The consequences of the pandemic, the war in Ukraine, and climate change, as well as multidirectional geopolitical pressure on the oil and gas industry, have made energy security a major economic and political issue in the United States.
In a series of talks and presentations hosted by the Center for Strategic and International Studies (CSIS), industry leaders spoke about the future of energy security in the United States, what companies are focusing on during the “energy transition,” the role of modern methods of oil and gas production, and how environmental and social governance requirements impact and corporate governance) over the oil and gas sector.
The main report is devoted to the discussion of the prospects for US energy security in the near future. Congressman Scott Peters (Democrat from California), a member of the House Committee on Energy and Commerce (Rep. Scott Peters (D-CA), member of the House Committee on Energy and Commerce), set the main direction of the specialists’ discussions – “Supplying the United States with energy – surplus resources”.
“Whatever the timing of the transition to renewable energy in the world, and no matter how ‘complete’, we will be using oil and gas for a long time to come. Therefore, I am trying to prioritize the following question in the short and medium term: how to ‘cleanly’ use this energy industry as much as possible Scott Peters said.
Politician First and foremost, Scott Peters has shared his partisan work with Republican Congressmen from Texas, specifically Texas Congressman Judy Arrington.
One of the starting points for joint action against climate change, Peters advocated the topic of reducing methane emissions. “Twenty-five percent [в процессе потепления] Today it depends on the level of methane emissions. A large portion of this agricultural waste, mostly from methane seeps into the production and distribution systems of the oil and gas industry. We’ve brought back the Obama-era methane emission control rules for 2016, and they’re good, but they could be a lot better. As a result, the Biden administration is working on its own new “methane rules.” “So I would prefer that we meet on the Energy and Commerce Committee and come to a legislative agreement on how we can move forward on this together,” said Scott Peters.
Speaking on issues of economic security in connection with the aforementioned topic, Scott Peters stated in his introduction that “one of the problems of the United States is to know all the supply chains [нефтепродуктов]”.
“We are in a difficult situation because we cannot do without Saudi Arabia, [полностью] Without Russia, Venezuela and even Iran. “I’m not sure how this will serve our long-term security,” Scott Peters said.
Senior Research Fellow at the CSIS Center for Energy Security and Climate Change Ben Cahill(Ben Cahill, Senior Fellow, Energy Security and Climate Change Program, CSIS), outlined his main “observations” on the strategic development of the United States in relation to energy security. He said:
The United States is the largest producer of oil and natural gas in the world. However, in recent weeks, we have seen that the prices of gasoline and diesel fuel in our country are closely related to the global market. We cannot make our way to energy independence. Prices here reflect what is happening in the rest of the world, whether it is Russia, Ukraine, events in the Middle East or elsewhere. We should think about how to use our resources, and help European allies with it [поддержании] Energy Security Consider the strategic impact of US oil and gas exports on the rest of the world, especially if we can cut emissions. The Energy Information Administration said we have about 11.6 million barrels per day today. [добычи нефти] in the United States of America. This is a huge number. Since 2020, there’s been a really sharp drop in oil production in the US, but we’ve been through this amazing volatility. Gas production in the United States is about 96 billion cubic feet per day. This is a record. There is a very broad “golden mean” to fix in US energy. The average American believes that we must be competitive in the industries of the future. This means we shouldn’t just focus on fossil fuels, but “keep our eyes on the horizon,” focusing on things like wind power, solar power, battery technology, hydrogen production, and green industrial policy.”
The search for balance and agreement between shale oil companies, investors and the government was devoted to the dispute of three other well-known experts – the participants in the discussion. Artem AbramovPartner and Head of Shale Research, Rystad Energy (Artem Abramov, Partner and Head of Shale Research, Rystad Energy), in his report noted that “the entire business model of the oil and gas industry has changed dramatically since 2017.”
“The industry has moved to a more sustainable as well as more profitable operating model. This came amid demands from the investor community as well as comments from the media. We are now in a situation where we have to look for a way out of the global energy crisis. The United States is still considered one of the potential sources of supply Hydrocarbon to other countries.Historically, we have seen a gradual recovery of the industry since the end of 2020, but we are still quite far from the level of production we had before COVID-19, in late 2019 and early 2020. If you look at different forecasts, most agree People agree that the recovery will continue in the next two or three years,” Artem Abramov described the situation. He also stressed that from the point of view of the global market in the United States “not high oil prices, but high gas prices.”
Raoul LeBlancVice President of Energy, S&P Global Commodity Insights (Raoul LeBlanc, Vice President Energy, S&P Global Commodity Insights), focused his presentation on investment policy in the country’s oil and gas industry, highlighting the significant decline in industry profitability that has occurred since the mid-1970s. .
Energy systems are our giant assets. When we talk about climate change policy, don’t think of simple solutions like “Oh, we’re just going to make public transportation.” The United States has long invested tens of trillions of dollars in the construction of the Makani Road. The American economy depends on the car. Because of this, you can move in, buy a house here, instead of a house 30 miles away, and you’ll save hundreds of thousands of dollars,” Raoul LeBlanc explained how complex the transition to green energy can be.
In disagreement with him and the other participants in the painting, amy myers dry, Managing Director, Climate Policy Lab, Tufts University (Amy Myers Jaffe, Managing Director, Climate Policy Lab, Tufts University), known for her articles on implementing solutions and technologies that replace hydrocarbon production. She highlighted the market inertia and individual companies in the transition to electric vehicles, citing as an example the decision of a group of electric battery makers, including Tesla, to provide California with additional sources of electricity.
the report Toby RicePresident and CEO of EQT (Toby Rice, President and CEO, EQT), a leading developer and production of liquefied natural gas (LNG).
“The overriding goal for me has always been to make an impact on the world. I started looking for different ways we can do that. The more people consume energy, the better their quality of life will be. Simply put, the more people use energy, the longer they live. So if you want to make an impact. In this world, find a way to give people access to cheap, clean and reliable energy. So, we found the largest gas field in the world in the Appalachian Mountains,” Toby Rice said of his project.
Emissions from burning hydrocarbons around the world continue to rise. The United States has done amazing things. Over the past 15 years, we have reduced emissions several times. But over the same time period, global hydrocarbon emissions have increased by more than 4 billion tons. The largest source of emissions in the world is the burning of coal – more than 45%. Our project is to build pipelines to transport LNG to ports on the east coast of the United States, in order to transport it and sell it to countries in the world (China, India, Southeast Asian countries) that continue to use coal. Explained by Toby Rice.
His project, in fact, is something of a “transformation”, for the period between hydrocarbon and “green” energy. Toby Rice promises the selling price of LNG in Europe is no more than $ 25 per cubic meter, despite the fact that the real price, according to him, may be $ 9. He sees two achievements in this simultaneously: the complete energy security of the United States and the introduction of environmentally “harmless” LNG technologies almost worldwide, instead of the use of coal and oil products.
Betty JiangESG Researcher, Credit Suisse (Ceres Betty Jiang, Head of US ESG Research, Credit Suisse), Tracy CameronCorporate Climate Manager, (Tracy Cameron, Director, Corporate Climate Engagement, Ceres) and Ben RatnerCEO of Sustainable Development, JPMorgan Chase (Ben Ratner, CEO, Sustainability, JPMorgan Chase) reported to investment firms on compliance with “climate” and other environmental requirements of recent business ventures submitted by companies in search of free capital for development. The requirement of “environmental sustainability” has become mandatory when attracting investments in energy projects.