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ENERGY NEWS
By Tsvetana Paraskova
US
ENERGY REVIEW
In another eventful month for US energy, President Joe Biden set ambitious emissions reduction targets, a cyber-attack halted operations on a key fuel pipeline, shale producers showed they are keen to keep discipline and return cash to shareholders, and the oil and gas industry became more optimistic about its recovery. New US Climate Plan President Biden, who rejoined the Paris Agreement on his first day in office, set at the end of April a new target for the United States to achieve a 50-52% reduction from 2005 levels in economy-wide net greenhouse gas pollution in 2030. The US aims to reach 100% carbon pollution-free electricity by 2035 and achieve net-zero emissions economy-wide by no later than 2050. The announcement “is part of the President’s focus on building back better in a way that will create millions of good-paying, union jobs, ensure economic competitiveness, advance environmental justice, and improve the health and security of communities across America,” the White House said. These ambitious targets are set to impact the US oil and natural gas industry in the coming years and decades. The American Petroleum Institute (API) said that the goals address only half of the dual challenge to tackle climate change and at the same time ensure the nation’s energy security. “API supports the goals of the Paris Agreement to reduce global emissions and alleviate poverty,” API President and CEO Mike Sommers said in a statement. “The new U.S. nationally determined contribution addresses only half of the dual challenge of reducing the risks of climate change while ensuring affordable, reliable energy for all Americans. With a transparent price on carbon and innovation, we can make measurable climate progress within this decade without hurting America’s middle class, jeopardising U.S. national security, and undermining economic recovery,” Sommers noted. Independent energy research company Rystad Energy, commenting on the plan, said that:
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Colonial Pipeline, the main pipeline carrying petrol and diesel to the US East Coast, shut down on 7 May, following a ransomware attack.
“The climate targets that were recently set by the Biden administration in the US represent a challenging task and require major changes in the country’s energy system that would shake the current fuel mix status quo.” According to Rystad Energy’s model of what it believes is the most achievable pathway to meet these targets, fossil fuel use would have to significantly reduce and spending of US$2.5 trillion in renewable energy projects should be made this decade.
Cyberattack Shuts Down Colonial Fuel Pipeline for Days Colonial Pipeline, the main pipeline carrying petrol and diesel to the US East Coast, shut down on 7 May, following a ransomware attack. The 5,500 miles of pipeline is a significant mode of shipment for transportation fuels for the East Coast, carrying petrol, diesel, heating oil, and jet fuel from Houston, Texas, on the US Gulf Coast up to Linden, New Jersey, and serves several markets along the route through various branch lines. The cyberattack and the halting of the pipeline operations disrupted fuel deliveries to many states on the Eastern Seaboard, created panic buying, and sent the national US average petrol price above $3 per gallon for the first time since 2014.
The most prominent points in Rystad Energy’s roadmap for America meeting the targets include the reduction of US oil consumption by 32% by 2030 compared to estimated 2021 levels of 19 million barrels The US aims to per day (bpd). US natural Colonial Pipeline resumed gas consumption would reach 100% carbon operations five days after also have to decline, by the cyberattack, but fuel 27% by 2030 against pollution-free electricity by shortages in some eastern estimated 2021 levels 2035 and achieve net-zero US states continued for of 30 trillion cubic feet. several more days. On the other hand, the emissions economy-wide share of battery electric The cyberattack highlighted vehicles in new US car by no later than 2050. the importance of the pipeline sales needs to reach 24% in delivering fuel to the US East in 2024 and 74% in 2028. Coast on the one hand, and the Wind and solar capacity increased cyber threats the industry will also have to surge, along faces in the digital age, on the other hand. with battery storage, to meet the 2035 carbon-free grid target, as per Rystad Energy’s model. “The U.S. critical energy infrastructure network is under constant threat of attack from both “The targets set by the Biden Administration state-sponsored and rogue hackers attempting are very ambitious and any suggested plan, to disrupt the supply chain. As attacks become including ours, represents an extremely more sophisticated, companies are tasked with challenging journey. In any scenario, properly training their workforce to recognise renewable energy will be the protagonist and and mitigate potential threats, while partnering flexible power will be needed to handle the with experts at the highest levels of government intermittency as a result,” said Jarand Rystad, to provide guidance on potential unseen chief executive officer at Rystad Energy. vulnerabilities,” said Deidre Kohlrus, Director Government Affairs at the Energy Workforce & “If battery costs decrease fast enough, storage Technology Council. will be preferred against grid upgrades and the battery market could consequently flourish and The cyberattack underscores two big points: become as big as the EV market,” Rystad added. the vital nature of energy infrastructure and
