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— All eyes are on oil prices following an attack over the weekend to the world’s largest oil processing facility.
— President Donald Trump could unveil his plan for the Renewable Fuel Standard this week, which as it stands would provide significant boosts to biofuels.
— Groups backed by the likes of Exxon Mobil and the Koch empire are waging a state-by-state battle to counter utility companies’ plans to build electric vehicle charging stations across the country.
WELCOME TO MONDAY! I’m your host, Kelsey Tamborrino. Association of American Railroads’ Jordan Stone knew William R. King was sworn in as vice president in 1853, while in Havana, Cuba. For today: The first African American woman in Congress also ran for what other office in 1972? Send your tips, energy gossip and comments to ktamborrino@politico.com.
ALL EYES ON OIL PRICES: Oil prices shot higher Sunday night following attacks by Houthi rebels on a Saudi oil field that members of the Trump administration blamed squarely on Iran. The attacks — which the Iranians said they were not responsible for — heightened already high tensions in the area, leaving the world’s gaze promptly set on oil prices and President Donald Trump to authorize the release of oil from the strategic petroleum reserve.
The attacks Saturday on Saudi Arabia’s Abqaiq plant and its Khurais oil field came via drone and interrupted an estimated 5.7 million barrels of the kingdom’s crude oil production per day. In response, U.S. oil futures jumped about 12 percent to $61.60 a barrel on Sunday and Brent crude, the global benchmark, climbed up 13 percent to nearly $69 a barrel, according to The Wall Street Journal.
Trump tweeted Sunday that he authorized the release of oil from the Strategic Petroleum Reserve “in a to-be-determined amount,” and added that he “informed all appropriate agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other States.” In its own statement, the Energy Department said it was ready to deploy emergency oil reserves, which stand at about 630 million barrels, to stabilize markets.
“The Secretary has also directed DOE leadership to work with the International Energy Agency on potential available options for collective global action if needed,” DOE press secretary Shaylyn Hynes said in a statement. Ahead of the attack, Secretary Rick Perry, who is in Vienna for the general conference of the International Atomic Energy Agency, had planned to meet with Saudi Arabia’s new energy minister today to discuss a nuclear non-proliferation agreement.
In the short term, analysts with S&P Global Platts said Saudi Arabia will be able to maintain exports and use reserves to ensure supply security, but any evidence of prolonged disruption would be problematic. “The events in Saudi Arabia have ratcheted up tensions in the Middle East to a new level raising concerns about supply security,” said Chris Midgley, global head of analytics at S&P Global Platts. “While in the short term the direct physical impact on the market might be limited, this should move the market away from its bearish macroeconomic cycle and raise the risk premium in the market as funds reduce their short positions.”
In a tweet, Sarah Ladislaw, senior vice president and director at CSIS Energy and National Security Program, said, “The real strategic issue is that the pillars of a stable oil market are being dismantled. In favor of geopolitical competition, economic competitiveness, and reckless foreign policy. Whether prices spike a lot or a little, for a day or a month, the landscape has shifted.”
TRUMP WEIGHS BOOSTS TO BIOFUELS: The White House is considering a plan that could limit the number of small refinery exemptions to the RFS, increase the volumes of biofuels that must be blended into gasoline and boost the spread of 15 percent ethanol fuels, four industry and other sources familiar with discussions tell Pro’s Eric Wolff.
The biggest win for biofuel producers would be a limit on the number of exemptions EPA grants to small refiners from blending mandates under the RFS, Eric reports. Though the exact details are in flux, the ethanol volumes exempted from the program would be limited to the average from the previous three years, which would prevent EPA from hiking those exemptions to wipe out increases it sets in the annual blending mandates, sources said.
Trump was expected to publicly release his RFS plan on Friday, but is now expected to do so this week. The sources cautioned that the details of the plan are still under discussion and could change.
A group of senators from refining states, including Sens. Ted Cruz (R-Texas) and Pat Toomey (R-Pa.), were expected to meet with Trump Friday, but one of the sources said that meeting was postponed until this week. They will likely press Trump to put a cap on the price of compliance credits.
ON THE ROSTER: The experts selected by EPA Administrator Andrew Wheeler to advise an EPA panel on potential changes to the ozone and particulate matter pollution standards include several people who have criticized efforts to strengthen those rules on behalf of industry groups, Pro’s Alex Guillén reports. The pool of 12 experts — created to provide technical expertise to the Clean Air Scientific Advisory Committee — includes at least two people with connections to the now-defunct Utility Air Regulatory Group, the coalition of coal-heavy utilities that opposed many Obama-era regulatory efforts. The pool also includes consultants and members from academia.
By the way: Wheeler will appear on Thursday before the House Science Committee, marking the first visit by any Trump EPA administrator to the panel.
OIL VS. ELECTRIC VEHICLES: Oil-backed groups are countering utilities’ plans to expand electric vehicle infrastructure with regulatory and lobbying campaigns against the proposals in at least 10 states so far, Pro’s Gavin Bade reports. The efforts, some greens say, is reminiscent of the “Who Killed the Electric Car?” battles that doomed an earlier generation of battery-driven vehicles in the 1990s.
The counterattack involves an array of trade associations and industry-funded political groups representing every segment of the petroleum sector, Gavin reports. For example, in the in the Midwest, the American Fuel and Petrochemical Manufacturers has filed comments against charging plans in Kansas and Missouri, and in Illinois and Iowa, the American Petroleum Institute joined with the Koch-backed Americans for Prosperity to oppose utilities’ electric vehicle investments.
So far, however, the oil sector hasn’t seen much success. Though AFPM celebrated a Kansas utility’s decision to withdraw a charging plan last year, analysts say that in most cases where regulators scale back utility plans, they aren’t doing it in response to the oil industry’s pleas. “So far the main consequence [of oil lobbying] I’ve seen has been some delays, but I think the fight is ongoing,” said Samantha Houston, a clean vehicles analyst at the Union of Concerned Scientists. “I wouldn’t attribute modifications to electric vehicle programs to API, but they are certainly making a good attempt to muddy the waters in their interventions.”
IT’S THAT TIME OF YEAR AGAIN: House leaders are expected to press ahead with their plan to pass a continuing resolution this week to stave off a government shutdown at month’s end. Expect a floor vote midweek on that stopgap measure.
On the other side of the Capitol, senators may tee up test votes this week on a shell of the first House-passed minibus, H.R. 2740 (116), which included the Energy-Water fiscal 2020 spending bill, a source familiar with the chamber’s planning told Pro’s Budget and Appropriations team. Republican leaders, however, would seek to insert their own text.
THUNBERG TAKES ON DC: Youth climate activists, including Swedish activist Greta Thunberg, held a “climate strike” outside the White House on Friday, where they demanded political leaders adequately address the climate crisis. Thunberg was joined by about 1,500 protesters, many of them schoolchildren, the Associated Press reports.
Thunberg’s appearance at the strike is part of her visit to D.C. ahead of global climate strikes planned for next week. Thunberg and other youth activists will testify before the House Select Committee on the Climate Crisis this week. Thunberg will also address Congress, meet with senators and House lawmakers and attend a meeting with the Senate’s Climate Change Task Force.
— Chrissy Harbin begins an appointment at the U.S. Export Import Bank today, after serving as associate deputy assistant secretary for intergovernmental and external affairs at DOE.
— Lance West, formerly deputy staff director for the Senate Energy and Natural Resources’ Democratic staff, moved to West Virginia Sen. Joe Manchin‘s office as chief of staff. Renae Black moved into the deputy staff director role.
— “Ocasio-Cortez endorses Markey as Joe Kennedy eyes his Senate seat,” via POLITICO.
— “Idle mines portend dark days for top U.S. coal region,” via Associated Press.
— “Greenpeace protesters who closed Houston Ship Channel face local, federal charges,” via Houston Chronicle.
— “Trump, House GOP agree on key to 2020 win: Green New Deal“, via E&E News.
— “Newsom plans to veto bill that would have blocked Trump’s rollback of endangered species protections,” via Los Angeles Times.
— “In all-staff email, NOAA chief praises scientists after agency’s defense of incorrect Trump tweet,” via The Washington Post.
THAT’S ALL FOR ME!
