WHAT’S HAPPENING TODAY: Good afternoon and happy Friday, Daily on Energy readers! The Trump administration is not looking to slow the growth of data centers, Energy Secretary Chris Wright said. However, he noted that developers may need to provide their own energy sources to keep up with rising demand.
In other news, the administration is holding firm on its call for India to end its purchases of Russian oil. Keep reading to learn about the trade talks between the U.S. and India.
Recommended Stories
- Daily on Energy: Russian oil in focus, uranium producer expands, and Indian Point gets a boost
- Daily on Energy: Wright steps up wind criticism, more discontent in the oil patch, and endangerment finding rollback nears
- Daily on Energy: Trump’s UNGA speech, Pentagon delays PFAS cleanup, and EPA reorganizes
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: Energy Secretary Chris Wright defended his agency’s controversial climate change report at the New York Times Climate Forward event earlier this week. Scientists and environmentalists have criticized the report for downplaying the risks of climate change.
“First of all, 90% of what’s in our climate report is straight from the Intergovernmental Panel on Climate Change, straight from the Intergovernmental Panel on Climate Change. It’s just in a format that’s easier, accessible, easier for people to read,” Wright said.
He added “The conclusion of our report was, climate change is a real physical phenomenon that’s unfolding. It’s just not the crisis it’s often sold to be.”
DATA CENTERS – BE PREPARED TO SUPPLY YOUR OWN POWER: As Big Tech looks to secure enough power for artificial intelligence and data centers, the Trump administration is warning that developers should be prepared to supply their own energy.
The details: Getting ahead of China in the race for AI clearly remains a top priority for the administration, as Energy Secretary Chris Wright indicated this week they have no intention of slowing data center growth, despite concerns over the energy demand associated with the buildout.
“I think a better way to look at it and how we talk to all developers of data centers, is: ‘If there is not available power for you, you got to bring the energy with you,’” Wright told Axios in an interview published this morning.
Some background: Wright’s remarks align closely with President Donald Trump’s own support for the idea of co-locating data centers directly next to power plants. Many have suggested that this would allow large-load facilities like data centers to directly get their energy from the power plants, rather than through a larger grid system – essentially cutting the need for additional transmission. However, many have warned that doing so – particularly with existing power sources – could lead to more electricity shortages for consumers in the surrounding regions.
U.S. STANDS FIRM ON RUSSIAN OIL CURBS FOR INDIA TRADE DEAL: The Trump administration is not backing down in its call for India to end its imports of Russian oil, making it central to a trade deal that would reduce tariffs on the South Asian nation.
The details: People familiar with trade discussions told Reuters today that the U.S. has affirmed in trade negotiations that, as India looks to lower the president’s high tariffs, the country must curb its purchases of Russian energy. A U.S. official told the outlet that trade negotiations are heading in a positive direction, but there are still concerns over the Russian imports as well as market access and the trade deficit.
Quick reminder: India is the world’s largest buyer of Russian seaborne oil. Trump has sought to end this trade as a way to cut off revenue being used to fuel Russia’s war in Ukraine. Toward the end of the summer, Trump escalated pressure on India to cut off imports of Russian oil by imposing 50% tariffs on India. He has since weighed imposing similar tariffs and pressure on other countries importing Russian energy products, including China and Turkey.
GOOD SIGNS FOR ‘DRILL, BABY, DRILL’: For the fourth week in a row, the number of active drilling rigs in the U.S. rose, slowly recovering on the losses seen throughout the summer.
The details: Data released by Baker Hughes this afternoon shows seven new drilling rigs were added in the last week, bringing the total tally of oil and gas rigs to 549. Of the seven that were added, one was located offshore, another in inland waters, and five on land. Most of the new rigs are for drilling oil. The total count of active rigs is still dozens fewer than this time last year, by roughly 38 rigs.
The updated count came just days after domestic oil and gas executives threw cold water on increased production, due to the Trump administration’s tariffs on steel, crackdown on renewables, and uncertainty with trade.
As the administration kept pressure on the markets to keep prices low, drillers have warned they will be unable to profitably pursue new drilling with the cost of crude in the low-$60s and mid-$50s. As of this afternoon, prices were poised to end on a substantial week high, with both international and domestic benchmarks hitting the mid-to-high $60s.
Just after 2:30 p.m. EST, Brent Crude was up 0.79%, selling at $69.97 per barrel. West Texas Intermediate was also up by 0.94%, priced at $65.56 per barrel.
EUROPEAN UNION’S INVESTMENT BANK WEIGHS BACKING NUCLEAR: The European Investment Bank is reportedly considering reinvesting in the nuclear energy industry for the first time in four years.
The details: People familiar with the decision confirmed to Bloomberg this week that the European Union’s lending arm is thinking of getting in on the nuclear renaissance hitting the bloc and United States. EIB is specifically considering investing in small modular reactor projects and may select beneficiaries within the next six to 12 months.
Sources told the outlet that these deals would be worth tens of millions of euros, a positive signal for private investors on the fence about also backing nuclear.
The bank has not formally provided funding for nuclear power since 1987, but it has continued to back the industry by investing in projects related to nuclear waste and the fuel supply chain.
“The EIB has a longstanding track record of supporting nuclear energy projects, including research and development, safety improvements and the nuclear fuel cycle,” the bank told Bloomberg. “We remain committed to advancing net zero technologies and innovative solutions, such as small modular reactors, that contribute to Europe’s strategic autonomy, competitiveness and energy security.”
CHINA TO REQUIRE EXPORT PERMITS FOR ELECTRIC VEHICLES: China announced today it would impose export restrictions on Chinese-made electric vehicles, requiring automakers to obtain permits starting next year.
The Ministry of Commerce said export permits will be required starting Jan. 1, in an effort to help promote the “healthy development of new energy vehicle trade.”
China has taken an aggressive stance over its auto market after an EV price war put some carmakers at risk. Beijing has made moves to stop significant discounts and has ordered manufacturers to pay suppliers more quickly.
Currently, China is a leader in the electric vehicle sector, offering affordable and more technologically advanced car options. To prevent an influx of Chinese EVs, the U.S. and Europe have imposed sweeping tariffs on these cars.
ICYMI – DOJ TARGETS CLIMATE STATE LAWS: The Department of Justice plans to target additional state climate laws that it claims could have “significant adverse effects” on the economy.
In August, the DOJ opened a public comment period to help identify state climate laws that could “significantly and adversely affecting the national economy or interstate commerce.”
The comment period is part of the White House’s executive order, “Protecting American Energy From State Overreach,” which calls on the DOJ to identify state climate laws that burden energy development or production.
E&E News reported that 251 respondents have offered targets to the DOJ, which included bans on fossil fuel appliances in new buildings and prohibitions on PFAS, also referred to as “forever chemicals.” The Trump administration has previously gone after state climate Superfund laws in Vermont and New York.
RUNDOWN
Canary Media Can climate comedy still work? This offshore wind ad suggests it can.
E&E News DOE climate report could create problems for EPA
Associated Press After global aid cuts, nonprofits seek new energy and new partners on the UN sidelines