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WORLD OIL PRODUCTION GROWS WITH HELP FROM RUSSIA, AS PRICES START TO EASE: World oil supply grew in July, helped by strong production from Russia, the International Energy Agency said Friday, helping to ease higher prices that have concerned President Trump. The growth shows Russia is doing its part to fulfill a commitment with the OPEC, agreed to in June, to collectively increase output by 1 million barrels per day in order to bring oil prices down. Russian ‘acceleration’: The IEA, in its monthly oil market report, said Russia’s crude and condensate production rose by 150,000 barrels a day last month, to 11.21 million barrels a day. That represents a “significantly sharper acceleration than expected,” IEA said. The global picture: Total global oil supply climbed 300,000 barrels per day last month, to 99.4 million barrels per day. That is 1.1 million barrels per day more than the world’s output this time last year. However, production among OPEC members was stagnant in July, staying steady at 32.18 million barrels per day, due to an unexpected decline in output from Saudi Arabia, the oil cartel’s largest producer. Saudi production declined by 110,000 barrels a day, to 10.35 million barrels a day. About-face: OPEC and Russia agreed to boost production after the oil cartel and non-member countries for almost two years curtailed production by 1.8 million barrels a day to drive up the price of crude. But Trump, and other countries, complained that prices became too high — raising gasoline prices — with Brent crude, the global benchmark, briefly reaching $80 per barrel this spring, up from below $30 in 2016. It is now about $72 per barrel. ‘Clearly welcome’: “This cooling down in prices is clearly welcome for consumers: the biggest single product market in the world is U.S. gasoline and the national average price increase seen during the spring seems to have stalled for the time being,” the IEA said. U.S. gasoline prices, however, remain the same from a month ago, at about $2.86 per barrel on average as of Friday, compared to $2.36 a year ago. Iran sanctions threat: Despite falling oil prices, the IEA warned that “with short-term supply tensions easing, currently lower prices and lower demand growth might not last.” That’s mainly because of Trump’s intention to reapply sanctions on Iran by November, and to punish countries who buy crude from Tehran. “The market outlook could be far less calm at that point than it is today,” the IEA said. Welcome to Daily on Energy, compiled by Washington Examiner Energy and Environment Writers John Siciliano (@JohnDSiciliano) and Josh Siegel (@SiegelScribe). Email [email protected] 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’S EPA TARGETS RUSSIA WITH NEW ASBESTOS RULE: The Environmental Protection Agency could become part of Trump’s crackdown on Russia by targeting the import of cancer-causing asbestos into the United States. The EPA said that new regulations to restrict the use of asbestos in the U.S. “would prevent import, including from Russia and anywhere else.” Pushing for prohibition: “Under the proposed [rule], the manufacture (including import) and processing of asbestos would be prohibited, unless EPA approved an application to allow for the manufacture and processing of asbestos in specific cases,” an EPA spokesman told the Washington Examiner. First time: When enacted, the regulation will be the first time EPA has had the power to restrict the use of asbestos, according to the spokesman. The deadline for public comment on the rule is Friday at midnight. Why Russia? Russia is of particular interest in the rulemaking because it is the largest global producer of asbestos and the second-biggest exporter of the mineral substance to the U.S. Its largest asbestos producer, Uralasbest, posted photos to its Facebook page in June showing large shipping pallets with Trump’s face emblazoned on them, apparently bound for the U.S. Spasibo: The gesture was made to thank the president and former EPA Administrator Scott Pruitt for supporting the continued use of the substance in America, according to the company. The activist group Environmental Working Group had circulated the photos in a campaign to pressure the administration to enforce a total ban on asbestos in line with other industrialized countries. EPA counters: But despite media reports that the rule could expand the use of asbestos, EPA maintains this isn’t true, and is trying to debunk it with a new public relations campaign. Still a ‘half measure’: The regulation that EPA is proposing requires manufacturers to notify EPA if they intend to use asbestos. It requires the agency to make a determination on asbestos use on a case-by-case basis, an approach the Environmental Working Group says is not as good as a total ban of the substance. Should be banned: “EPA’s proposed significant new use rule is a stopgap and a half-measure,” Melanie Benesh, the environmental group’s legislative attorney, told the Washington Examiner. “EPA should instead be taking swift measures to finally join more than 50 other countries that have banned asbestos.” ASBESTOS RULE DIDN’T PASS MUSTER WITH SOME EPA SCIENTISTS, SAYS REPORT: The EPA’s asbestos rule got pushed through despite objections by EPA’s own scientists and legal advisers, new internal emails show, the New York Times reported Friday. The newspaper obtained emails that it reported showed top EPA officials disregarded expert advice to move through the new asbestos rule that allows EPA to review uses of the toxic material on a case-by-case before deciding to allow or restrict it. A ‘clash’: The newspaper reported that the “clash over the proposal” shows tension within the agency over the the Trump administration’s agenda that calls for the roll back and rewriting of environmental rules. Skepticism: One of the emails from an official in the office of policy showed skepticism on how the rule would help the goal of limiting asbestos uses. The email was sent in May while the rule was in draft form. It was formally proposed in June. Under the law: The new rule is called for under a comprehensive chemical safety law passed in 2016. Proponents of banning asbestos had seen the bill’s passage as a step toward EPA conducting a review that would lead to a national ban. Asbestos mining is already banned in the U.S., and many of its uses for insulation and fire suppression have been banned by the EPA for years, as the agency oversees a national phase-out of the substance in older commercial and industrial sites. FEDERAL APPEALS COURT ORDERS EPA TO BAN PESTICIDE: A federal appeals court ordered the EPA on Thursday to move forward with a ban on the pesticide chlorpyrifos, after former EPA chief Scott Pruitt refused to do so before resigning in July. Judge says EPA not justified: “There was no justification for the EPA’s decision in its 2017 order to maintain a tolerance for chlorpyrifos in the face of scientific evidence that its residue on food causes neurodevelopmental damage to children,” wrote 9th Circuit Court of Appeals Judge Jed Rakoff in a 2-1 decision in the lawsuit League of United Latin American Citizens v. EPA Acting Administrator Andrew Wheeler. Violated the law: The court said the EPA violated the law by not acting on scientific data that showed the harm posed by the pesticide. The Federal Food, Drug and Cosmetic Act, the federal law for overseeing pesticide use, requires that the agency ban a pesticide if it is determined that exposure to it from ingesting food is harmful. INTERIOR’S WILDLIFE CHIEF RESIGNS AMID CHANGES TO ENDANGERED SPECIES RULES: The Interior Department’s wildlife chief resigned Thursday as the agency is in the middle of making a number of changes to how it enforces endangered species protections. Hunting in wildlife refuges: The Interior Department confirmed the departure of Greg Sheehan, the head of the Fish and Wildlife Service, saying he was an asset for advancing the goal of increased hunting in the nation’s wildlife refuges. ‘Incredible asset’: “Greg Sheehan has been an incredible asset to the Interior team and was tremendous in helping Secretary Zinke expand access for hunting and fishing on over a quarter million acres of public lands across the country,” said Interior spokeswoman Heather Swift. “We will miss working with him and wish him and his family nothing but the best.” Just over a year: Sheehan was appointed in June 2017 to be principal deputy secretary for the agency, a position carved out for him until a permanent secretary to head the agency was nominated. Over the last year, Sheehan has led Interior Secretary Ryan Zinke’s effort to expand public access for hunting and fishing across the National Wildlife Refuge System and other lands overseen by the agency. 100,000 acres: The Fish and Wildlife Service opened more than 100,000 acres of refuge lands to hunting and fishing in Trump’s first year as president, according to the agency. The timing: Sheehan is leaving at a time when the Interior Department issued three major regulations changing how it enforces the Endangered Species Act, which critics say favor developers and energy companies. Asset on endangered species: Sheehan had served on the Utah wildlife management service before coming to Washington. There, he oversaw the development of state-based management plans for the chicken-sized sage grouse, the Utah prairie dog, and other animals native to the state. The agency said he was “a key liaison” between the states and the Interior Department on Endangered Species Act issues. Unclear: It was not clear why he was leaving at such a crucial time in the development of the Trump endangered species agenda, which calls for a greater role for states in managing species’ habitat with less control from Washington. FERC COMMISSIONER CALLS FOR COMMISSION TO MAINTAIN ‘INDEPENDENCE’ AS HIS COLLEAGUE LEAVES: Richard Glick, a Democratic commissioner of the Federal Energy Regulatory Commission, expressed sadness Friday for the departure of his Republican colleague, Robert Powelson, on his last day. “Bittersweet day today at @FERC,” Glick said in a Twitter post. “I am happy for @FERCRPowelson as he moves on to an exciting position but am sad for the Commission which is losing an independent voice at a time when independence is most needed.” Power shift: Glick is concerned the balance of FERC could change without Powelson, as it prepares to likely weigh in on a push from the Trump administration to subsidize money-losing coal and nuclear plants. Powelson, who has been in office for about a year, became known as a fierce defender of competitive markets, and especially outspoken against coal and nuclear subsidies. He is returning to his home state of Pennsylvania, to become the president and CEO of the National Association of Water Companies. Trump-allied replacement: Trump plans to nominate Bernard McNamee, the head of the Energy Department’s Office of Policy, to fill Powelson’s seat, Politico reported Wednesday. The move would replace an opponent of Trump’s efforts to subsidize money-losing coal and nuclear plants with someone involved in drafting the plans that the panel has so far rejected. FERC, an independent agency, in January unanimously rejected a proposal from Energy Secretary Rick Perry to provide special payments to coal and nuclear plants for their ability to store fuel on-site for 90 days. McNamee helped write the proposal and sell it to Congress. If nominated, McNamee would have to be confirmed by the Senate to join FERC. He would fill a commission that has two Republicans, Chairman Kevin McIntyre, and Neal Chatterjee, and two Democrats, Cheryl LaFleur and Glick. SEN. RON JOHNSON DEMANDS TRUMP EXPLAIN ‘ARBITRARY’ STEEL TARIFF EXEMPTION PROCESS: Sen. Ron Johnson, R-Wis., demanded on Thursday that the Trump administration better explain its process for how some companies are granted exemptions to steel tariffs, claiming that businesses in his Midwest state find decisions to be “arbitrary.” Johnson, whose state hosts the second most manufacturing-heavy job market in the U.S., wrote to Commerce Secretary Wilbur Ross that the administration’s denial of an exemption request for one Wisconsin business cost it $2.6 million. Shared ‘frustration’: “Across the country, many businesses share the same frustration about the difficult and time-consuming process,” wrote Johnson, the chairman of the Homeland Security Committee. Many industries, including the oil and gas sector, have complained about the Commerce Department’s process for considering exemptions to President Trump’s 25 percent tariff on steel. Process matters: Under the process, people or companies that use steel in their business or supply steel to users in the U.S. may apply for an exemption. But people and companies that oppose each proposed exclusion can also submit objections. The administration said applicants must make separate exemption requests for each product. Oil and gas complaints: Last month, the main U.S. oil and gas trade group scolded the Trump administration for denying its requests for relief from tariffs on imported steel. The American Petroleum Institute says the type of steel used in pipelines and other energy infrastructure is a niche market, and most domestic steel producers have left the pipeline market because of its high costs. ANOTHER CALIFORNIA WILDFIRE THREATENS THOUSANDS OF HOMES: Another California wildfire is threatening thousands of homes. The Holy Fire, approaching a lakeside community southeast of Los Angeles, has forced more than 21,000 people to evacuate their homes, Reuters reported Friday. Emergency order: Gov. Jerry Brown declared a state of emergency for the area Thursday. The fire is only five percent contained. It was fueled by dry brush and erratic winds, California fire officials say. Fire toll: There are still several wildfires burning across California. The Carr Fire, the most deadly of them, is now blamed for eight deaths, after a mechanic helping to fight it was killed in a traffic accident Thursday, Reuters said. It has destroyed more than 1,000 homes, and is 49 percent contained. The Mendocino Complex fire is the largest on record in the state, with firefighters expect the fires to keep burning for at least the rest of the month. California has deployed the most firefighters in the state’s history — more than 13,000 — and firefighters from more than a dozen states are helping. TRUMP ADMINISTRATION OFFICIALS TO TOUR BURNT CALIFORNIA AREAS MONDAY: Interior Secretary Ryan Zinke and Agriculture Secretary Sonny Perdue on Monday plan to see first-hand the toll of the Carr Fire in Redding, Calif. Perdue said in a Twitter post Thursday night that he and Zinke would meet with local leaders and firefighters to show support. ‘Strongest support’: “Going to Redding, CA Monday w/@SecretaryZinke, meeting firefighters & local leaders about the #CarrFire,” he said in the tweet. “More than 7,000 @forestservice personnel are engaged there & w/fires across the U.S. @POTUS gives his strongest support and has multi-agency response.” Pouring water on unity: Despite the portrayal of unity, the president and his administration have rankled California leaders by blaming state environmental laws, and other actions, for the fires, and neglecting to attribute worsening fire seasons to climate change. Zinke on Thursday said “radical environmentalists” have blocked progress in preventing wildfires, and has called for improvements to forest management policies, saying that the “overload of dead and diseased timber in the forests makes the fires worse and more deadly. The Trump administration, meanwhile, issued a directive Wednesday to allow California easier access to water to fight the wildfires. But state officials, and firefighters, say more water isn’t needed, and some observers and environmentalists are calling the move a political stunt since the action appeared to be a response to Trump tweets. RICK PERRY TO VISIT NORTH DAKOTA COAL MINE: Energy Secretary Rick Perry, meanwhile, will be making the rounds in North Dakota on Monday to tour the Falkirk coal mine. He will participate in a roundtable with local energy leaders, along with the Republican members of the state’s congressional delegation, Sen. John Hoeven and Rep. Kevin Cramer. ‘Clean’ coal: Perry will also be touring two “cutting-edge” carbon capture and storage projects that can capture emissions from power plants and store them underground, Hoeven said. “Among other things, we have two cutting-edge carbon capture and sequestration projects, Project Tundra, which will be used to retrofit existing power plants, and the Allam Cycle, a supercritical CO2 technology for new coal and natural gas plants,” Hoeven said in a statement. RUNDOWN Reuters U.S. oil reserve release will not guarantee lower pump prices E&E News Relaxed fuel standards could jeopardize Arizona’s air quality Washington Post In Florida, an environmental crisis takes center stage in tight Senate race Wall Street Journal Sanctions busters smuggled North Korean coal to South Korea via Russia New York Times 2018 is shaping up to be the fourth-hottest year on record. Yet we’re not prepared for global warming |
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CalendarFRIDAY | August 10 11:59 p.m., EPA’s deadline for filing comments on asbestos rule. MONDAY | August 13 All day, California. The 2018 American Council for an Energy-Efficient Economy holds its 20th biennial conference on Energy Efficiency in Buildings through August 17. WEDNESDAY | August 15 4 p.m., 366 Dirksen. Senate Energy and Natural Resources Committee’s National Parks Subcommittee holds a hearing on a number of national parks-related bills. THURSDAY | August 16 10 a.m., 366 Dirksen. Senate Energy and Natural Resources Committee holds a hearing on the nominations of William Cooper to be general counsel at the Energy Department; and Lane Genatowski to be director of the Energy Department Advanced Research Projects Agency-Energy. 10 a.m., 406 Dirksen. The Senate Environment and Public Works Committee holds a hearing on “Implementation of Clean Water Act Section 401” and S.3303, the “Water Quality Certification Improvement Act of 2018.” |