WHAT’S HAPPENING TODAY: Good afternoon and Happy Monday, readers. It’s all about gas today as Europe is seeing its highest prices in two years and consumption continued to hit record levels in the U.S. last month. Today, countries that signed on to the Paris Agreement also faced a deadline for setting new climate targets for 2035. Keep reading to find out which countries’ goals are overdue.
To kick off the week, today’s edition of Daily on Energy also takes a look at various hearings and meetings being held in the energy and environment space. Plus, don’t forget that next Monday is President’s Day and we will be taking a brief one day hiatus from the newsletter to enjoy the federal holiday.
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.
NATURAL GAS CONSUMPTION SHOT UP TO RECORD HIGHS IN JANUARY: The use of natural gas surged in January after the lower 48 states saw record low temperatures and snow falling as far south as southern Louisiana.
The details: The U.S. Energy Information Administration revealed today in its Weekly Natural Gas Storage report that the unusual winter weather resulted in the fourth-largest withdrawal from underground natural gas storage in the contiguous states in history.
During the week ending on Jan. 24 – the same week 10 inches of snow dumped on New Orleans – stocks of natural gas dropped by 321 billion cubic feet. This is nearly 70% more than the average amount withdrawn between 2020-2024 during that same week. Withdrawals soared throughout the entire month of January, with natural gas inventories roughly 4% less than the previous five-year average. The third largest-withdrawal had been recorded just days before, on Jan. 19.
The impact: Natural gas in storage was expected to plunge this year, with Morgan Stanley previously forecasting it would fall around 17% below the five-year average by March (around 1.55 trillion cubic feet), according to Hart Energy. With two of the largest storage withdrawals having taken place last month, industry experts have said it points to the need for the National Energy Council formed by President Donald Trump to boost domestic energy.
Power The Future founder Daniel Turner told Callie that while the U.S. has “centuries” of natural gas reserves, it will take time to replenish inventories. “All the energy problems we face from a compromised national grid to energy production were always going to be future problems, but Team Biden wanted immediate political results, future be damned,” Turner said.
The American Petroleum Institute Vice President of Natural Gas Markets Rob Jennings said “Near record withdrawals reflect the critical and growing role of natural gas in providing the affordable, reliable energy Americans need to power their daily lives.”
Jennings added that “We urge Congress and the Trump administration to fully leverage our nation’s abundant natural gas resources to meet growing demand here at home while supporting America’s allies abroad with U.S. LNG.”
EUROPEAN GAS PRICES HIT TWO-YEAR HIGH: Natural gas prices in Europe hit two-year highs on Monday as winter weather continued to drain inventories.
The details: European benchmark Dutch TTF jumped by 4.5% early today, hitting around 58.25 euros (roughly $60.17) per megawatt hour, according to the Wall Street Journal. This is the highest for the gas contract since February 2023.
Storage of natural gas in Europe has plummeted compared to the same time last year. As of Saturday, inventories in the EU were only 49% full. Last year around the same time, storage was closer to 67% full. Dropping inventories and increasing prices have been primarily attributed to lower temperatures, seasonably low wind power generation, and dwindling Russian supply.
“Temperatures are expected to fall sharply in coming days, particularly in the U.K., Germany and France,” ANZ Research analysts told the outlet. “This will likely lead to an acceleration of withdrawals from stockpiles, which are already at their lowest level for this time of year since the energy crisis in 2022.”
EU FACES CALLS TO PAUSE ESG REGULATIONS TO BENEFIT TRADE: The European Union is facing calls from a number of companies based in the United States to delay or do away with major environmental, social, and governance (ESG) rules they claim are a “barrier” to trade with the bloc.
The details: The American Chamber of Commerce to the European Union – whose members include AT&T, Apple, Amazon, Bank of America, Chevron, Ford, Microsoft, Pfizer, and more – released a position paper today calling on the EU to ease up on its sustainability-related “regulatory burdens.”
The group is specifically calling for the bloc to simplify the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) which require companies to provide reports on ESG impacts and establish liability over ESG violations. With EU officials already poised to propose changes to these regulations this month, according to Bloomberg, the Chamber is calling on the bloc to ease up on required compliance.
“Amid significant political uncertainty while simplification is underway, businesses should not be made to comply with legislation that could materially change,” the position paper reads.
While the Chamber insisted its members are committed to transitioning to cleaner energy and lowering emissions, it said 84% of its members have cited these regulations as a “major barrier” for transatlantic business and trade. It claimed simplification of the rules is needed to allow companies to invest more of their resources in clean energy rather than excessive sustainability responding. “Without immediate, bold action, the EU risks losing business confidence and investment, jeopardising its linked economic and sustainability goals,” the group said.
MOST NATIONS MISS PARIS AGREEMENT CLIMATE TARGET DEADLINE: Most countries that are still a part of the Paris Agreement missed a deadline to set new goals for reducing carbon emissions.
The details: China, Indonesia, Russia, South Africa, and India, as well as the European Union, failed to submit new climate targets for 2035 that were due today, according to Reuters. These targets are required under the 2016 climate accord, which directs member nations to update their climate action plans every five years. This is expected to include emissions reductions targets that are, in theory, more aggressive than each previous goal set.
Last week, UN Framework Convention on Climate Change executive secretary Simon Stiell previewed that the majority of the countries that have adopted the Paris Agreement had plans to submit their updated targets at some point this year. “Countries are taking this extremely seriously, which isn’t surprising given these plans will be key to how much of the 2 trillion boom governments can secure,” Stiell said. “So taking a bit more time to ensure these plans are first-rate makes sense.”
Reasons for the delayed targets appear to vary, with EU officials telling Reuters that the bloc’s cycle for policymaking did not directly line up with the Monday deadline, while Indonesian officials said they are awaiting instruction in order to submit. Officials with the Indian government also told the outlet that it had not yet completed certain studies needed to develop its new targets. Meanwhile, China has said it will publish its goals “in due course.”
The Trump effect: It remains unclear if any nations will follow the United States in withdrawing from the Paris Agreement, as Trump did in one of his first actions as president. There has been some speculation that the decision could lead to other countries following suit, or even lowering their own climate commitments.
People familiar with India’s plans told Bloomberg that the country will likely opt against increasing its emissions reductions for 2035, instead focusing more on adaptive measures for extreme weather. The decision is reportedly tied to the failure to raise sufficient funding for developing countries at COP29.
India, which is the third-largest polluter in the world, is currently aiming to reduce emissions by 45% compared to 2005 levels by 2030. If the country does not increase this target, it would be dramatically less aggressive than goals set by other high emitting countries, such as the U.S. and Brazil, which committed last year to emissions reduction targets between 61-67%.
NOAA TOLD TO SEARCH CLIMATE-RELATED KEYWORDS FOR GRANT PROGRAMS: The Commerce Department sent officials at the National Oceanic and Atmospheric Administration a set of climate-related keywords to use while searching for grants, Axios reports.
The keywords include: climate, methane, nitrous oxide, greenhouse gas, climate science, carbon, the Paris Agreement, and others, according to Axios. But it is unclear what the administration will do with the information, it added.
The Trump administration has been seeking to cut funding and limit certain federal agencies. A NOAA source told Axios that divisions within the agency have been tasked with searching their grants and other funding while using the set of keywords.
In particular, the Trump administration has been trying to halt any Inflation Reduction Act climate-related grant money to agencies, including climate resilience grants that go through NOAA.
“If anything, these investments should be increased, not threatened,” Rick Spinrad, who led NOAA during the Biden administration, told Axios. “By virtue of the name of the program, every grant undoubtedly includes the word ‘climate.’”
SERIES OF WINTER STORMS TO HIT THE EASTERN HALF OF THE COUNTRY: Back-to-back winter storms are expected to hit the eastern half of the country starting tomorrow.
The first storm system is expected to start later today from the Plains, bringing precipitation over parts of Kansas, Oklahoma, and Texas. The storm will move along the East Coast tomorrow, resulting in snow in Washington D.C., Philadelphia, and New York.
“The first storm from Monday night to Wednesday night will occur as cold air expands farther south and meets up with moisture spreading north from the Gulf,” AccuWeather Meteorologist Alex Duffus said.
“This can lead to accumulating snow that may impact millions from the Plains to the mid-Atlantic states and southern New England, with the potential for significant travel impacts across the big cities in the region from late Tuesday into Tuesday night,” Duffus added.
The Washington Post’s Capital Weather Gang is predicting 3 to 6 inches of snow in D.C., with snowfall potentially being higher south of the Beltway.
Then another storm is expected to hit many of the same areas on Wednesday, including Chicago, Detroit, and Buffalo.
“Forecasters warn that there is a chance that the corridor of sleet and freezing rain is more expansive with the second storm compared to previous rounds over the past week, especially across the mid-Atlantic region and New England,” AccuWeather said.
MONKEY IS BLAMED FOR NATIONWIDE BLACKOUT IN SRI LANKA: A monkey started a nationwide blackout in Sri Lanka yesterday, leaving many without power in temperatures exceeding 86 degrees Fahrenheit.
“A monkey came into contact with our grid transformer, causing an imbalance in the power system,” the energy minister, Kumara Jayakody, told reporters.
The monkey disrupted a power station south of Colombo. The power went out midday yesterday, leaving 22 million people without power on the island. Authorities were able to restore power within hours but many remained without power throughout the night.
Rolling blackouts have become a usual occurrence for those in Sri Lanka since 2022, the Guardian said. Monkeys have also grown in population and have become popular for residents. There are an estimated 2 to 3 million monkeys on the island.
A LOOK AHEAD:
Feb.10–13 The 4th annual World Electrolysis Congress is being held in Cologne, Germany, bringing together leaders and experts around the globe to examine the clean hydrogen industry.
Feb. 11 House Subcommittee on Energy and Mineral Resources; hearing entitled, “Oversight Hearing on Restoring Energy Dominance: The Path to Unleashing American Offshore Energy”
Feb. 11 House Subcommittee on Federal Lands; hearing entitled, “Restoring Multiple Use to Revitalize America’s Public Lands and Rural Communities.”
Feb. 12 The Nuclear Regulatory Commission’s Atomic Safety and Licensing Board is holding a prehearing conference regarding the restart of the Palisades Nuclear Plant. Virtual oral arguments opposing the manner of the restart are expected to be heard.
Feb. 12 Draslovka is holding a webinar titled the “Copper Conundrum”, assessing the importance copper has within the global economy, national security and the transition to cleaner energy. The webinar will feature Republican Reps. Juan Ciscomani of Arizona and Celeste Maloy of Utah.
Feb. 12 House Energy and Commerce subcommittee on commerce, manufacturing and trade is holding a hearing on the use of artificial intelligence in manufacturing.
Feb. 12 House Science, Space and Technology subcommittee on Energy is holding a hearing on the Department of Energy’s national laboratories.
Feb. 12 The Senate Environment and Public Works committee is holding hearings regarding carbon capture and sequestration technologies.
Feb. 12 The United States Energy Association is hosting a virtual briefing on “Understanding the Trump Energy Agenda.”
Feb. 13 Advanced Energy United is holding a webinar examining what states can learn from Texas’ energy deployment featuring Democratic state senator Nathan Johnson.
Feb. 14 is Valentine’s Day.
RUNDOWN
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