WHAT’S HAPPENING TODAY: Good afternoon and happy Tuesday, readers!
The top story today is the same as it has been for one month now: Huge movements in oil caused by the conflict with Iran that threaten to destabilize the global economy.
Oil is set to finish with the biggest monthly price gain in history, eclipsing the mark set during the first Gulf War. And households are surely feeling the effects, as gas prices have now hit the $4-a-gallon mark. 🛢️💰
That’s not the only update, though. We have significant news from the Gulf of Mexico, now referred to as the Gulf of America by the Trump administration, where Trump officials are moving to lift Endangered Species Act protections in a bid to accelerate drilling. 🐋🐟🐦
It’s a warm and lovely afternoon here in Washington, from whence Maydeen and editor Joe Lawler are reporting and writing this letter. Callie is in Colorado for a reporting trip – more on that in the coming days. As always, please get in touch if you have news, tips, feedback, or comments to share.
Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
TRUMP ADMINISTRATION EXEMPTS SPECIES PROTECTION IN THE GULF: The Endangered Species Committee voted unanimously this morning to exempt all oil and gas drilling activities in what was previously known as the Gulf of Mexico from Endangered Species Act requirements, an effort meant to boost oil and gas drilling.
The meeting was led by Interior Secretary Doug Burgum and the committee has five other members: the Secretary of Agriculture, the Secretary of the Army, the Chairman of the Council of Economic Advisers, the Administrator of the Environmental Protection Agency, and the Administrator of the National Oceanic and Atmospheric Administration.
The committee, also known as the “God Squad,” has the authority to lift rules meant to prevent animals and plants from going extinct. The meeting today marks the first time in 30 years that the committee has convened.
The meeting was prompted by Secretary Pete Hegseth, who notified Burgum earlier this month that the agency “found reasons of national security” to exempt all oil and gas drilling activities in the region.
Hegseth, who attended the meeting, argued that ongoing Endangered Species Act litigation threatens to block oil and gas production in the Gulf. He said there would be “serious consequences” if the U.S. was unable to get oil from the region.
Reaction: The rollback in protection for species in the Gulf has already received pushback from environmentalists and conservation groups. For instance, Earthjustice signaled that it would take legal action to stop the order from going into effect.
“The Trump administration is exploiting its self-made gas crisis to get rid of protections for endangered whales and other imperiled species in the Gulf of Mexico,” said Steve Mashuda, Earthjustice managing attorney for oceans
The Defenders of Wildlife called the committee’s action unlawful, stating it failed to meet required hearing and documentation standards.
“In a farcical piece of political theater consisting of high-level officials reading scripted remarks and engaging in zero deliberation, the Trump administration stripped America’s wildlife heritage in the Gulf of Mexico of essential protections. The Endangered Species Act has not slowed an iota of oil from being extracted from the Gulf,” said Andrew Bowman, president and CEO of Defenders of Wildlife. “I cannot stress enough how unprecedented and unlawful this action is.”
Read more by Maydeen here.
TRUMP TELLS EUROPE – ‘GET YOUR OWN OIL’: President Donald Trump took to social media this morning to criticize European countries that decided not to support the U.S. in the war in Iran, telling those facing fuel shortages to “Go get your own oil!”
The president said that countries like the United Kingdom that can’t get jet fuel because the Strait of Hormuz is effectively closed and refused to aid the U.S. in its efforts should buy from the U.S. He also said they should “build up some delayed courage, go to the Strait, and just TAKE IT.”
“You’ll have to start learning how to fight for yourself, the U.S.A. won’t be there to help you anymore, just like you weren’t there for us. Iran has been, essentially, decimated. The hard part is done. Go get your own oil!” Trump wrote on Truth Social.
BIGGEST MONTHLY OIL PRICE GAIN ON RECORD: Brent crude is on track to finish March up 50%, which would be the biggest one-month gain on record.
The previous largest one-month jump was 46%, recorded in late 1990 during the first Gulf War, according to FactSet data reported by the Wall Street Journal.
Brent prices were near $119 a barrel as of this early afternoon.
Prices were up sharply on Trump’s comments and on remarks from Hegseth this morning that the attacks would intensify in the coming days if Iran does not agree to a deal. Iran, in turn, threatened to retaliate against specific U.S. firms.
GAS HITS $4 A GALLON: The average U.S. price for a gallon of regular gas rose today to $4.02, according to AAA.
A gallon of gas was $2.98 a month ago and $3.17 a year ago.
Americans have already spent nearly $8 billion more on gasoline over the past month, according to GasBuddy’s Patrick De Haan, who we have been citing almost every day.
And with diesel prices well above $5, shipping costs are going up.
Consumers are extremely sensitive to gas prices. And they were already feeling extremely bleak. For reference, consumer sentiment in February was as bad as it was for most of 2008, during the financial crisis, according to the University of Michigan Surveys of Consumers. In other words, Americans already felt as bad about the economy as they did during a historic recession – before this gas price shock hit.
That bodes poorly for congressional Republicans as they try to keep control of the House and Senate.
ASIA AND EUROPE EMBRACE COAL: Countries across Europe and Asia are beginning to shift to coal as the war in Iran disrupts natural gas exports.
Both Europe and Asia have relied heavily on exports of liquefied natural gas from the region, but the effective closure of the Strait of Hormuz and attacks on Qatar LNG facilities have shaken energy markets.
Japan, Italy, Germany, India, South Korea, the Philippines, and others have signaled efforts to use more coal to offset the energy crisis caused by the war in the Middle East.
Natasha Fielding, head of gas pricing in Europe at Argus, told Maydeen via email that Europe faces challenges this summer in replenishing its gas storage to sufficient levels ahead of next winter. Europe’s gas storage is at the lowest levels in recent years following the end of winter.
“European gas prices have spiked to levels that would incentivise utilities to run even their oldest coal-fired power stations ahead of the most modern gas-fired power plants,” Fielding said.
The fuel switch would allow Europe to preserve gas to add to its storage, but Fielding noted that Europe can only do so much because it has begun phasing out coal.
“The only way for Europe to return to coal in a big way is to switch back on coal plants that were previously retired,” she said. “However, this would roll back years of progress reducing the carbon intensity of Europe’s power sector. This tension between affordability, sustainability and security is the energy trilemma in action.”
She added that there is a greater chance for Asia to increase its coal output, citing that China’s energy mix is still dominated by coal and countries like Taiwan and South Korea plan to increase their output.
ITALY SET TO POSTPONE COAL SHUTDOWN FOR 13 YEARS: Italy is set to postpone the shutdown of its coal-fired power plants until 2038, a change triggered by the war in Iran.
The postponement is part of a bill passed in the lower house today, Reuters reports. The bill still needs to be approved by the Senate, which it is expected to pass.
Italy’s co-ruling League party, which supports the postponement, said it is “right and responsible” to reconsider shutting down coal due to the current “serious international energy crisis.” Italy’s energy minister has said that coal power plants could be reactivated if the war in Iran continues.
ABANDONED WIND TURBINES TORMENT TEXAS TOWN: Bloomberg has an interesting story about how wind turbines have been dumped in Sweetwater, Texas, hurting the quality of life.
Hundreds of chopped-up turbines take up a field of nearly 1 million square feet. The city cannot afford the $13 million to $54 million it would take to move them.
Texas Attorney General Ken Paxton last month filed a civil suit against the company, Global Fiberglass Solutions, that left them there. And the county district attorney has indicted the company’s executives for illegal dumping and property theft.
The disaster has implications for wind power more generally, which is under scrutiny from the Trump administration and constantly faces criticism about waste and safety.
ICYMI – ENVIRONMENTAL AND HEALTH GROUPS SUE EPA OVER MERCURY RULE: A coalition of environmentalists and health groups filed a lawsuit against the Environmental Protection Agency for repealing the updated mercury and air toxic standards.
The coalition included Earthjustice, the American Lung Association, the Natural Resources Defense Council, and the American Academy of Pediatrics. The group filed the lawsuit in the U.S. Court of Appeals for the D.C. Circuit.
“This administration is not just rolling back rules, it is eliminating the monitoring infrastructure needed to know what is coming out of these smokestacks in the first place,” the coalition wrote.
“It is allowing coal plants to spew out more neurotoxic mercury into our air and food supply, while simultaneously keeping the communities most at risk in the dark about how serious that threat is. This is a betrayal of the EPA’s core mission,” they added.
Last month, the EPA finalized a rule to repeal the Biden administration’s updated mercury and air toxic standards, which had required plants to reduce mercury pollution by 70%.
The agency last year extended the compliance deadline for the standards by two years, from 2027 to 2029, citing national security concerns and lack of technology availability.
RUNDOWN
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