Energy Update: Week of August 24

Friends,

I know I said no update this week, but after the Dem virtual Convention last week and this week’s Republican counter, I decided to just do a short report to mention a few things.  Oh and while I am not doing a full Kentucky Derby Report now that fans won’t be there, I did want to mention a few things.  After his convincing Travers Stakes win, it will be hard to look at past Belmont winner Tiz The Law.  I suppose Dr Post, Max Player (both just off the pace in the Belmont) and Ny Traffic (who missed the Belmont and could challenge) will make it a race, but unless jockey Manny Franco gets caught inside or out maneuvered, it will hard to beat TTL.  Derby set for Sept 5^th.

Climate played a minor, but important role last week at the virtual DNC last week with most speakers – include Biden – mentioning it at important points in key speeches.  But interestingly, the most coverage was over the DNC’s Platform Committee’s move to remove language on fossil subsidies, that took umbrage from several enviro activists who either aren’t looking at the political map or are hoping to increase their post-victory leverage (See Frankly Speaking below).  Either way, it is rare that party platforms matter other than to cause internal controversy and/or attract media focus to the warts, so mission accomplished.  The Bracewell political team has three great takeaways here from the Dem’s Convention.

As for this week’s RNC event, President Trump knows good television and digital content and he and his team will no doubt take cues from the successes and struggles of the DNC’s pioneering effort into virtual conventions. Our friends at the New York Times say former “Apprentice” producers Sadoux Kim and Chuck LaBella recently joined the RNC planning team. One thing we won’t see is a reprise of the ‘round-the-country roll call as the Republicans will conduct their formal nomination process in a small in-person event in Charlotte. 

On our issues, no one expects this week’s Trump Show to have much focus on climate but expect a full-scale barrage of comments about energy independence and how Democratic plans for aggressive action on climate would undercut that.  We already seem to have gotten a taste of that with the President’s simplistic response to last week’s California blackout stories where he blamed renewables. While the story is way more complex than that, I would expect that to be a prime example of how it will likely come up.  I will reserve any other comments and just say again we are ready to help with background, comments and perspective should you need it. 

On to another major issue on some controversy: Ethanol. While the ethanol lobby has been creating an RFS storm, bombarding media, Congress, politics and the President with talking points on ethanol and small refineries (many questionable), 16 CEOs of small refiners have finally had enough, sending a letter to Trump today that urges him “not to abandon his commitment to small refineries and to the employees and the rural communities that we serve.”  The CEOs say instead, they are asking that Trump resist efforts to harm the critical energy infrastructure he has fought so hard to protect.

Speaking of storms, Tropical Storms Laura and Marco plow toward the Gulf coast of Louisiana and Texas.  While neither storm is expected to be a major hurricane, the fact that two are moving so close together is of course a concern. The 2020 Atlantic hurricane season has seen a boatload of named storms as we have already burned through the M-storm. Many seasons don’t get to M let alone in middle-August. The peak of the season is around September 10^th and experts say another burst of tropical storm activity might be in the cards for the 2^nd and 3^rd weeks of September.  Of course, its 2020…This week, offshore crews were evacuated from six production and four drilling rigs, while seven vessels were moved from the storms' paths.

Finally, today is National Hydropower Day. The National Hydropower Association starts events LIVE on our Facebook page at Noon.  While there are events all afternoon, the main event is a 1:30 pm live streaming the signing ceremony of the Memorandum of Understanding for Federal Hydropower between the Departments of Energy, Interior and Army from Hoover Dam.

We will see how the week proceeds, but I’m inclined to not have another update until September.  Call with questions, stay safe & healthy.  Stay tuned here for our latest COVID-19 Updates.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

 

FRANKLY SPOKEN

“It’s time for the Democratic Party to unite around the reality that we must fully transform our energy system to protect people and the planet. Biden’s climate plan leaves a lot to be desired, and come January, we’ll need to push him on it. Right now, the Democratic Party should have two goals when it comes to climate policy: winning the election, and then governing to solve the crisis. That crisis cannot be solved without phasing out the extraction of fossil fuels, and the essential first step is to stop subsidizing that extraction. Both Biden and Harris have campaigned on that promise, and we will hold them to it.”

Tamara Toles O’Laughlin, North America director for 350 Action, in an op-ed in The Nation regarding the recent DNC platform controversy quietly removed a commitment to eliminate subsidies to fossil fuels from the party’s 2020 platform:.

ON THE PODCAST

Podcast Look at Affordable Energy – On this week’s episode of the American Wonk podcast, former FORBES editor Avik Roy talks to energy expert Robert Bryce about the juice that powers our smartphones, our homes, and our cars. Can we keep energy affordable for all Americans while reducing carbon emissions? Listen to find out.

Biden Victory Could Impact Decarbonization – In this week’s Capitol Crude Podcast, Guest host Ellie Potter spoke with John Thieroff, senior analyst with Moody's Investors Service, about how the US oil and gas sector might respond to a Biden victory in November’s Presidential election.  Thieroff says a Biden victory in November could influence oil and gas companies' decarbonization plans, given his climate and clean energy proposals.

FUN OPINIONS

Fixing Obama Methane Rule is Good First Step – In an op-ed in the Houston Chronicle, Antoine Halff and Andrew Gould say the U.S. needs better methane rules to compete in global energy markets.  Halff, a former chief oil analyst at IEA, and Gould, former CEO of Schlumberger, say rolling back these rules that no Longer fit their original purpose could be a good first step, but only if it paved the way for more practical and effective rules.  They add the Obama-era EPA regulations were well-intended but cumbersome, and especially poor at leveraging new technologies that can cheaply detect large and easy-to-fix emissions.  The climate case for cutting methane leaks is straightforward. Methane emission mitigation from the oil and gas industry is easier and has a larger short-term impact than carbon dioxide mitigation.  The business case is even clearer. Producers will find it increasingly difficult to stay in business while visibly spewing methane into the air. Thanks to new tracking tools, investors can monitor companies, buyers assess the methane intensity of their imports, and operators show proof of their progress in cutting emissions.

FROG BLOG

FORBES: Blackouts Expose Fragility of CA Grid – Also in a column blog in FORBES, Bryce gets into more detail on the blackouts that hit California over the past few days, saying it exposed the fragility of one of the most-expensive and least-reliable electric grids in North America. They also show that California’s grid can’t handle the load it has now, much less accommodate the enormous amount of new demand that would have to be met if the state attempts to “electrify everything.”   Bryce says the push to electrify everything would prohibit the use of natural gas in buildings, electrify transportation, and require the grid to run solely on renewables (and maybe, a dash of nuclear). But attempting to electrify the entire California economy will further increase the cost of energy at the very same time that the state’s electricity rates are soaring.  Bryce says that will result in yet-higher energy costs for low- and middle-income Californians.

IN THE NEWS

Small Refinery CEOs Urge President to Protect Workers – Sixteen small refinery CEOs wrote President Trump today urging him “not to abandon his commitment to small refineries and to the employees and the rural communities that we serve. Instead, we ask that you resist efforts to harm the critical energy infrastructure you have fought so hard to protect during your Presidency.  The CEOs say since the COVID-19 crisis began, at least three small refineries have already permanently shut down while others face financial distress due to the historic downturn in demand and historically high RIN prices. Following Trump’s statements in Iowa, RIN prices ended the week sharply higher, adding $240 million to small refineries’ RIN costs week over week—costs the Companies say they are unable to bear. “We urge you to continue to stand shoulder to shoulder with small refineries in Arkansas, Utah, Wisconsin, Pennsylvania, Oklahoma, Kentucky, Montana, Wyoming, Texas, West Virginia, Mississippi, Indiana, Louisiana, California, Alabama, Washington, and Hawaii and protect our jobs and communities.”

Trump to Move on Pebble Mine – After a week of rumors, expect this week that President Trump will block Alaska's proposed Pebble Mine.  We have heard Alaska's Army Corps of Engineers office plans to hold a conference call today to discuss the decision. The controversial gold and copper project drew the ire of all sides, with even Donald Trump Jr. calling for its cancellation, in part over worries that the mine could endanger the world's largest sockeye salmon fishery.  Supporters say the mine work impact the environment and is being undercut by a bipartisan group of rich outsiders that want to you the region as a personal playground without regard for local jobs.  A good source on this is former Senate Energy spokesman Robert Dillon.  

Legislation Aims to Create Pipeline Safety Program – Bipartisan Reps. Lizzie Fletcher (D-Texas), Marc Veasey (D-Texas), Bob Latta (R-Ohio) and Troy Balderson (R-Ohio) introduced legislation late last week to establish a pipeline safety enhancement pilot program at PHMSA. The measure, which has the backing of industry groups, would establish safety-enhancing testing programs from fiscal years 2020–2026 to look at technologies and operational practices for the safe operation of a natural gas pipeline facility or a hazardous liquid pipeline facility.

ON THE SCHEDULE THIS WEEK

MOST EVENTS SCHEDULED ARE NOW ONLINE WEBINARS

GOP Convention Goes Virtual – After fits, starts and moves to Florida, the GOP convention will also be virtual this week.  The will likely be some closed meetings in Charlotte, but most everything public will be virtual. President Trump knows good television and digital content and he and his team will no doubt take cues from the successes and struggles of the DNC’s pioneering effort into virtual conventions.  One thing we won’t see is a reprise of the ‘round-the-country roll call as the Republicans will conduct their formal nomination process in a small in-person event in Charlotte. Major themes are expected to be: law and order, with particular emphasis to supporting police and opposing urban civil unrest; economic recovery and threats to job creation; and the intention to frame the Biden/Harris candidacy as a “Trojan horse” for progressive elements of the Democratic base. And, like the DNC, the RNC hopes to strike a resonant chord by featuring the stories of real, everyday Americans.

Hill Forum to Look at Energy, National Security – Today at 1:00 p.m., The Hill is hosting a virtual RNC forum on energy and national security with Texas Rep. Bill Flores and our friend Karen Kerrigan of the Small Business and Entrepreneurship Council. On the sidelines of the 2020 Republican Convention, The Hill will host a discussion with policymakers and energy experts about the strategic importance of America’s energy independence.

Hydropower Events Set – Today is National Hydropower Day.  The National Hydropower Association starts events LIVE on our Facebook page starts at Noon.  We there are events all afternoon, the main event is a 1:30 pm live streaming the signing ceremony of the Memorandum of Understanding for Federal Hydropower between the Departments of Energy, Interior and Army from Hoover Dam.  Other events include 1:00 p.m. discussion of hydro’s future with NYPA CEO Gil Quiniones and Chelan County PUD GM Steve Wright; 2 pm Discussion of fish passage techs, 2:30 discussion of innovations to improve watershed resilience and a 3 p.m. discussion of state energy policies featuring our friend and NHA CEO Malcolm Wolff.

Chamber to Discuss LNG – The U.S. Chamber of Commerce holds a virtual discussion on "Bilateral Dialogue on the Future of Energy," today at 2:00 p.m. about the role of natural gas and LNG in Latin America, the importance of the Vaca Muerta geologic formation's future development and U.S.-Argentina energy cooperation.

Energy Storage Conference Set for Virtual – The Energy Storage Assn holds its “virtual” annual conference on today through Thursday.  Among the speakers will be Dep Secretary of Energy Mark Menezes and our friend Rob Gramlich.

Refiners Hold Summit – The American Fuel and Petrochemical Manufacturers host their 2020 Summit tomorrow to Thursday.  The Summit will continue its mission to showcase a combination of the best elements of the Reliability and Maintenance Conference, the Cat Cracker Seminar, and the Operations & Process Technology Summit, creating the only single event for the refining and petrochemical industries focused on improving plant-wide performance.

Energy Economists Talk Hydrogen – The US Energy Economists in DC hold a forum tomorrow at 11:00 a.m. looking at hydrogen.  Hydrogen has been in and out of the news for the past two decades as a fuel for fuel cell electric vehicles and power generation. Tom Russo, President of Russo on Energy LLC, takes a hard look at what’s different this time around and whether policymakers are relying too much on green hydrogen to attain their goals. He’ll review blue hydrogen and green hydrogen production and look at the opportunities and barriers of blending hydrogen in the natural gas grids in the U.S. and European Union. He’ll also explore the role of federal and state programs needed to incentivize increased blue and green hydrogen production and use in by pipelines, gas utilities, and gas-fired generators to decarbonize the natural gas industry.  

Wildlife/Sportsman Groups Look at Critical Minerals – Tomorrow at Noon (and likely following an announcement on Pebble Mine), Trout Unlimited, National Wildlife Federation and Backcountry Hunters & Anglers hold a webinar on critical minerals, looking at efforts to balance habitat conservation and responsible mining.

Forum to Look at Cities, Green Infrastructure – WRI holds a forum tomorrow at 1:00 p.m. looking at cities and green infrastructure.  This event will highlight cities that are using natural infrastructure to increase their adaptive capacity to climate change while promoting social equity outcomes. While nature-based solutions often have the primary goals of increasing urban resilience through contributing to stormwater management, water security, and flood control, they also can play a critical role in promoting social equity and increasing social cohesion throughout every stage of their implementation.

USEA Forum Look at DOE, Critical minerals R&D – Staying on the critical minerals theme, the US Energy Association holds a virtual discussion tomorrow at 2:30 p.m. on DOE approach to critical minerals and rare earth elements R&D. DOE’s Steve Winberg heads up a list of speakers government, university and industry speakers.

Forum to Look at Africa Geothermal – On Wednesday at 9:00 a.m., the US Energy Assn and US AID hold a virtual discussion on establishing geothermal industrial parks in East Africa. Jón Örn Jónsson from Reykjavik Geothermal and Sigurður H. Markússon from Landsvirkjun, the National Power Company of Iceland will discuss the Icelandic experience with geothermal industrial parks and their potential in East Africa.

Forum to Look at Climate Issues from View of Women – The Johns Hopkins University’s SAIS holds a virtual discussion Wednesday at Noon on the costs of climate change, environment degradation and resource scarcity.  The event will focus on the costs through a gendered lens. Women in Leadership panel members include Climate Finance Advisors CEO and Founding Partner Stacy Swann and WRI’s Natalie Elwell.

Forum to Look at Constitutional Concerns on Enviro Citizen Suits – The Federalist Society for Law and Public Policy Studies holds a virtual discussion on Wednesday at Noon looking at environmental citizen suits and supplemental enviro projects. The forum will discuss whether Constitutional and nondelegation concerns outweigh environmental benefits.  One of the cases the event will discuss is the DTE settlement.  NYU’s Richard Epstein and former Bracewell Partner Eric Groten, now at Vinson & Elkins will speak. 

Forum Look at Textile, Cotton in India – The World Resources Institute holds a forum Wednesday at Noon on advancing climate and water resilience for the cotton and textile Industries in India.  A panel of international experts will discuss the importance of sustainable cotton cultivation to the textile industry’s growth. Focusing on cotton growing communities in India, they will analyze climate change impacts and share actionable approaches to advance water and climate resilience in cotton cultivation, emphasizing challenges and opportunities for women.

Stanford Experts Discuss Pandemic, Climate, Path Forward – On Wednesday at 1:00 p.m., the Stanford Woods Institute for the Environment and the Center for Advanced Study in the Behavioral Sciences at Stanford University host a forum on COVID response and the path forward.  In this event, the Stanford faculty will discuss thought-provoking, interdisciplinary questions informed by approaches in economics, earth system and environmental science, behavior and decision making science, and political science.

Event to Look at Brazil Deforestation in COVID – The Woodrow Wilson Center's China Environment Forum, Brazil Institute, Latin American Program and Environment Change and Security Program hold a webcast on Thursday at 10:00 a.m. looking at deforestation during COVID-19 focusing on the acceleration of deforestation to produce agricultural commodities in Brazil.

Forum to Look at Pacific Wind Assessments – On Thursday at 1:00 p.m., the Pacific Ocean Energy Trust together with DOE’s EERE hold a discussion of Pacific wind assessments.  The webinar will begin with a high-level overview of wind resource assessments, touching on the differences between onshore and offshore assessment methods, the data needed to inform turbine design and power performance, and a very broad overview of wind flow fundamentals. NREL will discuss offshore atmospheric stability and the new wind resource dataset for offshore California. The Pacific Northwest NL will discuss how the offshore boundary layer structure and sea conditions influence wind resource modeling and will also discuss the deployment of two DOE lidar buoys off the coast of California in collaboration with BOEM. BOEM will conclude the webinar discussing how wind resource data collection and modeling inform offshore wind Call Area development and leasing.

BPC to Discuss Climate, Ag Soils – The Bipartisan Policy Center hosts a virtual discussion on Thursday at 2:00 p.m. on agricultural soils as a climate solution.  There is growing interest in the potential of agricultural soils to sequester carbon through a variety of conservation practices while providing a host of co-benefits. This webinar will address the science behind soil carbon, how farmers are adopting new practices, and the business case for climate-smart agriculture. This will be the first of a series of webinars on the policy and practice of natural carbon solutions.

Climate Leadership Summit Continues – The American Climate Leadership Summit continues its Thursday forums this week at 2:00 p.m. with a focus on the politics of climate, voting, the upcoming election and more.  Sens. Brian Schatz and Sheldon Whitehouse are among the speakers.

Green Job Forum Set – On Thursday at 6:00 p.m., Leaders in Energy holds its 7^th annual Green Jobs Forum, this year online.  New deep green jobs will be discussed by Justine Burt, author of “The Great Pivot: Creating Meaningful Work to Build a Sustainable World.    And Martin Ogle, Founder of EntrepreneurialEarth, will focus on how all careers are needed to intentionally create a green/sustainable economy.  Recruiters will also provide tips on green hiring opportunities, as well as those already those working in green jobs.

IN THE FUTURE

AWEA’s September Conferences Go Virtual – The American Wind Energy Association (AWEA) announced that the Wind Resource & Project Energy Assessment Conference and Wind Project Siting and Environmental Conference will be held virtually this September. AWEA is focused on reconstructing these events to create a valuable and successful online experience. Participants will have available live presentations, on-demand sessions, one on one networking, and shared social experiences.

GTM to Look at Energy Storage – Greentech Media holds a forum on September 1^st at 1:00 p.m. that will feature Wood Mackenzie’s Energy Storage research team will connect with some of the most innovative energy storage technology players and developers, including Wärtsilä's Vice President of Energy Storage and Optimization. From strategies to operate batteries more efficiently to automation and predictive analytics tools helping asset managers reduce operational downtime and increase safety, this exclusive virtual session will break down some of the key drivers behind energy storage life-cycle management optimization.

Mexico Gas Summit Set – The 6^th Mexico Gas Summit will take place virtually this year on September 8^th, 9^th and 10^th.  The event will look at Gulf Coast onshore exploration and production, energy logistics and transportation, natural gas commercialization/infrastructure and the refined fuels market.

Forum to Address Charging Infrastructure – The final web forum hosted by the Electrification Coalition and Smart Columbus will be held on September 8^th at 3:00 p.m. to discuss fortifying regional EV charging infrastructure. More than 1,000 new EV charging ports have been installed in the Columbus Region. This explosion of charging has contributed to a more than four-fold increase in EV purchases in the last three years. The event will look at how Smart Columbus partnered with local utilities to help residents, workplaces, businesses and developers identify the right ways to install EV charging infrastructure for their current needs and for the future.

Bloomberg Green Festival Set – The Bloomberg Green Virtual Festival will be held on September 14^th to 18^th.  The event will feature leading voices working at the edge of change to foster solutions-oriented conversations.  The five-day festival will feature a cross section of visionaries from business, design, culture, food, technology, science and entertainment in a smart mix of panels, presentations, fireside chats, and interactive demonstrations.  The Green Festival will be a true thought leadership experience operating at the crossroads of sustainability, design, culture, food, technology, science, politics and entertainment.

National Clean Energy Week – September 21-25