Energy Update: Week of July 10th

Friends,

We are back in action after a great/relaxing July 4^th recess. Wimbledon rolls through its round of 16 while the LPGA Women’s US Open crowned Allisen Corpuz at Pebble Beach by three shots, her first major title. And for those of you who love cycling and the Tour de France: what an amazing first week with an incredible set of stages in the Pyrenees. Wow, those guys are amazing. 

Before rolling into the action, all the cycling talk reminds me to mention that I am only four weeks away from the 100-mile Pelotonia Charity ride in Columbus on August 5^th.  It is such a great cause at the OSU James Cancer Center where 100% of donations go directly to critical cancer research. Please help by making a donation if you can as any amount helps.

President Biden was in England today before heading to NATO Meetings in Lithuania. He met with King Charles this afternoon (GMT) for tea and there was some discussion of climate. Of course, NATO meetings will have heavy focus on Ukraine and energy impacts.

We are heading for action on the National Defense Authorization Act this week with the House Rules Committee meeting tomorrow to debate how the House will consider it. Significant climate and energy amendments including several on critical minerals. For a rundown, you can check in with my colleague Joe Brazauskas who is tracking the action.  Speaking of critical minerals, the International Seabed Authority goes back to work in Jamaica this week on rules for deep-sea mineral collection. Also, over the weekend, Senate Majority Leader Schumer said in a letter to his colleagues that permitting reform will be a focus ahead of the August recess. How that really works is unclear for those of us that know the challenges ahead.

On the Hill, House hearings include Climate Envoy John Kerry at House Foreign Affairs on Thursday, House Resources tackling coal leasing on Wednesday and House Financial Services examining ESG issue impacts in hearings on Wednesday and Friday.

Tomorrow, API, the US Chamber’s Marty Durbin and others hold a presser to discuss the EPA’s fuel economy rules. At 11:00 a.m., USEA holds a media conversation on the future of natural gas with AGA, EEI and NRECA. And finally at noon, there is a media avail on impending hydrogen 45V tax status after hydrogen execs meet with congressional staff at the CVC at Noon. On Wednesday, the bipartisan Congressional Disaster Preparedness and Recovery Caucus is bringing utilities to the Hill to discuss hurricane preparedness as hurricane season starts to ramp up. Duke Energy, Entergy, Florida Power and Light, Southern Company and TECO Energy will participate in a forum organized by the Edison Electric Institute.

 

MLB All-Star Game tomorrow in Seattle and Home Run Derby TONIGHT! WHAMMY!!!

                                                                                                           

FRANKLY SPOKEN

“While not an explicit ban on internal combustion engines, this proposal is a de facto ban that will eliminate competition, distort the market and restrict consumer choice, while being potentially more costly to taxpayers.

API Chair Mike Sommers on EPA’s proposal for new tailpipe emissions standards for light-duty and medium-duty vehicles.

 

ON THE PODCAST

Columbia Podcast Hosts Offshore Wind Discussion – In this week’s Columbia Energy Exchange podcast, host Bill Loveless talks with Lars Thaaning Pedersen about the Vineyard Wind project and the policy support that has kept it moving forward. They also discuss the challenges of developing offshore wind projects in the US.

 

FUN OPINIONS

The Surprising TX Renewable Battle – In her column in The Washington Post, Catherine Rampell looks at the explosive growth of renewable energy in Texas, where climate, market forces and federal incentives have combined to boost wind and solar power generation across the state. In past summers, Texas has struggled to keep lights and air conditioners running for a variety of reasons. This summer, the state seems to have so far figured it out — and renewables are part of the explanation.  Despite this success, some legislators have tried to slow the move to renewables at the very moment that wind and solar are helping to meet the state’s energy demands. Most of these efforts, she writes, have been foiled so far. But the battle for renewables, at least in Texas, is a long way from over. 

 

FROG BLOG

Economist Tackles Deep Signals Minerals – An article and editorial in The Economist says deep-sea mining may soon ease the world’s battery-metal shortage. The IEA says the world will add as much renewable power in the next five as it did in the past 20. All that means batteries, and lots of them—both to propel the cars and to store energy from intermittent renewable power stations. Demand for the minerals from which those batteries are made is soaring. Nickel in particular is in short supply. The element is used in the cathodes of high-performance electric-car batteries to boost capacity and cut weight. IEA calculates that, if it is to meet its decarbonization goals, the world will need to be producing 48m tons of the stuff every year by 2040, around 19 times more than it manages today. That adds up to between 300m and 400m tons of metal in total between now and then.

 

FUN FACTS

Methane Emissions: Oil and gas methane emissions by total (bar) and intensity (dot) of production.

 

IN THE NEWS

Court Overturns DOE Boiler Rule – In another sign of DOE overreach, the D.C. Circuit Court on Friday vacated an its rule requiring efficiency upgrades for commercial packaged boilers used to heat commercial and institutional buildings like schools and hospitals, saying the department once again failed to offer a sufficient explanation related to its analysis and to seek additional input from industry. AHRI led natgas and manufacturing industry groups in a challenge to the 2020 rule, contending a supplement added last year failed to meet a previous court demand to provide the reasoning justifying the need for the new efficiency measures. The groups also complained the agency did not meet the legal requirements for providing notice and comment, and they asserted the department failed to meet the clear and convincing standard required by the EPACT. The Air-conditioning, Heating, and Refrigeration Institute today applauded the decision: "We are heartened by the DC Circuit's decision," said AHRI President and CEO Stephen Yurek, who added that, "we look forward to working with the Department of Energy on a rule that works for manufacturers and consumers alike. "

SPR Refill Continues – DOE has initiated a bidding process to procure approximately 6 million barrels of sour crude in order to replenish the Strategic Petroleum Reserve. Bidders have until July 19 to submit proposals, and deliveries will take place in October and November.

Permian at Lower Levels but Still Outproducing Saudis – An inventory of oil wells drilled but uncompleted in the Permian Basin is down 45% over the past three years and is now at its lowest level in about a decade. Nevertheless, the Permian is now out-producing Saudi Arabia's Ghawar Field. The production increase is due almost entirely to greater efficiencies with older finished (aka "drilled") wells; eventually, rig count will have to increase for oil production to continue increasing.

Mercedes Adopts Tesla Charger – Mercedes-Benz is the latest automaker to adopt Tesla’s charging design. The company said it would begin manufacturing electric vehicles with the North American Charging Standard technology, developed by Tesla, starting in 2025, with adapters available to access Tesla chargers next year. It joins American rivals Ford and GM to adopt NACS as they try to expand their network of fast-chargers.

2022 was Record Year for Global LNG Trade – Expanded liquefaction capacity and rising liquefied natural gas demand in Europe helped drive global LNG trade up by 5% year over year to a record average of 51.7 Bcf/d in 2022, according to CEDIGAZ data cited by the Energy Information Administration. US LNG exports hit 10.2 Bcf/d last year, up 16% from 2021 -- the largest growth among exporting nations, while Europe experienced a 65% surge in LNG imports compared to the previous year.  

 

ON THE SCHEDULE THIS WEEK

ISA Meeting on Deep Sea Minerals to Start – The 28^th Session of the International Seabed Authority (ISA) Assembly and Council (Part II) will take place from today through July 21 and the ISA Assembly will meet from July 24-28 in Kingston, Jamaica.

AGA’s Harbert Addresses LNG Conference – Today through Thursday, LNG 2023 will be held in Vancouver, Canada.  AGA Karen Harbert will address the conference tomorrow and Cheniere’s Jack Fusco speaks as well. The 20^th International Conference provides a platform for the global LNG industry and key stakeholders to discuss, debate and showcase the latest industry developments and opportunities.

Forum Aims at COP28 – The Center for Climate and Energy Solutions (C2ES) is leading a project aimed at achieving an ambitious and environmentally effective outcome from the Global Stocktake (GST) at COP28 that leverages COP28 to drive needed real-world action assists countries to implement existing climate commitments facilitates the raising the ambition of their next round of commitments while strengthening and energizing international cooperation. Today through Wednesday, C2ES, EDF, and Transforma, in coordination with the authors of a new paper on the topic will discuss how the GST can help deliver a meaningful and effective response to the challenges of climate change across mitigation, adaptation and loss & damage (L&D), and means of implementation.

ELI Looks at Sustainable Aviation Fuels – Today at 1:00 p.m., the Environmental Law Institute holds a forum on decarbonization of the aviation sector looking at goals, pathways and policies. The aviation sector represents nearly 3% of global carbon emissions, and there are myriad efforts underway to decarbonize the sector. Numerous Sustainable Aviation Fuel technologies are under development, and ambitious goals being set by the government and aviation industry.  Among the speakers will be DOT’s Annie Petsonk, Southwest Airlines’ Mela Buzzetta and Growth Energy’s Joe Kokesh. 

Hydrovision Set for Charlotte – HYDROVISION International 2023 is set for Charlotte Tomorrow to Thursday. Joseph Kessler, executive vice president and chief operating officer of the New York Power Authority, will speak during the Utility Executive Roundtable. HYDROVISION will also host the 3^rd Annual Global Symposium for Large Hydropower Plant Operators.

POLITICO Hosts Kirby on FAA Reauth – POLITICO holds a forum tomorrow at 8:30 a.m. to discuss what will make it into the final reauthorization bill, explore what could get dropped, gauge the reaction of key stakeholders and examine how reauthorization will reshape FAA’s priorities and authorities.  United Airlines CEO Scott Kirby will be featured in the conversation.  I suspect Kirby will also address sustainable aviation fuels as well.

USEA to Discuss NatGas – The US Energy Association will hold a virtual press briefing tomorrow at 11:00 a.m. to examine the future of natural gas and its controversies. A panel of experts will be questioned by a panel of reporters who cover energy. There will be opening remarks by new USEA President and CEO Mark Menezes. Experts include former DOE official Bob Gee, NRECA CEO Jim Matheson, AGA market expert Richard Meyer, EEI’s Richard McMahon and David Naylor of Rayburn Electric Cooperative in Rockwall, TX.  Reporters will include E&E’s Peter Behr, Matt Chester of Energy Central, WSJ’s Jennifer Hiller, veteran energy reporter Rod Kuckro and Ken Silverstein of Forbes.

E&E Reporters Look at Farm Bill – Tomorrow at 1:30 p.m., E&E News hosts a forum featuring reporters Marc Heller, Kelsey Brugger and Garrett Downs on the latest developments in Farm Bill negotiations, provisions in jeopardy and expectations ahead of the September 30th expiration date.

Forum Looks at Nuclear Innovation – The Atlantic Council Global Energy Center and Good Energy Collective hold a forum virtually tomorrow at 6:30 p.m. for the launch of the report “The imperative of the Versatile Test Reactor for nuclear innovation.” In this report, authors Jackie Toth and Khalil Ryan argue that the United States will lose its competitive edge against adversaries (especially Russia) if it lacks a fully realized nuclear energy innovation ecosystem, of which the VTR is a crucial component.

IEA Looks at Critical Mineral Markets in Review – At 9:30 a.m. Paris Time on Wednesday, the International Energy Agency holds a virtual media briefing on a new report focused a review of critical mineral markets. IEA Executive Director Fatih Birol and Chief Energy Economist Tim Gould will discuss the report.

Wilson Leads Critical Mineral in Arctic Dialogue – On Wednesday and Thursday, the Wilson Center, in partnership with the University of Alaska, Department of Energy's Arctic Energy Office, and RAND Corporation, is hosting a two-day dialogue about critical minerals in the North American Arctic. The dialogue will develop policy recommendations for development of critical mineral resources in the Arctic, in the context of US national security, energy, climate, and technology goals. This dialogue will be solutions-oriented, producing actionable policy and investment recommendations. There are three distinct elements of the agenda: six individual working sessions, focusing on community ownership, financing, infrastructure, regulatory frameworks, supply chains, and workforce development; a tabletop exercise quantifying risk prioritization in minerals development, and three public keynote sessions. Sen. Lisa Murkowski is among the Keynote speakers.

House Financial Services Tackles Enviro, Social Policy in Financial Regs – The House Financial Services Committee holds a legislative hearing on Wednesday at 10:00 a.m. examining environmental and social policy in financial regulation. AEI’s Ben Zycher are among those testifying.

CSIS to Look at Methane Emissions – The Center for Strategic and International Studies holds a forum on Wednesday at 10:00 a.m. on Methane reductions in the oil and gas sector and regulations to spur methane cuts in the United States and the European Union (EU). These rules will have similar objectives but impose different requirements, including how operators measure, report, and verify their methane emissions. Speakers will include Matthew Baldwin (Directorate-General for Energy, European Commission) and Rick Duke (U.S. Department of State), who will discuss the state of transatlantic cooperation on methane reductions and implications for global gas.

House Resources Focuses on Coal Leasing – On Wednesday at 10:15 a.m., the House Resources’ Energy and Mineral Resources Subcommittee holds a hearing that will examine the Biden Administration's record on Federal coal leasing.

Forum Looks at Weatherization, Solar Partnership – The Clean Energy States Alliance holds a forum on Wednesday at 12:00 p.m. on partnering to reduce energy burdens.  The event will look at a Michigan Community Solar and Weatherization Pilot. The case study highlights the collaborative effort between Michigan’s energy office, local community action agencies, and utilities to develop three separate pilot programs to reduce energy burdens and maximize the impact of existing weatherization programs.

Forum Looks at Climate, Nuclear Deterrence – On Wednesday at 1:30 p.m., the Carnegie Endowment for International Peace holds a discussion on a new report, "How Climate Change Challenges the U.S. Nuclear Deterrent.”  The event features a discussion on climate change challenges to nuclear weapons with Tom Ellison and Jamie Kwong, who will share findings from her new paper.

Sen. Cramer Headlines CRES Forum on China – On Wednesday at 4:00 p.m., Citizens for Responsible Energy Solutions (CRES) holds a forum to explore the environmental impacts of Chinese economic aggression and US Government strategies to countering the CCP. The program will include keynote remarks from Senator Kevin Cramer, as well as two panel discussions that will feature insights from leaders in the research and policymaking community.

Forum Looks at Net Zero Emissions – The Center for Global Development holds a virtual discussion on Thursday at 9:00 a.m., on making finance ministries part of the push for Net-Zero emissions. CGD, in partnership with the Grantham Research Institute on Climate Change and the Environment and the Coalition of Finance Ministers for Climate Action, holds the event featuring a presentation of their new guide that aims to help fill those gaps. and an important discussion on how finance ministries can take a leading role in the fight against climate change.

Progress Summit Set – On Thursday, The Atlantic holds its Progress Summit in Chicago focusing on the anatomy of breakthroughs, how genius borrows from unexpected corners and how we overcome the cult of blinkered expertise.

Kerry to Head to House Foreign Relations – The House Foreign Affairs Committee holds a hearing on Thursday at 10:00a.m. on the State Department’s Climate agenda and budget.  The hearing will feature an overview by Special Presidential Envoy for Climate John Kerry.

Forum Looks at Safe Climate Limit – The Carnegie Endowment for International Peace holds a forum on Thursday at 11:00 a.m. to look at climate change and the future of the planet. The event will look at what can be done to reduce the risks posed by climate change and bring humanity back into balance with the biosphere.

DOE, Air Liquide Hydrogen Experts Headline Forum – The DOE’s Women in Clean Energy Initiative holds a webinar on Thursday at 1:00 p.m. looking at hydrogen’s role in the clean energy economy. Speakers will include DOE’s Sunita Satyapal, Air Liquide’s Laura Parkan and several others.

Hudson Forum Features Bernhardt – The Hudson Institute holds a conversation on Thursday at 1:00 p.m. with former Secretary of the Interior David Bernhardt about how the United States can maintain economic prosperity and energy security while preserving public lands for future generations.

ACORE to Host Event on Skills Shortage – The American Council on Renewable Energy holds a virtual discussion on Thursday at 1:00 p.m. on talent and skills shortages in the renewable energy industry. Brad Stansberry, the leading expert on KPMG’s Energy & Chemicals Advisory business, will join an interactive discussion on the talent and skills shortages in the renewable energy industry. Brad will share the key insights from KPMG’s American Worker Survey that interviewed 2,300 employees from multiple industries, including the energy sector.

House Financial Service Looks at ESG – The House Financial Services Subcommittee on Housing and Insurance will meet on Friday at 9:00 a.m. to examine how ESG considerations might be increasing insurance or housing costs.

 

IN THE FUTURE

Congressional Renewable Expo Set – The 2023 Congressional Renewable Energy and Energy Efficiency EXPO and Policy Forum will be held on Tuesday July 18^th in the Hart building. The EXPO will feature more than two dozen exhibitors. Members of Congress and other speakers will showcase technologies and solutions that reduce carbon emissions, save households money, improve the economy, build resilience and protect our security interests.

Forum Looks at Decarb on Industrials – ClearPath and the Clear Air Task Force are holding a clean energy industrial Summit on July 19^th at the National Press Club. The summit features Energy Deputy Secretary David Turk, top thought leaders, project developers, innovators, and lawmakers to discuss exciting opportunities to ensure America’s next industrial revolution arrives — leading the world in decarbonization. Other speakers include execs from Holcim, CEMEX, LanzaTech and the American Iron & Steel Institute.

EPRI, NEI tackle SMRs – On Wednesday July 19^th at 11:00 a.m., EPRI is hosting a webinar on Small Modular Reactors (SMRs). EPRI Chief Nuclear Officer Neil Wilmshurst will be joined by senior leaders from the Nuclear Energy Institute (NEI), World Nuclear Association, and OECD Nuclear Energy Agency to explore the potential of SMRs in decarbonization efforts. These thought leaders will discuss the opportunities and challenges of SMR deployment, providing a comprehensive look at how SMRs will shape the clean energy future.

Cement Decarb Forum Set – DOE’s Office of Fossil Energy and Carbon Management (FECM) and Industrial Efficiency & Decarbonization Office’s (IEDO) hold their Cement and Lime Decarbonization Workshop on Wednesday and Thursday July 19-20 at the Hilton Garden Inn Pittsburgh/Southpointe in Canonsburg PA. The purpose of this workshop is to bring together the community of cement and lime producers, end users, and decarbonization technology developers to discuss the ongoing relevant DOE projects and share perspectives on meeting industry decarbonization goals. In this workshop participants will be asked to provide input on the opportunities, challenges, and barriers to meeting the goals of reducing CO2 emissions by 50% by 2030 when compared to 2005 levels, and to achieve net-zero carbon emissions by 2050.

Forum Looks at Permitting – The Information Technology & Innovation Foundation holds a forum in the Capitol Visitors Center HVC-201 on Thursday July 20^th at 12:00 p.m. looking at reimagining energy permitting for the 21^st  century. The event features keynote remarks by Reps. Garret Graves and Scott Peters followed by a panel discussion on ways Congress can reduce barriers to digital energy solutions, increase new energy infrastructure technologies, and modernize our entire energy infrastructure.

Chamber Resilience Forum Set – The US Chamber’s 12^th Annual Building Resilience Conference is set for Wednesday and Thursday July 26^th and 27^th. This year's event will feature the brightest minds in business, government and NGOs who will share invaluable best practices, lessons learned, and strategies for improving community resilience at all levels and building partnerships that drive impact. FEMA head Deanne Criswell and Duke’s Pepper Natonski are among the speakers.