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Houses passes bill to protect domestic oil production, protect Iñupiat community

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Indigenous communities are advocating for economic development projects in the North Slope, explaining that more than 95% of their tax base comes from resource development infrastructure.

The U.S. House passed another a bill to advance domestic energy production, this time in response to cries for help from an indigenous community living in the Alaska North Slope.

The bill’s cosponsor, a Democrat from Alaska, did not vote for her own bill. It passed with the support of five Democrats, including two from Texas who are strong supporters of the U.S. oil and natural gas industry.

The U.S. House has advanced several bills and resolutions to support domestic U.S. oil and natural gas production, supported by Texas Democrats. They’ve done so after the Biden administration has taken more than 200 actions against the industry, The Center Square reported.

One includes the Department of the Interior restricting development on over 50% of the Arctic National Wildlife Refuge (ANWR), directly impacting the Iñupiat North Slope community.

The Alaska North Slope region includes a part of ANWR and National Petroleum Reserve-Alaska (NPRA). Both are home to the indigenous Iñupiat community who maintain that the Biden administration is trying to “silence indigenous voices in the Arctic.”

The plan to halt North Slope production was done through a federal agency rule change, a tactic the administration has used to change federal law bypassing Congress. The rule cancels seven oil and gas leases issued by the Trump administration in the name of “climate change.” Interior Secretary Deb Haaland said canceling the leases was “based on the best available science and in recognition of the Indigenous Knowledge of the original stewards of this area, to safeguard our public lands for future generations.”

The indigenous community strongly disagrees, saying they weren’t consulted before, during or after the rule change.

Nagruk Harcharek, president of the Voice of Arctic Iñupiat, a nonprofit that represents a collective elected Iñupiaq leadership, says the administration’s mandate “to ‘protect’ 13 million acres of our ancestral homelands was made without fulfilling legal consultative obligations to our regional tribal governments, without engaging our communities about the decision’s impact, and with an incomplete economic analysis that undercuts North Slope communities.”

He argues the administration has overlooked “the legitimate concerns of elected Indigenous leaders from Alaska’s North Slope. This is a continuation of the onslaught of being blindsided by the federal government about unilateral decisions affecting our homelands.”

Restricting NPR-A oil production is “yet another blow to our right to self-determination in our ancestral homelands, which we have stewarded for over 10,000 years. Not a single organization or elected leader on the North Slope, which fully encompasses the NPR-A, supports this proposed rule,” he said, adding that they asked for it to be rescinded.

In response, U.S. Reps. Mary Sattler Peltola, D-Alaska, and Pete Stauber, R-Minn., introduced HR 6285, “Alaska’s Right to Produce Act.” The U.S. House Committee on Natural Resources Subcommittee on Energy and Natural Resources held a hearing on the issue; members of the Iñupiat Community of the Arctic Slope and the Kaktovik Iñupiat Corporation testified.

Kaktovik Iñupiat Corporation president Charles Lampe said they “refuse to become conservation refugees on our own homelands and unapologetically stand behind the Alaska’s Right to Produce Act.”

The Kaktovik is the only community located in the ANWR. The North Slope Iñupiat have stewarded their ancestral homelands for thousands of years, predating the creation of the U.S. federal government, the Interior Department and the state of Alaska, they argue.

The indigenous communities are advocating for economic development projects in the North Slope, explaining that more than 95% of their tax base comes from resource development infrastructure. Tax revenue funds public school education, health clinics, water and sewage systems, wildlife management and research and other services that otherwise would not exist, they argue. Eliminating their tax base, will directly impact their lives and jeopardize their long-term economic security, they argue.

The House passed Alaska’s Right to Produce Act on Wednesday to reverse the rule change and establish the Coastal Plain oil and gas leasing program. It authorizes and directs federal agencies to administer oil and natural gas leasing on 13 million acres of public land in the North Slope.

The bill passed by a vote of 214-199 without the support of its Democratic cosponsor from Alaska, Peltola, who voted “present.”

Five Democrats voted for it: Sanford D. Bishop, Jr. of Georgia, Henry Cuellar and Vincente Gonzalez of Texas, Jared Golden of Maine and Marie Gluesenkamp Perez of Washington. One Republican voted against it, Rep. Brian Fitzpatrick of Pennsylvania.

After it passed, Harcharek said, “Since the Biden administration announced this decision in September, our voices, which overwhelmingly reject the federal government’s decisions, have been consistently drowned out and ignored. This administration has not followed its well-documented promises to work with Indigenous people when crafting policies affecting their lands and people. We are grateful to Congress for exercising its legislative authority to correct the federal government’s hypocrisy and advance Iñupiaq self-determination in our ancestral homelands.”

Kaktovik Mayor Nathan Gordon, Jr. said the administration “is regulating our homelands in a region they do not understand and without listening to the people who live here.” The new law is “a vital corrective measure that will prevent our community from being isolated and protect our Iñupiaq culture in the long term.”

The bill heads to the Democratic controlled Senate, where it is unlikely to pass.

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Energy

OPEC Delivers Masterful Rebuke To Global Energy Agency Head

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From the Daily Caller News Foundation

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Some readers will remember the infamous May 2021 report from the International Energy Agency (IEA) titled ‘Net Zero by 2050: A Roadmap for the Global Energy Sector.’ The report projected a roadmap for transforming the world’s $300 trillion oil-and-coal-based energy system into one that runs on unreliable, intermittent alternatives like wind and solar.

Most educated observers viewed the report as a piece of propaganda coming from an agency then in the process of transforming itself from a historically reliable source of real data and analysis into just another advocate for the climate alarm narrative. It surprised no one when, just a few years later, Fatih Birol, head of the IEA, publicly boasted about that exact transformation as being the agency’s overt mission now.

One passage in the report’s set of recommendations immediately caught everyone’s eye due to its boldness and transparent illogic. That passage says, “There is no need for investment in new fossil fuel supply in our net zero pathway.”

To reinforce this stunningly absurd notion, Birol, in an interview published by the Guardian upon the study’s release, insisted that, ”If governments are serious about the climate crisis, there can be no new investments in oil, gas and coal, from now – from this year.”

It was a moment when the formerly respected agency shed a great deal of its credibility.

Making matters worse for Birol and IEA, barely a month later a spokesperson for the IEA urged OPEC to “open the spigots” to raise oil production to meet rising global demand that was outstripping the agency’s forecasts as the world recovered from the COVID-19 insanity. Three months after that, Wood MacKenzie, Rystad, and Moody’s had all issued studies directly contradicting IEA’s absurd assessment, and Birol was joining former President Joe Biden in calling for U.S. oil producers to drill more wells and produce more oil.

This sort of ill-advised posturing and self-contradiction is what happens when a scholarly enterprise consciously lurches into advocacy.

At this past week’s CERAWeek conference in Houston, Birol contradicted himself one more time, telling attendees, “I want to make it clear … there would be a need for investment, especially to address the decline in the existing fields. There is a need for oil and gas upstream investments, full stop.”

This latest impulse to respond to the next new thing surely surprised no one. But it was a bridge too far for officials at OPEC to sit by and absorb silently. In a March 13 statement posted on the OPEC website, the cartel reviewed Birol’s and IEA’s recent history of inconsistency and urged Birol to take a step back and consider the impacts it has had and will continue to have on investments for the future.

“Aside from the risk of whiplash that such severe yo-yoing between positions could cause, a serious point needs to be stressed,” OPEC writes. “The world needs unambiguous clarity on the realities of the future of supply and demand. Agencies that recognize the responsibility that comes from offering analysis of the long-term perspectives of the industry should not be shifting positions or mixing messages and narratives every couple of years on this matter, particularly ones that were founded to ensure the security of oil supplies.”

Oof. Blunt, but true. It is a dressing down that is well-deserved and long overdue.

Does Birol’s latest shift signal a recognition that the energy transition for which it has advocated has failed? It’s hard to know.

Regardless, once an agency like IEA makes a public decision to transform itself away from sterile analysis into the realm of advocacy, going back will be hard. Aside from the loss of credibility, which has only increased as Birol has lurched from one position to another and back again, such a transformation completely shifts the organization’s culture. Going back now will require time and a great deal of organizational pain.

Here, another obvious question arises: Is Fatih Birol the right person for this job? It is a question that should have arisen before the loss of so much credibility and trust. For the 32 member countries who subscribe to the agency and pay its bills, there is no time like the present to determine the answer.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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Next federal government should close widening gap between Canadian and U.S. energy policy

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From the Fraser Institute

By Kenneth P. Green

After accounting for backup, energy storage and associated indirect costs—estimated solar power costs skyrocket from US$36 per megawatt hour (MWh) to as high as US$1,548, and wind generation costs increase from US$40 to up to US$504 per MWh.

At a recent energy conference in Houston, U.S. Energy Secretary Chris Wright said the Trump administration will end the Biden administration’s “irrational, quasi-religious policies on climate change that imposed endless sacrifices on our citizens.” He added that “Natural gas is responsible for 43 per cent of U.S. electricity production,” and beyond the obvious scale and cost problems, there’s “simply no physical way that wind, solar and batteries could replace the myriad uses of natural gas.”

In other words, as a federal election looms, once again the United States is diverging from Canada when it comes to energy policy.

Indeed, wind power is particularly unattractive to Wright because of its “incredibly high prices,” “incredibly huge investment” and “large footprint on the local communities,” which make it unattractive to people living nearby. Globally, Wright observes, “Natural gas currently supplies 25 per cent of raw energy globally, before it is converted into electricity or some other use. Wind and solar only supply about 3 per cent.”

And he’s right. Renewables are likely unable, physically or economically, to replace natural gas power production to meet current or future needs for affordable, abundant and reliable energy.

In a recent study published by the Fraser Institute, for example, we observed that meeting Canada’s predicted electricity demand through 2050 using only wind power (with natural gas discouraged under current Canadian climate policies) would require the construction of approximately 575 wind-power installations, each the size of Quebec’s Seigneurie de Beaupré wind farm, over 25 years. However, with a construction timeline of two years per project, this would equate to 1,150 construction years. This would also require more than one million hectares of land—an area nearly 14.5 times the size of Calgary.

Solar power did not fare much better. According to the study, to meet Canada’s predicted electricity demand through 2050 with solar-power generation would require the construction of 840 solar-power generation stations the size of Alberta’s Travers Solar Project. At a two-year construction time per facility, this adds up to 1,680 construction years to accomplish.

And at what cost? While proponents often claim that wind and solar sources are cheaper than fossil fuels, they ignore the costs of maintaining backup power to counter the unreliability of wind and solar power generation. A recent study published in Energy, a peer-reviewed energy and engineering journal, found that—after accounting for backup, energy storage and associated indirect costs—estimated solar power costs skyrocket from US$36 per megawatt hour (MWh) to as high as US$1,548, and wind generation costs increase from US$40 to up to US$504 per MWh.

The outlook for Canada’s switch to renewables is also dire. TD Bank estimated that replacing existing gas generators with renewables (such as solar and wind) in Ontario could increase average electricity costs by 20 per cent by 2035 (compared to 2021 costs). In Alberta, electricity prices would increase by up to 66 per cent by 2035 compared to a scenario without changes.

Under Canada’s current greenhouse gas (GHG) regulatory regime, natural gas is heavily disfavoured as a potential fuel for electricity production. The Trudeau government’s Clean Electricity Regulations (CER) would begin curtailing the use of natural gas beginning in 2035, leading largely to a cessation of natural gas power generation by 2050. Under CER and Ottawa’s “net-zero 2050” GHG emission framework, Canada will be wedded to a quixotic mission to displace affordable reliable natural gas power-generation with expensive unreliable renewables that are likely unable to meet expected future electricity demand.

With a federal election looming, Canada’s policymakers should pay attention to new U.S. energy policy on natural gas, and pull back from our headlong rush into renewable power. To avoid calamity, the next federal government should scrap the Trudeau-era CER and reconsider the entire “net-zero 2050” agenda.

Kenneth P. Green

Senior Fellow, Fraser Institute
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