1. Big Oil’s Big Concerns

At the start of April, oil executives testified before the House Committee on Energy & Commerce, unilaterally denying their role in driving up gas prices across the country.

Darren Woods, CEO of ExxonMobil, even went on the record, stating, “No single company sets the price of oil or gasoline. The market establishes the price based on available supply and the demand for that supply." Now, oil companies have changed their tune.

This week, Clifford Krauss, in the New York Times, unpacked the unwillingness of energy companies to ramp up production, despite widespread global demand. Still scarred by the shock of a sudden demand drop in the early days of the COVID-19 pandemic, oil companies are now hesitant to drill new wells, especially amid geopolitical uncertainty.

A March survey of 141 oil company executives shattered the illusion that companies have carefully crafted. The survey found that 60% of respondents, and their investors, were reluctant to expand our oil supply because it would likely bring down prices and, therefore, profits. Given Europe’s need for more American gas and oil, US fossil fuel companies’ reluctance to increase production could make it tougher on our allies as they try to coordinate a unified response to Vladimir Putin’s aggression in Ukraine.

Read about the vital role that American oil and gas production will have in weaning Europe off Russian energy.

2. The Kremlin Pushes Back

This week, Russian-state-owned energy company Gazprom announced that it would be suspending all fuel exports to Poland and Bulgaria. Both countries have staunchly refused to participate in the Kremlin’s efforts at circumventing international banking sanctions by paying in Rubles and are now feeling the effect of Putin’s temper tantrum.

While Bulgaria and Poland import significant amounts of Russian gas, Bulgaria, more so, decades of tension with Russia have prepared both nations to weather the storm. With Poland’s 26-year Gazprom contract already set to expire at the end of this year, the country has long diversified and bolstered its’ energy supplies. Bulgaria, also ready to end its Gazprom contract this year, is in a slightly more precarious situation but is relying on energy stores and alternative routes.

Vladimir Putin’s attempts at holding Europe hostage underscore the importance of a clean energy transition. Modeling from our Carbon Free Europe initiative shows that both Bulgaria and Poland have the capacity to significantly reduce their reliance on gas overall by 2050 by transitioning to a diverse suite of technologies like solar, onshore and offshore wind, and nuclear energy. However, Russia’s attempts at blackmail will throw a wrench in the nations’ intentions to move from coal to less carbon-intensive gas as an intermediary between clean energy technology.

The United States has the opportunity to support both countries and the whole of Europe as they move to rapidly scale up their clean energy transition through the export of our ideals, standards, and technology.

3. Manchin’s Case for Bipartisanship

Democratic Senator Joe Manchin is attempting to revive a climate and energy bill, reaching across the aisle to build momentum for some form of Congressional action. The bipartisan effort, spearheaded alongside Senator Lisa Murkowski, is emulating Biden’s ongoing “whole-of-government” approach to overcoming the global impact of Russia’s invasion. The bill would likely include overhauls to the federal oil and gas leasing program as a means of bolstering the production of liquified natural gas (LNG), a critical resource to help Europe break its’ reliance on Russian energy.

Wrangling 10 Republican votes, along with the support of the entirety of the Democratic party, could prove to be a challenge for Manchin and Murkowski. But, the effort is nonetheless encouraging, particularly given both Manchin’s and Murkowski’s support of broader clean energy policies like nuclear energy and carbon capture. 

 4. Appropriate Appropriations

When it comes to driving clean energy innovation, the federal government is the best person to have at the wheel. Federal investments have accelerated cutting-edge carbon-free technologies and laid the foundation for an economy-wide clean energy transition.

As Congress considers several appropriations measures for fiscal year 2023, the Third Way Climate and Energy Program has outlined several funding recommendations that will mobilize the entirety of the federal government towards reaching our net-zero emissions goals by 2050.

In our new memo, our experts recommend funding across 12 specific programs and offices within the Department of Energy that will substantially scale up the technology needed to cut carbon emissions, support economic opportunities in every corner of the country, and reinforce America’s global leadership and competitiveness.

Read: Spending Smart: High-Priority Appropriations for Energy Innovation at DOE