Energy Update: Week of October 5

Friends,

Even though the political world has been upended by COVID again this week, I still am starting with the Preakness which was run on Saturday in Baltimore. Was that a fabulous run by filly Swiss Skydiver to hold off Derby Winner Authentic for the entire stretch racing side-by-side to win?  WOW!!!!  YOU GO GIRL…  More importantly, I did drop cash on her just as she went to 11-1.  Earlier in the day at 6-1, I was definitely not betting her after failing to hold on in the KY Oaks, but watching the money go away from her to get to 11-1, I just had to do it. So that and a Swiss-Authentic exacta made it a good pay day.  Other exotics were again foiled, this time by longshot Jesus’ Team who rambled late to take third, slipping past Art Collector (that for sure cost me more $$$ with a trifecta box I had).  Finally, kudos to the Tampa Bay Lightning for ousting our Bracewell Dallas office favorites – the Stars – to win the Stanley Cup. 

We are in your inbox early today because while Thursday is National Hydrogen Day, the Fuel Cell and Hydrogen Energy Assn holds a presser TODAY at Noon to release the US version of the McKinsey study “Road Map to a US Hydrogen Economy.” The findings of the Road Map will be detailed by UC-Irvine expert Jack Brouwer, who will also moderate a panel discussion with experts from SoCal Gas, Air Liquide, Shell, Toyota, Plug Power and Microsoft.  You can REGISTER HERE for the event, which starts in about 30 minutes. 

Two other major events this week.  The Baker Institute continues its energy seminar on Wednesday with an interview with James Baker and panel discussion on oil/gas with Bob McNally and other company execs. Then on Friday, they host the final day on energy transitions with Air Liquide CEO Mike Graff, CLC head Greg Bertlesen and Shell’s Steve Hill talking about net-zero issues and the role of technology.  Also on Wednesday, NASEO and EIA will host the 2020 - 2021 Winter Energy Outlook Webinar to look at global oil supply uncertainty, and the effects of projected winter weather on the demand for heating and key transportation fuels.

We finished last week by passing funding to keep government open until mid-December, which the President signed just in time (and just before getting COVID). The Senate is in this week, but the House is out until after the election (unless needed to return to vote on any COVID legislation). Not much on the hearing slate except a House Natural Resources subpanel tomorrow afternoon on Interior’s royalty issues and a Senate Commerce hearing on Wednesday the current/future of passenger and freight rail networks with head of Amtrak. 

VP Debate on Wednesday night in Utah – and speaking of the VP debate, I hope you saw SNL’s 46^th season opener on Saturday night with Jim Carney offering an excellent Joe Biden in additional Maya Rudolph’s Kamala Harris and Alex Baldwin’s Trump.  Really good!!! 30 days to go until the 2020 election.  Get your vote in.  Feel free to call with any questions, stay safe & healthy. 

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

 

FRANKLY SPOKEN

“I’m willing to spend the money to stay open.  It stabilizes the jobs within the restaurants.”

Jeremy Sasson, president of Michigan-based Heirloom Hospitality, which runs three restaurants in the Detroit area that employs between 200 and 250 people.  Sasson told Axios’ Amy Harder he has increased the numbers of heaters he uses from eight or 10 in previous years to 25 this year.  Harder’s column looks at Propane and COVID-19 and its potential business, costs, supply and environmental impacts.

ON THE PODCAST

Hydrogen Week Special Podcast: Everything About Hydrogen – Since it is Hydrogen Day on Thursday, here is the most recent podcast from Everything About Hydrogen, the show that converts the technical to the relatable and explores how hydrogen and its derivative technologies may change the energy world as we know it.  The team are joined by Dr. Jenifer Baxter of the Institution for Mechanical Engineers (IMECHE). Dr. Baxter is based in the UK and is the Chief Engineer at IMECHE. We often focus heavily on the business cases and development models at the heart of the hydrogen economy here at EAH. On this episode, we bring the technical discussion to the forefront and speak with Dr. Baxter about the technical advantages and the challenges that hydrogen presents as an essential part of the path to decarbonizing the future. The team's conversation is a can't miss exploration of a wide range of potential applications for hydrogen technologies that brings a new and essential perspective to the podcast.

FUN OPINIONS

Former Cal PUC Commissioner Blasts Electrification In SF Chron – In an opinion piece in the San Francisco Chronicle, former Cal PUC Commissioner Timothy Simon and current CA Black Chamber of Commerce Board member says Why would a state with the world’s fifth-largest economy need to implement rolling outages to prevent mass blackouts? The answer: California has doubled down on the policy of electrification. Energy diversity is key to minimizing risk, but also to providing reliable power while causing as little interruption as possible. California has an increasingly less diverse energy system that undoubtedly has played a role in rolling outages across the state. The shift away from natural gas is a large part of the problem.

FROG BLOG

NRDC Blog: Green Hydrogen Critical to Powering Carbon-Free Future – In an NRDC blog post, experts Rachel Fakhry and Robert Harding write in order to stave off the worst effects of the climate crisis, we must urgently transition from polluting fossil fuels to emissions-free energy. “Green” hydrogen is quickly emerging as a potential solution for the sectors most difficult to electrify from clean resources—such as aviation, marine shipping, and heavy industry—and could help us resolve some of the biggest challenges to a fully renewable electricity system.

IN THE NEWS

CA Passes Law to Turn Fire Threat Wood into RNG – Late last week, Gov. Gavin Newsom signed AB 3163 by Assemblyman Rudy Salas (D-Bakersfield) which will allow dead trees/wood waste that have been major wildfire concern to be harvested as biomethane and turned into renewable natural gas.  Here’s why that’s so important - according to data from CalFire, there are nearly 150 million dead trees in California’s forests.  These dead and decaying trees are not only a threat for wildfires, they also emit methane as they break down. So harvesting these dead trees and converting them to renewable natural gas not only removes deadly fuel for wildfires, but will also help reduce greenhouse gas emissions.  SoCalGas applauded the state lawmakers in a statement for pursuing policies like AB 3163 that deliver on the state’s environmental goals and “get us one step closer to achieving an integrated, 21^st Century energy system that is clean, reliable, resilient and affordable.” More than 30 groups including water and air districts, BizFed and clean energy companies all supported the measure.

The SCOTUS will take the Appeal of the Baltimore Climate case – Even without the a new Justice, the Supreme Court Friday agreed to review a Fourth Circuit ruling that Baltimore's climate-related lawsuit targeting oil companies belongs in state court.  My Colleague Scott Segal spoke to the subject here:

1. Law suits are precisely the wrong mechanisms to determine the appropriate way to address climate change.  It is impossible to determine what emissions source results in what harm, meaning that causation is impossible to determine.  That’s a bad sign for court action.

Climate change is one of the most complex public policy challenges we face.  It requires a careful balancing of societal interests- that’s the purpose legislatures serve.  And since a comprehensive climate change program is on the table in the upcoming election, the case for using the courts is even weaker.

2. To the extent courts do consider these issues, federal courts provide the better venue to state courts.  Given that a molecule of carbon once emitted is around the world in seven days, the issue is by its very nature interstate.  Further, GHGs are already subject to federal regulatory jurisdiction under the Clean Air Act. State courts lack the objectivity, core competence, and constitutional perspective to address the issue.  So yes, federal courts should be preferable to all concerned.
3. Given that climate change is an intensely political issue, these cases are inherently political.  It should surprise no one that overreach in legal theory, discovery and requested relief are inevitable.  That’s what the Exxon case reflects.

 

Enviro Groups Target Green Wave for 2020 – While I always argue it is never a primary issue, five major environmental groups are joining together to pour resources into more than 30 House races and four Senate races to elect “environmental champions” to Congress. This type of focus and investment can and will have an impact.  The Sierra Club, the League of Conservation Voters, EDF Action, NRDC Action Fund and NWF Action Fund are seeking to help Democrats, including many in competitive races, in what’s expected to be a multimillion-dollar effort. They also hope the bottom up effort will also boost the Biden campaign in key swing states through the project, called Green Wave 2020.

Offshore Drilling Questions on Seismic Permits – You may have seen news late last week that environmental groups claimed victory in their effort to stop exploration off the Atlantic Coast, saying that companies that have applied to conduct seismic testing have run out of time to start before permits expire.  While it is true that those permits will likely expire without action there are two other big factors that must be considered.

1) Probably the bigger driving factor for why oil/gas folks have waning interest is the current and expected market conditions driven by COVID. 

2) State/Federal political uncertainty regardless of who wins key races.

Finally, seismic testing is such an early stage process that it must be understood that will necessary, it is like checking the baseball/footballs for prior to a game. Even if conducted, there would still be a long road ahead before any oil would even be delivered. Happy to discuss on background further. 

Delek Refining Releases First Sustainability Report – Delek Refining is releasing its first-ever Sustainability Report.  While they have long recognized their responsibility to address environmental, social and governance (ESG) topics, this initial report includes disclosing year-end 2019 statistics, detailing actions the company took in 2020, and describing some of the steps they are planning to take in the future.

Some important points:

Delek’s first GHG disclosures go beyond what many of its peers publish, includes

• Refining business unit Scope 1 & 2 emissions for 2017, 2018 & 2019
• Refining business unit carbon intensity for 2018 & 2019
• Enterprise-wide Scope 1 & 2 emissions for 2019
• Brief discussion of climate-related opportunities and risks
• Pursuant to the Taskforce on Climate-Related Financial Disclosures (TCFD), Delek outlines its approach to governance, strategy and risk management with respect to climate-related opportunities and risks

Outstanding Safety Record

• Second overall among companies operating multiple refineries
• Retail business unit TRIR is ½ industry average
• Disclosure of whistle blower stats

Its first demographic disclosures

• Total employees by gender and ethnicity
• Manager and above by gender
• Manager and above by race
• A commitment on Board diversity
• 30% female and/or racially diverse by 2022

Additional links to a number of newly public policies on ESG-related topics

• Diversity, Equity & Inclusion (DE&I) Policy
• Implemented by a newly-created Senior Director for DE&I
• Human Rights Policy
• Conflict Minerals Policy
• Supplier Social Standards

ON THE SCHEDULE THIS WEEK

MOST EVENTS SCHEDULED ARE NOW ONLINE WEBINARS

Wall St Green Forum Set – The 19^th Annual Wall Street Green Summit is the longest running and most comprehensive sustainable finance event in the industry. It will be held today through Friday in New York. Launched in 2002 by Peter Fusaro, the Wall Street Green Summit covers cutting edge content, industry developments and features the leading practitioners in sustainability.

Hydrogen Week Events Set, Presser Set for Next Monday – Next week, Thursday is the 5^th annual National Hydrogen Day and there will be events all week sponsored by the Fuel Cell and Hydrogen Energy Assn.  Today at Noon, experts from Air Liquide, SoCal Gas and other will hold a press event to discuss hydrogen progress and a new report on the comprehensive Road Map details how the U.S. can expand its global energy leadership, by scaling up activity in the rapidly emerging and evolving hydrogen economy, as policy makers and industry work together and take the right steps. There will be additional events later in the week they will hold event with California and Federal stakeholders. 

Forum to Look at Middle East Oil Challenges – The Middle East Institute holds a virtual discussion today at 2:00 p.m. on oil, arms, drones and regional tensions.  The forum will look at the Second Berlin Conference on Libya and crafting an interim government. Former US Ambassador to Libya Deborah Jones I among the speakers.

Dems Resources Panel Looks at Arctic, Climate Impacts – The Democrats on the House Natural Resources Committee's Energy and Mineral Resources and Water, Oceans, and Wildlife subpanels hold another controversial virtual forum today on the Arctic and climate change impacts.  Republicans have complained the panels regularly are circumventing the Committee process. 

Japan CCUS Forum Set – The Global CCS Institute holds its Japan-Asia Forum 2020 on Tuesday morning Japan time (TONIGHT at 9:00 p.m. EST).  At this one day online forum, co-hosted by the Global CCS Institute Japan CCS Co., Ltd., the latest information on CCS/CCUS technology development in Japan will be presented through the results and learnings from Tomakomai CCS Demonstration Project. Discussions on the outlook for deployment of CCS/CCUS in Japan and Asia, well as capacity building in Asia will follow. International speakers from various fields will also contribute to the program to share their insights on CCS/CCUS with a view towards knowledge sharing and international cooperation. 

Latin Energy Conference Set – The Dialogue hosts the 4^th Annual Latin America Energy Conference tomorrow to convene energy company executives, US and Latin American government officials, and international and nongovernmental organizations to discuss the most pressing energy policy issues in the hemisphere.

Forum Set Fusion – The Department of Energy (DOE), the Nuclear Regulatory Commission (NRC), and the Fusion Industry Association (FIA) will host a Virtual Public Forum tomorrow on regulatory framework for Fusion. The event will be an open discussion about introducing different fusion energy systems to the U.S. and Canadian regulatory space.

Third Way Looking at Fastest Path to Net-Zero – Third Way concludes its Fastest Path to Net-Zero Seminar Series tomorrow at Noon with its final event looking at the 2020 campaign and the future of climate action. 

Forum Looks at Smart Tech, Emissions – The Center for Energy and Environmental Studies (C2ES) holds a webinar tomorrow at 1:15 p.m. on smart technologies and using them to cut emissions.  Despite the ubiquity of digital technologies, far too little attention has been paid to the ways they can accelerate decarbonization across our economy. Hear from industry leaders about the enormous potential of “digitalization,” how they’re already using these tools to reduce their emissions, and the policies needed to drive broader deployment.

House Resources Panel Looks at Interior Royalties – The House Natural Resources Committee’s Energy and Mineral Resources Subcommittee holds a hearing tomorrow at 2:00 p.m. on Interior's potential royalty cuts. 

Brookhaven Hosts Innovation Summit – The Energy Department's Brookhaven National Laboratory holds a virtual InnovationXLab Quantum Information Science and Technology Summit on Wednesday and Thursday.  Key speakers include Energyu Secretary Brouillette, DOE Science UnderSecretary Paul Dabbar and others.

Bloomberg Sustainable Business Briefing Looks at Accelerating Climate Action – On Wednesday at 10:00 a.m., Bloomberg’s Sustainable Business Group will hold a briefing to examine the role of business in accelerating climate action. Speakers will address what are top companies doing to transition to a green economy; how can business, finance, government and non-profits work together to create meaningful progress and an effective response to the threats of climate change; and what is needed to accelerate the transition to a more sustainable future.

NASEO Hosts EIA Winter Outlook – The National Assn of State Energy Officials, in partnership with the EIA, will host the 2020 - 2021 Winter Energy Outlook Webinar on Wednesday at 10:00 a.m. The webinar will address global oil supply uncertainty, and the effects of projected winter weather on the demand for heating and key transportation fuels. The webinar will include a presentation on EIA's Winter Fuels Outlook, as well as presentations from well-known industry representatives and energy experts who will provide their views on factors that will affect energy markets this winter in the United States and globally. 

Senate Commerce to Look at Railway Future – The Senate Commerce, Science and Transportation Committee holds a hearing Wednesday at 10:00 a.m. on the current and future situation with passenger and freight rail. The hearing will examine the current state of the passenger and freight rail network, including impacts of COVID-19 and legislative considerations for surface transportation reauthorization. Amtrak CEO Bill Flynn leads the witnesses.

Forum to Look at COVID, Energy Recovery – The Baker Institute is continues its seminar on Wednesday with LBJ Foundation President interviews James Baker and there is a panel discussion on oil/gas with Bob McNally, former BP official Mark Finley, Calpine CEO Thad Hill and P66 exec Zhanna Golodryga.  Then on Friday, Air Liquide CEO Mike Graff, CLC head Greg Bertlesen and Shell’s Steve Hill talk net-zero issues and the role of technology. After that panel, Spencer Dale presents BP’s Energy outlook.

Forum Looks at Smart Tech, Emissions – The Center for Energy and Environmental Studies (C2ES) holds its Climate Leadership Award insights webinar on Wednesday at 1:00 p.m.  This informational webinar will navigate which Climate Leadership Awards categories may be a good fit for your organization and how to apply. In addition to reviewing new award criteria for 2021, application submission and evaluation processes, we will be joined by special guest, Tyson Foods, 2020 Innovative Partnership winner who will share their award project and insight.

Forum Look at Venezuela, Energy – The Atlantic Council’s Adrienne Arsht Latin America Center, in partnership with its Scowcroft Middle East Security Initiative, holds a webinar Wednesday at 2:00 p.m. looking at Hezbollah, oil and Illicit networks propping the Maduro Regime in Venezuela. This public conversation – the second as part of the Center’s programming on the Maduro regime’s illicit activities – will launch an Adrienne Arsht Latin America Center report by Joseph Humire that provides a nuanced understanding of Hezbollah’s networks tied to the Maduro regime and specific actions for international actors to counter this threat to democratic stability in Venezuela. Florida Reps. Michael Waltz and Deborah Wasserman Schultz are among the speakers.

Vice Presidential Debate – Mike Pence and Kamala Harris face off at the University of Utah at 9:00 p.m. Wednesday.

Cybersecurity Event Looks at Supply Chain – The US Energy Assn holds the 11^th in the series of USAID webinars on Thursday looking at Digitalization and Cybersecurity in the Energy Sector hosted by E3.  Cybersecurity extends to all companies directly involved in the delivery of products, services, and solutions, and through all tiers of the global supply chain. Because of this, supply chains can be a considerable risk to power utilities. This webinar will address the supply chain procurement process, understanding the risks and the importance of asking questions.

Climate Forum to Look at Food Systems – The NYT’s Climate Hub hosts a forum on Thursday at 1:30 m. to Look at reimagining food systems to meet the climate challenge.

Forum To Look at Best Practices for Renewable – Greentech Media holds a webinar on Thursday at 2:00 p.m. on best practices for remote operations of renewables.  The webinar will address  how outcome-based programs helps energy producers reduce electricity costs and achieve their corporate sustainability goals and microgrids to optimize their operations in the face of uncertain economic conditions. Speakers include Honeywell’s Eren Ergin and Isaac Maze-Rothstein of Wood Mackenzie Power & Renewables.

WaPo Forum Looks at Manufacturing – The Washington Post Live host a webinar Friday at 11:00 a.m. on the road ahead for manufacturing. Manufacturing has been the vibrant engine of American capitalism for decades. But like every other sector in the U.S. economy, it has suffered a downturn due to COVID-19, and must find new ways to meet the demands of the consumer, while maintaining jobs and financial viability.  NAM’s Jay Timmons and Sen. Amy Klobuchar speak.

CCUS Workshops Roll On – On Friday at 1:00 p.m., the National Association of Regulatory Utility Commissioners and the Western Interstate Energy continues its Friday series of workshops focused on Carbon Capture, Utilization & Storage.  This week, the forum will look at policy issues surrounding CCS’s future with Jeff Erikson of the Global CCS Institute.  Next week, on Oct 16^th, they will feature WY PSC Chair Kara Fornstrom and Great Plains Institute’s Doug Scott.

Gore Project Sets Event – The Climate Reality Project and TED are partnering for two days of presentations and discussions exploring the future we want and how we get there starting at 11:00 a.m. on Saturday with  TED’s Countdown, a five-hour program of livestreamed TED talks and discussions with world-changing innovators and thought leaders confronting the climate crisis head-on and showing the way to a just, zero-carbon future. Then at 4:00 p.m., 24 Hours of Reality: Countdown to the Future continues the conversation with 24 full hours of digital presentations and discussions of how the climate crisis, COVID-19, and racial injustice shape our planet and this incredible moment. All events are led by former Vice President Al Gore and Climate Reality Leaders across the world.

IN THE FUTURE

Energy Forum Set – The Energy Intelligence Digital Forum will take place October 13-15^th as an online event. The Energy Intelligence Forum provides a platform for decision-makers, thought-leaders and innovators from the worlds of energy, finance, politics and business to debate, discuss and develop sustainable solutions to the energy challenges of the 21^st century. In 2020, the event takes place online, due to the ongoing disruption of the coronavirus. The Digital Forum will examine the unprecedented impact of the global pandemic on the energy industry and the continued search for new energy solutions, as part of its theme, The Big Energy Reset: Covid, Climate, Consequences. OPEC Secretary General Mohammad Sanusi Barkindo and Saudi Aramco CEO Amin Nasser are among the speakers.

Urban Land Institute Holds Fall Event – The Urban Lands Institute holds it fall meeting on October 13^th to 15^th 

Forum to Look at Future of Gas – The Columbia University Center on Global Energy Policy and the Aspen Institute host a forum and presentation of IEA’s Global Gas Security Review report on Tuesday October 13^th at 1:00 p.m. The report’s key findings will be presented by Keisuke Sadamori, Director, Energy Markets and Security, IEA. Following his presentation, he will be joined by Lisa Alexander, Senior Vice President of Corporate Affairs, Sempra Energy; Poppy Kalesi, Director of Global Energy, Environmental Defense Fund; and Jérôme Schmitt, Chairman of the Oil and Gas Climate Initiative Executive Committee, for a discussion moderated by Erin Blanton, CGEP Senior Research Scholar.

Bloomberg Event to Discuss Oil/Gas, Other Key Issues – The Bloomberg Intelligence will be hosting election webinars and on Tuesday October 13^th at 2:00 p.m., our friend James Blatchford and his colleagues  Fernando Valle and Andrew Silverman are hosting a webinar exploring the implications of the upcoming elections on the energy industry. They will discuss oil and gas producers, refiners and retailers, tax, and more. You can register via web here or via the terminal here. We hope you can join us.

IEA Oil Market Report to Be Released – The IEA's monthly Oil Market Report (OMR) will be released on October 14^th.  It is the exclusive source for official government statistics from all OECD countries, as well as selected non-OECD countries, together with both historical datasets and supply-and-demand forecasts for the year ahead. Featuring tables, graphs and statistics, the OMR provides all the data necessary to perform ad-hoc analysis and track oil market developments and to identify trends in production, consumption, refining, inventories in OECD countries and prices for both crude and products.

LNG For Set for Houston – The 3^rd Houston Gas & LNG Forum 2020 will be held in IN-PERSON on October 14^th and 15^th at the Petroleum Club of Houston The Forum is organized by U.S. Energy Stream and will focus on the role American/Texan gas and LNG in fueling economic growth in the post COVID-19 era. The Forum will address the critical questions facing the gas and LNG industry in the COVID-19 Pandemic. Speakers include Reps. Bill Johnson, Randy Weber, Michael Cloud and DOE’s Shawn Bennett.

Geothermal Event Set – The Geothermal Resources Council 2020 Annual Meeting & Expo will be held October 18^th to 23^rd virtually. 

RFF to Discuss Carbon Pricing – On Tuesday, October 20, Resources For the Future (RFF) hold a virtual RFF Live event that will reunite the speakers from last year’s Future of Carbon Pricing event to talk about the forecast for carbon pricing in 2020 and beyond. The commenters will reflect on what has changed in the past year, and how various election outcomes could influence the path forward.  Speakers include EDF’s Susanne Brooks, Niskanen’s Joseph Majkut and Adele Morris of the Brookings Institution.

MIT Climate Forum Continues – MIT continues its Climate Action Symposia Series on Tuesday October 20^th at 2:30 p.m.  The Climate Action Symposia series aims to advance our community’s understanding and expand our capacity to generate solutions for the urgent global challenge of climate change. The fifth of MIT’s six Climate Action Symposia, The Role of Research Universities and MIT’s Climate Initiatives, will look at how research universities can help the world deal with the climate crisis as well as initiatives being developed by MIT to reduce carbon emissions.

Forum to Look at Nuclear – The Cleantech Group is hosting a webinar at 11:00 a.m. on October 28^th on nuclear innovation and deep decarbonization transform the global energy system.

ELECTION DAY – November 3^rd

Hydrogen Event Set – The Green Hydrogen Coalition, in collaboration with the National Association of State Energy Officials (NASEO) and the Western Interstate Energy Board (WIEB), is hosting its 2^nd annual Green Hydrogen Visions Conference on November 17-18^th.  The event brings together policymakers, industry leaders, utilities, and non-governmental organizations to accelerate progress for green hydrogen market and infrastructure development in the Western United States and beyond. Join from 8:30 AM-12:30 PM PT.

Infocast Hosts Mid-Atlantic Renewables Forum – The Mid-Atlantic Renewable Energy Virtual Conference will be held on December 8^th to 10^th by Infocast and will feature current insights from top regulatory officials, utility and public power leaders, and developers in the region.