Trading oil is exactly the same as trading Forex, stock indices, or anything else. Trading, as opposed to buying shares, allows two big advantages. The first is that we can profit from falling prices just the same as rising prices, by selling rather than buying. The second is 'leverage' which allows us to effectively buy huge quantities with just a small deposit. This means we can pocket a decent profit from a small move up or down in price. Of course, this is potentially risky but we always put in an automatic 'stop loss' to close the trade should the price move against us by a set amount. Likewise, we put in an automatic 'limit' to close the trade for a set profit.
    Many Forex brokers also allow you to trade oil, so setting up an account is no problem at all. Forex is mostly traded on the MetaTrader 4 platform and this often includes oil without people realising. In fact, most MetaTraders have all sorts of additional instruments, often shares and sometimes even including the DOW. To reveal these, you need to right click in the Market Watch window (where the currency pairs are displayed) and click on 'Show All'.
    We obtain our signals from a free, everlasting demo version of MetaTrader but you can actually place the trades anywhere you like, including spread betting. The amount of capital you require varies from broker to broker but most will trade mini contracts and need only a few hundred dollars in your account. The actual risk will be even lower than this because we put in a stop of 90 pips (a $0.90 move on the price of oil). MetaTrader shows the daily 'spot price' for oil and both this spot price and the oil 'futures price' are available depending on which broker you use. The futures price is simply an estimated price for oil for  delivery at a set date in the near future. It really makes no difference to our trading.
    Here is how a typical trade works. We see that the quoted price is 81.50 - 81.56 so this means that we can buy at 81.56 oil and sell at 81.50 - the difference in prices being the broker's profit. We have a sell signal on our chart, so we sell 0.1 contracts or $1 (or £1) a pip. Now, a 'pip' is the smallest movement, which in this case is 0.01 or a one cent move. At the same time, we put in a stop loss at 82.40 (90 pips up in the 'wrong' direction because we are selling and want the price to go down) and a take profit of 80.00 (150 pips in the hoped-for direction). Then, we simply wait anything from ten minutes to five hours, on average.
    However, if the TCCI changes colour, we manually close the trade (although, you can just leave it and wait for the stop or limit to be hit). Usually, we hit the limit and the trade is automatically closed by the software and the $150 deposited in our account. Of course, ideally we trade for a lot more - $10 a pip or greater. For example, trading a whole contract would have resulted in a $1,500 profit, which is quite realistic and not too bad for a few hour's 'work'!
    All this and more is fully explained in the 26 page guide that comes with The Oil Trading Business System.

Suitable Brokers:
www.Avafx.com  24hrs, fast & trading from $0.10 per pip!
www.CapitalSpreads.co.uk fixed 6 pip spread, fast (I use them)
www.igindex.co.uk  24hrs excellent but variable large spread
www.futuresbetting.com  24hrs best spread betting but expensive
www.FXPro.com  - accepts US traders. 5 pip spread
www.globalfutures.com - accepts US traders
www.tradersplatform.com - accepts US traders
www.cleartrade.com - accepts US traders
www.optionsxpress.com - accepts US traders
www.mbtrading.com - accepts US traders

Oil can be traded from anywhere in the world with a free price feed and from $300 capital.
    Financial trading is big money but 95% lose big time! I would also say that over 95% of the websites are complete BS and anyone with less than 2 years experience is a lamb to the slaughter. Everyone wants to trade Forex because it is hyped up to be the greatest way to make money. True. Vendors are raking it in while traders are going broke. With over ten years experience (yes, broke several times) and a regular forum contributor on Trade2win.com, I've seen it all... This is different, quite genuine and quite original. I actually make my money from trading, not from selling systems. I am available every day to give support because I am trading this, my own system.
    Why is oil so good? Because we trade one thing from one chart and get about two clear signals a day with a very high success rate. We get totally unambiguous signals with no repainting and have simple, exact rules - follow them and you can literally more than double your money every month when conditions are good.

30 Min Oil chart showing what you will see on your screen when the system is loaded into MetaTrader on your computer.

    We average around 500+ pips per month profit (proof posted daily) with around twenty trades every week. Oil can be traded worldwide using standard Forex brokers or spread betting. Much easier than Forex. Much less stress. Much more profit. Signals are generated in MetaTrader as shown above and then you can trade them with any broker you like. We trade the 30 minute chart so it is not necessary to watch the screen all the time. You can also Trade the 15 minute chart    There is also an optional audio alert and SMS alert to warn you of a possible trade coming up soon. This is ideal if you can't check the screen regularly, are at work or otherwise engaged! This is downloadable from the Members Area (Free after purchase).
 If you must trade Forex, I recommend SaneFX!


"Apache Resumes Oil Output as Australia Cyclone Eases"
Apache has restarted production from two oil fields with combined output of 13,200 barrels per day off Australia's western coast after a cyclone no longer posed a danger to operations....Complete Story

"Magellan Says Port Arthur Project Costs Now Halved To $120 mil"
Magellan Midstream Partners said Monday it has dropped plans to build an 80-mile-long pipeline from Motiva Enterprises' refinery in Port Arthur, Texas, to Houston and will instead link with Explorer Pipeline....Complete Story

"NYMEX Crude Rallies On Geopolitical Tensions"
NYMEX February crude futures on CME's Globex system were $2.30/barrel higher at $40.01/b Monday, paring overnight gains that were fueled by geopolitical considerations as well as a retreat in the US dollar....Complete Story

"Ecuador To Trim Foreign Cos' Oil Production To Comply With OPEC"
Ecuador's government will reduce the volume produced by a number of foreign companies operating in Ecuador in order to comply with OPEC's recent oil production cut....Complete Story

"Tight Credit Threatens Pipeline Expansion"
Steady expansion for pipeline companies is grinding to a halt as tight credit makes it harder to raise construction money, potentially limiting their ability to bring new supplies of natural gas to market....Complete Story

"Oil Companies Bullish on Shale Oil"
The recent drop in oil prices is not likely to derail the push to develop shale oil deposits in the western United States, an oil executive says. Despite sagging crude prices and growing concern....Complete Story


"Gulf Oil Blocks May Be at High Risk during 2009 Active Hurricane Season"
According to the Houston-based Weather Research Center's forecasts, the 2009 Hurricane Season will have at least 7 named storms with 4 of these tropical storms intensifying into hurricanes....Complete Story

"NOPSA Investigates Fatal Accident Aboard Karratha Spirit Facility"
NOPSA is currently investigating a fatal accident which occurred on the Karratha Spirit facility offshore Australia during disconnection of the facility from its mooring buoy in response to adverse weather arising from Tropical Cyclone Billy....Complete Story

"Crude Oil, Gasoline Inventories Higher"
Crude oil stockpiles were unexpectedly higher in the recent week, according to Energy Information Administration data released on Wednesday morning. Gasoline inventories also rose, but less than expected....Complete Story

"Oil Falls In Quiet Trading To Cap Turbulent Year"
Oil traded below $40 per barrel on the last day of 2008, quietly wrapping up what has been the most turbulent year ever in crude markets. In just five months....Complete Story

Winners

Genesis Energy, L.P. 13.05%
Berry Petroleum 9.15%
TETRA Technologies 8.18%
Denbury Resources 7.44%
McDermott International 7.44%

Losers

Newpark Resources -10.24%
Infinity -7.69%
Edge Petroleum -6.67%
Daugherty Resources -5.56%
Syntroleum -5.26%

Nov Crude Oil finished the week up 4% or 2.77 points to close at 72.49. Nat Gas finished the week up 21.6% closing at 3.778. The SnP cash closed the week up 2.5% closing at 1068.30. The USD lingers around support at 76 closing the week at 76.67. Gold finished the week up 4 points or up 1/2% at 1009.40. This week we get the FED MTG on Wed.

The commercials increased their net short position on crude this last week. It increased from -133,519 to -143,033 which is the second highest net short position this year. The high is 145,499 this year so we are at a yearly extreme. The Nat Gas net long position is at 40,512 which is the highest it has been since the commercials went net long last May.

For inventories crude oil imports have been decreasing and inputs into refineries have been increasing which means lower crude oil inventories. However Gasoline and Heating oil inventories are increasing. For Nat Gas current inventories are at 3458 and there are about 7 -10 more injections left before nat gas winter demand ramps up. If Nat Gas injections were to match last year then that would mean an additional 524 bcf of injections. Here are the balance of last years injections:

9/18 +54 bcf
9/25 +82 bcf
10/2 +87 bcf
10/9 +81 bcf
10/16 +71 bcf
10/23 +49 bcf
10/30 +23 bcf
11/6 +54 bcf
11/13 +23 bcf
11/20 -55 bcf

For technicals on crude support lies at 68. There is resistance at 73 which has held back crude for two weeks. If crude closes above 73 then it can make a run at the highs at 75.89 where there is strong resistance. For Natty it needs to close above the down trend line and above the rally high at 3.90. If natty can close above 3.90 two session in a row then that should confirm higher prices are in the cards.


Crude oil fell for a second day as the dollar strengthened against the euro, dimming investors’ demand for dollar priced assets to hedge against inflation. Oil dropped as much as 1.7 percent as the U.S. currency climbed for the first time in five days. Inventories of crude oil, gasoline and distillate fuel are higher than average, according to the Energy Department.

“The rally in energy is looking a little long in the tooth,” said John Kilduff, senior vice president of energy at MF Global in New York. “There isn’t any economic data to give the market any strength. The dollar is a bit stronger today, which is weighing on things”.


Crude oil fluctuated as equity gains indicated that the U.S. is pulling out of a recession amid ample fuel supplies in the world’s biggest energy using country. Oil is heading for a 4.6 percent increase this week, a second straight weekly advance, as the stock market climbed on data showing an expansion in U.S. housing starts and industrial capacity utilization.

The country’s supplies of crude oil, gasoline and distillate fuel are higher than average, according to the Energy Department. “This is a range bound market,” said Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures Inc. in New York. “There’s nothing at this moment that is giving it a direction”.



Art Cashin mentioned today that we will have a very exciting period for the markets, "We could see perhaps historic trading over the next eight weeks or so." Art Cashin cited the Baltic Dry Index and the questionable economic data coming from China as warnings for an imminent fall. Art with all due respect has been mostly wrong since the march lows and he keeps repeating himself. But even a broken clock is right twice a day and this may very well be the case for Mr. Cashin.

I am glad I closed half of my short S&P position yesterday and I am disappointed with today`s action. Lets see how it goes tomorrow but I am ready to run away from the market with the rest of my profits in my pockets. I am planning a trade on the Schatz Futures, a play on 2 year german interest rates on EUREX. I have been shorting and covering Schatz over the last few months, been able to extract a lot of euros from that market. Its one of my favourite markets and I have a very good track record playing this contract. I am looking forward to open again, preferably to short above 108.20. Even though I think the current level (108.06) is already a very good starting point for shorts.

Did you see the rally in oil today? Big upmove, reversing almost all the losses from previous sessions. I plan to short a small line in oil in order to extract the contango in that market. The contango is nearing 2 dollars per contract which is pretty fat. Its a 3% monthly rolling yield for shorts. So, what that means is that crude oil has to rally over 3% per month for you to lose money. Its a decent proposition at least as far as I am concerned.

Now, one little appetizer. Check out questa macchina. Its the fantastic Ferrari California. Visit this website and be marvelled with this beauty. Go to the configurator on that site and choose Rosso Corsa for the outside color and Crema on the Trim. That would be my choice.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.


The ratio of crude oil to natural gas futures prices on the NYMEX reached its highest level in over 19 years during friday's trading session. Natural Gas is trading at lows not seen since August 14, 2002. At the current levels, the ratio between both commodities stands at 25 to 1.

Looking at data going back to early April 1990, the average ratio of crude oil to natural gas futures prices stands at 9.38. After many traders got burned playing this spread early in the year I think its time to give it a shot. The only thing that holds me back a bit is the extreme contango on Natural Gas Futures and the consequent cost of carry. But the contango is probably near its high for the time being and may come down a bit.

This trade can be done with a long short ETF play, short United States Oil Fund (USO) and long United States Natural Gas Fund (UNG) or with a pure long short futures play, short CL Futures, long NG futures. If your patient and if you can sit tight on a volatile position, in other words if you are not afraid of a financial rollercoaster, then this trade has very good money winning odds.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.


A return to the 10-month high of 75 dollars a barrel hit recently looked increasingly remote after the EIA reported a 100,000 barrel increase in U.S. oil inventories. Inventories are about 15% higher than they were a year ago, while demand was down 0.9% in the four weeks ended Aug. 21, the department's EIA said. Analysts had given an average forecast for a 600,000-barrel drop, according to a Dow Jones Newswires survey.

I had a decent trading day extracting more then 70 pips on the EUR/USD currency pair, fading minor moves early in the morning. I am keeping by big short position on Euribor Futures and I am slightly off the money on those. But I am sure that if I am patient enough and if I can sit tight on these contracts I will make a killing, sooner rather then later.

I have also opened a very moderate S&P Futures short line as I perceived the market internals to be soft today. I am short at 1025 and I expect this position to return to profitability tomorrow.

Today I will begin watching the 5th season of my favourite TV series, Entourage. I bought the DVD and I will watch one episode a day before going to sleep. Me and my wife are big fans of Vince, E, Drama, Turtle and their easy lifes. You can visit the TV series official site here. For those who are not familiar with the series, I highly recommend it. You will have the time of your life watching these 4 guys cruising through life.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.


A new paper by Rice University’s Baker Institute for Public Policy shows a clear increase in the size and influence of noncommercial traders, or “speculators,” in the oil futures market since regulations were eased by the Commodities Futures Modernization Act of 2000.

Speculators now constitute about 50 percent of those holding outstanding positions in the U.S. oil futures market, compared with only about 20 percent prior to 2002. The report also finds that the correlation between oil and the dollar has strengthened significantly over the past several years.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.



Another disappointing session end for the bears. Its quite frustating to be short this market and then see the market climbing its way up in the final hour of trading. I have a reason for this behaviour. Its the desperate fund managers that are out of stocks and find themselves forced to come in at any price. This will cost them dearly pretty soon.

We are in the distribution phase. Smart sellers are feeding asinine buyers. I am keeping my short line but I have to say that I am quite frustated with today`s pattern.

Besides this trade, I was pretty active trading the Euro Dollar currency pair. I extracted 50 pips with my intraday countertrend system.

Marc Faber commented friday that, "I think that at worst the (japanese stock) market isn`t going to do anything. But obviously the market can have quite a rally for the simple reason that we are still very low in terms of share prices in Japan". I think medium to long term investors will be rewarded if they buy the Nikkei 225 or the iShares MSCI Japan Index (ETF) (NYSE:EWJ). I agree with Marc. The worst thing it can happen is flat trading.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.


I am buying Natural Gas Futures at 2.500. This is the most oversold market I have ever seen and I always get a big bang when I am able to buck such trend.

I am probably betting a bit more then I should but I am expecting a big rebound at any time now. I have to admit that my heart is racing but that is probably a sign that the market is about to reverse.

This futures expires in September 28th and between now and then I should be able to close it with a decent profit.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.

Markets Are Stronger Then I Expected. Natural Gas Is Beginning To Rally

I have just closed my S&P futures with a loss. Market is trading stronger then I expected.

Natural Gas is surging and I got in at a fantastic price yesterday so I will have no trouble at all riding it higher. Hecla Mining (HL) and Dynegy inc. (DYN) are doing nicely also.

I am also backing away from the dollar. Dollar is weakening again so I will run away with a scratch trade. But this what trading is all about. Like a professional snooker player, a trader has to always be playing for position. Most of the trades will be small losses and small profits and the ones that really count are a few trades per year.

It was a pretty active week and I am needing a rest. Fortunately things went very well for me this week.

I will leave with one of my favourite musics, one that I always listen when I get home and relax. This is a live performance of Bad Day, from REM. Its my favourite song of all time and I love to play it on bad or good days.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.


This is the Natural Gas Futures seasonal graph that was sent by one the members of this trading community. As you can see this is the best time of the year to be long Natural Gas Futures. The seasonal graph shows us that September and October are the best months for Natural Gas prices increases.

As you know I bought October Natural Gas Futures last week at 2.500, very near the bottom. On friday the natural gas futures spiked higher more then 8% and I had no trouble at all in riding it higher. I am still holding it for higher prices with a stop a little above my entry price to secure a part of my profits no matter what. Anyway I think a major long term bottom in gas prices is already in.

Today I will take the day to watch the US Open. Nadal, Tsonga will be in action today and I am looking forward for the night session where the ressurgent and always spectacular Taylor Dent will meet forces with the brit Andy Murray. I love comebacks and I still remember when Jimmy Connors made a comeback at 42 years old and sent the US Open crowds wild with his fantastic play.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.


NYMEX crude oil futures prices ended above 71 dollars a barrel today after posting the biggest one day rise since August 19 on a buying spree spurred by weakness in the dollar.

Light, sweet crude oil futures for October settled 3.08 dollars higher at 71.10 a barrel, the highest price since Aug. 28. Nymex prices had dropped 4.72 dollars a barrel, or 6.5% last week.

The Organization of Petroleum Exporting Countries meets Wednesday in Vienna to review oil output policy, but traders said they don't expect surprises. Ali Naimi, oil minister of OPEC kingpin Saudi Arabia, said the oil market is in "very good shape" and both producer and consumer nations are happy with crude prices between $68 and $73 a barrel.

Goldman Sachs said in a report it expects mountainous U.S. inventories of distillate fuel (diesel fuel/heating oil), at a 28-year high at the end of August, to decline in coming months, improving the supply/demand outlook. The bank repeated its forecast for $85-a-barrel crude oil by year end.

I am still standing path on the oil futures waiting for a big opportunity to emerge. I was caught on the May rally and I have been on the oil sidelines since then.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.


I think the trading bias will be to the downside today.

On the economic front, initial claims were a little better then expected and the Trade Deficit was lower then antecipated which implies that growth estimates will probably be revised lower. All in all the market is overbought and prone to correct and technically a correction will fit the graphs nicely creating a nice double top on the S&P 500.

Big match on Flushing Meadows last night. Federer needed 2 tie-breaks to defeat the powerful forehand of Robin Soderling. It was a shame that the match didn`t go to a fifth set because Soderling was really rising up to the occasion. Del Potro, Cilic, Nadal and Gonzalez will play the remaining quarter finals today.

Have a nice trading day.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.


Light, sweet crude futures for October delivery closed 0.43, or 0.6%, lower, at 68.86 dollars a barrel on NYMEX.

Traders have settled on roughly $70 a barrel as the appropriate price for oil, which is available in massive quantities today but is expected to become more scarce as the world economy recovers and demand picks up. So when oil prices neared 73 a barrel on Friday, support gave way and futures quickly retreated.

It's a pattern that's repeated on a loop since June: oil prices have fallen sharply soon after approaching 75 dollars a barrel, and usually rally almost immediately after nearing 65 dollars a barrel. Events have largely reinforced the status quo throughout - economic indicators like the U.S. unemployment rate are worsening at a slower rate or beginning to improve, while supplies of oil and fuel remain well above normal.

The tight trading range could persist for some time - the U.S. Department of Energy and other leading forecasters say it could take until the end of 2010, or later, for refiners to burn off the surplus.

"We're not going to use all this oil in the short term," said Phil Flynn, an analyst with PFGBest in Chicago. "It's going to keep a lid on the market."

Goldman Sachs Group Inc. (GS) sees a quicker end to the glut, with supplies in the developed world reaching normal levels by the end of the year, potentially pushing oil prices up to 85 a barrel, the bank's London-based analysts wrote in a note to clients.

It was a quiet trading day for me as I only monitored my structural trading positions and did some research through out the day. As you know I am still short Dax and 3 Month Euribor Futures and I still hold some positions on Hecla MIning and on Dynegy that I plan to sell tomorrow. I think its time to fully commit to the short side of the stock market.

I am watching the US Open final on TV as we speak. The match is on the forth set and Del Potro is threatning to send the match to a fifth set.

Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.

SW Solar Now. In June, Interior Secretary Ken Salazar opened up 24 of the SW's sunniest areas on Bureau of Land Management lands in six states to begin leasing for installation of up to 100,000 MW of solar power plants. (See here for article on the Interior Department announcement). The first plants could be operating within 3 to 4 years in these ideal locations, which were chosen for maximum clear sunny days and minimal impact on the environment or other land uses.
Sun Doesn't Shine All the Time. Although the SW sunshine resource is enormous and largely untapped, critics of solar energy routinely note the sun does not shine all the time. The implication is that power is needed all the time, and since the sun is not always available, solar opponents say it would be foolish to invest in generating electricity from the sun.
Grid Can Use Solar. Utilizing solar electricity when the sun does shine is not really a major problem for the electric grid, until the percentage of power generated by solar reaches high percentages. This is because roughly 50% of the electrical capacity on the grid consists of load-following power plants (chiefly natural gas and hydroelectric), which can quickly reduce power output when a renewable resource such as solar or wind is available, and increase output when needed. The ability of the grid to absorb a high percentage of power from renewables has been documented by the U.S. Department of Energy and was discussed in my article "The Wind does NOT Blow Only 1/3 of the Time" here.
The output from a solar power plant also fits very well with the times when power is most needed. Most utilities see increased demand for electricity during daylight hours, with peak demands occurring on hot sunny days when a solar power plant produces well. By the same token, less power is needed at night.
It is generally agreed, however, that extending the percentage of our electricity generated by renewable power sources above 20-30% will require means to better regulate the grid (see "Smart Grid" article here), more efficiently supplement renewable power, or store it for later use.
Solar Thermal Offers More Choices. Solar photovoltaics (PV) require storage of their electrical energy output to extend their use into evening and cloudy hours. Methods the electric grid can use to store electrical energy include batteries, flywheels, pumped hydro or compressed air energy storage.
The "other" kind of solar power -- Solar Thermal power -- offers more choices to integrate with the grid to provide reliable power.
Instead of directly converting the sun's rays into electricity, Solar Thermal plants use mirrored surfaces to concentrate sunlight to produce high temperatures. This is why they are also called Concentrating Solar Power (CSP) Plants.
The high temperatures are used to boil water to produce superheated steam to generate electricity. This different technology means there are now three different ways that Solar Thermal power plants can provide power when the sun is not shining:
1. Integrate a back-up source of heat (e.g. natural gas) to produce steam.

2. Produce excess solar heat during the day, and store that heat.

3. Grid storage of electrical energy (as with PV or wind).
This expansion of choices means that a Solar Thermal plant can function as a reliable source of "24/7" power to the electrical grid.
Steam Generators Most Common Source of Electricity. The key to generating electricity for a century has been to produce high temperatures to heat water, superheat the steam (so it will not condense into water droplets inside the steam turbine and damage the blades), and then run this superheated steam past blades in a steam turbine to spin those blades to run a generator. After the steam passes through the turbine it is then cooled, and the water is re-used.
This same basic process is used in coal, oil, and most natural gas power plants. Even today's nuclear power plants are just "a fancy way to heat water".

Concentrating Sunshine to Produce Steam. Different Solar Thermal companies use different means to concentrate sunlight. They each cite their own advantages:
Troughs. Solar trough companies such as Skyfuel use long "trough" collectors (see picture at top, and immediately below) which rotate east-west during the day, to focus sunlight on tubes carrying hot oils. The hot oils then pass through a heat exchanger, to heat water into superheated steam.


Source: Skyfuel (Note trough rotates east to west as day progresses).

Trough supporters point to the long track record of the technology, including some 25 years of continuous production at the SEGS plants in Southern California, which has established clear performance and cost histories. Skyfuel's key innovation is to develop a highly reflective coating film known as ReflecTech(TM) which eliminates the need for expensive curved glass mirrors for the troughs.

Flat Mirrors Focusing on Compact Linear Fresnel Reflector. Another "line" approach is typified by Ausra. In this approach, flat mirrors are ground-mounted and turn to concentrate reflected sunlight upward to a Compact Llinear Fresnel Reflector, which concentrates the sunlight onto a pipe carrying water which is turned into superheated steam:



Source: Ausra
Ausra notes its technology saves costs by requring no curved mirrors, and does not use oil-to-water heat exchangers, as it uses water directly. Ausra's mirrors are also tightly packed together, harvesting more sunlight per acre of ground. Ausra CEO Bob Fishman has said, "We can get twice as much steam per acre as power tower and twice as much as trough."
Solar Power Towers. A radically different approach is the solar power tower, typified by Brightsource Energy and start-up eSolar. With the solar power tower, the solar field consists of tens of thousands of flat mirrors, each mounted with a 2-axis tracking motor to tilt the mirror in three dimensions to focus intense amounts of sunlight on a boiler mounted on the top of a tower. Superheated steam is produced in the boiler, and is fed to a ground-mounted steam turbine to generate power. See Brightsource Energy picture at top, and concept drawing below:



Brightsource Energy's Concept Drawing of Ivanpah, CA project

Proponents of the Solar Power Tower approach argue it has miles less piping and pumping, and the largest towers can operate at higher steam temperatures for better operating efficiency. They also claim higher kWh output on an annual basis because their mirrors can tilt upward to catch the lower sun in the wintertime.

Steam Plants in the Desert? While some locations may offer special opportunities to use water cooling, most solar thermal plants will be built with dry cooling. Keely Wachs of Brightsource Energy notes, "For our 410 MW Ivanpah site, the use of dry-cooling technology will reduce the projects' overall water usage by 90%, from 1000 acre/ft to a little less than 100 acre/ft annually. 100 acre/ft is roughly the equivalent of 300 homes' annual water usage. So we are producing enough energy to power 140,000 homes, while using 300 homes worth of water."


Hybrid Solar/Gas: One Power Plant With One Steam Turbine. Because Solar Thermal power plants produce superheated steam to generate electricity in a steam turbine, they can be designed to share the same steam turbine generator as a conventional natural gas power plant. See, for instance, the schematic from Solar Thermal firm Ausra, below:


Source: Ausra
Instead of relying upon a separate power plant miles down the road to guarantee grid reliability to generate electricity when the solar plant cools off, just one plant can be built, with two sources of heat -- sunlight and natural gas.
This saves on construction costs because only one steam turbine is needed instead of two. Also, much of the ancillary equipment such as controls, pumps, valves, etc. are not duplicated. Perhaps most importantly, duplicate sets of transmission lines are avoided.
Operating costs can be saved with just one team of workers, running one power plant, instead of needing two sets of skilled staff.
Finally, fuel costs for the natural gas component of operations may be saved by smoothly combining the two heat sources, gradually increasing natural gas use as the solar resource cools. This is expected to be more operationally efficient than ramping up and down a separate natural gas power plant.
This "hybridization" of solar thermal and natural gas power plants is an economical "bridge technology" approach to immediately reach fully dispatchable solar plants, providing "firm power" available to meet utility needs -- whether or not the sun is shining.
Hybrid Solar/Natural Gas "Load Following" Plants. In the ideal super-sunny locations in the desert Southwest where Solar Thermal plants are being erected, it is expected they will generate from solar, roughly 25-30% of the total kWh's they could generate if they were able to operate 24 hours a day, 365 days of the year. This percentage is referred to as a "Capacity Factor". (That's actually very good, when you consider how many hours per day the sun shines.)
Most natural gas power plants in the U.S. actually are under-utilized, operated at an average of only 42% Capacity Factor. This is because they typically serve a "load-following" function, turned on only when needed, during the higher-demand parts of the day and year. When demand for power drops to minimum levels, they are turned off because "Base Load" power plants designed to run all the time, are already running all the time to provide this minimum ("base load") demand. Most "Base Load" power plants are coal or nuclear plants.
If a "hybrid" solar/natural gas plant were also operated as a "Load Following Plant", it might also be needed only 42% of year-round time. However, if 30% of year-round time it's energy came from sunshine, the percentage of energy supplied by sunshine could be very high -- 30% over 42% -- or about 70% or more of the energy supplied.
This is good news for those seeking to cut fossil fuel emissions from power plants. Solar power could cut fossil fuel use (and hence CO2 emissions) by load-following power plants by roughly 2/3 compared to current patterns of operation for these plants.
Economics of Hybrid Solar/Natural Gas "Load Following" Plants. The relatively low annual use of a "Load Following" plant has traditionally favored power plants with low initial construction costs. Low construction costs are important when you don't use it very much.
A Combined Cycle Gas Turbine power plant today costs roughly $1,100/kW - $1,500/kW to build, one of the cheapest power plant options. However, unlike sunshine, natural gas isn't free, so total generation costs (at $7/MMBtu gas) are likely to be around 11 cents/kWh for a new natural gas "Load Following" plant in the first year of operation. (WIth no specific "carbon penalty" for fossil fuel.)
Costs for Solar Thermal plants are becoming known as several have already been completed. The Nevada One plant completed in 2007 was built for roughly $3,600/kW of capacity, using older trough technology with curved glass mirrors. With technology advancements, new proposals are now being estimated at lower costs. For instance, planned 20 MW plants in Algeria and Morrocco were recently estimated as costing only $2,500/kW to build.
Since a Hybrid Solar/Natural Gas plant will not cost as much to build as two separate plants, these cost ranges imply total generation costs of a Hybrid Solar Thermal/Natural Gas "Load Following" plant may run approximately 13 cents/kWh (after today's 30% Federal Tax Credit for solar, and assuming $7/MMBtu natural gas), in the first year of operation. Since roughly 2/3 of the Hybrid "Load Following" plant's "fuel" is sunshine, the Solar Hybrid plant has a powerful hedge against future increases in fuel costs, including increases driven by "carbon penalties" on CO2 emissions.
What happens when the 30% Solar Tax Credit expires in 2017? Solar Thermal companies argue that during this time mass production of the mirrors and other components of CSP plants will bring down costs. At the same time, fossil fuel prices and carbon penalties may increase.
Possible Costs for Hybrid Solar/Natural Gas "Baseload" Plants. Operating the same plant as a "Baseload" plant can lower overall generation costs/kWh because the same capital cost is spread over more kWh output per year.
A new natural gas power plant operated as a "Baseload" plant, for instance, may cost roughly 9 cents/kWh total generation costs, lower than when the same power plant is used only about half as much in "Load Following" mode.
Operating a Hybrid Solar/Natural Gas plant as a "Baseload" plant will spread its total capital costs over more kWh's per year, however the extra generation would come entirely from burning more natural gas. WIth the same assumptions as above but with more usage, a Hybrid Solar/Natural Gas might have total generation costs/kWh of roughly 10 cents/kWh (with no specific Carbon Penalty).
Note the two choices (each seen as One Power Plant) are near parity in total generation costs, but the Solar Hybrid plant would have less exposure to long-term increases in fossil fuel prices and carbon penalties.
The Solar Hybrid plant can also eventually further reduce its fossil fuel use by adding storage.
Adding Solar Storage. As natural gas prices rise, Hybrid Solar/Natural Gas power plants can raise the percentage of energy from sunshine by storing excess solar energy generated during daylight hours.
Storing heat instead of electricity can be very physically efficient. For instance, Skyfuel notes that heat can be stored, then used later, with a 90% efficiency of heat recovered.
Adding storage isn't cheap, however.
First, it generally will require increasing the size of the solar field so that more heat is generated during the day than would be used to generate steam during the day. Next, this extra heat would be stored in a heat storage fluid, such as molten salts. This requires heat exchangers and heat storage tanks for the molten salts.
The general consensus now seems that most Solar Thermal plants will be built with little or no molten salt storage. However, Solar Thermal plants automatically can run about 20-30 minutes on existing steam if clouds come over.
Hybridization with natural gas will make sense, and storage can be added incrementally as years go by, and it becomes important to reduce natural gas usage.
Skyfuel's William Felsher notes, "The optionality is there. You can add storage and more collectors to increase Capacity Factor later." With Solar Thermal's modular technology, "enhancements can be made incrementally."
Adding Solar to Existing Power Plants. With growth in demand flat or even negative, many utilities may currently have no need to build totally new power plants. However, adding solar to an existing power plant can help the utility meet Renewable Portfolio Standards and gain valuable operating experience with Solar Thermal.
One economical way to achieve a hybrid solar/natural gas power plant is to add a solar thermal collection field to an existing natural gas combined cycle power plant. The solar field of mirrors, lines, or troughs (or a small Solar Power Tower) would feed superheated steam into the existing steam cycles used by the power plant to generate power, as a supplemental heat source. Typically no new land is needed and transmission connections are already in place.
Savings of fuel consumption typically in the range of 10-15% may be achieved with a small solar addition. Skyfuel's FuelSaver(TM) program encourages utilities to add typically 5 - 50 MW of solar power to existing power plants, to reduce fossil fuel use and gain valuable experience with Solar Thermal power. Ausra is also encouraging solar retrofits, after reducing coal usage at an existing power plant in Australia.
A Solid Choice for Utilities. Utility managers seeking to add carbon-reduced firm electricity generation can now look to Solar Thermal as a viable choice. Decades of experience have proven the technology, and recent advances are reducing its cost.
American and overseas companies have operating power plants, and are competing for utility RFP's on utility terms that protect utilities from massive cost overruns. Announced projects for Solar Thermal plants in the U.S. already total over 6,000 MW.
The desert is blooming with power.

Duke Energy left the American Coalition for Clean Coal Energy on Tuesday over differences with "influential member companies who will not support passing climate change legislation in 2009 or 2010," the company said.
As the Senate prepares to return to Washington and resume its debate over climate change legislation, energy companies are walking a fine line. Many have dual membership in groups on opposing sides of the issue, and their attempts to play both sides are becoming increasingly apparent -- and potentially damaging to the companies and the coalitions alike.
General Electric, Alstom Power and Caterpillar are members of both the American Coalition for Clean Coal Electricity and the U.S. Climate Action Partnership. The former is a pro-coal group that opposed the recent House energy legislation, and the latter is an industry-environmentalist coalition whose recommendations provided much of the basis for the that bill, which passed the House by a vote of 219-212 in June. On a similar note, ConocoPhillips, Siemens and BP America are members of both the American Petroleum Institute (which opposed the bill) and USCAP.
These dual memberships shouldn't be surprising but could be problematic if they become more common, according to Burdett Loomis, a lobbying expert who teaches political science at the University of Kansas. "It seems to always be a mix of motivations," Loomis said. "And, as coalitions have become increasingly important on all sides of the issue, it's not surprising that there are some real or perceived conflicts."...
(2 Sept 2009)

British energy firm in the dock over Amazon project
Guy Adams, The Independent
It sounds like a recipe for environmental catastrophe: 42,000 bags of cement, 10,000 planks and a fleet of tractors being airlifted deep into the Amazon rainforest to establish whether a remote and unspoiled region of northern Peru can be turned into Latin America's next great oilfield.
It could also spell human tragedy. That, at least, is the claim before Lima's constitutional court, where a British energy company will this week stand accused of orchestrating an exploration project that will "ethnically cleanse" two of the world's last remaining uncontacted tribes.
Perenco, a London-based oil and gas firm, is being sued by Peru's 350,000-strong native Indian community over plans to bring its chainsaws, incinerators and heavy-lifting equipment into "Lot 67," a vast, secluded area of the MaraƱon basin near Peru's border with Ecuador...
(6 Sept 2009)

Arizona firm in deal to spread sun power to China
Tiffany Hsu, Los Angeles Times
The sun shines nearly everywhere, but alternative energy company First Solar Inc. is hoping those rays will be most profitable out in the far reaches of China.
The Arizona company signed a memorandum of understanding Tuesday with the city of Ordos to build a 2,000-megawatt solar photovoltaic power plant, said Michael J. Ahearn, First Solar's chairman and chief executive. The sprawling project in the Inner Mongolian desert would be the company's first in Asia and its largest outside the U.S.

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