Energy Update: Week of June 27th

Friends,

Welcome to the run up to July 4^th week where they are celebrating in Colorado last night’s Stanley Cup Victory over two-time defending champ Tampa Bay in six games.

Three more decisions this morning from the Supreme Court, but NOT anything on WV v. EPA.  Wednesday is the next decision day and there are only 3 decisions remaining, so we expect to see it on Wednesday.  My colleague Jeff Holmstead, a former EPA Air Administrator is available to discuss.

The President is at the G7 today so expect some discussions of climate change commitments, but also those have been heavily overshadowed by energy security issues. The Bavaria, Germany meeting will be  followed by a trip to Madrid for the NATO summit.

Following last week’s oil/gas meetings, we continue to discuss the issues raised in the meeting and continue to offer expert advice on the gas tax holiday.  Also stay tuned for potential media event later this week (perhaps Thursday) on the President’s expected trip to Saudi Arabia.

The House has a “Committee Work Week” with no floor votes while the Senate is in recess until July 11.  House appropriators are focused this week on energy and environmental funding both tomorrow and Wednesday.  There will also be a hearing on Thursday in House Energy on solutions for America's recycling system.

Other events this week include tomorrow’s important Business Council for Sustainable Energy forum on holds a discussion on Federal sustainability solutions.  On Wednesday, BPC hosts a forum on natural climate solutions and Environmental and Energy Study Institute holds a virtual discussion on offshore Wind Energy.

Likely no update next week as Monday will be July 4^th.  But since it is a holiday weekend, I fully expect a Friday afternoon announcement probably on oil/gas, just like the Memorial Day weekend and last year’s Black Friday announcements.  The NYT’s Lisa Friedman previewed what it could be last week as we were all focused on gas taxes and CEO meetings. We will send updates as needed.  Call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“If you look at our history, there was a time when it’s fair to say the clean energy transition was held at arm’s length by the industry because we weren’t quite sure it could be pulled off successfully. The opposite is true now: We’re fully in, pursuing it hard and making it happen."

Gerry Anderson, executive chair of Michigan-based DTE Energy Co., said during a discussion at annual meeting of the Edison Electric Institute (EEI).

ON THE PODCAST

Woods Talks with CNBC on Energy Transition – In an interview with CNBC’s David Faber, Exxon Mobil CEO Darren Woods cautioned against a government policy that fails to balance the current demand for affordable energy with the need for lower emissions. He said that underinvestment in the oil and gas industry correlates to higher prices. Instead, Woods continued his calls for a price on carbon to create a market incentive for lowering emissions. Woods warns that an abrupt transition to renewable energy will cause society to “pay a high price.”

S&P Cap Crude Hit Global Energy Pressure – Consulting firm ScottMadden’s latest energy industry update, fittingly titled “Under Pressure,” outlines how rising post-pandemic energy demand, ambitious decarbonization targets, soaring commodity prices, and geopolitical tensions have all combined to put immense pressure on the global energy industry. S&P Global editor Ellie Potter spoke with ScottMadden partner Cristin Lyons about market dynamics and challenges facing the power sector as it seeks to meet the administration’s goal to decarbonize by 2035, as well as some recent actions taken by FERC that could help bring renewable projects online more quickly.

FUN OPINIONS

CLC: Solar Needs a Strategy From Biden – In an op-ed in The Hill, Climate Leadership Council CEO Greg Bertelsen writes the administration should chart a longer-term strategy that fulfills its ambition to decarbonize the U.S. power sector while positioning the U.S. to become a solar manufacturing leader. He adds that “thoughtful trade policy would reward cleaner production throughout the solar supply chain by accounting for the carbon intensity of imports. This wouldn’t close the door to panels made with higher carbon intensity but would send a market signal to preference panels made with less carbon—something we should be exploring in other industries as well. In doing so, we would give a well-earned competitive edge to our cleaner domestic manufacturers without jeopardizing supply chains.”

FROG BLOG

Chamber Blog Details Energy Inflation – In a blog, Chamber expert Dan Byers addresses energy and inflation Issues by highlighting five things to know about it. Byers says the impacts of energy prices on inflation go well beyond the price we see at the pump—higher costs for oil and natural gas ripple through the economy in countless but less obvious ways. Points include 1) High diesel prices are flowing through to countless goods and services 2) Electricity prices are also rising, but impacts vary significantly by region 3) High natural gas prices are impacting manufacturing 4) Global energy crisis is hurting Europe even more and 5) Relief isn’t around the corner, but it may be on the horizon. Unfortunately, mixed signals—and sometimes outright hostility to the energy industry—have exacerbated uncertainty and the very investments that politicians are calling for.

FUN FACTS

• Grid Storage Increasing:  The U.S. energy storage market set a new record in the first quarter of 2022, with grid-scale installations totaling 2,399 megawatt hours (MWh), the highest capacity for Q1 on record. Grid-scale energy storage quadrupled in Q1 2022, compared to the same period in 2021 (in spite of supply-chain shortages).
• Americans are Spending on Gasoline: According to GasBuddy.com, Americans are now spending $730 million more every day on gasoline than a year ago, and June alone could cost US consumers $20 billion more to fill their tanks than in 2021.

IN THE NEWS

Gas Tax Holiday Hits with Thud – POLITICO and others have reported that President Biden’s call for a gas tax holiday is putting him at odds with Democratic legislators across the country who have spent months spurning such calls. Only 15% of the price of gasoline is due to taxes, while 60 percent is simply the price of crude oil.  Senior Democrats in the House including Speaker Pelosi and others have questioned whether the policy will lead to savings at the pump, worried about Infrastructure funding  and did not include it in their own bill aimed at lowering gas prices last month.

DOE meeting with oil execs a step in the right direction – A Thursday meeting between oil executives and Energy Secretary Jennifer Granholm was described as "constructive" and "productive" by both sides, although no agreement was reached on concrete actions to address soaring energy prices. The meeting "should send a positive signal to the market that the US is committed to long-term investment in a strong US refining industry and aligning policies to reflect that commitment," said the American Petroleum Institute and the American Fuel & Petrochemical Manufacturers in a joint statement.

Interior’s BLM Postpones Multiple Oil And Gas Lease Sales – The Bureau of Land Management has delayed until this week three oil and natural gas lease sales originally scheduled to take place this week in Wyoming, Colorado and New Mexico. The agency said the deferral was necessary to allow time for the completion of National Environmental Policy Act analyses and protest resolution.     

IRS Ready to Move Forward on Superfund Tax – In another Friday drop, the IRS said it will not delay the reinstatement of the Superfund excise tax on chemicals. In guidance posted, the agency reiterated that the tax would take effect on July 1, as required under the bipartisan infrastructure law passed last year. The American Chemistry Council has requested a delay arguing that companies need more time to figure out how to comply

ON THE SCHEDULE THIS WEEK

NHA Regional Meeting Set – The National Hydropower Assn is holding its 2022 Northeast Regional meeting today and tomorrow in Baltimore.  Some northeast-specific topics that will be discussed include dam safety in the northeast, new fish passage technologies and what is going on with NEPA. 

USEA Holds Forum on Critical Minerals –The US Energy Assn holds an all-day forum tomorrow on opportunities to facilitate resilient domestic critical material supply chains and the infrastructure law.  This particular workshop will focus on the groups including DOE, NGOs, Industry and academia, as well as informative discussions on this great opportunity.

Columbia Forum to Host Brazil Energy Conversation – The Center on Global Energy Policy, in partnership with Women in Energy Brasil and Columbia Global Centers | Rio de Janeiro, will host a discussion tomorrow at 11:00 a.m. to provide insights into Brazil’s pragmatic pathway to a clean energy transition from the perspective of an oil and gas producing country. A stellar panel of women leaders in the energy sector will discuss the future of the country’s energy system in the context of global high energy prices, the country's policy approach towards low carbon fuels, the lessons learned from the deployment of clean technologies, and integration of renewables in the power grid, all while at the same time working towards lowering the carbon footprint of its oil and gas production.

Forum to Look at Climate, 5G – The Information Technology & Innovation Foundation holds a forum tomorrow at 10:00 a.m. on how 5G can spur climate tech innovation.  ITIF will present an overview of and window into the potential climate tech applications of 5G and what is needed going forward to help ensure that this critical infrastructure can facilitate the low-carbon transition.

Forum Looks at Climate in North Africa – The Wilson Center's Middle East Program holds a virtual discussion tomorrow at 10:00 a.m. focusing on climate change in West Asia and North Africa. Center President & CEO Ambassador Mark Green speaks with HRH Prince El Hassan bin Talal of Jordan about pressing climate change concerns in the region and need to implement a 'human dignity' approach to solutions.

Forum to Look at Resilience, Decarb – The Business Council for Sustainable Energy and Digital Climate Alliance hold a forum tomorrow at Noon at the Kennedy Center on leveraging technology for a more resilient energy landscape.  Panels include one with Rachel Jacobson, Assistant Secretary of the Army for Installations and Environment and NSC Special Assistant to the President and Senior Director for Climate/Energy Melanie Nakagawa; and Keynotes from Ben Grumbles, Executive Director of the Environmental Council of the States and Federal Chief Sustainability Officer Andrew Mayock.

Forum to Look at Green Hydrogen in Latin America – The InterAmerican Dialogue holds an event on tomorrow at Noon on green hydrogen’s potential in Latin America, and what measures are required to unlock it? This event will explore government and private sector plans for hydrogen in the region, the barriers to producing low-carbon hydrogen and the prospects for its use in different applications, and strategies for intersectoral and international cooperation to advance this important technology. A keynote address by Claudio Huepe Minoletti, minister of energy of Chile, will be followed by a Q&A session and a panel discussion.

Forum Looks at Oil Crisis – Tomorrow at 1:00 p.m., the Carnegie Endowment for International Peace holds a virtual discussion on the politics of an oil crisis. Carnegie’s’ Aaron David Miller as he sits down with Helima Croft, managing director of global commodity strategy research at RBC Capital Markets, for a conversation on these and other issues.

WCEE to Host Conversation with ACP’s Zichal – Tomorrow at 2:00 p.m., the Women’s Council on Energy and the Environment holds its WCEE Virtual Executive Series featuring American Clean Power Association CEO Heather Zichal. Zichal will speak with WCEE Past President Barbara Tyran about her remarkable career in the private and non-profit sectors, as well as a senior federal government official.

Energy Economists Talk Micro Grids – The US Energy Economists hold their June Meeting on Wednesday at 11:00 a.m. featuring a discussion with Ashok Das is the Founder CEO of SunMoksha. He works at the intersection of clean technologies, IoT, sustainable development goals and smart communities. Working closely with the underserved and disadvantaged communities, he has developed state-of-the-art technologies and models to address the issues of sustainable socioeconomic development, with a specific focus on smart microgrids, smart agriculture, sustainable livelihood and smart villages.

BPC Looks at Natural Climate Solutions – The Bipartisan Policy Center will hold a forum on Wednesday at 11:00 a.m. looking at contributions from agriculture, forestry, and lands. Panelists will discuss how U.S. agriculture and forestry can deliver the necessary large-scale greenhouse gas emission reductions and enhanced carbon removals, including recommendations from the BPC Farm and Forest Carbon Solutions Task Force’s recent report, Federal Policies to Advance Natural Climate Solutions.

Forum to Look at Offshore Wind – On Wednesday at Noon, the Environmental and Energy Study Institute (EESI) holds a briefing on offshore wind energy. During this briefing, panelists will discuss opportunities, challenges, and considerations for scaling up offshore wind energy in the United States, as well as the policies that could support such a ramp-up. Panelists include NJ Board of Public Utilities expert Andrea Hart and John Begala of the Business Network for Offshore Wind.

Groups Release Peace Report – On Wednesday at 2:00 p.m., the Wilson Center releases a new flagship report jointly with the Stockholm International Peace Research Institute, the Environment of Peace report—explores how we can secure peace. event will draw from the report to explore how environmental degradation and climate change are increasing risks to peace and security and how, conversely, environmental policies—if not designed well—can unintentionally create or exacerbate conflict, injustice, and inequality (or what the Wilson Center has called “Backdraft”). The session will highlight recommendations for developing policies that can address this environment-security link, simultaneously promoting peace and protecting the environment to achieve a just and peaceful green transition. 

Forum Looks at Iraq NatGas – The Columbia Center on Global Energy Policy will host a webinar on Thursday at 9:00 a.m. to present the results of a recent DOE-supported study which aims to assist the Kurdistan Regional Government (KRG) in developing a commercially-robust and environmentally-sound gas market. The panel will discuss the commercial and political attractions and challenges to realizing these aims.

Forum to Look at Ocean Pollution – The Society for International Development’s Washington, D.C. Chapter holds a virtual discussion Thursday at 9:00 a.m. on scaling innovations to mitigate ocean plastics pollution. The event will present and discuss innovative technologies and practices, research, public-private partnerships and financing opportunities that seek practical responses to mitigate ocean plastics pollution.  

Atlantic Forum to Look at Heavy-Duty Zero Emissions Vehicles – On Thursday at 10:00 a.m., the Atlantic Council’s Global Energy Center and CALSTART’s Drive to Zero Program virtually hold part two of their discussion on the role of government policy to enable deployment of zero-emission medium- and heavy-duty vehicles (ZE-MHDVs). During this panel, government leaders will discuss how governments in Europe and the United States can better collaborate to accelerate ZE-MHDVs, gather further momentum worldwide towards the Global MOU ambition, and serve as partners with industry stakeholders to advance ZE-MHDV deployment. The event features a conversation with DOE’s Deputy Assistant Secretary of Sustainable Transportation Michael Berube and .California Air Resources Board Chair Liane Randolph.

House Energy Looks at Plastic Recycling – The House Energy and Commerce Environment and Climate Change Subcommittee holds a hearing on legislation America's recycling system.

IN THE FUTURE

July 4^th HOLIDAY – Monday July 4^th

Wilson Forum Looks at Critical Minerals – On Thursday June 7^th at Noon, the Wilson Center hosts a conversation with experts from Latin America, North America, and Europe to discuss the opportunities and challenges posed by increasing demand for critical minerals. The panel will highlight how leaders on both sides of the Atlantic are responding to projected demand and the role of transatlantic cooperation in harnessing key opportunities.  USGS Director Mark Myers is among the speakers.

AES holds Conference – On Thursday July 7^th and Friday July 8^th, the American Energy Society co-hosts the 12^th annual SISE Conference in partnership with the University of Illinois, Chicago, and Argonne National Laboratory. This conference celebrates prosumers, the enlightened producers and consumers in energy who take responsibility for their choices.

Congressional Energy Efficiency Expo Set – The Environmental and Energy Study Institute (EESI) and the House and Senate Renewable Energy and Energy Efficiency (REEE) Caucuses hold the 25^th Annual Congressional Renewable Energy and Energy Efficiency Policy Forum (EXPO 2022) online on July 25^th. Building on the more than 20 years of experience hosting clean energy leaders from various sectors, the event showcases technology and policy solutions to today’s climate and energy use challenges.