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We can help you with more than just property and casualty risk reviews and insurance placement in our 5 specialized practice areas.

We also work in areas as diverse as trade credit, surety, political risk, and environmental risk transfer. And if you have employee benefit issues or need KEYMAN LIFE we would also be pleased to guide you in finding solutions.

If it involves risk we will help you find what is needed.

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Posts Tagged ‘risk transfer’

What’s in the price of a gallon of gasoline?

Friday, November 19th, 2010

The national average retail price of a gallon of regular gasoline in September 2010 was $2.71. There are four main components that make up the retail price of a gallon of gasoline:

  1. Crude Oil: The cost of crude oil as a share of the retail price varies over time and among regions of the country. In September 2010, refiners paid an average of about $76 per barrel of crude oil, which accounted for about 67% of the national average retail price of a gallon of regular grade gasoline.
  2. Refining: Refining costs and profits were 7% of the retail price of gasoline in September 2010.
  3. Distribution & Marketing: Distribution, marketing, and retail dealer costs and profits made up roughly 11% of the retail price of gasoline in September 2010.
  4. Taxes: Federal, State, and local government taxes (not including county and local taxes) accounted for about 15% of the national average retail price of regular gasoline in September 2010. Federal excise taxes were 18.4 cents per gallon and State excise taxes averaged 22.44 cents per gallon.

Given the squeeze between surging economies in the East, the West’s continued heavy demand, and the obvious limits to supply growth worldwide, we will see changes to these input costs in years to come.  And pricing cycles will also continue and create periodic alternating malaise and panic further adding to the confusion. If you have questions about these changes and how to deal with the risk and risk transfer impacts on your business, please ask us.

Meridian is a highly dynamic specialized insurance consulting group with offices in Boston, MA, Newport, RI and Brookfield, CT. We specialize in risk management and risk transfer for traditional and alternative energy companies. We are members of the International Energy Credit Association and the Connecticut Maritime Association. Our Mission is simple.  We seek to help our clients make the best risk and risk transfer decisions possible.

MERIDIAN – YOUR RISK RETHOUGHT

Energy Usage at Three Cubic Miles of Oil and Growing

Thursday, October 28th, 2010

As children you may have learned to “thumbnail” some things.  Whether it was calculating a volume of liquid, a distance, how much something might cost to build, or just trying to get a sense of how much time to dedicate to a project It was a useful habit.  You may like the following for its “thumbnail” of what is happening in energy use in the world today. It helps to put it all in some perspective.  It is a sobering fact of life in the 21st century.  I hope you enjoy Jeff St. John’s news article in GreenTech Media.  It’s a reprint of something we’ve brought up before. Let us know what you think.

Meridian is a highly dynamic specialized insurance consulting group and broker with offices in Boston, MA, Newport, RI and Brookfield, CT.  We are a hard-driving group with an entrepreneurial spirit who will work tirelessly for clients.  We specialize in risk management and risk transfer issues for clients in the energy and sustainable business  arenas.  We belong to  IECA, Slow Money, the Sustainable Business Network and in the past year became a B Corp. For more on this read our blog on sustainable business practices.

Our Mission is simple.   We seek to help our clients make the best risk and risk transfer decisions possible.  We bring market-leading service to the most creative solutions in the risk management field to ensure that each Meridian client achieves their risk objectives.

SRI International’s Ripudaman Malhotra says the world’s energy usage equals burning three cubic miles of oil every year, and that will grow to nine cubic miles of oil by 2050 if current trends continue.

“Imagine the island of Manhattan covered with 150 feet of crude oil – almost enough to drown the Statue of Liberty – or 1,000 football stadiums filled to the brim with black gold.

That’s a cubic mile of oil, or the amount of oil alone the world now consumes in a year, Ripudaman Malhotra told an audience Monday at Greentech Media’s Greentech Innovations: End-to-End Electricity conference in New York.

And Malhotra, associate director of SRI International’s Chemical Science and Technology Laboratory in Menlo Park, Calif., wants people to think of all the world’s energy usage in terms of cubic miles of oil, or CMOs, because “That exercise will bring us face to face with the enormity of the challenge we are facing” in moving to a renewable energy future.

Including electricity generation, which takes up about 40 percent of the world’s energy usage, and all other forms of energy, the world uses the equivalent of three cubic miles of oil per year, he said.

But renewable energy makes up only a tiny portion of that measure of world energy supply, he said – about two-tenths of a cubic mile including large hydropower projects, and a mere 0.005 cubic miles of oil for all the solar and wind power now in place today.

It will be very difficult for renewable sources to grow to meet the world’s projected demand growth to somewhere between six to nine cubic miles of oil by 2050, he said. (see IEA Paints Dire Picture of Energy Supply and Demand).

While the sun provides an equivalent of 22,000 cubic miles of oil in energy to the earth, capturing that energy will take new technologies deployed on a scale that is hard to fathom, he said.

“If we are at .005 CMO [for solar and wind power] and want to get to 5 CMO, that’s a thousand-fold increase” over the next 40 years, Malhotra said by way of example. And current technologies are not effective enough to make up for “a big part of that gap, so I’m looking to see some new things,” he said.

The first problem is the sheer scale of the expected growth in energy demand, he said. Second is the disadvantages that solar and wind power have in terms of intermittency – not producing power consistently throughout the day and year – which will require new forms of energy storage to capture the power for use when it’s needed most, he said.

In terms of cubic miles of oil, Malhotra laid out some daunting figures for how much solar and wind would be needed to meet demand.

Getting just one CMO-equivalent of photovoltaic solar power in the next 50 years would require 4.2 billion 2-kilowatt solar rooftop systems, or 250,000 installed every single day over that timeframe, he said.

Looking at concentrated solar-thermal power, which produces power using the sun’s heat at lower cost than photovoltaic solar systems, Malhotra said it would take 7,700 solar-thermal parks of 900-megawatts capacity – or three built per week over the next 50 years – to add up to one cubic mile of oil equivalent.

As for wind power, getting to that one CMO-equivalent within 50 years would require putting up 1,200 1.6-megawatt wind turbines every week over that time, he said.

Using solar-thermal and wind power effectively will also require a massive investment in transmission to bring the power from the remote areas where it’s best produced to the cities that need it most, he said. (See NREL Hunts for Solar-Thermal Hot Spotsand National Grid: Dream or Reality?)

Biofuels – which have the advantage of being the only form of renewable energy that can be easily stored – offer other problems, such as the energy that’s required to make them and the potential environmental and greenhouse-gas emission costs of clearing land or cutting down forests to make room for planting the crops to make them, he said.

Creating one CMO-equivalent of biodiesel, for example, would require an 85-fold increase in the current amount of land now dedicated to growing soybeans around the world, he said.

As for nuclear power, which Malhotra said must be a part of the world’s energy future, getting to the equivalent of one cubic mile of oil would require the building of 2,500 nuclear plants, or one every week for the next 50 years.

And fossil fuels, which now account for the vast majority of the world’s energy supplies, will have to increase in use as well, even as the world tackles how to keep their use from increasing greenhouse-gas emissions and thus the threat of global warming, he said (see Can You Spare $45T to Curb Global Warming?).

Given these massive challenges, “The operative conjunction is ‘and,’ because it will take nuclear and solar and wind and whatever” to meet the world’s energy needs, he said.

And the solution won’t just lie in increasing energy supplies, Malhotra said. Efficiency – doing more with less energy – and conservation, or foregoing the use of energy, will play an equally important role, he said.

Efficiency has “historically never reduced net consumption,” since people tend to increase their energy use as efficiency improvements make it cheaper, he said. Still, doing things like replacing one billion incandescent light bulbs with compact fluorescent lamps, or CFLs, could save the world an equivalent of one cubic mile of oil per year, he said.

Making more energy-efficient buildings, which now account for about half the world’s use of energy, could also have a big impact – if such improvements in lighting, heating and air conditioning systems, as well as more efficient building materials, can meet the price demands of developing countries like China and India, he said.

Bringing a host of efficiencies to the United States’ roughly $500-billion-per-year building renovation market could yield a savings of about one-tenth of a CMO, he said.

Bringing the same innovations to India and China, where several trillion dollars of buildings are built and renovated each year, would raise that energy savings to as much as two CMOs, he said. But right now “we really need major innovations to produce cost-effective solutions” for those markets, he said.

“Conservation, or avoiding [energy use], is tougher,” he said. But, given the enormous challenges in increasing energy supplies and improving energy efficiency, it will have to be part of the equation, he said.

Conservation and efficiency together could reduce the world’s energy demand by three cubic miles of oil equivalent, he said.

“The question is, what about the rest? Those solutions will have to come form the supply side now – and as we’ve seen, we have absolutely nothing on the supply side to meet this right now.”

Jeff St. John for Greentech Media  Nov 17th 2008

Meridian wishes to announce Q1 2010 Sustainable Business results

Tuesday, April 27th, 2010

Meridian is pleased to announce that as of March 2010 they have been engaged to provide management liabilities insurance and other risk management for  Seventh Generation Inc. – a market leading North American distributor of sustainable products based in Burlington, VT.  Seventh Generation’s mission is “to inspire a more conscious and sustainable world by being an authentic force for positive change.”  We couldn’t agree more.

Meridian is a highly dynamic specialized insurance consulting group and broker with offices in Boston, MA, Newport, RI and Brookfield, CT.  We are a hard-driving group with an entrepreneurial spirit who will work tirelessly for clients. We specialize in risk management and risk transfer for sustainable businesses. We personally promote sustainable practices and are members of the Sustainable Business Network and Slow Money.

Our Mission is simple.  We seek to help our clients make the best risk and risk transfer decisions possible. To that end we bring  market-leading service to the most creative solutions in the risk management field to ensure that each Meridian client achieves their risk objectives.

MERIDIAN- YOUR RISK RETHOUGHT

Meridian wishes to announce Q4 2009 alternative energy projects

Sunday, January 10th, 2010

Meridian is pleased to announce that they have signed an agreement in November 2009 to provide financial services and insurance to a biofuels energy project in development for Vieste Energy of  Chicago.  Further in December 2009 Meridian signed an agreement to provide similar services to a new solar project for Scientia Solar of Dublin constructing two 100 MW projects  in Italy.

Meridian is a highly dynamic specialized insurance consulting group and broker with offices in Boston, MA, Newport, RI and Brookfield, CT.  We are a hard-driving group with an entrepreneurial spirit who will work tirelessly for clients. We specialize in risk management and risk transfer for alternative energy companies. We personally promote sustainable practices and are members of the Sustainable Business Network and the International Energy Credit Association.

Our Mission is simple.  We seek to help our clients make the best risk and risk transfer decisions possible. To that end we bring  market-leading service to the most creative solutions in the risk management field to ensure that each Meridian client achieves their risk objectives.