefed on the summer’s power grid demand and peaks over the summer and made projections for fall and winter. 

This summer, ERCOT didn’t have to issue any energy emergence alerts (EEA)—which can result in rotating outages in order to prevent a power grid overload and statewide blackout. Last summer, ERCOT issued seven EEAs. Though this summer’s weather was hotter than the state’s 15-year average, it didn’t reach the sweltering levels achieved in 2011, so air conditioner use was somewhat lower.

Gas Prices Up Again

Aug 16, 2012

Gas prices around Austin are up five cents from last week and more than 20 cents from last month.

AAA Texas says Austinites are paying an average of $3.54 for a gallon of regular. That’s one cent higher than the state average.

Political tension in Iran and increased demand from the summer travel season are blamed for the increase.

Doug Shupe is a spokesman for AAA Texas. He says analysts believe prices will probably continue to go up – but there could be some relief soon.

Image courtesy fossil.energy.gov

A newly-released report on fracking – the practice of pumping hydraulic fracturing fluid into wells to break up and extract oil shale and natural gas deposits – has caused something of a stir in Texas.

Image courtesy transcanada.com

Approval for the Keystone XL pipeline – a controversial 1,700 mile pipeline designed to transport oil sands from Canada all the way to Texas ports along the Gulf of Mexico – is expected to be rejected today by the Obama Administration, according to a report from The Washington Post.

StateImpact Texas notes the announcement comes just a few weeks before the Obama administration would have been forced to make a decision on the proposal.

Photo by Nathan Bernier for KUT News.

Opponents of a plan to build a pipeline from the Canadian oil sands to refineries on the Texas Gulf Coast say newly released emails show an uncomfortably cozy relationship between a lobbyist and employees at the U.S. State Department.

Photo by CaliforniaDFG at http://www.flickr.com/photos/californiadfg/4899552970/sizes/o/in/photostream/

The Associated Press is reporting the investigation into an oil sheen that was spotted off the Gulf of Mexico last week. Various oil companies, including BP, are trying to figure out where the sheen came from.

An oil sheen (not the same as a spill) happens when a thin layer of oil settles on top of the water shimmering in different colors and can come from leaks or spills.

Image by Erik Reyna for KUT News

The latest fuel price report from AAA says Austin gas prices have risen to an average of $2.91 for a gallon of regular unleaded. That's up about 10 cents from last month and almost 30 cents higher than it was this week last year. And most signs point to gas prices climbing even higher.

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Photo by Callie Hernandez for KUT News.

Nationally, gas prices are hovering around $3 a gallon these days. It’s far off the record price of more than $4.10 in the summer of 2008. Remember those days? Well, what about $5 dollar, even $10 dollar a gallon for gas?

To understand the rest of this story, you need to get one concept: peak oil.

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