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AM Briefing

Exxon Mobil Eyes Its Next Offshore Oil Patch After Guyana: Trinidad and Tobago

On methane rules, British wind, and the Israeli electricity market

An ExxonMobil refinery.
Heatmap Illustration/Getty Images

Current conditions: Singapore’s air is the worst in the world as wildfire smoke from Indonesia chokes the city state and neighboring Malaysia • Following a summer-like heat wave, temperatures in the American West are set to drop by as much as 50 degrees Fahrenheit as a cold snap moves in • In the Gulf of Mexico, Tropical Storm Isaias officially strengthened into the first Atlantic hurricane of the season this morning.


THE TOP FIVE

1. Exxon Mobil eyes its next offshore oil patch after Guyana: Trinidad and Tobago

With its offshore oil fields booming in Guyana and its opportunities opening in Venezuela, Exxon Mobil is eyeing the next location for the Americas’ oil and gas: Trinidad and Tobago. In an interview with the Financial Times this week, the company’s exploration chief said the island nation’s existing oil and gas industry could expand to tap the same basin east of Venezuela that has transformed Guyana from one of the hemisphere’s poorest nations to one of its richest in terms of per capita gross domestic product. “A lot of people ask, ‘well, where’s the next Guyana?’” John Ardill, Exxon Mobil’s vice-president and head of global exploration, told the newspaper. “In Trinidad, we moved in as a play extension to Guyana.” The agreement between Exxon Mobil and the Trinidadian government took “about half as long as it usually takes on a good day,” delivering a pact in “record time.”

America’s oil majors are also looking outside the hemisphere. As you may recall from August, I told you that Exxon Mobil was also considering a big investment in Africa, with Mozambique drawing particular attention. Brazil’s state-owned Petrobras, meanwhile, is expanding its own grasp on the Americas’ oil boom. On Wednesday, Upstream reported, the company bid $590 million for control of an ultra-deepwater concession.

2. The EPA is ‘days’ away from proposing methane rule rollbacks

The European Union is pausing implementation of its new rules requiring oil and gas exporters to more scrupulously track data on methane emissions. The U.S., on the other hand, is planning a straight-up rollback. At an oil industry conference in Santa Fe on Wednesday, Environmental Protection Agency Administrator Lee Zeldin teased out plans to gut core parts of the methane regulations finalized in 2024. “This proposal takes on many of the problems American producers and operators have raised with us,” Zeldin said, according to Argus Media. “That includes the burden on marginal wells and oil and gas operators in general, the super emitter program, associated gas and control device requirements.”

3. Record wind generation still couldn’t slash Britain’s high gas prices

Record wind power generation may have slashed how much natural gas Britain needed to burn last month for electricity, but it “wasn’t enough to shield the country from surging prices triggered by the war in Iran,” Bloomberg reported. Wind turbines pumped out 6.6 terawatt-hours of electricity in September, a record for the month and 4% more than a year earlier. As a result, gas-fired generation plunged to its lowest level on record for that month. But day-ahead power rates still doubled from a year earlier.

The world’s capacity of floating offshore wind, the subset of the sector that could vastly expand the areas of shoreline dotted with turbines, has reached 382 megawatts, a 38% surge over the past 12 months, according to a Renewables Now writeup of the latest report from the trade group RenewableUK. Meanwhile, Poland has now constructed all 76 of the standard turbines built into the seabed of the Baltic Sea for its first offshore wind farm. One-third of the turbines are now generating power, according to offshoreWIND.biz.

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4. South Korea unveils a $747 billion energy transition plan

South Korea plans to speed up its shift away from fossil fuels with a new goal of 100 gigawatts of low-carbon energy additions by 2030 and roughly $747 billion in government-led investment over the next decade. The plan, part of the Korean Green Transformation program, “seeks to make Korea one of the world’s top three green manufacturing powers by developing industries such as hydrogen-reduction steelmaking, next-generation solar cells, and all-solid-state batteries,” according to The Korea Times, an English-language daily. New nuclear reactors are also part of the strategy.

The move comes as Seoul advances construction of as many as eight nuclear reactors in the U.S., including six of America’s Westinghouse AP1000 and two of its own APR1400s, as I told you last week.

5. Virginia’s lieutenant governor comes out against the NextEra-Dominion merger

The utility megamerger of the century so far is “not in the best interest of Virginians.” That’s the judgment the state’s lieutenant governor, Ghazala Hasmi, rendered this week following a five-city public listening tour. The statement came ahead of the State Corporation Commission’s first local hearing on the deal, and marks what Utility Dive called “the most formal expression of opposition from Virginia’s executive branch so far.” Governor Abigail Spanberger, a fellow Democrat, has not yet taken a definitive position on the merger.

But the deal follows some clear market logic. Among the benefits: It would create, as my colleague Matthew Zeitlin wrote in May, “a storage juggernaut.”

THE KICKER

A crew cleans power lines at Israel’s Ashalim solar plant.EMMANUEL DUNAND/AFP via Getty Images

Israel’s booming tech sector and soaring stock market are just two ways its economy has dramatically changed from the socialism that defined the early decades after the country’s founding in 1948. Now that shift also includes the electricity market. Since market reforms allowed private actors into the grid at the start of last year, more than 2 million citizens, representing more than 500,244 private and business customers, have switched from the Israel Electric Corporation to private providers, according to The Jerusalem Post. Ratepayers buying electricity from private suppliers enjoy discounted rates ranging from 7% to 20%, “thanks to the lower generation costs in the private market.” Another 23,286 households and businesses submitted requests to switch suppliers just last month. OPC Energy, an independent power provider based in Tel Aviv, raised $200 million in bond issuances in August.

Red

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AM Briefing

Blue His House With a Blue Little Window

On electrification’s shortfall, AI for nuclear, and Alva Energy’s big plans

The Capitol.
Heatmap Illustration/Getty Images

Current conditions: Heavy rain is overflowing rivers in the Dominican Republic’s eastern inland towns, including Monte Plata, where floodwaters are washing away cars • With weeks to go before the Atlantic hurricane season officially ends, a new tropical storm may be forming between the Bahamas and Bermuda • It’s cloudy and 51 degrees Fahrenheit in London, where the British are marking Guy Fawkes Day, a holiday commemorating the 421st anniversary of the failed plot by English Catholics to assassinate King James VI of Scotland and I of England by blowing up the House of Parliament.


THE TOP FIVE

1. What to make of Democrats’ blue tsunami

It’s a rebuke of President Donald Trump! A new era! A sign that President Lyndon B. Johnson’s prediction that the Democrats would lose the South until the end of young Bill Moyers’ lifetime (he died last year) was true! Maybe it’s all of these things. But one thing is certain: Democrats’ big victory Tuesday night halts what my colleague Robinson Meyer called “Trump’s energy revolution,” meant to defy the economics of renewables. There’s still much to dissect — we don’t even know who won shockingly competitive U.S. Senate races in Mississippi and Alaska. But my colleagues have a nice slate of stories to help us get started:

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Green
Climate Tech

Is Climate Tech Back?

‘It’s truly possible that a lot of people will wake up and realize that the spell is broken from Trump.’

Voting for climate tech.
Heatmap Illustration/Getty Images

After Donald Trump won his second term two years ago, I wrote about “the death of climate tech” — or at least the death of the term. That largely held up. Climate-focused investors and startups increasingly dropped the label in favor of energy security, efficiency, and infrastructure resilience, often reframing their pitch to serve the booming data center industry along the way. Following the Democrats’ midterm sweep on Tuesday, I checked in with “climate tech” investors to see whether the industry might be ready for a rhetorical — and ideally literal — comeback.

On the rhetoric, they were largely unconvinced. On the substance, they were a bit more hopeful.

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Politics

What Does the Blue Wave Mean for Permitting Reform?

The odds of BAAJA passing likely grew a few degrees worse.

Voting and power lines.
Heatmap Illustration/Getty Images

In the lead-up to the midterm elections, the outlook for passing the Senate’s bipartisan permitting reform deal during the lame-duck session was already highly uncertain. While environmental and clean energy advocates praised the transmission sections of the deal, a growing chorus warned of negative consequences from its provisions to fend off politically motivated attacks on energy projects, as well as its changes to tribal consultation in the federal permitting process. Prominent clean energy Democrats John Podesta and Representative Sean Casten of Illinois also piled on. President Trump, meanwhile, was not holding up his end of the bargain to release proposed wind projects held captive by Department of Defense reviews.

Post-election, the odds of the Bipartisan American Affordability and Jobs Act’s passage are likely a few degrees worse. Jared Huffman, the Democratic Representative from California who is next in line to lead the House Natural Resources Committee, reiterated his view that the Senate should hold off on a vote and take another pass at the bill in the next Congress, when Democrats have more leverage. Other Democrats who were sitting on the sidelines of the debate may also now feel emboldened by the party’s overwhelming win and agree that a better deal could be had by waiting.

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