Energy Update: Week of May 30th

Friends,

Hope everyone enjoyed the Memorial Day Weekend, getting the grill going.  The Summer is officially started and so is the Summer driving season. To mark the launch, I have added a host of driving/gasoline fun facts for you below.  Speaking of driving on Memorial Day, it also means the Indianapolis 500, which was taken by Swede and former Formula 1 Driver Marcus Ericsson.

It is a slow week with Congress back in their home districts.  But there are a few interesting events tomorrow and Thursday.  The Yale Center for Environmental Law and Policy releases its 2022 Environmental Performance Index, the Energy Futures Initiative (EFI) holds a public webinar on building the Gulf Coast clean hydrogen market (I also link to a great new report on the topic from Houston business leaders) and CSIS holds a forum on cutting methane emissions from the oil and gas sector.  Finally, on Thursday, WaPo Live hosts UN Climate official Patricia Espinosa about the role of technology in curbing the human impact on climate change, while BPC holds an in-person fireside chat with Gov. Larry Hogan (R-MD) and Exelon’s Calvin G. Butler.

Still in Cali wrapping up some business issues over the weekend but heading back to DC tomorrow. We are watching the Supreme Court closely in anticipation for a decision on the West Virginia v EPA case, among other important cases. 

The French Open is underway and congrats to the UMaryland Men’s Lax, who completed an undefeated 18-0 season, and North Carolina women’s lax who both won hard fought National Championship games over the weekend.   Call with Questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“The US oil and natural gas industry is the most important environmental movement in the world.  Our natural gas discoveries are the main reason why we've been able to cut greenhouse gas emissions over the course of the last decade.  We need an administration that can continue to support the American oil and gas industry because we're still not back at levels of production that we were prior to the pandemic."

American Petroleum Institute President and CEO Mike Sommers in an interview with Fox Business News

ON THE PODCAST

Hydrogen Discussion Featured on Big Switch – In this week’s Right Voices, Rep. Mariannette Miller-Meeks (R-IA) joined C3 on the interview series to discuss energy security and free market climate solutions. She joined the Conservative Climate Caucus and was a part of the congressional delegation that represented America at last year’s COP26, the United Nation’s annual climate conference.

FUN OPINIONS

McKinley Schrader Pragmatism Will Be Missed – In an opinion in RealClearEnergy, Energy Innovation Reform Project head Sam Thernstrom writes that Congress will be less likely to produce pragmatic solutions with the loss of member like Republican David McKinley and Democrat Kurt Schrader. We need bipartisan solutions to address tough, challenging issues.  With McKinley and Schrader gone, Congress will continue to miss the mark.

FROG BLOG

EPSA Snitchler Says NatGas Essential to Energy Transition – In a column in Real Clear Energy, EPSA CEO Todd Snitchler writes on the important role of natural gas in energy transition: “Until battery storage is available at a sufficient scale to smooth the natural ebbs and flows of intermittent generation, we'll need natural gas to remain part of vital fuel mix.”

FUN FACTS

Memorial Day Gas Facts: Americans collectively drive an estimated 3.2 trillion miles on our roads and highway every year.  With data from the Energy Information Administration (EIA), the metrics below are the latest numbers to demonstrate America’s need for greater U.S. supply that provides energy security and energy reliability

• 38.9 million fill-ups/day: U.S. gasoline demand peaked in 2018 at an annual average consumption of 9.329 million barrels per day (mmb/d). U.S. gasoline consumption declined during the pandemic (annual average of 8.049 mmb/d in 2020). It’s now expected to increase to be around 8.9 mmb/d – or 373.8 million gallons per day – in both 2022 & 2023. Based on 9.5 gallons per refueling stop, that works out to 38.9 million fill-ups in the U.S. per day.
• 489 gallons/year per registered vehicle: On average, there are 275.9 million registered vehicles in the United States and in 2021, 8.79 million barrels per day of gasoline was sold.
• 32 miles/day: Americans traveled 8.834 billion miles per day in 2021, up 8.2% from 2020, and are expected to travel 9.117 billion miles per day in 2022. With 275.9 million registered vehicles in the United States, the average vehicle will travel approximately 32 miles per day.
• 69% of drivers seek best price: Retailers needs to be competitive on price because more than two in three drivers (69%) say that the gasoline price is the top reason they select a specific retail fueling location to fill up. Convenient location is a distant second, at 22%.
• 145,000 fueling stations with 1.5 million nozzles: Cumulatively there are 145,000 fueling locations, with 1.5 million nozzles. Of the 145,000, 116,641 are convenience stores selling fuel, 14,826 are fueling kiosk locations, 6,494 are “big-box” locations such as grocery or mass-merchandise, and the remainder are traditional service stations and small-volume locations, including marinas.

IN THE NEWS

New Report: Houston Region Poised To Become A Global Clean Hydrogen Hub – Following California’s announcement last week about pursuing a hydrogen hub in DOE’s infrastructure law, a new report by the Center for Houston’s Future finds that Houston, long considered the “Energy Capital of the World,” is well positioned to leverage Texas’ vast energy resources to become a global clean hydrogen hub. These energy resources include existing hydrogen production facilities and pipelines along the Gulf Coast, a base of large, sophisticated industrial energy consumers, and renewable energy assets across the state.  The report lays out how these assets can be leveraged to create a global clean hydrogen hub. Inspired by the unprecedented opportunity for Houston to lead the energy transition to a low-carbon future, the report contains the most detailed assessment to date of the economic potential and environmental impact of clean hydrogen. The report explains how clean hydrogen can be produced by adding carbon capture to current natural gas-based hydrogen plants or through electrolysis (the process that splits water into hydrogen and oxygen). Using these methods, the report shows how clean hydrogen can be an important tool in addressing climate change and reducing industrial emissions while creating high-paying jobs.

Las Vegas Hydrogen Production Plant Open for Business – Speaking of hydrogen, Air Liquide opened its largest liquid hydrogen facility, powered entirely by clean energy, in North Las Vegas, Nevada — a $250 million investment. The facility is anticipated to produce 30 tons of liquid hydrogen per day. Hydrogen fuel produced at the North Las Vegas facility will power a variety of industries in Nevada and California. Excess hydrogen produced will be sold to customers in other sectors as a low-carbon fuel source.  America’s hydrogen production potential is growing as it becomes one of the most important technologies in our clean energy portfolio.

ClearPath Energy Tour Heads to Houston – The ClearPath team traveled to Houston, Texas — the energy capital of the world — with a delegation of House Republicans to learn about Houston’s incredible potential as a carbon capture and hydrogen hub. Tour locations included:

• NET Power’s La Porte, TX carbon capture and storage (CCS) demonstration plant — the world’s first large-scale, supercritical plant of its kind.
• The Houston Ship Channel, home to refineries, petrochemical, and other industrial plants and the proposed location for a carbon capture and storage hub.

The delegation included Reps. Babin (TX), Burgess (TX), Curtis (UT), Gosar (AZ), Johnson (OH), Lesko (AZ), Miller (WV), Pence (IN), and Weber (TX) and Morgan Luttrell.

India is Latest Country to Fall Back on Coal as Power Demand Surges – Once again last week, we saw more evidence of the challenge of meeting surging power demands and movements toward clean energy.  India, the world’s third-largest emitter, is scaling away from Prime Minister Narendra Modi’s vision for the nation to become a leader in clean energy, underscoring the struggle of the world’s third-largest greenhouse gas emitter to satisfy green ambitions while meeting soaring energy demand.  Despite previously pledging to install 450 gigawatts of renewable energy capacity by 2030, India’s coal ministry announced in the past month that it would reopen old mines to offset rolling blackouts caused by increased electricity consumption for cooling. Meanwhile, the power ministry ordered plants that burn imported coal to run at full capacity.

ON THE SCHEDULE THIS WEEK

CSIS to Look at Methane Emissions – CSIS holds a forum on Wednesday at 9:00 a.m. on cutting methane emissions from the oil and gas sector to slow the pace of global warming. This session will focus on the actions taken by oil and gas producers to reduce their methane emissions.  Ben Cahill will provide an overview of the recent CSIS report, Reducing Methane Emissions from Global Gas, including policy recommendations and engagement strategies with global gas players. A discussion with Mark Brownstein (EDF) and Mary Streett (bp) will follow, focusing on how companies and markets are responding to government regulations and investor pressures to enhance methane monitoring and reduce emissions.

Yale Enviro Performance Index set for Release – The Yale Center for Environmental Law and Policy will release its 2022 Environmental Performance Index on Wednesday at 10:45 a.m.

EFI to Look at Gulf Coast Hydrogen – On Wednesday at 11:30 a.m., the Energy Futures Initiative (EFI) holds a public webinar on building the Gulf Coast clean hydrogen market. Expert panels will discuss (1) how the Gulf Coast can leverage its existing hydrogen infrastructure and expertise for clean hubs, (2) how to best utilize the U.S. Department of Energy's hydrogen hub funding to establish a foundation for broader market formation, and (3) the role of current and potential hydrogen offtakers.

Book Forum to Look at Russia, Oil – The Atlantic Council’s New American Engagement Initiative hosts a virtual discussion tomorrow at Noon on the linkages between oil, gas, and international security, based on Senior Fellow Emma Ashford’s new book, Oil, the State and War.  This panel will explore the connections between oil and international security and ask whether the war in Ukraine marks a major change in the international political economy of oil and gas markets.

Wilson Looks at Mining, Clean Energy Challenges – On Wednesday at 3:30 p.m., the Wilson Center's Environmental Change and Security Program holds a discussion of how the projected increase in mineral demand could influence markets, supply chains, and geopolitical competition, shaping the future of global peace and security. House Select Climate Chair Kathy Castor is among the speakers,

Forum to Address Gas-Fired Power Issues – On Thursday, the Center for the New Energy Economy, Duke University’s Nicholas Institute for Environmental Policy Solutions, the Great Plains Institute, Georgetown Climate Center and the Harvard Environmental and Energy Law Program host a webinar exploring low- and zero-carbon technologies available for natural gas-fired electricity generation. Speakers will include EPA’s Tim Profeta, DOE’s Carbon Management Office carbon capture official Lynn Brickett, Damian Beauchamp of 8 Rivers, Xcel Energy’s Jeff Lyng and Calpine’s James Henahan. 

WaPo to Host UN Climate Official – On Thursday at 11:00 a.m., the Washington Post Live hosts conversations with Patricia Espinosa, executive secretary of U.N. Climate Change, and Susan Stone, CEO of Ubiquitous Energy, about the role of technology in curbing the human impact on climate change.

EESI to Discuss EV Charging – The Environmental and Energy Study Institute (EESI) holds a briefing on Thursday at 1:00 p.m. on building out electric vehicle charging infrastructure. Panelists will discuss how the build out can be equitable and look at the policy solutions that can help scale up electric vehicle charging infrastructure to drive down emissions.

BPC to Host Transportation Discussion – On Thursday at 3:30 p.m., the Bipartisan Policy Center holds an in-person fireside chat with Gov. Larry Hogan (R-MD) and Exelon’s Calvin G. Butler, Jr., Senior Executive Vice President and Chief Operating Officer. Their conversation will focus on federal, state, and utility leadership in transforming America’s energy infrastructure through the implementation of the Bipartisan Infrastructure Law. Getting it right and delivering benefits to all Americans will require ongoing coordination across all levels of government and strong partnerships with the private sector. Following the fireside chat, a panel of national experts will discuss the future of electrification and transportation decarbonization. Panelists will highlight the innovative energy solutions that will be accelerated by the IIJA and discuss the policies and partnerships needed to accelerate their deployment while ensuring equity, accessibility, and affordability.

IN THE FUTURE

ACORE Finance Forum Set – The 2022 ACORE Finance Forum will be held in New York City on June 7^th and 8^th 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.

Solar Forum Set – Wood Mackenzie hosts a Solar and Energy Storage Summit in San Diego on June 6^th to 9^th.  WM’s expert team of solar and energy storage research analysts and consultants will engage in powerful conversations with leading industry experts to discuss the outlook and strategies for getting the sector back on the path to growth.

Chevron’s Wirth Talks Energy Transition – On Tuesday June 7^th at 2:00 p.m., the CSIS Energy Security & Climate Change Program hosts a conversation with Chevron CEO Mike Wirth on the future of U.S. oil and gas sector in the energy transition. In this leadership conversation, Mr. Wirth will discuss the state of the industry and the role U.S. oil and gas can play in the global energy transition.

Members of Senate, House Address Energy Summit – US Energy Stream hosts its 7^th Washington Energy Summit 2022 on June 8^th and 9^th 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. 

OEP to Discuss Climate Litigation – On June 8^th at Noon, OurEnergyPolicy holds a forum on the rise of climate litigation.  The event will feature a discussion about the role of the courts in addressing climate-related damages. Speakers include former Rep. Rick Boucher.

EESI Looks at Wildfires, Climate – On Monday June 13^th 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.