Iran War Shows Level of World’s Dependence on Fossil Fuels: Energy Security is Now Front and Center

     One can hardly deny that the Iran War is quickly showing the degree of dependence of basically the whole world on fossil fuels. Pipelines and tankers move oil and gas all around the world in a complex web. When there is disruption, costs go up, and economies are hit. Some people will say that this is a good reason to wean ourselves off of fossil fuels, but such plans have proven to be exceedingly difficult and fundamentally unrealistic.

     Another goal strengthened by the war is that of energy security. Reliance on imports from the region is risky for the countries that are reliant and for the whole world in terms of prices. One aspect of increasing energy security is producing more solar, wind, and nuclear energy, but that is very expensive and, in the case of solar and wind, inadequate for replacing fossil fuels. Diversification of supply away from conflict zones is another strategy. China buys the most Iranian oil. They also get it at a discount due to sanctions. Thus, they benefit from sanctions against Iran as they do from sanctions against Russia. They no longer benefit from sanctions against Venezuela. Sanctions are meant to stop the flow of those products, but only succeed in slowing the trading of them and decreasing profits for the sellers. That they benefit the buyers may be tolerated, or there may be repercussions for the buyers.

     Iran has, or I should say, had a tremendous leverage over global energy trade with its attempted control over the Strait of Hormuz, a Persian Gulf marine zone which is required by international law to be open for ship traffic. By bombing commercial vessels, Iran has effectively declared war on the world, just as its protégés, the Houthis, tried to do by bombing commercial ships in the Red Sea.

     The release of petroleum reserves is an aspect of energy security that several countries, including the U.S., are undertaking to stabilize supply and markets in the short term. Some Asian governments, those most affected by the blocking of Middle Eastern supplies, are asking consumers to conserve. The International Energy Agency has called it the worst disruption to global energy supplies in history. Japan and Taiwan, both heavily dependent on oil and gas that travel through the Strait of Hormuz, are considering reopening closed nuclear plants. China has banned fuel exports to conserve supply. India is rationing LPG cooking fuel, which it gets from the Middle East. Pakistan closed schools for two weeks to conserve fuel. The Philippines has gone to a four-day work week. The article referenced below by Reuters has a pretty large error. They said China’s grid is “more than 50% powered by renewable energy sources.” As can be seen from the graph below from Our World in Data, that is not true. Its grid is powered 60% by coal, and somewhere around 15% by wind and solar, and another 15% by hydro.

    Europe’s situation is different from Asia and China, and much different from the U.S. The continent is heavily dependent on imported fossil fuels, which is one reason the development of renewables has been pursued intently. However, it has also made several blunders, such as Germany shutting nuclear plants and having to re-open highly polluting lignite coal plants after the natural gas price spikes due to the Russian invasion of Ukraine.

Reducing the share of nuclear in the overall mix of power supplies in Europe over the past 25 years "was a strategic mistake," von der Leyen said.

     The Eu is currently drafting changes to its carbon market to help make energy more affordable for consumers. Europe was once heavily dependent on relatively cheap Russian gas, especially via pipeline, but that proved a geopolitical mistake. It then diversified its supply, which included more LNG from the Middle East, which is now hurting it. While the EU’s push for clean energy may eventually increase energy security, the risk is becoming more dependent on China for needed processed minerals, magnets, and components. That is one geopolitical aspect of wind, solar, and batteries that is hard to circumvent by calling for more renewables. It simply trades one form of energy insecurity for another. Another issue to consider is that China primarily uses fossil fuels to mine and process those so-called clean energy minerals and to build the components for them. China is also not known for its environmental protection.

     The Strait of Hormuz is also a crucial shipping lane for fertilizer, which is made from natural gas. This may even affect U.S. farmers as they get ready to plant for the year in a few months. With fertilizer prices skyrocketing, the U.S. has initiated fertilizer supply diversification, with outreaches to Morocco, the world’s largest phosphate fertilizer supplier, and even Venezuela. The U.S. currently gets about 15% of its fertilizer from the Middle East. The article from Hespress EN noted that we don’t have a “strategic fertilizer supply” like we do for oil.

     

 

References:

 

Analysis - Iran war energy shock sparks global push to reduce fossil fuel dependence. Anna Hirtenstein and Kate Abnett. Reuters. March 18, 2026. Analysis - Iran war energy shock sparks global push to reduce fossil fuel dependence

Iran War Shows That Doubling Down on Fossil Fuels Is ‘Delusional,’ UN Climate Chief Says Price spikes from the war highlight the necessity of the renewable energy transition for stability and national security, the U.N. official says. Keerti Gopal. Inside Climate News. March 16, 2026. Iran War Shows That Doubling Down on Fossil Fuels Is ‘Delusional,’ UN Climate Chief Says - Inside Climate News

US looks to Morocco for more fertilizer as prices soar. Hespress EN. March 18, 2026. US looks to Morocco for more fertilizer as prices soar

 

Researchers at Oak Ridge National Laboratory are Exploring Gravity, Underground Pumped Hydro, and Compressed Air Energy Storage at Appalachian Mines and Shafts

      Researchers at Oak Ridge National Laboratory have done advanced hydrodynamic modeling, including chemical modeling, to assess the feasibility of converting abandoned coal mines into underground pumped storage hydropower (PSH) facilities for energy storage. In September 2025, I wrote about a similar analysis done to evaluate using abandoned mines for PSH. in 2023 in China’s Henan Province. A study of abandoned Appalachian coal mines for use in pumped hydro, gravity, and compressed air energy storage is ongoing.

     PSH involves pumping water up, typically when energy demand and costs are low, and letting it fall back down while powering turbines, when demand and costs are high. Using mines and mine shafts for PSH has the advantage that deeper tunnels can function as the lower reservoir, while the surface or upper shafts serve as the upper reservoir. This creates a closed-loop system that avoids the need to dam rivers or flood natural valleys.

     Compressed air storage is being considered for horizontal mine works where the air is compressed when energy demand and costs are low and depressurized to power turbines when demand and costs are high.

     Gravity energy storage involves using excess grid electricity during low-cost/low-demand times to lift extremely heavy weights toward the top of a mine shaft. When electricity demand rises, the weights are slowly lowered back down the shaft. Their descent spins a generator, producing electricity that flows back into the grid, as depicted below. Company Green Gravity is working with this method. Many of the shafts are deep enough for such systems to work.

“The weights used in these systems are often constructed from recycled steel or dense concrete to maximize mass. Because the process depends on physical motion rather than chemical reactions, the equipment can operate for decades without the performance loss seen in many lithium-ion batteries.”    

     The researchers have developed a tool to rank and grade sites that offer the best circumstances, according to the Daily Galaxy:

“The tool analyzes factors such as shaft depth, geological stability, and proximity to existing transmission lines. Mines that meet these criteria are flagged as potential candidates for future energy storage facilities.”

“Many of these sites already sit near electrical infrastructure built during the mining era. Heavy-duty power lines once supplied electricity to ventilation systems, water pumps, and underground equipment. Reusing this infrastructure could reduce the cost and time needed to connect storage systems to the grid.”

“The research now underway at Oak Ridge National Laboratory focuses on identifying which abandoned coal mines meet the structural and geological requirements for underground storage systems. The laboratory maintains a national database listing mine sites that satisfy the depth, stability, and infrastructure conditions needed for gravity-based and underground energy storage.”

 

  

References:

 

500,000 abandoned US coal mines to become giant underground water batteries with a new storage method. Arezki Amiri. Daily Galaxy. March 12, 2026. 500,000 abandoned US coal mines to become giant underground water batteries with a new storage method

Transforming abandoned coal mines into energy storage solutions: Modeling capabilities evaluate sites for underground pumped storage hydropower. Thien D. Nguyen. Oak Ridge National Laboratory. March 3, 2026. Transforming abandoned coal mines into energy storage solutions

Koloma’s Natural Hydrogen Project Along Midcontinent Rift Zone in Iowa: Wells Show Hydrogen: Next is Confirmation of Trapping Structural Closure

   

     Koloma, based in Denver, Colorado, and Columbus, Ohio, is currently drilling and testing for natural hydrogen, also known as geologic hydrogen,  along the Mid-Continent Rift System in Iowa. Along with exploration along the extensive Mod-Continent Rift System, which traverses several states, the company expanded into Australia in February 2025. In late 2024, the company announced an exclusive partnership with Xcalibur Smart Mapping for aid in exploration. Also in late 2024, they partnered with Mitsubishi Heavy Industries and Japan’s Osaka Gas. Both of those companies have extensive experience with hydrogen. They also developed a partnership in 2025 with the government of the Philippines.

     Koloma has a nice series of animations (click link, then scroll down for animations) about how natural hydrogen is formed and how it is being developed, with the steps as follows: emplacement, burial, deformation, infiltration, serpentinization, formation of the hydrogen gas trap, regional airborne geophysical surveys, zoomed-in geophysical surveys (mainly seismic), and finally accessing the hydrogen through drilling. Below is a summary of Koloma’s steps in exploration.

     The company utilizes several types of geophysical surveys, similar to the oil & gas and mineral industries. These include airborne surveys such as aeromagnetic surveys and gravity surveys, seismic surveys including passive acoustic and active acoustic surveys, and magnetotellurics.

     An article for Azo Clean Tech explains the formation of natural hydrogen.

“Geologic hydrogen is an inorganic resource generated by continuous geochemical processes, distinguishing it from finite fossil fuels. The primary formation mechanism is serpentinization, a chemical reaction that occurs when water interacts with iron-rich rocks such as olivine and pyroxene at temperatures between 200–300 °C.”

“In this process, the water oxidizes the iron minerals and releases hydrogen gas (H₂). These conditions are often found in specific geological settings, such as mid-continent rift systems and ophiolites.”

“A secondary generation pathway is radiolysis, where natural radiation from radioactive elements in the Earth's crust splits water (H₂O) molecules into hydrogen and oxygen. Alpha, beta, and gamma radiation from radioactive elements interact with groundwater, producing hydrogen and oxygen gases continuously in radioactive formations.”

     As of mid-February, Koloma has drilled four wells in the Iowa portion of the Mid-Continent Rift System. The basement rock in the region is basalt, which is favorable for natural hydrogen formation. From what I could gather, drilling has taken place in Northwest-Central Iowa at the Vincent Dome, presumably a possible trap with structural four-way closure, in Webster County. The depth to the Precambrian basaltic basement is just a few thousand feet. However, according  to an Iowa Geological Survey geologist, the total depths are currently proprietary, and he noted:

“The wells that (hydrogen exploration companies) are drilling now are basically the second deepest in the state,” Clark said. “So, we’re talking about very deep wells and an awful lot of information.”

     If that is the case, they are likely drilling pretty far into the basalt.

     Todd Bush of Decarbonfuse notes the interest in exploring for natural hydrogen in Iowa:

“Ryan Clark of the Iowa Geological Survey confirmed that about half a dozen companies have expressed interest in hydrogen exploration in the state. Most have requested basalt core samples, with 11 of 24 available samples located in the Vincent dome region.”

     Below, Bush notes some details about Koloma.

     According to NatH2Investing.org:

“Iowa lawmakers are considering Senate File 546, which would establish permitting, pooling, royalty, and confidentiality rules for hydrogen extraction.”

     The potential and presence of natural hydrogen have been established in Iowa, as it has in Minnesota, Kansas, and Nebraska, but the next thing to determine is trapping via structural closure.

     The USGS published a U.S. map of the potential for natural hydrogen for the first time in January 2025. The map is shown below and shows many potentially prospective areas. Factors for development include depth, properties of basement rocks, presence of olivine-rich rocks, groundwater infiltration to induce serpentinization, and four-way structural closure.

     According to an interview with Koloma CEO Pete Johnson:

“From a market standpoint, there’s probably no better place on earth to discover more hydrogen than the Corn Belt in the United States where you’ve got massive fertilizer demand,” Johnson said.

“Potential hydrogen extracted in Iowa could have other uses, like generating electricity or fueling vehicles, if the infrastructure and demand were put in place. But Johnson said the immediate demand, especially in Iowa, is for domestically produced anhydrous ammonia.”

     Development of natural hydrogen could also include injecting water to stimulate increased serpentinization so that hydrogen continues to be generated or possibly is generated at higher quantities. If the resource was adequate and this could be done, it could bypass the need for structural geologic traps.

     Below are some depictions of Koloma’s Columbus, Ohio lab, where they house and analyze solid, liquid, and gas samples associated with natural hydrogen exploration.

     Incidentally, I once had a dream about working on a drilling project to test a geologic structure in Iowa, which I found odd, since there is very little oil & gas found in the state, and none is commercial.

 

 

References:

 

Powering the Future with Natural Hydrogen. Koloma. Home - Koloma

Koloma Partners with Mitsubishi Heavy Industries and Osaka Gas to Advance Geologic Hydrogen Exploration. Michelle Brkljacic. October 15, 2024. Koloma. Koloma Partners with Mitsubishi Heavy Industries and Osaka Gas to Advance Geologic Hydrogen Exploration - Koloma

Uses for Natural Hydrogen: How Natural Hydrogen is Formed. Koloma. Natural Hydrogen - Koloma

How One Company is Removing Barriers to Clean, Natural Hydrogen Production. Abdul Ahad Nazakat. Reviewed by Laura Thomson. Azo Clean Tech. June 20, 2025. Unlocking Clean Hydrogen: Koloma's Groundbreaking Technology

Iowa Moves to Regulate Natural Hydrogen as Koloma Drills Four Wells into Midcontinent Rift Potential. NatH2Investing.com. February 13, 2026. Iowa Moves to Regulate Natural Hydrogen as Koloma Drills Four Wells into Midcontinent Rift Potential - NatH2investing

Iowa's Hydrogen Rush: Can Koloma Strike Gold Before Rules Kick In? Todd Bush. Decarbonfuse. February 23, 2026. Iowa's Hydrogen Rush: Can Koloma Strike Gold Before | decarbonfuse.com

GEOLOGY AND GROUND-WATER RESOURCESOF WEBSTER COUNTY, IOWA. William E. Hale. U. S. Geological Survey. 1955. 2014-10-23_09-10-56_wsb-4.pdf

Mapping the Future of Energy: Hydrogen Reserves in the U.S. Todd Bush. Decarbonfuse. January 22, 2025. Mapping the Future of Energy: Hydrogen Reserves in | decarbonfuse.com

Russian Attack on Dniester Hydroelectric Power Plant Leaks “Technical Oils” into the Dniester River, Threatening Drinking Water Quality

     Bombing emits pollution, usually air pollution, with the large amounts of smoke from the combustion of the weapons' propulsion systems, as well as the smoke, debris, and particulate pollution emitted from the explosions. The illnesses from the 911 attack cleanup are a clear example that such emissions can be very dangerous, both immediately and over time. The recent bombing of an oil storage facility in Iran by Israeli jets made a residual oily rain that coated the area. This is no doubt harmful. Other types of bombings can release contaminants into waterways, which is what happened recently when Russia bombed a hydroelectric plant in Ukraine on the Dniester River.

     A Russian attack on the Dniester Hydroelectric Power Plant caused oil products to be spilled into the river, creating an environmental threat to the adjacent country of Moldova. They deployed the army and water testing experts and appealed to the European Union for assistance. “Technical oils” were leaked into the river. Teams from Moldova, Romania, and Ukraine, as well as units of the Moldovan National Army, were dispatched to contain oil slicks and to perform water testing. Technical oils used at hydroelectric plants may include lubricants, gear oils, greases, hydraulic oils, and other special lubricants. 

     I recently wrote a post about sabotage that resulted in a leak of approximately 4,900 gallons of non-PBC transformer oil into a creek in West Virginia, and the extensive containment, water testing, and water system purging required to mitigate the incident. Something similar will be required here. 

     According to RBC Ukraine, the Moldovan Prime Minister noted:

"We are requesting support from our European partners for the swift mobilization of specialist teams and the necessary equipment to operate on the Dniester. This includes equipment for capturing, containing, and removing oil pollution from the water, as well as mobile stations for water quality testing," he said.

“Environment Minister Gheorghe Hajder warned that settlements in northern Moldova could be left without a water supply. A yellow-level alert has already been declared in the area of Naslavcea village.”

     They also noted that the Dniester River is a major source of drinking water for two major cities:

“The Dniester River is one of the key sources of water supply for the cities of Odesa (Ukraine) and Chisinau (Republic of Moldova), and the contamination poses a serious threat to the population and aquatic ecosystems.”

     The bombing of civilian energy sites, such as the hydroelectric plant on the Dniester, is a clear violation of the Geneva Convention. Russia excels in committing war crimes and crimes against humanity. While the U.S. leadership has complained about so-called “rules of engagement,” for the most part, it follows them.

     According to Wikipedia:

“The Dnister HES (Ukrainian: Дністровська ГЕС, romanized: Dnistrovska HES) is a 702 MW hydroelectric power station at the Dnister near Novodnistrovsk, Ukraine. It was launched in commercial operation in 1981. Both Dnister Hydroelectric Station and Dniester Pumped Storage Power Station are operated by Ukrhydroenergo and compose the Dnister.” Cascade of power stations. Dnister HES-2 is located downstream and has a 40.8 MW capacity.”

     A Microsoft CoPilot AI summary notes:

“The Dniester Hydroelectric Plant plays a crucial role in Ukraine's energy infrastructure, contributing significantly to the national grid. Its operational history, capacity, and recent developments highlight its importance and the challenges it faces in the current geopolitical climate.”  

     Addendum March 17, 2026:

"The Moldovan Ministry of Foreign Affairs summoned Oleg Ozerov, Russia's ambassador to Moldova, on 17 March and handed him a note of protest in connection with a Russian strike that caused a leak of petroleum products into the Dniester River."

     As shown below, he was also presented with a bottle of water collected from the river.

"The Republic of Moldova strongly condemns this attack, which caused leaks of petroleum products into the Dniester River, creating major risks for the environment and security of the water supply of the Republic of Moldova. The Dniester River supplies water to about 80% of the country's population and 98% of residents of Chişinău," the statement said."

References:

 

Russia poisons river in two countries: Ukraine prepares appeal to UN. Kateryna Shkarlat. RBC Ukraine. March 13, 2026. Russia poisons river in two countries: Ukraine prepares appeal to UN

Dniester Hydroelectric Station. Wikipedia. Dniester Hydroelectric Station - Wikipedia

Moldovan Foreign Ministry summoned Russian representative and handed him bottle of Dniester water – photo. Khrystyna Bondarieva, STANISLAV POHORILOV. Ukrainska Pravda. March 17, 2026. Moldovan Foreign Ministry summoned Russian representative and handed him bottle of Dniester water – photo

 

The EU is Right; Trump Should Not Have Waived Russian Oil Sanctions: They Are Bearing the Brunt of Iran War-Induced High Oil & Gas Prices and Still Oppose Appeasing Putin

  

 

    While I agree that the Iranian regime is horrible, its people deserve better, and we need to do something, the war is still quite risky. That risk is higher for people and countries in the region and for those more directly affected by the closing of the Strait of Hormuz and the drone targeting of commercial ships. China was proactive in stocking up on oil and refined products before the war began. Both Trump and the Iranian regime are hoping that Iranian oil sales to China can continue, although that could change if there is a battle for Kharg Island that ends with the bombing of oil facilities, which have so far been spared.

     Europe imports oil and LNG from the Persian Gulf region and is affected by the change in availability. Germany, France, Norway, and the UK have expressed dismay about Trump’s unilateral move to temporarily ease sanctions on Russian oil to ease the energy crisis.

Merz said: “We believe it is wrong to ease the sanctions. Unfortunately, Russia continues to show no willingness to negotiate. We will therefore, and must, further increase the pressure on Moscow.”

     Russia is actually aiding the Iranian regime with intelligence and working against the U.S. in that respect. Putin is perhaps glad that he is being useful for the world economy, but he is likely gladder to be adding a few billion or perhaps a few tens of billions to Russian war coffers by selling more oil and at a higher price. Now, there can be a few more months of meat-grinder assaults to gain a few meters of war-torn ground.

The US was “effectively acknowledging the obvious: without Russian oil, the global energy market cannot remain stable”, Russia’s economic envoy, Kirill Dmitriev, wrote on Telegram.

     That is not really true, but with supplies constrained, it should help to lower prices a bit. It is ironic and probably highly annoying to Ukraine that the U.S. would accept Russia’s help in alleviating oil prices but decline Ukraine’s offer to help with defense against Shahed drones, as I just read. Other countries in the region have sought Ukraine’s help in this regard. It was only a month previously that Trump had said India agreed not to buy Russian oil, and he stated that this would end the Ukraine war. The reprieve is only for 30 days, but it will be enough for Russia to reload a bit. Zelensky predicts it will add about $10 billion to Russian war coffers.

     The International Energy Agency’s plan to release 400 million barrels of oil from reserves, including 172 barrels from the U.S. Strategic Petroleum Reserve (SPR), should also help to ease global oil prices. The Waiver on Russian sales to India involves about 120-130 million barrels of oil that is currently at sea on ghost fleet tankers. Ghost fleet tankers continue to be interdicted and seized in European waters. Only a trickle of the previously estimated 20 million barrels per day is getting through the Strait at present.

"Six members of the G7 expressed a very clear opinion that this was not the right signal. We then learned this morning that the American government has apparently decided otherwise," ​Merz told a press conference in Norway.

"Again, we believe this is wrong. There is currently a price problem but not a quantity problem. And therefore, I would like to know ​what other motives led the American government to make this decision," he said.

     According to data analytics firm Vortexa, around 7.3 million barrels of Russia-originated oil are in floating storage, while 148.6 million barrels are in vessels in transit.

     Up to 420,000 metric tons of diesel and gasoil are currently in floating storage and could be available for sale in the market, according to LSEG ship-tracking data and trade sources.

     The Russian waiver applies to oil loaded on vessels at sea and is set to expire on April 11.

     The U.S. downplayed the importance of waiving the sanctioned Russian oil:

In a social media post, Treasury Secretary Scott Bessent said, "this narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction."

        It was pointed out that the gains of the past year in pressuring Russia’s oil sales will be lost by the waiving of sanctions for even a month. This is due to the higher prices on the market now – about $30 higher than before the war began, adding about $150 million per day. Both Democrats and some Republicans in the U.S. Congress criticized the decisions to allow India to buy sanctioned Russian oil. Others fear the reprieve will be extended.

 

References:

 

US temporarily lifts sanctions on Russian oil transported by tankers. Ivan Diakonov. Ukrainska Pravda. March 12, 2026. US temporarily lifts sanctions on Russian oil transported by tankers

European allies riled as US loosens Russia oil sanctions. John Irish, Andreas Rinke and Dmitry Antonov. Reuters. March 13, 2026. European allies riled as US loosens Russia oil sanctions | Reuters

Europe rebukes US for temporarily lifting sanctions on Russian oil: German chancellor says decision is wrong and that pressure on Putin over Ukraine war should be increased. Peter Beaumont, Callum Jones, and Kate Connolly. The Guardian. March 13, 2026. Europe rebukes US for temporarily lifting sanctions on Russian oil | US-Israel war on Iran | The Guardian 

Think Russian oil will calm the Iran conflict’s supply panic? Here’s what the math reveals. Myra P. Saefong. Market Watch. March 13, 2026. Think Russian oil will calm the Iran conflict’s supply panic? Here’s what the math reveals.

The plan behind Russian oil sanctions and why a reversal faces backlash. Keaton Peters. Straight arrow News. March 13, 2026. The plan behind Russian oil sanctions and why a reversal faces backlash

Rosebank Oil Field and Jackdaw Gas Field in the UK North Sea Should Be Producing Oil and Gas: Economic and Energy Security Benefits Should Outweigh Emissions Concerns

      Concerns about emissions and climate have led to governments essentially ‘shooting themselves in the foot’ by avoiding the development of their domestic resources. In many cases, the result of such policies has included higher energy and electricity costs, de-industrialization and loss of competitiveness, and even inadvertently increased emissions. Resources close to home and within the country are generally cheaper to develop and transport. They generate other economic benefits, including jobs, tax revenue, and cheaper feedstocks for industry. They also offer energy security and can help absorb shocks to the global energy system. A case in point is the UK’s refusal to open up drilling and production at an oil field and a gas field in the Shetland Island region of the North Sea. The fields are already discovered, assessed, and ready to be developed.

     The UK’s Energy Secretary Ed Miliband is in the hot seat now for keeping a drilling ban in place in the North Sea as well as the so-called windfall tax, which makes taxation excessive for oil & gas companies. With the war in Iran and the Middle East, there is reason to argue that this ban and the high taxes, which resulted from high oil and gas prices during the early parts of the Russian invasion of Ukraine, are not needed and counterproductive to supplying the region with affordable oil & gas. I recall reading that Trump urged Starmer to open drilling back up in the UK North Sea. Obviously, Europe is short of oil & gas supply, and not developing its own ready-to-develop resources is not smart. It is a no-brainer.

     The Chairman of Ineos, industrial magnate Sir Jim Ratcliffe, urged Miliband to approve the Rosebank and Jackdaw fields so they can be further developed. The CEO noted:

“Without reliable energy in a conflict situation, running hospitals, transportation, manufacturing and basic essentials like heating and lighting are jeopardised.”

“Our strategic defence capability is totally undermined just when we need it most. Without a reliable supply of energy, the country is crippled.”

     Sir Jim stated the obvious when he said Britain should produce its own oil & gas rather than import it, even if only for energy security reasons.

     According to The Telegraph:

“Offshore Energies UK, the trade body for the UK oil and gas industry, has stepped up its campaign to replace the windfall tax. It says the 78pc flat rate total tax imposed on UK oil and gas profits is driving companies away and destroying 1,000 jobs a month.”

“Sir Jim also called for more investment in the UK’s gas storage capacity, a cause long advocated by British Gas-owner Centrica. The Telegraph revealed last week that Britain had as little as two days of gas stored.”

     The Rosebank field is the largest undeveloped oil and gas field in British waters. It is estimated to contain around 300 million barrels of oil. Jackdaw, 150 miles east of Aberdeen, is a gas field that alone could make up 6-7% of the UK’s natural gas production. However, the UK still imports most of its natural gas. The Rosebank Field has begun development, and the Jackdaw Field is already partially drilled. Norwegian State Oil Company Equinor was granted permission to drill by a previous Conservative government, but that decision was overturned by a Scottish court in January based on a claim that the carbon emissions of the projects were not accounted for correctly. Equinor resubmitted an application to produce oil and gas at Rosebank last October. Rosebank and Jackdaw are already licensed fields, but they need the consent of the Energy Secretary.

     Existing fields in the UK North Sea are in decline and could be producing less than half of what they are now by 2030. Choosing to import rather than produce degrades energy security and makes the country vulnerable to geopolitically induced supply shocks, as is now occurring. Sir Jim also emphasized that Norway has been drilling and developing more fields and supplies in its part of the North Sea, while the UK has banned drilling and enacted excessive, unnecessary taxes on the industry.

     Sir Jim went on to quip:

“Unsurprisingly, investment is fleeing. If Britain is serious about energy security and jobs, the windfall tax must be scrapped and replaced with a stable, price-triggered system that encourages companies to invest here rather than somewhere else.”

“Net zero ambitions are good goals but should sit firmly in second place. The UK should maximise energy extraction from the North Sea alongside nuclear new builds and additional wind turbines. These are not mutually exclusive as the US has shown. We must not let ideology obscure common sense and jeopardise national security.”

“Energy security must come before rigid net zero targets and the same applies to the rest of Europe.”

     Make UK, the manufacturers’ lobby group, is also working to get Miliband to change policy. They note that the issue of de-industrialization is already in full swing, and the current policies threaten to accelerate that de-industrialization.

     Environmentalist detractors pointed out that some of the oil produced might be exported, and the gas production is not enough to matter much since most gas consumed in the UK is imported.

“Tessa Khan, the executive director at Uplift, said: “If the conflict in Iran and soaring oil prices isn’t enough to remind us of the financial pain from remaining hooked on fossil fuels, Rosebank is a rotten deal for the UK. The rig was made in Dubai, not Scotland. The oil belongs in part to the Norwegians, who will take most of the profits.”

“It will do nothing to lower energy bills – it is predominantly oil for export – and the tiny amount of gas it contains is enough to reduce the UK’s import dependency by just 1pc. It is oil for profit, at our expense.”

     Miliband should act to open these fields without further delay. They should work out the carbon emissions later. It should also be noted that Equinor has among the highest environmental and emissions standards anywhere in the oil and gas world. 

 

References:

 

Miliband urged to open Britain’s biggest oil field to avoid energy crisis. Eir Nolsoe and Jonathan Leake. The Telegraph. March 13, 2026. Miliband urged to open Britain’s biggest oil field to avoid energy crisis

Iran war is a wake-up call for Miliband, says Ratcliffe: Ineos boss urges Energy Secretary to reverse his decision to block North Sea gas development. Jonathan Leake and Tim Wallace. The Telegraph. March 12, 2026. Iran war is a wake-up call for Ed Miliband, says Sir Jim Ratcliffe

Nevada Governor Says California’s Emissions Regulations Affect Regional Fuel Availability and Cost

     Nevada Gov. Joe Lombardo recently stated that California’s proposed climate program has the potential to disrupt fuel supplies across the region, including in his state. Nevada buys refined oil from California and is thus compelled to pay higher prices due to California’s air quality regulations, which exceed those of other states. In a letter to Governor Gavin Newsom, Lombardo wrote:

"I write to you now to express concerns regarding the California Air Resources Board's (CARB) draft Cap-and-Invest regulation and raise awareness around the significant implications it may have for fuel supply stability across the Western United States, particularly for Nevada."

     He noted that Nevada was structurally dependent on California’s refineries for gasoline, diesel, and jet fuel, and there was not a scalable alternative source available.  

"As a result, policy decisions that materially affect refinery operations in your state directly and immediately impact fuel availability, pricing, and economic stability in Nevada," he wrote.

     He also noted that even before the rule, several important refineries in California had shut down, seemingly for good, due to regulatory pressures. The result is likely to be very high fuel prices for Californians, Nevadans, and those living in other states dependent on California’s refineries for supply. Other possibilities include marine imports.

"Increased reliance on marine imports would expose our state and residents to international supply disruptions, port congestion, weather events, and geopolitical instability."

     This week’s gasoline prices were $5.336 a gallon in California, compared with $4.363 in Nevada and a national average of $3.578.

He urged Newsom's administration to "carefully evaluate the regional consequences of the draft Cap-and-Invest regulation before final adoption."

"My request is straightforward: any major policy change that could alter refinery economics in California must account for the real-world consequences to neighboring states that depend on that infrastructure," Lombardo wrote.

"Fuel affordability and availability are foundational to economic stability, interstate commerce, and national security across the Southwest. Given additional tension in the Middle East, the situation is particularly pressing," he added.

     This shows without a shadow of a doubt that climate policies hurt affordability for Americans. The California Air Resources Board (CARB), which proposed the regulations, does have some justification in terms of providing slightly better air quality for Californians. However, fuel supply stability may increase for them as well as those in nearby states.

 

      

References:

 

Nevada Gov.: Calif. emissions plan risks regional fuel supply. Theodore Bunker. Newsmax. March 11, 2026. Nevada Gov.: Calif. emissions plan risks regional fuel supply

Light and Heavy REEs: Value of Rare Earth Ores Depends on Total REEs, the Mix, and Concentrations: Graphic from Alba Mineral Resources

      I caught a LinkedIn post from Mineral Alba Resources that describes how the value of rare earth deposits depends on the composition of the ore, whether the ore is made up of mainly light REEs or mainly heavy REEs, the mix, and the concentration of each.

     According to Alba Mineral Resources:

“Light rare earth elements (LREEs) and heavy rare earth elements (HREEs) differ in how they occur in nature, how they concentrate into different minerals, and what they are used for. Minerals such as bastnäsite and monazite are typically LREE rich (for example cerium, lanthanum, neodymium, praseodymium), while xenotime and related phases can concentrate HREEs such as dysprosium, terbium and yttrium.”

“This matters because a deposit’s potential value, processing route, and end use relevance depend heavily on its LREE vs HREE profile. It is not just about total REE. It is about which end of the spectrum dominates, because that influences everything from mineralogy and metallurgy to market applications.”

     LREE ores include Bastnasite and Monazite. HREE ores include Xenotime. Below, they explain some important uses of LREEs and HREEs and why LREE vs. HREE distributions can be used to help understand the geology of emplacement as well as later changes that may have affected concentrations.

“A simple example: neodymium (LREE) is a key ingredient in permanent magnets used in EV motors and wind turbines, while dysprosium (HREE) helps those magnets keep performance at higher temperatures. So the proportion and distribution of LREEs vs HREEs can change the story of a project.”

“From an exploration perspective, this split is also a geological clue. Variations in LREE and HREE distribution can help the team interpret how the system formed and whether later stage fluids may have modified or enriched certain zones. In short, the light vs heavy distinction is a core part of responsible rare earth exploration, because it keeps interpretation grounded in mineralogy, process, and context.”

     The first graphic below is from Alba Mineral Resources, and the second one of the periodic table is from Geology.com.

    

References:

 

Light vs. Heavy Rare Earth. Why It matters. Alba Mineral Resources PLC. (24) Alba Mineral Resources PLC: Posts | LinkedIn

REE - Rare Earth Elements and their Uses: The demand for rare earth elements has grown rapidly, but their occurrence in minable deposits is limited. Hobart M. King, PhD. Geology.com. REE - Rare Earth Elements - Metals, Minerals, Mining, Uses

New Study Claims Some Plug-In Hybrids Use More Fuel Than Claimed: Cheaper PHEVs Used Less Fuel Than More Expensive Ones

   

     German research organization, the Fraunhofer Institute, recently put out a report that claims that some plug-in hybrid vehicles (PHEVs) use more fuel than they claim to use. The study utilized data from about 1 million PHEVs from 2021 to 2023.

     According to an article in This is Money

“Fraunhofer Institute found real-world fuel consumption is 5.9 litres/100km - or 48mpg - which is around 300 per cent above the type-approval consumption.”

“In fact, PHEVs show fuel consumption on the road equivalent to conventional internal combustion cars.”

“Vehicle makers had claimed that plug-in hybrids use hardly any fuel when in electric mode, but the study has shown that this might not be the case.”

     Having owned a PHEV for approximately one year in 2019/2020, I can say quite definitively that the study does not reflect my experience at all. That, however, does not dispute the study, which shows that different PHEVs can have vastly different fuel economy and subsequent fuel consumption.

     A previous analysis by the UK’s Energy and Climate Intelligence Unit (ECIU), an electric vehicle-backing research organization, as reported by This is Money, suggested that PHEV owners were paying twice as much to fuel their vehicles with gasoline and electricity as they were led to believe. The study also noted that PHEV sales have skyrocketed in the UK, increasing by 34% and outpacing new diesel vehicles by more than double. See the second graph below. The study claims that PHEV owners typically don't charge their cars regularly enough to make the most of the electric benefits. However, I can clearly say that was not the case with me.

     The new study by Fraunhofer Institute concludes that higher-than-stated fuel usage is due to PHEVs switching between modes - the electric motors and the combustion engine. The study suggests that the gasoline engine engages more in “discharge mode” than previously believed.

“It turns out that many cheaper PHEVs from brands like Kia, Toyota, Ford and Renault have the lowest fuel consumption.”

“These plug-in hybrids typically used under one litre per 100km - the equivalent to a staggering 282mpg.”

“On the other hand, Porsche hybrids consume far more fuel - around seven litres per 100km (roughly 40mpg).”

     I had a Kia and calculated my avg mpg somewhere around 75mpg due to the PHEV range of 26 miles and my typical commute, which was about 45-55 miles round-trip. With a shorter commute or a bigger range, I could increase that to about 120mpg. I was lucky enough to have a Level 2 charger installed at home. Others may be compelled to charge at public charging stations, which have higher costs. It may also be inconvenient to charge them at the right times, which may hinder keeping them charged optimally.

     The findings from the report have echoed calls for reforms in the EU and UK, including that PHEV users should be shown the proportion of electric driving transparently on the display ('display transparency') or be forced to charge at least every 500km (311 miles) to reduce their emissions impact. Another policy goal is to get lab-based emissions testing results to better match real-world driving conditions. Of course, if PHEV owners are not charging their vehicles enough due to inconvenience or whatever, then that is their own problem and should not be reflected in policy.

 

  

 

References:

 

New study claims plug-in hybrid cars guzzle three times more fuel than advertised. Freda Lewis-Stempel. This Is Money. February 19, 2026. New study claims plug-in hybrid cars guzzle three times more fuel than advertised

Plug-in hybrid cars dubbed a 'scandal' by think tank due to fuel bills double what drivers are told. Rob Hull. This is Money. January 26, 2026. Plug-in hybrid cars dubbed a 'scandal' by think tank due to fuel bills double what drivers are told | This is Money