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WHAT’S HAPPENING TODAY: Good afternoon and happy Friday, Daily on Energy readers! D.C. is gearing up for its fastest weekend yet, with the Freedom 250 Grand Prix taking place around the National Mall. 🏎️🏁 Twenty-five drivers will be racing around the district, passing by iconic landmarks like the U.S. Capitol and the Washington Monument. Will you be tuning in?
- ⚡🤖 Senate hopeful Mike Rogers is calling for a one-year moratorium on data center development in Michigan, setting a new precedent for Republicans on the policy issue. See what he had to tell us about it below.
- ☢️🏄 As momentum grows in the California legislature to create a pathway for more nuclear energy, we took a look at what Xavier Becerra – the frontrunner for governor – thinks about the carbon-free technology.
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
“The world does not need an artificial intelligence that diminishes humanity; rather, it needs human intelligence enlightened by wisdom, political authority guided by conscience and technological innovation directed by charity. Only then will artificial intelligence become not a rival to humanity but a servant of the common good,” Pope Leo XIV wrote on X.
He has previously called for regulations on the technology. The pope also called for “sound legislation” on AI to safeguard fundamental human rights and freedom.
MIKE ROGERS AT THE FRONTIER OF DATA CENTER POLITICS:
Mike Rogers’ call for a one-year moratorium on data center construction shows just how quickly the political landscape has shifted on this topic.
What Rogers said: Rogers told reporters yesterday on the campaign trail that a one-year pause on development is needed so officials can answer all the questions that residents have on the facilities.
In a statement to Daily on Energy explaining his support for a moratorium, Rogers said: “While I don’t support a federal ban, Michigan needs stronger guardrails to protect community control, prevent utility price hikes, protect our water and stop pay-to-play schemes.”
What it means: By going further than any other Republican nominee in calling for a halt to data center construction, Rogers is showing how much of a threat the anti-data-center backlash poses to candidates.
We saw, earlier this week, the National Republican Senatorial Committee essentially send out an SOS to the AI industry in the form of a memo warning that the data center backlash could doom Sen. Jon Husted’s reelection effort in Ohio.
It’s worth noting that Husted himself has said that data center development should be left up to localities, but has introduced legislation requiring data center companies to pay for the power they use and return excess electricity to the grid.
Rogers has now gone well beyond that.
In fact, his Democratic opponent, Abdul el Sayed, has stopped short of calling for a moratorium, despite being endorsed by prominent left-wing moratorium supporters Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez. He has instead proposed “Terms of Engagement” that would require data centers to pay for their own energy, provide reliability guarantees, and more.
El Sayed also joined a protest against the construction of a data center facility in Saline Township, Michigan.
Rogers’s shift is just one of a number of recent reversals on data centers by high-profile politicians. This week, for instance, Pennsylvania Gov. Josh Shapiro, often mentioned as a top possibility for the Democrat presidential nomination in 2028, executed a further pivot away from his previous strongly pro-AI and data center stance.
Will other Republicans in tough Senate races follow Rogers’s lead? We will be keeping track.
WHERE DOES XAVIER BECERRA STAND ON NUCLEAR ENERGY?
Xavier Becerra is well positioned to be the next governor of California, and, with just three months until Election Day, he still hasn’t exactly spelled out a clear stance on nuclear energy.
If elected, Becerra is quickly going to be faced with a decision on whether to extend the operations of the state’s only nuclear power plant, Diablo Canyon, until 2045.
Approving the plant’s operations would send a major signal that the next administration in California would be in support of creating a pathway for nuclear power to develop even further to meet growing energy demands brought on by AI while also hitting the state’s ambitious climate goals.
What has he said so far? During a May debate ahead of the California primary, several gubernatorial candidates were asked if they would support extending Diablo Canyon’s life span. All of the candidates, Republican and Democratic, indicated they would support the extension. But Becerra added a caveat.
“Yes, but safety first,” he said.
More broadly, Becerra has not highlighted nuclear power as part of his energy strategy. Instead, the Democrat has focused his campaign policies on affordability and decarbonization.
While serving in Congress, Becerra also voted against the Energy Policy Act of 2005, which was designed to promote the construction of nuclear reactors under the Bush administration.
When asked for clarification on his views regarding nuclear energy in California, Becerra’s campaign pointed to his public comments that expressed support for extending Diablo Canyon’s operations in a safe manner.
Why the avoidance? Democrats, and California Democrats in particular, have long been resistant to the idea of building nuclear power plants, out of concerns regarding public health, radioactive waste, and the risk of earthquakes in California.
“There is a fear here that – that you know nuclear power is a disaster waiting to happen, and I don’t think that – I don’t think that fear has dissipated in the public consciousness,” Garry South, a veteran Democratic strategist in California, told Callie.
“I think that any, any viable candidate for governor would be relatively foolish I think to, as part of their energy policy, to start talking about how we want to commission more nuclear power plants,” he continued.
Be sure to keep an eye out for a more in-depth report from Callie this weekend on what decisions the next governor of California will be forced to make about nuclear energy.
All the rest
OIL TICKS UP AND PRICES COULD GO EVEN HIGHER: The standoff between the U.S. and Iran continues, sending oil prices higher despite the Trump administration’s insistence that oil is moving out of the Strait of Hormuz.
Just before 3 p.m. EDT, Brent crude was nearing the $95 line, rising by 0.64% to sell at $94.38 a barrel. West Texas Intermediate also rose 0.33% and was priced at $87.13 a barrel.
With there being few signs of geopolitical tensions easing in the Middle East, some analysts are warning that prices could dramatically rise after markets close this weekend.
In a video shared on social media this week, veteran oil trader Troy Eckard said he believed there would be a significant rebound in prices leading into Monday. His reasoning? Most traders have been waiting to buy. But the end of the month is nearing and they will need to fulfill their contracts. This, coupled with a limitation in supply, is going to cause prices to spike.
“From my history, 40 years of doing this, I believe you’re going to see some real robust trading starting around the 22nd or 23rd, and that could be a $5 to $15 a barrel increase,” he said.
If accurate, this could send Brent crude well over $100 a barrel once again.
CALIFORNIA, ARIZONA, AND NEVADA SPARED FROM NEW COLORADO RIVER CUTS: The Interior Department released its short-term plan for how to manage the Colorado River, including how much states should cut their water use to conserve the river. And luckily for three states, the short-term cuts aren’t as dramatic as feared.
The agency said today that it is requiring California, Arizona, and Nevada to reduce their water use by 1.25 million acre-feet per year in 2027 and 2028. These states, known as the Lower Basin states, are also being encouraged to conserve and store an additional 700,000 acre-feet over the same time period.
This aligns with a plan the three states put forward previously, and is far less aggressive than what the administration said it was intending to cut as part of its 10-year management plan.
Quick reminder: Earlier this summer, the Trump administration said it was proposing water cuts to California, Arizona, and Nevada of up to 3 million acre-feet per year. The states criticized the proposal, saying it would hurt local economics and even the government’s AI agenda.
“Inequitable, federally imposed cuts to our Colorado River water allocation will be unacceptable to Arizonans, and will put every American at risk,” Arizona’s Democratic Gov. Katie Hobbs said at the time. “Previous federal proposals to slash Arizona’s Colorado River water would be devastating for our nation as we work to compete with China in the AI race, onshore critical supply chains, feed the country, and rebuild our depleted missile stockpile.”
VENEZUELA HITS ROADBLOCK FOR EXPORTING MORE OIL: One could argue that the Trump administration’s revival of the Venezuelan oil industry has moved too quickly, as the aging terminals in the country are reportedly being forced to put export caps on new production.
Reuters reports that tankers looking to load up on the heavy Venezuelan crude are now being forced to wait up to 30 days. This is in part due to aging infrastructure at the export terminals, power outages, and quality issues.
These are causing delivery delays not seen since the U.S. imposed a naval blockade on Venezuelan exports last year.
According to the report, much of the $100 billion energy reconstruction plan from the Trump administration for Venezuela’s oil industry has been focused on increasing actual output. Downstream projects, including repairs to export terminals and oil refineries, are not at the top of the list.
Key quote: “The speed of crude transfers from tanks to vessels is incredibly slow, which forces tankers to occupy docks for longer than their assigned loading windows,” a source with the state energy firm PDVSA told the outlet. “And if a ship arrives to discharge imports, it takes even longer due to lack of fuel storage capacity.”
TENS OF THOUSANDS REMAIN WITHOUT POWER IN NORTHWEST INDIANA: Tens of thousands of people in northwest Indiana have remained without power after a storm ripped through the area 10 days ago.
As of Friday morning, about 44,400 customers remain without power, according to the Northern Indiana Public Service Company. A storm swept through the area on Aug. 11, taking down trees and power lines, leaving nearly 374,500 residents without electricity.
The Northern Indiana Public Service Company said power won’t be fully restored in some places until Tuesday.
ICYMI – EPA ISSUES FUEL WAIVER TO LOWER GAS PRICES: The Environmental Protection Agency issued a waiver yesterday to end summer-blend gasoline requirements early in an effort to lower gas prices.
The waiver would allow for the sale of 10% ethanol blend or E10 gasoline with higher Reid Vapor Pressure (RVP) beginning Sept. 1, which is about two weeks earlier than normal.
The EPA said the waiver would increase the domestic supply by hundreds of thousands of barrels per day by ending the summer-blend requirements early, which typically last until Sept. 15.
RUNDOWN
New York Times Spike in ‘Dark’ Oil Tankers in Gulf Raises Risk of Catastrophic Spills
Politico White House official’s move to oil company she aided raises ethics questions
High Country News The BLM may stop notifying landowners about drilling under private land. Ranchers are alarmed |
