Energy Update: Week of October 3rd

Friends,

I was in Philly yesterday for crosstown rivals Temple and Drexel, and after a two-hour, hard/steady rain, I had to go to Pat’s for a “Cheez Whiz wit it” to reward myself. So worth it!!!  And now I will atone for that visit as we’re ready for part two of the High Holidays with Yom Kippur on Wednesday.

Last week, Sen. Manchin’s permitting deal slid (as predicted) to the post-election Lame Duck Congress along with the Budget CR (which passed Friday). Florida was hammered by Hurricane Ian and UAW and The Metals Company announced that they have entered into a labor neutrality agreement to bolster the critical mineral supply chain and to lay the groundwork for sustainable production of electric car batteries while creating a path to more good union jobs.

This week, President Biden heads to Puerto Rico and Florida. Other items include:

SCOTUS Fall Term: The Supreme Court launches its Fall term TODAY. SCOTUS will have several enviro cases before it including another review of the Waters of the US (WOTUS) rule which it launched the term with this morning. The outcome could affect two EPA rulemakings that aim to define WOTUS under the CWA, as well as a Section 401 proposal that aims to restore veto power to states for certain projects. Good information here at SCOTUSblog.

Interior Offshore Comment Period: And you may remember on Friday before the July 4^th weekend, Interior released its offshore drilling five-year plan options. The Proposed Program includes no more than 10 potential sales in the Gulf of Mexico (GOM) and one potential lease sale in the northern portion of the Cook Inlet Planning Area offshore Alaska, the same as in the Five-Year Program finalized in 2016. Comments are due on Thursday but the potential lease sales will likely be further refined and targeted. The Final Program also may include fewer potential lease sales, including no lease sales. Expect to hear from the Chamber, API, NOIA and many others.

OPEC+ Production Cuts: Oil prices are sharply upward this morning as traders are ready for OPEC+ to announce a significant output cut when the coalition meets on Wednesday in Vienna.  Axios reports that the decision will have US political ramifications by potentially pushing crude prices — and hence gasoline prices — back upward after months of declines. A production cut also runs inconsistent with the claims Saudi Arabia made to President Biden this summer.

Congress is out until after the election so while they are back home, we at Bracewell’s PRG are re-starting our PRG Pulse, an award-winning political round up/election analysis series, for the 2022 Midterms. The Lobby Shop team chats about the Midterms – what to watch and what’s at stake – in this episode, featuring our own Liam Donovan’s assessment of why this year’s election may buck historic trends. Look for regular *Pulse Checks* in coming weeks.

Finally, Alaska’s Fat Bear Week 2022 is Wednesday October 5^th to Tuesday October 11^th. Your vote decides who is the fattest of the fat. Matchups will be open for voting between 12 - 9 p.m. Eastern (9 a.m. - 6 p.m. Pacific). Download your bracket to predict your own fat bear winner. This is a single elimination tournament. For each match-up, vote for the bear you believe best exemplifies fatness. The bear with the most votes advances to the next round. Only one will be crowned champion of Fat Bear Week.  GET YOUR VOTES IN NOW!!!!

See you next week…Call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

"I think that most people who are in the venture capital space don't actually understand how infrastructure finance works."

Jigar Shah, head of DOE's loan programs office as part of his wide-ranging interview with Axios Pro Climate Deals' Alan Neuhauser.

ON THE PODCAST

NYT Podcast Discusses Deep Sea Mining Promise, Peril – In this week’s CERA Conversions, Senior officials from the U.S. Treasury Department explore the complex dimensions of the proposed plan to pursue a price cap on Russian oil and their impact for the international community. Speakers include

Assistant Treasury Secretary for Economic Policy Ben Harris and Assistant Treasury Secretary for Terrorist Financing and Financial Crimes Elizabeth Rosenberg.

Solutions for a Net-Zero Economy: Reimagining Waste – In commemoration of the Business Council for Sustainable Energy's 30^th Anniversary, the Solutions for a Net-Zero Economy interview series promotes the leadership and innovation of clean energy businesses and the membership of BCSE. This week’s featured speaker is Brightmark CEO Bob Powell, who is  working toward decarbonizing the economy by focusing on recapturing the value in waste products – everything from food waste and livestock manure to difficult-to-recycle plastics. We deploy circular waste solutions focused on plastics renewal (circular plastics) and anaerobic digestion (renewable natural gas) that disrupt the status quo and make change happen.

FUN OPINIONS

Heitkamp: NatGas is Essential – In an op-ed in The Wall Street Journal, former North Dakota Senator Heidi Heitkamp says the US can again serve as the beacon of light for a suffering world by putting aside political games and investing in natural-gas infrastructure to strengthen global security and help solve world hunger. More natural-gas exports can stabilize allied democracies and protect citizens from a looming winter season where energy shortages are a real risk. They can reduce costs and provide the essential feed stock for repowering fertilizer plants to increase output and better secure global food supplies. And natural gas can aid in the fight against climate change by providing a low-carbon alternative to nations that currently rely on coal. The U.S. has driven its carbon emissions to 30-year lows using natural gas.

FROG BLOG

Reams: More to Do on Clean Energy – In an opinion piece in The Hill, CRES head Heather Reams writes that changing attitudes reflect the real results of America’s investment in clean energy development and energy innovation. According to the Business Council for Sustainable Energy’s Sustainable Energy in America 2022 Factbook, the U.S. has now surpassed 200 gigawatts of utility-scale clean energy, and energy productivity has increased 16.1% over the past decade. Key priorities—streamlining permitting, preparing utilities, and securing domestic supplies—can help the U.S. avoid the worst consequences of the emerging energy crisis and the ongoing climate crisis.

FUN FACTS

• Refineries In the News:  Petroleum refineries are large-scale industrial complexes that produce petroleum products from crude oil. Each refinery operates differently, but virtually all refineries share three basic processes for separating crude oil into various products: Distillation, Cracking and Reforming. (American Energy Society’s EnergyToday)

IN THE NEWS

UAW Supports Deep Sea Mineral Collection Efforts – The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) and The Metals Company (TMC) announced that they have entered into a labor neutrality agreement to bolster the critical mineral supply chain and to lay the groundwork for sustainable production of electric car batteries while creating a path to more good union jobs in the United States. TMC will process and eventually recycle key battery metals responsibly collected from polymetallic nodules that lay unattached on the seafloor in the Eastern Pacific off the coast of North America. Battery metals, many of which are included on the U.S. critical mineral list, are an essential ingredient to decarbonization and without secure supply and processing capabilities, the American automotive industry and American jobs underpinning the clean energy transition remain vulnerable. Building large-scale metals processing infrastructure and mineral supply chains in the United States will enhance our national and economic security and help ensure TMC’s processing operations create good-paying U.S. jobs.

UAW President Ray Curry stated, “UAW members helped create America’s middle class by bargaining agreements that lifted not only their standard of living, but those in entire sectors of our economy.” He adds, “We have insisted that the transition to electric vehicles must not come at the expense of autoworkers, their families, and communities. We commend TMC for showing companies that the way forward should include respect for the rights of their future workforce to join together and collectively bargain for good wages, benefits, and working conditions.”

UAW believes that the transition to EVs demands the creation of a strong U.S. supply chain not only for batteries but also the critical metals which power those batteries. Solving this problem will require bold and innovative solutions, and this agreement with TMC is a major step toward ensuring EVs and its components which are built in the US. For years UAW has highlighted the supply chain vulnerabilities for battery metals and semiconductors which severely affect the U.S. auto industry. As metal refining, EV battery material and cell production, and recycling centers that will power the domestic electric automotive industry expand, the UAW maintains the work must be done by workers who collectively bargain. UAW will help ensure that the highly skilled labor necessary to support this sustainable vision has a voice in the workplace as the industry expands. TMC in turn acknowledges that future processing employees will have the freedom to choose union representation, and it embraces expeditious procedures to determine majority status.

US Oil Refineries Seen Running Full Tilt Next Quarter – Analysts expect US oil refineries to run at more than 90% of capacity for a third consecutive quarter in the last three months of the year as robust diesel margins and tight global supplies encourage companies to process more crude, although unplanned refinery outages, a possible recession and hurricane season represent downside risks. US refinery utilization has averaged more than 92% and 93%, respectively, in the second and third quarter, up from 89.5% in the first quarter, according to Matthew Blair of Tudor Pickering Holt & Co.

Refiners, DOE Spar Over Crude Prices – Speaking of refiners, in a virtual meeting Friday with oil refining executives, Biden administration officials threatened to impose fuel export curbs and require minimum domestic fuel inventories unless refiners take voluntary action to improve fuel availability, according to sources familiar with the discussions. In a joint statement, the American Petroleum Institute and the American Fuel and Petrochemical Manufacturers said, "The focus of this administration should not be on trapping product in the United States or diverting fuel away from retail sales and into storage, but rather on how to better produce and more affordably move US product within the United States."  Once again, it seems the Administration is showing a lack of knowledge about how oil markets actually work.

EIA Releases NatGas Annual – The EIA released its 2021 Natural Gas Annual and it shows U.S. dry natural gas production increased year over year in 2021, after declining year over year in 2020. Dry natural gas production was the highest for any year on record, dating back to 1930. Natural gas consumption also increased year over year in 2021. For the fifth consecutive year, the United States was a natural gas net exporter (exports minus imports) in 2021, exporting 3,845 Bcf (10.5 Bcf/d) more natural gas than it imported for the year.

DOE Looking at Defense Production Act for Clean Energy – The Energy Department issued a request for information this morning to determine how it should leverage its DPA authority. DOE is looking for ways to rapidly expand US manufacturing of solar panel parts, building insulation, heat pumps, clean electricity-generated fuels and power grid infrastructure like transformers. The request seeks public input on the supply chain challenges and opportunities, domestic manufacturing — including at the small- and medium-sized scale — workforce investment and equity and community access. DOE will pursue a number of approaches under its DPA authority to strengthen U.S. supply chains, including purchases, purchase commitments and financial assistance. The RFI is focused on transformers and electric grid components; solar photovoltaics; insulation materials; and electrolyzers, platinum group metals, and fuel cells for clean hydrogen.

ON THE SCHEDULE THIS WEEK

DOE TO Look at Critical Grid Infrastructure – The DOE holds a forum today at 4:00 p.m. on building a resilient grid. This panel will focus on understanding the real and present risks to the grid from the national perspective, the defender's perspective, as well as actionable steps that can be taken to ensure its resiliency. NRECA’s Emma Stewart is among the speakers.

Wilson Forum to Look at Antarctic Conservation – The Wilson Center's Polar Institute holds a virtual discussion tomorrow at 9:00 a.m. on 40 years of Antarctic Marine Conservation policy, looking at approaches in the Antarctic Treaty System. The event features a discussion of the Commission for the Conservation of Antarctic Marine Living Resources' (CCAMLR) achievements and its path forward, ahead of October's annual Commission meeting.

Forum to Look at Critical Minerals – Tomorrow at 11:00 a.m., the Wilson Center and the U.S. Agency for International Development (USAID) hold an expert discussion on what better looks like when it comes to mining, processing, recycling and consuming critical minerals such as lithium, cobalt, niobium, and titanium. Ford’s Christopher Smith is among the speakers.

Forum Looks at Climate in Middle East – The Atlantic Council holds a virtual discussion tomorrow at 11:00 a.m. on the economic and social impact of climate change in the Middle East and North Africa region, and the linkages between climate action, economic growth, poverty, and inequality in the region.  This event will feature keynote speaker Columbia University Director of the Center for Sustainable Development Jeffrey Sachs alongside Arab Republic of Egypt Ministry of Environment Minister and COP27 Ministerial Coordinator and Envoy H.E. Yasmine Fouad, COP 28 UAE Organizing Team Executive Vice President Ambassador Majid Al-Suwaidi, United Nations Special Envoy on Financing the 2030 Agenda for Sustainable Development Mahmoud Mohieldin, UN Development Special Advisor to the Administrator Mourad Wahba and Rockefeller Foundation Deputy Chief of Staff and Vice President Eric Pelofsky.

AAAS Looks at PFAS – Tomorrow at 2:00 p.m., the American Association for the Advancement of Science holds a virtual discussion at 2:00 p.m. on advances in PFAS (Perfluoroalkyl and Polyfluoroalkyl Substances) destruction. A panel of experts will share emerging science around approaches to destruction

ASE Holds Gala – The Alliance to Save Energy hold its 30^th annual Evening With the Stars of Energy Efficiency Awards Gala tomorrow at 6:00 p.m.

National Energy Efficiency Day –Wednesday. See more here

Forum Looks at Climate Policies – The Peterson Institute for International Economics holds a virtual discussion on Wednesday at 9:00 a.m., on Wage dynamics and climate change policies in an inflationary world. The International Monetary Fund's (IMF) forthcoming October 2022 World Economic Outlook examines two economic forces that could impact inflation going forward. After briefly summarizing the chapters, the presenters will discuss their findings with PIIE senior fellows Olivier Blanchard and Pinelopi Koujianou Goldberg.

Rice Energy Forum Global Oil Supply, Demand – On Wednesday at 10:00 a.m., Rice University’s Baker Institute hosts a panel where industry experts will explain the current balance of global supply and demand, as well as the risks for natural gas, crude oil and refined products — like gasoline, diesel fuel and heating oil. Panelists will also examine the current status of Russian gas exports, the potential impact of proposed EU and U.S. sanctions (including an oil price cap) — and the prospect for Russian retaliation.

Forum Looks at Ukraine Issues – The Jamestown Foundation holds an event on Wednesday at 11:00 a.m. to provide an update and analysis on the recent Nord Stream attack and the wider implications for European energy security and the war in Ukraine.

Forum to Look at Equity Metrics – ICF International holds a forum Wednesday at Noon on utility equity metrics. The forum will feature DTE Energy experts that will share details on its pioneering efforts to address energy equity in communities with the greatest need: customers with the highest energy burden and low adoption of incentives.

Summit looks at Decarb Strategies – The 18^th European Carbon Dioxide Utilization Summit will be held on Wednesday at Noon. With ever increasing focus on sustainability and decarbonization, many industries are looking for ways to use CO2, to both remove harmful emissions, and find value from this perceived “waste” material. This event will focus on new CO2 utilization developments and technologies in the oil and gas, chemicals, energy, mineralization and E-Fuels industries, as well as other-end markets. The conference will also highlight international legislation; updates and requirements of the industry, as well as an overview of the market since the 2015 Paris agreement.

CSIS Looks at Army Climate Strategy – On Thursday at 9:00 a.m., CSIS and the CSIS Energy Security and Climate Change Program launch of the Implementation Plan for the Army Climate Strategy (ACS), the Army's guidance to achieve ACS targets. This conversation will feature Paul Farnan, Principal Deputy Assistant Secretary of the Army for Installations, Energy and Environment, and Sharon Burke, former Assistant Secretary of Defense for Operational Energy Plans and Programs for the Department of Defense (DOD).

Forum Looks at COP27 Goals, Just Outcomes – On Thursday, the Allied for Climate Transformation (ACT2025) consortium holds a high-level webinar where speakers from around the world will set clear expectations for a positive outcome at the UN climate summit in Egypt this November. During the event, ACT2025 partners will offer a united vision for success at COP27, including addressing loss and damage, scaling up support for adaptation action, strengthening climate targets and assuring climate finance promises will be met.

Forum Looks at Just Climate Policymaking – On Friday at 9:00 a.m., the Consortium for Science, Policy & Outcomes at Arizona State hosts Kaiping Chen (University of Wisconsin-Madison) for a New Tools in Science Policy seminar. Chen will share her research and practice in science communication to introduce how policymakers can harness online tools and strategies, and in-person community engagement for effective and inclusive public policymaking around issues like climate resilience. She will also showcase how to collect and analyze large-scale community data for evidence-driven policymaking in sustainability issues.

Forum Looks at WY Energy Resources – The Atlantic Council, the Wyoming Energy Authority, the Wyoming Business Council; and the University of Wyoming School of Energy Resources hold a Frontiers Project meeting on Friday at 9:00 a.m. to provide key input to strategic planning for the economic development of frontier regions. Sen. Cynthia Lummis, former Energy Secretary and current EFI head Ernest Moniz and Gov. Mark Gordon are among the speakers

Newsmakers to Look at Climate Comp w UN Youth Activist – The National Press Club Newsmaker Program holds a forum Friday at 10:00 a.m. on efforts to force companies to compensate for climate change. Climate activist and UN Goodwill Ambassador Vanessa Nakate will speak.

Hydrogen Day – Saturday, October 8^th. The date October 8 was aptly chosen for the atomic weight of hydrogen (1.008).

IN THE FUTURE

DOE Hydrogen Summit Set – The Sustainable Energy Council and the U.S. Department of Energy announce the 2nd Hydrogen Americas Summit taking place on October 10 – 11^th. The Summit convenes Government representatives, hydrogen and energy stakeholders, service providers and end-users to identify opportunities and get insights into the latest projects and policy developments that will be crucial to drive the Region’s industry forward. View the Program. Sect Granholm headlines a host of DOE and state speakers while Air Liquide CEO Adam Peters is among the industry speakers. See the list here.

Chamber Sustainability Summit Set – On Tuesday October 11^th, the U.S. Chamber of Commerce Foundation will host the 2022 Sustainability and Circular Economy Summit in Washington, D.C. This event will convene corporate responsibility professionals, government leaders, academics, and sustainability changemakers to learn and educate one another on replicable, successful sustainability and circular economy initiatives. This year's conference will feature top leaders to discuss how companies are navigating these uncertain times, cutting-edge strategies for achieving sustainability goals, and how to leverage collaboration and innovation to channel emerging trends into lasting systemic change. Duke Energy’s Katherine Neebe​ speaks.

Axios Hosts Newell, Chatterjee – On Tuesday October 11^th at 8:00 a.m., Axios in Washington, D.C. holds an event at Dock 5 offering a global look at energy security, reliability and independence amidst the shift to cleaner sources. Axios Climate & Energy Reporter Andrew Freedman and Energy Reporter Ben Geman will host one-on-one conversations with former EIA head and current RFF President Richard Newell and former FERC Chair Neil Chatterjee.

WRI Looks at Just Energy Transition for Workers – On Tuesday October 11^th at 11:00 a.m., World Resources Institute holds a forum on a just energy transition.  This issue should be a major point of discussion at the COP27 climate summit in November, but how countries implement and fund a just transition remains a key question. This webinar will share insights from just transition efforts in various stages of development worldwide, including specific examples in South Africa, India and the US.

Group to Discuss Grid Resilience – On Tuesday October 11^th at 1:00 p.m., the Center for Climate and Energy Solutions (C2ES) looks at grid modernization strategies and technologies. This webinar will explore the various technologies and strategies that can be used to modernize the grid and improve climate resilience, those technologies at scale, and policy mechanisms and steps that can accelerate their adoption.

Brouillette Headlines Gulf Energy Forum – The 4^th annual Gulf Coast Energy Forum will be held in New Orleans on Wednesday October 12^th to Friday October 14^th. Former Energy Secretary Dan Brouillette, now president of Sempra Infrastructure will Keynote on Thursday while CLNG’s Charlie Reidl and former EIA head Jay Hakes speak on Friday.

Heritage Tackles Climate Politics – On Wednesday October 12^th at 11:00 a.m., the Heritage Foundation holds a forum on the politics of climate change. 

RFF To Look at Urban Wildlife Interaction – Resources for the Future (RFF) on Wednesday, October 12^th for the second RFF Live event in the “Sparking Solutions” webinar series, where they will discuss the benefits and challenges of addressing the wildland-urban interface problem. The session will touch on the costs and effectiveness of alternative approaches, including land use policies, building codes, landscaping ordinances, homeowner education programs, and more; examples of community success stories; and other potential creative solutions. US Forest Service Rocky Mountain Research Station Patricia Champ is among the speakers.

Forum to Feature IPCC Panelists – The Environmental and Energy Study Institute (EESI) holds a briefing on Wednesday October 12^th at 1:00 p.m. looking at the implications of the Intergovernmental Panel on Climate Change’s (IPCC’s) most recent report—the Sixth Assessment Report—for the upcoming international climate negotiations in Egypt (COP27) and for work on Capitol Hill. The IPCC Assessment Reports are designed to pull together information from around the globe on climate change, including on the physical science; climate impacts and adaptation; and possible greenhouse gas emission trajectories and mitigation opportunities. Panelists, who participated in drafting sections of the report, will discuss key findings from the report and how the information can be used by decision-makers at the national and international levels.

Resource Code Will Help with Building Codes – On Wednesday October 12^th at 2:00 p.m., New Buildings Institute will hold a webinar to share a new resource, the recently released Existing Buildings Decarbonization Code, to help jurisdictions set clear and approachable pathways to cut carbon emissions through existing building codes.

BCSE 30^th Anniversary Celebration – Wednesday October 12^th 6:00 p.m. at Sonoma.

Forums Look at USAID Climate Strategy – As part of the release of USAID’s 2022-2030 Climate Strategy, Climatelinks is hosting two webinar series starting on Thursday October 13^th at 8:30 p.m. The USAID Climate Strategy Launch Webinar Series occurred in May 2022 and consisted of three webinars to introduce a broad audience to USAID’s 2022-2030 Climate Strategy. The USAID Climate Strategy Deep Dive Webinar Series began in June 2022. The first webinar in the Deep Dive series highlighted Climate Finance, the second offered insights into Climate-Smart Agriculture, and the third focused on Nature-based Solutions. The fourth and final Deep Dive webinar will highlight Climate Partnerships and USAID’s Climate Strategy.

Forum to Focus on Chemical Industry Decarb – On Thursday October 13^th at 12:00 noon, Information Technology & Innovation Foundation holds an online forum on decarbonizing the chemical industry.  The  event shares new work from ITIF, George Mason’s Center for Energy Science and Policy, and the Center for Houston’s Future that investigates these pathways and explores policy options to decarbonize chemical production.  Our friend Brett Perlman from CHF is among the speakers.

Forum Looks at Floating Offshore Wind – The Clean Energy States Alliance holds a forum on Thursday October 13^th at 1:00 p.m. on floating offshore wind technology. Adrienne Downey with offshore wind project developer Hexicon Group will present the current state of floating offshore wind technology around the world and will chat with California Energy Commissioner Kourtney Vaccaro about the potential of floating offshore wind in the US and the obstacles to its adoption.}

Forum to Look at Climate Security Risks – The Center for New American Security (CNAS) will host a virtual event on climate and national security on Thursday, October 13, at 2:00 p.m. to discuss the acute impact of climate security risks The event will be the first in a series, focusing on the geostrategic and operational impacts of climate change on U.S. national security interests.

CCS Report Launching – The Global CCS Institute is hosting the launch of the Global Status of CCS 2022 Report on Monday October 17^th at 10:00 a.m. The flagship Status Report provides a comprehensive overview of the progress of carbon capture and storage (CCS) technology over the last year, including newly released numbers of CCS facilities in operation and under development.

Offshore Wind Conference Set for Rhode Island – American Clean Power holds its annual Offshore WINDPOWER Conference and Exhibition at the Rhode Island Convention Center In Providence on October 18^th and 19^th.  The event starts on Monday with a tour of Vestas’ Ocean State Offshore wind site.

Hydro Conference Set for Sacramento – The National Hydropower Association’s Clean Currents national waterpower tradeshow and conference will be held on October 18-20^th in Sacramento, CA. Designed with industry participation, the event hosts professionals from conventional hydropower, pumped storage, small hydro, and marine energy together to advance our leading role in the renewable clean energy 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