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When I was approached to write an energy blog my first thought was, “What can I say that isn’t already being discussed on numerous other websites.”  Then after some reflection, reality set in. There is much to be said about energy!  We need to get the energy message out to the industry.  It seems as though the message isn’t getting to the right people, that is, the decision makers, upper management  . . . to be more specific, the money people.  Without upper management involvement and active participation, we will never achieve the level of energy efficiency necessary to meet the new government standards as outlined in the Superior Energy Performance Program (SEP).

  In this blog, we will review current pumping system design practices, various industry standards installation practices and the most important topic, why we continue specifying, designing and building energy inefficient systems. 

  Let’s do a reality check.  I believe we all agree there is an energy crisis. You are faced with this reality every time you pull into a gas station.  Now for the wakeup call  . . .  the power industry is in a similar crisis and surprisingly has only recently made front page news.  Yes, we have seen bits and pieces about nuclear power, wind and coal plants here and there.  In the last 6 months a number of one-hour segments on the state of the power industry have been televised.  Why did it take so long to make public what the power industry knew was coming for years?  News flash, the power utilities have been sending out signals for years.  Power generators have made every effort to meet future power demands. Unfortunately they have been stonewalled by special interest groups throwing up road blocks for everything from power transmission lines to nuclear power. 

  At our current rate, power demands are expected to exceed capacity by approximately 30 percent within 5 years.  In addition, a majority of the plants in the US have reached the end of useful life.  From 2002 to 2025, 62 gigawatts of capacity will most likely be retired, accounting for nearly all old fossil-fired plants that are not competitive with newer types of fossil-fired plants.  

The electric power industry faces a situation in which significant investments are needed, and significant rate increases will be necessary to finance them.  Fuel costs will also play into the equation. The price of coal—which provides fuel to 48 percent of power plants in the U.S. – has doubled since last year.  Natural gas prices have increased 50 percent in the last year alone.  Now add in the raw material cost to build new plants.  Remember, the utilities have been trying to add capacity for years. With the construction activity in China and India, the cost to build a power plant has also increased.  What’s the old expression, “He who hesitates is lost?”  In this case we are all losers, everyone in the U.S. will suffer financially for the mess created by a few. 

I would imagine you have already heard this tale of woe, so let’s cut to the chase and talk about solutions, or better yet, survival.  What can we do to prosper in today’s changing business environment?  The first thing we need to do is accept change. We can no longer conduct business as usual, which brings us to the primary purpose of this energy blog. 

Change must be a four letter word in the industrial sector.  I can’t tell you how many times I have heard the expression “We’ve always done it that way, why should we change?”     Unfortunately I cannot put into words the individuals’ facial expression that go along with this statement.

  I believe we have made a good case for change, specifically more energy efficient solutions.  Yes, energy efficiency, the number one fuel source.  This is not the “silver bullet,” but it will minimize the impact of rising energy costs.  Companies that fail to implement energy saving measures will most likely not survive the next decade.  One thing you can count on is higher energy cost, some power utilities will have to raise rates as much as 115 percent in order to pay higher fuel cost, build new plants and recover environmental fees.  Industry experts anticipate the power generation industry will be in a state of flux for at least the next 15 to 20 years.   

  What can we do to minimize the impact on our companies’ bottom line?  I’ll throw out a few bones that you can chew on until next week’s blog.

                       Pumping Systems Are Energy Intensive

 Industry Type         Pump Energy (% Total Motor Energy usage)

Petroleum                                     60%

Forest Products                          30%

Chemicals                                     25%

Food Processing                         20%

Primary Metals                            10 %

A 200hp Pump $70,000 / Yr Electrical Energy

Energy Savings Help Justify Reliability Projects 

   As with any blog, we fully expect some lively comments – the more the better.  Feedback is a good indicator we are making an impact.  Whether you agree with our assessment of the energy crisis is not the issue. The issue is energy conservation. 

William C Livoti

Baldor Electric

Reference:  MECS 1994, Bureau of Economic Analysis 1997 Census of Manufacturers, 1993

Hydraulic Institute, Pump System Optimization, Opportunities to Improve Life Cycle Performance  

This entry was posted on Sunday, June 22nd, 2008 at 12:13 pm and is filed under Pump Industry News, William Livoti Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.