Energy Update: Week of January 30th
Energy Update - January 30, 2023
Friends,
Super LVII is set for Arizona in two weeks with the Eagles and Chiefs. In the meantime, the NHL holds its All-Star weekend in Miami starting Friday. Always fun to watch some serious 3-on-3 hockey by the world’s best players. Finally, Novak Djokovic won the Australian Open Men’s title (his 22nd Grand Slam) while Aryna Sabalenka took the Women’s title.
The big news in Congress was Friday’s passage of the SPR bill voting, even with the open rule. POLITICO's Josh Siegel reports the House will likely move to permitting according to House Resources Chair Bruce Westerman, who says they will have legislation by late March. To that end, 33 groups lead by the American Conservation Coalition and the US Chamber of Commerce calling for permitting reform among other things.
On the hearing side, tomorrow, the House Energy & Commerce Committee holds its first hearing of the 118th Congress focused on restoring American energy dominance. Then Thursday, DOE’s David Turk heads to Senate Energy to discuss IRA implementation. Also Senate Environment organizes on Wednesday.
OPEC+ ministers meet Wednesday and are likely to endorse maintaining their current crude output levels at their meeting this week as hopes of higher Chinese demand driving an oil price rally are balanced by worries over inflation and a global economic slowdown. And on Friday in NYC, our long-time friend Andy Revkin of the Columbia Climate School holds a conversation with progressive PR legend David Fenton.
I am out in San Francisco today and tomorrow at the BNEF Clean Energy Summit visiting with my reporter friends and Gevo CEO Patrick Gruber, one of the largest Sustainable Aviation Fuel (SAF) producers in the industry. Bad weather in Denver cancelled my second flight so I am scrambling this morning to still get to Cali. I am not a happy camper after a night in the Denver airport, 5:05 a.m. flight to Sacramento, -5 temps and sitting in the de-icing line…
There are happy campers out here Cali today though and its SoCal Gas, who hosted California Lt Gov Eleni Kounalakis and other state officials this morning at their hydrogen-powered home in Downey, CA. The LG officially powered on the [H2] Innovation Experience, North America’s first-of its kind, clean, renewable hydrogen microgrid and home. The [H2] Innovation Experience offers a look at how clean, renewable hydrogen microgrids can reliably power entire neighborhoods and businesses, day and night throughout the year. The [H2] Innovation experience microgrid has the potential to deliver reliable and renewable energy around-the-clock to more than 100 homes or businesses, rain, or shine, for as much as seven days.
FRANKLY SPOKEN
Kevin Book, managing director at ClearView Energy Partners, an independent research firm, told The Washington Post’s Climate 202 for a story on the IRA.
ON THE PODCAST
Volts’ Roberts Talks Gas Stoves with Advocate Sage Welch – In his latest Volts podcast, David Roberts digs into the gas stoves controversy with advocate Sage Welch of Sunstone Strategies, a climate communications firm that's been supporting electrification policies since 2018. The podcast is entertaining and is a reasonable discussion. I only wish I could have been in studio with them. Welch and I have battled for years now over the science of gas stoves, public opinion and regulatory actions. I am hoping Dave will host me for more!!!!
IEA Expert Joins Columbia Podcast – On the latest Columbia Energy Exchange podcast, Bill Loveless talks with Timur Gül, head of the Energy Technology Policy Division at the International Energy Agency and leads the Energy Technology Perspectives report. The flagship series serves as the world’s first global guidebook for the clean technology industries of the future. The 2023 version was just released earlier this month. Timur provides an insider’s look into the report. He and Bill discuss how the key findings fit into the current geopolitical atmosphere of energy markets. They also talk about the major opportunities both globally and domestically for technology innovation.
FUN OPINIONS
Coy: Should Government Try to Influence Oil Prices – Our friend Peter Coy, long-time economics columnist now with the NYT writes in his column this week that he has concerns about the Strategic Petroleum Reserve shrinking. While it shrank by about nine million barrels under President Obama and 57 million barrels under President Donald Trump, those numbers look insignificant with President Biden. In his first 21 months in office, the nation’s emergency supply of crude oil fell by 240 million barrels, according to EIA. It’s not a black-and-white issue. After talking to people on both sides, Coy writes big sales of crude from the SPR when prices are high can be justified if the reserve can be replenished cheaply later, so the government comes out ahead on the transactions, and if the sales can be managed in a way that is not — and does not look — politically motivated. The first criterion is probably achievable most of the time. The second is trickier.
FROG BLOG
Curtis/Park Record Talk Environment – In an Editorial in the Park Record, editors detailed an hour-long conversation it had with Conservative Climate Caucus leader Rep. John Curtis. They write Curtis says he wants to protect many of the things Parkites treasure. If there’s a difference, it’s in how those things are defined and, even more, in the ways they’re protected. On the environment, for example, Curtis has bona fides as the founder of the Conservative Climate Caucus, he attended the recent COP27 conference in Egypt and he is also not shy about saying he believes some fossil fuels and nuclear power belong in a mix of sources that eventually can take us to a renewable future. He could easily frustrate climate activist Greta Thunberg, if she had the time to notice such things, but it’s a good discussion to have, here and elsewhere.
FUN FACTS
Proved reserves of natural gas increased 32% in 2021: Energy Information Administration (1/30/23) Reports: Proved reserves of natural gas in the United States grew to a new record of 625.4 trillion cubic feet (Tcf) in 2021, a 32% increase from 2020, according to our recently released Proved Reserves of Crude Oil and Natural Gas in the United States, Year-End 2021 report. U.S. proved reserves had previously decreased 4% in 2020 as a response to prices that fell with decreased consumption during the first year of the COVID-19 pandemic. At year-end 2021, however, five of the eight states with the most proved reserves of natural gas each reported new record volumes, driving the growth nationally.
IN THE NEWS
House Oversight Chair Addresses Press Club – Rep. James Comer (R-KY) said the Biden Administration will keep its focus on rooting out waste, fraud, abuse, and mismanagement in the federal government, all-the-while holding the Biden Administration accountable at a Press Club in-person Headliners Newsmaker this morning. Comer, the new chairman of the House Oversight Committee announced five main issues that he plans to make his priority: identifying fraud and mismanagement of COVID-19 recovery funds, investing the Biden family for alleged “influence peddling,” the crisis on the Southern border, the origins of the COVID-19 pandemic, and the U.S. withdrawal from Afghanistan. Despite claims that Comer’s agenda is filled with “political stunts and partisan warfare,” he kept to his guns, stressing the previous two years lacked significant administrative oversight and the committee must return to its values of cutting waste and abuse from government. He claims its his duty to have the back of the American taxpayer and promises that the next two years will substantive. Comer too made an open appeal to the media in being a partner in oversight, that they must work together make sure the administration is considered. At the end of the day, Comer is “just an average guy, who’s fed up with public corruption and excessive spending.” He sees many cases in which both sides of the aisle can work together during hie tenure, namely new protocols in handling confidential documents when Executive branch officials leave office. Comer too commented on the ongoing debt ceiling debate. He made it clear that the U.S. will not default on its debts and we must be serious about budget cuts—yet, he reassured that social security and Medicare/Medicaid will not be touched.
House Passes SPR Limitation Bill – The House passed the Strategic Production Response Act on Friday after dispensing with a large number of amendments. The legislation would tie the release of oil from US emergency stockpiles to more federal oil and gas production. The restriction wouldn’t apply in cases where there is a severe energy supply disruption, The measure is not expected to make it far in the Senate, especially since the White House has already said Biden would veto the legislation. CRES’s Heather Reams said the US is among the “most environmentally friendly and carbon efficient producers in the world, and this bill highlights the value of U.S. energy production over dirtier production by adversarial nations like Russia and Venezuela.”
Biden Blocks Copper Mining in MN – In another sign of inconsistency, the Biden Administration said it will establish a 20-year moratorium on mining upstream from Minnesota’s Boundary Waters Canoe Area Wilderness, a vast preserve of lakes and woods that has been at the center of a fierce dispute over a proposed copper and nickel mine. The plan withdraws from mineral leasing about 225,504 acres of watershed in the Superior National Forest. It seems aimed at a proposed bid from Twin Metals Minnesota, which had sought to build an underground mine. Twin Metals said it was “deeply disappointed and stunned” by the decision. The mineral deposits “are vital in meeting our nation’s goals to transition to a clean energy future, to create American jobs, to strengthen our national security and to bolster domestic supply chains.” So much for domestic materials for EVs.
Equinor and bp Bid for Third New York Offshore Wind Solicitation – Equinor and bp jointly bid into New York’s third offshore wind solicitation (NY3), building on their strong commitment to deliver renewable energy for New Yorkers, create sustainable jobs, boost the economy across the state, and support a just transition to renewable energy. Equinor and bp’s bid, submitted to the New York State Energy Research and Development Authority (NYSERDA) in response to the state’s most recent offshore wind energy solicitation, would provide New York with renewable energy from the Beacon Wind 2 lease area located approximately 60 miles off the eastern tip of Long Island. Capable of producing 1,360 megawatts of offshore wind energy, Beacon Wind 2 has the potential to power approximately one million New York homes, generate more than $11 billion in new economic activity in the state over the project lifecycle, and create thousands of jobs. Power from Beacon Wind 2 would complement the 3.3 GWs of potential offshore wind generating capacity for New York State currently under development by Equinor and bp with the Empire Wind 1 and 2 and Beacon Wind 1 projects. As one of the most mature projects offered for NY3, Beacon Wind 2 is well on track to help New York realize its ambition to generate at least 70% of the state’s electricity from renewable energy sources by 2030.
Groups Release Electric Bus Implementation Guide – SAFE and the Electrification Coalition have released the V2X Implementation Guide: Implementation Guide and Mutual Aid Agreement Template for Using Vehicle-to-Everything-Enabled Electric School Buses as Mobile Power Units to Enhance Resilience During Emergencies. This guide describes the potential to use V2X-enabled ESBs as alternative emergency backup power sources during outages. It includes detailed steps for emergency managers and responders and other key stakeholders to deploy bidirectionally enabled ESBs to provide emergency backup power. The adoption of electric school buses (ESBs) is rising as school districts and fleet operators become aware of the significant benefits: clear air for student passengers, savings on bus fuel and maintenance costs, and reduced carbon emissions. ESBs are also gaining attention for their potential to enhance critical electric infrastructure resilience and reliability.
LNG to Expand in US – BloombergNEF says US LNG export capacity is expected to increase more than twofold to 186.2 million short tons per year by 2027, surpassing Qatar's, with five projects on track for a final investment decision this year, according to. US projects accounted for 89% of LNG contracting activity in 2022, as flexible contract terms, transparent pricing and supply reliability give US developers a competitive edge. BNEF expects five projects to reach final investment decision this year. Three are in the US – Venture Global’s Plaquemines LNG (Phase 2), Sempra’s Port Arthur LNG (Phase 1) and NextDecade’s Rio Grande LNG (Phase 1) – while the other two are Qatar Energy’s North Field South Expansion and Pacific Energy’s Woodfibre LNG in Canada.
PA Report Says Abandon Wells Are Problem – A new report by Pennsylvania's Department of Environmental Protection says conventional oil and gas drillers improperly abandoned thousands of additional wells here between 2017 and 2021 — often with impunity. Abandoned wells leak the greenhouse gas methane, which contributes to climate change, and drillers are required to report and plug them. Otherwise it falls to the state, "the plugger of last resort," which already has an estimated 200,000 wells to close at an average cost of $30,000 a piece. A representative for the conventional oil and gas industry, an older form of extraction that differs from deep-well fracking, disputes the findings
Advanced Hydrogen Mobile Fueler Deployed in CA – Air Liquide and Foothill Transit are deploying the first operational advanced hydrogen mobile fueler (AHMF) in Pomona, Calif. Demonstrating its mastery of the hydrogen value chain, the fueler is supplied by Air Liquide’s largest liquid hydrogen production plant globally, based in North Las Vegas, Nevada. The technology demonstrated by this equipment enables and accelerates the adoption of hydrogen mobility for medium- and heavy-duty vehicles. The AHMF is a hydrogen mobile fueling station “on wheels”, facilitating a complete, fast-fueling experience. Fully integrated into a 45-foot split axle trailer, providing a small footprint and ease of use, the fueler has the capacity to support small fleets of medium- and heavy-duty vehicles. The fuel dispensed by the AHMF includes supply from Air Liquide’s North Las Vegas hydrogen production plant, which came online May 2022. In addition to Air Liquide hydrogen fueling technology, the system leverages Air Liquide's sustainable, cryogenic cooling technology which can store renewable energy as cryogenic liquids. The AHMF uses liquid nitrogen in place of electricity for process cooling to perform fast hydrogen fueling.
ON THE SCHEDULE THIS WEEK
Midwest Solutions Conference Set for Chicago – The Midwest Energy Efficiency Alliance hosts the Midwest Energy Solutions Conference in Chicago through Wednesday. The annual event brings together the region's top energy efficiency innovators and decision makers for three days of networking and panel discussions on a wide range of topics, including federal and state legislative updates, grid-integrated efficient buildings and community engagement
House Energy Tackle Energy in First Hearing – The House Energy and Commerce Committee will hold its first hearing of the 118th Congress tomorrow at 10:00 a.m. to focus on restoring American energy dominance and strengthening US economic, environmental and national security. Witnesses will include former DOE Science Advisor Paul Dabbar and our friend Bob McNalley.
Forum Looking at Storage – The Clean Energy States Alliance holds a forum tomorrow at 1:00 p.m. assessing the value of energy storage for states. The event will discuss a new report, Energy Storage Benefit-Cost Analysis: A Framework for State Energy Programs. The report provides guidance for state energy agencies in such areas as how to quantify the value of energy storage services, which cost-effectiveness test to use, how to pick a discount rate, and how to ensure an equitable process that takes stakeholder input into account. In this Clean Energy States Alliance webinar, report authors Liz Stanton and Bryndis Woods of Applied Economics Clinic will discuss the report’s findings with CESA’s Todd Olinsky-Paul.
Forum to Look at Climate, Security – The American University’s School of International Service holds a forum tomorrow at 4:00 p.m. looking at the effects of Climate Change on Security. Joshua Busby explains, with case studies, why climate leads to especially bad security outcomes in some places but not others.
USEA Forum Looks at DER – On Wednesday at 10:00 a.m., USEA's Energy Management webinar will be hosted by USAID's Bureau for Development, Democracy, and Innovation (DDI), with experts from PJM Interconnection and XM. Invited speakers will include Jaime Alonso Castillo Marin from XM's Office of Planning and PJM Interconnection's Vice President of Federal Government Policy, Craig Glazer and Lead Business Solutions Analyst, Scott Baker.
Forum to Look at ‘Buy Clean’ Programs – The Environmental Law Institute holds a forum on Wednesday at 12:00 noon. Featuring an update on “Buy Clean,” emissions, LCAs, EPDs and funding. With merely 7 years remaining to meet 2030 emission targets, where do we stand with new policies and legislation? Panelists will provide an update on Buy Clean policy, green funding, the status of carbon emissions, and a primer on environmental product declarations. C2ES’s Chris Kardish and Ken Berlin of the Atlantic Council are among the speakers.
CRES Looks at Energy Innovation – Citizens for Responsible Energy Solutions (CRES) holds a forum on Wednesday at 4:00 p.m. for the first event in its 2023 "Harnessing American Innovation" discussion series. The series will focus on technology solutions and opportunities for reducing global emissions.
Globally, industry accounts for approximately 24% of direct greenhouse gas emissions. American companies have led the way in improving the efficiency of the industrial sector, as U.S. manufactured products are currently 40% more emissions efficient than the world average. Speakers include Erik Oswald of ExxonMobil Low Carbon Solutions, Antora Energy’s Jordan Kearns and ClearPath’s Colleen Moss.
DOE’s Turk Heads to Senate Energy – The Senate Energy Committee holds a hearing on Thursday at 10:00 a.m. on DOE implementation of the IRA. The hearing will feature Energy Dep Secretary Dan Turk.
Forum Looks at Climate Impacts in Middle East – The Middle East Institute and the Tahrir Institute for Middle East Policy holds a forum on Thursday at 10:00 a.m. assessing MENA’s 2022 climate implications and exploring policy opportunities for 2023. The event features a discussion of opportunities for more meaningful and transformative climate action in the region for 2023.
Forum to Look at NETL Carbon Capture Study – The US Energy Assn holds an event on Thursday at 1:00 p.m. on NETL’s updated performance and cost estimates for power generation facilities equipped with carbon capture. Based on new analyses by the National Energy Technology Laboratory, this presentation will review the performance and cost assumptions for the solvent-based post-combustion capture systems used with natural gas combined cycle and pulverized coal plants.
Forum Looks at Green Hydrogen – The Environmental Law Institute holds a forum on Thursday at 3:00 p.m. exploring green hydrogen's role in our energy future. Green Hydrogen presents an opportunity to aid the transition to net-zero, with the potential to save the 830 million tons of CO2 that are emitted annually when this gas is produced using fossil fuels. Hydrogen is storable, versatile, and sustainable, yet challenges remain to its adoption. DOE’s Sunita Satyapal leads the panel.
RAND Looks at Air Force Climate Resilience – The RAND Corporation holds a virtual discussion on Thursday at 3:00 p.m., on planning for climate resilience in the Air Force. Speaker will include
Revkin Host Conversation with Fenton – On Friday at 1:00 p.m. in NYC, our long-time friend Andy Revkin of the Columbia Climate School holds a conversation with David Fenton, who, through more than 40 years as a social-change strategist and publicist, helped craft a host of high-profile campaigns – from ending apartheid and New York fracking to making the case for the Green New Deal. Drawing on his new book, "The Activist’s Media Handbook," Fenton will describe his learning curve navigating massive changes in the media landscape and offer guidance for anyone trying to make information matter.
IN THE FUTURE
Hydrogen-Fuel Cell Seminar Set for Long Beach – The Fuel Cell & Hydrogen Energy Assn holds its 2023 Hydrogen & Fuel Cell Seminar in Long Beach on February 7th to February 9th. The event includes a half-day workshop sponsored by the Department of Energy, morning plenary program featuring talks from government and private sector leaders, over 120 afternoon breakout presentations. Speakers include DOE’s Jeff Marootian, FCHEA head Frank Wolak and my colleague Tim Urban, among many others.
NASEO 2023 Energy Policy Conference Set – The NASEO 2023 Energy Policy Outlook Conference starts next Tuesday February 7th and run to Friday February 10th in The event brings together state and federal energy policymakers, private sector leaders, and other change makers for in-depth discussions of the critical investments needed for decarbonized, affordable, and resilient electricity, transportation, and building systems, as well as the latest developments from Congress and the Administration.
Forum Looks at Clean Energy Opportunities for Indigenous People – On February 8th at 6:00 p.m., the Center on Global Energy Policy at Columbia University’s School of International and Public Affairs will feature a panel of experts for a discussion about opportunities and risks for indigenous communities in the North American energy transition. The panel will discuss the Biden administration's efforts to strengthen indigenous consultation and environmental justice around natural resources and renewable energy development with US native communities. They will also explore how Canadian indigenous leaders are developing equity-based partnerships to develop renewable energy and critical minerals projects under the principles of Free Prior and Informed Consent–and whether such partnerships can meet the needs of indigenous groups in the US as well as ESG-focused investors and project developers.
Governors Talk with POLITICO –POLITICO holds a forum on Thursday February 9th at 9:00 a.m. at World Wide Technology's D.C. Innovation Center for The Fifty: America's Governors. In a divided Congress, more of the legislative and policy enforcement action will shift to the states, ensuring Governors set the agenda for much of the country. Among the topics will be being on the frontlines of climate change.
Granholm Headlines NARUC Winter Policy Meeting – The 2023 NARUC Winter Policy Summit is set for February 12-15th in Washington, DC. The annual event convenes regulators, policymakers, industry stakeholders, and advocacy organizations to explore challenges and opportunities facing utilities in 2023. Among the speakers will be FERC Chair Willie Phillips, Energy Sect Granholm and Senate Energy Chair Joe Manchin See the full agenda for the event.
Forum Looks at Climate, Africa – The Center on Global Energy Policy at Columbia University's School of International and Public Affairs holds a panel discussion on Wednesday February 15th at Noon on African nations and the impacts of climate change.
Distributed Wind Forum, Lobby Day Set – The Distributed Wind Energy Association (DWEA) holds Distributed Wind 2023 on February 27th at the Residence Inn in Arlington, VA. The event is the tenth annual where the leaders of the distributed and community wind industry convene to showcase this sector of the wind industry to an audience of policy makers, agency staff, and renewable energy industry leaders.
Annual Ethanol Forum Set – The Renewable Fuels Association holds its 28th annual National Ethanol Conference in Orlando from February 28th to March 2nd. The 2023 event theme “Ready. Set. Go!“ reflects the US ethanol industry’s momentum moving forward into new markets and opportunities. The NEC is the nation’s most widely attended executive-level conference for the ethanol industry. There is much to learn and experience at the NEC, where sessions featuring globally renowned speakers are interspersed with numerous networking opportunities to help the industry connect and collaborate.
CERA Week Locked In – The energy industry’s biggest event, CERA Week will be held on March 6th to March 10th in Houston. CERAWeek brings together global leaders to advance new ideas, insight and solutions to the biggest challenges facing the future of energy, the environment, and climate. CERAWeek is widely considered to be the most prestigious annual gathering of CEOs and Ministers from global energy and utilities, as well as automotive, manufacturing, policy and financial communities, along with a growing presence of tech. Speakers include White House Advisor John Podesta, former Energy Secretaries Ernest Moniz (now at EFI) and Dan Brouillette (now at Sempra Infrastructure), State’s Amos Hochstein, IEA’s Fatih Birol and dozens of energy CEOs.
ACORE Policy Forum Set – The annual ACORE Policy Forum on March 9th in Washington, D.C. with the annual ACORE Awards Gala the evening before. The event will feature important discussions around ensuring the success of the Inflation Reduction Act, building the clean energy workforce of tomorrow, and what is needed to catalyze a domestic clean energy supply chain and upgraded electric grid to meet our decarbonization goals and achieve the clean energy transition.
Granholm to Headline Energy Track at SXSW Conference – The South by Southwest Festival and Conference will be held on Friday March 10th to Sunday March 19th. The Energy track runs From Friday to Sunday and will feature Energy Secretary Jennifer Granholm. Our friend Morgan Bazilian of the Payne Institute at the Colorado School of Mines will discuss the EV battery supply chain, Jane Stricker of the Houston Energy Transition Initiative will look at energy Transition issues and another friend Julian Spector of Canary Media will also talk energy. There will also be a Climate and Transportation track. The SXSW Conference provides an opportunity for the global community of digital creatives to encounter cutting-edge ideas, discover new interests, and network with other professionals who share a similar appetite for forward-focused experiences.
SAFE Summit To Address EV Supply Chains, Infrastructure – Senior business leaders from the world’s leading automobile, mining, and transportation corporations as well as White House and senior government officials are scheduled to headline the SAFE Summit: A Pathway to Electrification from Minerals to Market, on March 28-29th in Washington, D.C. The summit aims to seize the historical moment provided by the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act. The two-day event, co-hosted by SAFE and the Electrification Coalition, will offer practical next solutions that will, in collaboration with U.S. allies and partners, build out robust and reliable supply chains and supporting infrastructure for the mass adoption of electric vehicles (EVs) and the broader energy transition. John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation will address the summit on the Biden Administration’s agenda and priorities; as will Jigar Shah, Director of the Loan Programs Office at the Department of Energy. Top-tiered sponsors and speakers include FedEx Chairman Fred Smith, Nissan Motor Company, and Teck Resources Limited CEO Jonathan Price. Additional SAFE Summit sponsors include Lithium Americas, Lyten, The Metals Company (TMC), and DLT Labs.
MIT Energy Conference Set – MIT holds its annual energy conference on April 11th and 12th in Boston.