Top Stories

  • The U.S. Bankruptcy Court for the Southern District of West Virginia approved the sale of three mines belonging to bankrupt coal producer Blackjewel LLC to former owner Contura Energy Inc. The sale still requires federal approval after the government raised concerns over outstanding royalties and terms related to Blackjewel’s Wyoming assets. (Casper Star Tribune)
  • Colorado-based exploration and production companies PDC Energy Inc. and SRC Energy Inc. are discussing a potential merger, according to people familiar with the talks, who said the discussions may not ultimately lead to a deal. PDC Energy and SRC Energy had respective market values of $1.7 billion and $977 million on Tuesday. (Bloomberg)
  • The U.S. Department of Agriculture may have broken the law by relocating the Economic Research Service and National Institute of Food and Agriculture out of D.C., according to the department’s internal watchdog. The inspector general was not convinced by the USDA’s assertion that a federal law requiring it to receive congressional approval to pay for the move is unconstitutional. (CNN)

Chart Review

Events Calendar (All Times Local)

08/07/2019
USEA Briefing: An Update On The Status Of 45Q And How To Prepare For Its Usage 2:00 pm
Marathon Oil earnings release
08/08/2019
Atlantic Council Event on Covering the Energy Transition: A Conversation With Leading Journalists 2:30 pm
Climate One Event on Pro Sports and Climate 12:00 pm
Cheniere Energy Q2 earnings release
View full calendar

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Download the full report →

General

Court puts key PolyMet copper-nickel mine permit on hold
Dan Kraker, Minnesota Public Radio

The Minnesota Court of Appeals has placed a stay on a key water quality permit for the controversial PolyMet copper-nickel mine proposed for northeastern Minnesota.

Trump BLM channels Reagan’s Sagebrush Rebellion
Scott Streater and Jennifer Yachnin, E&E News 

On the campaign trail in 1980, Republican presidential nominee Ronald Reagan threw his support to the Sagebrush Rebellion — declaring himself a fellow “rebel” opposed to federal land ownership as he sought to win the White House — and handing a political victory to a burgeoning movement.

Trump administration throws cold water on climate change threat to coral reefs
Michael Wilner, McClatchy DC

National Security Council officials issued a challenge to the scientific consensus that warming oceans pose an intensifying mortal threat to coral reef systems, home to a quarter of all marine life and a vital resource in the global food market.

Oil sets new seven-month low on trade tensions
Ron Bousso, Reuters

Oil prices fell further on Wednesday, extending recent heavy losses as deepening U.S.-China trade tensions weighed on the outlook for the global economy and energy demand.

Oil and Natural Gas

Plains All American to begin commercial service on Texas pipeline next week
Collin Eaton, Reuters

U.S. pipeline operator Plains All American Pipeline LP expects to begin partial service on its 670,000-barrel-per-day (bpd) Cactus II pipeline next week, Chief Executive Willie Chiang said on Tuesday.

US, Saudi Arabia say they are working together on oil markets amid Gulf tensions
Dania Saadi, S&P Global Platts

Falih and US energy secretary Rick Perry met Tuesday in Washington to discuss the stability of oil markets and the kingdom’s hosting of the G20 presidency, among other issues, the US Department of Energy said in a statement posted on its website.

U.S. court sides with Venezuela’s opposition in battle over Citgo’s leadership
Marissa Luck, Houston Chronicle

Late Friday, the Delaware judge presiding over the case — Kathaleen McCormick — ruled that the Trump administration’s recognition of Guaido as the legitimate leader of Venezuela gives his government legal authority to appoint Citgo’s board of directors.

Advanced BioEnergy selling ethanol plants in Aberdeen, Huron
The Associated Press

Advanced BioEnergy is selling its Aberdeen and Huron ethanol plants to Glacial Lakes Energy for $47.5 million. Advanced BioEnergy, based in Bloomington, Minnesota, said the transfer is expected to take place in the third quarter of this year, if shareholders approve. 

Chevron’s Venezuela waiver not impacted by new US prohibitions
Brian Scheid, S&P Global Platts

President Donald Trump’s executive order prohibiting nearly all crude, diluent and all other commercial trade with Venezuela will not immediately impact a waiver granted to Chevron and other US oil services companies allowing them to continue working with PDVSA. But analysts believe the executive order, signed by Trump late Monday, clearly signals that Chevron’s waiver will not be renewed when it expires October 25.

Exxon Accused of Pressuring Witnesses in Climate Fraud Case
Nicholas Kusnetz and David Hasemyer, InsideClimate News

Prosecutors in New York are accusing ExxonMobil of trying to discourage potential witnesses from testifying about whether the oil giant misled investors over the costs it may face from future climate regulations. They’re asking a judge to block Exxon from making what they describe as “unreasonable” and extensive requests for documents from the witnesses.

Chesapeake continues drive to becoming oilier
Jim Magill, S&P Global Platts

The company that once billed itself as “America’s Champion of Natural Gas” reported in its Q2 earnings that it projects to grow its crude oil production by double digits in 2020, while reducing the amount of capital allocated to its legacy gas assets, and forecasting a double-digit decline in gas production in 2020.

After Being Harassed And Pushed Out Of A Shell Oil Refinery, This Woman Pushed Back
Zahra Hirji, BuzzFeed News

Over the past five years, 25 lawsuits alleging gender discrimination, harassment, or retaliation have been filed against oil refineries, according to a BuzzFeed News and Type Investigations review of federal and California court documents. Only three of those cases have made it to trial.

Utilities and Infrastructure

Power and Tech Giants Fight Over Airwaves Space in the U.S.
Millicent Dent and Stephen Cunningham, Bloomberg

Tech giants including Apple Inc. and Facebook Inc. contend the airwaves, in the 6 gigahertz range, should be open for use by the next generation of lightning-fast wireless networks. Utilities say the new networks threaten to create interference that could make it harder to keep the lights on.

Virginia orders Mountain Valley Pipeline to stop work over water-control issues
Sibyl Layag, S&P Global Platts

The Virginia Department of Environmental Quality found that MVP failed to provide and ensure the proper function of erosion and sediment controls according to site-specific plans on a roughly two-mile section of the project in Montgomery County, Virginia, according to a stop-work order issued Friday.

Lacking Quorum, FERC OKs ISO-NE Energy Security Plan
Michael Juser, RTO Insider

ISO-NE’s controversial proposal to compensate resources for maintaining inventoried energy during the winter months is now effective “by operation of law” because of inaction by FERC due to a lack of quorum at the commission.

Renewables

Continental to Eliminate Jobs, Cut Costs in Shift to E-Cars
Christoph Rauwald, Bloomberg

Continental AG plans to eliminate jobs and may sell some combustion-engine component businesses, deepening an overhaul at the German automotive supplier caught up in the disruptive industry shift to battery-powered vehicles.

Taking in Just $70 a Day, Trump’s GM Plant Savior Is in Trouble
Kyle LaHucik and David Welch, Bloomberg

Now more than ever, Workhorse looks more like Lordstown’s lottery ticket than a savior to be taken seriously. While at this juncture it’s hard to imagine the company having the capital needed to get GM’s factory humming again, it does have a ray of hope to point to: a potentially lucrative contract to build next-generation mail trucks for the U.S. Postal Service.

Wind/solar twinned with EVs ‘pose existential threat to gasoline’: BNP Paribas
Henry Edwardes Evans, S&P Global Platts

“While oil has a massive flow-rate advantage [over wind and solar], this is time limited. We think the economics of renewables are impossible for oil to compete with when looked at over the cycle,” Lewis said.

Tesla Scrutinized by U.S. Agency Over Model 3 Safety Claims
Dana Hull and Ryan Beene, Bloomberg

The U.S. National Highway Traffic Administration sent Tesla Inc.’s Elon Musk a cease-and-desist letter last year regarding Model 3 safety claims and subpoenaed the carmaker for information on several crashes, according to documents posted by a nonprofit advocacy group.

Massachusetts Delays Offshore Wind Bids, Allows Price Bump
Adrianne Appel, Bloomberg Environment

Massachusetts will delay its second big solicitation for offshore wind by a couple of weeks because of a last-minute change to allow the price of the wind energy to increase. Massachusetts is well on its way to hosting the nation’s first commercial-scale offshore wind project.

Coal

Georgia Power coal ash plan mirrors conditions that led to Duke spills: Report
Catherine Morehouse, Utility Dive

Georgia Power’s plan to leave over 50 million tons of coal ash capped and in place does not properly take into account current and long term impacts of the toxic pollutants, according to a report compiled by geologist and hydrogeologist Mark Hutson, retained by the Southern Environmental Law Center and two clean water groups.​

Nuclear

SC spending millions on four consultants to explore Santee Cooper sale
Avery G. Wilks, The State

State lawmakers are considering selling, reforming or allowing another firm to manage the state-owned power company after it lost $4 billion on the failed expansion of the V.C. Summer nuclear power plant in Fairfield County.

Climate

Chamber Tries to Save Trump Power Plant Rule With or Without Him
Jennifer A. Dlouhy, Bloomberg

The U.S. Chamber of Commerce has gone to court in defense of the Trump administration’s plan to ease limits on power plant emissions, a move that would ensure the nation’s top business lobbying group has a say on the matter even if President Donald Trump loses reelection next year.

Medical Schools Are Pushed to Train Doctors for Climate Change
Brianna Abbott, The Wall Street Journal

More doctors, health organizations and students are pushing for medical education to include climate change, saying that physicians and other health-care workers need to prepare for the risks associated with rising global temperatures.

Opinions, Editorials and Perspectives

Reforming Net Metering Would Restore Fairness for Energy Consumers
Steve Pociask, Morning Consult

Federal and state policymakers have created a dizzying variety of tax credits, rebates, grants and other incentive programs to encourage residential rooftop solar systems. At the state level, one policy has spread rapidly: net metering. 

California leaders downplay the dangerous effects of sprawl during wildfires
The Editorial Board, Los Angeles Times

The fire chief is right that new homes built with fire-resistant materials and surrounded by less flammable landscaping are safer than older homes. But fire resistant is not the same as fireproof.

Research Reports

Fossil Fuel Subsidies: A Closer Look at Tax Breaks and Societal Costs
Environmental and Energy Study Institute 

Historically, subsidies granted to the fossil fuel industry were designed to lower the cost of fossil fuel production and incentivize new domestic energy sources. Today, U.S. taxpayer dollars continue to fund many fossil fuel subsidies that are outdated, but remain embedded within the tax code.

Morning Consult