The world's biggest gathering of energy industry leaders was held in Houston this week as Russia's invasion of Ukraine delivers an oil price shock to the global economy and embattled executives face growing criticism for the industry's role in climate change.
For forty years, CERAWeek has provided an integrated framework for understanding what’s ahead for global energy markets, geopolitics, and technology, and this year was no exception.
U.S. Secretary of Energy Jennifer Granholm addressed the conference full of energy leaders. "Maybe it’s because a global crisis like what’s happening in Ukraine sharpens the mind, but I’m in a mood to cut to the chase here and tell you what I really think about where we are at as a country and as a part of the energy sector.
She went on to describe the images of Ukrainian bravery and determination and said it should inspire all of us to do our part. "It’s why President Biden announced that the U.S. will ban Russian oil imports—we will not be financing Vladimir Putin’s war," Granholm said. "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."
Granholm said we have to responsibly increase short-term supply where we can right now to stabilize the market and to minimize harm to American families.
"That means releases from strategic reserves across the world, like we’ve done. And that means you producing more right now, where and if you can," she said.
And at the same time, the war in Ukraine isn’t the only thing sending shock waves through the energy sector, said Granholm, adding that we've also got to reckon with the impact of climate change—and the clean energy transition that isn’t just coming; it’s here.
"Your investors are demanding climate action," said Granholm. "And your customers are demanding climate action—seventy percent of voting Americans support the clean energy transition.
The secretary then encouraged the audience to not fight internal battles.
"People are arguing that if a pipeline that wouldn’t have even been in operation by now were still under construction, the situation with today’s oil prices would somehow be different," said Granholm. "Or that President Biden’s policies have decreased production, when we are actually at record levels of natural gas and LNG, and will be at record levels of oil production by next year. When there are over 9,000 onshore drilling permits that are sitting unused. We all know that’s the same old DC BS," she added.
"I’m here to tell you that the Department of Energy, and the entire Biden administration, is ready to work with you to seize the opportunity of clean energy," said Granholm.
The secretary called on the energy audience to deploy clean technologies as fast as possible, acknowledging that there is no illusion that every American will get an EV or a heat pump tomorrow or next month or next year.
"It is a transition...and we’re pragmatic about what it means. We know it won’t happen overnight," she said. "And we’re serious about decarbonizing while providing reliable energy that doesn’t depend on foreign adversaries."
Granholm said that Putin’s actions and the resolve of the Ukrainian people give her even more determination to get this energy transition right.
"The truth is, the U.S. government has always partnered with the energy industry in times of need. For over a hundred years, the oil and gas industry has powered our nation and gotten us where we are today. We are eternally grateful for that," she said. "And we want you to power this country for the next hundred years with zero-carbon technologies."
