Energy Update: Week of August 29

Friends,

No full update but just a quick note today in the run up to Labor Day.  Obviously, the biggest weekend news was Hurricane Ida which roared ashore on Sunday as a Category 4 storm before making landfall on the Louisiana coast. 

Power – On the electricity side, more than 1 million homes and businesses in Louisiana and roughly 100,000 in Mississippi were left without power.

Crews from at least 30 states and the District of Columbia were strategically prepositioned to respond to power outages when and where they can, provided it is safe to do so. These crews will be following additional safety protocols required by the ongoing COVID-19 pandemic to keep customers and crews safe.

EEI's Storm Center is a resource for real-time information and updates on storm preparation and restoration progress. You also can follow EEI on Twitter and Facebook for the latest updates.

Entergy, Louisiana’s major power supplier, said all eight transmission lines feeding power into New Orleans were down Sunday. Entergy follows a plan to restore power as safely and quickly as possible. Learn more here: http://enter.gy/6017yvsYc #stormready

Oil/Gas – Ida also prompted oil companies to evacuate 288 offshore facilities, shut in at least 96% of crude production on the Gulf of Mexico, or roughly 1.74 million barrels per day. About 94% of natural gas production was also cut ahead of the storm. While oil prices initially spiked to a four-week high as a result, they have since dropped, with U.S. crude at $68.24, as the storm weakened to a Category 1 storm after making landfall near Port Fourchon.

Widespread flooding and power outages could slow efforts to restart operations as companies assess damages. Companies including Valero, Phillips 66 and Shell PLC shut roughly 5% of the nation’s refining capacity ahead of the storm, while Colonial Pipeline closed two lines that carry fuel from Houston to Greensboro, NC. ExxonMobil also shut some units at its chemicals and refining complex in Baton Rouge.

Our friend Tom Kloza of OPIS told the Wall Street Journal, “there’s no clarity” around power supplies in the region as of yet. “If they say the southeastern parishes that house a lot of big refineries aren’t going to be back on the grid for weeks, it’s a much more serious event.”

EPA Admin to Address RFF – EPA Head Michael Regan speaks today at 3:30 p.m. at Resources for the Future for a Policy Leadership Series event. During this wide-ranging conversation, RFF will discuss the role of economic analysis in informing environmental rulemaking and policy, regulations for greenhouse gas emissions under the Clean Air Act, EPA’s approach to environmental justice considerations, and more. RFF President and CEO Richard G. Newell will sit down with Administrator Regan to talk through these key issues and discuss the goals he has set during his first year as the head of EPA.

DOE Hydrogen Shot Summit Starts Tomorrow – The US Department of Energy Hydrogen Program is hosting its first Hydrogen Shot Summit virtually tomorrow and Wednesday. The two-day summit will bring together stakeholders from industry, research, academia, and government to identify pathways to meet DOE’s Hydrogen Shot of $1 per 1 kilogram in 1 decade. The summit will also feature breakout sessions covering multiple hydrogen production pathways and other topics, including electrolysis, thermal conversion with carbon capture and storage, advanced pathways and deployment/financing. Secretary Granholm headlines and Air Liquide CEO Mike Graff is among the speakers.

We are around if you need anything.  Our team is paying close attention to any moves on the budget and the Senate-passed bipartisan infrastructure package, so let us know what you need. 

Call with questions,

Frank Maisano

202-997-5932