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A BIG WEEK: Western leaders took historic steps this week to reduce dependence on Russian energy supplies —even as Ukrainian President Volodymyr Zelensky accused them of not acting quickly enough.
“By buying Russian oil and gas, you are financing the killings of Ukrainians,” Zelensky said in a tweet this morning that came with a video juxtaposing a woman filling up her gas tank with scenes of death and devastation from the war.
His scathing message comes less than 24 hours after EU member countries agreed to ban Russian coal imports in its new sanctions package — a historic push to decouple the EU from Russian energy supplies.
The coal ban is expected to cost Moscow an estimated $4.4 billion per year. News of the ban caused European coal futures to spike, jumping from roughly $255 per ton to $290 per ton after the coal embargo was announced.
The coal ban could also be just the first salvo from Europe: Some EU nations continue to push for a more sweeping ban on Russian energy supplies, and support is growing in some countries to implement a phased-out ban of Russian oil and gas, as well.
“I believe that measures on [Russian] oil and even on gas will also be needed sooner or later,” European Council President Charles Michel told reporters this week.
That statement was echoed by European Commission President Ursula von der Leyen, who told reporters late yesterday that, if the EU is unable to reach consensus on a plan to phase out Russian gas, then oil will be on the list soon. “The next step we are looking intensively at the moment [is] oil, so to prepare to be able to phase out oil,” she said.
Bigger picture: The evidence of atrocities committed by Russian troops in the Ukrainian city of Bucha and other suburbs has also marked a dark turning point in the war.
The U.S. and United Nations have taken punitive measures in the past 24 hours. The United Nations general assembly voted yesterday to suspend Russia from its Human Rights Council, citing reports of “gross and systematic violations and abuses of human rights” in Ukraine.
And U.S. lawmakers also voted in near-unanimous support of two bills aimed at punishing Russia, including one to strip Russia of its “most favored nation” trading status. Lawmakers also passed a ban on Russian oil, gas and coal imports, essentially codifying an executive order signed by President Joe Biden last month. (Though that legislation is nearly identical to Biden’s order and thus will not have an immediate short-term effect, passage of the law will make it much more difficult for a future president to overturn.)
Other efforts to ditch Russian energy: Finland and Estonia announced yesterday that they are planning to jointly rent a floating, transportable liquified natural gas terminal to help bolster their natural gas supply in the event of a supply disruption from Russia.
Finnish Minister of Economic Affairs Mika Lintila and Estonian Economic Affairs Minister Taavi Aas released a statement outlining the basics of their plan, which they said was an “efficient way to secure gas supply, including in industry.”
“Due to the war in Ukraine, we must prepare for possible interruptions of gas imports” from Russia, Lintila said, according to the AP.
The terminal could be located on either shore of the Gulf of Finland between the two countries, and would cost an estimated $11 million per year, Aas said.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment Writers Jeremy Beaman (@jeremywbeaman) and Breanne Deppisch (@breanne_dep). Email [email protected] or [email protected] for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
EU REPORT DETAILS 2021’S RECORD ENERGY PRICES: A new European Commission report puts a finer point on the hellish year EU nations had in 2021 as they weathered record energy prices, which, alongside the war, in Ukraine sets them up for an even tougher year ahead.
Both wholesale electricity and gas prices reached new peaks in the second half of the year. Dutch TTF gas reached 183 euro per megawatt hour for the first time ever.
There was a positive record reached – new renewable capacity: Bloc-wide electricity generation from renewables outperformed fossil fuels as a share of total generation, 38% to 35%.
But the current outlook isn’t looking any better: That 183 euro/MWH TTF price has already been surpassed. TTF closed at 217 euro/MWH on March 6, although prices are back down to less than half that as of this writing.
For household consumers in EU capital cities, retail electricity prices rose 30% in February year-over-year, according to the Commission.
The Commission and other European leaders are working away furiously to deflate these pressures on their economies, especially by seeking out new LNG contracts to help get their gas stores up for the winter.
European leaders met yesterday for the first time to begin work on its new joint gas purchasing strategy, announced and approved last month.
“The EU must use its collective political and market power on global gas markets,” said Energy Commissioner Kadri Simson.
BILLS, BILLS, BILLS: Members of the Senate Energy Committee had a busy week on the legislative front, putting forward several bills affecting renewable fuels and national nuclear policy.
Ranking Member John Barrasso and several Democratic and Republican colleagues introduced a proposal yesterday designed to enable production of more sustainable aviation fuel and renewable diesel by extending eligibility for Department of Energy loan guarantees to facilities that produce them.
It would also require the Energy Information Administration to follow and report information about domestic production and foreign imports of the fuels and exempt renewable diesel from certain labeling requirements which parties, including the state of California, have complained are too rigorous.
On the nuclear front: A separate Barrasso bill would direct the Energy Department to look ahead by establishing a program to secure more high-assay, low-enriched uranium for the advanced nuclear reactors under development.
The Energy Department’s webpage on high-assay, low-enriched uranium, or HALEU, says that most advanced reactor designs “will require a fuel that isn’t yet available at a commercial scale.”
“There’s a pressing need for HALEU now that could force some companies to reevaluate their plans if they can’t access this fuel,” DOE explains.
The Biden administration has deemed advanced nuclear a worthy pursuit for its carbon-free advantages, and Senate ENR leadership has devoted attention to existing and new nuclear over the last year in hearings and with new bills to encourage development.
Speaking of: Senate ENR Chairman Joe Manchin and fellow committee Republican Jim Risch introduced a proposal today to create an Executive Office for Nuclear Energy Policy “to promote engagement with ally and partner nations to develop a civil nuclear export strategy.”
The lawmakers said they seek to better compete with Russia and China for influence in the development of nuclear energy.
Also, mark your calendars? The Senate unanimously passed a resolution yesterday to designate April 16-24 as “National Park Week” in a bid to “boost awareness of the value and availability of recreational areas,” as Manchin’s office described it.
The bill, which was co-sponsored by Sens. Barrasso, Angus King and dozens of others, would make entrance into all national parks free next Saturday, April 16.
SHELL QUANTIFIES COST OF RUSSIA PULL OUT: The oil giant said in a first quarter update it expects the costs associated with its dialing back of Russia-related business to be between $4 and $5 billion.
Shell, along with fellow oil and gas majors ExxonMobil and BP, announced shortly after Russia moved into Ukraine their intentions to exit business ventures in and with Russia, with tens of billions of dollars worth of losses at stake.
CRUDE OIL DOWN: Oil prices are at some of their lowest levels in over a month. West Texas Intermediate opened around $97 per barrel today, while Brent opened above $101.
Market analysts with Energi Danmark pointed to China’s shutting in of millions of residents with COVID-19 lockdown measures, as well as decisions by the U.S. and IEA members to release a collective 240 million barrels in reserve oil to tame prices.
The Rundown
AP Meta: Russian invasion driving more disinformation online
Wall Street Journal Truckers get slammed by diesel freight train
Bloomberg The world’s electric vehicle fleet will soon surpass 20 million
Calendar
TUESDAY | APRIL 12
1:00 p.m. The R Street Institute will host a virtual event with former FERC commissioners Neil Chatterjee, Pat Wood, and Nora Brownell titled, “Competitive Electricity Policy: Past, Present and Future.”
