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ONE REASON FOR AN ENERGY DISPUTE WITH MEXICO NOW: Election timing could factor into the Biden administration’s move to escalate a dispute with Mexico under the USMCA over its treatment of American energy companies.
“The advantage of starting the case now is that none of this will play out before the election,” said William Reinsch, a CSIS scholar who served in the Clinton Commerce Department. “You can address the industry by saying, ‘we filed the complaint – we’re working on it,’ while knowing full well that it won’t play out until after everybody has voted.”
The process is risky for President Joe Biden. It could lead to retaliatory action by Mexico, and could also incur anger from environmentalists. But the timing is helpful.
“These things take a long time, and the system is designed to encourage the countries to come to an agreement,” Reinsch, who was also president of the National Foreign Trade Council for 15 years, told Breanne.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment Writers Breanne Deppisch (@breanne_dep) and Nancy Vu (@NancyVu99). 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.
REAX TO BIDEN REVOKING OIL AND GAS LEASES: Here’s who is unhappy with the Biden administration’s move yesterday to prohibit oil and gas drilling on millions of acres in Alaska’s North Slope and revoke seven Trump-era oil and gas leases…
Senate Energy and Natural Resources Committee Chairman Joe Manchin said it “makes no sense and is frankly embarrassing.”
“I can’t explain to the American people why we would willingly become more dependent on foreign oil imports, eliminate good paying American jobs and drive up the cost of our electric bills and gas prices across the country,” Manchin said yesterday. “This is yet another example of this administration caving to the radical left with no regard for clear direction from Congress or American energy security.”
Leaders of the House Energy Action Team said the moves were “disastrous” to U.S. energy production and energy security: “The same President who begged Saudi Arabia for more oil and berated American oil & gas producers for not ‘increasing production’ just banned American energy producers from utilizing nearly 40% of the Arctic National Wildlife Refuge,” Reps. August Pfluger of Texas and Kevin Hern of Oklahoma said in a joint statement.
A joint statement from local groups Iñupiat Community of the Arctic Slope, North Slope Borough, and Alaska business group Arctic Slope Regional Corporation asserted that the move would harm the economic security of the state’s tribal communities, and undermine their “right to self-determination.”
“Despite our attempts at open lines of communication with the administration, local leaders learned of this decision through press reports,” the groups wrote. “To date, the Bureau of Land Management failed to consult with North Slope communities or the respective local cooperating agencies on these decisions – ignoring and silencing Indigenous voices.”
On the flip side: The announcements were met with praise from environmental groups who had pushed for more conservation in the area. Abigail Dillen, president of environmental group Earthjustice, commended Interior Secretary Deb Haaland for canceling the “unlawfully issued leases.”
As Breanne reports, the Department of the Interior said in a press release that the actions will permanently ban oil and gas drilling on more than 10.6 million acres in Alaska’s National Petroleum Reserve, ensuring “maximum protection” for more than 40% of the reserve, which is located in Alaska’s North Slope and is the largest undisturbed public land in the U.S.
Separately, the Interior Department announced Wednesday that it will cancel seven oil and gas leases in the Arctic National Wildlife Refuge the Trump administration had leased for exploration to Alaska’s state-owned oil development agency, citing results from a new environmental review that determined the original analysis was “seriously flawed” and not legally adequate. More on that here.
MANCHIN BACKS NOMINEE TO GIVE DEMOCRATS FERC MAJORITY: Manchin is throwing his weight behind Federal Energy Regulatory Commission staffer David Rosner to fill a vacant seat on the panel—an appointment that would give Democrats a 3-2 majority on the powerful committee for the first time since January.
Rosner has served as an energy analyst at FERC since 2017, but was assigned in 2022 to Manchin’s Energy and Natural Resources Committee, according to E&E News.
“He’s a FERC staffer who’s detailed over to work for Manchin, which is a little unusual, but he’s very knowledgeable,” one of the FERC observers told the outlet. “It wouldn’t surprise me if there’s some level of comfort with him based on his working [on the Hill].”
Neither Manchin or his staffers responded to requests for comment from the Washington Examiner.
FERC is the federal body tasked with overseeing most of the U.S. power grid and regulating the nation’s natural gas, electric, oil, and hydropower industries. It also issues permits to interstate energy projects, including natural gas pipelines and other infrastructure.
Rosner’s nomination would come at a critical time for the agency, as U.S. power grids have scrambled to add new capacity amid a blistering-hot summer and soaring electricity demand. His committee nomination would be subject to Senate confirmation. Read more from E&E News here.
TEXAS DODGED BLACKOUTS LAST NIGHT: The Electric Reliability Council of Texas declared an energy emergency Wednesday evening – the closest it’s been to a worst-case scenario of implementing rotating power outages.
At around 7:25 p.m. local time, the energy grid operator declared it would be going into its second level of energy emergency operations. This is when operating reserves drop below 1,750 megawatts, and ERCOT calls on power from large industrial customers (who are contractually obligated to have their electricity turned off during an emergency), along with tapping into other resources. The grid operator warned consumers that “controlled outages may be needed to protect the electric system” and asked them to reduce their electricity use. Seventy-six minutes later, ERCOT moved from its emergency level 2 operations to level 1.
Earlier in the day, ERCOT issued a conservation appeal from 6 to 9 p.m.
The grid operator was able to navigate this tight stretch without calling for power cuts to customers – but this latest stint has been the worst incident for Texans all summer. Severe temperatures certainly contributed to the tightening of the grid, with ERCOT issuing at least 10 conservation notices to customers between June and September. On Thursday, ERCOT issued another conservation appeal between 5-9 p.m. local time.
On a related note – Bitcoin miner makes $31.7 million in August: Bitcoin Miner Riot Platforms said yesterday that it earned $31.7 million in energy credits from ERCOT in August alone by voluntarily cutting back on energy consumption during a record-breaking heatwave, CNBC reports
The value of the credits overshadowed the 333 bitcoin the company mined in August, which equated to roughly $8.9 million. Bitcoin miners broadly have been struggling amid low trading volume – and increasing energy prices have caused profits to dwindle within the sector. Texas has made itself an ally to the bitcoin mining industry through credits, teaming up with miners by paying them to reduce their power so as to not overstress the grid when demand increases during the summer months.
MODI’S REQUEST: India Prime Minister Narendra Modi wants rich nations to take a more constructive approach in helping developing nations fight climate change, advocating for more financial support and access to technology, Bloomberg reports.
“We believe there is a need to move away from a purely restrictive attitude of what should not be done to a more constructive attitude focusing on what can be done to fight climate change,” Modi wrote on his website ahead of the G20 Summit.
Modi stated that many countries in the Global South are at varying stages when addressing climate change – and that ambition needs to be met with action.
This latest post is a showing from India on where it stands on climate change on the global stage – and how it has become a counterweight to China’s more fossil-fuel focused approach. In another interview, Modi said India will launch a biofuel alliance to help countries meet their energy needs while also “empowering a planet-friendly circular economy.”
RYANAIR CEO GETS PIE’D BY ENVIRONMENTAL ACTIVISTS: Environmental activists threw cream pies at Ryanair Holdings CEO Michael O’Leary, protesting airplane pollution stemming from his airline – simultaneously while he was preparing for his airline’s own protest at the European Commission headquarters in Belgium, Bloomberg reports.
As he was sorting out boxes alongside a cardboard cutout of EC President Ursula von der Leyen, he was suddenly approached by an activist who smeared a cream pie across his face. The attack was followed by another – this time to the back of his head. O’Leary’s response: “Well done.” Then he removed his jacket and continued preparing for his event. Watch the video.
O’Leary was in Brussels to promote the airline’s petition in pressuring the EC to protect overflights across Europe when air traffic controllers go on strike. Ryanair was forced to cancel hundreds of flights this summer because of the strikes.
The Rundown
Bloomberg Renewable energy projects nearing end raise abandonment concerns
Energy News Network As Duke Energy rate hikes loom in N.C., deal could lessen blow for energy burdened
Politico EU Germany’s gambit to tout e-fuels falls flat
