WHAT’S HAPPENING TODAY: Good afternoon and happy Friday, Daily on Energy readers! We are on day three of a government shutdown, and its effects are being felt across environment and energy-related agencies. Forest Service staff are raising concerns that critical tasks are being put on hold due to limited staffing. Read more to learn which essential tasks are paused.
In other news, the largest international green banking alliance is calling it quits after experiencing a decline in membership following President Donald Trump’s election.
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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: Ford CEO Jim Farley spoke on the podcast Decoder with Nilay Patel earlier this week to share his insights on the state of the auto industry.
Farley said “the difference between car companies…is not going to be what your sheet metal looks like. It won’t be how powerful your EV motor is. That’s all math. All the cars look nice. It’s going to be this digital experience for why someone buys this or that.”
“China Nio has an AI companion in the car. It’s like a physical thing. It’s like a little person that is your companion. And it works really well, and customers love it,” he added.
FOREST SERVICE STAFF LEFT PUZZLED BY GOVERNMENT SHUTDOWN: Amid the ongoing government shutdown, each federal agency has kept on a small percentage of employees to carry out their contingency plans. These plans typically allow employees to carry out tasks that protect public health and safety. However, some within the Agriculture Department’s Forest Service are claiming some of these crucial tasks have been paused.
Blocked burns: A Forest Service fire management officer told High Country News this week that the agency has been ordered to not conduct any prescribed burns in the regions they manage. Prescribed burns are controlled fires started in order to reduce the risk of large wildfires by targeting excess vegetation. While these burns can be ignited throughout the year, experts have said cooler seasons like autumn are ideal.
“This is the time of year you can get some really effective prescribed burning done,” Bobbie Scopa, with the Grassroots Wildland Firefighters, told the outlet.
Lack of communication: As Forest Service employees have been left puzzled by what activities they are still permitted to do, there has reportedly been an immense lack of communication from the administration. The fire management officer told the outlet that, in the days ahead of the shutdown, he was not provided any information as to who would be furloughed (as he has received in years past). The only communication he did receive before the funding lapsed was an email blaming Democrats for the shutdown.
“My entire career of I don’t know how many shutdowns, or threats of shutdowns, I’ve never had so much purposeful confusion thrown at us,” the fire management officer said.
NET-ZERO BANKING ALLIANCE NO MORE: The Net-Zero Banking Alliance is officially calling it quits a little over one month after pausing all activities, driven by the mass exodus of major western financial institutions.
The details: The United Nations-backed coalition confirmed today that its remaining members voted to abandon its traditional membership-based format and establish its climate change-related guidance as a framework. As a result of the decision, the NZBA said it would “cease operations immediately.”
Since 2021, the NZBA has developed resources to help banks and investment firms set decarbonization targets, which were required for all members. At its peak, the group had around 150 members who committed to removing as much carbon pollution as they emit by 2050 or sooner. These resources will still remain publicly available for firms.
Read more from Callie here.
WHITE HOUSE IN CONVERSATIONS WITH ANOTHER MINING FIRM: The Trump administration could be further expanding its reach into the critical minerals and rare earths supply chain, as the CEO of another domestic mining company confirmed this week that it is holding conversations with the White House.
The details: USA Rare Earth CEO Barbara Humpton revealed during an interview with CNBC yesterday that the company was in “close communication with the administration.” Her remarks came after she was pressed on whether the Oklahoma-based company was interested in striking a deal with President Donald Trump, as seen with other critical mineral and rare earth firms in the last few months.
Humpton did not specifically say if USA Rare Earth was open to selling a stake of the company to the administration, but did say it will take “a lot of players” to build out the domestic marketplace and supply chain for these minerals.
“What we’re doing is keeping the administration informed of our own plans,” she said.
The White House did not immediately respond to Daily on Energy’s inquiry regarding a potential deal.
Quick reminder: Just three days ago, the Department of Energy announced plans to take a stake in Lithium Americas in order to reduce dependence on foreign imports of critical minerals. As part of the deal, the Trump administration is taking 5% equity in the company as well as an additional 5% stake in its Thacker Pass lithium project in Nevada.
This marked the second deal the administration has made in the critical mineral and rare earths sector, the first being between the Department of War and MP Materials. The deal, made over the summer, awards the agency with a 15% stake in the mining company.
In addition to USA Rare Earth, analysts have suggested that the administration could also be eyeing Ramaco Resources and NiCorp for similar deals.
‘DRILL, BABY, DRILL’ UPDATE: The number of active rigs in the U.S. remained steady this week as not a single oil or gas drilling rig was added or removed from the overall tally.
Data released by Baker Hughes this afternoon does reveal that one land-based rig was shut this week and another offshore rig was opened – canceling each other out in the total tally of 549 active drilling rigs. This is still 36 fewer rigs than this time last year.
No major change is a positive sign for the industry, which appeared to be shedding rigs throughout the summer. Oil executives have warned that lower prices, combined with trade uncertainty and continued tariffs on products like steel, will make it difficult for producers in the Permian Basin and other major oilfields to pursue new drilling profitably.
Where prices stand: As of around 3 p.m. EST, domestic crude prices were toeing the $60 line, with West Texas Intermediate priced at $60.74 per barrel, up 0.43% from yesterday. International benchmark Brent Crude was also up by around 0.47% and selling at $64.41 per barrel. Both benchmarks were headed for weekly losses.
CHEVRON OIL REFINERY FIRE COULD RAISE GAS PRICES BY A DOLLAR: Californians could pay nearly a dollar more per gallon for gas after a fire erupted last night in Los Angeles at a Chevron oil refinery.
Patrick De Haan, an energy analyst with GasBuddy, said this morning on X that the fire could raise gas prices by nearly a dollar per gallon on the West Coast.
“This is likely to be a significant problem and potentially for months or more,” De Haan wrote on Friday. “This refinery can handle nearly 300kbpd of crude oil and is the largest refinery on the west coast. Preliminary *guess* is #gasprices could rise 35-95c/gal on the West coast.”
The fire comes at a time when California is trying to grapple with its low oil production, which has pushed Democratic California Gov. Gavin Newsom to shift his stance on the oil industry.
Last month, Newsom signed into law a legislative package that included a measure that would approve thousands of new oil drilling permits in Kern County, which is aimed at addressing low production.
Some details on the fire: The fire broke out last night at a Chevron oil refinery in El Segundo, California. The refinery spans approximately 1,000 acres and includes more than 1,100 miles of pipelines. The facility has been operating since 1911 and includes more than 150 storage tanks and can process up to 290,000 barrels of crude oil per day. Most of the fuel is used for gasoline for jets and diesel vehicles.
Read more by Maydeen here.
COMMENT PERIOD ENDS FOR EPA METHANE RULE FOR OIL AND GAS FACILITIES: Today is the last day to comment on the Environmental Protection Agency’s interim final rule that extends the compliance deadline for methane emission standards for oil and gas operators.
As a reminder: The EPA in July quietly issued an interim final rule to extend the compliance deadline for methane emission standards affecting oil and gas operators. The rule was finalized during the Biden administration in 2023, requiring operators to use technology to detect and control methane leaks from well sites. Oil and gas drillers also have two years to stop routine flaring, the practice of burning large amounts of gas produced by new wells.
But, the interim final rule grants oil and gas operators 18 months to install the required pollution controls.
The EPA has received about 1,800 comments as of this afternoon, here are some of them:
The U.S. Chamber of Commerce wrote, “The Chamber supports the continued reduction of methane emissions from the oil and gas sector, both voluntarily and by direct regulation under the Clean Air Act. Such regulations, however, must be smart and allow for adequate time for compliance, be cost effective, as well as follow the appropriate process and legal requirements under the Clean Air Act.”
The Environmental Defense Fund wrote, “The interim final rule ignores the strong record basis undergirding EPA’s final 2024 Rule and became effective immediately without prior notice or the opportunity to comment as required by the Clean Air Act and Administrative Procedure Act. EPA should therefore immediately rescind its interim final rule and continue implementing the 2024 Rule.”
“Oil and gas facilities emit methane, a potent greenhouse gas that is 80-times more powerful than carbon-dioxide in the near-term and responsible for one-third of the climate warming we are experiencing today,” EDF added.
TESLA SALES ROSE AS TAX CREDITS ENDED: Tesla’s sales rose 7% in the third quarter, ahead of the electric vehicle tax credits expiration.
Tesla delivered 497,099 vehicles between July and September, up from 462,890 in the same period last year, the Financial Times reports.
Maydeen wrote earlier this week about the broader surge in EV sales driven by people trying to buy while the credits were still available.
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