WHERE IS THE NATURAL GAS COMING FROM? The White House and European Commission announced plans last week to find 15 billion cubic meters of liquefied natural gas to help the EU replace Russian gas imports. But a senior administration official said the quiet part out loud shortly after, saying they "can't speak to exactly where the 15 [bcm] is coming from." Russia exported 155 bcm of natural gas to Europe in 2021, according to the International Energy Agency, accounting for 45 percent of its gas imports. Replacing that capacity isn't just a question of willpower. The U.S. is already operating at near max capacity in LNG production, and no new capacity is expected to come online for another two years. The White House said it was working with international partners to meet European demand and has been in discussions with Asian and Middle Eastern countries to redirect shipments. But the White House has been vague in how it would compel shipments to change course to Europe. A warmer than average winter in Asia freed up cargoes that could be redirected to Europe this year, but with the White House and the European Commission looking to ensure energy security for the next winter heating season, that won't be a variable the West can rely on. POLITICO's Gloria Gonzalez has more from the White House briefing. The announcement gave a boost of confidence to the oil and gas industry, with shares of large U.S. LNG producers rising over the weekend, The Wall Street Journal reported . Despite calls from administration officials for greater fossil energy production to meet short term needs, energy firms have fretted the administration's long-term outlook excluded fossil fuels. But Biden's support for increased LNG imports under the U.S.-EU arrangement demonstrated the potential for a longer commitment to natural gas. "The war has further heightened concerns over U.S. energy security and high oil prices, providing new motivations for both oil and gas supply increases in the near-term and investments in clean energy for the long-term," said Paul Bledsoe, strategic adviser at the Progressive Policy Institute, in a Sunday statement. "Russia's invasion of Ukraine appears to have at least temporarily defibrillated the sclerotic U.S. energy body politic." Meanwhile, environmentalists feared it was sliding back on climate goals by investing in fossil energy. Kate DeAngelis, international finance program manager at Friends of the Earth, pushed for a "Marshall Plan for renewable energy, not more of the same" in a Thursday statement ahead of the announcement. MORE SPR RELEASES? Further coordinated releases from national crude reserves were a "major topic of conversation" during Biden's meeting with G-7 leaders in Brussels, according to National Security Adviser Jake Sullivan. While Sullivan didn't say definitively if there were any plans for further releases, he said Friday "this was not just about talking; it was about thinking about the steps we can take in the period ahead. But I will not steal the thunder of the administration on that issue." Related: " Germany aims to be nearly free of Russian oil and coal by year's end," via POLITICO. ENERGY IS A HACKER'S DREAM TARGET: The Biden administration has recently been warning that critical U.S. industries are at risk of cyberattacks from Russia, and the energy sector is at the top of that list, reports POLITICO's Maggie Miller. The FBI warned industry recently of Russian attempts to scan energy firms in the U.S., and the country has demonstrated the ability to shut off the lights in Ukraine as part of its ongoing invasion. The threat isn't evenly distributed. While the electric sector has long been governed by cybersecurity standards, the federal government is rolling out novel cyberattack prevention provisions for the oil and gas pipeline industry, and it has led to accusations of overreach. "My biggest fear is the interdependence of natural gas and the electric grid – particularly in the Northeast where there aren't multiple pipelines," said Bernard McNamee, a former regulator at FERC, which oversees reliability of the bulk power system. The North American Electric Reliability Corporation, overseen by FERC and charged with developing cybersecurity regulations for the grid, "has pointed these issues out about the challenges of limited natural gas access and the dependence of the electric grid on it," McNamee said. A NEW EJ OUTREACH LEAD: The White House Council on Environmental Quality is announcing Jessica Ennis as its new public engagement director today. Ennis comes from Earthjustice, where she serves as legislative director for climate and energy. Ennis fills the position vacated by David Kieve, whose departure in January elevated concerns among activists that the White House was understaffed to carry out its EJ priorities. Kieve left the White House shortly after the departure of Cecilia Martinez, who'd led the White House's EJ efforts, leaving the bulk of the staff's EJ work to Corey Solow, deputy director for environmental justice. Ennis will be a liaison with community stakeholders and activists as the White House crafts and executes its environmental agenda. She was a major player in the formation of the Equitable and Just National Climate Platform, a platform developed by climate and EJ groups. AN AMERICAN IN PARIS: EPA Administrator Michael Regan is headed to Paris this week to co-chair — alongside Luxembourg's Minister for the Environment, Climate and Sustainable Development Carole Dieschbourg — the OECD's Environment Ministerial. It's the first such meeting in six years and the first time since 1979 that the U.S. has chaired the OECD environment ministerial, according to EPA. Regan will also "engage in bilateral meetings with his counterparts and work to advance the agency's efforts on climate change and environmental justice," the agency said. STRONG CAFE: The Biden administration announced a final rule on tailpipe emissions late last week, hiking up penalties for automakers who don't meet fuel economy standards going back to model year 2019. Environmentalists argue the new penalties will help push the administration's goal of having half of all vehicles sold by 2030 have zero-emissions.POLITICO's Alex Guillén has more.
| 
Comments
Post a Comment