Daily on Energy: Quote of the week, Hungary seeks oil waiver, and a ‘drill, baby, drill’ update

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: After Democrats successfully campaigned on rising energy and electricity prices in Tuesday’s elections, some Republicans are wishing their own candidates had used similar messaging and are urging the GOP to do so in the 2026 midterms. 

“When I saw the exit polls for New York, affordability was a leading issue,” Daniel Turner, founder and executive director of the conservative energy policy non-profit Power the Future, told the Washington Examiner this week. “It was a missed opportunity to talk about it.”

TRUMP ‘LOOKING AT’ EXEMPTING HUNGARY FROM RUSSIAN OIL SANCTIONS: President Donald Trump confirmed this afternoon that he is “looking at” allowing Hungary to continue importing oil and energy products from Russia, circumventing steep U.S. sanctions. 

The details: Hungarian Prime Minister Viktor Orbán met with Trump at the White House today and it was clear ahead of the meeting that Orbán would seek approval from the U.S. to keep buying Russian crude. 

When pressed on the matter, Trump told reporters, “We’re looking at it because it’s very difficult for him to get the oil and gas from other areas.”

Hungary is broadly considered to be the largest importer of Russian oil and gas within the European Union. In September, the country purchased more than $450 million worth of Russian fossil fuels, including nearly $200 million worth of crude alone, according to estimates from the Centre for Research on Energy and Clean Air. Analysts estimate that Hungary is roughly 86% reliant on Russia for oil. 

“We are supplied by pipelines. Pipeline is not an ideological political issue,” Orbán told members of the press. “It’s a physical reality, because we don’t have fault exactly as the President told you. So we will negotiate on that point.” 

Read more on Orbán’s meeting with Trump from the Examiner’s Christian Datoc and Naomi Lim here. 

U.S. SANCTIONS CONTINUE TO DISRUPT RUSSIAN OIL OPERATIONS: Russia’s second-largest oil company, Lukoil, is facing increased pressure caused by the Trump administration’s latest round of sanctions as its deal to sell off its international assets has reportedly fallen apart.

Swiss commodity trader Gunvor confirmed to Reuters that it has withdrawn its proposal to purchase Lukoil’s international assets, as the U.S. Treasury called the firm Russia’s “puppet.” 

Quick reminder: Last week, Lukoil announced that it planned to sell its international assets – which include refineries, drilling operations, and gas stations located in Egypt, Azerbaijan, Uzbekistan, Iraq, and the U.S. – to Gunvor. Financial details of the deal were not immediately made public, but some analysts suggested that these assets were worth around $12 billion. 

U.S. pushback: The deal was in direct response to Trump’s new sanctions on Russian energy majors Rosneft and Lukoil in the administration’s latest attempt to reduce the revenue Moscow earns for its war in Ukraine. But the Trump administration won’t be letting the Russian firms get off so easily. 

On Wednesday, the Treasury Department lambasted the proposed deal, writing in a post to X, “President Trump has been clear that the war must end immediately. As long as Putin continues the senseless killings, the Kremlin’s puppet, Gunvor, will never get a license to operate and profit.” 

While Gunvor told Reuters that the Treasury’s statement was “fundamentally misinformed and false,” the Swiss trader pulled their bid. 

‘DRILL, BABY, DRILL’ UPDATE: Oil and gas drilling remains fairly volatile as the number of domestic active drilling rigs continues to flip-flop, slightly increasing this week. 

The details: Data released by Baker Hughes this afternoon shows that the U.S. added two new rigs this week, bringing its total number of active rigs to 548. Both of the rigs that were added are located on land and will be used for producing gas. 

While a positive sign for domestic drillers, the total number of active rigs is still far below the number active at this time last year. Around early November 2024, Baker Hughes reported there were 585 active rigs in the U.S. 

The oil industry is likely to see some reprieve through the end of the year, as a prediction market on Kalshi indicates there will be around 418 oil rigs by the end of the year. Baker Hughes currently estimates that there are 414 active oil rigs in the U.S. as of this week. 

Where prices stand: Meanwhile, the cost of oil was headed for another weekly loss this afternoon, with domestic benchmarks dipping below that $60 per barrel line. 

Just before 2:30 p.m. EST, West Texas Intermediate was up from yesterday by 0.5% and selling at $59.72. International benchmark Brent Crude was also up from yesterday’s close by 0.36% and priced at $63.61 per barrel. 

EPA APPROVES OVER A DOZEN SMALL REFINERY BIOFUELS WAIVERS: The Environmental Protection Agency issued decisions on 16 petitions from small refineries looking to be exempt from federal biofuel standards. 

Some background: Renewable Fuel Standard requirements mandate refineries to blend billions of gallons of ethanol and other biofuels into their product annually. However, smaller firms are permitted to request an exemption, if they can prove it would cause them “economic hardship.” 

Today, the EPA granted two additional full exemptions as well as 12 partial exemptions for small refineries. The agency also denied two petitions that it received. All 16 petitions came from eight refineries regarding obligations for compliance years 2021-2024. 

“Today’s announcement is part of the Trump EPA’s commitment to get the RFS program back on track with an approach that recognizes some small refineries are impacted more significantly than others and that EPA’s relief should reflect those differences,” the agency said. 

The move comes just months after the agency granted 140 exemptions for small refineries from Renewable Fuel Standard requirements. 

INTERIOR SCHEDULES GULF OIL AND GAS LEASE SALE: The Interior Department’s Bureau of Ocean Energy Management announced today that it is scheduling an oil and gas lease sale for the renamed Gulf of America, one required under the One Big Beautiful Bill Act, for Dec. 10.

The agency said that roughly 80 million acres would be available and that it was setting the lowest royalty rate permitted – 12.5% – “to encourage strong industry participation.”

The OBBBA mandates 30 lease sales in the Gulf, and the administration is set to outline plans for a schedule for sales for the next five years in the coming weeks. 

BOEM also on Friday said it planned to make 1 million acres in Alaska’s Cook Inlet available for a lease sale in March. The agency will open a 60-day comment period on the sale starting Nov. 10. The Cook Inlet lease sale has been scheduled for March 4 of next year.  

MP MATERIALS CEO WARNS INVESTORS ON RARE EARTHS STOCKS: MP Materials CEO James Litinsky warned investors on the company’s third-quarter earnings call last night that other rare earths miners would not be able to replicate what his company is doing and counseled caution as stocks for producers swing wildly. 

He said that MP Materials is “America’s national champion,” according to CNBC, referencing the Trump administration’s deal to take a stake in the company and guarantee a price floor for its product. 

“We’re years and billions ahead of others,” he added, saying that the vast majority of projects being promoted will not work. 

Rare-earth producer stocks have swung wildly in recent weeks, especially on the updates regarding Trump administration talks with China over China’s move to significantly limit exports of rare earths and related materials. 

MP Materials itself has seen its shares drop by more than a quarter over the past month. But its shares were up 14% as of this afternoon. 

WHO FROM THE U.S. IS ATTENDING COP30: While the Trump administration will not be sending any high-level officials to COP30 next week, conference attendees can expect to see dozens of state and local officials from a number of U.S. states. 

Late last month, several climate-related coalitions (America Is All In, Climate Mayors, and the U.S. Climate Alliance) announced that they were supporting a delegation of more than 100 local leaders for the conference. This delegation includes several governors, mayors, former administration officials, and other city leaders. 

Wisconsin Gov. Tony Evers, New Mexico Gov. Michelle Lujan Grisham, Phoenix Mayor Kate Gallego, and former Biden EPA administrator Gina McCarthy are among those who will be in attendance. 

“American cities have always been at the forefront of innovation and climate action, and mayors across the country are doubling down to fill the current void of leadership at the federal level,” Gallego said in a statement. 

The highest-profile government representative from the U.S. that will be in attendance is expected to be California Gov. Gavin Newsom. Newsom’s office confirmed this week that the Democratic governor – and frequent Trump sparring partner – will be delivering plenary remarks and participating in fireside chats at the conference. 

While in Brazil, Newsom is expected to deliver remarks at the Milken Institute Global Investors’ Symposium in São Paulo and travel to the Amazon to meet with local community leaders. 

ICYMI – FORD WEIGHS SCRAPPING F-150 LIGHTNING: Just after we sent out the newsletter yesterday, the Wall Street Journal reported that Ford is considering canceling the F-150 Lightning, once envisioned as the flagship EV offering for the company. 

The possibility indicates an overall lack of demand for electric trucks. The end of the F-150 would follow trouble for electric truck models offered by Stellantis and General Motors, as well as recent struggles with truck demand for Tesla and Rivian. 

Ford had already paused production of the Lightning last month because of an aluminum shortage, according to the WSJ, and is considering keeping the plant idle as it shifts to the smaller EV models that are more in demand. 

RUNDOWN 

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