WHAT’S HAPPENING TODAY: Good afternoon and happy Thursday, readers! In today’s Daily on Energy, we take a closer look at declining gas prices, a development President Donald Trump is trying to tout as a win.
In other news, there are reports that India plans to ramp up its imports of Russian oil, despite Trump’s sweeping tariffs on New Delhi.
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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.
WHITE HOUSE TOUTS LOWEST LABOR DAY GAS PRICES SINCE 2020: Gas prices are expected to fall to their lowest level in five years over Labor Day, a major win for President Donald Trump and his promise to lower prices at the pump.
The details: The White House celebrated the falling prices today, with spokeswoman Taylor Rogers telling the Washington Examiner in a statement that Americans have been “saving significant money at the pump all summer long.”
“President Trump promised to unleash American energy and make everyday life more affordable for families, and he delivered,” Rogers said.
Earlier this week, GasBuddy forecast that the average gas prices on Labor Day will hit $3.15 per gallon, 14 cents cheaper than last year and the lowest since 2020. As of today, the average price of gas was around $3.21 per gallon, according to data compiled by AAA. This is roughly seven cents more than it was last week, a surge driven by the temporary closure of a refinery in Indiana, which had been experiencing flooding.
How far is it dropping? While prices are on the downward trend, Trump has continuously claimed that prices at the pump have fallen around $2 per gallon or even lower. He repeated this claim during his cabinet meeting on Tuesday, alleging that prices fell below $2 “in a couple of locations in the south.” The president did not specify which states.
Patrick De Haan, head of petroleum analysis with GasBuddy, quickly took to social media to explain that the price tracking company has not seen any stations reporting gas at $2 per gallon or lower. Even wholesale prices – which are known for being much cheaper than retail – have not fallen that low, he said. De Haan is expecting gas prices to fall below $3 per gallon this fall, though that could be challenged by hurricane season, trade uncertainty, and negotiations over ending Russia’s war in Ukraine.
“However, I remain optimistic that as cooler weather invades, gas prices too, will seasonally cool off,” he said this week.
INDIA POISED TO INCREASE RUSSIAN ENERGY IMPORTS, DEFYING TRUMP: The Trump administration’s steep tariffs on India have yet to successfully force the country to stop buying Russian oil, as reports now indicate New Delhi plans to increase imports next month.
The details: Sources involved in the Indian trade market told Reuters this week that Indian oil refiners plan to increase their purchases of Russian oil in September by 10-20% compared to August levels. This equates to roughly 150,000-300,000 more barrels per day.
During the first 20 days of this month, India imported around 1.5 million barrels per day of oil from Russia, similar to the amount traded in July, according to Reuters. India is widely considered to be one of largest importers of Russian crude, with Moscow supporting roughly 40% of Indian oil demand.
Due to this reliance on Russia, some analysts doubt India will make any major changes to its energy makeup and supply chain.
Quick reminder: The U.S. has placed a 50% tariff on goods from India over its continued imports of Russian energy. Trump previously described the tariff as “secondary sanctions” on Moscow, due to its years-long war in Ukraine which has been heavily funded by Russia’s energy sector. The increased tariffs on India went into effect yesterday.
FORMER SIERRA CLUB DIRECTOR ACCUSED OF SEXUAL HARASSMENT: An employee from one of the most prominent green groups, the Sierra Club, filed a complaint earlier this year accusing former executive director Ben Jealous of sexual harassment and bullying.
Bloomberg reports that the employee’s complaint alleged that Jealous made unwanted sexual comments and also engaged in verbal abuse and screaming fits toward the employee.
“When we receive complaints, we investigate them,” Sierra Club spokesman Jonathon Berman told Bloomberg.
The allegations come just weeks after Jealous was unanimously voted out of the Sierra Club due to allegations of misconduct. The group at the time did not disclose any information about the allegations.
The organization’s rank-and-file had concerns about Jealous after years of budget cuts, layoffs, and complaints of unfair labor practices. Jealous was placed on leave in July.
Jealous removal and now allegations of harassment come at a time when the administration is taking action to roll back climate policies and regulations. The group is involved in multiple lawsuits challenging the administration’s actions.
FORMER NRC STAFF WARN OF AGENCY ‘BRAIN DRAIN’: The president’s overhaul of the Nuclear Regulatory Commission has left several former employees of the independent agency concerned about its ability to safely and effectively accelerate the regulatory process.
The details: The NRC has been subject to a sweeping overhaul from the executive branch, losing nearly 200 employees since Trump took office, according to the Financial Times. Departures, driven by both early retirement offers or flat-out resignations, are reportedly expected to continue, as only three of the five commission seats are filed. When looking at just the higher-ups, nearly 14 out of 28 members of the NRC’s senior leadership team are sitting in an “acting” capacity.
Scott Morris, a former NRC deputy executive director of operations who left the agency in May, told the outlet that the commission is facing an “unprecedented situation” with the shakeup.
“This is really concerning for the staff and is one of the factors causing many key staff and leaders to leave the agency they love . . . creating a huge brain drain of talent,” Morris told the Financial Times.
Former NRC officials told the outlet that departures first began in tandem with the start of the nuclear energy renaissance seen in the private sector, as it opened new job opportunities. However, the administration’s crackdown on the agency has only encouraged staffers to leave.
Quick reminder: Trump has aimed for revamping the NRC as part of his administration’s broader effort to rapidly deploy new nuclear energy in order to meet growing energy demands brought on by artificial intelligence. In an executive order signed in May, the president called for the agency’s licensing timeline and agency culture to be reformed. He specifically ordered the agency to make decisions on reactor licenses within 18 months. While he did not call for any commissioners to be fired or removed from the NRC, the order kicked off the broader overhaul seen over the summer.
EXXON SAYS GLOBAL NET ZERO GOALS ARE FADING AMID THE RISE OF COAL: Exxon Mobil said that the global energy sector’s net zero goals are slipping away due to high energy costs and the rise in coal use, Bloomberg reports.
The oil giant stated in its Global Energy Outlook that global emissions will decrease by a quarter by 2050, which falls short of the two-thirds needed to meet international emission targets. Meanwhile, coal consumption is rising due to a slowdown in the deployment of renewable energy sources and growing energy demand. Coal is also one of the most polluting energy sources.
“If the world tries to shove in some of these more expensive sources too fast, there will be a reaction from consumers,” Chris Birdsall, Exxon’s director of economic, energy and strategy planning, told reporters. “In democratic societies where there are elections, elections have consequences. We can see political changes that then can slow progress.”
The Trump administration has taken action to slow the growth of renewables, especially wind, and boost the use of fossil fuels. The administration has vowed to revive the coal industry. Trump has signed an executive order to grow the domestic coal industry and directed agencies to deregulate the sector.
U.S. COULD SEE BATTERY SURPLUS UNDER TRUMP: The Trump administration’s policies targeting electric vehicles and other electrification efforts are set to leave the country with a major surplus of batteries by 2030, according to a new report.
The details: The report, released by BloombergNEF today, estimates that the U.S. will deploy nearly 378 gigawatt-hours of batteries within the next five years. This is roughly 56% lower than previous estimates, meaning that manufacturers are set to outpace demand by more than half of what is actually needed.
There are approximately 193 gigawatt-hours of battery capacity currently installed, and another 428 gigawatt-hours is expected to be produced by 2030. If all projects advance, this could leave the industry with a surplus of around 243 gigawatt-hours. Analysts, however, are not expecting the surplus to last for long.
Shrinking demand: The Trump administration has taken a number of steps to reduce or completely end federal incentives for electric vehicles and renewable energy sources – two industries that rely heavily on large-scale and advanced batteries.
Many investors appear to have lost confidence in the market, as regulatory support for deployment continues to shrink. As a result, multiple power and tech companies have abandoned plans to build new battery plants. Matthew Hales, a BNEF analyst, described these market conditions as a “poison pill for US manufacturing hopes.”
FLOODS IN PAKISTAN DISPLACED NEARLY 250,000 PEOPLE: Rescue efforts are underway in Pakistan’s eastern Punjab province after heavy rainfall hit the region.
The floods have displaced about 250,000 people and have affected more than 1 million people in the region.
India earlier this week warned Pakistan that it would release water from major dams upstream due to heavy rainfall. The release of water led three rivers that flow into Punjab to overflow. It caused flooding in more than 1,400 villages along the Ravi, Sutlej, and Chenab rivers.
Both countries have endured severe monsoon rainfall. BBC said that the rainfall has killed more than 800 people in Pakistan since June.
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