The U.S. fracked its way to the top, Asia's smog woes mounted, Arctic exploration heated up. See what else defined the year in energy.
1. U.S. Fracks Its Way to Top in Oil, Gas
Thanks to the fracking revolution, in 2013 the United States surged past both Saudi Arabia and Russia to regain its spot as the world's top energy producer. Above, water pools near an oil pump outside of Williston, North Dakota. (See related story, "U.S. Edges Saudi Arabia, Russia in Oil and Gas.")
Analysts believe U.S. production topped 12.1 million barrels per day, surpassing the Saudis by some 300,000 barrels per day. In western North Dakota's Bakken shale, and in Texas' Eagle Ford and Permian basins, drillers applying the combination of hydraulic fracturing and horizontal drilling have been able to reverse what once was thought to be an inexorable decline in U.S. oil production. (See related, "The New Oil Landscape," and "North Dakota's Salty Fracked Wells Drink More Water to Keep Oil Flowing.")
Just in time for the 40th anniversary of the Arab oil embargo, which awakened the global drive for energy security, the United States finally might approach its goal of independence from foreign oil. (Take related Quiz: What You Don't Know About Oil Crisis History.) U.S. reliance on oil imports, which peaked at 60 percent of supply in 2005, is expected to fall to 25 percent by 2016. (See related, "IEA World Outlook: Six Key Trends Shaping the Energy Future.")
- Marianne Lavelle
2. Environmental Impact of Fracking Feeds Public Backlash
The environmental impact of modern oil and gas drilling techniques is sparking battles across the United States as scientists document effects on health, air and water quality, and increased seismicity. Above, a homeowner in Granville Summit, Pennsylvania, holds up a glass of tap water containing high levels of methane.
In November, researchers found that U.S. methane emissions from oil and gas production and agriculture might exceed previous government estimates by 50 percent. (See related blog post: "Natural Gas Reality Check.") Studies also provided additional evidence that injecting wastewater into the ground for storage, and injecting carbon dioxide into wells to increase production, can trigger earthquakes. (See related stories: "Scientists Say Oil Industry Likely Caused Largest Oklahoma Earthquake" and "Earthquake Study Points to Possible Carbon Injection Risks.")
The effects of modern oil and gas extraction methods are felt far from oil and gas fields, from the heavy truck traffic in surrounding areas to the fracking sand boom in Wisconsin, where some locals worry that mining will scar the bluffs and ridges and harm air quality. (See related story: "Sand Rush: Fracking Boom Spurs Rush on Wisconsin Silica.") Environmental concerns have led more than 100 municipalities to impose fracking bans or temporary moratoriums, yet legal challenges continue over whether local governments have the authority to regulate drilling in their communities. (See related stories: "Battles Escalate Over Community Efforts to Ban Fracking" and "Health Questions Key to New York Fracking Decision, But Answers Scarce.")
- Joe Eaton
3. Asia's Boom Chokes Cities
A traffic policeman signals to drivers in Harbin, China, where smog grew so thick in October that roads had to be closed. To meet the energy demands of its booming economy, China is burning fossil fuels at a prodigious rate. While the country has an aggressive plan for increasing the use of renewable power sources such as wind and solar, it is still the world's biggest producer and consumer of coal, and its appetite for oil is growing. (See related story: "IEA World Outlook: Six Key Trends Shaping the Energy Future.")
These trends not only have global implications for climate change because of the emitted greenhouse gases, they also have serious regional health and environmental impacts. China consistently has some of the worst air pollution in the world. (See related story: "Three Ways U.S.-China Conflict Is Helping on Climate Change.") Northern cities such as Beijing and Harbin are routinely choked with smog that is sometimes so bad that it shuts down roads, schools, and airports. (See related story: "Harbin Smog Crisis Highlights China's Coal Problem.")
Residents wear air filtration masks to protect themselves, but poor air quality continues to be a deadly problem: A recent study showed that air pollution has shortened life expectancy in northern China by 5.5 years. (See related story: "Coal-Burning Shortens Lives in China, New Study Shows.") Experts say the health benefits associated with curbing climate change would more than pay for the cost of reducing greenhouse gas emissions, and that China in particular would benefit. (See related story: "Climate Change Action Could Save 500,000 Lives Annually, Study Says.")
- Ker Than
You can learn more about emissions worldwide with this interactive map: Four Ways to Look at Global Carbon Footprints.)
4. Climate Change: New Milestones, Stronger Words
At the summit of Hawaii's Mauna Loa, above, scientists confirmed an unsettling climate milestone in May: Levels of carbon dioxide in Earth's atmosphere reached levels not seen in perhaps 3 million years, when seas were at least 30 feet higher. (See related, "Climate Milestone: Earth's CO2 Level Passes 400 ppm.")
The greenhouse gas reading was just one of many indicators this year that the world's climate is changing markedly. Warning that time was running out on climate change, the International Energy Agency (IEA) urged four immediate policy actions. (See related story: "What's Behind the New Warning on Global Carbon Emissions?") Corinne Le Quere, director of the Tyndall Centre for Climate Change Research at East Anglia University, said that a rise in global temperature even within the IEA's target limit of 2°C would lead to "more heat waves, extreme rainfall events and rising sea levels." In the Arctic, one effect of warming was clear: A shrinking ice cap expanded the availability of northern passages, making 2013 a notable year for shipping in the region. (See related, "Arctic Shipping Soars, Led by Russia and Lured by Energy.")
The impact of extreme weather events became a focus at U.N. climate negotiations this year, which took place just as the Philippines was reeling from Super Typhoon Haiyan, perhaps the largest tropical cyclone ever to make landfall. "What my country is going through as a result of this extreme climate event is madness," said the country's envoy at the talks, Naderev "Yeb" Saño. "We can stop this madness. Right here in Warsaw." (See related, "Q&A With Philippines Climate Envoy Who's Fasting After Super Typhoon Haiyan.")
In the United States, the world's number two emitter of greenhouse gases, President Obama elevated climate change on the domestic agenda by revealing a strategy that included new regulations on carbon emissions at power plants, an unprecedented and controversial effort. (See related, "Obama Unveils Climate Change Strategy: End of Line for U.S. Coal Power?" and "Five Reasons for Obama to Sell Climate Change as a Health Issue.")
- David LaGesse
5. Tesla Wows in Banner EV Year, But Challenges Persist
It wasn't so long ago that Tesla Motors had the only highway-capable electric car selling on the U.S. market. Today, we're at the close of a banner year for electric vehicles, with more than a dozen plug-ins rolled out in the 2013 model year and a record number of sales.
Tesla, in particular, racked up a string of successes. The company's first made-from-scratch offering, the premium Model S sedan, received a rare near-perfect score from Consumer Reports, and Motor Trend named it Car of the Year - a first for an electric car. On the business side, Tesla reported its first-ever quarterly profit and saw its market value shoot high enough to surpass that of established automaker Fiat. (See related: "Tesla Motors' Success Gives Electric Car Market a Charge.") The upstart automaker even managed to repay its US$465 million government loan ahead of schedule.
Yet challenges persist for electric cars if they are to push aside the old internal combustion engine as the default choice for motorists. A New York Times account of a more than 200-mile journey in a top-end, six-figure Model S early this year provided a reminder of the limitations of electric cars (or at least the special needs of batteries) when used on a long road trip at highway speeds in bitter cold. (See related: "In Tesla Motors-NYT Spat, Cold Realities About Electric Cars.") The involvement of three Model S cars in fires, including two incidents in the United States, and a subsequent safety investigation by U.S. regulators, also caused high-profile headaches for Tesla, even though the Model S's five-star safety rating was reaffirmed at the end of the year. (See related story: "While U.S. Probes Tesla, What You Should Know About Car Fires.")
And despite record sales expected to top 21,000 cars for each of this year's three best-selling plug-ins (Nissan's Leaf, GM's Chevy Volt, and Tesla's Model S), battery-powered cars remain tiny players on American roads. More than 15 million new cars and trucks were sold in the United States in 2013.
- Josie Garthwaite
6. Arctic Exploration Heats Up
As the Arctic's ice recedes, energy companies are spending billions to develop the region, which holds nearly one third of the world's undiscovered natural gas and 13 percent of its oil, according to U.S. estimates. Shell,* which had made high-profile forays into the Beaufort and Chukchi Seas the previous summer, was forced to suspend its drilling plans for 2013 after trouble with its rigs, including a dramatic rescue to secure the errant Kulluk rig in January. (See related stories: "Errant Shell Oil Rig Runs Aground Off Alaska" and "In Kulluk's Wake, Deeper Debate Roils on Arctic Drilling.")
Alaska moved this year to take advantage of the new Arctic interest. With oil production at just 25 percent of its 1988 peak, the state revised its oil and gas tax structure to attract new investment. The lowered cost for energy companies has led Alaska to increase its industry investment projections to US$10 billion over the next decade, but the state will take a hit in lost tax revenue, losing one third, or US$2 billion, of its 2013 income from current energy production. (See related: "To Stem Fall in Oil Output, Alaska Seeks to Slash Industry Taxes.")
Beyond energy production, other milestones emerged this year in the Arctic: The Northern Sea Route saw its first container ship transit - and also its first tanker accident - as shipping activity continued to increase exponentially. (See related story, "Arctic Shipping Soars, Led by Russia and Lured by Energy," and interactive map, The Changing Arctic.) The increasing traffic is lending new urgency to safety and clean-up technology efforts. With the effects of the Deepwater Horizon spill still reverberating in the Gulf of Mexico, researchers and government authorities acknowledge that responding to a similar incident in the Arctic's icy waters will require better tools. (See related: "As Arctic Melts, a Race to Test Oil Spill Clean-up Technology.")
The Arctic's energy future may be "ice that burns," frozen methane hydrates below the seafloor and Arctic permafrost that potentially harbour more energy than is stored in all the world's known oil, coal, and other natural gas reserves. (See related pictures: "Unlocking Icy Methane Hydrates, a Vast Energy Store.")
- Brian Handwerk
*Shell is sponsor of the Great Energy Challenge initiative. National Geographic maintains autonomy over content.
7. Tainted Water Leaks at Fukushima
Tanks of radioactive water tower over workers at the disabled Fukushima Daiichi nuclear plant in March. Japan struggled to control leaks from the troubled plant, which was severely damaged after the March 2011 earthquake and tsunami caused an electrical failure that led to meltdowns in three of its six reactors. In July, government regulators revealed that despite containment efforts, more than 70,000 gallons of contaminated groundwater had been flowing into the sea each day-nearly enough to fill an Olympic swimming pool in a week's time. (See related story: "Fukushima's Radioactive Water Leak: What You Should Know.")
To make matters worse, in August, they also revealed that 72,000 gallons of highly radioactive water leaked from a holding tank, which merited a "serious incident" rating on an international mishap scale. (See related stories: "Latest Radioactive Leak at Fukushima: How Is It Different?" and "Fukushima Leak's 'Level 3' Rating: What It Means.") Amid criticism, the Japanese government and plant owner Tokyo Electric Power Co. announced plans for a radical, unprecedented solution-a massive underground ice wall to block further leakage. (See related story: "Can an Ice Wall Stop Radioactive Water Leaks From Fukushima?") But the status of that project is unclear, and new radioactive leaks continue to spring at the plant.
- Patrick J. Kiger
8. Renewables Soar, But Struggles Mount
The International Energy Agency (IEA) this year predicted a bright future for renewable energies like solar, wind, and water, estimating that as costs fall, renewable power production will top that of gas and nuclear combined by 2016 and deliver almost 25 percent of the total world energy mix by 2018. (See related: Global Renewable Energy on Track to Soon Eclipse Natural Gas, Nuclear.)
Hydropower should provide more than two-thirds of the total renewable energy output by 2018, the IEA suggested.
The growth rate for solar energy will slow over the next five years, IEA said, but already the explosion of residential solar in the United States has created tensions between utilities and ratepayers. In California and other states, battles are raging over "net metering" policies that allow households with solar to pay significantly less for power, eating into utility revenues. (See related story: "As Solar Power Grows, Dispute Flares Over U.S. Utility Bills.")
Wind power also faced some political headwinds, particularly for offshore offshore projects, with dwindling tax incentives and well-heeled opposition to "industrialized" ocean views. (See related: "Cape Wind Deadline: Headwinds for Offshore Turbines.")
The variability of both solar and wind continues to be a hurdle for their integration into the grid, but innovative solutions - such as storing wind energy in volcanic rock and tweaking power plants to ramp up and down more quickly - are being developed and implemented. (See related: "Too Much Wind Energy? Save It Underground in Volcanic Rock Reservoirs" and "New 'Flexible' Power Plants Sway to Keep Up With Renewables.")
- Brian Handwerk
9. North America's Oil Transport Challenge
Crude oil flowed down driveways and swamped grass lawns in Mayflower, Arkansas, after an oil pipeline ruptured at the end of March. The spill, which dumped at least 12,000 barrels of Canadian crude into a housing development, was a chilling reminder of the potential pitfalls in transporting North America's new bounty of crude. (See related: "Pictures: Arkansas Oil Spill Darkens Backyards, Driveways.")
Not so long ago, finding oil and gas in North America was the tough part. Now the challenge is getting it from well to refinery. The boom spurred by fracking and other technologies has spurred controversy over the Keystone XL pipeline project, the northern part of which has been awaiting approval by the Obama administration. (See related story: "Keystone XL Pipeline Path Marks New Battle Line in Oklahoma.") The pipeline would stretch from Canada to the Gulf Coast, transporting oil from new fields in Alberta and North Dakota. (See related map: "Keystone XL: Mapping the Flow of Tar Sands Oil.")
Critics complain that tar sands crude requires more energy to process and transport, generating more greenhouse gases than conventional crude. Some also worry the Canadian oil is more damaging if spilled. (See related story: "Oil Spill Spotlights Keystone XL Issue: Is Canadian Crude Worse?")
Many producers have turned to "pipelines on wheels" by booking mile-long trains that some speculate could permanently replace pipelines. (See related story: "Oil Train Revival: Booming North Dakota Relies on Rail to Deliver Its Crude.") But crude transport by rail has risks too, a fact that was devastatingly illustrated in the disaster that struck the town of Lac-Mégantic, Quebec, in July. There, a train carrying crude oil from the Bakken shale derailed and rolled into the town centre, setting off explosions and killing dozens. (See related story: "Oil Train Tragedy in Canada Spotlights Rising Crude Transport by Rail.")
- David LaGesse
10. High Energy Costs Roil Europe, Threaten Climate Goals
Steam billows from RWE's Frimmersdorf coal power plant near Grevenbroich, Germany. The U.S. may be enjoying lower or more stable prices for energy, but that's not the case in Europe. The International Energy Agency (IEA) predicted that annual European spending for oil and natural gas - already exceeding US$500 billion - will continue to increase. (See related story: "IEA World Outlook: Six Key Trends Shaping the Future.") The price of natural gas in Europe is triple the price in the United States.
Though Europe has seen robust development of offshore wind energy, critics say it's too costly, and Germany this year said it would scale back targets for offshore wind in an effort to address high electricity prices. (See related story: "Headwinds for Offshore Turbines.") And Britain's largest energy suppliers sparked consumer outrage last fall after announcing big price hikes. (See related story: "No Freeze on Winter Energy Prices, Despite Natural Gas Boom.") Those increases were slightly rolled back after the government promised to ease "green" levies.
Meanwhile, thanks to cheap coal readily available from the United States and a dysfunctional carbon market, coal power is popular again, playing havoc with Europe's goals to cut greenhouse gas emissions. (See related stories: "As U.S. Cleans Its Energy Mix, It Ships Coal Problems Abroad" and "Europe's Carbon Market Crisis: Why Does It Matter?")
- Tom Grose
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