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 SAYS HIGH PRICES ARE ‘PEANUTS’: President Donald Trump called high oil and gasoline prices “peanuts” earlier today, as prices have surged nearly 50% since the war in Iran started in late-February. 

“And this is peanuts, and I appreciate everybody putting up with it for a little while. It won’t be much longer, but you could have, frankly, there is so much oil out there,” the president told reporters. 

Trump also acknowledged that war in Iran might not be popular, but argued that the mission is worth pursuing. 

“Look, everyone tells me it’s unpopular, but I think it’s very popular when you, when they hear that it’s having to do with nuclear weapons, weapons that could take out Los Angeles, could take out major cities very quick,” Trump said.

“Whether it’s popular or not popular, I have to do it, because I’m not going to let the world be blown up on my watch,” he said. “It’s not going to happen.”

Earlier today, Trump also noted that he was “an hour away” from ordering strikes on Iran yesterday, but did not due to negotiations with Tehran. The president has continued to threaten further strikes on Iran if there is no peace deal. 

WHERE ARE PRICES NOW: We’re continuing to see whipsaw-like movement in the oil markets as there are little to no signs of de-escalation in the Middle East and uncertainty remains over a potential U.S. strike. 

Just after 3 p.m. EDT, international benchmark Brent Crude was down about 0.45%, selling at $111.60 a barrel. West Texas Intermediate, however, was up 0.21% and priced at $104.63 a barrel. 

“One might think the oil market would become increasingly numb to these headlines. However, the scale of supply disruptions is significant and growing more concerning each day that oil flows remain halted,” ING market analysts wrote in a note today. 

Gasoline prices faced upward pressure today, with AAA reporting that the national average price at the pump is $4.533 a gallon. Diesel also ticked up, hitting $5.65 a gallon. 

Plus…talks for an extended gas tax holiday: A senior administration official confirmed to Bloomberg that the administration is working with members of Congress on finding a way to suspend the federal gas tax for potentially more than a year to offer more relief at the pump. 

“In aggregate, if you take a look at the millions of gallons of gasoline that are consumed every day by Americans, even 18 cents a gallon adds up pretty quickly, in terms of keeping money back in their pockets,” Interior Secretary Doug Burgum told the outlet. 

If you need a refresher on the federal gas tax, check out Maydeen’s explainer article here. 

OIL SPILLAGE NEARBY PERSIAN GULF ISLAND: During the war in Iran, an attack on an oil refinery caused an oil spill impacting a nearby Persian Gulf island, the Associated Press reports.

Satellite imagery viewed by the outlet shows oil-soaked waves near Shidvar Island, which is an uninhabited island. The island is about 3.3 square miles and is a designated wetland of international importance under the Ramsar Convention on Wetlands. It’s known as an important breeding ground for terns, an Iranian seabird. 

Mobile footage taken April 9, captured by an Iranian named Ehsan Jalali that was also analyzed by AP, reportedly shows black smoke rising after the strike on an oil refinery on Lavan, an island just off mainland Iran near Shidvar. Jalali also took footage showing animals like birds and crabs near the island covered in oil. 

Iranian officials claimed that the United Arab Emirates carried out the attack on the oil refinery last month. 

SOLAR TO DOMINATE OVER COAL AND GAS: Renewable energy alternatives will become the largest sources of electricity in the next 10 years, new research from BloombergNEF suggests, as nations seek to diversify their energy resources to avoid future supply shocks.

The details: BloombergNEF released its annual energy outlook on Tuesday, forecasting that if countries continue on the current path of deploying clean energy technologies such as wind and solar, the world will reduce its dependence on fossil fuels. 

The report estimates that solar will outpace coal by 2032, making up 20.6% of global electricity generation, compared to coal’s 19.8%. Natural gas is only expected to make up 19.2% that same year. 

Renewables’ share of electricity generation is only expected to grow in the years after, with solar power estimated to make up 31% by 2050, and wind accounting for 24.9%. 

This increased deployment of renewable energy is not expected to completely phase out fossil fuels, as coal is expected to make up 8.3% of electricity generation in 2050, according to the report. Natural gas is also estimated to still make up 17.1% of electricity generation that same year.

Read more from Callie here.

EPA LOOKS TO PULL BACK DIESEL REQUIREMENTS: Earlier today, the Environmental Protection Agency said it plans to eliminate diesel emissions requirements for farm equipment, claiming the move will reduce costs and mechanical burdens for farmers.

Some background: Diesel exhaust fluid (DEF) is used in modern diesel engines to reduce nitrogen oxide emissions, a contributor to air pollution. The fluid works with selective catalytic reduction systems installed on many tractors and heavy-duty farm vehicles to comply with federal emissions standards. 

What’s new: The Trump administration has argued that farmers across the country have repeatedly described tractors shutting down at inopportune times because of emissions systems tied to DEF requirements, sometimes multiple times in a single year during planting or harvest season. 

“During our travels last year, I’ll say there’s no issue that we heard more feedback from frustration, anger, than diesel exhaust fluid,” EPA administrator Lee Zeldin said. 

Zeldin said the EPA would be issuing a new rule eliminating DEF requirements for agricultural equipment after hearing repeated complaints from farmers about equipment failures. 

Read more from the Washington Examiner’s Claire Carter here. 

SENATE CONFIRMS ENERGY NOMINEES: The Senate has confirmed 49 of the president’s nominees, including several who will serve in energy and environmental agencies. 

The chamber voted 46-43 yesterday evening to confirm the nominees as part of an en bloc package. 

One of the nominees included, Stevan Pearce, who was confirmed to lead the Bureau of Land Management, despite receiving strong opposition from environmentalists and some Democrats. Pearce, who was a former New Mexico congressman, will now oversee more than 244 million acres of federal land and over 700 million acres of subsurface minerals. His nomination has been criticized over past comments he made proposing to divest some federal land to help reduce the deficit. 

“The federal government owns roughly 650 million acres of land, or 1/3 of the entire landmass of our country. Over 90% of this land is located in the Western states, and most of it we do not even need,” Pearce wrote in 2012, along with former Republican Rep. Rob Bishop of Utah. 

Other confirmed energy nominees: David LaCerte to serve as commissioner at the Federal Energy Regulatory Commission, Kyle Haustveit to serve as assistant secretary at the Department of Energy, and Douglas Weaver, who was reappointed to be commissioner at the Nuclear Regulatory Commission. 

ICYMI — PJM ALLOWED TO CURB DATA CENTER POWER USE TO AVOID BLACKOUTS: The Trump administration is taking yet another step to prevent consumers from facing unintended costs associated with surging energy demand from artificial intelligence data centers, allowing the largest grid operator in the country to curtail the power-hungry facility’s power use. 

The details: In an emergency order issued yesterday, the Department of Energy authorized PJM Interconnection to deploy backup generation resources at data centers and other large load facilities to help mitigate blackouts amid heatwaves and other times of high demand. 

The agency estimates that there is more than 35 gigawatts worth of unused backup generation available nationwide. For comparison, one megawatt is typically considered roughly the same amount of energy consumed by 400 to 900 homes annually.

The order will allow PJM to direct transmission operators to curb power sent to data centers and require them to instead use backup generation. PJM requested the order two days ago ahead of a scorching and potentially record-breaking heatwave along the North East. 

“The Trump administration is committed to unleashing all available power generation needed to keep Americans safe amid the heatwave,” Energy Secretary Chris Wright said. “The Trump administration will continue taking action to ensure that untapped backup generation can be deployed in the mid-Atlantic region as needed during the heatwave and in the future.”

The order is valid through May 20. 

RUNDOWN 

Politico How a power megamerger could lower bills — and still rile affordability politics

ProPublica Oily Sludge Is Flooding Their Dream Home. Oklahoma Regulators Say They Can’t Help.

Inside Climate News Corpus Christi Leaders Believe Data Center Plans May Be Behind Delays to Emergency Water Supply