Energy Update: Week of November 18th

Friends,

Well, that was an interesting weekend. President Trump announced his energy nominees, including Liberty Oil & Gas CEO Chris Wright to be Energy Secretary and ND Gov. Doug Burgum to be Interior Secretary and chair a new White House National Energy Council. Wright is a very smart individual (MIT/Berkeley) who has a deep understanding of the oil and gas industry and the importance of energy dominance. He will be able to dig through the nuance and the complexities in our energy policy and help us continue to drive forward to provide innovation and new technologies that can meet consumer needs reliably and affordably while still providing important energy safeguards and reduce emissions.

Congress is back as well. Their major focus this week will be the year-end fight over government funding. Will permitting be a part? Sen. Joe Manchin says that Senate Majority Leader Chuck Schumer told him he was open to moving his permitting overhaul reform bill during the lame-duck period. Manchin and Barrasso also said they are in talks with House Natural Resources Committee Chairman Bruce Westerman about changes to incorporate more reforms to National Environmental Policy Act procedures. The question is, what strategy will Democrats employ? Some suggest they may want to get something here that can be perceived as a victory and then fight more GOP-driven reforms after Republicans take total control in January. 

At the White House, focus seems to be on a couple things in our area: 1) Getting previously approved funding out the door in the waning days of Biden’s presidency, before Trump can undo it. New reports say that officials are “ramping up the implementation of the Bipartisan Infrastructure Law; the bipartisan CHIPS and Science Act; and the IRA; and 2) the LNG pause and what the Administration might do to impact future permits, provide some legal opportunities for LNG activist opponents and/or attempt to tie the next Administration’s hands.

FERC is meeting on Thursday and is poised to take action on the many rehearing requests submitted in response to its landmark Order No. 1920 issued in May on intraregional transmission planning and cost allocation. 

COP 29 rolls on without much significant progress. The big news was a letter from former leaders and climate experts saying the annual UN COP climate talks need to be reformed. Having been following this since 1998, I agree the process is broken, but not reasons they list. In fact, these signers actually need to look in the mirror. The real problem is the fundamental structure that puts developed countries against developing countries, leaves high-growth emerging Nations in the developing category and allows platitudes but doesn't really reward action. More on this below. Tomorrow in Baku, CEQ head Brenda Mallory speaks to BCSE and other groups. For details, visit the BCSE at COP 29 landing page.

And if you want good events, the Atlantic Council Global Energy Center on Thursday for a virtual fireside chat with Repsol CEO Dr. Josu Jon Imaz. On Wednesday, SEJ and Canary hold a webinar to explore an underreported area of energy transition coverage: industrial decarbonization. Finally, tomorrow evening at the Capitol Hill Club, ConservAmerica holds its 2024 Roosevelt Reception to honor Sens. Kevin Cramer and Dan Sullivan, as well as Reps. Andrew Garbarino and Ryan Zinke (R-MT).

Wait, Saturday’s Ohio State-Indiana is the most important game of the Big Ten season???  What?

We are around and happy to discuss where the Trump energy team may be headed. You can also listen to my segment on the Julie Mason Show on SiriusXM's POTUS radio show which discusses a lot of this.  Call with any questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                                

FRANKLY SPOKEN

"Instead of focusing on reducing energy use, we need to do much more to mobilize capital to dramatically scale deployment of clean energy in emerging and developing economies.”

Jason Bordoff, the founding director of the Center on Global Energy Policy at Columbia University, told Cipher News.

ON THE PODCAST

Bloomberg Zero Chats with EM’s Woods at COP29 – Bloomberg reporter Akshat Rathi sits down with ExxonMobil CEO Darren Woods, this week from COP29 for the Bloomberg Zero Podcast.  Woods, who made his second-ever appearance at the United Nations climate conference. Woods made the case for why incoming US president Donald Trump shouldn’t exit the Paris Agreement, and should uphold the country’s monumental climate legislation passed under the Biden administration. It’s quite the tone shift for a company that has a well-documented history of sowing doubt about the dangers of global warming. Listen now, and subscribe on Apple, Spotify, or YouTube to get new episodes of Zero every Thursday.

FUN OPINIONS

Chamber’s Clark Says Deregulation is Essential to Success – In an opinion piece in the Wall Street Journal, US Chamber of Commerce President Suzanne Clark writes the Trump Administration will have a target-rich environment to reduce regulations. The Biden administration has implemented new rules that will ultimately cost the economy a total of $1.4 trillion, according to a report by the American Action Forum. Business owners and leaders in every industry feel the pain of bureaucratic micromanagement. Consumers and employees experience it in the form of higher prices, lower wages and fewer jobs. It’s why the U.S. Chamber of Commerce has battled the worst excesses of the Biden regulatory state. All this has felt like a game of Whac-A-Mole when what we need is sweeping and lasting change. The incoming administration is set to deliver it.

Sommers: Recipe for US Energy Success – In an opinion piece in Newsweek, API head Mike Sommers outlines how the next administration and new Congress can advance commonsense energy policies that work for all Americans. President-elect Trump has a clear mandate to ensure America’s global leadership role by lifting the Biden administration’s shortsighted pause on LNG export permits immediately. This single action would reassure our allies of America's reliability as an energy partner while strengthening our geopolitical influence and supporting jobs here at home. America also needs a new, more robust five-year federal offshore leasing program. The current program under President Biden is the weakest in history and inadequate to meet our nation’s future energy needs. It's time to restore regular offshore lease sales and ensure long-term investment opportunities. Similarly, recent onshore energy policy has done more to stifle new development than support it. New leasing on federal lands is down 91% compared to the 20-year average. We must return to consistent, quarterly onshore leasing, as required by law.

FROG BLOG

Transmission Report Shows Massive Savings – In Advanced Energy Perspectives, the official blog of Advanced Energy United, Edson Perez writes that a new report says there are $123 billion in potential savings for California through innovative transmission financing. Net-Zero California’s (NZC’s) and Clean Air Task Force’s (CATF’s) timely report, Wired for Savings: Evaluating the Impact of Alternative Transmission Financing and Development Models on California Ratepayers, explores alternative transmission financing and development models and their impacts on consumers.

Republican Clean Energy Leaders Prospered on Election Day – In an opinion piece in Real Clear Energy, CRES exec Heather Reams writes the election of Republican climate champions are committed to common sense, all-of-the-above energy policies to reduce global emissions is a big victory. Republicans understand that building out the clean energy industry creates long-term opportunities for their districts, with substantial economic growth and good-paying jobs at all levels of experience. By championing innovative technologies like nuclear, geothermal and hydropower, Republican members are paving the way for their districts to have increased economic development and energy abundance.

FUN FACTS

China and Green Lending:  China is slowly ramping up its energy-related lending to developing nations, albeit with two major shifts: Beijing’s loans are greener, and smaller. That’s according to new research published by Boston University’s Global Development Policy Center and shared with Semafor.

IN THE NEWS

Energy Nominees Named – On Thursday and over the weekend, President Trump announced his energy nominees. Saturday evening, Trump said Liberty Oil & Gas CEO Chris Wright has been nominated to be Energy Secretary. Wright is a super smart individual (MIT/Berkeley) who has a deep understanding of the oil and gas industry and the importance of energy dominance. Wright is on the board of nuclear startup Oklo, and invested in geothermal startup Fervo Energy. He will be able to dig through the nuance and the complexities in our energy policy and help us continue to drive forward to provide innovation and new technologies that can meet consumer needs reliably and affordably while still providing important energy safeguards and reduce emissions. This followed on Thursday evening, Trump saying at an event, ND Gov. Doug Burgum would be Interior Secretary.  Then, in the official announcement on Friday, Trump added that Burgum would chair a new White House National Energy Council.

Here is API head Mike Sommers comments:

"Chris Wright’s experience in the American energy sector gives him an important perspective that will inform his leadership of the Department of Energy. We look forward to working with him once confirmed to bolster American geopolitical strength by lifting DOE’s pause on LNG export permits and ensuring the open access of American energy for our allies around the world.”

Scott Segal, partner at the energy-focused law and policy firm law Bracewell, offered the following comments on the recent energy picks:

“Chris Wright seems poised to bring fresh experience to role of Energy Secretary. His engineering degrees from MIT and Berkeley give him the tools to grapple with tough issues before DOE. On policy matters, he has supported a full range of energy sources, including the deployment of the newest technologies to improve the efficiency of oil and gas production. Rather than opposing renewables, he seems to have cautioned against relying solely on any one source of energy.

“Governor Doug Burgum now appears destined to be Secretary of Interior and the chief energy advisor in the White House. The latter role should be familiar to anyone who has observed the Biden administration, where top line energy policy decisions were also centralized in the White House. Burgum is a steady hand on the tiller with equal familiarity in fossil fuels and renewables given his North Dakota background. His calm demeanor was evident on the campaign trail and should serve him well in Washington.”

UN Letter Says Process is Needs Reform – A group of former leaders and climate experts say the annual UN COP climate talks are no longer fit for purpose and need to be reformed, publishing a critical open letter mid-way through what has so far been a fractious summit. Having been following this since 1998, I agree with the conclusion of the letter from UN officials, others. I have been saying this since the early 2000s having been to a bunch of these meetings. But their assessment of why the process is broken is not correct.  They actually need to look in the mirror. The group letter says among the problems they identify: COPs are too big, too infrequent, too vague, too overrun with fossil fuel lobbyists, and too mired in arcane negotiations rather than being a forum for peer pressure on countries to show concrete progress toward decarbonization. These are actually NOT the problems.  There are NOT too many stakeholders, there are plenty of meeting (they want more?), they are often too vague because they don't reflect an understanding of global energy markets/politics and they have ALWAYS and ONLY been a forum for peer pressure and that has NEVER worked. 

UN COP Fundamental Structure Is Key Problem – The real problem is the fundamental structure that puts developed countries against developing countries, leaves high-growth emerging Nations in the developing category and allows platitudes but doesn't really reward action. For example, why isn't anyone praising the US for the massive action they have taking to reduce emissions from power plants, HFCs and advance our energy transition.  We are actually doing it while all the other nations just blab about it and cast blame. Finally, the other major problem is that it largely run by activists that have very little understanding of the political and energy realities of all nations.  This is where they have to truly look it the mirror. 

For example, contrast Germany's current political and energy upheaval with the goals of its climate negotiators.  They are in absolute conflict and the climate negotiators are always the last to admit it while the piously stand on their perch at the COP.  

We need a major dose of reality in these discussions. The process doesn’t work because they don’t allow it to work and it can NEVER go as fast as they think it should go.

US is also not without blame – The best move that ever happened with climate change negotiations was George W. Bush forcing this into the G20 discussions in 2006 range.  That is the only time we really had a substantive discussion about engaging the largest emitters in ways to grow energy smarter, advance new innovative technologies and actually reduce emissions.  This approach allowed President Obama being able to corral and pressure the right nation to form the Copenhagen Agreement.  That was a key moment in climate talks that fundamentally stemmed from Bush forced G20 nations into the discussion.

But, in 2005 it should have never left the Kyoto Treaty.  It was collapsing on itself and the GWBush-led departure only codified nations to blame IS for Kyoto's shortcomings, allowing nations to agree to an unrealistic deal with Russia that would never result in real solutions.  Trump fell into the same trap in 2017 because he sees Paris as symbolic and he doesn't care about it.  I fully expect, he will make that mistake again, risking US leadership that has making more progress than every other significant nation.  

Siemens Stock Soaring – Shares in Siemens Energy continued their record rally today. They have quadrupled in the current year and are the lonely leader of the Dax. Siemens Energy raised its midterm outlook last week as it reported a new record for its order book and a narrower fourth-quarter loss, boosted by rising demand for power equipment and an ongoing turnaround at its wind turbine unit. Siemens Energy is benefiting from a strong expansion of wind power, the need to upgrade dated energy grids, and a push to keep gas-fired power plants running until enough renewable capacity is available globally.

Onion Says It Has Bought Infowars, Alex Jones’s Site, Out of Bankruptcy – The satirical news site The Onion will purchase Infowars and plans to turn it into a parody of itself, mocking “weird internet personalities” who peddle conspiracy theories and health supplements.

ON THE SCHEDULE THIS WEEK

COP 29 in Baku – COP 29 continues into its second week in Baku today continuing through Saturday. For the most up-to-date information on BCSE events and news at the international climate conference, visit the BCSE at COP 29 landing page.  BCSE hosted an event this morning with EEI Chair and Edison International CEO Pedro Pizarro, Southern’s Mark Berry, National Grid’s Rhian Kelly and several others.  Tomorrow, BCSE, The Climate Registry, Georgetown Climate Center and the U.S. Green Building Council (USGBC) host a sustainability forum with White House CEQ Chair Brenda Mallory.

Another Clean Energy Event in Baku – The International Council for Sustainable Energy (ICSE) co-hosted a UNFCCC side event in partnership with the Alliance to Save Energy and the Corn Refiners Association on how to realize the Global Stock Take energy transition goals through energy efficiency, clean energy, and a circular economy. The side event this morning discussed how the path to decarbonization calls on a broad portfolio of energy efficiency and clean energy technologies across the built environment and power sector. It will also explore how building a circular economy and taking a holistic systems approach that embraces equity and partnerships will deliver long-term and sustainable success to achieve our climate goals.

Forum Looks at Conflicts, Ecological Threats – The Henry L. Stimson Center holds a discussion today at 2:00 p.m. on exploring new data on the relationship between ecological threats and conflict. The session will include a presentation of key findings from IEP’s newly published 2024 Ecological Threat Report and expert contributions, followed by an audience-led discussion. The session will unpack the policy and program responses best placed to reduce vulnerability to ecological threats and sustainably manage natural resources — now and over the coming years.

Forum for Institutional Investors Looks at Politics – Tomorrow, AIEN US Chapter Conference on Structured Finance for New Energies will be held in in New York. Bracewell’s Liz McGinley and Dee Martin will be participating in the program conducting a “fireside chat” with James Lucier from Capital Alpha Partners following the keynote topic “US Election Implications on New Energy Investments.”

EESI Holds Wildfire Impacts Discussion – Tomorrow at the COP 29 meeting, EESI and the Woodwell Climate Research Center hold a virtual briefing (beginning at 7:45 a.m. ET) on the impacts of growing wildfire-related emissions on the Global Carbon budget, the +1.5 Limit and the Next NDCs. The panelists will present the latest science behind wildfire emissions as well as their impact on the global carbon budget and discuss the viability of the 1.5°C limit and the preparation of the next nationally determined contributions (NDCs) in light of those impacts.

Senate Energy Holds Markup – The Senate Energy Committee will mark up a host of energy legislation tomorrow at 10:00 a.m. 

House Transpo, Oversight Look at FEMA – The House Transportation and Infrastructure Economic Development, Public Buildings and Emergency Management Subcommittee holds a hearing tomorrow at 10:00 a.m. on oversight of FEMA's disaster readiness and response. Then at 2:00 p.m., the House Oversight and Accountability Committee holds a hearing on the same topic.

Decarb Forum Looks at Competitiveness – The Information Technology and Innovation Foundation holds a discussion tomorrow at 11:30 a.m. how decarbonization can boost U.S. industrial competitiveness. Rep. Chrissy Houlahan (D-Pa.) and Avi Shultz, director of the Energy Department's Industrial Efficiency and Decarbonization Office, deliver keynote remarks.

Moore to Headline ACCF Discussion – Tomorrow at 12:00 p.m., the ACCF hosts a conversation with Stephen Moore, Distinguished Visiting Fellow at The Heritage Foundation, on ‘Trump and economics. Moore is the co-author of Trumponomics: Inside the America First Plan to Revive Our Economy, along with Arthur Laffer, the father of SupplySide economics. A former member of The Wall Street Journal’s editorial board and was a senior economic advisor to President Trump in 2016, Moore is the co-founder and former president of the Club for Growth, the author of six books, and is a regular commentator on economic issues for various media outlets. 

ConservAmerica Honors Congressional Champions – Tomorrow evening at the Capitol Hill Club, ConservAmerica holds its 2024 Roosevelt Reception with members and supporters of the Roosevelt Conservation Caucus to honor its 2024 Congressional Champions, which includes Sens. Kevin Cramer and Dan Sullivan, as well as Reps. Andrew Garbarino and Ryan Zinke (R-MT).

Curtis, Menezes Headline C3 Breakfast – C3 Solutions is holding a breakfast discussion on Wednesday at 9:00 a.m. in the Capitol Hill Club to preview energy and environment policy for Congress and the next administration. The event will feature Senator-elect John Curtis (R-UT) and former DOE DepSect Mark Menezes, currently head of the US Energy Association.

Forum Looks at Coastal Resilience – The Henry Stimson Center holds a discussion on Wednesday at 9:00 a.m. on coastal climate resilience at the Finance COP. The event will focus on Toamasina, Madagascar and climate-related economic loses.

Senate Environment Looks at Safe Drinking Water, Holds NRC Nominee Vote – The Senate Environment Committee holds a hearing on Wednesday at 9:45 a.m. looking at successes, challenges and the future of Safe Drinking Water Act. Prior to the hearing, the Committee holds a markup to vote on the nominations of Matthew Marzano to be a member of the Nuclear Regulatory Commission.

Senate Approps Looks at Disaster Funding –  The Senate Appropriations Committee holds a hearing on Wednesday at 10:00 a.m. focused on a review of disaster funding needs.

Forum Looks at Hydrogen – Infocast’s Global Clean Hydrogen: American Production & International Markets Conference will be held in Houston on Wednesday.  The event focuses on the development and expansion of clean hydrogen production in the United States and its potential for international markets, bringing together project developers, buyers, financiers, and industry experts to discuss strategies and insights on navigating the global clean hydrogen landscape. Bracewell’s Parker Lee will be moderating the panel on large-scale private project development.

SEJ Looks at Decarbonization – On Wednesday at 1:00 p.m., the Society of Environmental Journalists (SEJ) in partnership with Canary Media holds a webinar to explore an essential yet underreported area of energy transition coverage: industrial decarbonization. Canary Media reporters Maria Gallucci, Jeff St. John and Julian Spector look at the challenges heavy industries like steel, cement and concrete face moving toward sustainable production. You'll gain invaluable insights into innovative technologies and policy solutions — including the Biden administration's $6.3 billion program to reduce heavy industrial emissions.

FERC Holds Monthly Meeting – FERC holds its December meeting on Thursday at 10:00 a.m. FERC is poised to take action on the many rehearing requests submitted in response to its landmark Order No. 1920 issued in May on intraregional transmission planning and cost allocation.  This order, which was voted out 2-1 by the Commission with a lengthy dissent from Commissioner Mark Christie, sets forth a 20-year planning horizon and identifies numerous state policy and other considerations that are meant to feed into the transmission planning process, while allocating costs among those who are perceived to benefit from such facilities.

Forum Looks at Climate Policy Under New Leaders – The Atlantic Council's Global Energy Center holds a virtual discussion on Thursday at 10:00 a.m. on the evolving landscape of transatlantic energy security, climate policy, and competitiveness under new European and US leadership. The event will feature a virtual fireside chat with Dr. Josu Jon Imaz, Chief Executive Officer of Repsol. The conversation will explore the evolving landscape of transatlantic energy security, climate policy, and competitiveness under new European and US leadership.

Harrell to Address Climate Challenges – Dynamo will hold a virtual event on Thursday at 11:00 a.m. with ClearPath CEO Jeremy Harrell to dive into the US election results, exploring what a Trump Presidency means for climate, both for the US and the world.

Columbia Forum to Focus on Sustainable Energy Careers – On Thursday at 6:00 p.m., the Center on Global Energy Policy at Columbia SIPA Women in Energy (WIE) initiative holds a forum to hear from women who have successfully begun a business in the sustainability space. The event seeks to provide founders with exposure and information to grow their businesses and jobseekers and students with content and connections to access the entrepreneurial space. The WIE initiative envisions a world with equal gender representation at every level within the energy sector. Our mission is to elevate women and enhance inclusion within the energy workforce by developing and sharing research, expanding entry into the sector, and supporting professionals.

IN THE FUTURE

Thanksgiving – November 28^th

Major Hydrogen Conference Set for Houston – On December 4^th, ThomsonReuters Events Energy Live hold a 2024 Hydrogen Conference in Houston. Bracewell’s Tim Urban will be leading a panel discussion on the state of clean hydrogen with panelists including bp’s Tomeka McLeod, Plug Power’s Sanjay Shrestha and Ana Quelhas of EDP. FCHEA CEO Frank Wolak, SoCal Gas expert Neil Navin, Air Liquide’s Laura Parkan and Brett Perlman of the Center For Houston's Future also speak.

DOE Deploy24 Summit Set – Demonstrate Deploy Decarbonize 2024 (Deploy24) is the second annual gathering of decision makers from across the private and public sectors—including senior industry executives, capital allocators, community leaders, and others across the clean energy supply chain—all focused on accelerating the deployment of critical energy and decarbonization technologies and supply chains in the United States. Hosted by DOE, Deploy24 builds this private-public dialogue through a range of unique formats, from keynote addresses to rigorous, off-the-record workshops organized by scalable technology, all with an urgent focus on the immediate opportunities and challenges to accelerating our domestic energy transformation. The Business Council for Sustainable Energy is a sponsor and Gevo CEO Pat Gruber is expected to be among the speakers.

Congressional Energy Forum Set – EnergyStream holds the 5^th Energy Transition Forum 2024 on December 4^th & 5^th at the Cosmos Club of Washington, DC. The Forum brings powerful U.S. Senators and Congressmen from both sides of the aisle, together with top energy executives to explore in-depth the energy strategies and policies to achieve a sustainable, clean, reliable and affordable energy future.