ARC ENERGY IDEAS

While North American natural gas prices are relatively low compared to Europe and Asia – they are still over four times greater than the typical level over the past several years. Assuming a cold winter, North American prices could spike up even higher.This week we invite Tim Egan, President and CEO, Canadian Gas Association (CGA) to join the podcast to talk about natural gas in Canada.   Here are some of the questions Peter and Jackie ask: Is affordability a concern this winter for Canadian residential and industrial users of natural gas?   Are exports of LNG from Canada’s east coast economic? Why has central Canada’s consumption of American natural gas grown?  Will Renewable Natural Gas (RNG) or hydrogen consumption grow in Canada? What are some examples of Canadian innovation when it comes to natural gas? Content referenced in this podcast:·         Website with more information on natural gas and its consumption: “Fueling Canada – we can do it” 

The backlash against the ESG movement is on the rise. ‘Anti-woke’ investment funds are launching and 19 US States wrote a letter to BlackRock, saying it is putting leftist politics above investor interests and returns.  Jackie and Peter debate if the ESG backlash could change corporate behaviour around climate and the environment.  Especially when you consider that, compared with the pro-ESG movement, the anti groups currently represent much less capital. Next, we invite our guest Radha Curpen, Vice Chair, Vancouver Managing Partner and National Leader, ESG and Strategy and Solutions, Bennett Jones to join us to provide an update on the legal aspects of ESG for corporations.Content referenced in this podcast:To receive Peter’s weekly email commentary, sign-up at Energyphile.orgThe Oxford Institute for Energy Studies paper “Global trade of hydrogen: what is the best way to transfer hydrogen over long distances?”Arizona Attorney General Mark Brnovich organized and is leading a coalition of 19 states that sent a letter to BlackRock Inc., calling out its practices of putting leftist politics above investors’ interests and returns (August 4, 2022)Anti-Woke’ investment fund launches to back companies that only focus on profits, Proactive (May 11, 2022)Anti-ESG Activist Investor Urges Chevron to Increase Oil Production, WSJ (September 6, 2022)Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/

One uncertainty about how the energy transition will play out is how prevalent battery technology will be in the future. Today’s lithium-ion batteries work well for short duration utility storage and electric cars, but they are not commercial for some other applications – such as long duration energy storage or heavy hauling.  Also, material supply constraints are increasing the cost of batteries and becoming a limit to growth.  To understand the current and future state of battery technology, we welcome Dr. Rajshekar DasGupta, Chief Executive Officer of Electrovaya to our podcast.  Electrovaya is a Canadian developer and manufacture of lithium-ion batteries that is based in Mississauga, Ontario. They are also developing proprietary solid state battery technology.Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/

This week on the podcast, Jackie and Peter discuss some recent news. First, they talk about the surprise end to summer with the United States passing into law the Inflation Reduction Act (IRA).  The IRA includes $369 billion of spending on clean energy and supports the build-out of a clean energy supply chain in the United States and the EV incentives also help  free-trade partners and North American automakers. Next, Peter and Jackie talk about how Western Canadian natural gas prices crashed in the last few weeks of summer.  While the rest of the world is paying record high natural gas prices, the benchmark in Alberta – called AECO – was pricing near zero dollars.  Peter and Jackie talk about the price collapse and the causes.Finally, they debate some recent news headlines.Content referenced in this podcast:Energyphile Vignette of the Week “Make Hay While the Sun Shines”August 25, 2002 CBC reports “Chemical engineer questions Belledune hydrogen plan”July 29, 2022 Yard “Just Plane Wrong: Celebs with the Worst Private Jet Co2 Emissions” Please review the ARC Energy Institute disclaimer.

In this episode we showcase one of Peter’s Energyphile stories “Long Way Around.”In the preamble to the story, Peter and Jackie talk about Canadian energy security for oil.  A Strategic Petroleum Reserve (SPR) for Canada’s eastern provinces would have helped during the 1970s oil price shocks, but is it still relevant today? Should the Energy East oil pipeline be reconsidered as a way to increase Canadian energy security?The Energyphile stories are also available on numerous podcast apps, including Apple iTunes Podcasts and Spotify.Content referenced in this week’s podcast:See “Long Way Around” and other Energyphile stories  History of Canadian Crude Oil Imports (2010 to 2021) by the Canada Energy Regulator (CER)Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/

This week on the podcast we discuss the Canadian Federal Government’s July 2022 discussion document “Options to Cut Oil and Gas Sector Greenhouse Gas Emissions to Achieve 2030 Goals and Net-Zero by 2050.”    Joining the discussion is our guest Sander Duncanson, Partner, Regulatory, Environmental, Indigenous and Land at Osler, a Canadian business law firm.There are two policy options being proposed.  Option one is a new cap-and-trade system for the oil and gas sector in addition to the existing provincial carbon pricing systems already in place.  Option two proposes to modify the existing carbon pricing systems in each province, setting more stringent rules for oil and gas.Jackie, Peter and Sander express a number of concerns about the proposal; the inefficiency of pricing carbon higher for one sector of the economy, the potential for unintended consequences from overlapping policies, including the potential to harm to smaller oil and gas producers, and the policy could potentially face legal challenges from the provinces creating uncertainty that could ultimately slow down investment and reduction in GHG emissions. The discussion document is asking for feedback to be submitted by September 30, 2022 and sent to PlanPetrolieretGazier-OilandGasPlan@ec.gc.ca. We encourage people to participate and express their views on the proposed cap on emissions.Content referenced in this podcast:“Eradicating the Smoke Nuisance” from Energyphile.orgOptions to Cut Oil and Gas Sector Greenhouse Gas Emissions to Achieve 2030 Goals and Net-Zero by 2050.”    Please review the ARC Energy Institute disclaimer.

The final rule for Canada’s Clean Fuel Standard (CFS) was published in the Canada Gazette on July 6, 2022.   By 2030, the rule aims to reduce the emissions for Canadian suppliers of gasoline and diesel by over 15 percent (compared with 2016).This week on the podcast, Jackie and Peter talk about the new rule.  While a draft version was published in December 2020, the final rule had some unexpected revisions. They also talk about Alberta carbon policy.  The provincial government issued a document for feedback on proposed changes to the large emitter program, called Technology Innovation and Emissions Reduction (TIER).Content referenced in this week’s podcast: -        The Final Canadian Clean Fuel Standard -        A Review of Alberta’s Technology Innovation and Emissions Reduction (TIER) RegulationPlease review the ARC Energy Institute disclaimer. 

This week on the podcast, Jackie and Peter try a new format discussing and debating a number of recent news headlines, including:Citi Says Oil May Collapse to $65 by the Year-End on Recession (July 5, 2022) Video of Stuart Kirk, HSBC head of responsible investing at the Financial Times Moral Money Event Video (May 2022)Mining Industry Warns Energy Transition Isn’t Sustainable (July 3, 2022)EV prices soar, as one exec warns of market “collapse” if they don’t get cheaper (July 5, 2022)Clean Energy Canada’s report that compares the total ownership costs of electric cars to the gas equivalents, titled The True Cost (March 30, 2022)Deutsche Bank raided by authorities over ESG ‘greenwashing’ claims: We’ve found evidence that could support allocations of prospectus fraud (May 31, 2022)SEC is Investigating Goldman Sachs over ESG Funds (June 10, 2022) Please review the ARC Energy Institute disclaimer.

Earlier this year Cheniere Energy and ARC Resources announced a new supply agreement to export Canadian gas from an LNG facility located on the US Gulf Coast. This week on the podcast, Anatol Feygin, Executive Vice President and Chief Commercial Officer at Cheniere and Ryan Berrett, Senior Vice President, Marketing at ARC Resources tell us more about their agreement. Here are some of the questions that Jackie and Peter ask them:  How well positioned is North America versus other potential LNG suppliers to Europe?  By 2030, how much will US LNG exports grow compared with today?  Considering the long transportation distance, does it make economic sense to export Canadian gas from the US Gulf Coast?   With the increasing pull from international markets, do you expect North American gas production will grow? Are ESG attributes important to buyers of LNG?See the press release about the Cheniere Energy and ARC Resources supply agreement: https://lngir.cheniere.com/news-events/press-releases/detail/247/cheniere-corpus-christi-stage-iii-and-arc-resources-signPlease review the ARC Energy Institute disclaimer. 

This week on the podcast we talk about Jackie’s recent op-ed “Blackouts Could Drive a Return to Home Solar” with our guests Gursh Bal and Kai Fahrion, who are the Co-CEO’s of Zeno, a residential home solar solutions provider. Jackie’s op-ed argues that, while reducing power bills has been the historical reason for installing rooftop solar, the biggest push in the future will come from the increasing risk of power outages due to extreme weather. Electric vehicles and new financing options are other factors that are reducing the barriers to adoption. Here are some of the questions Peter and Jackie asked Gursh and Kai:  What is the typical size, cost and payback on a home solar installation?  How can the Ford F-150 Lightning electric truck’s bidirectional feature increase home energy security?   Could a Canadian home go off-grid with these solutions? What is the outlook for residential solar? What are the common concerns when people consider home solar?Other content referenced in this week’s podcast:Zeno’s documentary on Peter’s home solar installationCheck out Zeno’s website: www.livezeno.com  Please review the ARC Energy Institute disclaimer.