Energy Update: Week of Oct. 7

Friends,

It is a solemn day as we think about the October 7^th attacks on Israel and the year-long battle that has ensued. There are a number of very interesting items today on the topic.  First, a great Washington Post piece by our friend Joby Warrick on the details of Israel’s elaborate plan to sabotage Hezbollah communications devices, a recent National Press Club event featuring Israeli hostage families, and finally, an interesting New York Times piece focused on the many residents in Israeli villages most damaged by the Hamas attack who are still living in temporary housing one year after Oct. 7. Speaking of housing challenges, the American Friends of Nir Oz (AFNO) launched a U.S.-based non-profit organization dedicated to expanding financial and substantive support from U.S.-based donors to help rebuild Kibbutz Nir Oz and support its community, which was devastated by the October 7^th attack.  Finally, two op-eds worth a read on the bringing home the hostages in the USA Today by Daniel Lifshitz and in the New York Times from Yaffa Adar, both who had relatives in Nir Oz.

Thirty days to the election and our Bracewell team is in action helping read the tea leaves, especially on potential policy/legislative outcomes and challenges no matter who wins.  Remember to mark your calendar for November 6^th at 10:00 a.m. regardless of the outcome for a first look in our (award-winner) post-election webinar and coverage.

SCOTUS Fall Term begins in full force today. The justices will hear a total of nine arguments over five days in October (today to Wednesday and next Tues 15^th and Wed 16^th). Last week before the launch of the term, they rejected blocking EPA rules on mercury and methane. Today though, justices asked the US Solicitor General to weigh in on a request by red states to reject climate change torts brought by  state/city governments against fossil fuel companies, signaling its growing interest in the future of such cases. And Friday they said they will wade into the fight over temporary nuclear waste storage, looking at whether or not the NRC has broad authority to license private facilities away from nuclear power plant reactors. SCOTUSBlog is always a great resource.

Today, the Earthshot Foundation and OurEnergyPolicy are hosting an exclusive gathering at the Kennedy Center for the Terranauts Minologues, a serious discussion on critical minerals policy.  It is especially relevant since this week both VP Harris and former President Trump seem to agree that creating a better policy on critical mineral production and stockpiles should be a priority. Experts at SAFE’s Hoffman Center for Critical Minerals Strategy are all over this issue, are on the agenda at the Kennedy Center and are always a great resource to discuss policy options.

The 10^th annual National Hydrogen and Fuel Cell Day is tomorrow. National Hydrogen and Fuel Cell Day was created to raise awareness of a clean energy technology that is here now. October 8th (10.08) was chosen in reference to the atomic weight of hydrogen (1.008). FCHEA, its members, industry organizations, and state and federal governments are commemorating National Hydrogen and Fuel Cell Day with a variety of activities and events across the country.

On Wednesday, EIA will host a webinar to discuss price, consumption and expenditure trends for major heating fuels for U.S. households for the upcoming winter. EIA’s Winter Fuels Outlook includes U.S. national and regional forecasts for electric heat, natural gas, heating oil and propane. EIA Administrator Joe DeCarolis will speak and a panel of EIA experts will answer questions.

Finally, ACORE holds its 2024 Grid Forum on Thursday exploring the next steps on accelerating solutions for today’s needs and tomorrow’s grid challenges. Speakers include FERC Commissioner David Rosner.

As I mentioned last week, on Thursday, I leave for Cape Town, South Africa to umpire the O35 and O40 Men’s World Masters Field Hockey Championships. It will be an amazing trip. I will be only six hours ahead so I will be working a little, but I will mostly be offline until October 23^rd. USA Field Hockey had a feature on the appointments late last week if you’re Interested in more detail.

We are keeping a close eye on Hurricane Milton, especially after Helene last week. Be safe and take precautions if you are in the path.  And keep those essential workers fighting to restore power to everyone in your thoughts as well. EEI is providing regular updates HERE. 

No update next week as we celebrate the Columbus/Indigenous Peoples Day holiday. Any special updates as necessary. Call with any questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                                          

FRANKLY SPOKEN

“There are elements of the IRA that the general industry says would be bad to unwind. Everybody is working out their contingency plans for either administration.”

Mark Lashier, CEO of Phillips 66, said in an interview last month with the Wall Street Journal. Collin Eaton and Benoit Morenne’s story detail concerns in the oil and gas industry about gutting the two-year old Biden climate law.

“It’s really striking the degree of commitment the industry has made to low-carbon businesses like carbon capture, biofuels and hydrogen.”

Daniel Yergin, the vice chairman of S&P Global and a veteran chronicler of energy trends, in the WSJ same story.

ON THE PODCAST

The Politics of Pennsylvania – In this episode of the Volts podcast, host Dave Roberts explores the political landscape of Pennsylvania with state Rep. Leanne Krueger. They discuss the state's nail-biting elections, the outsized political presence of fracking, and the uphill battle for clean energy legislation in a divided legislature. Krueger provides a boots-on-the-ground perspective on climate and energy politics in this key swing state. State Rep. Leanne Krueger is a Democrat who has coordinated caucus efforts to hang on to Dems' narrow majority in the state House and rustle up Electoral College votes for VP Harris.

FUN OPINIONS

Western Energy Sanctions Are Benefiting China – A new blog post from Russian energy experts Paul Saunders and Harry Stevens says while the Western bans on importing Russian oil and the price cap may each make sense individually, their combined effect is to force Russia to sell its oil at a discount while preventing America and its key allies from benefiting from it. Saunders and Stevens suggest the policy is in turn handing China $16 billion in savings (as well as a smaller but less troublesome amount to India). The authors argue not to undo the policies, but rather to internalize the requirements of competing with China and Russia simultaneously and to evaluate future policies in that framework.

FROG BLOG

Columbia Energy Looks at Critical Mineral Financing – In a new blog post, Columbia University Center for Global Energy Policy experts write strengthening U.S. EV Battery Recycling Industry is essential to onshore critical material supply. The commentary explores the current federal and state policies designed to support the industry, including tax incentives, recycling technology research, and battery recycling regulations. It also examines opportunities to address ongoing challenges through additional measures, such as setting critical material recycling targets, harmonizing international standards, and mobilizing private capital to scale the industry for long-term success.

FUN FACTS

A Shift Away From Coal:  

IN THE NEWS

New Poll Shows Energy, Inflation Concerns – A new poll conducted by Morning Consult for API shows that voters in the swing states of Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin are frustrated by high prices and want more clarity from presidential candidates on energy issues. Between 80% and 86% of respondents to the survey expressed support for increased domestic oil and natural gas production. New polling showing nearly 9 in 10 voters in key battleground states are looking for details from presidential candidates on energy issues. The poll conducted by Morning Consult also found that 9 in 10 battleground state voters are concerned about inflation and more than 4 in 5 voters agree producing more oil and natural gas here in the U.S. could help lower energy costs for American consumers. 

US energy storage deployments continue to rise in 2024 – The U.S. grid storage market added 2773MW in the second quarter of 2024, according to data from the American Clean Power Association (ACP) and Wood Mackenzie. In their latest U.S. Energy Storage Monitor report every segment of the country's energy storage market experienced growth in the second quarter over year-ago totals, with community and commercial (CCI) increasing 61% to 87 MWh and residential increasing 12% to 423 MWh

BP to Continue Production, Reset Strategy – Reuters reports BP is backsliding on it plans to slash oil and gas output by 25% by 2030,matching other who see strong remaining need for oil and gas. When unveiled in 2020, BP's strategy was the sector's most ambitious with a pledge to cut output by 40% while rapidly growing renewables by 2030. BP scaled back the target in February last year to a 25% reduction, which would leave it producing 2 million barrels per day at the end of the decade, as investors focused on near-term returns rather than the energy transition. New CEO Murray Auchincloss will present his updated strategy, including the removal of the 2030 production target, at an investor day in February.

ON THE SCHEDULE THIS WEEK

Forum to take Deep Look at Minerals, Clean Energy – The Earthshot Foundation and OurEnergyPolicy are hosting an exclusive gathering at the Kennedy Center today for the Terranauts Minologues. The event features a select group of senior leaders in energy that will delve into the urgent issue of critical minerals and the evolving energy eco-system. This daylong event will feature stimulating presentations and dynamic panel discussions, marking the culmination of a yearlong inquiry into the security, supply chain and responsible mining challenges in ensuring a sufficient availability of essential materials for the future energy landscape.

Oxy Direct Air Capture Project EPA Hearing Continues – EPA continues a series of public meetings in Ector County, Texas on Occidental Petroleum’s Stratos project, a proposed carbon dioxide injection site located 20 miles southwest of Odessa. Oxy previously broke ground last year. Public testimony began last week Wednesday and ends this Wednesday. The proposed project — which has been under review for the last two years — would be the largest of its kind in the United States and capture and store an estimated 722,000 metric tons of carbon dioxide in three injection wells 4,400 feet underground.

Hydrogen Day Set for 10/8 – The 10^th annual National Hydrogen and Fuel Cell Day is tomorrow. National Hydrogen and Fuel Cell Day was created to help raise awareness of a clean energy technology that is here now. October 8th (10.08) was chosen in reference to the atomic weight of hydrogen (1.008). FCHEA, its members, industry organizations, and state and federal governments are commemorating National Hydrogen and Fuel Cell Day with a variety of activities and events across the country.

Infrastructure Summit Set – The Federal Permitting Improvement Steering Council is hosting an Infrastructure Developers Summit tomorrow in Washington DC.

House Resources Panel Holds Field Hearing on Oregon Water – The House Resources Water, Wildlife and Fisheries Subcommittee field hearing tomorrow at 1:00 p.m. examining efforts to improve Central Oregon's water supply.

Forum Looks at Mississippi River – Tomorrow at Noon, EESI holds a kickoff briefing of its Resilient and Healthy Rivers briefing series. This first briefing examines the environmental challenges facing the Mississippi River and solutions to address them. At this briefing, Mississippi River experts will discuss the role of federal policy in advancing strategies to improve both the health and climate resilience of the river system.

RFF Holds Forum on Environmental Justice – Resources for the Future (RFF) holds a Policy Leadership Series event tomorrow at 2:00 p.m. with Shalanda Baker and RFF Fellow and Environmental Justice Initiative Director Suzanne Russo. This wide-ranging conversation will touch on Baker’s work at the Department of Energy, the role of environmental justice amid emerging legislation and the transition to clean energy, and how to foster a culture of cooperation while mitigating climate change.

Forum Looks at Critical Minerals in Latin America – On Wednesday at 9:00 a.m., Inter-American Dialogue holds a discussion on bolstering Latin America-Japan-US Cooperation on energy transition and critical minerals supply. This event will address trends in Japanese policy and outreach toward the region, the intersection of US, Japanese, and Latin American interests, and prospects for enhanced cooperation among the US, Japan, and Latin American nations in frontier sectors, including energy transition and critical mineral supply.

Forum Tackles EU Climate Finance – The Peterson Institute for International Economics holds a virtual discussion on Thursday at 9:00 a.m. on climate and financial policies in the European Union.

Fletcher Headlines Axios Houston Clean Energy Event – On Wednesday morning in Houston, Axios Houston hosts a morning of coffee and conversations with local energy and policy leaders around investments in Houston’s clean energy transition. Local leaders now need to build the infrastructure, create jobs, and ensure equitable access for residents, all aiming to impact the community and shape Houston’s future.  Speakers include Rep. Lizzie Fletcher, Center for Houston’s Future Brett Perlman and Rice University’s Baker Institute Director Ken Medlock.

EIA to Release Winter Fuels Outlook – EIA will host a webinar on Wednesday at 11:00 a.m. to discuss price, consumption, and expenditure trends for major heating fuels for U.S. households for the upcoming winter. EIA’s Winter Fuels Outlook includes U.S. national and regional forecasts for electric heat, natural gas, heating oil, and propane. We will publish the Winter Fuels Outlook forecasts on Tuesday, October 8, as part of the Short-Term Energy Outlook. EIA Administrator Joe DeCarolis will share EIA’s Winter Fuels Outlook forecasts, and a panel of EIA experts will answer questions from attendees.

Sierra Holds Webinar on Climate Movement – On Wednesday at 7:00 p.m., the Sierra Club holds a livestream with experts to make sense of the climate movement, what this means for the climate and our future and how to get involved.

ACP Powercast Looks at Reliability Challenges – ACP holds a PowerCast event featuring its VP of Markets & Transmission Carrie Zalewski on Thursday at 8:30 a.m. to hear from industry experts about any policy changes that are needed to ensure reliability on an increasingly strained grid.

Grid Forum Set – ACORE holds its 2024 Grid Forum on Thursday exploring the next steps on accelerating solutions for today’s needs and tomorrow’s grid challenges. Speakers include FERC Commissioner David Rosner.

Forum Looks at Climate, Energy Risks – The Johns Hopkins University School of Advanced International Studies holds its virtual Global Risk Conference on Friday at 9:30 a.m. on persistent and emerging climate and energy risks. Speakers include Simon Blakey of the European University Institute, Hertie School’s Jesse Scott and Marco Dell'Aquila of Johns Hopkins SAIS Europe.

CSIS Looks at Resilient Infrastructure – On Friday at 10:00 a.m., the CSIS Sustainable Development and Resilience Initiative holds a forum to examine the importance of U.S. government climate-resilient infrastructure investments in developing countries around the world, and best practices for applying a systems approach to infrastructure planning and design in the face of extreme weather. The event will also serve to launch “Resilience at Scale: A Systems Approach to Climate-Resilient Infrastructure Planning,” a report developed through an interagency process led by the U.S. Agency for International Development (USAID) and the Millennium Challenge Corporation (MCC) in support of the President’s Emergency Plan for Adaptation and Resilience.

Forum Looks at Book on Lithium – On Thursday at 3:00 p.m., New America holds a virtual book discussion on Thursday at 3:00 p.m. on a new book, "The War Below: Lithium, Copper, and the Global Battle to Power Our Lives." Our friend Ernest Scheyder, a journalist, author and senior correspondent for Reuters, will discuss his human-focused narrative exploring the people that live on the energy transition’s front lines and an urgent guide to the rapidly growing critical minerals supply chain.

IN THE FUTURE

Gevo’s Gruber, Others to Headline Houston Infrastructure Forum – Leading SAF producer Gevo CEO Pat Gruber will headline US Energy Stream’s 7^th Energy Infrastructure Forum 2024 held on October 15^th-16^th at the Petroleum Club of Houston, TX. The Energy Infrastructure Forum brings powerful U.S. Congressmen from both sides of the aisle together with top energy executives and technology leaders to convene for off-the-record discussions and provide market intelligence on the latest energy infrastructure such as LNG infrastructure, hydrogen, ammonia and gas production, storage and transportation, O&G pipelines, power grids and power plants, renewable energy projects, carbon capture and storage, and nuclear SMR. Other speakers include Reps. Scott Peters (D-CA), Mariannette Miller-Meeks (R-IA), Paul Gosar (R-AZ) and many more.

CCS Report Launches – The Global Status of Carbon Capture and Storage 2024 report will be released on Tuesday October 15^th in a web event. This annual report highlights the key milestones achieved in the past 12 months as carbon capture and storage (CCS) continues to expand globally, playing a critical role in the effort to achieve net-zero greenhouse gas emissions and combat climate change. It outlines both the opportunities and challenges ahead, providing data designed to inform and accelerate the deployment of CCS—a proven emissions reduction technology essential to meeting global climate goals.

Cassidy Holds Louisiana Energy Forum – Sen. Bill Cassidy, member of the Senate Energy Committee, announced the slate of keynote speakers and panelists for his upcoming summit, “Louisiana Energy Security Summit: Unleashing American Abundance in a Changing Global Landscape,” in Baton Rouge on Wednesday October 16^th. Key speakers include former DOE Deputy Secretary Mark W. Menezes, former FERC Chair Neil Chatterjee, former CEQ Chairman Jim Connaughton, former Chairman of the US Export Import Bank Kim Reed, NSC Advisor David Banks, cement company Buzzi UnicemUSA CEO Massimo Toso and many more.

E&E Panel Discusses Permitting Bill – E&E News reporters host a forum on Wednesday October 16^th at 1:00 p.m. as they outline the state of play on the permitting bill talks. The panel will explore how key lawmakers are working behind the scenes to get a deal done. They will also discuss what political and policy obstacles and opportunities remain that will determine whether a deal gets done or fizzles out. Kelsey Brugger, Nico Portuondo, Pete Behr and Manny Quinones are on the panel.

Forum Looks at Transmission, Conductors – On Thursday October 17^th at 1:00 p.m., Energy Central holds a webinar where we will explore the current applications of Advanced Conductors like ACCC® Conductors to address the immediate system needs of major customers. The event looks at the surge in demand from data centers, crypto miners, fleet electrification, and other major loads and the need for increased Available Transmission Capacity (ATC). However, the challenges of routing and permitting new rights-of-way can extend new transmission project lead times to 10-15 years.

Coal Ash Assn Holds Fall Meetings – The American Coal Ash Assn holds its Fall 2024 ACAA Membership Meeting at the Hilton Lexington Downtown in Lexington, Kentucky Monday October 21^st to Wednesday October 23^rd.  

ACP Offshore WINDPOWER Conference Set for AC – On Monday October 28^th to Wednesday October 30^th at the Convention Center in Atlantic City, NJ, America’s Clean Power holds its Offshore WINDPOWER Conference & Exhibition. The future of the U.S. offshore wind industry is bright but present challenges persist. This event is dedicated to convening top developers, government officials, and key stakeholders across the industry who are working to achieve the full promise of U.S. offshore wind.  Key Speakers include NJ Gov. Phil Murphy, BPOEM head Liz Klein and NABTU President Sean McGarvey. I willal so be moderating a great panel on Tuesday on project misinformation.