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LATEST FROM IRAN – PROJECT FREEDOM BACK ON? The Trump administration’s “Project Freedom” operation to help move oil tankers through the Strait of Hormuz may be back on. Officials told the Wall Street Journal that it is hoped that the effort could resume this week, following a decision by Saudi Arabia and Kuwait to allow the U.S. to use their bases and airspace for military maneuvers. The two governments had previously blocked the use of their airspace out of fear of escalation by Iran because of the U.S. plan to usher ships through the strait in defiance of Iranian missile and drone attacks.

Iran moves ahead with effort to formalize control of Strait of Hormuz traffic: Meanwhile, Iran is trying to set out rules for tankers passing through the Strait of Hormuz, to be implemented by its new Persian Gulf Strait Authority, according to CNN. 

Ships are being asked to fill out a document with information about their country of origin, cargo, and more, before they can cross the strait without fear of attack. 

Before the war, ships could pass through the strait at will. Now, Iran is seeking to exert control over transit as a form of leverage over the rest of the world. 

UAE snuck four tankers by Iran: The Abu Dhabi National Oil Co was able to sneak four tankers with 6 million barrels of oil through the Strait of Hormuz in April despite Iran’s blockade, the New York Post reports. 

The ships turned off their automatic identification system transponders to slip by, a tactic also used by Iranian shadow fleet tankers. 

Wright says Iran faces permanent damage to oil production: Energy Secretary Chris Wright said today that Iran has had to cut back its oil production by 400,000 barrels a day as its storage has filled and it’s been unable to export via the strait. 

“If it goes too long and they have to actually shut in some of their low-pressure, mature reservoirs – real risk and almost certainly some kind of permanent damage and reduced production capacity,” Wright said on Fox News. “Hopefully that is an additional incentive for Iran to get to the end that everyone knows we’re going to get to.”

TRUMP MEETS BRAZILIAN PRESIDENT: Trump hosted Brazilian President Luiz Inácio Lula da Silva today at the White House, where the two discussed trade policy between the two nations. 

Trump on Truth Social called the Brazilian president “very dynamic.” He added that, “We discussed many topics, including Trade and, specifically, Tariffs. The meeting went very well. Our Representatives are scheduled to get together to discuss certain key elements.” 

The president said there would be more meetings over the coming months. 

Lula left the White House without joining the president for a scheduled press conference this afternoon. Lula has previously condemned Trump’s actions toward Iran and Cuba. 

The Trump administration last November eased tariffs on Brazilian exports, specifically agricultural products. The two were also expected to discuss critical minerals, as the U.S. has sought to reach an agreement with Brazil to boost supplies. 

SHELL EARNINGS HIT NEARLY $7B: Oil giant Shell reported earnings of $6.92 billion for the first quarter, passing analysts’ expectations of $6.1 billion. 

That is up from $5.58 billion in the first quarter of last year. The company reduced its quarterly buyback to $3 billion from $3.5 billion. 

“Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets,” Shell CEO Wael Sawan said in a statement.

Oil firms are getting a boost from the high oil prices caused by the war in Iran. Since the war started in late February, oil prices have soared almost 40%. 

Exxon Mobil and Chevron last week reported first-quarter earnings that beat Wall Street expectations. Exxon reported earnings of $1.16 per share, which surpassed estimates of $1.00. Chevron reported earnings of $1.41 per share, versus expectations for 95 cents per share. 

EPA TO RECONSIDER PFAS LIMITS: The Environmental Protection Agency is expected to ease parts of the Biden administration’s limits for PFAS, also known as “forever chemicals,” in drinking water, the Associated Press reports. 

The AP said the agency will propose delaying the Biden administration’s standards for two common types of PFAS and consider rolling back limits on more rare ones. 

Jessica Kramer, head of the EPA’s Office of Water, said at a conference today that the agency plans to rescind and revisit parts of the restrictions, adding that the Biden administration improperly issued the limits. 

“We need drinking water rules that are legally defensible. We need drinking water regulations that are not susceptible to legal challenge because the explicit process in the Safe Drinking Water Act wasn’t followed. And so that is a huge concern,” Kramer said at a conference. 

The EPA has been pressured over PFAS by advocates from the Make America Healthy Again movement, which has also called for stricter regulations on microplastics and pesticides. 

PJM SAYS IT IS READY FOR SUMMER DEMAND SPIKES: PJM, which handles the grid for 67 million people in the mid-Atlantic and Midwest, said today that it is prepared to handle demand spikes over the summer, despite the added demand created by data center construction. 

“While we expect to operate reliably this summer, the outlook resembles last year’s and reflects a new reality – continued load growth driven by data centers that is outpacing the addition of new generation,” vice president of operations Michael Bryson said in a press release. 

PJM said that, with abnormal heat expected this summer in the mid-Atlantic and South, demand will peak at 156,400 megawatts. PJM has approximately 180,200 MW of generation capacity and also 7,800 MW of contracted demand response. 

The North American Electric Reliability Corporation said earlier this year that the PJM grid will be at risk in the years ahead as supply struggles to keep pace with demand. 

TED TURNER LEAVES BEHIND MASSIVE CONSERVATION AREAS: One major legacy of media mogul Ted Turner, who died yesterday, is one of the largest private land holdings in the U.S., including huge conservation areas. 

He had over 2 million acres of ranchland, much of which he turned into private preserves, according to DTN.

The announcement of Turner’s death on his website noted that “The well-being of these properties and the species present on each was of utmost importance to Turner; therefore, Turner ensured that upon his passing, his lands will continue to be protected, limiting future development and parcellation.”

Turner owned massive ranches in New Mexico, Colorado, and Nebraska. He owned the 113,600-acre Flying D Ranch in Montana, which has a conservation easement through The Nature Conservancy, meaning that certain kinds of development are prohibited. 

Turner also had a herd of 45,000 across his ranches, making him the largest private bison owner. The herd supplied bison meat for Ted’s Montana Grill, his restaurant chain. 

SUPER EL NIÑO INCOMING? The possibility of a super El Niño is becoming more likely this year, which could bring heavy rainfall and high temperatures. 

An El Niño is when the surface temperatures in the Pacific Ocean get warmer, affecting weather patterns for months. It usually brings high temperatures and wetter winters to the southern U.S. El Niño patterns typically happen every three to four years. 

However, forecasters have been predicting a super El Niño to begin later this year. 

“The majority of model forecasts now suggest there is at least a 50-50 chance this El Niño could become a ‘super El Niño,’ one in which ocean surface temperatures are at least 2 degrees Celsius warmer than average,” The Weather Channel reported. 

The Weather Channel said these super El Niño are more rare – only five since 1950. It added that forecasts are that this year’s El Niño could raise surface temperatures to at least 2.5 degrees above average by autumn, making it the “most intense on record.” 

El Niño conditions could begin to develop between May and July, according to the National Weather Service. 

RUNDOWN

The Associated Press Michigan cities rethink ‘No Mow May’ as experts question pollinator benefits

Canary Media Industry can dodge fuel shocks by electrifying. What’s the holdup?

Bloomberg A Quieter Hurricane Season This Year Could Still Pummel the US Power Grid