Gas prices still strong despite Middle East activity
Posted Jan 09, 2020 3:24 PM
By Nick Gosnell
Hutch Post
HUTCHINSON,
Kan. — Gas prices have still been doing quite well, relative to the activity happening in the Middle East this week.
"We've only really seen, both on a national and a statewide basis, a one or two cent jump over the past week," said Shawn Steward with AAA Kansas. "Crude oil prices spiked to about $65 a barrel the night of the retaliation attack by Iran. The next morning they had dropped back to $59."
The Sunflower State is a good place to buy gas, as it generally is when all refineries are up and running.
"In Hutchinson today we're in the $2.31 to $2.35 a gallon range," Steward said Thursday. "The statewide average in Kansas is $2.30 a gallon. That puts us at 5th cheapest in the country. That's 30 cents less than the national average."
Kansas has been as high as 2nd cheapest in the country earlier in the week.
"There's really no strain on supply, domestically or globally as we stand right now," Steward said. "Those things can always change, with issues in the Middle East and if those tensions get heightened again, we could certainly see an impact down the line. Right now, we're in a good place."
Missouri remains the least expensive state on average at just over $2.22 a gallon Thursday morning.
Kansas’ decline is largely due to the rapid adoption of wind energy
and a slow move away from coal powered electricity. That is to say:
Kansas produces less carbon dioxide, or CO2, the powerful greenhouse gas
that’s released into the atmosphere when we burn fossil fuels and is a
major driver of climate change.
While
it’s below the national average, on a global scale: “Kansas, if it were
its own country, would be one of the top 60 CO2 emitters,” said Joe
Daniel, an energy analyst at the Union of Concerned Scientists.
So, when Kansas sees a reduction in emissions like it has in the past decade, it matters, he said.
The decline began in 2007, when total CO2 emissions in Kansas peaked at nearly 80 million metric tons.
First,
it’s helpful to know the source of Kansas’ CO2 emissions. In 2017,
about half of total CO2 emissions came from burning fossil fuels, such
as coal and natural gas, to create electricity. The rest was mostly from
burning gasoline and diesel in our cars and trucks.
The recent
reductions aren’t transportation-related, because, despite more
efficient and cleaner burning engines, additional people and cars have
offset the difference. In fact, total transportation emissions in Kansas
have barely changed in the past 40 years.
That leaves electric power generation.
The decline of coal
As the graph shows, energy-related CO2 emissions began to plummet in
the mid-2000s. Specifically, it’s emissions from coal-fired power
plants.
While some of the reductions are likely due to plant
upgrades and federal environmental regulations that forced coal plants
to clean up what was coming out of their smoke stacks, it’s mostly
because plants burned less coal.
Coal plants in Kansas only produced about 20,000 gigawatt hours of
electricity in 2018, compared to an average of about 35,000 gigawatt
hours during the 2000s.
Daniel said the decline is largely due to
economics. With the fast growth of cheap wind-generated electricity in
Kansas, it’s become less profitable to run coal plants.
“I don’t
think a month has gone by where I haven’t read a study about the poor
economics of either coal plants, or coal mines, or the companies that
invest in those properties,” Daniel said.
The rise of wind
About 36% of all electricity produced in Kansas is from wind, the highest percentage of any U.S. state.
Twenty years ago, there was no such thing.
Part
of the rapid growth of the industry is obvious: You wouldn’t put a wind
turbine in a place with no wind, and there’s a lot of wind in Kansas.
Plus, federal and state tax incentives encouraged developers to jump into the market.
And it’s increasingly cheaper to build a wind farm.
Just this year, Kansas saw four new wind farms come online, adding enough capacity to power 190,000 homes for a year.
“Will
we see four wind projects come online every year for the next five
years? No,” said Kimberly Gencur-Svaty, director of public policy at the
Kansas Power Alliance. “But I do think we’ll probably continue at a
pace of where we’ve averaged the last 20 years, which is a project or
two.”
How low can it go?
Ashok Gupta with
the Natural Resources Defence Council said the move to renewable energy
and subsequent decrease in CO2 emissions will be vital to reducing the
impacts of climate change.
But, he wondered if it will be fast enough, especially in states that have a lot of wind.”
“We should be going by 2030 to pretty much carbon-free electricity,” he said.
While
some states like Colorado have begun to adopt 100% renewable energy
goals, Kansas has not. Even if Kansas were to get to 100% renewable
energy, there’s still the nearly 20 million metric tons of
transportation emissions to worry about.
Achieving a clean
electrical grid will also be key to reducing those emissions, Gupta
said, even if it also means another, different shift in the way things
are currently done.
“We have to start making sure that our
transportation and our buildings are moving to all electric,” he said.
“That’s the strategy for the next 10 years.”
Editor's note:
This story was corrected on Dec. 30 to show the coal plants produced
gigawatt hours of electricity, not megawatt, and that there are 20
million metric tons of transportation emissions, not 20 metric tons.
Brian
Grimmett reports on the environment, energy and natural resources for
KMUW in Wichita and the Kansas News Service. You can follow him on
Twitter @briangrimmett
or email him at [email protected] The Kansas News Service
is a collaboration of KCUR, Kansas Public Radio, KMUW and High Plains
Public Radio focused on health, the social determinants of health and
their connection to public policy.
