ARC ENERGY IDEAS

President Biden’s climate plans are starting to come into focus. The Whitehouse released “The American Jobs Plan” a few weeks ago, which included about $1 trillion of spending for clean energy and climate initiatives. The Whitehouse is also hosting a virtual Climate Summit this week with dozens of world leaders, and the United States is expected to announce an ambitious emissions reduction target for 2030.This week, our guest is Samantha Gross, Director of Energy Security and Climate Initiatives at the Brookings Institution, a nonprofit public policy organization based in Washington, DC. Here are some of the questions Jackie and Peter asked: What is the significance of this week’s Whitehouse Climate Summit? What are the top areas of clean energy spending in President Biden’s “American Jobs Plan”? What other policies may still be forthcoming – carbon tax, clean fuel standards, border adjustment taxes?  What should the US oil and gas industry expect?To connect with Samantha Gross at the Brooking Institution, and to read her recent blogs and research, visit:  https://www.brookings.edu/experts/samantha-gross/Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/  

This week Jackie and Peter take on listener EV questions and comments. Here are some of the questions they tackled: Are EVs impacting oil demand and markets? Is degrading battery life a risk of EV ownership? How much range is lost due to cold weather? How do the economics of leasing vs buying compare? What about people without the luxury of a garage with adequate electrical capacity? And, if the energy for manufacturing the cars is factored in, are EVs still the lower GHG emissions option?Link to the IEA study that compares lifecycle greenhouse gas emissions over ten year lifetime, comparing EVs to ICE, as well as other technologies.Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/

LNG Canada’s $40 billion megaproject is taking shape. The project is the largest private sector investment ever made in Canada, and marks the birth of a new export industry. This week, the CEO of LNG Canada, Peter Zebedee joins the podcast to provide an update on the construction underway in Kitimat, British Columbia.Here are some of the questions we asked Peter Zebedee: What is the current long-term outlook for LNG demand? Is it possible for an LNG facility to be net-zero emissions? How would you describe support from Indigenous peoples impacted by the project? What is the state of the construction now, and how has COVID impacted progress?View current pictures of LNG Canada's construction site: https://www.arcenergyinstitute.com/pictures-from-lng-canada/See LNG Canada’s website: https://www.lngcanada.ca/Link to Shell LNG Outlook 2021.Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/

Stock prices of companies in the clean energy space have rocketed-up over the past year. Even considering the recent pullback, most stocks are still up significantly. Clean energy investing is not new. There have been a few cycles in the past that have generally not ended well for investors. This week, Peter and Jackie discuss today’s market dynamics and what may have changed compared with the past. The mentioned article on direct air capture, including the estimated price for removing carbon dioxide at $US 250/tonne can be found here: “The Potential for Carbon Capture Tech is Captivating.”Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/

What is the effort required to respond to investor ESG disclosure requirements? Should oil sands companies have access to “green financing” to fund emissions reduction projects?  How do Suncor’s GHG emission reduction goals compare to other oil producers? What types of new energy technologies and projects is Suncor investing in? What is your perspective on Canadian federal climate policy, including $170/tonne carbon price by 2030 and the Clean Fuel Standard? These are just some of the questions we asked Martha Hall Findlay, Chief Sustainability Officer at Suncor Energy.Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/

This week our guest is Simon Moores, Managing Director of Benchmark Mineral Intelligence. Benchmark Mineral Intelligence offers price reporting and market intelligence for the supply chains of lithium ion batteries, electric vehicles and energy storage. Here are some of the questions Jackie and Peter asked Simon: What is driving the increase in lithium, cobalt, and nickel prices today? Are there new mineral mines coming? Are auto manufactures considering the battery supply chain in their ambitious growth plans? What about the geopolitics of battery production and minerals?To learn more about Benchmark Mineral Intelligence research and events visit: https://www.benchmarkminerals.com/For access to the Energyphile Book Clubs, and other Energyphile content, signup here.Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ 

This week marks a year since the oil price war started and COVID-19 reached North America. While pandemic restrictions still remain, the oil markets have roared back. In this episode, Jackie and Peter discuss the recent ARC commentary “A 60-to-0 Round Trip: Nine Oily Lessons from the Pandemic.”  For the energy industry, the events of the past 12 months have been a thought experiment turned reality. What have we learned?See the IEA’s “Achieving net-zero emissions by 2050” to view the assumptions around the impact of behaviour on GHG emissions.Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ 

Millions of Texans were left in the freezing cold when the electrical system fell short during a historic winter chill. The deadly event caused the electric system operator to cut about 35% of forecasted demand with blackouts. This week, our guests – Joshua Rhodes, Research Associate at the University of Texas at Austin and Founding Partner at IdeaSmiths LLC and Blake Shaffer, Assistant Professor in the Department of Economics and School of Public Policy at the University of Calgary – help us understand what happened and the lessons that can be applied to other jurisdictions, including in Alberta. Joshua and Blake recently wrote an op-ed titled “Lessons for Alberta from the Texas power blackout.”Here are some of the questions Peter and Jackie asked this week’s guests:  Why did demand rocket up so fast? What sources of power generation (wind, solar, natural gas, coal and nuclear) fell short? What happened to power prices?  What could have improved the situation (capacity markets, transmission interconnects with other jurisdictions, demand-side changes)? What are the lessons for Alberta? And critically, what does this event mean for the way we think about decarbonizing electrical grids? The power generation by fuel type in the first few weeks of February 2021 by the IEA:  “Severe Power Cuts in Texas Highlight Energy Security Risks Related to Extreme Weather Events.”Blake’s tweet that shows the actual generation of different power sources vs expectations: https://twitter.com/bcshaffer/status/1364635620706971651Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ 

Are electric vehicles the new family car? Jackie’s family recently purchased an EV to find out.  In this episode, Peter and Jackie discuss the economics and utility of EV ownership, including the barriers of limited high-speed charging infrastructure and the need for standardized plugs.Next is an update on Canada’s Clean Fuel Standard (CFS). The draft legislation was released in the Canada Gazette in December 2020 and the deadline to provide feedback on the proposed CFS policy is quickly approaching on March 4, 2021. View the draft CFS, starting on digital PDF page 108. Instructions to provide feedback are on digital PDF page 245.Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ 

Last week the IEA described the oil markets as ‘fragile.’ In contrast, the price of oil has soared back from all time lows (and negative pricing) to its pre-COVID levels. This week Peter and Jackie discuss the arguments of the bulls and the bears. The bears are focused on weak oil demand, slow vaccine roll outs and prolonged lockdowns. The bulls see beyond this near-term fragility to the demand recovery.Next, we consider the climate impacts of constraining North American oil production. Rating agencies are downgrading oil and gas companies because of climate risk. New permits for oil and gas drilling on US Federal lands are paused. The presidential permit for the KXL pipeline is canceled. But how do these actions reduce GHG emissions and fight climate change?Subscribe to the Energyphile email to learn about future book club events.In Total’s recent investor outlook, slide 14, they present an outlook for a 10 MMB/d shortfall in oil supply by 2025.Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/