Energy Update: Week of May 16th
Energy Update - May 16, 2022
With gas prices and inflation soaring, Congressional Democrats look to pass the buck this week by moving a number of window-dressing measures that will do nothing (except tell voters there are trying to help), even though they continue to send mixed policy signals on oil, natural gas, gasoline and other energy issues. House Rules takes up the action later today, with votes as soon as Wednesday as Congress prepares to head for the Memorial Day exit. Happy to discuss the play-by-play and give you an “on-the-record” reality check. Also have some good additional resources available (API has a good blog here).
Today, Senators Manchin and Murkowski released a series of letters to Cabinet officials reminding the Administration of its commitment to address strategic minerals supply chains and processing. It comes on the eve of the Senate Energy Committee’s third critical minerals hearing that will focus on the US-Canada energy and minerals partnership tomorrow. The Metals Company CEO Gerard Barron, the leading publicly traded company seeking to collect and retrieve polymetallic nodules, said “seabed nodules offer one of the only chances to revive mineral processing in the U.S., as highlighted by the Senators’ emphasis on the Defense Production Act. The Metals Company stands ready to do its part to recover and process these seabed nodules in a responsible and timely manner.”
Other hearings include EPA Administrator Regan at House Energy’s Climate panel tomorrow and Senate Approps on Wednesday to talk budget, Senate Energy hosting Interior Sect Haaland on Thursday; and on Friday, the House Science Committee hosting a field hearing in my old stomping grounds on the EV workforce in Oakland County. We expect to hear a lot about critical minerals there and among those testifying is UAW’s Josh Nasser. On Thursday FERC holds its monthly open meeting and has a couple of natgas pipeline on the docket and Sect. Granholm returns to Hill Wednesday and Thursday to talk NNSA budget.
San Antonio, Texas plays host to the CLEANPOWER 2022 conference from today through Wednesday. FERC’s Rick Glick, Energy Secretary Granholm, Interior’s Tommy Beaudreau and Senate Tax Chair Ron Wyden all speak. POLITICO hosts a Sustainability forum on Wednesday with Sect. Granholm and Washington Gov. Jay Inslee, and then Wednesday/Thursday, the Wall Street Journal host the Future of Everything in New York. Also today at 2pm, Energy Secretary Granholm and Brazilian Minister of Mines and Energy Bento Albuquerque join the Chamber for the launch of the U.S.-Brazil Clean Energy Industry Dialogue (CEID), a new forum for public-private discussion and partnership.
Tuesday is the Pennsylvania primary. Spiced up by the weekend by a stroke suffered by current Dem LG John Fetterman and the rising tide that is Kathy Barnette, who has drawn even with Trump-endorsed Dr. Oz and Financier David McCormick. There is also interesting action in the Governors’ race as well with Trump’s late endorsement of Doug Mastriano over his long-time ally Lou Barletta, who trails in the polls. Of course, the winner faces anti-gas raider/progressive activist AG Josh Shapiro.
Finally, we hear that a version of the Hydrogen Hub Funding Solicitation from DOE is expected to be public as soon as today!! Of course, everyone in Congress is very interested in that which also reminds me that next Tuesday Air Liquide rolls out the largest new hydrogen production plant in Las Vegas.
Lots happening so call with questions...especially if you want to talk gas prices.
Best,
Frank Maisano
(202) 828-5864
C. (202) 997-5932
FRANKLY SPOKEN
“I personally am not, I don't have discretion or ability to weigh in on their (ITC’s Solar Trade) fact-finding process. Our hands are very tied."
Commerce Secretary Gina Raimondo said at a Senate Appropriations hearing on the solar trade tariff fight.
ON THE PODCAST
Shah Talks Hydrogen, Storage with Canary Podcast – In this recent episode of Catalyst, host Shayle Kann talks to Jigar Shah, director of the Department of Energy’s Loan Programs Office, about the Advanced Clean Energy Storage project. Shah explains what made ACES an attractive applicant to the Loan Programs Office, the government agency behind the conditional loan guarantee. They discuss why the salt-dome storage is essential to making the project work and other uses for hydrogen beyond power production, like as a feedstock for ammonia production and other heavy industries. They also break down the difficulties in transporting hydrogen and the need to locate hydrogen production near consumption.
FUN OPINIONS
NOPEC Not A Great Plan – In a Column in Bloomberg, oil expert Javier Blas writes OPEC has been a useful bogeyman for lawmakers since the first oil crisis in 1973. “It’s an easy target, and one that allows everyone in Washington to point the finger somewhere else for pain at the pump. And there’s pain: On Wednesday, US average retail gasoline prices hit an all-time high of $4.404 per gallon, up nearly 50% from a year ago.” Blas writes rather than NOPEC bills, Washington should try diplomacy, starting with improving its relationships in the Middle East with oil-producing countries. But OPEC itself should pay attention to the noises coming from inside the Beltway. The longer oil trades above $100 a barrel, the higher the risk of unintended consequences.
FROG BLOG
RFF Experts Take on Challenges of SEC Climate Regs – In a Resources For the Future blog post, RFF’s Marc Hafstead and Billy Pizer are joined by Harvard’s Joseph Aldy, Margaret Peloso of Vinson & Elkins and Alex Rau of Environmental Commodity Partners in writing the proposed rule from the SEC requiring companies with voluntary commitments to be more explicit about their goals and to regularly report how progress is being made. In particular, the rule requires firms with pledges to report the use of offsets in achieving emissions reductions outside of their own greenhouse gas footprints by requiring the disclosure of the source of the offset, the underlying offset projects, any registries or authentication of the offsets, and the cost of the offsets. Each write individual takes on various elements of the rule and its challenges.
FUN FACTS
Who is Importing LNG: With all the talk about US LNG exports, here is a list of the Top-5 LNG importing countries:
- China (10.3 billion cubic feet per day)
- Japan (9.8 bcf/d)
- South Korea (6 bcf/d)
- India (3 bcf/d)
- Taiwan (2.4 bcf/d)
IN THE NEWS
Manchin, Murkowski Press Biden Admin on Critical Mineral Action – Today, Senators Manchin and Murkowski released a series of letters of Cabinet officials reminding the Administration of its commitment to address strategic minerals supply chains and processing. Manchin and Murkowski expressed their concerns regarding the Biden Administration’s delayed implementation of the critical mineral provisions contained in the Energy Act of 2020 and the Infrastructure Investment and Jobs Act. In letters to U.S. Secretary of Defense Lloyd Austin, U.S. Secretary of Energy Jennifer Granholm, U.S. Secretary of the Interior Deb Haaland and U.S. Director of National Intelligence Avril Haines, the Senators urged the Administration to prioritize Congressionally mandated critical mineral initiatives and immediately provide Congress with an update on their implementation efforts.
Click here to read the Senators’ letter to U.S. Secretary of Defense Lloyd Austin.
Click here to read the Senators’ letter to U.S. Secretary of Energy Jennifer Granholm.
Click here to read the Senators’ letter to U.S. Secretary of the Interior Deb Haaland.
Click here to read the Senators’ letter to U.S. Director of National Intelligence Avril Haines.
TMC Response to Letters – The Metals Company said it fully supports the timely letters from Senators Manchin and Murkowski to the cabinet officials tasked with meeting U.S. strategic goals for critical minerals. TMC CEO Gerard Barron, the leading publicly traded company seeking to collect and retrieve polymetallic nodules that lay unattached on the seafloor in the Eastern Pacific, said this:
The largest source of battery metals potentially available to the U.S. market lies off the coast of the nation’s Western seaboard. Senator Murkowski and former U.S. military leaders have previously written to Energy Secretary Granholm and Defense Secretary Austin, respectively, inquiring about the importance of seabed nodules unattached on the seafloor of the Clarion-Clipperton Zone in the Pacific Ocean as a major source of minerals with shortened supply chains sustainably achieved and without control by China or Russia. Both of these previous letters are linked here. Further, seabed nodules offer one of the only chances to revive mineral processing in the United States, as highlighted by the Senators’ emphasis on the Defense Production Act. The Metals Company stands ready to do its part to recover and process these seabed nodules in a responsible and timely manner.”
Shareholders Continue Rejecting Resolutions – Shareholders for U.S. companies ConocoPhillips Co. and Occidental Petroleum Corp., and European majors BP PLC and Equinor ASA, rejected stricter targets for lowering greenhouse gas emissions in line with Paris Agreement goals, as oil companies anticipate more pressure from shareholders in the 2022 proxy season. The push comes as Dutch activist investor group Follow This has introduced a slew of resolutions that target emissions reductions, while BlackRock Inc., the world's biggest asset manager, expects to support fewer resolutions during the annual general meetings season, calling many of the climate proposals too prescriptive.
NatGas Report Sees Growth Over 2021 – A new report from the Natural Gas Supply Association projects that US natural gas production will be 3.6 billion cubic feet per day greater this summer than last, exceeding demand growth by 1 Bcf/d. Market conditions are likely to "remain in a tight balance this summer, resulting in upward pressure on natural gas prices compared to last summer's average of $3.85/MMBtu" at the Henry Hub, the association said.
NC Wind Leases Sold – The Interior Department said an offshore wind lease sale in the federal waters off the coast of North and South Carolina brought in $315 million in winning bids, as U.S. power company Duke Energy Corp. and French supermajor TotalEnergies SE snapped up parcels. The Carolina Long Bay leases could produce about 1.3 gigawatts of offshore wind generation if fully developed.
EPA faces lawsuit – Seventeen Republican state attorneys general filed a lawsuit against the Environmental Protection Agency, alleging the agency violated the Constitution's doctrine of equal sovereignty by exempting California from the Clean Air Act, which the state later used to mandate stricter emissions limits than those set by the federal government. The California policy allowing for more stringent pollution limits was blocked under President Donald Trump and reinstated by the Biden administration earlier this year
ON THE SCHEDULE THIS WEEK
CLEANPOWER Set for San Antonio – America’s Clean Power Association (ACP) will hold CLEANPOWER 2022 at the Henry B. Gonzalez Convention Center in San Antonio today to Wednesday. The event’s theme is “Building the Clean Energy Economy” and more than 6,000 attendees and 350 exhibitors from across the renewable energy spectrum representing over 30 countries and all 50 U.S. states are expected. View the full agenda here.
CEI Forum Looks at ESG Mandates – The Competitive Enterprise Institute holds a virtual discussion today at 12:00 p.m. looking at whether the Federal Government has authority for environmental, social and corporate governance mandates.
Brookings Looks at Scottish, EU Energy Security – Today at 1:00 p.m., the Brookings Initiative on Climate Research and Action will host the First Minister of Scotland Nicola Sturgeon for keynote remarks followed by a conversation with Samantha Gross, director of the Energy Security and Climate Initiative at Brookings. First Minister Sturgeon will discuss Scotland’s role in tackling the global climate crisis, the justice and benefits of transitioning to a greener economy, and what’s needed—especially in the wake of Russia’s destabilization of fossil fuel energy supplies—to boost Scottish and European energy security and self-reliance.
Chamber to Host Granholm at Brazil Forum – The US Chamber will host a Brazil Forum today at 2:00 p.m. to discuss energy issues. Energy Secretary Jennifer Granholm and Brazilian Minister of Mines and Energy Bento Albuquerque will hold the launch of the U.S.-Brazil Clean Energy Industry Dialogue (CEID), a new forum for public-private discussion and partnership that will complement the U.S.-Brazil Energy Forum (USBEF) agenda and allow for new initiatives on clean energy that are driven by the private sector.
NY Power Conference Set – The Independent Power Producers of New York host a conference tomorrow and Wednesday at the Albany Capital Center to discuss renewable energy in New York. The conference features California ISO President and CEO Elliot Mainzer as the keynote speaker.
USAID Hosts Climate Strategy Webinar – Tomorrow at 8:00 a.m., US AID hosts a forum its climate strategy. This webinar will raise awareness about key aspects of the new USAID Climate Strategy and begin to answer the question for practitioners.
Senate Energy Looks at Canada, Minerals Partnership – The Senate Energy Committee holds a hearing tomorrow at 10:00 a.m. on the US-Canada energy and minerals partnership.
House Energy Panel To Host EPA’s Regan – The House Energy and Commerce Environment and Climate Change Subcommittee holds a hearing tomorrow at 10:15 a.m. on the FY2023 EPA Budget featuring Administrator Michael Regan.
ELI to Look at SEC Climate Regs – Tomorrow at Noon, the Environmental Law Institute and expert panelists will explore the proposed SEC rules on ESG. Panelists will highlight the existing reporting framework, the challenges of this system, and how these proposed rules intend to resolve the existing challenges.
ITIF to Release Clean Energy Report – The Information Technology & innovation Foundation holds a forum tomorrow at Noon for the release of the Center for Clean Energy Innovation’s annual report on the federal energy RD&D budget and an expert panel discussion of key priorities. Study author Hoyu Chong will present, while our friend Dan Byers of the US Chamber’s Global Energy Institute will comment on the report in the context of the Energy Act of 2020 and the bipartisan infrastructure bill in 2021.
Katko Headlines Axios Cyber Event – Axios journalists host a forum tomorrow at 12:30 p.m. on cyberthreats. Guests include Rep. John M. Katko (R-N.Y.) and Harvard Belfer Center’s Cyber Project head Lauren Zabierek.
Forum to Look at Budget, Climate – The Committee for a Responsible Federal Budget holds a virtual event tomorrow at 1:00 p.m., on fiscal solutions to climate change.
Discussion to Talk Oil Markets – The Energy Policy Institute at the University of Chicago (EPIC) will host a conversation tomorrow at 4:30 p.m. on the outlook for oil markets and its implications for the overall fight against climate change. The discussion will include investor Jeff Ubben, founder of Inclusive Capital Partners and an Exxon board member, former White House official Bob McNally and EPIC Director Michael Greenstone. The event will be moderated by The Atlantic’s Robinson Meyer.
POLITICO Sustainability Forum Set – On Wednesday at 10:00 a.m., POLITICO hosts its second annual sustainability summit taking place in-person at the Hotel Washington. The event will look at the policies, strategies and innovations that government, the corporate sector, and local communities are implementing to accelerate climate progress and the most promising approaches that can get us to a sustainable future much faster. Speakers include DOE Secretary Granholm and CFTC Chair Rostin Behnam, as well as Rep. Kathy Castor, Sen. Deb Stabenow, Washington Gov. Jay Inslee, NASDAQ Vice Chair Edward Knight and many more.
Senate Banking Looks at Resilient Housing – The Senate Banking, Housing and Urban Affairs Committee holds a hearing on Wednesday at 10:00 a.m. addressing climate change with energy-efficient and resilient housing.
Senate Approps Visits With Regan – The Senate Appropriations Interior/Environment Subcommittee holds a hearing on proposed budget estimates and justification for FY2023 for the Environmental Protection Agency featuring EPA head Michael Regan.
EY Forum Features Enbridge CEO – Ernst & Young hosts a conversation on Wednesday at 11:45 a.m. with Enbridge CEO Al Monaco and BMO Financial Group Vice-Chair Brian Tobin on Canada’s role to advance the energy transition and contribute to energy security.
Forum Looks at Sea Level Rise -- The Environmental and Energy Study Institute (EESI) holds a briefing on Wednesday at 1:00 p.m. looking at policies and practices to address sea level rise. Panelists will discuss these questions and highlight policy ideas and solutions that could start to shape a more robust U.S. response to sea level rise.
Forum to Look at City Renewable Leadership – On Wednesday at 1:00 p.m., WRI holds a forum on City Leadership in driving renewables. During this webinar, WRI and RMI experts will highlight notable city clean energy trends and stories from the past year based on new data from the Renewables Action Tracker. A panel of speakers from U.S. local governments will then share their lessons learned and experiences with procurement and engagement in 2021, as well as how their cities plan to take further advantage of the opportunities outlined in the IPCC report on the road ahead.
House Select Climate to Look at Resilient Food Supply – On Wednesday at 2:30 p.m., the House Select Climate Crisis Committee holds a hearing on building an affordable and resilient food supply chain.
Forum Looks at Russia Energy Issues – The Federalist Society for Law and Public Policy Studies holds a virtual discussion on Wednesday at 3:00 p.m., on Russia and US energy policy, environmental goals, foreign wars and the administrative state.
Stanford to Look at Climate Crisis – Stanford’s CIGH and the Woods Institute for the Environment hosts a conversation at 4:30 p.m. featuring Dr. Britt Wray and CIGH Director Dr. Michele Barry, who has steered the center to focus on the connections between the health of people and the planet. They’ll discuss climate change impacts mental health in youth, frontline communities, climate professionals and concerned people everywhere – and what can be done to build resilience.
US-Mex Chamber Hosts Forum – The United States-Mexico Chamber of Commerce holds its annual Board of Directors Meeting, Conference and Good Neighbor Awards Gala on Thursday at The Decatur House in Washington, D.C. The conference this year will focus on the implementation of the United States-Mexico-Canada Agreement, current supply chain challenges and nearshoring opportunities.
Granholm Talks NNSA – The Senate Armed Services Committee holds a hearing on Thursday at 9:30 a.m. to discuss the FY2023 budget for the National Nuclear Security Administration. Energy Secretary Granholm testifies.
Senate Energy Hosts Haaland – The Senate Energy Committee will host a budget hearing on Thursday at 10:00 a.m. featuring Interior Secretary Deb Haaland.
House Foreign Affairs Looks at US Energy Efforts to Help Europe – The House Foreign Affairs Committee’s Subcommittee: Europe, Energy, the Environment and Cyber will convene a hearing on Thursday at 10:30 a.m. to look at US efforts to support European energy security.
Senate Approps Hosts EPA – The Senate Appropriations Interior/Environment Subcommittee holds a hearing on Wednesday at 11:00 a.m. looking at the proposed budget estimates and justification for FY2023 for EPA. EPA Admin Regan will testify.
USEA Looks at Water Issues – The US Energy Association holds a virtual forum on Thursday at 1:00 p.m. on water policies, drought, other non-energy uses, national security and energy development.
Forum Look at Fusion Energy – On Thursday at 2:00 p.m. the Center on Climate and Energy Solutions (C2ES) holds a forum on unleashing the potential of Fusion energy. In this webinar, experts will discuss the latest developments in fusion energy, its potential role in future comprehensive decarbonization strategies, and overcoming technical barriers, as well as the near- and long-term policies necessary to facilitate commercialization and deployment.
Forum to Look at Steel Decarb – On Thursday at 2:30 p.m., the Atlantic Council Global Energy Center as it hosts Adam Rauwerdink, senior vice president of business development at Boston Metal, to discuss the company’s innovative approach to decarbonizing steel production. Boston Metal is commercializing a revolutionary one-step process to decarbonize steel production using clean electricity, helping to eliminate 10% of the world’s carbon emissions.
Brookings to Look at Climate, Defense Strategy – On Thursday at 3:00 p.m., the Foreign Policy program at Brookings will host a webinar to explore how the Department of Defense is responding to the challenges of climate change and how this is reflected in the FY23 budget request to Congress, in the National Defense Strategy, and in engagements with allies and partners.
House Science Looks at EV Workforce – The House Science Research and Technology Subcommittee holds a field hearing at Macomb Community College County, in suburban Detroit on Friday at 10:00 a.m. on building a workforce to navigate the electric vehicle future. Witnesses include UAW’s Josh Nassar, Jennifer Mefford of the Electric Vehicle Infrastructure Training Program, Bollinger Motors CEO Robert Bollinger, MCC’s Center for Advanced Automotive Technology Director Ben Cruz and Michigan Department of Labor and Economic Opportunity official Marcia Black-Watson.
IN THE FUTURE
FERC Forum to Look at NatGas Policy – On Tuesday May 24th, Energy Policy News (formerly Foster’s Report) holds a webinar featuring former FERC Chair Neil Chatterjee and NRDC’s Gillian Giannetti on natgas policy in crisis. The event will look at FERC and the path forward. The recent policies, which were walked back to draft status by the Commission last month, raise questions about the future of natural gas during the clean energy transition as well as FERC’s fundamental role as a federal energy regulator. The event will be moderated by our friend Rod Kuckro.
Hydrogen Plant Opening Set for North Las Vegas – Air Liquide will formally open its new North Las Vegas Hydrogen Production Facility on May 24th. It will be the largest H2 Production facility in the US and is design to reach California’s emerging hydrogen market.
EESI Looks at Carbon Capture – The Environmental and Energy Study Institute (EESI) holds a briefing on Wednesday May 25th at 3:30 p.m. focused on direct air capture, which chemically removes carbon dioxide from the atmosphere. The captured carbon can be permanently stored underground or used in industrial processes. While climate change mitigation efforts are the priority, carbon dioxide removal will be necessary to help meet climate goals and limit global warming to below 2 degrees Celsius (3.6 degrees Fahrenheit) as outlined in the Paris Agreement. During this briefing, panelists will explain what Congress needs to know about direct air capture, including the considerations, challenges, and opportunities involved in responsibly scaling it up. Rep. Paul Tonko provides introductory remarks.
USEA to Hold Annual Policy Forum – On Thursday May 26th, the US Energy Assn holds its 2022 annual Meeting and Public Policy to preview the energy industry’s future. The event will be virtual and feature DOE’s Kelly Speakes-Backman, EPA’s Tom Carbonell, former FERC Chair Neil Chatterjee. NRC’s Dan Dorman, EXIM Bank’s Judith Pryor and many more.
ACORE Finance Forum Set – The 2022 ACORE Finance Forum will be held in New York City on June 7th and 8th New York State Energy Research and Development Authority CEO Doreen will give keynote remarks at the Forum.
Reuters to Host Hydrogen 2022 – To scale-up production, secure off-takers and lead the hydrogen economy, Reuters Events holds Hydrogen 2022 conference and exhibition to detail and discussion hoe to build the global hydrogen economy..
Members of Senate, House Address Energy Summit – US Energy Stream hosts its 7th Washington Energy Summit 2022 on June 8th and 9th at the Cosmos Club of Washington, DC. The Summit is an annual market intelligence platform that brings together Senators, Congressmen, government leaders, senior energy executives, investors and experts to successfully address climate policy in the quest for net-zero emissions in a decarbonized energy future. Speakers include Sens. Roger Marshall, Bill Cassidy, Ted Cruz, Steve Daines and Cynthia Lummis, as well as 20-plus Representatives.
EESI Looks at Wildfires, Climate – On Monday June 13th at 1:00 p.m., the Environmental and Energy Study Institute (EESI) hosts a briefing on policies and practices to address wildfires. Panelists will discuss policies and practices that would allow the United States to reduce the overall risk of wildfires, including how innovations in community-centered wildfire protection can improve resilience for humans and ecosystems.