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When hydropower isn’t green: hydroelectric emissions

thumbnailimage.imgHydropower is often considered a clean energy source, free of climate-warming carbon dioxide emissions. But although dams have been demonized for disrupting fish migrations and flooding valleys inhabited by families for generations, this so-called renewable form of energy has largely escaped scrutiny for its climate impacts. After all, how could the atmosphere be harmed by letting a river flow through a few energy-generating turbines encased within a 50-foot wall of concrete and steel?

Hydropower is the world’s leading form of renewable energy, accounting for more than 16 percent of global electricity generation. But dam enthusiasts who tout hydro’s climate credentials may not like the news about its emissions numbers.

Studies conducted over the past decade have shown that greenhouse gases, such as carbon dioxide and methane, are produced by hydroelectric systems in potentially huge amounts.

In some cases, emissions from hydropower can even exceed those that would have been produced from burning conventional fossil fuels instead. For example, a 2014 study finds that the Curuá-Una Reservoir in Brazil emitted 3.6 times more greenhouse gases than would have been emitted had the electricity come from oil.

How hydroelectric dams produce greenhouse gases

When a dam is built for energy generation, the land upstream of the impoundment is flooded. The more than 45,000 large dams built around the world cover a combined area the size of Montana (Barros et al., 2011). For many, within their depths lies former forest land.

As the submerged trees, grasses, shrubs and soil decompose, microbes convert the carbon stored in the vegetation into gas that can bubble up to the surface and escape to the atmosphere. Carbon trapped within the soil percolates out in the form of carbon dioxide.

Age matters. Studies show that younger reservoirs may be bigger emitters than older ones, because most carbon is released from drowned vegetation within the first several years of flooding.

Location matters, too. Emissions seem to be highest from dams built in the tropics, presumably because higher temperatures give decomposer microbes the metabolic boost to do their work.

Methane matters

Methane is of particular concern. The gas is made anywhere methanogenic (methane-producing) bacteria can thrive without oxygen — so, in the guts of pigs and people, peat bogs and permafrost. Unfortunately, methane is also 25 times more potent a planet warmer than carbon dioxide over 100 years. And warm, tropical places can produce more of it.

Methane has plenty of opportunities to escape during the hydropower process: It bubbles up from the oxygen-free muck that accumulates at the bottom of reservoirs. It is churned out in the spray coming off spinning turbines. For miles, it wafts off the newly agitated surface of the river downstream from a dam.

So much methane is produced that studies suggest more than 20 percent of what humans are responsible for may come from dams, which may be releasing up to 104 teragrams of the gas annually. (This may be more than all the methane produced per year from burning fossil fuels, according to NASA.)

Lack of information or regulatory failure?

Of course, impacts from big hydro projects go beyond greenhouse gas emissions to include altered land use, the collapse of migratory fish populations and the displacement of people. Coastal erosion can occur downstream from reservoirs when sediment becomes trapped behind dam impoundments, preventing the silty particles from reaching the sea where they build and stabilize coastlines.

Despite large hydro’s detrimental impacts on life, land and atmosphere, many nations fail to include emissions associated with dams in their total greenhouse gas reporting. This gap in information makes hydro emissions difficult to track — and to regulate.

Most hydropower is concentrated in Asia, but more than 150 countries employ the technology for at least some of their energy. The Worldwatch Institute reports that “in 2008, four countries — Albania, Bhutan, Lesotho and Paraguay — generated all their electricity from hydropower,” and “15 countries generated at least 90 percent of their electricity from hydro.”

Moreover, when nations have made steps to report hydro emissions, the international hydroelectricity industry has attempted to muddy the waters by downplaying the amount of carbon degassing from their projects.

Take down the dams?

Before you think tearing down all dams is the answer, consider this: Taking down a large dam may actually release more greenhouse gases from the newly exposed, carbon-rich soil than were produced throughout the entire life of the dam.

For example, decommissioning Arizona’s Glen Canyon Dam in the United States, which provides power from Lake Powell, would theoretically produce nine times more methane following takedown than all the methane produced during Glen Canyon’s 100-year operation.

What is the solution?

What many believe would be a good first step is for the Intergovernmental Panel on Climate Change, the world’s foremost scientific authority on the subject, to ask all participating nations to report greenhouse gas emissions from hydroelectric reservoirs. Can that happen with so many questions left unanswered?

More research on the climate impacts of hydropower is needed, in more places and at all stages of big dams’ lifecycles. Until then, policymakers may be overlooking a potentially significant contributor to climate change, perhaps difficult to calculate but ever present, hidden at the bottom of a placid reservoir.

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Oil, gas exploration dominates Albania’s foreign investments

Bankers_0215TIRANA: Oil and gas exploration has dominated Albania’s foreign investments, the Bank of Albania said on Saturday.

In early 2014, the extracting industry accounted for about 58 percent of Albania’s total foreign investments with an amount of 504 million euros ($564.88 million). However, it dropped 14 percent compared to 2013, yet still remained dominant in the foreign investments market. Albania’s biggest foreign investor Bankers Petroleum Canadian Company caused the increase of its foreign investments in oil and gas exploration this year. Telecommunication ranks the second in Albania’s foreign investments, which reached 122 million euros ($136.74 million) in 2014, accounting for about 13 percent of Albania’s total foreign investments, according to the Bank of Albania. Albania’s foreign investments also involve energy and real estate, with 8.5 percent of total foreign investments respectively. The Albanian government is providing investors with incentives and facilities, trying to encourage energy investments, which it believes has a high potential.  Canada is currently reported as the biggest investor in Albania with an investment of about 400 million euros ($448.32 million), followed by Greece with 118 million euros ($132.25 million) in the communication sector. Other foreign investors include the Netherlands, Switzerland, Turkey and Italy. 

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Turkey to compensate for lack of Russian gas via TANAP

gas-pipelines_140215If Russia limits supplies of natural gas, Turkey is going to compensate for this by the gas delivered through the Trans-Anatolian (TANAP) pipeline, Minister of Energy and Natural Resources of Turkey Ali Rıza Alaboyun said Oct.5.

“I don’t think that Russia will limit the supply of natural gas in the winter months,” said the minister.

He went on to add that in 2019, Russia will limit supplies of natural gas through Ukrainian territory. “Every year we get 14 billion cubic meters of gas through this territory,” the minister said. “Therefore, in 2019 we may face a shortage of gas. Turkey also plans to compensate for the lack of natural gas through TANAP in 2019.”

TANAP project envisages transportation of gas of Azerbaijan’s Shah Deniz field from Georgian-Turkish border to the western borders of Turkey. The project’s total cost is estimated at $10 billion.

The initial capacity of TANAP pipeline is expected to reach 16 billion cubic meters of gas per year. Around six billion cubic meters of this gas will be delivered to Turkey and the remaining volume will be supplied to Europe.

Turkey will get gas in 2018 and after completing the construction of Trans-Adriatic Pipeline (TAP), it will be delivered to Europe in early 2020.

BP with 12 percent became one of the shareholders of the pipeline in accordance with the agreement signed with the TANAP consortium in April.

Currently, the shareholders of TANAP are: the State Oil Company of Azerbaijan (SOCAR) – 58 percent, Botas – 30 percent and BP – 12 percent.

TAP envisages transportation of gas from the Azerbaijani gas condensate Shah Deniz II field to the EU countries.

The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

The pipeline construction is to be launched in 2016.

TAP’s initial capacity will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.

The first gas as part of the Shah Deniz-2 project will be transported to Europe via TAP in early 2020.

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

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TAP project progressing according to schedule

gas_pipeline_construction_130215The Trans Adriatic Pipeline (TAP) project, designed to transport gas from the giant Shah Deniz II field in Azerbaijan to Europe, is progressing well and is on schedule to transport gas in early 2020, Lisa Givert, TAP Head of Communications told Trend.

“TAP will begin construction next year as we are aligned to Shah Deniz’s schedule,” Givert said adding that the overall construction phase will take approximately 3.5 years.

She also mentioned that some large contracts are expected to be awarded within TAP by the end of this year.

“While the contracts for access roads and bridges, turbo compressors and ball valves have already been concluded, TAP aims to award several large contracts by the end of 2015, including onshore and offshore pipeline construction as well as line pipes,” Givert said.

Recently TAP launched pre-qualification contracts for the supply and delivery of the Supervisory Control and Data Acquisition (SCADA) system and fibre optic cable, which are the final large package contracts to be awarded by TAP for project construction as company provided items.

TAP’s initial capacity will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.

The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

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TransAtlantic Petroleum Provides Operational Update

TransAtlantic Petroleum_f960x260HAMILTON, Bermuda, Oct 01, 2015 (GLOBE NEWSWIRE via COMTEX) —

TransAtlantic Petroleum Ltd. (nyse mkt:TAT) (TNP) (the “Company” or “TransAtlantic”) today provided an operational update on its current production and drilling program.

Production Update

TransAtlantic’s current average 7-day net production rate is approximately 6,220 BOEPD, comprised of approximately 5,360 BOPD and approximately 5.2 MMCFPD of natural gas. Daily net oil equivalent production increased approximately 10% (net oil production increased 20%) from the end of the second quarter of 2015, primarily due to re-work operations in Southeast Turkey, which commenced in September 2015. Natural gas production was lower in the last week of September 2015, compared with the third quarter average of 6.4 MMCFPD, mainly due to a national holiday in Turkey.

In the third quarter of 2015, TransAtlantic had average net production of approximately 5,340 BOEPD, a 3% increase over net production in the third quarter of 2014 and a 9% decrease from net production in the second quarter of 2015. Net production for the third quarter of 2015 was comprised of approximately 4,270 BOPD and 6.4 MMCFPD of natural gas.

Drilling and Completion Update

In September 2015, the Company began a planned re-work program to install artificial lift, open behind-pipe-pay and increase artificial lift capacity on several wells in Southeast Turkey. In the Bahar field, commercial production was established from the Hazro F3 sand, which was previously neither productive nor reserved. TransAtlantic expects to continuously re-work wells to increase production through year end.

In the third quarter of 2015, TransAtlantic drilled the Bahar-7 well (100% working interest). The well was drilled to a total depth of 10,850 feet with two strings of cemented casing, and is the first well drilled to the Bedinan formation with this efficient casing design. Initial log analysis indicates prospective pay in the Bedinan, Dadas and Hazro zones, as projected. The well was structurally lower in the Bedinan than offsetting wells in the area and from what was projected by the Company. If successfully completed, the well may significantly expand the oil productive area in the Bedinan to the west of the currently mapped closure. Following the completion of the drilling of the Bahar-7 well, the rig was released. TransAtlantic expects to spud the Guney Resideri well (50% working interest), a gas exploration well in the Thrace Basin, in November 2015.

In the third quarter of 2015, the Company drilled and began completion operations, which are ongoing, on the Bahar-9 well (100% working interest). The South Goksu-1 well (50% working interest), a 5,900 foot exploratory well drilled two miles south of the Goksu field, is currently undergoing completion, but has tested non-commercial amounts of hydrocarbons to date. The Company expects all drilled wells to be completed during the fourth quarter of 2015.

Share Buyback

As of September 30, 2015, the Company has repurchased 323,079 shares for an aggregate amount of $943,075 (approximately 0.8% of the Company’s outstanding shares). During the third quarter of 2015, TransAtlantic initiated the repurchasing of shares through its share repurchase program, which was approved by the Company’s board of directors in March 2015. Under the share repurchase program, Transatlantic may repurchase shares in open-market purchases in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The repurchase program may be suspended or discontinued at any time.

Hedge Update

On September 14, 2015, TransAtlantic monetized a portion of its hedges, resulting in net proceeds of $12.8 million. The proceeds were used to pay down debt under the Company’s senior secured credit facility (the “Senior Credit Facility”) with BNP Paribas (Suisse) SA and the International Finance Corporation. Pursuant to requirements under the Senior Credit Facility, the Company acquired Brent puts with a $50 strike price in replacement of a portion of the unwound volumes. On September 30, 2015, the overall hedge portfolio was valued at approximately $32 million.

Third Quarter 2015 Earnings Call

TransAtlantic will provide additional operational and financial results on its third quarter 2015 earnings call, which it expects to host in early November 2015.

About TransAtlantic Petroleum Ltd.

TransAtlantic Petroleum Ltd. is an international oil and natural gas company engaged in the acquisition, exploration, development and production of oil and natural gas. The Company holds interests in developed and undeveloped properties in Turkey, Albania and Bulgaria.

(NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)

Forward-Looking Statements

This news release contains statements concerning the drilling, completion and cost of wells, the production and sale of oil and natural gas, secondary recovery operations, the hosting of an earnings conference call, as well as other expectations, plans, goals, objectives, assumptions or information about future events, conditions, results of operations or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, the ability of the Company to continue to develop and exploit attractive foreign initiatives.

Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include, but are not limited to, market prices for natural gas, natural gas liquids and oil products; estimates of reserves and economic assumptions; the ability to produce and transport natural gas, natural gas liquids and oil; the results of exploration and development drilling and related activities; economic conditions in the countries and provinces in which the Company carries on business, especially economic slowdowns; actions by governmental authorities, receipt of required approvals, increases in taxes, legislative and regulatory initiatives relating to fracture stimulation activities, changes in environmental and other regulations, and renegotiations of contracts; political uncertainty, including actions by insurgent groups or other conflict; outcomes of litigation; the negotiation and closing of material contracts; shortages of drilling rigs, equipment or oilfield services.

The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Note on BOE

Barrels of oil equivalent, or BOE, are derived by the Company by converting natural gas to oil in the ratio of six thousand cubic feet (“MCF”) of natural gas to one barrel of oil. A BOE conversion ratio of 6 MCF to 1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. BOE may be misleading, particularly if used in isolation.

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SOCAR’s buying stake in DESFA runs smoothly.

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The process of acquisition of a 66 percent stake in the Greek DESFA gas operator by SOCAR (State Oil Company of Azerbaijan) runs smoothly, Greek Productive Reconstruction, Energy and Environment Minister Panos Skourletis said, the Greek media reported Oct.1.

Skourletis made the remarks at a meeting with Azerbaijani Ambassador to Greece Rahman Mustafayev, Adviser to the SOCAR President Murad Heydarov and head of SOCAR Energy Greece Anar Mammadov.

Skourletis went on to add that one should expect the concrete results on the sale of DESFA’s stake to SOCAR in the coming months.

“This process is developing in a way which would meet the requirements of the European Commission’s Directorate-General, and it runs smoothly,” said Skourletis.

In addition, the sides discussed the implementation of the TAP pipeline project during the meeting.


The Greek minister told at the meeting about the overall progress achieved during discussions with the TAP representatives on resolving the issue regarding the gas pipeline route on the Greek territory.

Earlier, SOCAR President Rovnag Abdullayev said that SOCAR is ready for talks with European companies on selling the 16-percent share in Greek DESFA gas transmission system operator.

SOCAR won a tender in December 2013 on the sale of 66-percent share in DESFA for 400 million euros.

The European Commission started an inquiry into the compliance of the deal on acquisition of a stake in DESFA with the EU’s regulations In November 2014. Currently, the deal is being considered by European Commission’s Directorate-General for Competition, and the procedure will last until late 2015.

SOCAR is the sole producer of oil products in Azerbaijan. It has two oil refineries and filling stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland. The company is the co-owner of the largest Turkish petrochemical complex, Petkim, and other assets in Turkey.

The company is currently carrying out work as part of ensuring the Azerbaijani gas supplies to Europe. Work is underway in this regard within the second stage of development of the Shah Deniz offshore gas and condensate field, and for expansion of the South Caucasus Pipeline.

Moreover, projects are being developed for construction of the Trans Anatolian Natural Gas Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP).

TAP will transport natural gas from the giant ‘Shah Deniz 2’ field in Azerbaijan to Europe.

The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.

The pipeline’s construction is expected to start in 2016.

TAP’s initial capacity will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).