• Lucian Pugliaresi Testifies Before the House Committee on Energy and Commerce

    On Tuesday, November 16 2021, EPRINC President Lucian Pugliaresi participated in a marathon hearing with the House Committee on Energy and Commerce. Some of the notable comments he made, pulling from EPRINC’s research on the ongoing energy transition, are listed below. In addition, the full testimony with charts is here and a video of the hearing in its entirety can be found here.

    1. The Energy System is highly complicated, inter-connected regionally and globally in ways that are not always apparent. The energy transition presents a new set of supply and price risks for consumers and manufacturers. Fully implementing an energy transition over the next 30 years is neither easy nor can it be assured.

    2. Achieving net zero in the developed world will reduce carbon emissions by only a small amount, likely no more than 20 percent of expected global emissions.

    3. Regulatory programs as well as private sector commitments to accelerate the energy transition – whether it be mandates, targets, financial and procurement guidelines create uncertainty and financial risks that limit investment commitments to current legacy fuels, many of which are likely to remain in demand for years to come.

    4. Most of the recent escalation in energy prices can be tied directly to dislocations in energy supplies (largely oil and gas) from the Covid-19 pandemic. However, government policies, such as the halt on leasing on federal lands, the cancellation of the Keystone Pipeline, the potential cancellation of line 5 from Canada, rising regulatory requirements and permitting delays are all threatening North American oil and gas production. We undermine this strategic asset at our peril if we abandon these fuels before the energy transition is well established.

    5. Policy Matters. The US should see the current energy crisis in Europe as a cautionary tale and learn from it.

    6. Policy initiatives that seek to accelerate the U.S. to a fully renewable energy complex will have global implications for energy security.

    7. The transition will establish new environmental challenges and energy security issues in addition to the old.

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  • “The Future of Venezuela’s Oil Industry” by Rafael Sandrea and Martin Essenfeld

    Throughout much of the developed world, there is a consensus that concern over climate change is leading to a rapid downturn in petroleum use and that petroleum will likely have a rapidly declining role in the world’s energy mix over the next 30 years. However, a rapid energy transition to a world no longer reliant on fossil fuels represents a formidable challenge and a high likelihood remains, especially in the developing world, that petroleum’s important and large contribution to the world energy mix will not be so easily displaced. Recent EIA forecasts show that world oil and gas demand has reverted to trend. Supply requirements for the end of 2022 are likely to exceed 100 million barrels/day, a remarkable recovery from a decline in liquids demands of over 15 million barrels a day in 2020 from the Covid-19 pandemic. Although Venezuelan oil production has been constrained by both technical mismanagement and sanctions, the size of its reserve base documents its potentially important role in meeting future world oil demand.

    The timing of Venezuela’s petroleum future depends on whether it can enter the world oil market under traditional commercial conditions. On June 25, 2021, the U.S., Canada, and the E.U. issued a joint communiqué that made clear that a decision regarding the timing and specifics of the sanctions on Venezuela remains the primary determining factor on when and if Venezuela can play a larger role in the world oil market.

    Even if Venezuela were somehow to find its way free of sanctions, the road back to higher production will require massive capital investment. Venezuela, which produced over 3 million barrels in day in the 1970s, is now at only 600,000 barrels per day. The authors estimate that the level of investment and amount of time required to rehabilitate the production potential of Venezuela would approach $30 billion USD in two stages:

    Stage 1 – Pre-sanctions recovery: An investment of $7-9 billion over 2-3 years to get back to production prevalent before sanctions started in 2017 (about 2 million barrels/day).

    Stage 2 – Post-recovery: An investment of an additional $20 billion/year for 2-3 years. These investments would take 4-5 years to yield additional production. This would require investment into offshore and underdeveloped onshore projects to bring them up to full production capacity. With proper investment, Venezuela can sustain a production output of approximately 2.5 million b/d over the next 20-30 years.

    The authors provide an overview of Venezuela’s production potential, and evaluate the technical obstacles that must be addressed to restore Venezuelan oil production. Their paper can be found here.

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  • EPRINC Workshop on The Transport Climate Initiative (TCI): Challenges and Opportunities

    EPRINC held a virtual workshop on The Transport Climate Initiative (TCI): Challenges and Opportunities on June 16, 2021. 
     
    EPRINC staff, policymakers, and regional experts explored the effectiveness of the program to meet its goals of lowering greenhouse gas (“GHG”) emissions. Among the topics discussed were how the program fits in with U.S. and international efforts to accelerate the energy transition, an assessment of the program’s impact on consumers, implementation challenges, and opportunities for green investments.   
     
    The Transportation and Climate Initiative (TCI) is a regional collaboration of potentially 12 Northeast and Mid-Atlantic states and the District of Columbia seeking to reduce consumption of petroleum-based fossil fuels in the transportation sector and introduce cleaner fuels and more effective transportation systems.  The list of potentially participating jurisdictions are: Connecticut, Delaware, the District of Columbia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, and Virginia.

    The agenda for the event can be found here, the presentations that were given are here, and the full video recording of the event is here.

    A report on the event was written by Ashutosh Shastri, Senior Advisor, Global Gas Centre & Distinguished Fellow, EPRINC, and can be accessed here.

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    EPRINC and IER Co-Host Virtual Workshop on “Understanding the Safer Affordable Fuel-Efficient (SAFE) Rule for Automobiles”

    On July 27, 2020, the Energy Policy Research Foundation and the Institute for Energy Research jointly hosted a virtual workshop on the recently adopted regulation setting fuel efficiency standards for passenger cars and light trucks. 

    Current and former officials from the U.S. Environmental Protection Agency (EPA), National Highway Transportation Safety Administration (NHTSA), representatives from the auto industry, EPRINC and IER staff, and a cross section of stakeholders discussed the new rule  and its broader implications for energy markets and the future of the U.S. auto industry. 

    The video recording of the workshop can be accessed here, and the presentation from Heidi King is here and the one from Max Pyziur is here.

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  • EPRINC’s Lucian Pugliaresi and Larry Goldstein Publish a Commentary on Policy Responses to the Current Crisis in the World Oil Market in Real Clear Energy

    EPRINC President Lucian Pugliaresi and former EPRINC President Larry Goldstein have written a piece for Real Clear Energy entitled “Oil Quotas and Import Fees? No, Get America Back to Work.” In this piece, they examine the current issues in petroleum in light of the COVID-19 pandemic, as demand destruction coincides with an oversupplied market. They write about their concerns with oil quotas and import fees as realistic solutions to this issue, and provide their thoughts on a possible solution. Click here to read their article.

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EPRINC Workshop on The Transport Climate Initiative (TCI): Challenges and Opportunities

EPRINC held a virtual workshop on The Transport Climate Initiative (TCI): Challenges and Opportunities on June 16, 2021. 
 
EPRINC staff, policymakers, and regional experts explored the effectiveness of the program to meet its goals of lowering greenhouse gas (“GHG”) emissions. Among the topics discussed were how the program fits in with U.S. and international efforts to accelerate the energy transition, an assessment of the program’s impact on consumers, implementation challenges, and opportunities for green investments.   
 
The Transportation and Climate Initiative (TCI) is a regional collaboration of potentially 12 Northeast and Mid-Atlantic states and the District of Columbia seeking to reduce consumption of petroleum-based fossil fuels in the transportation sector and introduce cleaner fuels and more effective transportation systems.  The list of potentially participating jurisdictions are: Connecticut, Delaware, the District of Columbia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, and Virginia.

The agenda for the event can be found here, the presentations that were given are here, and the full video recording of the event is here.

A report on the event was written by Ashutosh Shastri, Senior Advisor, Global Gas Centre & Distinguished Fellow, EPRINC, and can be accessed here.

“Colonial Pipeline Hack Highlights Growing Energy Security Risks” Report by Lucian Pugliaresi and Max Pyziur

Colonial Pipeline Hack Highlights Growing Energy Security Risks:

Infrastructure Cyberattacks are a Threat to National Security

The recent hack of the Colonial Pipeline computer systems, which disrupted gasoline supplies to the Northeast has raised a new set of energy security concerns. Although the attack was presumably not the actions of a state entity, it is hard not to view it as an act of terrorism given its potential for widespread disruption. This is not a new threat. In the late 1990s, President Clinton issued Presidential Directive 63 which recognized that growing threats to critical infrastructure had become “increasingly automated and interlinked.” The Directive mandated that within five years (by 2003) critical U.S. infrastructure would be hardened to cyberattacks. Despite the Directive, measures to protect infrastructure from growing cyberattacks have not kept up.

This report was published on RealClear Energy, but the full PDF version of the report can be found here.

EPRINC First Energy Security Series Virtual Workshop: Energy Security and the North American Oil & Gas Production Platform

EPRINC has hosted the first virtual workshop in its new Energy Security Series series, entitled “Energy Security and the North American Oil & Gas Production Platform.” The recording of the workshop available here.

Initiatives to limit U.S. oil and gas production can be expected in the near future. Are these policy initiatives effective measures to accelerate the energy transition and do they conflict with long-standing measures to sustain American energy security?  

EPRINC staff and fellows Ivan Sandrea, Jeff Kissel, Max Pyziur, Michael Lynch, Larry Goldstein, Carmine Difiglio, Glen Sweetnam, and Lucian Pugliaresi as well as Aaron Annabel from the Canadian Embassy, Trisha Curtis (EPRINC fellow, PetroNerds), and Fred Hutchison from LNG Allies provided presentations and commentary on this important topic. Their presentations can be found here. The agenda for the event can be found here.

Emily Medina on the Future of the U.S.-Mexico Energy Relationship

EPRINC Fellow Emily Medina has published another piece on Mexican public policy and energy economics. This paper, entitled “The U.S.-Mexico Energy Relationship Going Forward,” examines the future of the relationship between the two countries focusing on bilateral energy integration, Mexico’s new nationalist policies, and the incoming Biden administration while keeping the geopolitics of the world in mind. The paper can be found here.

The piece has been published by Mexico Today, an English-language news service by the newspaper Reforma.

IEEJ and EPRINC Co-Host Virtual Workshop: The Role Of LNG In A Carbon-Constrained Market

The Institute of Energy Economics Japan (IEEJ) and the Energy Policy Research Foundation, Inc. (EPRINC) jointly hosted a virtual workshop, “The Role of LNG in a Carbon-Constrained Market” on December 15, 2020, 7:00 pm – 9:00 pm (Washington, D.C. – EST); December 16, 2020, 9:00 am – 11:00 am (Tokyo – JST).

This workshop was part of an ongoing cooperative program between IEEJ and EPRINC to explore the potential for LNG to meet rising energy demand and growing requirements for decarbonization in Asian markets. Japanese and U.S. energy research experts, senior representatives from U.S. and Japanese companies, officials from the Japanese Ministry of Economics, Trade, and Industry, and others came together for a discussion on policy and technology developments needed to address the challenges and opportunities for LNG as Asia’s growing energy consuming centers search for efforts to restrain carbon emissions and sustain economic growth.

The workshop agenda can be found here. The workshop was recorded and is accessible at this link using passcode: ?#?@s8cS

There were some excellent presentations given at the workshop, which can be downloaded here. In addition, EPRINC’s Max Pyziur provided all participants with a scene-setting presentation that is accessible here.

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