HOUSTON — The big, glitzy CERAWeek by S&P Global conference had a split-screen effect: optimism about low-carbon transition and fear about what could hinder progress, Ben writes.
The big picture: The sprawling weeklong event resists a single narrative, but high-level themes emerged.
Permitting angst is everywhere — for different reasons.
- Biden officials want faster permitting to ensure climate law-backed projects don’t stall and there’s enough transmission to carry renewable power.
- There’s a clear sense that even with stepped-up executive efforts, major legislation is needed, and Biden’s lieutenants made that case here.
- The oil and gas industry wants faster approvals for gas pipelines and more. Legislation — which must back low-carbon and fossil projects alike to have legs — faces highly uncertain prospects.
- Energy Secretary Jennifer Granholm tells me discussions on reviving Sen. Joe Manchin’s bill are “very active.”
The new climate law is a BFD. Billions of dollars worth of incentives for hydrogen and other fuels are expected to bring new investment to create scale, a range of executives said.
- “The level of support is astronomical,” Andy Marsh, CEO of hydrogen and fuel cell firm Plug Power, said on a panel. “If we are not going to be successful this time, we are never going to be successful.”
Everyone’s watching Alaska from Texas. The looming Biden team decision on ConocoPhillips’ big Willow project has much wider significance for industry.
- They see it as a test of White House support for domestic production — “whether or not this administration is going to put policy behind the rhetoric they used at CERAWeek,” American Petroleum Institute head Mike Sommers tells me.
- “Our member companies that don’t have anything to do with Willow expressed that to administration officials [who] attended,” he says, describing private discussions here.
Energy transition dominates — and lacks definition. ICYMI, Andrew had a great piece yesterday about how oil executives talking up their low-carbon efforts here still see a long-term role for fossil fuels.
The energy industry is increasingly cross-pollinated. Traditional boundaries are fraying as large companies diversify (something Politico nicely explored).
- “I do think that today we view ourselves as one energy industry, not a clean energy industry and a dirty energy industry,” said Jigar Shah, who heads DOE’s clean tech loan programs office, in remarks Thursday.
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