WHAT’S HAPPENING TODAY: Good afternoon and happy Monday, Daily on Energy readers! We’ve got another busy week ahead of us, so we hope you got some rest over the weekend.
We’re continuing to follow updates regarding the Trump administration’s bid to increase the U.S. oil industry’s presence in Venezuela 🇻🇪. After Exxon expressed hesitancy last week, the president is now weighing keeping the oil major out of his deal for security guarantees.
This week, the offshore wind industry is challenging the administration in court again over its decision to pause five wind leases 💨⚡. Rhode Island’s Revolution Wind’s case is being taken up today, while Empire Wind and Coastal Virginia Offshore Wind will be looked at later in the week. We’ll be sure to provide updates on those cases as they come.
Plus, we’re nearing the most important time of the year (at least in Callie’s view) … the 2026 Winter Olympics! ⛷️⛸️🏒🏂 The games are just 25 days away and will be held in Milano-Cortina, Italy.
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 WEIGHS BLOCKING EXXON FROM VENEZUELA DEAL: President Donald Trump is considering blocking Exxon Mobil from a deal that would provide security guarantees for major oil and gas firms to increase investment in Venezuela, as the oil giant stopped short of fully endorsing the administration’s aggressive plan to expand U.S. production in the country.
Quick reminder: On Friday, Trump hosted nearly two dozen oil executives at the White House to detail his plan to quickly expand the U.S. presence in Venezuela, as part of his broader effort to bring down oil prices at home. While many smaller firms expressed interest in launching new operations in the country, Exxon remained hesitant.
“If we look at the legal and commercial constructs and frameworks in place today in Venezuela today, it’s uninvestible. And so significant changes have to be made to those commercial frameworks, the legal system,” Exxon CEO Darren Woods said. “There has to be durable investment protections, and there has to be change to the hydrocarbon laws in the country.”
What’s new: Woods’ remarks clearly stuck with the president over the weekend, as on Sunday he threatened to keep the company out of his deal that would provide significant security guarantees to U.S. firms.
“I didn’t like Exxon’s response,” Trump said. “We have so many that want it. I’d probably be inclined to keep Exxon out. I didn’t like their response, they’re playing too cute.”
OIL AND GAS TRADE GROUP STILL WARY: Exxon Mobil isn’t alone in its concerns about quickly moving into Venezuela. American Petroleum Institute president Mike Sommers told reporters this afternoon that the primary oil and gas trade group in the U.S. sees many “hurdles” that the industry faces before expanding operations in the country.
“There are going to have to be these key prerequisites if investment is going to flow,” Sommers said. “Some of those prerequisites include security or the workforce that is down there in a place that is very – has historically been hostile to American efforts to develop those resources.”
Sommers pointed out that the industry wants to see meaningful policy changes related to the rule of law and sanctity of contracts in Venezuela in order to invest.
He threw some cold water on the president’s desire to move as quickly as possible, saying it will “take a little bit of time” to provide those assurances.
“But we’re working very closely with Secretaries [Chris] Wright and [Doug] Burgum to ensure that those prerequisites are in place and that we can invest,” he said.
Notable timing: Sommers’ comments come one day before API’s annual state of American energy event in Washington, D.C., which will feature remarks from numerous oil and gas executives, including Cheniere president and CEO Jack Fusco and Marathon Petroleum Corporation chairman, president, and CEO Maryann Mannen. Plus, there is an expected appearance from Landman actor Andy Garcia. Callie will be on the ground at tomorrow morning’s conference, so don’t be shy to say hello!
GONE WITH THE WIND: Executives leading development of offshore and onshore wind on the international stage are warning that Trump’s crackdown on the industry could stretch beyond U.S. shores.
The details: Henrik Anderson, the CEO of Europe’s largest wind turbine manufacturer Vestas, recently told the Financial Times that the halting of offshore wind projects in the U.S., as well as increased regulatory hurdles, could cause “negative spillover” in the global markets.
Anderson said the administration’s actions have caused “uncertainty” in the market, and could increase the cost of capital for future projects as some investors pull out of other projects globally.
“When you have a 20 to 30-year investment programme, the only way you can cover yourself for risk is to ask for a higher return,” Anderson told the outlet. “When you get impairments in an industry, everyone would start saying, ‘could that hit us as well?’”
As we know: Trump has long detested wind energy and reminded the public of his stance just last week. During his lengthy meeting with oil executives, Trump took several minutes to blast windmills and tout the fact that not a single one has been approved since he took office.
“My goal is to not let any windmill be built,” Trump said. ‘They’re losers. They lose money, they destroy your landscape, they kill your birds.”
The president emphasized that his administration would not approve any new wind projects, but may be forced to “do something” due to agreements made under the Biden administration.
GAS PRICES FALL, BUT RELIEF NOT EXPECTED TO LAST: Gas prices have fallen for the seventh consecutive week, with the national average price at the pump dropping to $2.73 per gallon. However, price trackers warn that the downward push won’t last.
The details: Data released this morning by GasBuddy, which compiled prices from more than 12 million individual price reports across over 150,000 gas stations nationwide, found that the average price of gasoline dropped 0.8 cents in the last week. This brings the national average down by 17 cents from a month ago and around 28.9 cents per gallon lower than this time last year.
AAA was also reporting low prices this morning, with a national average of $2.796 per gallon. According to their estimates, 43 states now have average gas prices under $3 per gallon.
The warning: The Trump administration celebrated the low prices today, with Energy Secretary Chris Wright saying it was evidence that the president’s “energy dominance agenda” was delivering lower prices. GasBuddy shot back at this assessment, saying the administration’s policies had nothing to do with the falling prices.
“This has nothing to do with ‘energy dominance agenda’ but everything to do with OPEC’s increase in oil output and refinery utilization that remains rather high, coupled with seasonally weak demand,” Patrick De Haan, head of petroleum analysis said on X. “Prices are highly likely to go up this spring.”
G7 MEETING ON CRITICAL MINERALS: The United States is hosting officials from the Group of Seven in D.C. today to discuss critical minerals amid China’s chokehold on the sector.
The G7 consists of the United States, Britain, Japan, France, Germany, Italy, Canada, and the European Union. Last June, the G7 agreed to an action plan to diversify and encourage investment in critical minerals projects.
The meeting comes as China imposed export restrictions earlier this month on rare earths and magnets to Japanese companies, which are essential for the defense sector. The restrictions follow Japan’s comments that it could deploy its military if China uses force to try to seize Taiwan. The Japanese have been reaching out to G7 leaders since China’s restrictions.
According to Bloomberg, Japanese Finance Minister Satsuki Katayama told reporters on Friday, that “The fundamental consensus among the G-7 nations is that it is unacceptable for countries to secure monopolies through non-market means.”
“This poses a crisis for the global economy and is extremely problematic for economic security,” Katayama added.
Reuters also reported that the U.S. Treasury Secretary Scott Bessent invited Australia and India to join the talks. In October, the U.S. and Australia signed a deal on critical minerals to help finance projects in both countries.
Over the past year, the Trump administration has looked abroad to other countries in an effort to diversify the supply of minerals and reduce reliance on China, which controls about 90% of the global supply.
TRUMP ADMINISTRATION TAKING STAKE IN ANOTHER CRITICAL MINERAL COMPANY: The Pentagon will take a $150 million equity stake in yet another critical mineral company as part of the Trump administration’s effort to bolster U.S. critical mineral supply chains.
The administration has invested in Atlantic Alumina Co., a Louisiana-based gallium producer, to boost alumina and gallium supply. The investment will help to increase production at the company’s large scale gallium production circuit in Gramercy, Louisiana. The company said it will produce more than one million metric tons of alumina per year and up to 50 metric tons of gallium per year.
The company said there will be additional funding from the government within 30 days of the equity closing. In addition, the firm Pinnacle has also invested $300 million in private capital. Gallium is used in defense applications like missiles, satellites, sensors, and more.
Over the past year, the Trump administration has been taking direct ownership in several critical minerals companies aimed at bolstering the supply chain and reducing reliance on China.
For example, the Trump administration has taken a 5% stake in Lithium Americas, a Canadian company developing a lithium mine and processing plant in Nevada. It has also taken a 15% direct stake in MP Materials to build a rare-earth magnet supply chain by constructing the company’s second U.S. magnet facility.
DOT SEEKS OVERHAUL OF FEDERAL PIPELINE AND FUEL TRANSPORTATION RULES: The Department of Transportation has finalized two rules and adopted a new enforcement policy aimed at reducing regulatory costs for transporting energy products across the country.
In an exclusive, the Washington Examiner’s Samantha-Jo Roth reports that the department’s Pipeline and Hazardous Materials Safety Administration updated a rule on how gas transmission pipelines are regulated when population growth changes the classification of areas around existing lines.
Previously, operators often had to reduce pressure or replace pipeline segments if population increased nearby, even when the pipeline itself remained in good condition. Instead, the new rule would allow companies to rely on modern, risk-based integrity management practices.
A second rule focuses on fuel transportation by cargo tank and targets requirements, which officials said adds cost without improving safety.
The DOT’s changes would allow video technology to be used when inspecting cargo tanks. It would also allow electronic registration for tank facilities and restore a long-standing exemption that reduces how often truckers must physically change hazard placards when transporting various petroleum fuels.
Lastly, the department issued a new enforcement policy allowing companies operating in the West, Northeast, and Alaska to seek temporary relief from specific compliance deadlines if meeting them would disrupt energy transportation, provided safety is not compromised.
EPA TO STOP CONSIDERING HUMAN LIVES WHEN REGULATING AIR POLLUTION: The Environmental Protection Agency plans to stop considering the health benefits of curbing air pollutants when regulating industry, the New York Times reports.
The New York Times reviewed internal agency emails and documents finding that the agency plans to calculate the health benefits of limiting air pollution like fine particulate matter and ozone when issuing regulations.
Fine particulate matter is tiny liquid droplets in the air, less than 2.5 micrometers in diameter, that come from power plants and other fuel combustion sources, which can pose health risks. Then, ozone is a component of smog from vehicle or industrial emissions that can worsen asthma and harm the lungs.
Zeldin responds: Just minutes ago, EPA Administrator Lee Zeldin denied the New York Times‘ reporting, saying, “Yet another dishonest, fake news claim courtesy of the New York Times. Not only is the EXACT OPPOSITE of this headline the actual truth, but the Times is already VERY WELL AWARE that EPA will still be considering lives saved when setting pollution limits.”
A LOOK AHEAD:
Jan. 13 The American Petroleum Institute is holding its annual state of American energy event in Washington D.C.
Jan. 13 The House Natural Resources subcommittee on energy and mineral resources is holding a legislative hearing for a marine fisheries habitat protection bill.
Jan. 13 The House Natural Resources subcommittee on water, wildlife, and fisheries is holding a hearing titled “Hunting and Fishing Access in the Great American Outdoors.”
Jan. 13 The House Energy and Commerce subcommittee on energy is holding a hearing looking at cyber and physical threats to domestic energy infrastructure.
Jan. 13 The House Science, Space, and Technology subcommittee on environment is holding a hearing looking at how weather satellites support national security.
Jan. 14 The American Enterprise Institute is hosting a one-day conference in Washington D.C. titled “Powering Prosperity and the New Electricity Economy,” featuring a keynote address by the National Energy Dominance Council’s Peter Lake.
Jan. 14 Resources for the Future is holding its annual “Big Decisions” event, exploring policy issues that are top of mind for lawmakers as it relates to climate, energy and the environment.
Jan. 14 The House Natural Resources subcommittee on federal lands is holding a legislative hearing.
Jan. 14 – 24 The Detroit Auto Show is taking place.
Jan. 15 The American Gas Association is presenting its report on the state of American natural gas.
Jan. 15 The USEA State of Energy Industry Forum is taking place, featuring remarks from Energy Secretary Chris Wright.
RUNDOWN
Canary Media 2025 wasn’t a great year for green steel ambitions. What happens now?
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