WHAT’S HAPPENING TODAY: Good afternoon and happy Tuesday, readers! If you missed the news last night, the Senate confirmed Energy Secretary Chris Wright in a 59-38 vote, completing President Donald Trump’s energy and environmental cabinet trio.
As the state of New Jersey has effectively given up on offshore wind development, some industry executives are wary of completely shunning the renewable power source as energy demand is only expected to grow. Plus, keep reading to find out how China retaliated against Trump’s tariffs that went into effect today and what energy products are affected.
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.
SHUNNING RENEWABLES MAY THREATEN ENERGY SECURITY: Top executives within the energy industry are offering a warning to Donald Trump, who in his first actions as president made massive cuts in federal support for renewable energy sources like wind and solar.
A reminder: On his first day in office, Trump blocked all lease sales for offshore wind projects and paused any new approvals, permits, leases, or loans for wind projects both on and offshore. In his National Energy Emergency declaration, the president also detailed a new definition of energy that notably did not include solar or wind power.
The details: Trump’s actions have been heavily criticized by climate activists and environmentalists who have advocated for an accelerated phaseout of fossil fuels. Trump’s actions have also come under fire from those in favor of an all-of-the-above energy strategy, as the national grid continues to face strain from rising demand caused by artificial intelligence, data centers, manufacturing, electrification, and more. Many in the industry have begun to warn that oil and natural gas won’t be able to fill the gap created by deserting renewable developments.
“We’re going to need more juice and a lot of it…I’m not sure I see the wisdom in slowing down the development of any resource right now,” North American Electric Reliability Corporation CEO Jim Robb told the Financial Times, adding that it could result in a deeper dependence on foreign nations like China and India.
Mark Brownstein with the Environmental Defense Fund agreed, telling the outlet that Trump’s dismissal of wind power “doesn’t make sense.” “If you believe that there is a national energy emergency and we need lots of new power — why would you arbitrarily take some of the cheapest options off the table?” Brownstein said.
CHRIS WRIGHT CONFIRMED TO LEAD ENERGY DEPARTMENT: The Senate confirmed Chris Wright to head the Department of Energy yesterday evening in a 59-38 vote.
Wright was the founder and CEO of the oil service firm Liberty Energy. He will now oversee the nation’s energy infrastructure and use of clean energy technologies. Wright will also be responsible for ensuring the nation’s electric grid can withstand the growing energy demand from artificial intelligence and data centers.
What are they saying: Chairman of the House Committee on Energy and Commerce, Rep. Brett Guthrie stated: “Maintaining affordable and reliable energy will be key to both our economic success and national security in the years ahead. Secretary Wright understands the importance of utilizing our domestic energy resources to secure the grid, lower prices, and create family-sustaining jobs.”
Colin Marsh, director of external affairs for NewRange Copper Nickel, a critical minerals project on Minnesota’s Iron Range stated: “Energy Secretary Chris Wright outlined a policy vision that emphasizes securing America’s energy and national security by developing domestic energy supply chains.
“NewRange Copper Nickel looks forward to producing the critical minerals needed to achieve those energy security priorities, and we look forward to working with him in his new role at DOE,” Marsh said.
Massachusetts Democrat Sen. Ed Markey stated: “Chris Wright is a bought-and-paid-for fossil fuel industry executive and hasn’t met a tract of land or aquifer of water he wouldn’t despoil through fracking.”
Markey added “Chris Wright at Energy, alongside Zeldin at EPA and Burgum at Interior, will use his position to push expensive and polluting fossil fuels on the American people for the benefit of his Big Oil and Big Gas allies.”
U.S. AND EL SALVADOR SIGN DEAL TO DEVELOP NUCLEAR ENERGY: As Secretary of State Marco Rubio left El Salvador on Tuesday, the Republican revealed he signed a cooperative memorandum of understanding regarding nuclear power between the two nations.
The details: The Memorandum of Understanding Concerning Strategic Civil Nuclear Cooperation (NCMOU) was signed by Rubio and El Salvadoran Foreign Minister Alexandra Hill Tinoco on Monday with the goal of supporting nuclear cooperation between the U.S. and El Salvador.
El Salvadorian President Nayib Bukele confirmed the deal in a social media post, saying the U.S. pledged to assist the country in developing nuclear energy. The State Department has said the deal is meant to enhance energy security while promoting the highest standards of nuclear safety, security, and nonproliferation.
“This cooperative MOU strengthens the U.S.-El Salvador bilateral relationship and helps promote mutual economic prosperity and advance our shared interests, including energy security,” Rubio said in a post to X. “We are eager to expand civil nuclear cooperation with other partners in the Western Hemisphere.”
JAPANESE MITSUI WEIGHS BACKING LNG PROJECT IN ALASKA: Japanese trading house Mitsui is reportedly weighing whether to support a liquified natural gas project in Alaska worth upwards of $44 billion.
The details: CFO Tetsuya Shigeta revealed today that the company was a possible candidate to back the project, according to Reuters. Japanese Prime Minister Shigeru Ishiba is set to meet with Trump this week at the White House, where the two will likely discuss Japan’s interest in LNG development in Alaska.
Shigeta was unable to provide further details, saying the company has “nothing we can talk about now, including our policy.”
A reminder: On his first day in office, Trump signed an executive order to tap Alaska for oil and gas development. It specifically supports projects exporting liquefied natural gas from the state, prioritizing any necessary permitting and pipeline construction to transport LNG to the U.S. and abroad. The order also calls on the U.S. to “fully avail” itself of Alaska’s lands and resources, maximize the development of natural resources, and expedite permitting and leasing for energy projects in the state.
MAJORITY OF EUROPEAN WATERWAYS ARE POLLUTED, EU SAYS: The European Commission is now warning that the majority of surface water bodies across the bloc are polluted with mercury and other toxic chemicals.
The details: In a series of reporters released today, the European Commission revealed that only 37% of surface water bodies — such as rivers, lakes, streams, ponds, creeks, and more — in the European Union have “good ecological status.” Much of the pollution stems from mercury and other chemicals called polycyclic aromatic hydrocarbons, according to the reports reviewed by Politico. These chemicals are often found as a result of carbon emissions from fossil fuels, or historical pollution in certain regions. As a result, the Commission is warning its members that many of these waterways are in a “highly critical” state.
“Our waters face significant challenges, from pollution and water supply threats to insufficient flood preparedness,” European Environment Commissioner Jessika Roswall said in a statement. “We must boost our efforts to build water resilience.”
Tackling the issue: In order to better protect and sustainably manage waterways in the EU, the commission is developing a European Water Resilience Strategy. On Tuesday, the executive body launched a portal calling on stakeholders to offer up evidence to better develop the initiative. The call for evidence is open for one month, with the commission aiming to adopt the feedback by the second quarter of this year.
DONALD TRUMP JR. ACCUSED OF ILLEGAL DUCK HUNTING IN ITALY: Donald Trump Jr. has been accused of illegally hunting duck near Venice, Italy, Reuters reports.
Two Italian lawmakers have urged authorities to take action against Trump Jr. for breaking environmental protection laws. One of the lawmakers, Andrea Zanoni, a member of the Veneto regional assembly, said on Facebook that he saw a video of Trump Jr. hunting in a European Union conservation zone.
“The video shows Trump Jr. with a ruddy shelduck (Tadorna ferruginea) in the foreground, a duck that is very rare in all of Europe and protected by the EU Birds Directive and by the Italian law on the protection of wild fauna … The killing or holding of this animal is punishable by law,” Zanoni said.
A spokesman for Trump Jr. told Reuters the hunting party had permits and were hunting in a legally allowed area. “Don takes following all rules, regulations and conservation on his hunts very seriously and plans on fully cooperating with any investigation,” spokesman said.
CHINA IMPOSES RETALIATORY TARIFFS ON UNITED STATES: Trump yesterday imposed 10% tariffs on all Chinese goods, which took effect on midnight, but China quickly hit back today with retaliatory tariffs on liquefied natural gas, coal, and more.
The White House imposed tariffs on Chinese goods to encourage China to stop the import of fentanyl. China, however, imposed a 15% tariff on coal and liquefied natural gas products. It imposed a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks. China’s tariffs will go into effect on Feb. 10.
“The US’s unilateral imposition of tariffs seriously violates the rules of the World Trade Organization. It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the US,” China’s ministry of finance said.
Trump yesterday also imposed tariffs, on Canada and Mexico but those have been delayed as the U.S. further negotiates with the two countries. The U.S. would impose a 25% tariff on all Canadian goods except for energy products, which would face a 10% tariff. Trump would impose a 25% tariff on all Mexican goods exported to the U.S.
Read more by Callie to see how much gas prices could rise if Canada tariffs take effect.
ICYMI – OFFSHORE WIND IN NEW JERSEY SUFFERS BIG BLOW: Offshore wind development faces an uncertain future in New Jersey as the state has effectively killed any chance of new projects receiving government funding.
The details: On Monday, the New Jersey Board of Public Utilities revealed it would be canceling the state’s fourth offshore wind solicitation, which would have allowed developers to offer up proposals to deliver offshore wind energy to the state in exchange for financial backing.
The decision came just days after oil and gas giant Shell said it would be pausing its involvement in the Atlantic Shores wind farm project, citing a number of financial reasons. Christine Guhl-Sadovy, the president of New Jersey’s BPU, cited Shell’s withdrawal from the project as a major driver behind canceling the bidding process.
“The Board concluded that an award in New Jersey’s fourth offshore wind solicitation, despite the manifold benefits the industry offers to the state, would not be a responsible decision at this time,” she said in a statement.
Democratic Gov. Phil Murphy said he supported the decision, despite having campaigned on heavily utilizing wind power as a renewable energy source in the state. Murphy acknowledged on Monday that the offshore wind industry is facing “significant challenges,” asking supporters to remain patient. “I hope the Trump Administration will partner with New Jersey to lower costs for consumers, promote energy security, and create good-paying construction and manufacturing jobs,” Murphy said.
A win for Trump: Trump’s disdain for wind power has been made well known in recent weeks, as the Republican issued an executive order targeting funding for both on and offshore projects. He has particularly criticized the Atlantic Shores wind farm project in New Jersey, calling it a “disaster” earlier this month. Just days before Shell withdrew from the project, Trump said: “Hopefully the project is dead and gone, as almost all unsightly and environmentally unsound Windmill project should be.”
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