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News & Updates
Summer 2021
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CES, LMOGA Workshop Addresses La. Energy Climate Solutions

On June 15, the Center for Energy Studies and the Louisiana Mid-Continent Oil and Gas Association hosted the Louisiana Energy Climate Solutions Workshop. The event provided an opportunity for industry and other stakeholders to discuss climate solutions, including carbon capture, utilization and storage, and hydrogen technologies in Louisiana. More than 150 attended the hybrid in-person/virtual event.

The morning sessions addressed investments in methane reduction (Daniel Palmer, OGCI), responsibly-sourced natural gas (Roy Hartstein, Responsible Energy Solutions), current U.S. federal carbon capture and storage policies (Matt Bright, Global CCS Institute), and offshore (Heath Nevels, GHD) and land-based (Melissa Baustian, The Water Institute of the Gulf) CO2 sequestration considerations.

Secretary Tom Harris, Louisiana Department of Natural Resources, and Jason Lanclos, Director, State Energy Office, provided a “Louisiana Update.”

Afternoon sessions focused on Louisiana H2 opportunities (Chris Arges, LSU, Department of Chemical Engineering), technical knowledge gaps involving the midstream (Frank Frey, Principal/Vice President, Engineering Solutions, GHD) and downstream (John Flake, LSU, Dept. of Chemical Engineering) sectors, as well as public education and acceptance of H2 innovations (David Dismukes, LSU Center for Energy Studies).

Follow-up workshops are anticipated that will consider additional new strategies for Louisiana, including the possible leveraging of coastal restoration as a carbon sink for Louisiana (i.e., “blue carbon”).
Dismukes addressing committee
Dismukes Presents Draft GHG Inventory to Climate Initiatives Task Force

On July 29, Center for Energy Studies Executive Director Professor David Dismukes presented a draft of the updated greenhouse gas (GHG) inventory report to a committee of scientists advising Gov. John Bel Edwards' Climate Initiatives Task Force. The report will serve as a starting point to develop strategies for meeting the governor’s emission reduction goals.

The inventory surveys and provides quantitative estimates of GHG emissions by economic sector using methodologies and modeling established by the Environmental Protection Agency and following guidelines set by the Intergovernmental Panel on Climate Change.

The preliminary findings show:

  • 65% of Louisiana’s 2018 GHG emissions come from the industrial sector (138 million metric tons out of 213 million metric tons), half of which are concentrated in the chemical and refining sectors.
  • Aggregate industrial GHG emissions have been growing around 1.0% to 1.5% per year over the last seven years. Emissions at the top 20 industrial locations have been growing around 3.5 percent per year.
  • Louisiana’s top industrial GHG emission source is the CF Industries plant (~8 million metric tons per year) followed by the ExxonMobil refinery (~6 million metric tons per year).
  • Prior to 2008, industrial GHG emissions hovered around 120 million tons per year. Plant expansions appear to have driven this steady state level up to 135 to 140 million metric tons (12.5% to ~17%).

Dismukes is set to deliver the final version of the report in September.
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Faculty Complete BOEM OCS Helicopter Study

CES Associate Professor Gregory B. Upton, Jr., Assistant Professor Cody Nehiba, and Research Associate Sid Narra completed the report “Description of Helicopter Operations and Utilization in the Gulf of Mexico,” an Outer Continental Shelf research project for the Bureau of Ocean Energy Management. The authors estimate the amount of helicopter activity required to support oil and natural gas operations in federal waters in the Gulf of Mexico. Using data from the U.S. Federal Aviation Administration’s novel Next Generation Air Transportation System (NextGen), they track individual helicopters across space and time, matching flight data to offshore activity. The data includes approximately 200,000 helicopter trips that would plausibly support offshore oil and gas operations. The research provides insight into helicopter operations supporting specific offshore activity. Results suggest that, from 2015 to 2019, there were an estimated average 152.5 thousand helicopter trips taken per year to support offshore activity that includes the drilling of exploratory wells, installation of subsea completions, and plugging and abandoning wells.

Cover of Journal of Oil, Gas and Coal Technology
Kaiser Reviews U.S. Pipeline Construction, Decommissioning Cost

In a recent paper published in the International Journal of Oil, Gas and Coal Technology, CES Professor Mark Kaiser examines the cost differences between the construction and decommissioning of offshore and onshore oil and gas pipelines in the U.S. In this first of a two-part review, Kaiser describes the similarities and differences between construction and decommissioning processes and the tradeoffs involved in design that help to explain the cost differences that arise between projects. He provides the basic terminology used in pipeline manufacturing and specifications and outlines the evaluation framework by describing cost estimation procedures, normalization, and data sources.

White Papers & Reports
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Nehiba Analyzes Costs, Benefits of Increasing La. Gas Tax

Louisiana has the longest-standing gasoline tax in the nation. Calls to increase the seventh-lowest gasoline tax in the nation to improve road infrastructure appear annually but fail to gain traction. While the state’s citizens enjoy the low $0.20 per gallon tax rate, its benefits are likely offset by the costs of inferior roads, which lead to additional fuel consumption, vehicle damage, congestion, and in some cases, accidents.

In this white paper, CES Assistant Professor Cody Nehiba offers a nontechnical guide to the economic benefits and costs of increasing Louisiana’s gasoline tax. He considers practical implementation options regarding the tax’s equity, revenue usage, and more.

One option Nehiba examines is a vehicle miles traveled (VMT) tax that charges road users based on how much they actually use roads. VMT taxes are already being tested in other states, including Oregon, which has an opt-in VMT tax that allows drivers to replace their gasoline tax charges with a VMT charge. The system allows Oregon to examine the costs and benefits of a VMT tax on a small scale and examine different technology options.

“Louisiana could benefit from implementing a similar pilot program, potentially getting a ‘head start’ on what very well could be the future of infrastructure funding,” Nehiba said.

Cover of report showing smoke stack
Tarufelli White Paper Details Incentivizing Carbon Capture through Carbon Tax Revenues

A white paper by Assistant Professor Brittany Tarufelli reveals an approach that Louisiana could use to decrease the burden of a carbon tax on large industrial CO2 emitters. Titled “Overlooked Opportunity: Incentivizing Carbon Capture through Carbon Tax Revenues,” the paper details how carbon tax revenues can advance Carbon Capture Utilization and Storage (CCUS), a technology that reduces CO2 emissions.

A carbon tax, which prices CO2 emissions equal to their environmental damages, is becoming a likely tool for Louisiana and 24 other states as they work to reach net-zero carbon emissions. The paper reviews the appeal of utilizing carbon tax revenues to fund the research, development, and implementation of CCUS.

“Policymakers have largely overlooked the possibility of recycling carbon tax revenues to incentivize and reduce the costs of CCUS,” said Tarufelli. “This proposition would help emissions-intensive industry and smooth the transition to a lower-carbon economy.”

metal pipes on oil rig
Upton Provides Dynamic Score Analysis on House Bill 57

Associate Professor Gregory B. Upton, Jr., prepared a response to a February 10, 2021, request from Louisiana State Representative Jean-Paul Coussan, chair of the House Committee on Natural Resources and Environment, regarding an independent analysis of the impact of House Bill 57 of the 2021 Regular Session. The response includes a dynamic scoring analysis of the economic impact as a result of the proposed severance tax exemption. The analysis includes taxes, licenses, and fees collected by state government, but not local governments. Analysis is based on the pre-filed version of HB57, filed on March 4, 2021.


Faculty Engagement
ear buds and cell phone
Upton Presents Podcast on Labor Markets and the U.S. Shale Oil and Gas Boom

CES Associate Professor Gregory B. Upton, Jr., prepared a podcast for the International Association for Energy Economics on March 25, 2021. In the podcast, Upton discusses how, over the past decade, the advent of oil and natural gas production from shale geological formations fundamentally changed not only global energy markets but also the communities that reside above these formations. He examines how economists might gain insights from this natural experiment about labor markets and business cycles more broadly.

Screen shot of Upton, Tarufelli, and Rose during webinar
Coauthors Present Market Restructuring Paper

In July, CES Associate Professor Greg Upton and Assistant Professor Brittany Tarufelli, along with Ken Rose, Associate Teaching Professor at DePaul University and a Senior Fellow with the Institute of Public Utilities (IPC) at Michigan State University, presented their paper, “Electricity Market Restructuring and Retail Rates” for an International Association for Energy Economics webinar. In June, the coauthors also presented their paper via webinar as part of IPC’s Friday Forum series.

The paper examines the effect of restructuring on electricity prices to final consumers. Findings show that “retail rates in restructured states are more responsive to natural gas price changes… and natural gas prices nationally increased in the post-restructuring era.”

Upton and George
U.K. Science and Innovation Network Head Talks Clean Energy Opportunities

In July, Associate Professor Greg Upton welcomed the British Consulate-General Houston Head of Science and Innovation Network Lauren George to discuss potential collaboration opportunities between the U.K., LSU, and Gulf Coast industry regarding clean energy goals. George scheduled the visit during a two-week tour of Louisiana.

Upton provided George with informational resources from CES and LSU, including the Gulf Coast Energy Outlook and the Louisiana Economic Outlook, as well as leads on potential Gulf of Mexico wind developments that could transition the state’s historical oil and gas workforce to supporting offshore wind.
Wang, Hamideh, Wilson, and Hastings
Wang Presents at Radiation Safety Conferences

Professor Wei-Hsung Wang coauthored an oral presentation on “Evaluating release criteria for feline patients following radioactive iodine treatment for hyperthyroidism” at the 66th Annual Meeting of the Health Physics Society, in Phoenix in July.

The meeting provided an opportunity for a reunion of current and past LSU Radiation Safety professionals, including (L-R) Wang, LSU radiation safety manager Amin M. Hamideh, University of Missouri deputy radiation safety officer Charles A. Wilson IV (former LSU CAMD radiation safety officer), and Sandia National Laboratory health physicist/radiological engineer Andrew D. Hastings (former LSU CAMD acting radiation safety officer).

Wang was also invited to give a prerecorded presentation on “Health physics education and certification in the United States” at the 6th International Symposium on Radiation Education, in Taipei, Taiwan, in June.

Earlier in the year, Wang coauthored two abstracts for the 15th International Congress of the International Radiation Protection Association. He presented on “Assessment of radiation exposure of healthcare workers from patients receiving nuclear medicine procedures,” and “Radioactivity-induced charging: Theory and measurements.”
Fit to print
CES faculty have been quoted in media outlets more than 50 times since the start of 2021.
Tarufelli Departs for Pacific Northwest National Laboratory 

CES Assistant Professor Brittany Tarufelli has accepted the position of energy economist with the Pacific Northwest National Laboratory. She departed CES in early August. An applied microeconomist, Tarufelli studies relationships between public policy, energy markets, and the environment. Her research evaluates the ongoing transition to clean energy, focusing on interactions between sub-global environmental policies and energy market designs.

The faculty and staff of the Center wish her well in all of her endeavors and thank her for her contributions during her tenure at LSU.
Portrait of Wei-Hsung Wang
Wang Invited to U.S. EPA Science Advisory Board, Review Panel

Dr. Wei-Hsung Wang, professor, Center for Energy Studies, and director, LSU Radiation Safety Office, was recently invited to serve on two U.S. Environmental Protection Agency entities. EPA Administrator Michael S. Regan invited Wang to serve on the Science Advisory Board (SAB), a chartered Federal Advisory Committee that provides independent scientific and technical peer review, consultation, advice, and recommendations to the EPA administrator. Members of the SAB are non-EPA scientists, engineers, and economists who are nationally and internationally recognized experts in their respective fields. Read more about the SAB appointments.

Wang was also asked to serve on the EPA panel charged with reviewing a revision of the Multi-Agency Radiation Survey and Site Investigation Manual, or MARSSIM (Revision 2). MARSSIM provides information on planning, conducting, evaluating, and documenting the building of surface and surface soil radiological surveys used for demonstrating compliance with regulatory requirements. The panel will provide comments on the concepts, methodologies, implementation, presentation, and understandability of the document.
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