Connect with us

Energy Shift

How Mine Permitting Delays Impact the Transition to a Green Economy

Published

on

The following content is sponsored by Northern Dynasty

Mine Permitting Delays and the Transition to a Green Economy

Minerals are essential components in many of our daily-use products, such as cell phones, laptops, and cars.

In fact, every American uses nearly 40,000 pounds of newly mined materials each year.

In the United States, however, the current permitting process makes it difficult for businesses to invest in the extraction and processing of minerals, such as copper.

This graphic by Northern Dynasty explores the untapped potential of mineral resources in America.

Copper, a Critical Material

In 2023 the U.S. Department of Energy officially added copper to its critical materials list, following the examples of the European Union, Japan, India, Canada, and China.

Copper is a highly efficient conductor of electricity and is considered vital for clean energy technologies such as solar, wind energy, and electric vehicles.

Green energy-related copper demand is expected to increase by nearly 600% by 2030. In this scenario, the copper market could see an annual deficit of up to about 1.5 million tonnes by 2035.

Copper demand, per year, from green sectors

Despite having more than 53 million tons of copper reserves, the U.S. imports 45% of its copper from other countries.

This is the highest level of import reliance in over 30 years. One of the biggest reasons for this is the country’s mine permitting process.

A Rigorous Mine Permitting Process

Mines are large-scale projects that demand extensive research and policies. As a result, mining projects can take 16 years, or more, to start production.

Currently, the U.S. Bureau of Land Management—which regulates land use in the country—has a permitting backlog of more than 280 mining projects.

In addition, environmental activists have adopted a “not in my backyard” stance towards domestic mining. As a result, companies have often had to resort to litigation to make any progress in the permitting process.

“Activists have weaponized the government bodies that are essential to the safe and responsible development of domestic mines,” says Michael Westerlund, VP Investor Relations at Northern Dynasty Minerals.

The company owns the largest undeveloped copper deposit in the world, named Pebble, in Alaska. Pebble and other five major copper projects totaling over 11 billion tonnes in copper resources have been delayed because of the Federal permitting process.

The Largest Undeveloped Copper Deposit in the World

The Pebble Project has been through a roller coaster of regulatory activity for the past 15 years.

Recently, the U.S. Environmental Protection Agency banned the depositing of mining waste near the mining project in Alaska, citing potential harm to the local sockeye salmon industry.

However, the veto directly contradicts findings from the Federal government that concluded that mining and fishing could coexist in the region.

“Alaska does resource development better than any other place on the planet, and our opportunities to show the world a better way to extract our resources should not be unfairly preempted by the Federal Government”
–Alaska Governor Mike Dunleavy

Projects like Pebble can provide significant economic benefits and support the U.S. transition to a greener future. With the current regulatory uncertainty for U.S. developers, where the much-needed supply of copper will come from is unknown.

Click here to learn more about Pebble.

Click for Comments

Energy Shift

Ranked: The Most Carbon-Intensive Sectors in the World

Comparing average Scope 1 emission intensities by sector, according to an analysis done by S&P Global Inc.

Published

on

Ranked: The Most Carbon-Intensive Sectors in the World

Ever wonder which sectors contribute the most to CO2 emissions around the world?

In this graphic, we explore the answers to that question by comparing average Scope 1 emission intensities by sector, according to an analysis done by S&P Global Inc.

Defining Scope 1 Emissions

Before diving into the data, it may be useful to understand what Scope 1 emissions entail.

Scope 1 emissions are direct greenhouse gas emissions from sources that are owned or controlled by a company, such as their facilities and vehicles.

Source: U.S. Environmental Protection Agency

Scope 1 emissions can do a good job of highlighting a company’s environmental footprint because they represent the direct emissions related to manufacturing or creating a company’s products, whether they are tangible goods, digital software, or services.

Scope 2 and 3 emissions, on the other hand, encompass the indirect emissions associated with a company’s activities, including those from a company’s purchased electricity, leased assets, or investments.

Ranking the Carbon Giants

According to S&P Global’s analysis of 2019-2020 average emissions intensity by sector, utilities is the most carbon-intensive sector in the world, emitting a staggering 2,634 tonnes of CO2 per $1 million of revenue.

Materials and energy sectors follow behind, with 918 tonnes and 571 tonnes of CO2 emitted, respectively.

SectorSector ExplanationScope 1 CO2 emissions per $1M of revenue, 2019-2020
UtilitiesElectric, gas, and water utilities and independent producers2,634 tonnes
MaterialsChemicals, construction materials, packaging, metals, and mining918 tonnes
EnergyOil and gas exploration/production and energy equipment571 tonnes
IndustrialsCapital goods, commercial services, and transportation194 tonnes
Consumer staplesFood, household goods, and personal products90 tonnes
Consumer discretionaryAutomobiles, consumer durables, apparel, and retailing33 tonnes
Real estateReal estate and real estate management31 tonnes
Information technologySoftware, technology hardware, and semiconductors24 tonnes
FinancialsBanks, insurance, and diversified financials19 tonnes
Communication servicesTelecommunication, media, and entertainment9 tonnes
Health careHealth care equipment, pharmaceuticals, biotechnology, and life sciences7 tonnes

S&P Global also reveals some interesting insights when it comes to various industries within the materials sector, including:

  • Cement manufacturing exhibits an extremely high level of Scope 1 emissions, emitting more than double the emissions from the utilities sector (5,415 tonnes of CO2 per $1M of revenue)
  • Aluminum and steel production are also quite emission-intensive, emitting 1,421 and 1,390 tonnes respectively in 2019-2020
  • Relatively lower-emission materials such as gold, glass, metals and paper products bring down the average emissions of the materials sector

Given these trends, a closer look at emission-intensive industries and sectors is necessary for our urgent need to decarbonize the global economy.

Continue Reading

Energy Shift

Ranked: The World’s Biggest Oil Producers

Just three countries—the U.S., Saudi Arabia and Russia—make up the lion’s share of global oil supply. Here are the world’s biggest oil producers.

Published

on

Oil by Country

Ranked: The World’s Biggest Oil Producers

This visualization originally appeared on Visual Capitalist

In 2022 oil prices peaked at more than $100 per barrel, hitting an eight-year high, after a full year of turmoil in the energy markets in the wake of the Russian invasion of Ukraine.

Oil companies doubled their profits and the economies of the biggest oil producers in the world got a major boost.

But which countries are responsible for most of the world’s oil supply? Using data from the Statistical Review of World Energy by the Energy Institute, we’ve visualized and ranked the world’s biggest oil producers.

Ranked: Oil Production By Country, in 2022

The U.S. has been the world’s biggest oil producer since 2018 and continued its dominance in 2022 by producing close to 18 million barrels per day (B/D). This accounted for nearly one-fifth of the world’s oil supply.

Almost three-fourths of the country’s oil production is centered around five states: Texas, New Mexico, North Dakota, Alaska, and Colorado.

We rank the other major oil producers in the world below.

RankCountry2022 Production
(Thousand B/D)
YoY ChangeShare of
World Supply
1🇺🇸 U.S.17,770+6.5%18.9%
2🇸🇦 Saudi Arabia12,136+10.8%12.9%
3🇷🇺 Russia11,202+1.8%11.9%
4🇨🇦 Canada5,576+3.0%5.9%
5🇮🇶 Iraq4,520+10.2%4.8%
6🇨🇳 China4,111+2.9%4.4%
7🇦🇪 UAE4,020+10.4%4.3%
8🇮🇷 Iran3,822+4.6%4.1%
9🇧🇷 Brazil3,107+3.9%3.3%
10🇰🇼 Kuwait3,028+12.0%3.2%
11🇲🇽 Mexico1,944+0.9%2.1%
12🇳🇴 Norway1,901-6.3%2.0%
13🇰🇿 Kazakhstan1,769-2.0%1.9%
14🇶🇦 Qatar1,768+1.8%1.9%
15🇩🇿 Algeria1,474+8.9%1.6%
16🇳🇬 Nigeria1,450-11.2%1.5%
17🇦🇴 Angola1,190+1.1%1.3%
18🇱🇾 Libya1,088-14.3%1.2%
19🇴🇲 Oman1,064+9.6%1.1%
20🇬🇧 UK778-11.0%0.8%
21🇨🇴 Colombia754+2.4%0.8%
22🇮🇳 India737-3.8%0.8%
23🇻🇪 Venezuela731+8.1%0.8%
24🇦🇷 Argentina706+12.4%0.8%
25🇦🇿 Azerbaijan685-5.6%0.7%
26🇮🇩 Indonesia644-6.9%0.7%
27🇪🇬 Egypt613+0.8%0.7%
28🇲🇾 Malaysia567-1.7%0.6%
29🇪🇨 Ecuador481+1.7%0.5%
30🇦🇺 Australia420-5.2%0.4%
31🇹🇭 Thailand331-17.5%0.4%
32🇨🇩 Congo269-1.7%0.3%
33🇹🇲 Turkmenistan244+1.0%0.3%
34🇻🇳 Vietnam194-1.2%0.2%
35🇬🇦 Gabon191+5.4%0.2%
36🇸🇸 South Sudan141-7.6%0.2%
37🇵🇪 Peru128+0.5%0.1%
38🇹🇩 Chad124+6.2%0.1%
39🇬🇶 Equatorial
Guinea
119-9.2%0.1%
40🇸🇾 Syria93-2.7%0.1%
41🇮🇹 Italy92-7.9%0.1%
42🇧🇳 Brunei92-13.8%0.1%
43🇾🇪 Yemen81-2.4%0.1%
44🇹🇹 Trinidad
& Tobago
74-3.6%0.1%
45🇷🇴 Romania65-6.2%0.1%
46🇩🇰 Denmark65-1.6%0.1%
47🇺🇿 Uzbekistan63-0.9%0.1%
48🇸🇩 Sudan62-3.3%0.1%
49🇹🇳 Tunisia40-12.9%0.0%
50Other CIS43+4.4%0.0%
51Other Middle East210+1.2%0.2%
52Other Africa283-3.4%0.3%
53Other Europe230-20.5%0.2%
54Other Asia Pacific177-10.6%0.2%
55Other S. &
Cent. America
381+68.5%0.4%
Total World93,848+4.2%100.0%

Behind America’s considerable lead in oil production, Saudi Arabia (ranked 2nd) produced 12 million B/D, accounting for about 13% of global supply.

Russia came in third with 11 million B/D in 2022. Together, these top three oil producing behemoths, along with Canada (4th) and Iraq (5th), make up more than half of the entire world’s oil supply.

Meanwhile, the top 10 oil producers, including those ranked 6th to 10th—China, UAE, Iran, Brazil, and Kuwait—are responsible for more than 70% of the world’s oil production.

Notably, all top 10 oil giants increased their production between 2021–2022, and as a result, global output rose 4.2% year-on-year.

Major Oil Producing Regions in 2022

The Middle East accounts for one-third of global oil production and North America makes up almost another one-third of production. The Commonwealth of Independent States—an organization of post-Soviet Union countries—is another major regional producer of oil, with a 15% share of world production.

Region2022 Production
(Thousand B/D)
YoY ChangeShare of
World Supply
Middle East30,743+9.2%32.8%
North America25,290+5.3%27.0%
CIS14,006+0.9%14.9%
Africa7,043-3.5%7.5%
Asia Pacific7,273-1.4%7.8%
South & Central
America
6,3617.2%6.8%
Europe3,131-8.6%3.3%

What’s starkly apparent in the data however is Europe’s declining share of oil production, now at 3% of the world’s supply. In the last 20 years the EU’s oil output has dropped by more than 50% due to a variety of factors, including stricter environmental regulations and a shift to natural gas.

Another lens to look at regional production is through OPEC members, which control about 35% of the world’s oil output and about 70% of the world’s oil reserves.

A pictogram of the regional per day production by the biggest oil producers in 2022.

When taking into account the group of 10 oil exporting countries OPEC has relationships with, known as OPEC+, the share of oil production increases to more than half of the world’s supply.

Oil’s Big Balancing Act

Since it’s the very lifeblood of the modern economy, the countries that control significant amounts of oil production also reap immense political and economic benefits. Entire regions have been catapulted into prosperity and wars have been fought over the control of the resource.

At the same time, the ongoing effort to pivot to renewable energy is pushing many major oil exporters to diversify their economies. A notable example is Saudi Arabia, whose sovereign wealth fund has invested in companies like Uber and WeWork.

However, the world still needs oil, as it supplies nearly one-third of global energy demand.

Continue Reading

Subscribe

Popular