Energy Update: Week of April 11th

Friends,

What a great finish to the Masters, watching Scottie Scheffler pretty much dominate golf's first major. It is always exciting to watch Masters Sunday, especially when players are shooting low scores and are on top of their games. 

This week and next, Congress is in recess because of the Passover and Easter holidays this weekend.  That's why it was no surprise Congress jumped in with very political hearings on gas prices issues last week.  They just want something to tell voters in their districts/states as they head home for two weeks.  New polls shown they have a reason to be worried.  (See the links below) But oil prices were down to about $94/barrel today.

A few things we are watching are the Biden Administration's expected roll out of it new NEPA rule soon, interactions with BBB roadblock Joe Manchin (which appear to be restarting) and the conference on the final legislative package on competitiveness with China. 

Because of the recess, events are also slow this week. The most important events are an R Street Institute event tomorrow at 1:00 p.m. featuring former FERC Commissioners to discuss power markets and a Ceres event at 2:00 p.m. with Gary Gensler on the new SEC climate risk policy. 

Finally, congrats to the Denver Pioneers who won Its 9^th NCAA Frozen Four on Saturday with five 3^rd-period goals to defeat Minnesota St. 

Next Monday is Patriots Day and of course, (back to the regular time) running of the Boston Marathon.  Good luck to all those running and enjoy the return of the Wellesley scream tunnel. Call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“We’re not in a position to help households right now because it would cause more inflation.”

Former Obama Administration Economic Advisor Jason Furman, now an economist at Harvard discussing how to address gas prices.

"The truth is everything has an impact. If you look at oceans versus land — of course, we’re studying these organisms down to single-cell organisms, because there’s nothing else to study, these organisms are not being studied on land — there is a high rate of discovery. But there would be a high rate of discovery on land if we were looking through the same lens."

Metals Company CEO Gerald Barron in an interview with Axios on the possible of collecting key critical minerals of the ocean floor.  

ON THE PODCAST

Hydrogen Podcast Looks at Detailed Market Analysis – In this episode of the Hydrogen Podcast, host Paul Rodden discusses a Stellar Market Research analysis on the near-term hydrogen generation market Rodden has a deep dive on the main points and the growing interest in green hydrogen. 

FUN OPINIONS

Former State Dept Official: Critical Mineral Supply Chain Essential – Former State Dept official Aaron Ringel write in a recent opinion in RealClearEnergy that critical minerals sit at the very center of our clean energy agenda since they’re the building blocks necessary for every aspect of advanced manufacturing. And so, the Biden administration’s use of the Defense Production Act should focus on shortening the timeline involved in mining and processing of rare earth metals—and swiftly making them available to America’s manufacturers.

Clean Energy Experts: Deploy Clean Energy Technologies We Know – In an opinion in the New York Times, several clean energy experts write rather than getting distracted by distant and likely irreducible uncertainties, let’s focus on what matters: deploying clean technologies we know we need, implementing a coherent climate policy, laying the groundwork for future progress and creating a just transition that shares the benefits of a sustainable energy system.

FROG BLOG

API Head:  Embrace American Energy – Late last week in a Fox News opinion blog, API President and CEO Mike Sommers outlines steps the Biden administration and Congress can take to support domestic production and embrace American energy leadership.  Instead of managing from crisis to crisis, we should be focused on promoting policies that avoid emergencies altogether through more production. The president and some allies have belatedly acknowledged the need for ever-cleaner U.S. oil and gas production. But they must walk the talk, which can happen if policymakers get out of their own way – and ours.

ACORE: Renewable Energy Essential for National Security – ACORE President and CEO Gregory Wetstone wrote an opinion column for PV Magazine. The column, Accelerate the Energy Transition to Protect National Security, explains how the ongoing Russian invasion of Ukraine is further proof that the transition to renewable energy is necessary for our national security. "With Russia’s unconscionable invasion of Ukraine, an energy crisis precipitated by the volatility of global fossil fuel markets has once again brought home that our nation’s continued reliance on fossil fuels leaves us vulnerable to unsavory foreign actors and the gyrations of unpredictable global markets," Wetstone wrote. "The undeniable reality is that to secure our economy against geopolitical disruptions, we must transition to a clean-energy future."

FUN FACTS

Gas Price Polling: With Easter/Passover recess, gas prices will be a big concern as officials face voters over the next two weeks.  Not good news polling news for anyone when it comes to this issue.

A new CBS News/YouGov poll shows:

• 78% blame oil companies for charging more
• 70% cite Russia's war against Ukraine.
• 62% believe Biden is contributing a lot or some to gas prices
• 65% say he could be doing more to lower them.

A separate ABC News/Ipsos poll shows that

• 71% of adults blame Vladimir Putin a great deal or good amount for recent price increases
• 68% blame oil companies
• 52% blame Democratic policies
• 51% blame President Biden

The poll also shows 68% disapprove of the way President Biden is handling high gas prices.

IN THE NEWS

CRES Critical Minerals White Paper Says – CRES Forum recently published a white paper by David Banks and Phil Rosetti discussing how dependence on foreign critical mineral supply chains threatens U.S. national security. The Report adds the US should increase its own minerals production and processing to reduce the influence of China and other geopolitical adversaries. Should we not adopt these practices, it risks a similar situation to the 1970s where reliance on adversarial regimes for key commodities results in an economic liability that would be exploited to the nation’s detriment.

US Rig Activity Up for 3^rd Consecutive Week – Baker Hughes says the number of US oil and natural gas rigs jumped by 16 last week to 689, marking the third consecutive weekly increase. Texas added 11 rigs, while Colorado, Oklahoma, North Dakota, Wyoming and Ohio gained one rig each. Baker Hughes said that puts the total rig count up 257 rigs, or 59%, over this time last year. US oil rigs rose to 546, their highest level since April 2020, while gas rigs rose three to 141, their highest since October 2019.

Oil Prices Drop – The International Energy Agency's planned oil release from strategic reserves and COVID-19 lockdowns in China are putting downward pressure on Brent and West Texas Intermediate crude prices, which lost about 4% early on Monday to trade at $98.85 per barrel and $94.07 per barrel.

Report Recommends Policy Changes for Oil Markets – Last week, SAFE released the report “Overcoming America’s Energy Security Mirage” which contained recommendations to remedy petroleum supply shortfalls, provide needed assurance to global oil markets, and overcome America’s persistent and dangerous overreliance on oil for automobile transportation.  The report issued the following recommendations:

• Summon industry leaders and other experts to what would be an extraordinary in-person meeting of the National Petroleum Council, a chartered Department of Energy advisory committee, to discuss how the government can work more effectively with the private sector to eliminate impediments to achieving shared energy goals.
• The President’s announcement of a six-month long release of oil from the Strategic Petroleum Reserve (SPR) on March 30, 2022, was important but incomplete. To boost incremental oil supplies short term and reassure global markets, the President should:
  • Refill the SPR from thousands of Drilled but Uncompleted Wells located in five primary shale basins using a combination of authorities to direct government oil purchases;
  • Use the authorities in the Defense Production Act, which have been deployed throughout the pandemic, to facilitate manufacture and delivery of equipment that may be in short supply such as hydraulic fracturing wells, pipes, and rig equipment.
• Increase Natural Gas Exports and create a 21^st Century “Arsenal of Energy.” The United States has about 100 million tons of LNG export capacity, with another 20 million tons under construction. A dozen other projects with 50 million tons of export capacity are approved but lack financing.  Congress should pass legislation allowing the Department of Energy to provide loan guarantees for the construction of LNG export terminals to support this ramp up.
• Congress should pass the No Oil Producing and Exporting Cartels Act (NOPEC), which would enable the Department of Justice to take legal action against any foreign state (or state-run oil company) for price fixing and other anti-competitive activities.
• To accelerate the transition to more diversified, non-petroleum sources of energy, the U.S. should: (1) Fund investment and accelerate permitting in next-generation automobile manufacturing and supply chains; (2) Expand current federal incentives for electric vehicles of all classes; and (3) Ensure that the government’s planned investment in nationwide electric charging infrastructure is optimized to meet the needs of EV owners and fleet users.
• Maintain access to critical materials produced in Russia and Ukraine, including palladium, nickel, aluminum, and neon, through loan guarantees, direct financial assistance, tax credits, regulatory relief, and other policies to incentivize domestic manufacture.

Download the report HERE. 

ON THE SCHEDULE THIS WEEK

Forum to Feature Climate Science, Policy – Hillsdale College in DC holds a lecture today at 6:00 p.m. with Willie Soon, astrophysicist and geoscientist that has challenged the climate consensus.  Soon will explain how science has become politicized to target scientists who disagree with the dominant narrative of the scientific community.  Dr. Soon will also consider how science could be reformed to be more open and better able to investigate and debate questions of public policy.

AEI Hosts Climate, Ag, Food Security Policy Forum – AEI hosts a forum tomorrow morning to look at policies being proposed to mitigate greenhouse gas emissions and enable communities to adapt to changed climates, affect global agricultural production and food insecurity.  AEI’s Vincent Smith and a group of distinguished agricultural economists and policy experts, including Wolf Prize laureate David Zilberman, discuss how to get agricultural and other policy responses “right,” at the national and international level. Two panels will explore the implications of climate change for agricultural, food security, and policy responses. The first panel will focus on global issues; the second will focus on the likely impacts of current and proposed US agricultural policies on greenhouse gas emissions.  Our friends Scott Faber of EWG is among the speakers.

Farm Foundation Looks at Carbon Markets – Tomorrow at 10:00 a.m., the Farm Foundation holds a discussion on solving the barriers to agricultural carbon markets. The panel will discuss pitfalls, opportunities, and where both the science and market trends are currently headed.

Forum to Feature State Dept Officials on Nuke Exports – Tomorrow at 10:00 a.m., the Global America Business Institute is hosting an event looking at global capacity building for nuclear exports.  Speakers include State Department officials Kirsten Cutler and Laura Schmidt Denlinger.  Farm Bureau economist Shelby Myers is among the panelists.

WRI Looks at IPCC Report – Following recent IPCC report release, the World Resources Institute hosts experts and IPCC authors tomorrow at Noon for an overview of the IPCC report and learn about the transformative actions across sectors (including energy, transportation, food, forests and much more) needed to curb greenhouse gas emissions and remove carbon dioxide from the atmosphere.

Forum to Feature FERC Commissioners – The R St. Institute holds an online discussion tomorrow at 1:00 p.m. in which our panel of distinguished experts will talk about the record of electricity competition and the prospects for future reforms.  Former FERC Commissioners Neil Chatterjee, Pat Wood and Nora Brownell all speak. 

Forum Looks at Carbon Removal – Tomorrow at 11:00 a.m., the Institute for Carbon Removal Law and Policy holds a webinar featuring a panel of experts to discuss how carbon removal is present in the IPCC report, scaling up carbon removal, and media coverage of carbon removal within this report. ASU’s Sanjeev Khagram, Anu Khan of Carbon180, Ben Rubion of Climate Nexus and Greg Nemet of UW-Madison will speak.

Ceres to Host Gensler – Ceres will host a briefing tomorrow at 2:00 p.m. with Securities and Exchange Commission Chair Gary Gensler about the SEC's proposed climate disclosure rule. The event will feature keynote remarks from Gensler, Ceres’ high-level summary of the rule and reactions of the rule from a panel of distinguished investors.

Forum to Look at Green New Deal – The Institute for Policy Studies holds a forum tomorrow at 5:00 p.m. on Green New Deal initiatives.  Three experts will look at what the Biden administration has done, hasn’t done, and still could do to implement transformative climate action. Vox’s Rebecca Leber, Senior Policy Advisor for U.S. Rep. Jamaal Bowman (D-NY) Rajiv Sicora and Susie Strife, who directs and manages all of Boulder County’s sustainability efforts, will address the topic.

Forum to Hear from Defense, Climate Expert – Tomorrow at 6:00 p.m., the American University School of International Service holds the 2022 Nancy Weiser Ignatius Lecture on the Environment, featuring keynote remarks from Sherri Goodman, the Secretary General of the International Military Council on Climate and Security. After the lecture, Goodman will speak with SIS professor Robert Kelley, and an audience Q&A will follow the discussion.

Kerry to Attend Ocean Conference – The Republic of Palau and the United States will co-host the 7^th Our Ocean Conference on Wednesday and Thursday. The Conference will be a key moment for countries, civil society, and industry to commit to concrete and significant actions to protect the ocean. Our Ocean will focus on six Areas of Action, convening partners from across the globe to identify solutions to manage marine resources, increase the ocean’s resilience to climate change and safeguard its health for generations to come. White House Climate Advisory John Kerry attends the event.

Wilson Looks at China Nuclear – The Wilson Center’s China Environment Forum holds an event on Wednesday at 9:00 a.m. on how nuclear can help China prevent future energy crises and how, despite ongoing pricing obstacles, the nuclear industry could expand to support the country’s net zero carbon policies. Speakers at this China Environment Forum event will explore how China has been expanding nuclear power both at home and abroad.

Wilson Forum Tackles Energy, Mineral Supply Chain – The Wilson Center's Environmental Change and Security Program holds a virtual discussion Wednesday at 11:30 a.m., on Russia's war and global food, energy and mineral supply chains. A panel discussion with experts to help unpack these complicated systems and explore how policymakers can respond now to head off the worst future outcomes.

Forum to Look at Polar Vortex-Type Events, Climate Impacts – The Environmental and Energy Study Institute (EESI) holds a briefing series starting on Wednesday at Noon on strategies, policies, and programs preparing communities around the country for four major climate threats: polar vortices, sea level rise, wildfires, and extreme heat. Experts and practitioners will highlight the unique challenges these climate threats present along with strategies to overcome them.  Panelists will discuss the science behind the polar vortex and how the energy grid and other critical infrastructure can be made resilient to this threat.

Forum to Look at Middle East Climate Impacts – The American University School of Public Affairs holds a webinar on Thursday at 1:30 p.m. to understand how national governments have, or have not, addressed climate mitigation and adaption issues. The event will look at the political opposition to prioritizing climate adaptation over climate mitigation, how “agenda setter” priorities heavily emphasize one set of priorities over another, and how there is little overlap, in most nations, between mitigation and adaptation policies.

Forum to Feature Latin American Central Bank Govs – The Center for Global Development holds a forum on Wednesday at 2:00 p.m. featuring a discussion of the war in Ukraine, global liquidity and Latin America.  The conversation with central bank governors from Chile, Colombia, Costa Rica, and Peru will get their perspectives at a crucial time for the region. 

Forum to Look at Russian Trade Sanction, Clean Energy – On Thursday at 9:00 a.m., the Washington International Trade Association holds a discussion on Russian energy sanctions and whether they are a trade pivot to a cleaner future. US Trade Rep Official Maureen Hinman and ACP’s Vanessa Sciarra are among the panelists.

POLITICO Hosts Infrastructure Forum – POLITICO transportation editor Kathy Wolfe, climate and energy reporter Zack Colman, sustainability reporter Catherine Boudreau and transportation reporter Alex Daugherty hold a forum on Thursday at 11:00 a.m. on infrastructure developments. The panel will discuss how federal infrastructure dollars could be put to use in advancing clean energy goals and the constraints that the Biden administration is facing.

Good Friday – April 15^th

Easter Sunday – April 17^th

IN THE FUTURE

TAX DAY – Monday, April 18^th.  Not so good!!!

Brookings to Discuss IPCC Report – On Monday April 18^th at 3:30 p.m., Brookings will host a forum on the follow up to the IPCC report.  Washington Post reporter Sarah Kaplan will moderate an expert panel discussion on the findings from the IPCC’s 6^th assessment report and the future of climate policymaking given the report’s findings. Panelists include two contributing authors to the WG3 report, along with experts who represent a range of knowledge around climate policymaking. The discussion will include reflections about the key findings and what comes next in terms of climate policymaking given what is currently known about how climate change will change our world.

ITA to Host LNG, Hydrogen Forum – The International Trade Administration holds a forum next Tuesday April 19^th at 11:30 a.m. to discuss Europe's shifting geopolitical landscape and its implications for U.S. LNG and hydrogen companies.  Participants will learn how Europe's gas supply challenges will impact the U.S. LNG value chain; the role of hydrogen in Europe's energy security and decarbonization goals; U.S. government resources available to U.S. LNG and hydrogen companies

Hydrogen Forum Set in Houston – US Energy Stream holds the 3^rd annual Hydrogen & LNG Forum 2022 on Monday April 18^th and Tuesday April 19^th at the Petroleum Club of Houston, Texas.  The Forum is an annual market intelligence platform that brings together powerful U.S. Congressmen, Senators, government leaders, senior energy executives, investors and experts.  Speakers will include Reps. Gary Palmer, Brian Babin, Sheila Jackson-Lee and Deb Lesko, as well as several company execs.

Forum to Address Climate Resilience – The Center for Climate and Energy Solutions (C2ES) holds a web forum on Tuesday April 19^th at 1:00 p.m. on climate resilience.  This webinar will explore on-the-ground projects at the nexus of economic development and climate resilience and illustrate how common strategies can reduce climate and economic risks and create new opportunities.

Forum Looks at Storage Challenges – WRISE holds a forum on Tuesday April 19^th at 2:00 p.m. on the growing pains in the battery storage market. The panelists will cover supply chain, integration, market operations, and how participants are delivering viable storage products to the market.

Columbia Sabin Center Holds Global Climate Litigation Conference – The Sabin Center and United Nations Environment Program will hold their first Annual Conference on Global Climate Litigation on April 19^th and 20^th. The conference will address key themes on global climate litigation and feature several members of the Peer Review Network and invited speakers.

FP Forum Looks at Financial Assistance for Developing Countries – On Tuesday April 19^th at 10:00 a.m., Foreign Policy, in partnership with Microsoft, holds a forum on financial assistance for least developing countries will welcome finance experts, impact investors, and entrepreneurs for a conversation on ways public and private sectors can contribute to sustainable development and bolster economic growth.

Energy Economists Hosts OPEC Expert – The National Capital Chapter of the US Energy Economists will host their monthly meeting on Wednesday April 20^th at 3:00 p.m. to discuss the impact Covid-19 has had on the world oil market and the recovery of oil prices. This seminar will feature NCAC's Bryn Kirk and Djavad Salehi-Isfahani, a professor at Virginia Tech. The discussion will focus on the role OPEC has in the oil economy.

ELI to Look at NEPA – On Thursday April 21 at Noon, the Environmental Law Institute and expert panelists hold a forum to explore the proposed changes to NEPA, how these rules may impact on climate change policy and environmental justice, and how the administration may overcome obstacles to promulgating new rules.

Forum to Look at IPCC Report, Ocean Carbon Removal – The Institute for Carbon Removal Law and Policy and the Environmental Policy & Culture Program at Northwestern University holds a webinar on Thursday April 21^st at 1:00 p.m. to look at the potential Of ocean-based carbon removal. The event provide an overview of the scientific, technological, legal and social elements of the study. Panelists will include both principals in the drafting of the report and reviewers.

Catholic U Holds Sustainability Forum – The Catholic University of America is organizing a conference on Friday April 22^nd addressing the impact that a changing global climate will have on work and careers throughout the 21^st century. This is part of the University’s ongoing commitment to environmental stewardship as part of its recent 5-year sustainability plan. The conference will feature speakers from government, industry, universities, and the nonprofit sector. Building on themes addressed by Pope Francis in his encyclical Laudato Si’, the conference will address the ways that jobs throughout the global economy will be, and are already being, impacted by climate change and by increased attention to environmental stewardship, resiliency, human ecology, and sustainability.

Event Addresses Climate Finance in Emerging Markets – The US International Development Finance Corporation (DFC) is hosting the “Investing in a Sustainable Future–Climate Finance in Emerging Markets” virtual event on Friday April 22^nd at 9:00 a.m. for businesses, NGOs, foundations, and other stakeholders focused on climate sector projects or projects in other sectors that have an opportunity to produce co-benefits related to climate adaptation, resilience, or mitigation. This event will allow DFC to identify and inform businesses, NGOs, commercial banks, investment funds, and institutional investors around the world who have active projects relevant to climate mitigation, adaptation, and/or resiliency.

Brookings Forum Focuses on Africa, Climate – In celebration of Earth Day and as part of the ongoing Foresight Africa event series, the Brookings Africa Growth Initiative will host a discussion on Friday April 22^nd at 9:30 a.m. looking at climate change in Africa—including energy transition, local action, and climate finance, among other topics—as well as the implications and hopes for COP27 - “Africa’s COP” - to be held in Egypt later this year.

Kerry, Moon to Address FP Climate Summit – John Kerry, the first U.S. special presidential envoy for climate, joins Foreign Policy’s Climate Summit on April 27^th and 28^th to discuss the urgency of the global climate crisis and the policy pathways that can contribute to a more sustainable future.  Kerry will be joined by fellow policy leaders and sustainability trailblazers for a look at the solutions and partnerships that can transform energy supply chains and consumer markets. The Summit will advance the global conversation on how to make up for lost time and achieve global climate commitments collaboratively, innovatively and inclusively. Other Speakers include former UN Secretary-General Ban Ki-moon, former Irish President Mary Robinson, NEI’s Maria Korsnick and many more.

Cal Clean Energy Forum Set – The California Clean Energy Procurement Summit will be held on April 28^th and 29^th.  The event features a streamlined agenda that includes a policy outlook, strategies to achieve California's climate and clean energy goals and the outlook for storage procurement in California.

Aspen Ideas Fest on Climate Set – The Aspen Institute holds Aspen Ideas: Climate 2022 on May 9–12^th in Miami Beach. The event will feature main stages both in and outdoors, breakout and roundtable sessions, tours of local and historic resilience points of interest, as well as fashion, food, art, and music activities.

US-Mex Chamber Hosts Forum – The United States-Mexico Chamber of Commerce holds its annual Board of Directors Meeting, Conference and Good Neighbor Awards Gala on May 19^th at The Decatur House in Washington, D.C.  The conference this year will focus on the implementation of the United States-Mexico-Canada Agreement, current supply chain challenges and nearshoring opportunities.

Hydrogen Plant Opening Set for North Las Vegas – Air Liquide will formally open its new North Las Vegas Hydrogen Production Facility on May 24^th.  It will be the largest H2 Production facility in the US and is design to reach California’s emerging hydrogen market.