OFFICIAL PUBLICATION OF THE UTAH PETROLEUM ASSOCIATION

August 26, 2020

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EIA’s view of the Impacts of COVID-19 on the Energy Industry

The Deputy Administrator, U.S. Energy Information Administration, U.S. Department of Energy, Stephen Nalley, delivered a statement to the Energy and Natural Resources Committee of the U.S. Senate on June 16, 2020. While the assessment of the energy sector continues to evolve and more recent updates can be found in the EIA monthly and weekly update reports, we wanted to share Mr. Nalley’s high level summary of the impacts of COVID-19 on the energy sector.

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Industrial Cybersecurity: A Culture Change

Reliable operational technology (OT) or industrial control systems (ICS) underpin every facet of American lives. Without them, our defenses, our economy, and our national security engine would grind to a halt — especially when so many of these systems are becoming “smart” and integrated. Securing infrastructure requires a culture change that prioritizes cybersecurity at the employee and organizational levels.

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Understanding and Solving R Equals CxVxT

This is the risk equation. The posture of a company’s risk is a product of consequence, vulnerability and threat. Many energy companies use industrial control systems and operational technology (OT). All companies use information technology (IT) — data — in their daily operations. These technologies work across the internet, which brings a heightened vulnerability factor to their risk equation.

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Utah’s 2020 Gubernatorial Race

Election Day in the U.S. is scheduled for Nov. 3, 2020, when voters in Utah will vote for president, select a new governor and make other decisions.
The last Democratic governor in Utah was Scott M. Matheson. Utah’s long string of Republican governors, dating back to January 1985, has lasted 35 years now. It is the second-longest active streak of leadership by one party in the U.S. (South Dakota has first place: Governor Harvey L. Wollman, a Democrat, left office there in 1979.)

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President’s Message: Rikki Hrenko-Browning 2019-2020 Issue 4

Dear UPA members and friends,
We are now more than halfway through the year 2020. For many, myself included, I suspect this is unnerving, but also equal parts a relief as plans and goals we were striving toward have been placed on hold due to the impacts of COVID-19. Time has quickly slipped away as we jolt from one immediate challenge to the next. While disappointed in what the sum of 2020 is likely to bring, I suspect we are also relieved that hopefully the worst is behind us (and I promise I’m not trying to invoke a curse by putting those words down in writing) so that we can reset our targets moving forward.

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Legislative Recap

While the summer months are typically slower for the legislature and those of us actively engaged in government affairs, this summer and the summer of 2019 have been exceptions. The summer of 2019 was spent in public meetings regarding a planned widespread tax overhaul, and engaging on how to expand the state’s tax base without tax pyramiding.

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Upstream Updates

The churn of slow and steady movement through the rulemaking process continues for our producers, both with the Division of Oil, Gas and Mining (DOGM) and the Division of Air Quality (DAQ). There have also been a number of upstream legislative discussions; see the legislative update for details.

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Downstream Updates

COVID-19 has resulted in the lowest U.S. petroleum consumption in history. The U.S. Energy Information Administration (EIA) has charted the previous five-year U.S. consumption range, and then the COVID induced demand drop compared from the beginning of the year, showing bottoming-out demand in March and April. EIA estimates motor gasoline consumption has declined the most, falling 40% nationally (43% in PADD 4 — the rocky mountain region, Utah, Colorado, Idaho, Montana and Wyoming), and is responsible for more than 50% of the total petroleum product demand drop.