Various provisions in the federal income tax treat energy producers more or less favorably than other businesses. By changing the after-tax rate of return on investments in the energy sector, the Tax Code may alter the long-run supply of specific types of energy.
In general, the income of all participants in the energy sector is subject to income tax of one form or another. Two notable exceptions arise in the generation and sale of electricity. Governmental agencies (such as the Tennessee Valley Authority, the Bonneville Power Administration, and municipally owned power companies) account for approximately 14 percent of the electricity sold in the United States. (more…)
Geothermal wells need to undergo a test program before they are used. This is so that the baseline conditions of both the wells and the geothermal aquifers that they tap can be determined. This baseline data are critical because all future information is compared against them.
After drilling has been completed and before the initial discharge, the well downhole conditions are measured. The temperature and pressure are measured by using a clockwork Kuster gauge or electronic logging tools. Standard practice is to initially do an injection (or completion) test, that is, sometime at a series of flows, where the temperature, pressure, and possibly flows using a spinner tool are measured at intervals down the open hole section of the well. (more…)
Some of alternative fuel sources are by no means new. For centuries people have harnessed the power of running water for a variety of needs, particularly for agriculture or farming. Water wheels were constructed in the Middle East, Greece, and China thousands of years ago, and they were common fixtures on the farms of Europe by the Middle Ages. In the early 21st century hydroelectric dam, which generate electricity from the power of rivers, provide about 9 % of the electricity in the United States. Worldwide, there are about 40,000 such dams. (more…)
