|
Be more of an insider. Get the Washington Examiner Magazine, Digital Edition now. |
|
SIGN UP! If you’d like to continue receiving Washington Examiner’s Daily on Energy newsletter, SUBSCRIBE HERE: http://newsletters.washingtonexaminer.com/newsletter/daily-on-energy/ API’s GERARD LISTENING FOR WHAT RIVALS HAVE TO SAY ABOUT U.S. ENERGY: The head of the largest oil industry lobbying group is in Houston at a major industry conference this week to hear from both proponents and rivals of the U.S. oil and natural gas boom, while remaining hopeful the industry can work through the “inconsistencies” of President Trump’s steel tariff proposal. John caught up with American Petroleum Institute President and CEO Jack Gerard in Houston Monday night to hear what his focus will be at CERAWeek. “I am always interested in hearing the global perspective of how we’re perceived around the world,” Gerard said. “In different parts of the world, and how our energy equation is playing out as a result of the American energy renaissance.” The U.S. is now a net exporter of natural gas and one of the largest crude oil producers in the world. That has had a major effect in lowering the price of oil, which many OPEC countries rely on to support their budgets. Gerard said he will paying “especially” close attention to “those who might be eventual importers of our product and those that may be competitors to hear how they view the world and what that means for us and the development of sound U.S. public policy.” An array of nations and companies are assembled in Houston this week to discuss energy policy and the oil and natural gas markets, including a number of OPEC members and major new customers of U.S. energy from India and Japan. Welcome to Daily on Energy, compiled by Washington Examiner Energy and Environment Writers John Siciliano (@JohnDSiciliano) and Josh Siegel (@SiegelScribe). Email [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. TRUMP’S TARIFFS DON’T CONSIDER IMPACT ON U.S. ENERGY: Gerard also said he will be listening for perspectives from the likes of Canada on Trump’s proposal to impose global steel and aluminum tariffs. On Wednesday, Energy Secretary Rick Perry and the energy ministers of Canada and Mexico will sit down for a special panel at CERA Week.
Inconsistent policy: “We see the president’s announcement on the steel and aluminum tariffs as inconsistent with his broader energy vision,” Gerard said.
He pointed out that many of the materials for oil and natural gas pipelines are imported. Tariffs ‘disrupt:’ “And if you put limitations on that, it potentially disrupts what we’re doing in creating infrastructure in this country,” he said. “So, we are very concerned about the direction the president is going on the trade question.” Gerard said the tariff proposal raises some “inconsistencies” that need to be “sorted out and resolved” between the president’s desire to create more jobs and the impact the tariffs will have across industries. “We support all the efforts to have a robust, domestic economy,” Gerard said. “But we also have to take into consideration what does that mean for some of our sectors that rely on imported steel to develop and pursue our activities, such as building pipelines.” Industry will seek to ‘harmonize’ Trump policy: Gerard said he is optimistic that the industry can find a way to “harmonize” the president’s goals by making sure both sides of the conversation are heard “and make sure we come down somewhere in the middle.” Long-term vision: Gerard also will be listening to member companies as part of the process of building consensus on emerging issues in the industry. “In the trade association world that is part of your responsibility … to build consensus from all those perspectives,” he said. “CERAWeek allows us the chance, in the course of one week, to literally hear from everyone on various views on various issues,” Gerad added. “And we put that back in our process and try to come out of that with consensus positions on the broader industry … to develop policy that supports those broad long-term visions.” TRUMP WARNED THAT TARIFFS COULD HARM ENERGY AGENDA: A Republican senator and a CEO of a pipeline company both warned Monday that the steel and aluminum tariffs could disrupt the Trump administration’s “energy dominance” agenda and harm relations with crucial allies. “Right now the approach seems to be splitting our allies apart,” said Sen. Dan Sullivan, R-Alaska, during a panel discussion at CERAWeek.
No U.S. market: Echoing Gerard, Plains All American Pipeline CEO Greg Armstrong warned that the tariffs could hurt pipeline construction, stalling the ability to transport natural gas domestically and overseas.
The type of steel used in pipelines is a niche market, Armstrong said on the panel with Sullivan, so most domestic steel producers have left the pipeline market because of its high cost. He said Trump’s plan to slap a 25 percent tariff on steel imports could drive up the cost for oil and natural pipelines. “We don’t think it would be appropriate to put a tariff on something you can’t buy here in the United States,” Armstrong said. “We’ll survive no matter what. It’s a thornier issue than printed in the headlines.” Armstrong said his company has about $1.5 billion worth of “projects underway that use quite a bit of steel.” Focus on China: The comments opposing tariffs come as House Speaker Paul Ryan, R-Wis., and other Republican leaders are threatening legislative action to fight back. Sullivan said the tariffs should focus specifically on China, rather than affecting every country. Trump administration officials reiterated over the weekend they did not expect the president to provide exceptions from the tariffs for allied countries such as Canada and Mexico. SAUDIS NOT ‘LOSING ANY SLEEP’ OVER ELECTRIC VEHICLES: The head of Saudi Aramco, the largest national oil company in the world, said he isn’t worried about the emergence of electric vehicles and their impact on future demand for crude oil. “I am not losing any sleep over lost oil demand,” Amin Nasser said in a keynote address at CERAWeek Tuesday morning. It’s “not an either-or” question between oil and electric vehicles, he said. Advanced gasoline and diesel combustion engines will be used though the next century, with hydrogen cars, hybrids, and pure electric cars. He also pushed the idea that gasoline vehicles are cleaner than electric cars, because “coal will still represent 50 percent of the energy mix” well into the future, especially in China and India. So electric vehicles won’t be truly clean until the transition in electricity to lower-carbon resources such as natural gas happens. “Electric vehicles will not reduce greenhouse gas emissions” until that transition occurs, Nasser said. “We need to make competing case of oil’s true role in the energy transition,” he added, laying out four principles the oil industry must follow.
The four principles: One of those principles is opposing ideas that promote 100 percent renewables with no regard for fossil fuel use. Nasser said the industry must “push back” against those arguments as a threat to energy security.
In addition, the industry must expand exploration, while offsetting the decline in developed oil fields. The industry needs more than $20 trillion in investments to meet future demand for fossil fuels. And the industry must intensify their efforts on creating “game changing” technologies, including “low or no-carbon products,” he said. SHUSTER ENCOURAGES GAS TAX INCREASE: Rep. Bill Shuster, R-Pa., chairman of the House Infrastructure Committee, suggested Tuesday morning the Trump administration should consider raising the federal gasoline tax to pay for its infrastructure plan. Shuster’s committee hosted a hearing with Transportation Secretary Elaine Chao testifying about the plan. He expressed worry about the depleted Highway Trust Fund.
The problem: The combination of a gas tax that hasn’t changed in 25 years and the greater fuel efficiency of cars has led to chronic shortfalls of more than $70 billion since 2008 in funding for the Highway Trust Fund, the main vehicle to spread money to states to help pay for transportation projects.
The solution: “Fixing the Highway Trust Fund for the future and modernizing how we fund infrastructure in this country must be part of our solution,” Shuster said. “Thirty-one states have dealt with shortfalls in revenue and there has been no political price for fixing their revenue,” Shuster said of states that have increased their gas tax. “My own state, with a Republican House and Senate and Republican governor, fixed their revenue shortfall. The American people understand the need we have to invest in our infrastructure.” FORGOTTEN HYDROPOWER PLOTS COMEBACK IN TRUMP ERA: Advocates of hydropower, America’s largest and oldest, but often forgotten, renewable energy source, are carving a major place for themselves in the Trump administration, eyeing the upcoming debate over infrastructure as a way to push for changes that would speed the approvals of water-powered projects.
Can’t-miss opportunity: “Any plan that doesn’t address modernizing the licensing process for hydropower development misses an opportunity to create clean energy jobs and transform our nation’s energy infrastructure,” Jeff Leahey, deputy executive director of the National Hydropower Association, told Josh.
Left behind: As concerns over climate change and falling costs have advanced the cause of solar and wind energy, development of hydropower, which also contributes zero carbon emissions, had stalled until recently. Permitting problems: With little interest in building big new dams, hydro supporters have prioritized existing plants owned by the federal government. Advocates say a lengthy permitting process has crippled progress. Only 3 percent — about 2,200 — of the nation’s 80,000 dams are equipped to produce electricity, an expensive endeavor involving installing turbines and other equipment More than 400 nonfederal projects, meanwhile, are due for relicensing by 2030. Losing pace: Yet, the National Hydropower Association says industry members are closing facilities rather than spending time and money renewing their permits, particularly small hydropower projects. The group says it takes about 10 years to license a hydropower project, a process involving numerous participants, including the Federal Energy Regulatory Commission, federal and state agencies, nongovernmental organizations, and tribal entities. Solar and wind projects can be permitted in half that time. CANTWELL PRESSES ZINKE FOR EXTENSION OF OFFSHORE LEASING COMMENT PERIOD: Sen. Maria Cantwell of Washington, the top Democrat on the Senate Energy and Natural Resources Committee, urged Interior Secretary Ryan Zinke on Monday to extend the deadline for public comment on the Trump administration’s massive offshore oil and gas drilling plan. The public has until Friday to comment on Zinke’s proposal to expand drilling coast to coast in federal waters.
Time crunch: “We believe a 60-day extension of the deadline for comments is necessary to allow for more public hearings in coastal areas and to give the public sufficient time to submit comments on offshore drilling proposed for nearly the entire U.S. Outer Continental Shelf,” Cantwell said in a letter to Zinke with 21 other senators, all Democrats.
INTERIOR PUSHES PLAN TO REPAIR NATIONAL PARKS USING ENERGY REVENUE: Interior Department officials on Tuesday morning pushed Congress to support a plan to create a fund of up to $18 billion that would pay for repairs and maintenance to national parks and wildlife refuges. The fund, pitched as part of Trump’s fiscal 2019 budget proposal, would be paid for by new leases for energy development on onshore and offshore federal lands. It also would finance schools under the Bureau of Indian Education.
‘Bold investment’: “This bold investment would significantly improve the nation’s most visible and visited public facilities that support a multibillion-dollar outdoor recreation economy,” said P. Daniel Smith, deputy director of the National Park Service, and Steve Guertin, deputy director of the Fish and Wildlife Service, in joint testimony before the House Natural Resources Committee.
Maintenance backlog: The officials said Interior has a $16 billion maintenance backlog. Of that amount, the National Park Service has the largest share, $11.6 billion in 2017. The department’s proposed fund could be paid for with federal energy revenue, including oil, gas and coal leasing, as well as solar, wind, and geothermal development. ELEPHANT TROPHY IMPORTS TO BE CONSIDERED ON CASE-BY-CASE BASIS: The Fish and Wildlife Service recently announced it will consider imports of elephant trophies from African countries on a case-by-case basis. In a memo issued Thursday, Fish and Wildlife said it will withdraw its 2017 Endangered Species Act findings for trophies of hunted African elephants from Zimbabwe and Zambia, “effective immediately.” The agency will instead “grant or deny permits to import a sport-hunted trophy on a case-by-case basis.”
Trump’s intervention: The Fish and Wildlife Service in November moved to overturn an Obama-era ban on elephant trophy imports from Zimbabwe, before Trump intervened.
After a public outcry, Trump said he had put the policy on hold pending further study. OPENING OF ARCTIC REFUGE COULD BEGIN NEXT YEAR: Sullivan also made news for another reason on Monday, saying he hopes the Interior Department could begin opening the Arctic National Wildlife Refuge in 2019, ahead of the timeline expected by Congress.
‘Aggressive timeline’: “It is my hope, and this is a very aggressive timeline, that we would have the first [oil and natural gas] lease sale to be sometime in 2019,” the Republican lawmaker said during his panel discussion.
Under a law passed by Congress, the Interior Department must hold the first lease sale by 2021 and another by 2024, with at least 400,000 acres available each time. Sullivan said Interior Department officials are visiting the refuge, known as ANWR, in Alaska this week to scope opportunities for energy exploration. Hold up: But sales don’t necessarily translate to quick energy development. Sen. Lisa Murkowski, R-Alaska, the chairwoman of the Senate Energy and Natural Resources Committee, said this week that drilling in ANWR is at least a decade away. ZINKE POSTPONES OIL AND GAS LEASE SALE NEAR YELLOWSTONE: Zinke announced Monday he will delay an oil and gas lease sale planned this month in Montana near Yellowstone National Park, after local residents protested the sale. “After talking with residents and local, state and federal officials, we have decided to defer the oil and gas sale around Livingston #Montana,” Zinke said in a Twitter post.
Pulling back: The move is the second time Zinke in recent days has postponed an oil and gas lease sale after locals expressed opposition to the plans.
On Friday, Zinke postponed an oil and gas lease sale of about 25 parcels on 4,434 acres near Chaco Canyon in northern New Mexico until the agency can review the impact on cultural artifacts in the area. River risk: Among the parcels proposed for energy development by Bureau of Land Management in the Montana sale are two just east of Livingston, close to the Yellowstone River. The proposed March 13 sale includes land in southeastern and north central Montana as well, totaling more than 60,000 acres. Of that total, the Bureau of Land Management removed about 17,300 acres from the oil and gas auction, withdrawing 26 parcels from consideration, along with portions of two others. RUNDOWN Houston Chronicle Rick Perry seeks new path to save coal Reuters Diesel collapse gives automakers carbon headache Washington Post The Chesapeake’s ‘secret garden’ is thriving again, but Trump could end that New York Times UN chief picks a very rich New Yorker (not named Trump) for climate job Post & Courier S.C. utilities knew of big problems 6 months into nuclear project but didn’t tell customers Washington Post Man hired to sweep Scott Pruitt’s office for bugs is in business with a top EPA security official Miami Herald America’s flood insurance chief has a message for all Floridians: You’re at risk Bloomberg OPEC beware: Asia seen favoring U.S. shale oil as volumes soar |
CalendarTUESDAY, MARCH 6 9 a.m., 500 Fifth St. NW. The National Academy of Sciences holds a meeting of the Climate Communications Initiative Advisory Committee. eventbrite.com/e/climate-communications-initiative-open-session-tickets-42799003973 9:15 a.m., Houston. Interior Secretary Ryan Zinke addresses the CERAWeek energy conference. 10 a.m., 366 Dirksen. The Energy and Natural Resources Committee holds a hearing to consider the nomination of James Reilly to be director of the U.S. Geological Survey. 3:30 p.m., U.S. Capitol. The Environmental and Energy Study Institute and the Citizens Climate Lobby hold a briefing on “Building Climate Resilience in the Real Estate Sector.” eesi.org/briefings/view/030618realestate#rsvp WEDNESDAY, MARCH 7 8:50 a.m., Houston. Energy Secretary Rick Perry delivers Wednesday’s opening address at CERAWeek. 9 a.m., 1919 Connecticut Ave. NW. Nmble Inc. holds its 2018 Nuclear Power Full Life-Cycle Global Summit, March 7-8. 9:30 a.m., 1300 Pennsylvania Ave. NW. The Woodrow Wilson Center’s Environmental Change and Security Program holds a discussion on “Climate Change and Conflict: New Research for Defense, Diplomacy, and Development.” 1:30 p.m., 555 Pennsylvania Ave. NW. The Institute for Electric Innovation holds the spring 2018 “Powering the People” event, focusing on “Energy Solutions for All Customers.” edisonfoundation.net/iei/Events/Pages/event.aspx?eid=122 2 p.m., 430 First St. SE. The Alliance to Save Energy holds a “Great Energy Efficiency Day” discussion on “Driving Disruption for Economic, Social and Environmental Gains: What’s the Role for Energy Efficiency?” 2:15 p.m., Houston. Energy Secretary Rick Perry has a CERAWeek dialogue with energy ministers of Canada and Mexico. 5:20 p.m., Houston. Federal Energy Regulatory Commission Chairman Kevin McIntyre addresses CERAWeek. THURSDAY, MARCH 8 10:35 a.m., Houston. Federal Energy Regulatory Commissioner Robert Powelson addresses CERAWeek. FRIDAY, MARCH 9 9 a.m., 3401 Massachusetts Ave. NW. The Atlantic Council holds a discussion on “Trends in the Norwegian Oil and Gas Sector.” 9:35 a.m., Houston. Senate Majority Whip John Cornyn, R-Texas, and Sen. Lisa Murkowski, R-Alaska, chairwoman of the Energy and Natural Resources Committee, discuss the road ahead in Washington at CERAWeek. 10 a.m., 1616 Rhode Island Ave. NW. The Center for Strategic and International Studies holds a book discussion on “The Logic of American Nuclear Strategy.” Noon, 14th and F streets NW. The CO2 Coalition holds a news conference on “Does the World Need Climate Insurance?” Noon, 2168 Rayburn House Office Building. The Environmental and Energy Study Institute holds a briefing on the “2018 Sustainable Energy in America Factbook.” eesi.org/briefings/view/030918bcse WEDNESDAY, MARCH 14 All day, Washington Marriott at Metro Center. American Council on Renewable Energy holds its annual Renewable Energy Policy Forum. |
