Today’s Key Takeaways: Pros and Cons of permitting reform legislation pending in lame duck session. Santos is on track to boost AK oil production and AK state revenue. LNG exports to double by 2028. Cache Energy brings storage technology to AK. A look at Harris’ climate engagement director.
NEWS OF THE DAY:
Unpacking The Pros And Cons Of The Energy Permitting Reform Act Of 2024
James Broughel, Forbes, September 2, 2024 (tiered subscription)
As the 118th Congress winds down, Senators Joe Manchin (I-WV) and John Barrasso (R-WY) have introduced the Energy Permitting Reform Act of 2024. The legislation purports to streamline the permitting process for energy projects, a goal long sought by the fossil fuel industry and now many renewable energy companies as well. With Manchin retiring and Barrasso moving on from his position as ranking member of the Energy and Natural Resources Committee, both senators likely see this bill as a potential capstone to their energy policy legacies.
There’s a chance the legislation could pass during the lame-duck session after the election, making it crucial to understand its implications fully. While the Act includes some very modest changes that could be beneficial, it more importantly would create a number of serious problems that raise red flags.
Some changes in the legislation are positive or largely neutral. For example, the Act includes provisions that guarantee at least one offshore oil and gas lease sale per year in the Gulf of Mexico, from 2025 to 2029. The Biden administration has had historically few lease sales, but this bill would do little to change that since it only barely raises the legal minimum.
The Manchin-Barrasso bill also closes a pathway by which the Biden administration was able to “pause” LNG export approvals. It would force the Energy Secretary to make an up or down decision on LNG export applications within 90 days of environmental reviews being completed. Applications that go beyond the deadline would be deemed approved automatically. However, the Biden LNG export pause was stayed by a judge, suggesting it may have been illegal. If so, this provision may have little practical effect.
Beyond that, the bill creates exemptions from some permitting rules for geothermal exploration, as well as some permitting relief for geothermal production. It also sets a 150-day deadline for seeking judicial review of agency actions, which could help limit the litigation that is one of the primary sources of project delays.
OIL:
Santos CEO says construction at large Alaska oil field is nearly 60% complete
Alex DeMarban, Anchorage Daily News, August 31, 2024
One of Alaska’s largest oil field projects is nearly 60% constructed and will begin producing oil within two years, the head of Santos told a conference room of industry representatives in Anchorage on Thursday.
“By the first half of 2026 we’ll be on our way to sending anadditional 80,000 barrels down TAPS (daily),”said Kevin Gallagher, chief executive for the Australia-based oil and gas producer, referring to the 800-mile trans-Alaska pipeline.
Gallagher spoke during a prerecorded presentation at the Alaska Oil and Gas Association’s annual conference.
Gallagher said workers at the $2.6 billion Pikka project have built more than 40 miles of pipeline and installed thousands of support structures to elevate the pipeline above the tundra.
The company has also completed civil work for a seawater treatment plant, he said.
The project employed 2,200 people over the last construction season, he said.
Pikka is located on state land east of the National Petroleum Reserve-Alaska. The project will contribute nearly $7 billion in revenue to the state and North Slope stakeholders, he said.
GAS:
North America’s LNG export capacity is on track to more than double by 2028
U.S. Energy Information Administration, September 3, 2024
MINING:
In Anchorage, a coal-inspired startup could help pave the path to wind and solar
Nathaniel Herz, Northern Journal/Alaska Beacon, September 3, 2024
Cache Energy has backing from energy company Halliburton and plans to test its technology in Kotzebue next year. It uses pellets derived from limestone to save wind and solar energy for periods when it’s dark or calm.
Electric utilities in Alaska and around the world are trying to cut their consumption of coal and gas, and switch to renewable power sources like wind and solar energy.
But there’s one big obstacle to completely phasing out fossil fuels: The wind doesn’t always blow and the sun doesn’t always shine — meaning that those sources alone can’t match demand 100% of the time.
Green energy skeptics cite that problem in arguing that utilities will continue depending on fossil fuels for decades.
But a new company that wants to use Alaska as a testing ground is part of a growing industry that could prove those skeptics wrong — and help the state transition to generating much more of its power from wind and solar amid an impending shortage of utilities’ primary fuel, natural gas.
Cache Energy, run by an immigrant from India’s coal country, publicly unveiled its technology last month at a dusty Anchorage industrial lot — with backing from multinational energy company Halliburton and plans to test the system in Kotzebue next year.
Cache’s technology aims to capture excess power from wind and solar generation and save it until it’s needed.
POLITICS:
Harris campaign hires Thorndike as climate engagement director
Josh Siegel, Politico Pro, September 3, 2024 (tiered subscription)
Kamala Harris’ presidential campaign has hired Camila Thorndike as “climate engagement director,” according to her LinkedIn profile and a source familiar with the move.
Thorndike is joining the campaign from Rewiring America, where she was senior director of public engagement, according to the source who was granted anonymity to discuss a personnel hiring that has not been officially announced.
She previously was a legislative assistant to Sen. Bernie Sanders (I-Vt.), the progressive climate hawk, where she worked on elements of the 2022 Inflation Reduction Act, Democrats’ trademark climate law.
“Camila is exceptional. She is extremely committed to climate action and well known and well-liked across the climate movement. She is a very effective campaigner who can get stuff done,” Leah Stokes, senior policy counsel at Rewiring America, told POLITICO.