Energy Update: Week of February 22nd

Friends,

The Olympics closed over the weekend and despite the disappointing USA-Canada upsets in Men’s Hockey, it was a pretty interesting games with my favorite being US Nordic skier Jessie Diggins.  I will miss the 24-hour coverage keeping me from watching news all day.  It was a great two-week break.  BTW, rookie driver Austin Cindric took the Daytona 500 on Sunday in a thrilling finish to The Great American Race. Cindric is now the 9^th driver in history to earn his first career NASCAR win in the Daytona 500, and the second in a row following Michael McDowell last year.

Ukraine and international energy prices remain a focal point, especially with the latest movements on the Russian border (whether it is being called an invasion or not).  Despite some reporting that energy companies will stick with plans for a slow build, at close to $100 prices, there isn’t much evidence that will be the case.  We have seen the rig count reach its highest point in 7 years and drilling activity/production is certain to increase.  Finally, it looks like Germany is starting to use Nord Stream 2 as a negotiating weapon.  They announced publicly that the $11B pipeline would be at risk of being blocked in the event of a Russian move against Ukraine.  Happy to discuss these issues and/or provide experts resources. 

On topic, in the NY Times today, former Director of National Intel Adm. Dennis Blair and former Joint Chiefs of Staff for Obama and Trump Gen. Joseph Dunford write while Russia is flexing its energy dominance over a dependent Europe, tomorrow, the danger may come from China and its control over the raw materials that are key to a clean energy future.  In addition, 17 military experts wrote a letter to Secretary of Defense Lloyd Austin calling for a full and complete consideration of sea bed nodules as the US plans to shore up its mineral access and improve our independence while simultaneously working to return the processing facilities back to this country.

The letter ties into an event today at 3:30 p.m. where President Biden will host a virtual event on mineral supply chains, clean energy manufacturing and creating jobs with Energy Secretary Jennifer Granholm, national climate adviser Gina McCarthy, Deputy Defense Secretary Kathleen Hicks and California Gov. Gavin Newsom.  Other good events include today’s Carbon Capture Coalition online media briefing on carbon capture projects and industrial emissions with business, labor and NGOs, including LaFargeHolcim’s Virgilio Barrera and others. Then Thursday, the CSIS holds discussion on hydrogen, with Neil Navin of SoCalGas, who recently announced a major new green hydrogen project in the LA Basin 

We’ll start to see Congress settling back in this week as it readies a budget/funding push.  They will need to move quickly to finalize a package to fund the government through September. The real action rolls in next week when they return in full.

Speaking of next week, mark your calendars right now for Thursday March 3^rd when at 10:00 a.m. the Business Council for Sustainable Energy and Bloomberg NEF release their annual 2022 Sustainability FACTBOOK looking back at 2021.  Then at 2:00 p.m., BPC hosts the roll out of EIA 2022 Annual Energy Outlook which provides the latest modeled projections of domestic energy markets through 2050, including cases with different assumptions about macroeconomic growth, world oil prices, and technological progress.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“Congress gets to make these major decisions of the day. When you have something with such significant political, social, or economic consequences, it's the role of Congress to provide that clear statement.”

West Virginia AG Patrick Morrisey during a forum at the National Press Club where he laid out his side in West Virginia v. EPA, which seeks to have the court limit the extent to which the EPA can regulate power sector greenhouse gas emissions under the Clean Air Act.

ON THE PODCAST

Bordoff Joins Carbon Copy to Look at Emissions – Columbia energy expert Jason Bordoff joined Stephen Lacey on Carbon Copy Podcast last week, looking at how the clean energy transition might actually strengthen petrostates including Russia before finally changing which countries wield the power. Bordoff has been watching the diplomatic dance, and he says it is closely tied to the geopolitics of energy.  Host Stephen Lacey and Jason talk energy and Russia.

FUN OPINIONS

NYT: Ukraine Underscores Energy Security Challenge – In an opinion piece in the New York Times, former Director of National Intelligence Admiral Dennis Blair and former Joint Chiefs of Staff General Joseph Dunford write Russia’s belligerence against Ukraine is underscoring once again the inextricable link between national security and energy security. Today, Russia is flexing its energy dominance over a dependent Europe. But tomorrow, the danger may come from China and its control over the raw materials that are key to a clean energy future. Dunford and Blair write “the bottom line is that the United States now depends heavily on supply chains from nations that do not share our interests and values. Policymakers must heed this risk or risk being held hostage by these nations.”

FROG BLOG

Yergin: American Leads on Oil, Gas – With just a few weeks until CERA Week, energy expert Daniel Yergin writes in an op-ed in the Wall Street Journal that extraordinary growth in U.S. oil and gas production is a geopolitical and economic asset for the U.S. that contributes to global energy security. As the domestic oil-and-gas industry continues to rebound from the spring 2020 price collapse caused by the onset of Covid, the U.S. is again the world’s top oil producer—almost 20% above the other two largest producers, Saudi Arabia and Russia—and the world’s top natural-gas producer. Today there is no doubting the geopolitical importance of America’s new oil-and-gas position. The Ukraine crisis and Europe’s energy crisis shine a light on the global impact of U.S. oil-and-gas production. 

FUN FACTS

Oil Production, LNG: The US is again the world’s top oil producer — almost 20% above the next two largest producers, Saudi Arabia and Russia.

• In February, US oil and natural gas producers deployed another 22 rigs, bringing the total to 635 — or, 238 more rigs than last year and the biggest increase since February 2018.
• For the first time ever, US exports of liquefied natural gas to Europe exceeded Russia’s pipeline deliveries. The European Union (EU-27) and UK import 80% of their total liquefied natural gas (LNG), up from 65% ten years ago.

IN THE NEWS

Military Experts: Deep Sea Minerals Huge Opportunity – In a new letter to Secretary of Defense Lloyd Austin in the pending review of supply chains, 17  Seventeen military experts with substantial leadership roles, including commands in the Pacific and elsewhere - representing almost 600 years of total service – are calling for a full and complete consideration of sea bed nodules as the US plans to shore up its mineral access and improve our independence while simultaneously working to return the processing facilities back to this country.

SoCalGas to Develop Largest Green Hydrogen Energy Infrastructure System – SoCalGas said it will develop what would be the nation’s largest green hydrogen energy infrastructure system (the “Angeles Link”) to deliver clean, reliable renewable energy to the Los Angeles region. As proposed, the Angeles Link would support the integration of more renewable electricity resources like solar and wind and would significantly reduce greenhouse gas emissions from electric generation, industrial processes, heavy-duty trucks, and other hard-to-electrify sectors of the Southern California economy. The proposed Angeles Link would also significantly decrease demand for natural gas, diesel, and other fossil fuels in the LA Basin, helping accelerate California’s and the region’s climate and clean air goals.

ACP Report: US Surpasses 200 GW Milestone for Clean Power – The American Clean Power Association (ACP), released its Clean Power Quarterly 2021 Q4 Market Report showing that the US surpassed more than 200 gigawatts (200,209 MW) of total operating utility-scale clean power capacity in 2021.  But the report adds significant policy issues continue to hold back growth for the industry and threaten the country’s ability to meet emissions goals. During 2021 there was a three percent decline for clean energy installations compared to 2020’s record year. Over 11.4 gigawatts of projects, originally expected to come online in 2021, slipped to 2022 or 2023 due to a variety of issues. For the solar sector this was due to trade policies and lack of regulatory certainty impacting the availability of solar panels coming into the country. The wind sector faced policy uncertainty, including the expiration of tax credits for wind projects. The pace of installations fell significantly short of what is required to achieve a net zero emissions goal. While 27.7 GW is the second largest year on record for combined wind, solar and energy storage installations, it is only 45% of what’s required to stay on track for an emissions-free power sector.

DOE Launches $140 Million Program to Develop America’s First-Of-A-Kind Critical Minerals Refinery – DOE released a Request for Information (RFI) on the design, construction and operation of a new facility to demonstrate the commercial feasibility of a full-scale rare earth element (REE) and critical minerals (CM) extraction and separation refinery using unconventional resources. When built, this first-of-a-kind facility, supported by $140 million investment from the Bipartisan Infrastructure Law, will support American manufacturing jobs, and help build a strong domestic supply chain for the next generation of clean energy technologies vital to reaching President Biden’s goal of a net-zero emissions future.

CA Lawmakers Push to Remove Nuke Waste from Decommissioned Sites – Reps. Mike Levin and Darrell Issa are targeting nuclear waste at the San Onofre nuclear power plant in California with a revived bill that would modify the Spent Fuel Prioritization Act, to give precedence to the removal of spent nuclear fuel from decommissioned nuclear sites based on the size of the population near the plant, seismic risk and national security concerns. The bill is being cosponsored by Reps. Scott Peters (D., Calif.), Michelle Steel (R., Calif.), Katie Porter (D., Calif.), and Young Kim (R., Calif.). The Spent Fuel Prioritization Act would amend the Nuclear Waste Policy Act to require the Department of Energy to prioritize spent fuel removal from decommissioned reactors based on the size of the population near the plant, the seismic hazard associated with the area, and any national security concerns. The bill does not call for a permanent repository or consolidated interim storage, nor does it authorize the transfer of spent fuel to any non-consenting state or locality. In reintroducing the bill (H.R. 6685) on February 9, Levin and Issa noted that more than 9 million people live within 50 miles of San Onofre, in one of the greatest seismic hazard areas in the country. The lawmakers also pointed out that the plant’s location on Marine Corps Base Camp Pendleton make it a national security concern. San Onofre-2 and -3 were retired in 2013 (San Onofre-1 was closed in 1992), and the plant is currently being decommissioned.

ON THE SCHEDULE THIS WEEK

Ethanol Conference Set – The Renewable Fuels Association holds the National Ethanol Conference (NEC) in New Orleans today and tomorrow.  Since 1996, the NEC has been recognized as the ethanol conference for the latest, timely information on marketing, legislative and regulatory issues facing the industry. With numerous networking opportunities, more business meetings are conducted and contacts made at this conference than at any other ethanol conference.

Discussion to Focus on Europe Energy Security – Today at 10:00 a.m., the Center for European Policy Analysis and the US Embassy in Slovakia host a forum on investing in Europe’s energy security. This discussion will focus on how Europe and its allies can use energy investment to counteract malign influence and bolster their long-term security.

Forum Looks at Arctic – The Woodrow Wilson Center's Polar Institute and the Asia-Pacific Center for Security Studies hold a virtual discussion today at 10:00 a.m., on the Arctic and the geopolitics and subsurface impacts of climate change. Marisol Maddox delves into the ecosystem shifts, marine health dynamics, and race for resources, while former State Department official Evan Bloom shares his insights on geostrategic competition and the quest for good governance in the Arctic region. This webinar provides security practitioners and policymakers with a greater understanding of the transboundary shifts in the Arctic/near-Arctic and the emerging role of the Central Arctic Ocean.

Carbon Capture Coalition Talks Carbon Management – Today at 12:00 p.m., the Carbon Capture Coalition holds an online media briefing on carbon capture projects, industrial emissions and business, labor and NGO climate leadership on carbon management.  The online conversation will feature remarks from Clean Air Task Force International Carbon Capture Director Lee Beck; LaFargeHolcim Director of Government and Public Affairs Virgilio Barrera; AFL-CIO Industrial Union Council Deputy Director Zoe Lipman and The Nature Conservancy Director of Climate and Energy Policy Jason Albritton.

Forum to Look at Low-Carbon Meat Industry – Today at 4:00 p.m., the Breakthrough Institute holds a forum on pathways to decarbonizing the US beef industry and protein consumption generally. Two recent reports by the Breakthrough Institute, The Clean Cow and The Case for Public Investment in Alternative Proteins, analyzed the climate impacts of the meat industry, while proposing potential solutions.

Farm Forum Looks at Green Ag – The Farm Foundation holds a virtual forum on Wednesday at 9:00 a.m. on green energy pitfalls and payouts.

Forum to Look at Eastern Europe Energy Security – The Baker Institute Center for Energy Studies hosts the Visegrad Group, consisting of ambassadors from the Czech Republic, Hungary, Poland and the Slovak Republic, in a forum on Wednesday at 10:00 a.m. to discuss topics including energy security, economic and political integration, and the V4’s role as strategic competition heats up between the EU, China, Russia and the United States at a discussion.

ACCF Hosts French Ambassador – On Wednesday at 12:00 p.m. PM- 12:45 PM ET, the ACCF hosts a conversation with Philippe Étienne, the Ambassador of France to the United States about Franco—American political and economic challenges.

ACP to Host Infrastructure Discussion – On Wednesday at 1:00 p.m., the American Clean Power (ACP) staff hold a discussion on key clean energy funding opportunities related to the Infrastructure Investment and Jobs Act. The webinar will be hosted by ACP’s JC Sandberg, Chief Advocacy Officer, and Gene Grace, Senior Counsel. This webinar will provide information on what funding is available in the new infrastructure law at the program level for wind, solar, transmission, storage, and hydrogen, as well as an overview of who to apply to and key dates so you can take full advantage of these new funding opportunities.

Forum to Look at Affordable Clean Energy – The Center for Strategic and International Studies holds a virtual discussion on Wednesday at 2:00 p.m., on affordable and Clean Energy as part of Sustainable Development Goal #7.

Forum to Look at Global Plastic Challenge – The Wilson Center holds conversation with Margaret Spring, the Chief Conservation and Science Officer at the Monterey Bay Aquarium on Wednesday at 3:00 p.m. Ms. Spring is the chair of the committee that wrote the National Academies of Science plastic report, and will share insights into the U.S. plastic challenge and key interventions to policies to reign in plastic.

Forum Looks at Climate Policy for Middle East, North Africa – The Middle East Institute holds a virtual discussion on Thursday at 9:00 a.m. on the climate policy outlook for the Middle East and North Africa. The event explores how the Middle East and North Africa can capitalize on climate momentum concerning global climate policy leadership and the opportunities and priorities that the region should pursue.

WRI Looks at China Foreign Investment – On Thursday at 9:00 a.m., the World Resources Institute and Boston University to discuss the process of building China Overseas Finance Inventory (COFI), challenges encountered and the key insights we can draw. The webinar will also feature experts in Chinese overseas finance to explore use cases of COFI, key challenges in developing an open-source database, and implications of the quitting overseas coal finance by China.

Energy Economists Set Book Forum – On Thursday at 10:00 a.m., the US Energy Economists hold a book forum with RMI’s Deborah Gordon to discuss her new book "No Standard Oil" focused on pragmatic solutions we can implement today to help rapidly reduce greenhouse gas emissions from the sector.

CSIS to Look at Hydrogen – On Thursday at 11:00 a.m., the CSIS Energy Security and Climate Change Program holds discussion on Hydrogen. A hydrogen economy requires coordination among many actors to set up processes for its transportation as well as its production and use. This event will illuminate efforts to connect supply sources to demand centers and users, internationally or within regional systems, via shipping and pipelines. Speakers will also share perspectives on what it takes to advance the transportation of hydrogen.  Our friend Neil Navin of SoCal Gas is among the speakers. 

Forum to Look at Lithium – The Atlantic Council holds a virtual discussion on Thursday at 12:00 p.m. looking at the company Pure Lithium and next-gen batteries for the energy transition.  The event is part of the EnergySource Innovation Stream series and hosts Emilie Bodoin, founder and chief executive officer of Pure Lithium, to discuss how Pure Lithium’s novel technology goes from lithium salts to lithium metal electrodes in a single step, dramatically reducing manufacturing costs and enabling domestic lithium metal battery production.

Webinar to Look at BBB, Climate – Leading NGOs and other experts hold a web forum on Thursday at 1:00 p.m. looking at BBB and the stakes for climate mitigation, working people and the economy.  Speakers include NWF’s Shannon Heyck-Williams, Marcela Mulholland of Data for Progress, CATF’s Conrad Schneider, Jessica Eckdish of the BlueGreen Alliance, Third Way’s Ryan Fitzpatrick and Jesse Jenkins of the Princeton Zero Lab.

Landrieu, OK Gov Discuss Infrastructure – Washington Post Live holds a conversation on Thursday at 1:00 p.m. that explore the challenges and opportunities that lay ahead with critical infrastructure investment and the impact it may have on job creation and quality of life. White House Infrastructure advisor Mitch Landrieu and Oklahoma Gov. Kevin Stitt discuss the new bipartisan infrastructure law.

Former NRC Chairs to Weigh In on Nukes – The American Nuclear Society holds a virtual event discussing perspectives from past Nuclear Regulatory Commission Chairs on Thursday at 1:00 p.m. In this virtual panel discussion, past chairs will offer perspectives of their time with the commission, its current challenges, and what the future holds for the NRC and nuclear technology.  Speakers include former Chairs Richard Meserve, Stephen Burns, Dale Klein and former Commissioner Bill Magwood. 

Forum to Look at Climate Mitigation -- The Environmental and Energy Study Institute (EESI) will hold a briefing series on Thursday at 3:00 p.m. looking at federal programs that currently deliver a host of climate, environmental, economic, and social benefits nationwide. The second briefing in the series will cover federal energy efficiency programs administered by the U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) that support millions of jobs and deliver direct, meaningful savings to homeowners, consumers, and businesses—all while reducing the stresses and strains on the U.S. energy system. Panelists will discuss how all these benefits play out on the ground from the state, private sector, and federal agency perspectives.

Forum Looks at NordStream2 – George Washington University holds a forum on Friday at 11:00 a.m. looking at the role of Nord Stream 2 in rising tensions in Eastern Europe. This event will take a look at the role of energy in Russia's foreign policy towards central and eastern European countries and the conditions enabling the misuse of energy as political leverage.

IN THE FUTURE

SCOTUS Hears West Virginia v. EPA – The Supreme Court will hear the greenhouse gas case on February 28^th

USEA Looks at Microgrids – The US Energy Assn holds a forum on Tuesday March 1^st looking at the main challenges of unplanned outages and how the ETAP Microgrid Control Solution is used to achieve a smooth transition to islanding mode. Mohammed Zadeh, Senior VP of Protection & Control at ETAP will speak. 

WRI to Look at Infrastructure Law – The World Resources Institute holds a discussion on Tuesday March 1^st at 11:30 a.m. with national and local leaders from the environmental justice community and clean energy experts about how to ensure the infrastructure investments are implemented in an equitable, effective and timely manner.

ELI to Discuss SCOUTS Climate Case – Following the SCOTUS GHG arguments on Monday, the Environmental Law Institute and expert panelists will discuss this important case on Tuesday March 1^st at Noon. The event will discuss the arguments, the case’s impact on environmental law and administrative law, the long-term effects and much more. 

Forum Looks at Advanced Nuclear – On Tuesday March 1^st at 2:00 p.m., the Columbia Center on Global Energy Policy continues its Columbia Energy Technology Revolution Forum, a webinar series hosted by former DOE official Paul Dabbar. The discussion will focus on the state of advanced nuclear development and policies that have been helpful to getting the sector to today’s position. It will also discuss what additional policies, both in the U.S. and internationally, are important to continue the momentum for its prospects.  Speakers include NEI’s Maria Korsnick, Westinghouse CTO        and former DOE nuclear official Rita Baranwal, TerraPower’s Chris Levesque and Mike Laufer of Kairos Power

Biden to Deliver State of the Union – In the latest SOTU Speech ever, the President will address a joint Session of Congress on March 1^st.

CSIS to Host Rep. Curtis – The CSIS Energy Security & Climate Change Program holds a conversation with Rep. John Curtis on Wednesday March 2^nd at 8:30 a.m. looking at the opportunities for American leadership in energy and climate. Curtis will discuss the view from Congress on climate change, his efforts founding and leading the Conservative Climate Caucus, and the outlook for U.S. leadership on energy and climate change.

Senate Enviro Tackle Infrastructure – The Senate Environment Committee will hold an oversight hearing on Wednesday, March 2^nd at 10:00 a.m. to examine implementation of the Infrastructure Investment and Jobs Act by the Department of Transportation.

Forum to Look at Hydrogen, Ammonia as Fuels – Dynamo Hub hosts a virtual event on Wednesday March 2^nd at 10:00 a.m. on powering a clean economy with hydrogen and ammonia.  The panel discussion will address key aspects of developing hydrogen and ammonia projects, debt and equity financing considerations that drive investment in hydrogen and ammonia projects, marketing and contractual considerations, and the existing and future policy landscape in which such projects will be developed.  ClearPath’s Jeremy Harrell and Natalie Houghtalen speak.

BCSE, BNEF to Release 2022 Sustainable Energy in America Factbook – On Thursday March 3 at 10:00 a.m., the Business Council for Sustainable Energy (BCSE) and BloombergNEF (BNEF) will hold an embargoed press briefing on the release of the 10^th annual edition of the Sustainable Energy in America Factbook.  Each year, the Factbook provides comprehensive information and analysis on major sustainable energy facts and trends from the previous year. The Factbook includes energy statistics on market growth and contraction, and analysis of trends in the energy efficiency, natural gas, renewable energy and other clean energy segments. Energy industry leaders will talk about how their businesses and the U.S. economy adjusted to changing circumstances and answer questions about the report and its findings. BCSE President Lisa Jacobson and BloombergNEF Head of Americas Ethan Zindler will preview the report and summarize its key findings. The full speaker list will be shared later this month.

Forum Looks at Barriers to Green Solutions – The American Association for the Advancement of Science’s Center for Scientific Evidence in Public Issues (AAAS EPI Center) and EPA’s Office of Water will hold a panelist conversation on Thursday March 3^rd  at 1:00 p.m. featuring representatives from non-governmental organizations (NGOs) and communities working on green infrastructure and nature-based solutions. Panelists will share their experiences accessing and utilizing federal resources for green infrastructure and nature-based solutions. Additionally, panelists will share opportunities, challenges, barriers, and lessons-learned from the design and planning to implementation to operations and maintenance of green infrastructure and nature-based solutions. 

BPC Hosts EIA AEO Release – The U.S. Energy Information Administration will release its 2022 Annual Energy Outlook at a virtual public event hosted by the Bipartisan Policy Center on Thursday, March 3^rd at 2:00 p.m. EIA releases its Annual Energy Outlook each year to provide updated projections of U.S. energy markets.  The event will feature a presentation by EIA Acting & Deputy Administrator Stephen Nalley and EIA Assistant Administrator for Energy Analysis Angelina LaRose, followed by a Q&A discussion with a panel of EIA experts. AEO provides modeled projections of domestic energy markets through 2050, including cases with different assumptions about macroeconomic growth, world oil prices, and technological progress.

Wilson Hosts Oil Politics Book – On Friday March 4^th at 11:00 a.m., the Wilson Center hosts a book launch of Dr. Jeff Colgan’s Partial Hegemony: Oil Politics and International Order. In his new book, Colgan unpacks the role that oil politics has played in the global order to illustrate that “the” liberal international order is actually made up of subsystems that operate individually and can undergo significant changes without upending international order. 

CERA Week Set – CERAWeek returns to in-person this year on March 7-10 in Houston. 

NRC holds Conference – The Nuclear Regulatory Commission holds its 34^th Annual Regulatory Information Conference on March 8^th to 10^th.

RFF Looks at Carbon Pricing – Resources for the Future (RFF) holds a forum+ on Thursday 10:00 a.m. for a review of trends and trajectories in carbon pricing. In this year’s RFF live event, “The Future of Carbon Pricing: Policy in Action,” a panel of experts will examine the state of carbon pricing around the world today and the prospect for future development and implementation of carbon pricing policies. CSIS’s Joseph Majkut and EDF’s Pam Kiely are among the panelists.

Forum to Review Factbook on Hill – The Energy & Environmental Studies Institute will hold a Congressional briefing on Tuesday March 9^th at noon to discuss the 2022 Factbook. 

McCarthy, Phillips Headline ACORE Forum – ACORE holds its 2022 Policy Forum on March 24^th.  The forum is a deep dive on climate policy, regulatory priorities, grid advocacy, and equity in the transition to a renewable energy economy.  Keynoters will include White House National Climate Advisor Gina McCarthy and FERC Commissioner Willie Phillips.

EPSA to Host Competitive Power Summit – The Energy Power Supply Assn will hold its 2022 Competitive Power Summit on Tuesday March 29^th at the National Press Club.   The summit features a day of expert panels and featured speakers discussing critical issues facing competitive power today – and what it means for America’s energy future.