WHAT’S HAPPENING TODAY: Good afternoon and Happy Monday, readers! Just like that, another month has come and gone. Here in Washington, D.C., we’ve been enjoying the spectacular cherry blossom season as the trees hit peak bloom on Friday.
In today’s edition of Daily on Energy, Callie and Maydeen dive into the potential secondary tariffs on Russian oil, taking a closer look at who could be affected and how the tariffs could be implemented.
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Back stateside, the U.S. saw record levels of natural gas consumption last year. Keep reading to find out how much of the fuel the country actually used.
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.
CHINA AND INDIA WOULD BEAR BRUNT OF SECONDARY TARIFFS ON RUSSIAN OIL: Secondary tariffs on Russian oil from the Trump administration are expected to primarily hurt China and India, if the president decides to follow through with the threat.
The details: Early Sunday morning, President Donald Trump told NBC News that he was considering placing secondary tariffs on all oil exported out of Russia. He threatened to implement a 25% tariff on nations importing Russian oil, limiting their ability to do business with the U.S.
China and India are widely considered to be the largest importers of Russian oil and oil products, with other nations like Turkey and Brazil not far behind. If the U.S. implemented secondary sanctions, these countries would likely face the brunt of the impact – depending on the specifics of the order.
What it could look like: Trump’s weekend threat appears identical to the secondary tariffs to be implemented on Venezuelan oil on April 2. Energy economists and geopolitical analysts have said that an identical secondary tariff order on Russia would have far greater implications globally, given the amount of oil the country continues to pump into the market.
Philip Luck, former deputy chief economist at the State Department under former President Joe Biden and current director of the CSIS Economics Program and Scholl Chair in International Business, told Callie that the current administration may choose to not be as sweeping with the possible tariffs.
For example, Luck said, the administration might only implement the tariff on those purchasing Russian crude and oil products above the existing price cap, similar to previously imposed sanctions. This would allow Russian oil to continue to hit the market, lowering global risk.
“From an economic standpoint, as long as this oil hits the market that’s all to the good. And if we can, through our leverage, actually reduce the price of Russian oil, that actually would reduce global oil prices,” Luck said. “If this can work, it would honestly tick a lot of boxes for this administration.”
Read more from Callie here.
BLACKROCK JOINS PERMITTING REFORM CHORUS: In its annual letter to investors released today, investment giant BlackRock echoed the bipartisan calls in Congress to pass meaningful permitting reform in order to better streamline new transmission projects.
The details: Chief executive Larry Fink called for “energy pragmatism” in his note this morning, saying the country must fix its permitting system to better encourage investments. Fink lambasted the existing system, describing it as “slow” and “broken,” allowing other nations like China to get ahead.
“Without massive investments in energy generation and transmission–and the electricians and engineers to build them–we’re going to face an unacceptable tradeoff: Who gets the electricity—people or machines? And a society that chooses to cool its servers while its citizens swelter—or freeze— has fundamentally misplaced its priorities,” Fink wrote.
Broad energy mix: As global energy demand continues to rise, Fink also noted that increased consumption cannot be entirely met with renewables alone. That could change as a result of “major breakthroughs” with storage technologies, but until then, the BlackRock CEO emphasized, other available resources are needed. For Fink, this includes reigniting decommissioned nuclear plants and supporting development for small modular reactors.
“In the near term, more than half the electricity powering data centers must come from dispatchable sources,” he wrote. “Otherwise, the air conditioning will shut off, the servers will overheat, and the data centers will shut down.”
NATURAL GAS CONSUMPTION SET NEW RECORDS LAST YEAR: The U.S. last year used 90.3 billion cubic feet per day of natural gas, increasing by 1% from 2023 while setting new monthly records, the U.S. Energy Information Administration said.
In January 2024, the U.S. used 12% more natural gas than it did in January 2023. For July, consumption was up 3% on the year.
EIA said the demand for natural gas is significantly dictated by the weather, due to an uptick in people using heaters and air conditioning. For instance, there was a reduction in natural gas consumption from February through April 2024 due to mild weather compared to the prior year.
The new records come amid a rise in U.S. energy demand caused by increasing consumption for data centers, artificial intelligence, and the rise of global temperatures.
Earlier this month, the International Energy Agency said that global energy demand rose by nearly 2.2% in 2024 compared to the average annual demand increase of 1.3% that occurred between 2013 and 2023. IEA said the rise in energy demand was driven by the effects of climate change like record high temperatures.
WIND TURBINES SUPPORT MARINE LIFE, RESEARCH SUGGESTS: Scientists studying the impact of massive wind turbines and wind farms located far off shore are now suggesting that the foreign objects installed in deep waters may not be as big a deterrent to marine life as previously thought. And, in some cases, they can help support life.
The details: Marine ecologists in Scotland and the United States have for months been looking into how many fish have been swimming and living around the foundations of wind turbines offshore. Despite these farms being thousands of miles apart, these researchers have found marine life in both regions using the turbines in a similar way.
In Scotland, ecologist Anthony Bicknell told Canary Media, they detected haddock hanging around the turbines – breaking from their typical habits of avoiding other man-made structures. Bicknell explained that the turbines attract barnacles, shellfish, and invertebrates – which fish like haddock then gravitate toward to consume. He said his research provides evidence that structures like wind turbines help support entire food chains in the big deep.
Similarly, researchers working off the coast of Virginia have found fish like black sea bass making themselves at home out of the wind turbine foundations. Ecologist Brendan Runde told Canary Media that there is some risk to marine life when it comes to constructing these structures, given changes in noise, the seafloor, and electromagnetic fields. Runde said, however, that he found that the Atlantic sturgeon and several different sharks are still sticking around.
EU CLIMATE COMMISSIONER CONSIDERS ALTERNATIVE OPTIONS FOR COUNTRIES TO MEET CLIMATE GOALS: European Union Climate Commissioner Wopke Hoekstra is looking at alternative measures that would make it easier for countries to meet EU climate goals, Politico reports.
In the next several weeks, the commission is expected to introduce legislation to adopt its climate goals, which include reducing greenhouse gas emissions by 90% by 2040.
However, Politico reports that, according to a commission official and two people briefed on the discussions, Hoekstra is considering alternative approaches for countries to meet the 90% reduction target.
The outlet said the commissioner is discussing options like allowing countries to count carbon reduction they pay for in other countries or focusing on forests or technology that can remove carbon from the air.
The commission had promised to propose the legislation in the first three months of this year but there has been increased opposition from other EU countries.
Politico noted that Italy has urged the commission to lower the target to 80%. Additionally, Germany’s incoming government has not yet supported the 90% reduction target. In February, Germany’s center-right Christian Democratic Union became the largest party in the country’s government.
INDIA TO EXPERIENCE HEAT WAVES FOR THE NEXT FEW MONTHS: India could experience higher than average temperatures from April to June, the India Meteorological Department warned.
Mrutyunjay Mohapatra, director general of Meteorology at the India Meteorological Department, said at a news conference that parts of India will experience long periods of extreme heat, including central and eastern India, the Times of India said. Mohapatra noted that temperatures will likely remain normal in western and eastern India.
The prediction for above-average temperatures comes after India experienced the hottest March in the past three years, with an average temperature of 89 degrees, the Times of India reported, citing the government’s meteorological department.
ICYMI – U.S. REVOKES FOREIGN VENEZUELAN OIL LICENSES: The Trump administration has moved to revoke licenses for a number of foreign energy companies operating in Venezuela, including firms headquartered in Spain and France.
The details: Several people familiar with the decision confirmed the news to Bloomberg over the weekend, revealing that the administration was pulling back permits, waivers, and licenses to western energy companies. Many of the firms, including Spanish Repsol and French Maurel et Prom, have been given a deadline of May 27 to cease their operations in Venezuela.
Repsol’s CEO Josu Jon Imaz said today that the company is communicating with U.S. officials in an “open and fluid dialogue,” according to Reuters. The company is reportedly looking for any pathway to continue business in Venezuela. Maurel et Prom also confirmed today that it received a notice that its license to operate in the U.S. was revoked.
Some background: The decision to revoke the operating licenses comes just days after Trump said he would impose a 25% tariff on any nation that imports crude oil from Venezuela. The secondary tariff appears to stem from the president’s frustrations over illegal immigrants from Venezuela entering the U.S.
A LOOK AHEAD:
March 31 Columbia University’s Climate School on Climate, Earth and Society is holding a panel discussion tonight on how artificial intelligence can drive climate tech solutions, and boost sustainability strategies.
March 31 – April 2 The 4th annual World Hydrogen North America conference is being held in Houston, Texas.
March 21 – April 2 The National Hydropower Association is holding Water Power Week in Washington D.C.
April 1 – 2 The SAFE Summit will be held in Washington D.C., bringing together leaders within the transportation, energy, national security, and supply chain industries to discuss solutions advancing energy security.
April 1 The House of Representative’s committee on Oversight and Government Reform’s subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs is set to hold a hearing titled “America’s AI Moonshot: The Economics of AI, Data Centers, and Power Consumption.”
April 2 President Trump has declared this Wednesday “Liberation Day” and plans to impose sweeping reciprocal tariffs on a number of countries.
April 2 The House Committee on Natural Resources’ subcommittee on Oversight and Investigations is scheduled to hold a hearing titled “Unleashing the Golden Age of American Energy Dominance.”
April 2 The Electric Power Supply Association is hosting its fourth Competitive Power Summit in Washington D.C., featuring remarks from FERC Commissioners David Rosner and Lindsay See as well as multiple state utility officials.
April 2 The 13th Annual Michigan Energy Innovators Conference will be held in East Lansing, Michigan.
April 3 The International Institute for Strategic Studies is holding a webinar discussion on critical minerals and green industries in the Indo-Pacific.
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