Energy

• "Royal Dutch Shell will

announce a major
restructuring by the end of
the year as the energy
company prepares to
accelerate its shift towards
low-carbon, CEO Ben van
Beurden told employees," 
Reuters reports.
Shell has begun a phased exit of the
Energy Transfer Lake Charles LNG
project, citing current market conditions.
Coronavirus hinders the LNG export
boom • After the U.S. exported a record
amount of liquefied natural gas in
late March, the coronavirus
pandemic — paired with warm
weather — cut that amount by
more than half in June, according
to IHS Markit data.
• Economically, it's contributing to
job losses and project delays in the
oil-and-gas industry, which is now a
significant part of the economy.
•  It will be telling to what degree this
downturn compels some oil-and-gas
companies, like Shell and other
European firms, that are looking to
evolve into broader energy producers
to lessen their investment in natural
gas in favor of renewable energy.
 Shale's long and uncertain road back
• The once-booming shale patch may never
achieve its former output, and if it does,
it'll be a reshaped industry as some
financially weaker players face insolvency
and potential acquisition.
• 39% of the executives say it will be at least
2022, while another 16% say it won't ever
happen.
• Output from shale wells declines very fast, so
the absence of lots of new drilling shows why
regaining the previous nationwide production
peak of almost 13 million barrels per day is
such a heavy lift.
• The crude oil price recovery has gone into
reverse over the last week amid sobering
news on the spread of COVID-19.

Prices this morning (June 25) for the U.S. benchmark WTI are $37.24, a retreat from the $40-per-barrel range earlier
in the month that has marked the first return to $40 since early March.
 Wells Shutting – Oil and Gas Jobs Lost

• LOGA surveyed its 450 members last week to determine the economic
impact of both events. It found as many as 16,800 of the 33,650 oil and
gas wells operating in Louisiana could be shut in.
• That could cause companies to reduce as much as 70% of their workforce
in the state over the next three months, Briggs said. Those 23,000 jobs
generate $2.2 billion in earnings annually.
• “The crisis facing the energy industry is not going to go away once the
shelter at home order is lifted,” Briggs said. “The ripple effect of the
industry struggling will be felt statewide.”
• He notes that low oil price could knock out between $330 million and
$400 million from the state budget.
 Transitioning Energy Sector to Clean
Energy
• Doubling annual transition investments to USD 2 trillion 2021-2023
would boost global GDP by 1% - creating additional 5.5 million
transition-related jobs in three years.
• Every million USD invested in renewables creates three times more
jobs than in fossil fuels.
• A bill now in the Maryland state legislature, called the Climate
Solutions Act of 2020, requires that all new buildings with more than
20,000 square feet of roof space install solar panels, but it’s unclear
whether it will advance, as many state legislatures are focusing on
pandemic-related measures.
The Big Elephant in the Room is Energy
Storage
• The three issues we need to address:
1. Building Energy Efficiency
2. Energy Storage and,
3. Energy Technology.
Software Defined Electricity
Driving the news: 
• "[Y]ounger Republicans give more priority to alternative energy development — and
are less supportive of expanding fossil fuel sources — than older Republicans," they
write.
• 49% of Republicans who are millennials or younger say the federal government is
doing too little to reduce the effects of climate change.
• That's compared to 38% of Republicans in Generation X and 25% of Republicans who
are baby boomers and older.
• The poll also shows generational divides among Republicans on conservation and
wildlife protection.
• The intrigue: "Among Democrats, there are hardly any gaps in views on these
questions by generation or gender," Pew analysts note in the memo alongside the
data.
 Money would Ease $14B Backlog,
Construction Reboot Economy

Construction

History tells us that buildings play a central role in the spread of disease. From measles to SARS to influenza and the common
cold, the scientific literature is full of examples. But, as much as buildings can spread disease, if operated smartly, they can
also help us fight against it. Amidst the chaos, one thing is clear: We will all go back to work with new expectations about the
buildings where we live, learn, work, and play.
The question on the mind of every task force member, chair and co-chair and organizational leader is this: When the time
comes, how do I re-populate my buildings and restart my business?
 Recommendation: Smart Buildings

Healthy Buildings Harvard Business School Incubator

• Focus on improving these 9 Foundations of a • These were distilled from 40 years of scientific
Healthy Building:   evidence at Harvard’s Healthy Buildings lab, and
improving them will serve as a long term preventative
• 1. Ventilation   measure.
• 2. Air quality   • studies and financial simulations have found that the
• 3. Thermal health   efforts you put in to creating healthy buildings will pay
back in multiples. The benefits of higher ventilation
• 4. Moisture   alone are estimated to be between $6,500 and $7,500
• 5. Dusts & pests   per person per year. Researchers at Lawrence Berkeley
National Laboratory have estimated that improving
• 6. Safety & Security   indoor air quality in offices could add as much as $20
• 7. Water quality   billion annually to the U.S. economy. This new calculus
should inspire a new generation of highly justifiable
• 8. Noise   investment in creating and operating a healthy
• 9. Lighting and views   building.
https://www.amazon.com/Healthy-Buildings-Indoor-Performan
ce-Productivity/dp/0674237978
 1 Big Thing: The Persistent Racial Disparities in Energy Expenses
• Black renters and homeowners face substantially higher residential
energy costs than white residents, and these persistent differences
are present almost throughout the income scale, a 
new working paper shows.
• Why it matters: The research "contributes to a broad set of
evidence that Black Americans bear a disproportionate burden of
the current energy system" evident in both pollution exposure and
cost, writes Eva Lyubich, a UC Berkeley doctoral candidate in
economics.
• By the numbers: "Energy expenditures for both groups are
decreasing between 2010–2017, and the conditional gap in annual
expenditures decreases by about $150 for the average household,
but continues to be economically significant at about $200 for
renters and $310 for homeowners in 2017," the paper finds.
• What they're saying: UC Berkeley economics professor Maximilian
Auffhammer writes in a blog post about the findings...
• "What we learned from Eva here is that so long as this
energy cost inequity persists, any future carbon/energy
tax, or other policy that raises energy costs, is likely to
increase energy expenditures more for Black households
— especially poor ones — than for white households in
the same income bin. And that’s just wrong."

https://www.axios.com/newsletters/axios-generate-085bb4b0-4516-4fd0-a030-f0b28fd90e72.html?utm_source=newsletter&u
tm_medium=email&utm_campaign=newsletter_axiosgenerate&stream=top
HBCUs Work Together to Find the Optimal
Energy Solution
Tulane Energy Institute Has the Tools
• Working together with the Tulane
Energy Institute, we have studied how
the electric companies hedge oil and
gas and other commodities prices,
which have resulted in terrific gains,
even when oil and gas prices are on
the decline. This study could be used
for the State's purposes to help
protect our budget -- so we do have
funds for education and social
programs.
Recommendation: Risk Management
for the Oil and Gas Severance Taxes
• One final thought, Louisiana should
strongly consider passing legislation
to permit an appointed body
provide risk management services,
particularly, for such industries as
oil & gas, agriculture, and
hospitality, etc, as we can put
simple trades in place to protect the
downside risk from depleting our
budget.
Recommendation: Implement Risk Management/Hedging Strategy

• From Me to Everyone: 11:43 AM

• My name is Scott Podvin, member of a group of finance entrepreneurs and Director of the Tulane Energy
Management Association on LinkedIn.
• We met with the Governor, barry.dusse@la.gov; barbara.goodson@la.gov; doacommissioner@la.gov and
others last year in March to discuss the Budget impact of the decline in the price of Oil. We are providing
input to the Governor's Resiliency Task Force. To make our economy more resilient, we seek to understand
the impact of the Oil price collapse and discuss ways to mitigate it's impact
• We are interested in confirming the following:
• What was the price of oil used to forecast revenues? We estimate it was around $65 per barrel.
• What is the impact of every dollar under this budgeted amount? We estimate it is around $12MM per dollar.
• What is the budget deficit if the price is actually $35 per barrel? We estimate that it will be about $ $250MM
• Where will budget cuts come from? We estimate that it will be education, healthcare and social services.
• Data suggests that Louisiana businesses received $5B in PPP loan. How much was received by Oil and Gas
companies? How much by Agricultural businesses?
Financial Services, Insurance & Real Estate
Two Needs: 1. Deliver Affordable 2. Quell The Eviction
Housing Tsunami

• From DON PIERSON to Everyone:

11:08 AM
• https://www.axios.com/eviction-
crisis-coronavirus-351bb693-a04
f-4ea1-a27d-dceb5163af14.html
?utm_source=newsletter&utm_
medium=email&utm_campaign=
newsletter_axiosam&stream=to
p
HORRIFIC CONFLUENCE OF EVENTS:
Eviction Moratoria and Exhaustion of Pandemic Unemployment
Subsidies

• Most states paused evictions when the coronavirus hit — but those holds
are expiring at about the same time that more generous unemployment
benefits are set to dry up.
• Why it matters: The one-two punch could easily exacerbate the housing
crisis for Americans already bearing the worst of COVID-19's effects.
• One fifth of adults polled in May said they had slight or no confidence they
would be able to pay their rent or mortgage due in June, according to a
weekly Census survey measuring COVID-19’s impact on Americans.
• An Urban Institute analysis of Census data found nearly 25% of black
renters deferred or did not pay their rent last month, compared with 14% of
white renters.
The big picture
• The pandemic — which forced an economic collapse — is adding new
burdens on top of the country's longstanding housing problems.
• "There was a supply and affordability problem before, and the
opportunity for it to get a lot worse presents itself, unless there's really
good support coming from the federal, state and local level," Paula
Cino of the National Multifamily Housing Council, a trade group for
the apartment industry, tells Axios.
What they're saying:
• The result could be even higher rates of homelessness — leaving more
people out on the streets in the midst of a global pandemic.
• "Prior to the pandemic, our homeless shelter system in the U.S. was
stretched thin, and also not set up for social distancing," Alieza
Durana, a policy analyst at Princeton University's Eviction Lab, which
is tracking states' measures, tells Axios.
• "The run-of-the-mill devastation that normally occurs in the wake of
an eviction is further amplified by the conditions of this pandemic and
economic crisis itself."
Catch up quick:
• As with other measures that were passed in haste when the pandemic
hit, cities and states enacted a patchwork of eviction halts with varying
lengths and caveats.
• Moratoria in places like Texas have lapsed.
• Others are set to expire in coming days and weeks, including
Louisiana and Pennsylvania, while New York State and other places
have announced extensions.
• At the federal level, the coronavirus stimulus package 
barred federally subsidized housing from evicting residents until July
25.
Between the lines: 
• An eviction moratorium is not a rent freeze — which means that
overdue rent is still accumulating for tenants who have been unable to
pay it. Once a moratorium expires and landlords can get court approval
to take or resume eviction action, residents could be months in the hole.
• Even more troubling: Some of the expirations collide with the stoppage
of more generous unemployment benefits that have helped keep
unemployed Americans afloat.
• Congress is still debating whether to extend enhanced unemployment
benefits beyond July 31.
• It is time to build affordable housing