10 Minute Text

“This is the moment to diversify”: A top Energy Department official on what he wants to see from oil and gas executives

Mar 8, 2023, 10:40am EST

Jigar Shah, director of the Department of Energy’s Loan Programs Office, texts from the CERAWeek conference in Houston, Texas, about why renewable energy conferences are more chill and what else oil and gas executives should do to lower their carbon footprint.

Tim McDonnell said:

Hi Jigar, how is the conference treating you so far? What are you up to now? Mind sending a selfie?

Jigar Shah said:

It has been so amazing, everyone is optimistic and is focused on opportunity and growth.

Jigar Shah said:

I am just headed for dinner!

Tim McDonnell said:

That’s great. Enjoy it! Between oil and gas conferences and renewables conferences, which one is more fun or has better amenities? 😂

Jigar Shah said:

Honestly renewable energy conferences were bare for a while but now they have 35,000 folks going and they are all tricked out.

Jigar Shah said:

More importantly they are really laid back compared to oil and gas conferences where everyone wears a tie.

Tim McDonnell said:

Haha ok dang, CERA Week has some competition now.

Tim McDonnell said:

How are you feeling about the energy transition plans you’re hearing from oil and gas execs here?

Jigar Shah said:

Oil and gas will remain a part of our energy mix in the years ahead. Still, the signs are clear: the sector is going through massive changes. And the CEOs I talked to want to have part of their company be leaders of the energy transition.

Tim McDonnell said:

What’s your view on this idea I’ve been hearing a lot that “hydrocarbons aren’t the problem, it’s emissions?”

Jigar Shah said:

Oil and gas companies should ensure this is a managed transition as the role of fossil fuels in our energy mix shift. Clearly emissions are what we measure but we have to be honest about where they come from.

Tim McDonnell said:

What else can LPO do to help in that process?

Jigar Shah said:

The Loan Program Office (LPO), in partnership with DOE’s Office of Fossil Energy and Carbon Management (FECM), offers access to capital to build out common-carrier carbon dioxide (CO2) transport projects under the Carbon Dioxide Transportation Infrastructure Finance and Innovation Act which got through the Bipartisan Infra Law.

Tim McDonnell said:

Do you have a lot of execs looking to take advantage of that funding?

Jigar Shah said:

Mixed. I tell them there has never been a better opportunity to invest in the future. This is the moment to diversify and help us bring down the costs of new technologies that the current energy industry is naturally positioned to help build at scale—including carbon management. But we got growth companies already all-in to do it. So it will be a race.

Tim McDonnell said:

OK great, thanks so much Jigar! Enjoy dinner.

Jigar Shah said:

Have a good night!