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.

IRAN AND US JAWBONE OIL MARKETS, SENDING PRICES TO LOWEST LEVEL IN A MONTH: International and domestic crude oil prices dropped to the lowest level they’ve been in the last four weeks after both the U.S. and Iran sent significantly positive signals that a ceasefire deal is on the horizon. 

The details: Earlier this morning, Iranian state media said it obtained a draft of an initial, unofficial deal between Tehran and Washington on ending the war, according to Reuters. The draft document supposedly noted that Iran would restore commercial shipping through the Strait of Hormuz to normal levels within a month, while the U.S. would end its naval blockade and withdraw its military. 

The White House later called the Iranian report about the draft deal “not true” and a “complete fabrication.” 

However, just a few hours later, Secretary of State Marco Rubio indicated that there has been progress made with Iran, saying the administration is going to get diplomatic negotiations “every chance to succeed.” 

Price reaction: Oil traders and analysts have taken the news as the most prominent signal in recent weeks that a deal could be agreed to, without significant military escalation. 

“This has been a stronger or longer-lasting price response to a potential deal than we have seen since the cease-fire,” Ajay Parmar with energy intelligence company ICIS told the Wall Street Journal. ”I think it is because we’ve had positive soundings from both sides for the first time.”

As a result, international and domestic benchmarks have fallen by more than 5%, with West Texas Intermediate falling below the $90 line. Just before 3 p.m. EDT, WTI was down 5.40% and trading at $88.82 a barrel. Brent Crude also dropped 5.19% and was selling at $94.41. 

HOW MUCH HAVE JONES ACT WAIVERS CUT GAS PRICES? A new analysis by Reuters concludes that the Trump administration’s Jones Act waivers haven’t put significant downward pressure on gasoline prices. 

Quick reminder: On March 18, President Donald Trump first issued a 60-day waiver of the Jones Act, which requires goods shipped between U.S. ports to be carried only by American-built ships. The waiver is aimed at lowering the cost of transporting oil from Gulf refineries to the East Coast and other parts of the country. The waiver was extended for 90 days in late April. 

The short-term effect: In the last two months, more than 60 shipments have been made under the waiver, transporting gasoline, diesel, crude oil, and other petroleum products to the Gulf Coast, California, Florida, Pennsylvania, Oregon, Alaska, Puerto Rico, New York, Delaware, and New Jersey, according to data from the Department of Transportation’s Maritime Administration. 

Sources told Reuters that the Trump administration is pleased with the results of the waiver so far, and is open to extending it further if needed. 

However, gas prices have not fallen significantly in that same timeframe. 

As of Wednesday, AAA was reporting that the national average price of gasoline was $4.459 a gallon, up from $4.111 one month ago. 

Reuters reported that, when looking at the recent shipments from the U.S. Gulf Coast to the West Coast, using an international vessel would have only saved just over $0.06 a gallon on California prices. On the East Coast, some instances found it cheaper to use Jones Act-complaint ships, given increased demand to Asia. 

…THAT’S BAD NEWS FOR THE GOP: Voters are prepared to hold Republicans accountable for high gas prices, according to new polling reported by the Examiner’s Mabinty Quarshie. 

The Overton Insights survey showed that 57% of respondents said that due to high gas prices, they were less likely to support the Republican Party.

And 64% of independent voters said higher gas prices made them less likely to support the GOP. 

ANTI-DEI, ANTI-ISLAM CANDIDATE WINS OVER INDUSTRY FAVORITE FOR TEXAS RAILROAD COMMISSION: Conservative Bo French has officially clinched victory in the Republican primary runoff election for a seat on Texas‘ Railroad Commission, beating incumbent commissioner Jim Wright. 

The tight runoff election was officially called earlier this morning, with French securing 50.6% of the vote. Wright took home 49.4% of the vote, according to the Associated Press.

The campaigns: Wright, who was backed by major oil companies and state Republican leaders including Gov. Greg Abbott, campaigned on his record of serving on the commission and prioritizing the upholding of environmental and safety standards while also encouraging innovation and job creation in the oil and gas industry.

Meanwhile, French ran on ideology and controversial policies that stretched beyond the commission’s traditional remit. 

French has claimed Islam poses an “existential threat” to Texas’ residents’ way of life, putting oil and gas resources in the state at risk. He has also vowed to end DEI practices in the Commission, end Chinese influence over the Texas oil industry, and create a pro-family and anti-abortion program for Texas oil and gas operators.

If you forgot: The Texas Railroad Commission, despite its name, does not regulate railroads, but the energy industry in the Lone Star State. It is widely considered to be one of the most powerful agencies in the state, overseeing all phases of the oil and gas production process as well as pipeline safety and natural gas rates.

Read more from Callie here. 

EXXON MOBIL IS TEXAS-BOUND: Exxon Mobil shareholders overwhelmingly voted to approve a move in the corporation’s legal home from New Jersey to Texas, which the company sees as more friendly to its business. 

“Texas has been our corporate home for decades,” CEO Darren Woods said following the vote today, according to the Financial Times. “The board believes that kind of familiarity will lead to more reasonable, productive decisions from Texas officials and citizens, which is critical for the long-term success of the company.”

Why it matters: One factor is that the move could make it harder for activist investors to bring shareholder measures counter to Exxon’s core fossil fuels business, as has happened in the recent past. The proxy advisory firms Glass Lewis and Institutional Shareholder Services had recommended voting against redomiciling to Texas, citing investor protections in New Jersey law. 

Also: Texas has succeeded in luring corporations away from blue states in recent years by promoting light regulation and opposition to “woke” policies. That includes Dell, Coinbase, and two Elon Musk companies: Tesla and SpaceX.

‘ALLIGATOR ALCATRAZ’ FACES ANOTHER ENVIRONMENTAL LAWSUIT: Environmental nonprofit Center for Biological Diversity has filed another lawsuit against the pop-up detention center for illegal immigrants in the Everglades commonly referred to as “Alligator Alcatraz.” 

The details: The lawsuit, filed against the state of Florida today, claimed the facility is releasing dangerous air pollution from diesel generators and other equipment on site since it entered operations last summer. 

“The Everglades Detention Center depends upon a fleet of large diesel-burning generator sets for electrical power, diesel-burning lighting towers, and other air-polluting equipment and activities,” the lawsuit reads. “This air-polluting equipment at the Facility emits significant amounts of dangerous air pollutants that are harmful to human health and the environment, including pollutants that cause cancer, asthma attacks, cardiovascular disease, and premature death.” 

The green group argues that under the Clean Air Act, these types of “major” sources of air pollution must obtain certain permits before commencing construction, permits the Florida Division of Emergency Management did not obtain. 

Quick reminder: The Center for Biological Diversity, along with two other groups, previously sued over the detention center, arguing it must undergo a federal environmental review. While a federal judge first agreed with their argument, an appellate court overturned that ruling and later upheld its decision, keeping the facility open. 

In May, the Washington Examiner confirmed that Trump administration officials were in talks for closing the facility altogether, saying it was too expensive and were concerned about the risks of hurricane season. 

NEW JERSEY GOVERNOR WORKING ON BILL TO PROTECT CONSUMERS FROM DATA CENTER ENERGY USE: New Jersey Gov. Mikie Sherrill is reportedly working with state lawmakers to introduce a bill that would require data centers to supply their own energy and invest in grid upgrades to further protect consumers. 

The details: In an interview with the Gothamist this week, Sherrill confirmed that her administration is backing the bill, which would require the biggest users of energy (who use 100 megawatts or more) to pay for at least 85% of their requested electricity for at least 10 years. 

The exact text of the legislation is still being negotiated, but it could be released as soon as tomorrow. 

The Democrat is also reportedly supporting a bill that would require data centers to report their energy and water usage to state officials. 

Key quote: “Most people don’t even know what a data center does. We have about 80 of them here in New Jersey, and I think very few people understand what they’re doing,” Sherrill told the outlet. “So we’re driving innovation, but at the same time, what people do know is that in too many cases, they’ve negatively impacted New Jerseyans.”

ICYMI – DID CHINA JUKE THE STATS ON EMISSIONS? Centre for Research on Energy and Clean Air analyst Lauri Myllyvirta published a report yesterday concluding that China changed the way it measures “carbon intensity” in such a way that the country’s total reported carbon emissions fell by as much as the total emissions of Germany or South Korea. 

The revision brings China close to meeting its climate goals for 2025 and on track for meeting the goals for 2030, whereas it otherwise would not have been. 

The Global Times, a Chinese Communist Party-controlled outlet, pushed back against the claim after it was picked up by several prominent newspapers. 

Why it matters: China is by far the world’s largest emitter. Any coordinated bilateral effort to curb emissions would have to get China to lower its emissions to be successful.

RUNDOWN 

New York Times Hunting a ‘Frankenfish’ With a Bow and Arrow

Canary Media The hidden innovation behind Antora’s massive new heat battery

CNN In the lowest place on Earth, a sea is rapidly dying — and no one can agree how to save it