CERAWeek: Secretary Granholm outlines strategy for energy transition/security
U.S. Energy Secretary Jennifer Granholm discussed a strategy to expedite the energy transition and ensure global energy security at the CERAWeek by S&P Global energy conference in Houston on Wednesday, March 9. “We could not be having this conversation at a more intense, troubling, shocking time in world history, with enormous consequences the war in Ukraine is having on the future of energy,” Granholm stated. “Let’s cut to the chase and discuss where the U.S. stands as a part of the global energy sector.”
“First,” continued Granholm, “the U.S. will ban Russian oil imports to avoid financing Vladimir Putin’s war. Bravo to BP, Exxon, Shell and others in the private sector, who are withdrawing from Russian operations. Putin’s actions have sent the oil market reeling. The impact of $107/bbl oil and $4.25/gal for gasoline severely impacts all U.S. citizens. We are on a war footing—an emergency and we have to responsibly increase short-term supply to stabilize the market and to minimize harm to American families. That means more releases from the U.S. Strategic Petroleum Reserve, in addition to immediately increasing supply.”
Energy transition. The shortage caused by the war in Ukraine is being exacerbated by underinvestment and the impact of dealing with climate change. The clean energy transition isn’t just coming; it’s here. “Your investors are demanding climate action, and 70% of voting Americans support the clean energy transition,” said Grandholm. And despite President Biden’s energy policies, the U.S. is actually at record levels of natural gas and LNG production, and experts expect record levels of oil output next year.
In a surprising change of position, Granholm stated, “we need U.S. oil and gas production to rise to meet current demand. Also, I want to tell you that the Department of Energy, and the entire Biden administration, is ready to work with the oil and gas sector to seize the opportunity of clean energy and to deploy clean technologies as fast as possible. We are serious about decarbonizing while providing reliable energy that doesn’t depend on foreign adversaries.”
“But we need the industry to diversify its energy portfolio to add clean fuels and technologies,” explained Granholm. “This will allow companies to reap the rewards of a clean energy market that will exceed $23 trillion by the end of the decade. Whether it’s clean hydrogen, CCUS, offshore wind or geothermal, we are ready to partner with the private sector through the $62 billion that Congress just provided us in the Bipartisan Infrastructure Law. Most of that funding is going out through competitive grants, and we’re eager to receive your innovative ideas. I’m here to extend a hand of partnership, because we’ll only be able to meet these challenges of oil and gas supply and climate change by working together.”
Strategic partnership. In wrapping up her remarks, Granholm said, “the U.S. government has always partnered with energy producers in times of need. For 120 years, the oil and gas industry has powered our nation and gotten us where we are today. We are eternally grateful for that. And we want you to power this country for the next 100 years with zero-carbon technologies. It’s often hard to see history in the making. But we’re on the cusp of the most important transition human society has ever seen. I hope we’ll look back at 2022 as the year the world took giant steps to improve energy security and tackle climate change. To do that we need to work together.”
