Oil Can't Compete With Renewables, Says National Bank of Abu Dhabi
You wouldn't expect a bank in the oil-rich Middle East to be touting the future of renewable energy over that of oil. But that's just what the National Bank of Abu Dhabi (NBAD) is doing with its new report, Financing the Future of Energy: The opportunity for the Gulf's financial services sector.
Aimed primarily at investors and focusing on financial performance and potential, the report found that fossil fuels just weren't keeping up with solar and wind, and were less likely to do so in the future, even if oil prices dropped much lower than they are now.
"It provides insights into how that community might engage with public and private sector stakeholders to create a more energy efficient economy, turning the aspirations of the region into a reality that will attract the attention of the rest of the world and unlock significant financial opportunities," says the report's introduction.
Energy demand is expected to triple in the next 15 years in the rapidly growing Persian Gulf region—already the biggest energy consumer per capita in the world—a demand far outstripping the current supply. Yet, despite the recent plunge in oil prices, the report says that that demand will be more efficiently filled by renewables, offering more reliable and lucrative investment opportunities than oil.
"Some of the report’s findings may surprise you, as they did me," writes NBAD CEO Alex Thursby in the report's introduction. "For example, renewable energy technologies are far further advanced than many may believe: solar photovoltaic (PV) and on-shore wind have a track record of successful deployment, and costs have fallen dramatically in the past few years. In many parts of the world, indeed, they are now competitive with hydrocarbon energy sources. Already, more than half of the investment in new electricity generation worldwide is in renewables. Potentially, the gains to be made from focusing on energy efficiency are as great as the benefits of increasing generation. Together, these help us to reframe how we think about the prospects for energy in the region."
Among the report's surprisingly findings are that fossil fuels are already uncompetitive with solar in terms of price, and that would be true even if oil fell as low as $10 a barrel. And with the supply of fossil fuels finite and increasingly difficult to extract, the bank believes that almost all future investments will be in renewables.
"Prices have fallen dramatically in the past few years: solar PV falling by 80 percent in six years, and on-shore wind by 40 percent," it says. "The speed of this shift towards grid parity with fossil fuels means that, in many instances, perceptions of the role of renewables in the energy mix have not caught up with reality."
It also points out that some of the objections to renewables—for instance, the intermittency of wind and sunshine—are being overcome as the development of storage technologies picks up steam. It suggests that such technologies present excellent investment opportunities.
"There has been an historic concern that renewables are an unreliable option, because the wind blows only intermittently and the sun does not shine all the time, but that is proving to be less of an issue,” the report says. "Developments in storage technologies are progressing rapidly, and in the next few years utility-scale solutions will be deployed that further minimize concern around what was until recently seen as a major inhibitor to the uptake of renewable generation."
It also suggested that investment opportunities would exist in developing countries such as Kenya as their middle class grew and they looked to escape the volatility of oil prices and control their energy supply locally.
"When we look to the future, it is very clear that renewables will be an established part of the global energy mix," writes Thursby. "Governments around the world, including the Gulf region, are setting out their ambitions for decarbonizing their economies, and the global debate about energy has never been more intense."
YOU MIGHT ALSO LIKE
EcoWatch Daily Newsletter
- 29 Wildfires Blaze Across the West, Fueled by Drought and Wind ... ›
- Large Wildfires Scorch Forests in Drought-Stricken Southwest ... ›
Accessibility to quality health care has dropped for millions of Americans who lost their health insurance due to unemployment. mixetto / E+ / Getty Images
Accessibility to quality health care has dropped for millions of Americans who lost their health insurance due to unemployment. New research has found that 5.4 million Americans were dropped from their insurance between February and May of this year. In that three-month stretch more Americans lost their coverage than have lost coverage in any entire year, according to The New York Times.
- Trump Plans to End Federal Funding for COVID-19 Testing Sites ... ›
- 'Unfathomable Cruelty': Trump Admin Asks Supreme Court to ... ›
On hot days in New York City, residents swelter when they're outside and in their homes. The heat is not just uncomfortable. It can be fatal.
- Extreme Heat-Stressed Locations Could Increase by 80% - EcoWatch ›
- African Americans Are Disproportionately Exposed to Extreme Heat ... ›
- Extreme Heat Is Killing Americans While Government Neglect ... ›
Fracking companies are going bankrupt at a rapid pace, often with taxpayer-funded bonuses for executives, leaving harm for communities, taxpayers, and workers, the New York Time reports.
- Plunging Oil Prices Trigger Economic Downturn in Fracking Boom ... ›
- Fracking Boom Bursts in Face of Low Oil Prices - EcoWatch ›
- As Fracking Companies Face Bankruptcy, U.S. Regulators Enable ... ›
A report scheduled for release later Tuesday by Congress' non-partisan Government Accountability Office (GAO) finds that the Trump administration undervalues the costs of the climate crisis in order to push deregulation and rollbacks of environmental protections, according to The New York Times.
- Under Trump, EPA Workers Seek Bill of Rights to Allow Them to ... ›
- Trump Adds 'Tasteless Insult to Injury' by Pushing Fossil Fuel ... ›
By Kristen Fischer
It's going to be back-to-school time soon, but will children go into the classrooms?
The American Academy of Pediatrics (AAP) thinks so, but only as long as safety measures are in place.
Keeping Schools Safe<p>What will safer schools look like?</p><p>In a <a href="https://jamanetwork.com/journals/jama/fullarticle/2766822" target="_blank">JAMA article</a> published last month, <a href="https://www.jhsph.edu/faculty/directory/profile/1781/joshua-m-sharfstein" target="_blank">Dr. Joshua Sharfstein</a>, a pediatrician and professor at the Johns Hopkins Bloomberg School of Public Health, outlined suggestions — many of which are similar to AAP's.</p><p>Remote learning protocols must stay in place, especially as some schools stagger home and in-building learning. If another shutdown needs to occur, children will rely on distance learning completely, so it must be easy to switch to, he said.</p><p>He suggested giving parents a daily checklist to document their child's health. Kids should be screened quickly on arrival and be given hygiene supplies. Maintenance staff should use appropriate PPE and have regular cleaning schedules. A notification system should be in place if a case is identified, Sharfstein recommended.</p><p><a href="https://www.albany.edu/rockefeller/faculty/erika-martin" target="_blank">Erika Martin</a>, PhD, an associate professor of public administration and policy at University at Albany, said nutrition assistance and health services should be included. She called for tutoring programs with virtual options as well as technology access.</p>
Supporting Staff<p>Teachers and staff will be affected by safeguarding measures, noted <a href="https://directory.sph.umn.edu/bio/sph-a-z/rachel-widome" target="_blank">Rachel Widome</a>, PhD, an associate professor of epidemiology and community health at University of Minnesota.</p><p>"In order for all of the in-school precautions to work well, we'll be asking a lot of teachers and staff," Widome told Healthline. In addition to their usual workload, they'll now be asked to monitor mask-wearing, ensure children are keeping distance, and be aware of any symptoms.</p><p>Along with Sharfstein, Widome called for an increase in financial support. More employees will likely be required so teachers and staff members can keep up with the added demands.</p>
Should Kids Go Back?<p>While these guidelines may help get some schools to reopen, many people don't think children should go back to school over fears they could contract the disease and spread it to other vulnerable family members like grandparents, infant siblings, or their parents.</p><p>In a <a href="https://pediatrics.aappublications.org/content/early/2020/07/08/peds.2020-004879" target="_blank">Pediatrics</a> commentary, <a href="https://www.md.com/doctor/william-raszka-md" target="_blank">Dr. William V. Raszka, Jr.</a>, an infectious disease specialist at The University of Vermont Medical Center, argued that schools should open because school-aged children are far less important drivers of COVID-19 than adults.</p><p>But he says the risk and benefit is not equal among all students ages 5 to 18.</p><p>"Elementary schools are arguably higher priority for face-to-face schooling, since younger children are at lower risk for infection and transmission, and since parental supervision of younger children's distance learning may be particularly challenging," added Sorensen, who penned a <a href="https://jamanetwork.com/channels/health-forum/fullarticle/2767411" target="_blank">June article in JAMA</a> with reopening tips. "That means middle and high schools are more likely to emphasize distance learning."</p><p>Specific student populations, such as special education students and students with disabilities, would also benefit greatly from more time spent in face-to-face environments, Sorensen said.</p>
What Parents Can Do<p>Parents should ask for and receive frequent updates from schools about plans for the fall. They should also be informed about plans if and when COVID infections are identified, Sharfstein said.</p><p>"I'd like to see parents investing now, during the summer, in doing things that can slow and stop the spread of the virus in their communities," Widome said.</p><p>"Now is a good time for kids to practice wearing masks and get used to them as they may be wearing them for longer stretches if school starts up in person," Widome suggested.</p><p>She recommends parents try different mask designs and materials to see what children are more comfortable wearing.</p><p>"If you are using cloth face coverings, it's good to have extras on hand," Widome added.</p><p>Parents should model healthy behavior at home and while out in public — another thing that could affect how well children adapt to reopening practices, Sorensen said.</p><p>"Children may want to know more about face coverings," added <a href="https://www.linkedin.com/in/leescott/" target="_blank">Lee Scott</a>, chairwoman of the Educational Advisory Board at <a href="https://www.goddardschool.com/" target="_blank">The Goddard School</a>. "Dramatic play, such as creating or wearing a face covering, may help some children adjust to this concept." Schools can also show children photos of what faculty members look like in their masks so the students are familiar with that appearance.</p><p>Johns Hopkins University recently released its eSchool+ Initiative, a slew of resources surrounding education during the pandemic. These include a <a href="https://equityschoolplus.jhu.edu/reopening-checklist/" target="_blank">checklist for administrators</a>, report on <a href="https://equityschoolplus.jhu.edu/ethics-of-reopening/" target="_blank">ethical considerations</a>, and a tracker of <a href="https://equityschoolplus.jhu.edu/reopening-policy-tracker/" target="_blank">state and local reopening plans</a>.</p>
- Trump Admin Rejects CDC Reopening Guidelines - EcoWatch ›
- How Do You Stay Safe Now That States Are Reopening? - EcoWatch ›
- Florida Breaks U.S. Daily Record With Over 15,000 New ... ›
By Eoin Higgins
Over 300 groups on Monday urged Senate leadership to reject a bill currently under consideration that would incentivize communities to sell off their public water supplies to private companies for pennies on the dollar.
<div id="fea63" class="rm-shortcode" data-rm-shortcode-id="9a6f211c2bc5aedd34837944cb8eeedf"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1281000111481294849" data-partner="rebelmouse"><div style="margin:1em 0">Water in Illinois is overwhelmingly public. Why is Tammy Duckworth sponsoring a bill that aims to change that? https://t.co/1V36Kkd99s</div> — The American Prospect (@The American Prospect)<a href="https://twitter.com/TheProspect/statuses/1281000111481294849">1594249201.0</a></blockquote></div>
- DNC Ignores Progressive Climate Activists - EcoWatch ›
- Who's a Climate Champion and Who's a Climate Disaster? - EcoWatch ›