WHAT’S HAPPENING TODAY: Good afternoon and happy Cinco de Mayo, readers! OPEC+ decided to increase production for the second time over the weekend, causing prices to slump again this morning.
Republicans are continuing their use of the Congressional Review Act this week to undo a number of Biden administration regulations and are now targeting rubber tire emissions standards.
Keep reading to find out when the European Union is hoping to end all existing Russian energy contracts.
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.
OIL PRICES PLUNGE AFTER OPEC+ BOOSTS OUTPUT: Oil prices slumped again on Monday just days after OPEC+ said it would be accelerating production for the second month in a row.
The details: As of 3 p.m. EST, both international and domestic benchmarks had fallen to or just below the $60 per barrel line. Brent Crude had fallen by 1.7% to trade at just over $60 per barrel. Similarly, West Texas Intermediate had dropped by 2% and was selling at $57.15 per barrel.
Over the weekend, OPEC+ said it would again boost its oil output in June by roughly three times more than what was expected. Starting next month, member countries, including Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, would be increasing production by 411,000 barrels a day. This is dramatically higher than the roughly 137,000 that had been anticipated, but matches the output increase announced for May.
Some background: Tensions have been growing amongst OPEC+ members for weeks, as Saudi Arabian officials indicated late last month that the kingdom would not prop up the market by cutting supply. Saudi Arabia, often viewed as a primary leader within the group, has been looking to boost ties to Washington since Trump took office. And as Trump has repeatedly called for more oil to be pumped into the market, in order to bring down costs for consumers, it comes as no surprise that the kingdom is seeking to keep production levels high.
Analysts, however, have been warning that accelerated production levels from OPEC+ may have an unintended effect on production growth within the U.S. when combined with increased supply chain costs for developments.
EUROPEAN UNION TO SET DEADLINE FOR ENDING RUSSIAN ENERGY CONTRACTS: The European Union is reportedly planning to order companies within the bloc to end all remaining energy contracts with Moscow by 2027.
The details: Officials with the European Commission confirmed to the Financial Times today that the executive branch plans to announce the deadline tomorrow.
Four officials briefed on the decision told the outlet that the announcement will call on EU companies to end spot market gas contracts with Russian suppliers by the end of 2025 and sever any long-term contracts within the next two years. Once made public, the proposed deadline will still need to be approved by a majority of EU member states, as well as the European Parliament.
While the EU has long expressed interest in ending its reliance on Russia energy, there have been concerns that doing so would increase energy prices or prompt Moscow to work around any bans by sending its supply to Europe through other countries like Azerbaijan. Still, the EU is ramping up its efforts to purchase more liquefied natural gas from the U.S. to help fill any gaps and reduce the impact of Trump’s looming tariffs this summer.
DOE DELAYS CLEAN ENERGY REGULATIONS FOR FEDERAL BUILDINGS: The Energy Department announced it would delay the compliance date by one year for the Biden administration’s rule that would phase out fossil fuel consumption in federal buildings.
“Under President Trump’s leadership, the Department of Energy is embracing a strategy of energy addition – leveraging all sources that are affordable, reliable and secure,” Energy Secretary Chris Wright said in a statement. “This pause will ensure that our federal buildings are able to utilize the most efficient power available, lowering costs and reducing regulatory overreach.”
Last year, the Biden administration finalized regulations that would require federal buildings to reduce 90% of their fossil fuel consumption by 2025 and reach net-zero by 2030.
Trump’s DOE said it is reviewing the implementation guidance and a template for petitions for downward adjustments. The agency added that it is reviewing the regulation to ensure it is aligned with the administration’s priorities.
U.S. LOOKS TO WEAKEN GLOBAL CLIMATE-RELATED FINANCING EFFORTS: The Trump administration is taking its agenda against climate-related programs and funding abroad as it looks to weaken a global financial system aimed at supporting developing countries struggling with the effects of climate change.
Some background: An internal United Nations document reviewed by Reuters reportedly shows that U.S. officials are opposed to draft reforms set to be introduced at the 4th International Conference on Financing for Development (FFD4) in June. The conference, which takes place once every decade, is meant to set financing development goals for the next 10 years including regarding efforts to combat climate change and phase out fossil fuels. One of the primary goals has been to help poorer and developing countries with this aid.
The details: The Trump administration is reportedly moving to water down climate-related reforms proposed this year, including calling for the removal of references to “climate,” “sustainability,” and “gender equality,” according to the document.
The administration’s opposition primarily appears to center around levels of commitments required from nations like the U.S., in line with the president’s “America First” agenda. For example, U.S. officials have objected to provisions that call on nations to support “global solidarity levies” that might include taxes on activities that emit high levels of pollution, Reuters reported.
Additionally, the administration is looking to reform sections focused on phasing out subsidies for fossil fuels and a commitment from wealthier countries to provide “adequate and uninterrupted funding on appropriate terms of social protection and other essential social spending during shocks and crises,” according to the document.
As the U.S. is the largest shareholder in the World Bank and the International Monetary Fund, its opposition could force other nations to accept a weaker final deal in June. However, as the U.S. has pulled out of many international climate talks in recent months, other western countries have insisted that a lack of U.S. involvement will not derail global climate reform efforts.
SENATORS SLATED TO VOTE ON RUBBER TIRE EMISSION STANDARDS: The Senate will vote this week on a resolution that would overturn the Biden administration’s emission standards on tire manufacturing.
The resolution would undo an Environmental Protection Agency’s standards relating to hazardous air pollutants from rubber tire facilities. The standards, which were finalized last November, are aimed at protecting public health from toxic emissions that come from tire manufacturing facilities.
The Congressional Review Act resolution passed the House in March. Sens. Tim Scott and Roger Wicker sponsored the resolution in the Senate.
Republicans argue that the rule increases compliance costs for the industry and results in higher prices for consumers. The agency at the time estimated that the standards would cost the industry approximately $13.3 million per year.
The CRA has been used by Republican lawmakers to overturn Biden administration energy and climate regulations that do not align with the current administration’s agenda. The CRA allows lawmakers to bypass a filibuster and vote in a simple majority in both chambers to cancel a federal regulation.
If the CRA passes this week, it will be sent to the White House for President Donald Trump to sign into law.
SUPPORT FOR CLIMATE REFORM WILL COME BACK, BILL GATES SAYS: While the Trump administration has been walking back years of efforts to mitigate climate change while increasing support for the fossil fuel industry, billionaire businessman Bill Gates said he believes that it is a trend that won’t last long.
The details: While speaking at Temasek Holdings Pte’s Ecosperity Week conference in Singapore today, Gates said rolling back U.S. international advocacy for policies to curb climate change “works against us.”
“This current trend, where there’s a little less cooperation going on, I don’t think that’s a permanent thing,” the Microsoft co-founder said, according to Bloomberg.
Gates insisted there is still “a lot of commitment” within the U.S. to efforts aimed at limit climate change. And while he is confident the current administration’s efforts are just temporary, transitioning back to cleaner sources of energy may not happen overnight.
TESLA SALES DROP IN SPAIN: Tesla sales in Spain dropped by 36% in April compared to the same month last year, Reuters reports.
Despite new car sales for Tesla dropping, sales of other electric vehicles surged last month. The outlet said that for the first four months Tesla’s sales in Spain have dropped 17% from the same period last year. Meanwhile, electric and hybrid car sales of other brands have increased by 54% in Spain.
The drop in sales comes as Tesla tries to compete with European and Chinese EV companies that have surpassed the American EV company in sales and technology.
As of this year, Reuters said, sales of Chinese automakers BYD, MG, and Omoda were up 644%, 80%, and 346%.
ICYMI – EXXON MOBIL TO INVEST IN CARBON CAPTURE: During the company’s first quarter earnings call on Friday, ExxonMobil Chief Financial Officer Kathryn Mikells said the “biggest thing” the company is investing in this year is carbon capture and storage, adding that the company would bring on their first customer in that CCS business.
“We have the permanent storage. We’ve drilled the wells. We’ve got the monitoring put in place, and so we’re feeling very good about how that business is progressing,” Mikells said.
She added that low-carbon projects have resulted in “$30 billion of our total [capital expenditure] from 2024 through 2030. It’s about 10% of our total CapEx. But if you look at all the different projects we have in the low-carbon space, they’re progressing pretty well right now.”
ExxonMobil has reported lower earnings of $7.71 billion or $1.76 per share, down from $8.22 billion or $2.06 per share in the first quarter of last year.
A LOOK AHEAD:
May 6 – 7 The California Energy Transition Summit will be held in Sacramento, California.
May 6 The House Committee on Natural Resources is beginning its markup on its piece of the Republicans’ reconciliation package.
May 6 The Environmental and Energy Study Institute is holding a briefing titled, “ Risky Business: Insurance in the Era of Climate Change.”
May 6 The Center for Strategic and International Studies is holding a webinar assessing U.S. and Canadian cooperation regarding critical minerals.
May 6 Axios is holding a reception titled “Shoring Up Supply Chains for Critical Minerals” in Washington D.C.
May 7 Citizens for Responsible Energy Solutions is holding its 2025 Energy Leadership Summit on Capitol Hill.
May 7 Energy Secretary Chris Wright is appearing before the House Appropriations Committee to discuss the Department of Energy budget.
May 8 The Interstate Natural Gas Association of America is holding its Communications and Government Affairs meeting in Washington D.C., which will include a panel featuring Callie Patteson.
May 8 The Association of the United States Army set to hold a webinar on the importance of energy to the Army’s mission.
May 8 The Center for American Progress is holding a webinar titled “Managing the Climate Change-Fueled Insurance Crisis,” featuring remarks from Sen. Sheldon Whitehouse (D-RI).
May 8 The New England Women in Energy and Environment Annual Awards Gala is set to be held in Boston.
May 8 The Senate Energy and Natural Resources committee is meeting to consider the nominations of William Doffermyre to be the Solicitor of the Interior Department, Catherine Jereza to be an assistant secretary of electricity for DOE and Kyle Haustveit to be an assistant secretary of fossil energy for DOE.
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