Today’s Key Takeaways: IEA releases 2023 Energy Technology Perspectives. Top theme for oil and gas in 2023. Nevada lithium mine receives $700M conditional loan from DOE. 5 things to watch in Alaska’s legislative session.
NEWS OF THE DAY:
Energy Technology Perspectives 2023
IEA, January 2023
The Covid-19 pandemic and Russia’s invasion of Ukraine have led to major disruptions to global energy and technology supply chains. Soaring prices for energy and materials, and shortages of critical minerals, semiconductors and other components are posing potential roadblocks for the energy transition. Against this backdrop, the Energy Technology Perspectives 2023 (ETP-2023) provides analysis on the risks and opportunities surrounding the development and scale-up of clean energy and technology supply chains in the years ahead, viewed through the lenses of energy security, resilience, and sustainability.
Building on the latest energy, commodity, and technology data, as well as recent energy, climate, and industrial policy announcements, ETP-2023 explores critical questions around clean energy and technology supply chains: Where are the key bottlenecks to sustainably scale up those supply chains at the pace needed? How might governments shape their industrial policy in response to new energy security concerns for clean energy transitions? Which clean technology areas are at greatest risk of failing to develop secure and resilient supply chains? And what can governments do to mitigate such risks while meeting broader development goals?
The Energy Technology Perspectives series is the IEA’s flagship technology publication, which has been key source of insights on all matters relating to energy technology since 2006. ETP-2023 will be an indispensable guidebook for decision-makers in governments and industry seeking to tap into the opportunities offered by the emerging new energy economy, while navigating uncertainties and safeguarding energy security.
OIL & GAS:
What Will Be the Top Theme for Oil and Gas in 2023?
Andreas Exarheas, Rigzone, January 16, 2023
Globally, the impact of Western sanctions and the G-7 price cap on Russian oil will be the top issue for the oil and gas sector in 2023.
That’s what Matthew Bey, a Senior Global Analyst for risk intelligence company RANE, said when asked what the top theme would be for the oil and gas industry this year.
“While oil prices have not risen significantly since the G-7 price cap on Russian crude oil was introduced in December 2022, there’s a risk that oil prices rise in the second half of next year should economic growth in the developed economies and China, once its Covid-19 outbreak starts to die down, drive higher demand for oil,” Bey told Rigzone.
“For oil and gas companies this will spur more calls to expand investment if prices rise and any acceleration in drilling and completion activities could exacerbate lingering shortages of manpower, equipment and supplies oil companies face,” he warned.
When asked the same question, Micah Smith, a Senior Partner, and Global Oil & Gas Practice Leader at McKinsey & Company, told Rigzone that one word that will define the oil and gas industry in 2023 is “and”.
“As the industry continues to adjust to a new challenging reality, the imperative will be achieving the balance of clean and affordable and plentiful and secure energy,” Smith said.
“This challenge will be exacerbated by potential recessionary headwinds, continued geopolitical tensions, and higher interest rates which will hinder the needed large-scale investments. At the same time, the world continues catching up on two years of global underinvestment in hydrocarbons during and after Covid-19, despite demand growth that has returned to pre-pandemic levels and continues to increase,” he added.
“The oil and gas industry will need to balance targeted growth and streamlined barrels to market without losing its capital discipline and focus on returns, as well as increase investments in natural adjacencies such as renewable fuels and CCUS, which will continue to accelerate decarbonization while at the same time ensuring an orderly transition,” Smith went on to state.
Nevada lithium mine project gets $700M conditional loan offer from DOE
Jeff St. John, Canary Media, January 13, 2023
Federal loans for Ioneer’s Rhyolite Ridge lithium mining project could expand domestic supplies of a key material for EVs and batteries.
The U.S. government, on the hunt for domestic sources of lithium to feed the country’s burgeoning battery and electric-vehicle industries, has set its sights on backing a massive lithium mine in western Nevada.
The Department of Energy’s Loan Programs Office on Friday issued a conditional commitment to lend up to $700 million to Ioneer Ltd.’s Rhyolite Ridge Lithium-Boron Project. Ioneer, an Australian company, has partnered with South Africa–based mining company Sibanye-Stillwater and a host of other companies to develop the project, one of a handful of lithium mining and extraction sites being pursued in the U.S.
The Biden administration has prioritized expanding domestic sources of critical minerals and materials for clean energy manufacturing, both to support its climate agenda and to boost American competitiveness in the international market. Today the vast majority of lithium for lithium-ion batteries is extracted and processed overseas, with Australia dominating hard-rock lithium mining, Chile and Argentina dominating the extraction of the mineral from brines, and China dominating the processing of lithium into battery materials.
Demand for lithium is projected to exceed current global production capacity by 2030, driving U.S. automakers to seek “a robust domestic supply of materials to keep pace,” DOE said in Friday’s statement. Once it’s operating at full scale, the Rhyolite Ridge project is expected to be capable of producing enough lithium carbonate to supply about 370,000 EVs per year.
Ioneer has signed agreements with a battery joint venture of Ford and SK On, a battery joint venture of Toyota and Panasonic, and battery cathode supplier EcoPro Innovation to buy the lithium carbonate to be processed from the minerals mined at the site.
Five things to watch in Alaska’s legislative session
Sean MacGuire, Iris Samuels, ADN, January 16, 2023
With Alaska state legislators set to be sworn in Tuesday, the coming legislative session heralds a new bipartisan coalition in the state Senate, disarray in the House and a continuation of the seemingly unshakable debate about how to calculate the Permanent Fund dividend.
Here are five things to know before the session begins.