Biden's love-hate relationship with oil

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Mar 10, 2023 View in browser   By Arianna Skibell Presented by President Joe Biden outlines his 2024 proposed budget at the Finishing Trades Institute on Thursday in Philadelphia. | Matt Rourke/AP Photo President Joe Biden has long railed against fossil fuels as a major driver of the climate crisis. But out on the stump, top members of his administration are citing oil and natural gas exports as a triumph for the U.S. as the war in Ukraine rages and Europe turns to the United States and other friendly nations for energy supplies. This contradiction in policy objectives at the heart of Biden's climate and energy agenda was on full display this week, including when energy executives gathered in Houston for the CERAWeek by S&P Global conference and when the president released his $6.8 trillion budget map. Biden’s spending plan would prioritize low-carbon energy and climate spending while axing tax breaks and subsidies used by the fossil fuel industry. To cut the deficit, the White House has proposed tax increases on billionaires, wealthy investors and corporations. At the same time, speaking in Houston, Energy Secretary Jennifer Granholm praised the dramatic uptick in U.S. oil and gas exports in response to Russia's war in Ukraine. The United States has been “an indispensable energy partner to our allies and a global energy powerhouse,” she told energy executives Wednesday. And Biden is working with U.S. natural gas producers to create an international standard for verifying the climate impact of “clean” natural gas, writes POLITICO reporter Ben Lefebvre. The move could boost domestic production by allowing U.S. natural gas companies to sell fuel to countries working to combat climate change. The oil and gas industry reaped record profits last year, and production is only expected to grow. Oil produced in the United States is projected to hit 12.4 million barrels a day this year and 12.6 million barrels a day by 2024, according to the U.S. Energy Information Administration. Both would be records for domestic oil production. Gas production, meanwhile, is on track to eclipse 100 billion cubic feet a day this year — a first in U.S. history. The science is clear. The world needs to swiftly and aggressively cut planet-warming pollution to stave off the worst of climate change. And while Biden’s budget proposal talks a big game, it has little chance of moving through Congress while Republicans control the House. Still, the president’s attack on fossil fuel subsidies within the budget proposal could help him retain favor among young climate activists who drove Democratic victories in 2020 and 2022, write POLITICO’s E&E News reporters Scott Waldman and Adam Aton.   Thank goodness it's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Josh Siegel and Kelsey Tamborrino break down Biden’s energy funding proposals and how they impact his green goals. A message from bp: The US is home to bp’s biggest workforce in the world and some big investments. Over the past 5 years, we’ve invested $10 billion in the Gulf of Mexico and plan to add $7 billion more by 2025. See how we are advocating for good policy to help us go further, faster.   The Manchin Show Laura Daniel-Davis, Biden's pick for assistant Interior secretary for land and minerals management, during her confirmation hearing in 2021. | Francis Chung/E&E News Democratic Sen. Joe Manchin of West Virginia officially pulled his support for Laura Daniel-Davis to serve as Interior assistant secretary for lands and mineral management, effectively dooming her prospects for confirmation. She remains in a similar role at the agency, at least for now, writes Emma Dumain. The Senate Energy and Natural Resources Committee chair, who earlier this week derailed President Joe Biden’s nominee for FCC commissioner and voted against the administration’s pick for IRS commissioner, announced he would not call a vote on Daniel-Davis’ nomination Friday morning in the Houston Chronicle. The move leaves Daniel-Davis few if any avenues for confirmation. Manchin said he made his decision after discovering that Daniel-Davis approved an agency decision putting administration climate goals ahead of Alaska energy production, which he said ran afoul of the intent of the Inflation Reduction Act.   A message from bp:   Power Centers A woman fetches water during a drought in Samburu County, Kenya, in October 2022. | Brian Inganga/AP Photo Sunblock for the planet? Radical climate interventions — like blocking the sun’s rays — could alter global weather patterns, potentially benefiting some regions of the world while harming others, writes Sara Schonhardt. That possibility, climate scientists say, means any research on such methods must consider those risks and involve the countries that already bear the greatest impacts from a warming planet. Budget takeaways Along with a big boost in dollars for offshore wind, Biden's budget plan would sustain fossil fuel programs that make up a significant portion of offshore expenses, writes a team of E&E News reporters. Democrats are praising the plan as a whole-of-government approach to combating the climate crisis, while Republicans say it is focused on penalizing energy producers and raising taxes. Expect more of that rhetoric as the fiscal 2024 spending season kicks off in earnest, write Jeremy Dillon and Emma Dumain. Trade spat talks Biden and European Commission President Ursula von der Leyen agreed Friday to a series of moves to de-escalate a trade spat over the multitrillion-dollar clean energy arms race among the world's superpowers, write Zack Colman and Karl Mathiesen. Biden and von der Leyen issued a joint statement after their White House meeting saying the governments would "immediately" begin talks to bolster critical minerals supply chains between the two allies, with an eye toward allowing EU companies to take advantage of key electric vehicle tax credits in the U.S. climate law. Hovering over the talks is rising concern in both the U.S. and Europe about the world's clean energy front-runner: China. In Other News Missing coverage: Climate change affects people of color the most. But a new report finds that TV news broadcasts have significant gaps in coverage. Managed retreat: Many coastal residents are willing to relocate in the face of sea-level rise.   A message from bp: We are proud of our 150-year history in the United States, and we’re committed to America for the long-term as we transform our company in line with our ambition to reach net zero emissions by 2050 or sooner, and help the world get there too. bp is a top energy investor in the US: · Over $130 billion invested here since 2005 · 245,000 jobs supported across the country · $60 billion added by our businesses to the national economy in 2021 · Over $100 million donated to community programs over the past five years · Working to deliver the energy America needs today while developing lower carbon alternatives See how we are advocating for good policy to help us go further, faster.     DOWNLOAD THE POLITICO MOBILE APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. The sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don’t miss out on the app you can rely on for the news you need, reimagined. DOWNLOAD FOR iOS– DOWNLOAD FOR ANDROID.     Subscriber Zone A showcase of some of our best subscriber content. Democratic Sen. Joe Manchin of West Virginia. | Anna Moneymaker/Getty Images Manchin is joining with Republicans to seek a bipartisan energy deal and thwart Biden's regulatory agenda, while criticizing three of the president’s nominees in a single week. Texas lawmakers announced a package of bills Thursday that would boost the construction of new natural gas power plants at the expense of low-carbon energy. EPA Administrator Michael Regan hinted that his agency was considering clean hydrogen as a basis of its upcoming carbon rule for new gas-fired power plants. That's it for today, folks. Thanks for reading, and have a great weekend!   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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