Energy Update: Week of October 31

Friends,

Happy Halloween…  As you may know, each year at this time, I whip up batches of specialty pumpkins seeds, a tradition started when my kids were little (because we always had SO many pumpkins). Well, the kids are gone, but the pumpkin seed tradition continues because of demand from my colleagues. Today, I have a special batch of Old Bay- and Ranch-flavored seeds in the house.

Wow, just 8 days to election day and COP 27 Starts in Egypt on SUNDAY!  Remember, as always, the political/policy experts at Bracewell will hold our annual post-Election impact analysis webinar on Wednesday November 9^th at 11:30 a.m.  Link for Registration coming soon…

On COP27, there is a lot happening. Ministers/Leaders are expected early next week (President Biden will be there on Nov 11) while last Thursday, the President signed the Kigali Amendment, the international part of the agreement to phase out HFCs.  As we approach the run up for COP 27 in Egypt, I want to remind you of this important piece of the effort to create a significant US climate approach. Remember, the beginning of this effort was the bipartisan passage of the AIM act in December of 2020 that when implemented, will reduce global temperatures by 0.5° C. Add this to the infrastructure legislation and the recent climate package and the US is positioned as strong as it will ever be as it heads into a COP meeting. And now the big question is how with the US use that position of strength in international discussions about the current European energy challenges, loss/damage issues with developing countries, technology transfer and additional pledges. BSCE, the Chamber’s Energy Institute, EPRI, the global cement industry and many others all have experts there and are holding events. Let us know if you are going…

This week: OPEC released its 2022 World Oil Outlook today; Dynamo Hub holds a virtual conversation tomorrow focusing on recent US climate policies with ClearPath’s Jeremy Harrell; EPRI holds its Sustainable Energy Research Summit on Wednesday; and ABA and Howard U Law School hold an energy transition conference on Friday.

And as the President returns to more talking point/political comments about gas prices again later today after 3Q earnings announcements from oil majors, it is important to note that increasing energy demand and constrained supply coupled with geopolitical instability and faulty policy decisions have driven fuel prices higher. The administration should instead focus on addressing the fundamental economic and security challenges we face by spurring more investment in American energy, infrastructure and markets that enable U.S. consumers to benefit from America’s reliable energy resources.

Mark your calendar because our friends at E&E News say Senate Energy could take up FERC Chair Rich Glick's renomination as soon as Nov 15^th. Fall Sports playoff time is here, ALREADY!!!  Call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

"Although I can recognize these acts of justice may seem outrageous to people, I challenge them to feel the outrage of destruction, death and murder all Western governments and corporations are committing to our animals, neighbors in the south and ecosystems.”

18-year-old climate activist Elijah McKenzie-Jackson, campaign coordinator for youth climate strike movement Fridays for Future International, told Axios in an email that history tells us civil protests like these are necessary for change.

ON THE PODCAST

Climatetech for Developing Economies – On the Catalyst with Shayle Kann podcast this week, guest host Lara Pierpoint talks to Kate Steel, CEO of Nithio, a finance company focused on off-grid clean energy in Africa. Kate and Lara discuss the options for separating economic growth from fossil fuels. Kate argues that we have the technology to develop low-carbon electrified economies in developing economies — we just need to deploy it.

FUN OPINIONS

Saudi Expert Discusses Oil Cuts, Saudi Action – In a guest essay in the New York Times, Saudi expert and author Ellen Wald explains why OPEC Is cutting oil production and why there is not much the US can do about it.  Wald explains Saudi Arabia had legitimate, self-interested economic reasons for pushing these cuts and discusses the focus on an expected global recession. Wald says the Biden administration simply has no legislative or legal avenues to retaliate against Saudi Arabia that wouldn’t also hurt American consumers, because we are part of the global oil economy. Wald: “The most effective action to counteract the cut in Saudi oil production would be to ease the regulatory burden and offer unabashed support for the American oil and gas industry.”

FROG BLOG

WSJ Editorial: A Energy Education for Dems – The Wall Street Journal editorial page writes in a piece yesterday that if Democrats lose next week’s election, one reason will be soaring energy prices. The lesson that an electoral defeat should drive home is that this is the result of their own policies. “Biden and fellow Democrats simply refuse to understand the economic consequences of their assault on American fossil fuels. They have come to believe that climate is a crisis and that banishing oil and gas is urgent. But that means higher prices, which they now blame on the very companies they want to go out of business. Economic logic won’t persuade them, but maybe a rout at the ballot box will.”

FUN FACTS

IEA Highlights Massive Critical Minerals Need: The latest IEA report is a treasure trove of energy facts and information. Axios produced this great chart from IEA data on the massive amount of critical minerals needed for clean energy technologies.

IN THE NEWS

Gallup Policy Poll Shows Economy on Top – The latest Gallup Polling today says among the policy issues being debated and discussed this election year, the economy leads in importance to Americans. Nearly half of U.S. registered voters, 49%, say the economy will be extremely important to their vote for Congress. But abortion and crime are nearly as prominent; 42% and 40% of voters, respectively, say each of these is extremely important. Gun policy and immigration constitute third-tier election issues, rated extremely important by 38% and 37% of voters, respectively. Fewer, 31%, say relations with Russia is extremely important to their vote, while the 26% focused on climate change makes it the least influential issue tested in the Oct. 3-20 Gallup poll.

IEA Report World Energy Outlook Shows Potential Fossil Peak – The International Energy Agency, for the first time, is projecting a noticeable peak in overall fossil fuel consumption within this decade under nations' existing policies. With the world in the midst of the first global energy crisis – triggered by Russia's invasion of Ukraine – the World Energy Outlook 2022 (WEO) provides indispensable analysis and insights on the implications of this profound and ongoing shock to energy systems across the globe.  Based on the latest energy data and market developments, this year’s WEO whether the setback will impact clean energy transitions. It also looks at which energy security risks lie ahead on the path to net zero emissions. The WEO is the energy world’s most authoritative source of analysis and projections. This flagship publication of the IEA has appeared every year since 1998. Its objective data and dispassionate analysis provide critical insights into global energy supply and demand in different scenarios and the implications for energy security, climate targets and economic development.

US Rig Count Rises in October – The number of US oil and natural gas rigs declined by three to 768 last week, but the monthly rig count increased for the first time in three months in October, gaining a net three rigs, according to Baker Hughes. Declines were recorded in Texas, Louisiana and North Dakota last week, while Alaska, New Mexico and Oklahoma each added one rig.

Diesel Crunch Adds Fuel to Inflation Fire – A domestic and global crunch in diesel supplies could lift prices for the fuel and lead to higher shipping and heating costs, exacerbating inflation, analysts warn. "Higher diesel prices have the potential to create even stronger inflationary pressures especially if the current price spike is sustained, adding significant downside risk to demand and increasing the chances of a global recession," said Wood Mackenzie analyst Suzanne Danforth. Analysts say that a confluence of factors, long bubbling beneath the surface, are now coming to a head as colder temperatures bring more seasonal demand for diesel, a fuel that powers trucks and buses and is also used in heating. 

Sempra to Develop Cross-Border Wind Farm – Sempra Infrastructure and Silicon Valley Power announced they have entered into a 20-year power purchase agreement (PPA) for the long-term supply of renewable energy to the City of Santa Clara, Calif., from the proposed Cimarrón wind project, Sempra Infrastructure's cross-border wind generation facility under development in Baja California, Mexico. Cimarrón is expected to be a 300-megawatt (MW) wind generation facility that utilizes Sempra Infrastructure's existing cross-border high voltage transmission line to interconnect and deliver clean energy to the East County Substation in San Diego County. Cimarrón is being developed to include approximately 60 wind turbines with a capacity to produce enough energy equivalent to the annual energy consumption of more than 84 thousand homes and is expected to reduce greenhouse gas emissions by nearly 210,000 metric tons of carbon dioxide equivalent (CO2-eq) per year.

ON THE SCHEDULE THIS WEEK

Forum to Look at Climate, Health Issues – Tomorrow at 9:00 a.m., the Wilson Center’s Maternal Health Initiative, in collaboration with UNFPA, holds a panel discussion addressing the lasting effects of climate change on maternal and newborn health outcomes. Panelists will share lived experience, evidence-based research, and innovations and policies from regions most directly impacted by climate change.

Carnegie Looks at COP27 – The Carnegie Endowment for International Peace holds a virtual discussion tomorrow at 10:00 a.m. on what to watch for at COP27.  Experts Dan Baer, Noah Gordon, Amr Hamzawy and Zainab Usman will hold a 30-minute Carnegie barstool chat to preview the year’s biggest event for climate diplomacy.

Forum to Look at Clean Energy Innovation – Dynamo Hub holds a virtual conversation tomorrow at Noon focusing on the recent climate policies that have been enacted here in the US. Panelists will include Jeremy Harrell, Chief Strategy Officer at ClearPath and Kyle Hayes, Special Counsel at BakerBotts. The discussion will focus on the significant climate policies that have been enacted in rapid fire fashion with the bipartisan Energy Act of 2020, the Infrastructure Investment and Jobs Act (bipartisan infrastructure bill), the bipartisan CHIPs and Science bill and the Inflation Reduction Act. The combination of these policies represents a significant shift in federal policy toward clean technology demonstration and deployment. Practical implementation of these laws are important if the U.S. is going to meet the emission reduction goals the public and private sector has been committing to in recent years.

Forum Looks at Climate, War – The Quincy Institute for Responsible Statecraft holds a virtual discussion tomorrow at Noon on the Pentagon, Climate Change and War. University of Oxford Professor and Quincy non-resident fellow Neta Crawford traces the link between US military primacy and rising greenhouse gas emissions. Crawford and former California Governor Jerry Brown will discuss U.S. foreign policy end the cycle of high military spending. Former Congressman John Tierney will moderate.

Forum to Discuss Climate Agenda, Book – Columbia Global Energy Program Fellow David Sandalow and a team of co-authors have comprehensively updated his Guide to Chinese Climate Policy, exploring these issues and more. In an event tomorrow at 1:00 p.m., Sandalow, Michal Meidan, Sally Qiu, and Edmund Downie discuss their new book, which includes eight new chapters on topics including the manufacturing sector, clean energy R&D, clean energy R&D and the food system. The discussion will be especially timely, with major international meetings on these topics in November including COP27 in Egypt and the G20 Summit (where Chinese President Xi Jinping will meet with US President Joe Biden and other world leaders) in Indonesia.

RFF Looks at Climate Law Issues – Resources for the Future (RFF) holds a forum tomorrow at 1:00 p.m. that will examine the IRA’s provisions targeting “energy communities” and what it could mean for fossil fuel-dependent communities. Researchers from RFF will present their analysis of the provision’s potential impacts, alternative interpretations, and a new approach for defining an “energy community.” Then, a panel of experts will discuss its effectiveness, uncertainties behind the law’s implementation, and the broader implications of the transition to a net-zero economy.

EPRI Holds Sustainability Summit – The Electric Power Research Institute (EPRI) holds its Sustainable Energy Research Summit on Wednesday November 2nd. A pre-summit reception will also be held on the evening of tomorrow at 7:30 p.m. This second annual Summit will explore pressing issues around sustainability performance of energy companies.

Energy Symposium Set for Texas A&M – The 11^th annual US C3E Women in Clean Energy Symposium & Awards will be held on Wednesday at the Bush School of Government and Public Service at Texas A&M. The event is co-hosted by DOE, Texas A*&M’s Energy Institute, the MIT Energy Initiative and Stanford Energy. Realizing a decarbonized energy system requires new strategies, policies, and innovative technologies, all while driving the creation of new jobs and improving the quality of life for all people. Key thought leaders will explore how It is we can steadily pursue sustainable energy goals through current and future challenges. Sect Granholm is among the speakers.

Axios Talking Politics – On Wednesday at 8:00 a.m., Axios holds a live event in Washington, D.C. exploring some of the biggest global news stories of the day. Newsmakers with domestic and international perspectives will break down the latest headlines – from this year’s U.S. midterm elections to the most recent leadership shift in the UK. Axios Co-founder Mike Allen, Congressional Reporter Alayna Treene and Political Reporter Alexi McCammond will host one-on-one conversations with British Ambassador to the US Karen Pierce, White House Advisor Anita Dunn, White House Deputy CoS Jen O'Malley Dillon, for EPA head and NJ Gov. Christine Todd Whitman and Voto Latino’s María Teresa Kumar.

WaPo Hosts ARPA-E Head, Climate Official – Washington Post Live hosts a forum on Wednesday morning at 9:00 a.m. focusing on the rewards and challenges of being part of the federal workforce, strengthening innovation in government and attracting a new generation to public service. Speakers include former Rep. Will Hurd, Jennifer Gerbi, ARPA-E acting director and Varun Sivaram, senior advisor to the U.S. climate envoy.

AC Forum To Address COP27 Clean Energy Deployment – The Atlantic Council’s Global Energy Center, Africa Center, and USAID’s Power Africa hold a forum on Wednesday at 9:30 a.m. for a discussion on creating enabling environments across the range of emerging markets on the African continent to accelerate deployment of clean energy systems and build resilient green economies. During this discussion, experts will highlight opportunities to support US and African business partnerships to increase energy access in line with net-zero goals across a diverse range of African nations.

Forum to Preview COP27 – On Wednesday at 11:00 a.m., the Environmental and Energy Study Institute (EESI) holds a briefing on what to expect during the upcoming international climate negotiations in Egypt (COP27). Panelists will unpack the overall process of international climate negotiations, explain the key areas of negotiation expected to be at play at COP27, review possible outcomes, discuss how new U.S. laws impact the path forward, and explore what it all means for Congress.

Forum to Look at State of Climate Action – On Thursday at 10:00 a.m., the World Resources Institute holds a high-level launch event for the State of Climate Action 2022 report. Developed by Systems Change Lab, the report provides a clear snapshot of the transformations needed across sectors to address the climate crisis. The research reveals some bright spots but overall finds that pace and scale of transformations needed to limit warming to 1.5 degrees C requires efforts to rapidly accelerate.

Forum to Look at Latin American Mining Issues – On Thursday at 11:00 a.m., the Wilson Center’s Latin American Program 2022 holds a forum to discuss decarbonization pathways in Latin America’s mining sector. 

Forum to Look at Energy Transition – GreenBiz holds a forum on Thursday at 1:00 p.m. to discuss an integrated approach to simplifying the energy transition. Nearly 60% of Fortune 500 companies are committed to reducing their carbon footprint, yet the world currently faces pressures unprecedented in recent history – supply chain disruptions, energy price volatility, economic uncertainty and more.

Forum to Look at Military Electrification – The Global Energy Center and the Scowcroft Center for Strategy and Security’s Forward Defense practice hold a public conversation on accelerating the electrification of US military ground vehicles on Thursday at 3:30 p.m. in person and via Zoom. This event will feature keynote remarks from Douglas Bush, assistant secretary of the army for acquisition, logistics, and technology, as well as launch an Atlantic Council issue brief which sets forth key considerations and policy approaches for transitioning US military ground mobility to electric power.

Forum to Look at Grid – The American Bar Association and Howard University's School of Law hold an energy transition conference on Friday looking at evolving legal frameworks and what they mean for the US Energy Grid. This forum seeks to explore these issues from both energy and environmental perspectives, offering a high-level look at grid fundamentals before digging into the key challenges posed by this energy transition: how to coordinate between new and existing stakeholders, balance environmental goals against technological limitations, secure the grid against natural and cyber threats, and better engage with and serve the interests of end-consumers.

IN THE FUTURE

COP 27 Begins in Egypt – The United National climate meetings (COP 27) begin on Sunday November 6^th in Sharm el-Sheikh, Egypt. The conference will run through November 18^th.

ELECTION DAY – Mid-Term Election, Tuesday November 8^th

Forum Discusses Private Energy Cap During COP Event in Egypt – The Columbia University’s Center on Global Energy Policy, along with the United States International Development Finance Corporation (DFC) and the Mo Ibrahim Foundation, hold a special event on Tuesday November 8^th at COP27 in Egypt to explore concrete actions that can be taken to mobilize private capital for energy opportunities in Africa and other emerging markets while pushing forward with aggressive climate action. The discussants will explore a range of ideas and issues including tools for de-risking emerging markets investments; novel approaches to blended finance to unlock and mobilize capital; and how the decision makers can ensure equitable solutions in finance.

Forum Looks at Offshore Wind in CA – The American Clean Power Association holds a forum next Tuesday November 8^th at 11:00 a.m. on the challenges of offshore wind in California. The geology of the west coast of the U.S. poses specific and unique technical challenges: steep seabed slopes, earthquake risks, very deep waters, etc. Experts will present some of the unique aspects of offshore wind in California through different phases of project development.

Forum Focused on Post-Election Brazil – On next Tuesday November 8^th, the Inter-American Dialogue will host an event breaking down the elections results in Brazil as well as discussing what lies ahead for Latin America’s largest democracy. In this expert panel, they will explore the outlook for energy and climate policy in Brazil following election results. The discussion will focus on topics like hydroelectricity dependence, management of Petrobras, market liberalization, renewable auctions, fuel pricing policy, climate commitments, and deforestation. For more information and a list of speakers, see the agenda below.

Forum Looks at Clean Energy Development Participation – The Clean Energy States Alliance holds a forum on Wednesday November 9^th at 1:00 p.m. on innovative avenues to public participation in clean energy development. The discussion will highlight two impressive and impactful state programs in Connecticut and Washington that are accelerating the development of clean energy while increasing public participation in the process.

Forum to Look at European Energy Security – Georgetown University’s PREEA and SFS Energy hold a forum that brings together three energy experts from government, industry, and academia to explore the challenges European leaders will face this coming winter on Wednesday November 9^th at 5:30 p.m. With Russia's continued aggressions in Ukraine, European energy supplies have been drastically reduced and disrupted. Three energy experts from government, industry, and academia will explore the challenges European leaders will face this coming winter

Chamber Forum Set – The Chamber of Commerce Foundation holds its 2022 Corporate Citizenship Conference & Awards on November 16-17 in Washington, D.C. The forum will feature policy discussions, interactive breakout sessions and exclusive field trip opportunities to see impact in action.

BOEM Plans Dec. 6 Leasing Round for CA Offshore Wind – The Bureau of Ocean Energy Management has confirmed it will hold a leasing round for five offshore wind tracts in California's Morro Bay and Humboldt Bay areas on Dec. 6. The sites could support 4.5 gigawatts of capacity and would support both the Biden administration and California's offshore wind targets.