WHAT’S HAPPENING TODAY: Good afternoon, and Happy Friday, folks. Callie is back today after a brief trip to Amsterdam for her graduate school graduation — just in time for next week’s election craziness!
In today’s edition of Daily on Energy, Callie and Maydeen kick things off looking at all things oil, from increased tensions in the Middle East to falling profits for oil giants. Internationally, we provide the latest on the aftermath of the Spanish floods and court challenges over climate protests in Australia. Plus, keep reading to find out what you may have missed about a fire at a Missouri Battery plant.
With just days until the voting booths open, our countdown takes a look at how much oil and gas interests donated to Donald Trump’s campaign as the former president has vowed to “DRILL, BABY, DRILL” if re-elected.
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.
QUOTE OF THE WEEK: White House National Climate Advisor Ali Zaidi spoke at the Georgetown Law Climate Center yesterday, touting the Biden administration’s efforts to address climate change and promote clean energy technologies through legislation such as the Inflation Reduction Act.
“The scoreboard looks good. The fundamentals are strong, but the hard truth is we have more field to gain and even less time to do it,” Zaidi said. “The good news is that we carry into the second half a fundamentally rewritten climate playbook, an approach that eschews the gloom and doom and embraces hope and possibilities. This new playbook is a game changer, and that is why I am confident that America will meet this moment.”
OIL PRICES JUMP AMID RISING MIDDLE EAST TENSIONS: The cost of oil rose by around 2% on Friday, one day after a report indicated Iran is preparing a retaliatory strike against Israel through Iraqi territory.
Friday morning, international benchmark Brent crude rose by 1.9% to $74.21 a barrel while West Texas Intermediate jumped 2.1% to $70.73 per barrel, per Barrons. By 2:30 p.m. ET, prices began to settle with Brent hitting $73.10 and WTI dropping to $69.47.
The jump in prices was in response to growing tensions in the Middle East, as traders await a potential strike from Iran on Israel.
“The attacks may be sent from Hezbollah; however, Iran will still be named if major damage occurs,” Dennis Kissler, senior vice president of BOK Financial, said, according to Yahoo Finance. “Still, many analysts think they may wait until after the US elections.”
Some background: On Thursday, sources confirmed to Axios that Israeli intelligence suggested Iran would attack with drones and missiles in the coming days via Iraq. A U.S. official told the outlet that Iran could strike soon, but said the U.S. is unsure if Tehran has decided to strike back. Last week, Israel attacked 20 military targets in Iran that were primarily air defense and weapons production facilities. The attack had been in response to an Iranian attack toward Israel on Oct. 1. Iranian officials have since said Israel’s retaliatory strike was a mistake, indicating there would be a strong response.
POSSIBLE OIL PRICE RELIEF FOR ASIA: Saudi Arabia is reportedly considering slashing oil prices for crude sold to Asia during the month of December.
The details: Trade sources confirmed to Reuters that the world’s largest oil exporter was debating the price cuts over demand weakness in Dubai. Prices for Arab Light crude are reportedly projected to fall by between 30 and 50 cents a barrel for December compared to November.
Sources indicated that the cut to crude prices could result in OPEC+ delaying its plans to increase oil production in December. The oil producing bloc had originally planned to increase output last month, but opted to slash production in eight member countries for October and November. Sources familiar with the matter told Reuters that a decision on a possible delay for the output hike could be released as early as next week.
PROFIT FALLS FOR OIL GIANTS: ExxonMobil and Chevron reportedly saw their profits fall in the third quarter amid lower oil and gas prices and weaker margins.
The details: Exxon said it saw a net income of $8.6 billion in Q3, down around 7% from the same time period last year, according to the Financial Times. Similarly, Chevron saw a major drop of 30% to $4.5 billion. Executives blamed lower commodity prices and refining margins for the profit declines.
Chevron CEO Mike Wirth also indicated that if crude demand remains weak in regions like China, and if OPEC+ moves forward with its output hike, the industry will likely continue to see “downward pressure on prices.”
Key quote: “The largest single factor that we would have seen year over year is just industry price margins …especially both in terms of gas prices and refining margins, coming off of historical highs,” Exxon CFO Kathy Mikells told the outlet.
DOMINION ENERGY Q3 PROFITS EXCEED WALL STREET ESTIMATES: Dominion Energy’s third quarter profits exceeded Wall Street expectations, Reuters reports. The company benefited from lower costs and stable electricity demand.
Dominion Energy total operating revenue in the third quarter reached $3.94 billion, compared to last year’s $3.81 billion. Its total operating costs fell 2% to $2.72 billion. U.S. power consumption is expected to rise next year due to AI technology, data centers, and increased home power usage.
Reuters said the company set its full year operating earnings forecast to $2.68 to $2.83 per share, which is above analysts expectations of $2.77 per share.
AUSTRALIAN POLICE LOOK TO BLOCK PLANNED CLIMATE PROTEST IN COURT: Climate activists in New South Wales, Australia are planning to hold a protest in a major seaport in just over two weeks – if they aren’t stopped in court by local police first.
The details: Activist group Rising Tide is looking to shut down the Port of Newcastle for 50 hours on Nov. 19 by paddling kayaks and rafts, blocking coal exports from leaving the port, according to The Guardian. The protest has reportedly been dubbed the “People’s Blockade of the World’s Largest Coal Port” and is expected to attract thousands of people over the course of a week.
However, local police are looking to prevent the protest from ever happening. On Friday, witnesses for the police appeared before court claiming the protest would block 30 ships from leaving or entering the port, causing delays and safety risks. Representatives for the police said they are not attempting to stop individuals from expressing opinions, but said this protest would disrupt the activities and lives of locals in Newcastle.
“Sometimes the impingement upon a person’s right to do what they do on the weekend… outweighs the important public right of free speech and public assembly and democracy,” Lachland Gyles SC, who represented the commissioner of the police, reportedly said.
Specifically, the police are looking to block Rising Tide’s form 1 application to conduct the protest, which (if accepted) would prevent protesters from being prosecuted over the protest.
The defense: Lawyers for Rising Ride have contested the court appeal, urging the judge to instead look at the economic effects of climate change and coal exports, according to The Guardian. However, Judge Desmond Fagan declined to take that into account.
“I’m not concerned with taking into account the economic effect of the activity of burning coal in power plants in whatever country this coal is freighted to from the port of Newcastle – that’s not before me,” he reportedly said.
UN CLIMATE AGENCY HIGHLIGHTS NEED FOR EARLIER FLOOD WARNINGS: Days after the devastating flash floods hit Spain, World Meteorological Organization official Clare Nullis said effective flood warning systems could prevent future destruction, Reuters reports
“We do need to ensure that the early warnings reach those who need them,” WMO official Clare Nullis told a regular U.N. briefing. “We need to ensure that early warnings lead to informed early action.”
Nullis did not comment on whether Spain warned its residents too slowly. Still, she added, it was something “Spanish authorities need to examine.”
Flash floods hit southeastern Spain on Tuesday, causing mass destruction throughout Valencia and surrounding communities. The floods swept away cars and destroyed roads and buildings. As of this afternoon, the death toll has risen to 205 and emergency teams continue to search for missing people.
The flash flood this week marked the deadliest natural tragedy and the worst flooding in decades.
ICYMI – MISSOURI BATTERY PLANT UP IN FLAMES: A fire broke out at one of the world’s largest lithium-ion battery facilities in Missouri this week, prompting evacuations for nearby residents.
The details: Flames and smoke poured out of Critical Mineral Recovery near Fredericktown, Missouri on Wednesday afternoon. Law enforcement officials with Madison County warned residents in the north and west of the town to evacuate around 2 p.m, according to the Missouri Independent. This was later concentrated on residents that lived on Madison County Road 277. Officials urged residents to close any windows, doors, and turn off any external air conditioning systems. Photos of the incident show the facility with a partially collapsed roof with smoke flooding the air.
As of 8 p.m. on Thursday, responders with the Fredericktown Fire Department were still working to extinguish the fire. Though by that time, it was limited to pockets of smoldering debris. Officials insisted there were no risks to the local public drinking water system.
About the plant: Critical Mineral Recovery is one of the world’s largest processing facilities for lithium-ion batteries, spanning around 225,000 square feet. It has the capacity to process over 60,000 tons of electric vehicle and consumer-grade batteries. According to the plant’s website, it recycles and reclaims strategic metals and minerals such as copper, cobalt, lithium, and aluminum from lithium-ion battery scrap materials. These materials are then used to build new batteries. Despite the fire, Critical Mineral Recovery has touted having “the most sophisticated automated and remote supervised and controlled fire suppression systems in the world.”
ELECTION COUNTDOWN – OIL INTERESTS GIVE MILLIONS TO TRUMP CAMPAIGN: High-profile oil and gas executives such as Harold Hamm of Continental Resources, Kelcy Warren of Energy Transfer Partners, and Jeffery Hildebrand of Hilcorp Energy Co. contributed more than $15 million to former President Donald Trump’s campaign, the New York Times reports.
The New York Times said oil and gas interests have given around $75 million to the Trump campaign, the Republican National Committee, and other affiliated groups.
Trump has promised to lower energy costs and accelerate fossil fuel production. “We will drill, baby, drill, which will lead to a large-scale decline in prices,” Trump said. The Trump campaign has not met the goal of raising $1 billion, but the oil industry remains a top donor.
There are 3 days until Election Day.
RUNDOWN
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