WHAT’S HAPPENING TODAY: Good afternoon and happy Thursday, readers! In today’s edition of Daily on Energy, oil and gas are leading the news as Callie and Maydeen take a look at Shell’s record deliveries of liquefied natural gas to tankers, a new assessment on untapped resources in Wyoming, and the latest on the oil tanker collision in the North Sea.
Plus, the newsletter dives into the recent lawsuit filed against the Trump administration by Earthjustice, agricultural nonprofits, and farmers over frozen funds.
Recommended Stories
- Daily on Energy, presented by Advanced Energy United: The ‘greatest day of deregulation’
- Daily on Energy, presented by Advanced Energy United: Trump escalates trade war with Canada
- Daily on Energy: Wright confident on oil prices, GOP support for IRA credits, and an oil tanker spill in the U.K.
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.
UNTAPPED OIL AND GAS IN WYOMING: There may be tens of millions of barrels’ worth of oil as well as hundreds of billions of cubic feet of gas under Wyoming and parts of Montana yet to be discovered, the U.S. Geological Survey says.
The details: USGS released its assessment today of untapped oil and gas resources in Wyoming, Montana, South Dakota, and Nebraska, paving the way for more drilling in the region to meet the Trump administration’s “Drill, Baby, Drill” agenda.
The agency estimated that there are “technically recoverable resources” of around 47 million barrels of oil and 876 billion cubic feet of gas. The assessment said the resources are in the upper Paleozoic reservoirs of the Wind River Basin, Bighorn Basin, and Powder River Basin Provinces.
Why this matters: The assessment comes on the sidelines of the Trump administration’s efforts to increase drilling operations domestically in order to meet growing energy demands. Just this week, Energy Secretary Chris Wright emphasized the administration’s support for the oil and gas industry, insisting renewables like wind power will not be able to replace fossil fuels in meeting demand.
The USGS assessment does not immediately guarantee the region will see increased drilling operations in the coming months and years. It does, however, give the administration more fuel for their argument that there is a plentiful supply of oil and natural gas to support rising consumption.
U.S. BACKS QATARI PLANS TO SUPPLY SYRIA GAS VIA JORDAN: Multiple sources have confirmed that the White House has offered up its approval for Qatar to supply gas to Syria through Jordan in order to boost the nation’s energy supply.
The details: Three individuals familiar with the matter confirmed to Reuters that Qatar would be sending gas on a vessel through Jordan in the coming days. One U.S. official told the outlet that the newly agreed-upon deal received approval from President Donald Trump, suggesting the administration’s plans to remain actively engaged with Damascus.
After arriving in Jordan, the gas is expected to be transported through a pipeline to the Deir Ali power plant in southern Syria. The deal is projected to boost Syria’s electricity supply by up to 400 megawatts, two sources told Reuters. It remains unclear how long this deal will last, as Khalifa Abdullah Al Sharif, the Qatari Charge d’affaires in Syria, has reportedly said it will be “for a specific period,” according to state media.
Some background: In the past, Syria imported most of its energy from Iran. However, as supplies have been cut off due to changes in the Iranian government, Damascus has been forced to import energy from Jordan and plans to use floating power barges, according to Reuters. Two sources with knowledge of the matter told the outlet that the U.S. approved Jordan to supply Syria with up to 250 megawatts of electricity during non-peak hours. However, Syria has yet to receive that power as its grid remains unstable. Ibrahim Seif, a former minister of energy and mineral resources in Jordan, told Reuters that Syria’s grid “needs a significant amount of work.”
SHELL DELIVERED RECORD LEVELS OF LNG FOR SHIPS LAST YEAR: Last year, Shell delivered a record 1.1 million tons of liquefied natural gas to power ships, the company told Bloomberg.
Deliveries are only expected to climb as Shell has forecast that global consumption of LNG will increase by around 60% by 2040. In the next five years, Shell has estimated, the number of ships powered by LNG will also double.
“Demand for LNG-fueled vessels is picking up pace,” Tom Summers, senior vice president for Shell LNG Marketing and Trading, told Bloomberg. “LNG helps ship owners to reduce greenhouse gas emissions.”
Controversial power: Supporters of LNG have long advocated for industries like shipping to utilize the power source, given how much cleaner it is compared to oil or even coal. However, environmentalists and climate activists are quick to point out that LNG still releases toxic greenhouse gas emissions, like methane, throughout its entire supply chain. While methane does have a shorter lifespan than carbon dioxide, it is considered to be 80 times more potent.
OIL TANKER COLLISION UPDATE – SHIP CAPTAIN HELD LONGER BY POLICE: Police in the United Kingdom are planning to hold the captain of the cargo ship that collided with a U.S.-flagged oil tanker this week for nearly two more days for questioning.
Quick reminder: The man, a 59-year-old Russian national, was taken into custody by authorities in Humberside on Tuesday on suspicion of gross negligence manslaughter. He has not been publicly identified or yet charged.
The details: Humberside Police have said they were granted an extension today to hold the captain of the Portuguese-flagged cargo vessel Solong for another 36 hours for questioning, the BBC reported. “Extensive lines of enquiry by police into any potential criminal offences which arise from the collision between the two vessels are ongoing, whilst partner agencies continue their own assessments of the incident,” Detective Chief Superintendent Craig Nicholson said, according to the BBC.
Monday morning, the Solong collided with the Stena Immaculate oil tanker, which had been carrying around 220,000 barrels of jet fuel and was anchored off the coast of Hull. At least one cargo tank containing the fuel ruptured, causing a leak into the North Sea below. It remains unclear how much fuel was released into the water. The collision set both vessels on fire and 36 crew members from the two ships were safely rescued. One crew member from the cargo ship is still missing and presumed dead by authorities.
As of Thursday, authorities said the Stena Immaculate tanker was stable and securely anchored, with fires having subsided by the evening before. “Small pockets of fire,” though, were still reported on the Solong today, coastguard authorities said.
BP TO SELL HALF OF ITS SOLAR ASSETS: One of the largest oil companies, BP, will look to sell 50% of its solar unit Lightsource bp to strategic partners in a cash transaction, Reuters reports.
BP is seeking a strategic partner to purchase half of its solar company for cash, according to a document seen by Reuters. The move is part of a plan to lower costs and increase return on investment.
The document said BP is looking for a partner with “established leaders with extensive experience” in the renewables industry. Bids are due by June. BP took full ownership of Lightsource bp last October, with the two companies having been partners since 2017.
Oil expansion: The move comes as BP is also working to open new oil fields in the Azeri Caspian Sea, BP’s upstream chief Gordon Birrell told Reuters.
The company has been working to address the decline in output at the oilfields in the Caspian Sea, such as the Azeri–Chirag–Gunashli (ACG) complex of oilfields and the Shah Deniz gas field.
“We are progressing a number of exciting opportunities in Azerbaijan, from further development of ACG and Shah Deniz within existing (production sharing agreements), to accessing discovered (non developed) resources to exploration opportunities,” Birrell told Reuters.
EARTHJUSTICE, FARMERS, AND NONPROFITS SUE TRUMP ADMINISTRATION FOR WITHHOLDING FUNDS: The climate group Earthjustice has sued the Trump administration and the U.S. Department of Agriculture for withholding funds appropriated through the Inflation Reduction Act.
The lawsuit includes several agricultural nonprofit organizations and farmers who are asking a court to require the administration to release the funds. The plaintiffs alleged that holding the funds violates the Constitution and the Administrative Procedure Act since the spending was appropriated by Congress.
For instance, Earthjustice said farmers were awarded Rural Energy for America Program grants for energy efficiency improvements on farms. Other grants that are being withheld include USDA Forest Service Urban and Community Forestry grants, as well as Land Access grants.
ICYMI – JUDGE SAYS EPA NEEDS TO PROVIDE EVIDENCE FOR CANCELING CLIMATE GRANTS: A federal judge yesterday said the Environmental Protection Agency needs to provide evidence of wrongdoing to support its action of canceling $20 billion in climate grants, Politico reported.
The EPA earlier this week canceled $20 billion in grants from the Greenhouse Gas Reduction Fund, which provides funding for clean energy projects, specifically in low-income communities. EPA administrator Lee Zeldin has claimed that the previous administration improperly distributed its funds with little oversight and raised concerns about conflicts of interest. The EPA has kept the grant money frozen.
The recipients of the grant money sued the administration, arguing that withholding the grant money is illegal. One of the recipients include Climate United, a nonprofit organization which was awarded $6.97 billion to fund projects for energy-efficient homes. Arguments among the EPA’s lawyers and organization began yesterday in a federal court in D.C.
Judge Tanya Chutkan of the U.S. District Court for the District of Columbia said the EPA’s lawyers need to provide evidence of wrongdoing to support their decision to cancel the grants.
“Can you proffer any evidence that [the grant] was illegal, or evidence of abuse or fraud or bribery — that any of that was improperly or unlawfully done, other than the fact that Mr. Zeldin doesn’t like it?” asked Chutkan.
Chutkan asked both sides to make new filings by 5 p.m. on Monday. The judge ordered Climate United to file its amended lawsuit and the Justice Department to respond with evidence of wrongdoing.
RUNDOWN
Los Angeles Times Water officials knew that opening dams to meet Trump’s wishes was ill-advised. Here’s why it happened anyway
Washington Post How microplastics could be affecting our food supply
Canary Media The smell of toasted rock could spell victory for geothermal energy