WE’RE BACK: We’re pleased to announce some major updates to Daily on Energy.
For the past few weeks, we’ve been on hiatus and sending out daily link roundups rather than a full newsletter. Starting today, we’ll be bringing you original content and all the latest on the energy beat from two new reporters:
The first is Callie Patteson. Callie started with the Examiner last month and you may have noticed her byline on stories on the site – or perhaps you’ve already spoken to her.
Callie is returning to the Examiner after first working with the outlet in 2020/2021 as an Associate Breaking News editor. She has since worked for the New York Post and freelanced full-time as she completed her joint master’s degree from Aarhus University, Denmark and the University of Amsterdam. Reporting on climate, politics, business, tech, and crime, Callie has been published by Fast Company, Non-Profit Quarterly Magazine, TechTimes, The US Sun, and more. When she’s not working, you can typically find Callie baking, trying a new wine with friends or planning her next ski trip.
The second is Maydeen Merino. Maydeen starts today and is new to the energy and environment beat.
Maydeen previously worked at the National Law Journal as a regulatory reporter, focusing on issues related to antitrust, securities, and the environment. She completed her master’s degree in journalism at Georgetown University and bachelor’s degree in journalism at the University of La Verne. She has also worked at Inside U.S. Trade, where she covered trade policy, and Street Sense Media in D.C.
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Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@maydeenmerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
THE GRID IS NOT PREPARED, EX-REGULATORS WARN: Former top federal energy regulators are warning that the electric grid is not prepared to meet the demand placed on it by the growth of artificial intelligence in work, social, and daily life, Callie reports in a new piece just posted.
The details: Several former FERC commissioners spoke with the Washington Examiner, revealing that as energy demand from AI data centers is expected to rapidly increase, the national grid is unable to handle the growth in its current state.
“Oh gosh no,” said Tony Clark, who served on FERC from 2012 to 2016. “I mean, that amount of load coming online that rapidly would be very, very difficult to serve in the short term.”
The ex-energy heads detailed several strategies the commission can take to secure the grid, including price formation, working with the states, and supporting greater transmission. They also revealed how both Democrats and Republicans will need to make concessions when it comes to utilizing different power sources for the grid.
“At the end of the day, this is an engineering solution, not a political solution, but there’s going to be trade offs,” said Neil Chatterjee, who served on FERC from 2017 to 2021.
Some background: By 2030, data centers are expected to be using upward of 9% of electricity generated on the grid – over double what it consumes now. This strain of AI is expected to hit consumers sooner than later, as grid operators are increasing rates for utility companies at a dramatic pace. PJM Interconnection – the largest regional transmission organization monitoring a multi-state grid in the U.S. – is increasing its costs from $28.92 megawatts per day to $269.92 megawatts per day starting next year – a more than 800% increase.
Read more here.
BP ABANDONING OIL AND GAS PRODUCTION CUTS: Oil and gas giant BP has reportedly dropped its goals for cutting oil and gas output by 2030 as it shifts away from an ambitious clean energy strategy in light of sustained global demand for fossil fuels.
The details: CEO Murray Auchincloss is expected to announce a new energy transition strategy in February, sources told Reuters. As part of its new strategy, BP is expected to completely do away with its goals to cut down on its oil and gas output. Meanwhile, the company is weighing investments in Iraq and the Gulf of Mexico to boost oil and gas production.
Some background: In 2020, BP first announced its plans to shrink its oil and gas output by 40% by 2030. It also pledged to increase its renewable energy capacity to 50 gigawatts. BP later scaled back its energy transition targets in early 2030, cutting its output target to 25%.
Read more here.
HURRICANE MILTON RAPIDLY INTENSIFIES WHILE APPROACHING FLORIDA: Hurricane Milton has surged to a Category 5 storm as millions in central Florida are preparing to be hit by a second, potentially life-threatening hurricane in just weeks.
The details: Milton is expected to make landfall in the Tampa Bay area on Wednesday, sustaining hurricane-strength winds as it moves across the state. The storm has been intensifying at an extreme rate, with wind speeds as high as 160 mph on Monday and gusts even higher.
Communities along the coast may see waters rise as high as 12 feet due to a dangerous storm surge. NOAA has estimated that some areas can expect rainfall amounts of 5-10 inches, with localized totals of up to 15 inches. Swells along the Gulf Coast are expected to cause life-threatening surf and rip currents. The storm is also expected to bring considerable flooding throughout the state, including moderate-to-major river flooding.
As Milton approaches Florida, residents in its path have been urged to evacuate. Local leaders have warned that the storm could be the “most impactful” they’ve ever faced. FEMA asked residents to not delay evacuation if they live in Milton’s path. “Staying could mean risking your life and the lives of those you care about,” the agency said.
Some background: Milton comes less than two weeks after Hurricane Helene made landfall on Florida’s Big Bend region, before heading north and wreaking havoc across Georgia, the Carolinas and Tennessee. While Helene had weakened to a post-tropical cyclone as it moved inland, it caused catastrophic damage, flooding, rainfall, and mudslides particularly in the Appalachian mountains. As of Saturday, at least 227 were declared dead as a result of the storm.
CHEVRON SALE: Oil major Chevron is set to sell some of its oil-sands and shale assets in a $6.5 billion deal with Canadian Natural Resources.
The details: Chevron Canada, a subsidiary of the oil giant, announced the deal Monday, saying it plans to sell 20% interest in the Athabasca Oil Sands project and a 70% interest in the Duvernay shale. Both oil deposits are located in Alberta, Canada.
The all-cash deal has an effective date of Sept. 1, 2024 and is expected to close during the fourth quarter of this year. The deal is still subject to regulatory approvals and closing conditions, the company said. Chevron said that assets being sold contributed to producing 84,000 barrels of oil equivalent a day last year.
Some background: Chevron has said the deal is part of its goals to divest $10-15 billion in assets by 2028. The divestments are expected to help the company “optimize its global energy portfolio.”
SAVING THE DEEP BLUE: Australia has declared the nation plans to protect 52% of its ocean territory – more than any other country in the world.
The details: Tanya Plibersek, Australia’s environment minister, revealed on Monday that the country had finalized an expansion of an Antarctic marine reserve stretching over 300,000 kilometers (186,411 miles), according to the Sydney-Morning Herald.
The marine park is located around the Heard and McDonald Islands, approximately 4,000 kilometers (2,485 miles) south-west of the western city of Perth. Both islands reportedly have active volcanoes. Expanding the conservation area is meant to prevent fishing expansion.
Key Quote: “I’m proud that Australia now protects more ocean than any other country on Earth,” Plibersek said. “It is the biggest contribution to ocean conservation anywhere on the planet this year and follows our tripling of the protected waters around Macquarie Island last year.”
BEAR WITH ME: Nov. 5 isn’t the only notable vote of the season as Alaska’s chunkiest and fluffiest bears go head-to-head in the 10th annual Fat Bear Week.
The annual bracket-style competition – akin to March Madness – pits 12 of the bulkiest bears at the Katmai National Park and Preserve against each other, as fans around the globe vote to name one champion.
Mike Fitz, a former park ranger who founded the competition in 2014, told the New York Times that the contest was started to engage with visitors while celebrating salmon feeding season in the park. For Fitz, the week-long contest “celebrates the success of brown bears and it tells their stories — the challenges and the difficulties they face to get fat and survive.”
The Alaskan park is home to more than 2,200 brown bears that often feed on salmon in the Katmai Brooks Fall and Brooks River. With thousands of salmon flocking to the region, these bears have become known for how much they bulk up before hibernating for winter. Fat Bear Week comes to a close tomorrow.
A LOOK AHEAD: As we gear up for another week, here are some notable events and dates coming up:
- October 7th-10th was the 2024 API Storage Tank Conference. Due to Hurricane Milton, the event has been postponed to October 2025.
- October 7th-8th is the 2024 Maryland Clean Energy Summit, featuring talks from Democratic Maryland Reps. Glenn Ivey and John Sarbanes.
- October 8th is National Hydrogen and Fuel Cell Day.
- October 8th is the start of the Environmental and Energy Study Institute’s Resilient and Healthy Rivers Series looking at challenges facing the Mississippi River. The next event will be held in December.
- October 10th is the 2024 Grid Forum hosted by the American Council on Renewable Energy, which will focus on solutions to secure the ever-straining electrical grid. FERC Commissioner David Rosner will deliver keynote remarks.
RUNDOWN
New York Times There Is No Climate Haven. We All Live in Florida Now.
NPR This climate scientist spent his career warning about extreme rain. Then he lived it
Inside Climate News Veterans of Alaska’s Oil Industry Look to Blaze a Renewable Energy Pathway in the State