WHAT’S HAPPENING TODAY: Good afternoon and happy Friday, Daily on Energy readers! We’re bracing for a cold weekend ahead, as a winter storm is expected to hit millions ❄️🥶🌨️. We hope you’re able to stay safe and warm. Below, we’ve shared details on what to expect and how you may be affected by the storm.
We’re also kicking things off with an exclusive on a new petition filed with the Nuclear Regulatory Commission, in which the state of Florida and an advanced nuclear energy startup are urging federal regulators to exempt some small modular reactor designs from the traditional licensing process ☢️.
Plus, we have everything you need to know about oil prices jumping and how it relates to Iran 🇮🇷🛢️.
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.
QUOTE OF THE WEEK: Millions of Americans are bracing themselves for the winter storm sweeping across the southern and eastern United States. The storm could be the first major test for Texas’s electricity grid after multiple winter storms caused a major power crisis in the state in 2021. Despite severe weather warnings, state leaders are confident the grid will remain stable.
“The ERCOT grid has never been stronger, never been more prepared and is fully capable of handling this winter storm,” Republican Gov. Greg Abbott said on Thursday. “There is no expectation whatsoever that there’s going to be any loss of power from the power grid.”
EXCLUSIVE – FLORIDA & AMERICA FIRST LEGAL CALL ON NRC TO STREAMLINE SMR LICENSING: The state of Florida and America First Legal (AFL) are calling on federal regulators to clear a pathway to swiftly build advanced nuclear reactors in the Sunshine State, arguing one small modular reactor design should be exempt from traditional licensing requirements.
The details: AFL, founded by White House advisor Stephen Miller, filed a petition with the Nuclear Regulatory Commission (NRC) yesterday on behalf of Florida and nuclear developer Last Energy over the startup’s SMR design. The conservative nonprofit is arguing that Last Energy’s SMR design, which would use a pressurized water reactor, should not be subject to NRC licenses under the Atomic Energy Act of 1954.
They claim the reactor would not involve the use of “special nuclear material” in such a quantity or manner that would be significant to defense and security, or the health and safety of the public. The petition also cites a draft document from the NRC in 2017 regarding siting for SMRs, which details that the smaller designs may have fewer radioactivity risks than large reactors.
Accordingly, the AFL is arguing that the NRC is exceeding its authority by imposing the same regulatory requirements. The petition is not asking for a rulemaking or adjudication for the design, but “declaratory relief.”
“This proposition is low-risk, high-reward in more ways than one,” Emily Percival, AFL Senior Counsel, said in a statement. “It is time for the NRC to respect the boundaries placed on it by Congress and cede this regulatory authority to states like Florida to move forward with affordable, clean energy solutions.”
Some background: Last Energy has been pushing back on regulatory oversight in relation to its SMR design. In January 2025, the company, alongside the states of Texas and Utah, filed a lawsuit against the NRC claiming regulators exceeded their authority by imposing sweeping risk analysis and licensing requirements on the small reactors.
Quick reminder: SMRs traditionally have a smaller physical footprint than larger nuclear facilities, allowing the reactors to be built closer to local grids or the demand source at a faster pace. These can generate upward of 300 megawatts of power, but can also have a capacity as small as 1 megawatt.
There are no SMRs operational in the U.S. and only three are operational in the world. The NRC has only issued design approvals for two SMRs, both set to be developed by NuScale.
TRUMP TARGETS IRAN IN NEW SHADOW FLEET SANCTIONS: The Trump administration is increasing pressure on Iran’s use of the so-called shadow fleet, imposing new sanctions on vessels and companies associated with illegally transporting Iranian oil.
The Treasury Department’s Office of Foreign Assets Control announced earlier today that it was targeting the shadow fleet as retribution for the Iranian government’s treatment of peaceful protesters and for shutting off internet access to “conceal its abuses against the Iranian people.”
The sanctions target nine vessels transporting Iranian oil to foreign markets, including ports in Asia, East Africa, and the Middle East. The corporate owners and managers of those vessels have also been designated under the sanctions.
TRUMP’S IRAN COMMENTS SEND OIL PRICES WAY UP: This morning, oil prices climbed after Trump threatened Iran by saying an “armada” was moving toward the country.
As of this afternoon, Brent crude was up 2.8% to nearly $66 per barrel. U.S. West Texas Intermediate crude was up 2.9% to above $61.
On his flight back from Davos yesterday, Trump said that the U.S. has several ships heading toward Iran but he hoped they would not need to be used.
“We have a lot of ships going that direction, just in case. … I’d rather not see anything happen, but we’re watching them very closely,” Trump told reporters aboard Air Force One.
Trump has consistently threatened Iran with U.S. intervention over the treatment of protesters, and the president claimed that Iran stopped the execution of 840 people due to his previous threats.
Reactions: Patrick De Haan, head of petroleum analysis at GasBuddy, said that regarding the situation in Iran, he does not expect any impact on gas prices, but “obviously this is a situation that continues to warrant following.”
Susan Bell, a senior vice president for commodity markets and oil at Rystad Energy, said by email that “Benchmark crude oil prices could see strength on the recent announcement by US President Trump that an armada is heading for Iran.”
“U.S. military action to quell the violence against protesters in Iran has the risk of disrupting Iran’s oil supply. Iran produces over four million barrels per day of crude oil and condensate, and exports around 1.5 million barrels per day primarily to China,” she added. “While the global oil balance is currently long, a loss in Iranian supply will still interrupt prompt market dynamics to support stronger front month prices and steeper backwardation.”
Read more by Maydeen here.
WHERE ‘DRILL, BABY, DRILL’ STANDS: The number of active drilling rigs in the U.S. continues to mirror crude oil price trends, ticking slightly up today.
Data released by Baker Hughes this afternoon show there was one rig added over the last week. Broken down further, the industry saw two land rigs added while one offshore rig was taken off, bringing the total to one.
While technically the rig count is up for the week, the total number of active rigs (544) is 32 fewer than the amount active this time last year.
Something worth knowing: It’s important to note that as rigs have dropped over the last year, that does not necessarily mean oil and gas production has been abandoned at those sites. Operators will often use rigs for drilled but uncompleted wells (DUCs), where oil and gas have not yet been extracted. These partially completed wells can later be brought back to market at a much faster and cheaper rate than brand new wells. When the operator is finished using the rig to partially drill the well, though, it may be removed from the active rig count.
MILLIONS BRACING FOR WINTER STORM: Nearly 200 million people will be affected by the storm set to hit a dozen states from the South to the Mid-Atlantic starting on Friday.
Forecasters are predicting that states like New York could see nearly a foot of snow. Washington, D.C., is forecast to see 6 to 10 inches of snow.
Several states declared a state of emergency, including Alabama, Arkansas, Georgia, Louisiana, Mississippi, Oklahoma, North Carolina, South Carolina, Tennessee, Virginia, and Washington, D.C.
Maryland and West Virginia are under a state of preparedness, and Republican Texas Gov. Greg Abbott has issued a disaster declaration.
The heaviest snow is expected to stretch 2,000 miles starting from New Mexico to Oklahoma, and north to Massachusetts. AccuWeather said parts of the Northeast could see 12 to 18 inches of snow at the end of the storm.
While the storm is predicted to end on Monday, it will be followed by a surge of Arctic air that will drop temperatures. These frigid temperatures are anticipated to increase energy demand, particularly for natural gas.
According to CNN, contracts for near-term natural gas futures have skyrocketed by more than 70% so far this week, the largest weekly price hike since 1990 and the highest since 2022.
If you are in the storm’s path, check out these tips from the American Red Cross on preparing for a winter storm.
MICHIGAN SUES OIL INDUSTRY FOR COLLUSION AGAINST RENEWABLES AND ELECTRIC VEHICLES: Michigan has filed an antitrust lawsuit against BP, Chevron, ExxonMobil, Shell, and the American Petroleum Institute, claiming they worked together to reduce production and distribution of renewable energy and electric vehicles.
In the lawsuit, they say that “[F]or decades, Defendants have conspired with each other to forestall meaningful competition from renewable energy and maintain their dominance in the energy market.”
“They have done so as a cartel, agreeing to reduce the production and distribution of electricity from renewable sources and to restrain the emergence of electric vehicles (EV) and renewable primary energy technologies in the United States,” the suit adds.
They claim that the defendants coordinated efforts to abandon renewable energy products by using patent manipulations and litigation to limit market competition. They allegedly suppressed information about the hidden costs of fossil fuels, misled institutions, intimidated watchdogs and public officials, and redirected capital investments away from renewable energy through trade associations.
ICYMI – TRUMP CANCELS MILLIONS FOR SOLAR IN PUERTO RICO: Yesterday, the Department of Energy announced that it was slashing upward of $365 million worth of funding for solar power projects in Puerto Rico.
The funds: The Solar Access Program funding was a part of a roughly $1 billion Biden administration initiative to support the island’s electrical infrastructure and boost energy reliance after the devastation brought on by Hurricane Maria in 2017. The program allocated around $265 million to install solar and storage systems at public housing and clinics across Puerto Rico, bringing new electricity generation to around 30,000 low-income families.
What’s new: The Energy Department confirmed to the Associated Press yesterday that the agency began clawing back these funds this month and will be reallocating the money to “support additional practical fixes to improve generation.”
The Trump administration has claimed that the local government’s push to deploy renewable energy such as solar has led to “unacceptable instability and fragility.” Solar advocates in the territory have pushed back, with public policy director of Puerto Rico’s Solar and Energy Storage Association Javier Rua Jovet saying that the around 200,000 families currently rely on solar that generates nearly 1.4 gigawatts of energy each day and helps prevent blackouts.
Read more from the Examiner’s Claire Carter here.
RUNDOWN
Wall Street Journal Nuclear Power Is Making a Comeback
Associated Press In Scotland, fishing trawlers scrape the seabed despite protection promises
Bloomberg Brazil Is Set for a Battery Boom. China Is Poised to Benefit
