WHAT’S HAPPENING TODAY: Good afternoon, and happy Tuesday, readers! We are kicking off today’s Daily on Energy with an exclusive on a bill that calls for a study to assess the value of onshore and offshore minerals across regions of federal lands and waters.
Meanwhile, Callie and Maydeen also take a look at jobs that could be at risk under President Donald Trump’s executive order on wind, and the White House’s new move to pause all federal loans and grants.
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.
EXCLUSIVE…NEW BILL CALLS FOR STUDY TO ASSESS VALUE OF LANDS AND WATERS BLOCKED FROM OIL AND GAS DEVELOPMENT: This morning, House Budget Chairman Jodey Arrington of Texas introduced the “Abundant American Resources Act” to determine the economic value of resources protected or withdrawn from oil and gas development by the Biden administration.
The details: The legislation, shared exclusively with Daily on Energy prior to being introduced, would order the Bureau of Land Management, the U.S. Forest Service, and the Bureau of Ocean Energy Management to conduct studies on the value of onshore and offshore minerals across sweeping regions of federal lands and waters. It would include areas that are protected from future oil and gas drilling, such as national monuments, areas that are of critical environmental concern, or regions withdrawn from future leasing.
With the legislation, Arrington is taking aim at a number of climate-related actions taken by the Biden administration, seemingly accelerating the phase-out of fossil fuels. For example, the previous administration designated eight new National Monuments across 4.7 million acres, offered up what the industry described as limiting lease sales in the Arctic National Wildlife Refuge, and used the Outer Continental Shelf Lands Act to bar future drilling in 625 million acres of federal waters.
Arrington has labeled these actions as a “whole-of-government assault on American energy independence” amid rising energy demand.
“One of the most overreaching actions taken by President Biden was to federalize millions of acres of land, effectively preventing the federal government from extracting oil, gas, and minerals from these areas,” he said in a statement obtained by Daily on Energy. “I’m proud to introduce the Abundant American Resources Act to shed light on how much revenue and energy production President Biden left on the table and equip President Trump with data that supports his American Energy Dominance Agenda.”
Congressional Western Caucus Chairman Rep. Dan Newhouse of Washington is also backing the legislation, saying the U.S. has failed to “fully tap into our own abundant resources.”
“This legislation is an important step to further identify our resources and begin the process to start developing them as demand continues to rise,” Newhouse said. “I am proud to join Rep. Arrington as we work to return America to energy dominance.”
TRUMP’S ENERGY AND ENVIRONMENT NOMINEES’ CONFIRMATION IMMINENT: Trump’s nominees to head up the Environmental Protection Agency, Energy Department and Interior Department are one step closer to being confirmed.
Senate Majority Leader John Thune filed cloture for nominees Lee Zeldin, Chris Wright, and Doug Burgum on Monday evening. The procedure traditionally tees up a vote on the relevant matter in just days.
The three energy and environment nominees advanced out of committee last Thursday and are not expected to face any additional hurdles with Republicans in control of the upper chamber. Zeldin, Wright, and Burgum have all received bipartisan support thus far.
UNITED STATES TO WITHDRAW FROM PARIS AGREEMENT BY NEXT JANUARY: The United Nations said today that the U.S will withdraw from the Paris Climate Agreement on Jan. 27, 2026, Reuters reports.
On day one of Trump’s term, he signed an executive order pulling the U.S. out of the Paris Agreement for the second time. He also signed a letter formally notifying the U.N. of the U.S. withdrawal from the treaty.
“In recent years, the United States has purported to join international agreements and initiatives that do not reflect our country’s values or our contributions to the pursuit of economic and environmental objectives,” the executive order reads. “Moreover, these agreements steer American taxpayer dollars to countries that do not require, or merit, financial assistance in the interests of the American people.”
The international climate agreement sets a goal of limiting global warming to below 2 degrees Celsius above pre-industrial levels. The U.S. will be joining countries like Iran, Libya, and Yemen that are not part of the agreement.
CHEVRON LOOKS TO NATURAL GAS TO SECURE POWER FOR ARTIFICIAL INTELLIGENCE: While Big Tech has been looking to nuclear energy to power data centers and artificial intelligence capabilities, oil and gas giant Chevron is seeking to use natural gas to support the industry.
The details: Chevron announced today that it is partnering with Engine No. 1 and GE Verona to construct multi-gigawatt natural gas power plants co-located with data centers, which will be able to directly draw on the power generated.
The companies are looking to deliver upwards of 4 gigawatts of power – enough to support approximately 3-3.5 million homes. Their first projects, which the companies have dubbed “power foundries,” could be the first co-located power plants and data centers online under the second Trump administration, which has emphasized its support for oil and natural gas development. Chevron has said they are looking to be in service by the end of 2027.
Chevron has said it plans to use seven GE Vernova 7HA natural gas turbines for the projects, co-locating the plants with data centers in the Southeast, Midwest, and Western regions of the U.S. The power generated will not flow through any existing grids, instead going directly to the data center. Chevron has said this will reduce the risk of nearby consumers seeing their electricity rates increase.
Key quote: “Energy is the key to America’s AI dominance,” said Chris James, founder and chief investment officer of Engine No. 1. “By using abundant domestic natural gas to generate electricity directly connected to data centers, we can secure AI leadership, drive productivity gains across our economy and restore America’s standing as an industrial superpower. This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face.”
JOBS IN REPUBLICAN DISTRICTS MAY BE AT RISK UNDER TRUMP’S WIND ORDER: As Trump has followed through on his promises to pause federal support for offshore wind projects, new reports now suggest that many living in Republican districts may face unintended consequences.
A reminder: On his first day in office, the president signed an executive order blocking all lease sales for offshore wind projects, as well as pausing any new approvals, permits, leases, or loans for wind projects, both on- and off-shore. The order claimed no rights under existing leases would be affected, but also gives the secretary of interior the authority to conduct reviews regarding terminating or amending any existing wind energy leases.
The details: Oceanic Network has estimated that more than 64% of investments in offshore wind manufacturing and the supply chain have been made in Republican congressional districts. This is roughly equivalent to around $3.4 billion, according to a Canary Media report.
The organization pointed to past offshore wind projects that created hundreds of contraction jobs on site, while supporting development in far-away states like Texas. “Who’s benefiting? It’s the entire United States,” president and CEO Liz Burdock told Canary Media.
With offshore wind developers having signed hundreds of contracts in states like Ohio and Wisconsin, offshore wind advocates are warning that jobs in these regions are at risk, particularly for those working in operation, maintenance, and construction that had been counting on pending and future projects.
Key quote: “I’ve held out a little bit of hope that all this offshore work would continue to move forward,” Jim Pimental, president of the Southeastern Massachusetts Building Trades Council, told the outlet. “I thought that a lot of these Republican governors and senators would tell [Trump] not to kill this stuff. … I don’t wish any community to suffer job losses like ours just did.”
WHITE HOUSE PAUSES ALL FEDERAL GRANTS AND LOANS: The Office of Management and Budget (OMB) released a memorandum yesterday which directs federal agencies to pause all federal grants and loans by 5pm today.
“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” OMB’s acting director Matthew Vaeth wrote in the memo.
The memo directs federal agencies to submit to the OMB details on the affected funding by Feb. 10. Vaeth noted that the pause would allow the administration to review agency programs and funding to determine which are in line with the president’s priorities. It is unclear what climate funding will be affected.
White House Press Secretary Karoline Leavitt said in her first press briefing today that federal assistant programs for individuals will not be paused, but she said “it is the responsibility of the president and this administration to be good stewards of taxpayer dollars.”
“So what does this pause mean? It means no more funding for illegal DEI programs. It means no more funding for the green new scam that has cost American taxpayers tens of billions of dollars,” Leavitt said.
Environmental Protection Network Executive Director Michelle Roos said in a statement today that the pause on funding would halt the Environmental Protection Agency’s safe drinking water projects, Superfund cleanup, and sewage construction, which will cost jobs and harm public health.
“We are now on a steep and slippery slope toward a presidency that abuses taxpayer funds to reward political loyalty on a case-by-case basis rather than supporting the impartial pursuit of the public good for all Americans,” Roos stated.
Reactions: Democrat lawmakers have spoken in opposition to the White House’s move. Senate Minority Leader Chuck Schumer said “Congress approved these investments and they are not optional; they are the law.”
“These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities,” Schumer added.
Senate Majority Leader John Thune said “We’ll see kind of what the extent of it is and what they’re, you know, what they intend to do in a more fulsome way. But for now, I think it’s just this is kind of a preliminary step that I think most administrations make.”
Meanwhile, California Attorney General Rob Bonta said on X that “We’re reviewing the Trump Administration’s sweeping federal funding directive.”
“Make no mistake – any pause to critical funding would hurt families and threaten public health & safety. We’re prepared to protect CA’s people and programs from [Trump’s] reckless and dangerous actions,” Bonta added.
Read more from Washington Examiner’s White House reporters here.
ICYMI – BILL WOULD HAVE OIL COMPANIES FOOT BILL FOR CALIFORNIA DISASTERS: California state Sen. Scott Wiener introduced a bill yesterday to allow homeowners and businesses who have been harmed by natural disasters to recover damages from the fossil fuel companies in court.
The introduction of “The Affordable Insurance and Climate Recovery Act” comes as California begins the recovery process from battling three large fires earlier this month that destroyed thousands of homes.
Natural disasters have caused insurance prices to rise, pushing residents to rely on the state’s insurer, the FAIR Plan, the press release said. It added that not only would residents be allowed to take the oil companies to court, but private and state insurers could also recuperate their losses by seeking damages from the fossil fuel industry.
“Californians are paying a devastating price for the climate crisis, as escalating disasters destroy entire communities and drive insurance costs through the roof,” said Wiener. “Containing these costs is critical to our recovery and to the future of our state. By forcing the fossil fuel companies driving the climate crisis to pay their fair share, we can help stabilize our insurance market and make the victims of climate disasters whole.”
As private insurers pushed policyholders out of their plans, California residents turned to the FAIR Plan and between 2020 and 2024, the number of homes covered by the plan tripled to a value of $458 billion, the press release read.
“The announcement of today’s proposal is the latest installment of an ongoing effort to scapegoat our industry — and the thousands of hardworking women and men who keep California running — for political gain, while complex problems continue to go unsolved,” said Catherine Reheis-Boyd, President and CEO of the Western States Petroleum Association.
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