Why is it so hard to build big energy projects? The barriers that obstruct new infrastructure development, and how to get past them

Why is it so hard to build big energy projects? The barriers that obstruct new infrastructure development, and how to get past them

Whoever you ask, you are likely find broad agreement that the world needs more energy infrastructure. Whether you are worried about ensuring secure supplies, powering new data centres, or cutting greenhouse gas emissions, the answer is most often going to be investing in new assets: power plants, transmission lines, factories, pipelines, ports… the list goes on. But all too often, getting big projects built is painfully slow, expensive and unpredictable. It is particularly difficult in high-income countries, and perhaps in the US most of all. For this episode, host Ed Crooks and regular guest Dr. Melissa Lott are joined by Craig Albert, the President and COO of Bechtel, one of the world’s biggest engineering and construction companies. Together, they discuss the critical problems that get in the way of infrastructure projects, and what businesses and governments can do to get past them. First off, Craig acknowledges that the problems in the system all reflect good intentions. Communities, safety, the environment and local impacts all deserve scrutiny. The problem, especially in the US, is that the process used to take all those factors into account when approving large projects is slow, fragmented and uncertain. The result is that it pushes up costs, delays revenue, creates financing risk, and ultimately slows progress towards energy security and a lower-carbon energy system. The conversation digs into the role of trust and certainty in decision-making. Once a project has been assessed and approved, how do you stop it from being endlessly revisited? Craig argues that some aspects of the US system create particular difficulties. Other developed countries have shown that infrastructure projects can be brought in on time and on budget. Craig cites the Western Sydney International Airport project, which moved from site selection to full construction approval in just two and a half years. In the US, he says, the same process could easily take eight to ten. The discussion then turns to nuclear power, and the lessons from the two new AP1000 reactors built at the Vogtle plant in Georgia. Craig calls Southern Company and Georgia Power “national heroes” for taking on the first greenfield US nuclear project in decades, but he is candid about what went wrong. His biggest takeaway is the importance of deeply integrated EPC: engineering, procurement and construction working as one system from the start. He also stresses the need for earlier investment in workforce training, stronger supply-chain visibility and better sequencing to reduce costly reworks. From there, Ed and Melissa widen the lens to look at other energy sectors. Craig explains why the US LNG industry offers a more hopeful model of projects delivered without huge cost overruns and multi-year delays. In that industry the construction companies are building repeated, standardised projects, with integrated delivery, and a relentless focus on finding and fixing bottlenecks. Bechtel has delivered dozens of LNG trains, he says, all on schedule and within budget, while still improving speed from one project to the next. Similar lessons apply in solar, where scale, automation and better execution are helping push installation rates sharply higher. But policy and project design are only part of the story. Craig argues that workforce is the other great constraint. If every new power plant, grid upgrade, semiconductor fab and airport ultimately depends on skilled craft labour, then the US has to start treating those jobs with the respect they deserve. Restoring the status of skilled trades is not just a cultural issue. It is essential to the country’s ability to build, Craig says.  The closing message is both practical and cautionary: if the US wants more energy security, more electricity for AI and data centres, and faster progress on decarbonisation, it has to get much better at building. That means fixing permitting, reducing project uncertainty, investing earlier in supply chains, and treating skilled labour as a strategic asset, rather than an afterthought. This episode of Energy Gang is brought to you by ENGIE, the smarter energy supplier. ENGIE doesn't just provide the power to run your business — they supply the energy to move it forward, with reliable, flexible solutions built for what's next. Learn more at engieresources.com [http://engieresources.com/always-on/?utm_source=paid_media_&utm_medium=podcast_host_read&utm_campaign=always_on&utm_content=energy_gang_show_notes]. See Privacy Policy at https://art19.com/privacy [https://art19.com/privacy] and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info [https://art19.com/privacy#do-not-sell-my-info].

The new politics of power: What's really driving up American electricity bills? And what can we do about it?

US residential electricity prices have risen by more than 40 per cent since the start of 2021, which is much faster than general inflation. Utilities requested a total of $31 billion in increased rates last year, double the amount in 2024. And investor-owned utilities are planning to spend $1.4 trillion on capital projects over the next five years – enough on one calculation, to build almost 2,000 Hoover Dams at today’s prices. So why are American electricity bills going up, and what can be done to provide some relief for hard-pressed consumers? In this episode, host Ed Crooks and regular contributor Dr Melissa Lott are joined by Charles Hua, founder and executive director of PowerLines, a nonprofit launched in 2024. Charles's focus is on US states’ Public Utilities Commissions: the roughly 200 commissioners across the country who oversee around $200 billion in annual spending and ultimately determine what consumers pay. He calls them the “US Supreme Court justices of energy”. The discussion opens with questions of consumers’ perceptions, and how they align with reality. The data show that in the past few years, electricity bills have been rising, on average, explaining why the issue has been rising up the political agenda. Recent Ipsos polling commissioned by PoweLines found that four in five Americans feel powerless about energy costs. The proportion who believe their state officials are serving their interests as consumers fell from 38 per cent to 29 per cent in a single year. Charles calls this "a new politics of electricity." It is a domain that until recently sat outside mainstream political attention, but now reaches governors' offices and the White House. Charles and Melissa then unpack what is actually driving the increases. Melissa walks through the top five cost drivers identified in the Lawrence Berkeley National Laboratory's analysis: fuel and wholesale supply, distribution costs, generation capex, transmission costs, and cost recovery from extreme weather events. Charles points beyond the line items to a fundamental issue: the traditional utility business model, which structurally rewards capital spending.  The question about the impact of data centers is unavoidable. Charles breaks it down: until now, data centres have not been a meaningful driver of price increases across most of the country. But that does not mean they will not be in future. PJM's capacity auction, where prices have rocketed, is one early signal that the picture is starting to change. Charles offers three solutions. First, get more out of the existing grid, which is currently running at roughly 50 per cent utilisation, through technologies he describes as "ibuprofen for the grid." Second, modernise the utility business model, potentially drawing on the UK's totex approach, where utilities can earn a return on operational as well as capital spending. Third, improve grid planning, particularly how load is forecast and how integrated resource plans are built. Melissa zooms out to remind listeners what is actually at stake. Borrowing a line from Amory Lovins, she says: "I don't care about my electrons. I care about cold beer and hot showers." The question is not just about price, but about whether households can keep their homes safe and liveable year-round. You can learn more about PowerLines at PowerLines.org.   See Privacy Policy at https://art19.com/privacy [https://art19.com/privacy] and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info [https://art19.com/privacy#do-not-sell-my-info].

Methane is both a problem and an opportunity: How market-based solutions can cut emissions even after climate policy has retreated

Methane is the second-most important greenhouse gas, after carbon dioxide. It has accounted for roughly 30% of human-induced global warming since the 19th century. But it is also a valued commodity, used to heat homes and cook food, provide raw materials for industry and keep the lights on. Every molecule leaked is energy wasted and money lost. The IEA estimates that about 200 billion cubic meters per year could be saved for productive uses by reducing leakage and flaring in the oil and gas industry. That is roughly one fifth of US supply, over a third of the global LNG trade, and nearly twice the volume exported through the Strait of Hormuz in 2025. Half of all abatement opportunities have a positive or zero net cost. The technology to cut emissions by 75% exists today. So why are methane emissions from oil and gas still so large? Host Ed Crooks is joined by TJ Conway, Principal at RMI's Climate Intelligence Program, to explore what it will take to tackle the problem. TJ walks through RMI's approach: first, better understanding where emissions are and how large they are, including the role of super emitters, sources above 100 kilograms per hour that can account for half of total leakage, and then driving change through market mechanisms, corporate engagement, finance, and capacity building.  He then talks about the key issue for future methane emissions reductions: the demand side. Creating a functioning market for differentiated, lower-emissions gas requires that buyers, including utilities, industrial companies and hyperscales using gas-powered data centres, can credibly account for those purchases in their emissions inventories. That architecture is still being built. Ed and TJ also dig into the EU Methane Emissions Regulation, now entering its implementation phase ahead of methane intensity thresholds taking effect by 2030. The technical challenges are considerable: tracing emissions from source to importer through complex supply chains like the US pipeline network, where a single LNG cargo may blend gas from low-intensity offshore fields and high-intensity Permian basin production. RMI has proposed a hybrid traceability approach to solve those challenges.  The episode also covers methane abatement finance. Financial institutions with climate goals are now often relucatant to invest in oil and gas operations, even for emissions reduction. RMI's Methane Finance Working Group, launched at COP28 alongside the Oil and Gas Decarbonisation Charter, has developed guidance for financing structures to overcome that obstacle. It aims to unlock financing to meet a need estimated at 100 to 200 billion dollars. TJ closes with an optimistic message: emissions remain stubbornly high, but the institutional infrastructure built over the past five years now provides the foundation for action. The goal remains a 75% reduction, and the tools exist to get there.   Rocky Mountain Institute was founded during the energy crises of the 1970s, with a simple idea: better energy systems can deliver both economic and environmental benefits. Nearly 50 years later, that mission has never been more relevant. As businesses and governments navigate rising electricity demand, supply-chain uncertainty, and the push to decarbonize, RMI helps turn complex energy challenges into practical solutions. From grid modernization and industrial decarbonization to clean transportation and building efficiency, RMI works across sectors to accelerate the energy transition in ways that improve resilience, affordability, and energy security. Learn more at rmi.org. See Privacy Policy at https://art19.com/privacy [https://art19.com/privacy] and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info [https://art19.com/privacy#do-not-sell-my-info].

How AI is changing the natural gas industry

There are two great forces reshaping the world of energy today. The AI boom and the wave of investment in new data centres have sent power producers scrambling for generation capacity to meet soaring electricity demand. At the same time, the severe disruption to shipping traffic through the Strait of Hormuz has put security of supply at the top of every importer's agenda. In this special episode, recorded at Wood Mackenzie's Gas, LNG and the Future of Energy Conference in London, host Ed Crooks speaks with three guests about what these twin pressures mean for gas. They discuss demand for gas for power, the sources of supply that could provide energy security in volatile times, and plans for tackling the increased greenhouse gas emissions that could result from increased consumption. First, Ed sits down with Neal Kalita, senior director of global energy management at NTT Global Data Centers, one of the world’s largest data center developers. Neal explains why "speed to power" is a priority, and why gas plays such a key role in providing the reliable 24/7 firm capacity hyperscaler clients require. Relying on gas as a key component of the power generation mix means managing a complex set of issues around supply security, demand management and long-term investment. Neal explains how NTT thinks about commodity risk, the trade-offs involved in power supply agreements, and why on-site gas generation may be not just a bridge solution but long-term infrastructure for the electricity system. He highlights the key drivers that are changing the data centre industry, including rising GPU power density, AI-driven volatility in load, and climate-related grid reliability concerns. He also discusses NTT's participation in a demand response programme run by Voltus, which helped stabilise the grid when Winter Storm Fern hit Virginia in January. Next, Ed hears from Keith Shoemaker, Chief Commercial Officer at Coastal Bend, which is developing a new LNG liquefaction project at Corpus Christi, Texas. Coastal Bend is aiming to have the first project in the US to integrate carbon capture and sequestration into its design. Combined with the procurement of upstream gas with low methane leakage and flaring, that should make for the lowest carbon-intensity LNG in the world, Keith says.  Crucially, the project can match competitor prices without charging a green premium. The US 45Q tax credit will cover the operational spending (Opex) for the transport and sequestration of the carbon, and costs will be kept down by using brownfield maritime infrastructure that is already in place. Regulation will still be essential in creating a market for lower-emissions LNG. Keith sets out an idea for making that work in the EU: linking the new Methane Emissions Regulation with the Carbon Border Adjustment Mechanism to create an "avoided carbon" currency that LNG importers could use to offset CBAM fees on other products such as cement, steel and fertiliser. That way, the methane regulation would change from a stick to a carrot for the LNG industry. Kristy Kramer, Head of LNG at Wood Mackenzie, closes the episode by assessing how the three trends of AI demand, energy security and decarbonisation fit together. She discusses the big question: has the conflict on the Middle East changed the world completely, forever. It may play out like the Covid pandemic. Huge changes were predicted, and although there were some permanent impacts, in other areas the world has gone back to the way it was before. Politics will change from week to week, or even from hour to hour, but geology and economics don’t, and over time the fundamentals will reassert themselves. Kristy and Ed reflect on what that means for the future of energy.   See Privacy Policy at https://art19.com/privacy [https://art19.com/privacy] and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info [https://art19.com/privacy#do-not-sell-my-info].

The Iran war and the energy transition: what happens when the world is focused on supply security, not emissions

The conflict in the Middle East has created severe disruption to shipping traffic through the Strait of Hormuz, taking roughly 20% of global supplies of liquefied natural gas (LNG) off the market. It has been a reminder that hundreds of millions of people rely on the international gas trade to heat our homes, fuel our industries and keep our lights on. And that trade is highly vulnerable to sudden shocks. In this special episode, recorded at Wood Mackenzie's Gas, LNG and the Future of Energy Conference in London, host Ed Crooks speaks with industry leaders and experts about the forces that are changing the gas business. Security of supply and affordability are now the top priorities for policymakers and business leaders around the world. But climate change has not gone away, and greenhouse gas emissions are going to be an increasingly significant issue in the future. Balancing those three imperatives is the trilemma that the energy industry has to solve. First, Ed talks to Anita Odedra, of the LNG platform MidOcean Energy, to discuss the critical role of geography. When energy supplies from the Middle East are disrupted, assets elsewhere in the world take on a greater importance.  Joining Anita is Dr Valentina Kretzschmar, of Wood Mackenzie, who puts the shock from the Iran war into the context of a decelerating energy transition in the West. She walks through the EU Methane Emissions Regulation and why it is so hard to work out exactly how much escaped methane is associated with a cargo of imported LNG. And she talks about how the real threat to fossil fuels is cheap Chinese clean energy technology.  Arturo Gallego, of Centrica Energy, is another industry leader who is attempting to balance consumers’ immediate demands for reliable, affordable energy with long-term climate goals. He warns that if the Strait of Hormuz stays closed, Europe will struggle to find the gas it needs next winter, and high prices may be necessary to destroy demand. He makes the case for LNG as a transition fuel and for tackling greenhouse gas emissions step by step. TJ Conway, of the think-tank RMI, closes on a practical note. His work has focused on the technical solutions that make the EU methane regulation workable. He argues that his proposed framework could allow the EU to continue importing US gas, while still sending a signal that methane performance matters. See Privacy Policy at https://art19.com/privacy [https://art19.com/privacy] and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info [https://art19.com/privacy#do-not-sell-my-info].