Even as stand-
recent five years compared with the five pre-
energy field fully grasp the explosion of tech-
vious years when comprehensive record keep-
nological advances in conventional electricity
alone, off-grid
ing began. Even subtracting the 10.8 million
generation. Such progress easily compares
generators, natur-
gallons of oil leaked from the Valdez from the
with the technological progress of unconven-
al gas microtur-
base period, spillage fell by more than 50 per-
tional energies, given that the starting point
cent. The spillage in 1996 of 3.2 million gal-
of conventional energies was so far ahead. So
bines can pro-
lons was approximately one-thousandth of 1
even if the rate of improvement (or rate of
duce electricity
percent of the 281 billion gallons moved and
growth) of an unconventional technology is
consumed in the United States. Moreover,
greater over a certain time frame, the relative
for as little as 4.5
what is spilled is controlled more quickly and
end points are what are relevant.
cents per kWh.
has less impact on the ecosystem owing to
To use an analogy, a weekend athlete
improved cleanup technology such as biore-
could achieve greater improvement than
57
mediation.
could a professional athlete as the result of
Those advances have been accelerated by
full-time training for a given period of time,
the problems the industry has experienced.
but it would be incorrect to infer that the rate
Just months after the Valdez accident, the
of progress implies that the amateur's
American Petroleum Institute, concluding
improvement is sustainable or that the pro-
that government and industry had neither
fessional athlete will eventually be displaced.
"the equipment nor the response personnel
The same may be true today of alternative
in place and ready to deal with catastrophic
energy technologies, most of which have
tanker spills" in U.S. waters, recommended
longer histories and more competitive chal-
forming an industrywide oil-spill response
lenges than is commonly realized in our
organization. The result was a $400 million,
politicized context.
20-member organization--the Petroleum
Industry Response Organization--financed
The Emergence of Natural
from a small fee levied on transported tanker
GasFired Technologies
58
barrels. The group was reorganized in 1990
Natural gas technologies are setting the
as the Marine Spill Response Corporation,
competitive standard for all conventional
and a 5$1 billion five-year commitment
energies in the electric market where
9
ensued. Federal legislation was passed (the
methane reserves are abundant. In North
Oil Pollution Act of 1990) that required dou-
America, gas-fired combined-cycle plants can
ble hulls in new tankers operating in domes-
generate large quantities of electricity at
tic waters to provide greater protection in
around 3 cents per kilowatt-hour (kWh)
case of accidents. Not only the local environ-
where demand conditions support continu-
ous ("baseload") operation.6 1 Smaller gas
ment but ecotourism is booming in Prince
William Sound in Alaska thanks to the
units can also be constructed without a great
monies collected and the attention gained as
loss of scale economies, allowing the flexibil-
60
ity to meet a range of market demands.6 2
a result of the Valdez oil spill. Thus, a worst-
case environmental event turned out to be a
Quicker construction and less capital outlay
temporary problem that in the longer run
figure into those economies.
has proven positive for the local environment
Even as stand-alone, off-grid generators,
and the environmental movement in the
natural gas microturbines sized from 500
United States.
watts to several hundred kilowatts can pro-
duce electricity for as little as 4.5 cents per
kWh on a fully utilized basis where generated
The Competitive Quandary
steam is utilized in addition to electricity.
of "Green" Electricity
Moderate usage (a lower capacity factor)
without cogeneration doubles the nominal
cost.6 3 Rapidly improving microturbine tech-
Unfortunately, few analysts outside the
13