House lawmakers will have the opportunity to meet with oil executives Wednesday at a hearing. We’ll also look at a proposed asbestos limit from EPA and the EUs move to sanction Russian coal
This is Overnight Energy & EnvironmentThe latest news on energy, the environment, and beyond is available at. Rachel Frazin was the editor of The Hill. Zack Budryk was the reporter. You received this newsletter from someone else? Register here
Big Oil and the gasoline price are being questioned by lawmakers
Democratic lawmakers are expected to face off against energy executives on Wednesday over high gasoline prices.
Executives at Shell, Chevron and ExxonMobil as well as Devon Energy Corporation (and Pioneer Natural Resources Company) Will testifyBefore the House Energy and Commerce Committee.
This hearing marks the second appearance of four executives from the oil majors before Congress. In October, they appeared before the House Oversight and Reform Committee as part of Democrats investigation into whether they ran a climate disinformation campaign.
Wednesday’s event will focus instead on high gasoline prices. Democrats have accused companies price gouging following the invasion of Ukraine by Russia.
Analysts have doubted the allegations of irregularities. They cited the rocket and feather phenomenon in which gasoline prices rise when oil is expensive, but fall slower when oil prices drop.
Jen Psaki, White House Press Secretary, said last month that if gas retailers’ costs are falling, they should immediately pass those savings onto consumers.
For more information, visit TheHill.com on Wednesday
EPA proposes to ban common types of asbestos
The Environmental Protection Agency (EPA) on Tuesday proposed a major step to limit exposure to asbestos, a carcinogen that kills 40,000 Americans each year.
The EPA proposed to ban the import, manufacture, processing, and distribution of chrysotile asbestos.
Chrysotile asbestos, the most widely used type, can be found in car brakes and linings.
Partisan differences? This move is different from a Trump-era rule about asbestos, which sought federal approval for certain imports or manufactures of products that use asbestos.
The Trump rule was criticized by environmental and health advocates as it did not ban smoking.
Asbestos has been linked to respiratory issues such as lung cancer, mesothelioma (a cancer found in the linings of the lungs), and asbestosis (a lung disease).
The use of asbestos in consumer products has been declining over the past few decades.
According to the EPA chrysotile, the only type currently imported, processed, or distributed in the U.S. is chrysotile.
The agency also said in a statement that while its current proposal does not address past uses of asbestos, it is evaluating legacy uses and disposals.
Find out more about the proposed ban.
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EU BANS RUSSIAN COPAL IMPORTS
Tuesday’s announcement by the European Commission was part of a new set of sanctions against Moscow.
In a statement, Ursula von der Leyen (President of European Commission) stated that the ban, which is worth 4 billion euros ($4.4 million annually), will reduce another important source of revenue for Russia. According to Eurostat data, 19% of Europe’s coal came from Russia by 2020.
Oil could be next Media reports from Tuesday suggested that the new package might include an oil ban. However, the president stated that the commission was working on additional sanctions on oil imports.
Noting that four of the four E.U. sanctions packages have been effective, von der Leyen emphasized the need to increase pressure. The four sanctions packages that the E.U. has issued so far have been very hard on the Kremlin and have limited its political and economic options. Von der Leyen stressed that we must increase our pressure.
Today, we propose to take our sanctions one step further, she stated. We will make our sanctions more effective and more sharper so that they can penetrate even deeper into the Russian economy.
You can read more from The Hills Sharon Udasin.
SAUDIS SET TO HIKE PRICES
Saudi Arabia’s oil producer state is expected to raise prices across the region as the kingdom’s market advantage increases amid the Ukraine crisis. Its April record was broken.
Monday’s hike by Saudi Aramco in prices for shipments to Asia was $9.35 higher than the benchmark. The increase is $4.40 higher than the April level which was itself a record.
This decision came a week after OPEC+ voted to gradually increase oil output despite U.S. demands to do so. The U.S. oil prices are expected to rise by $2.20 per barrel, while they will increase by $3.00 per barrel in northern Europe.
According to Giovanni Staunovo (a commodity analyst at UBS Group AG), the increase is likely have significant geopolitical implications.
He said that the official selling price (OSP), is determined by a variety of factors, including local market conditions and refinery yields. Therefore, a significant increase was expected.
Staunovo shared with The Hill that another factor might have affected the OSP price setting. Staunovo stated in an email that the U.S. administration’s decision to tap its strategic oils reserves.
You can read more about it here.
ON TAP TOMORROW
- EPA Administrator Michael Regan Will testifyBefore the Senate Environment & Public Works Committee about the agency’s budget
- The House Energy & Commerce Committee will hold a hearing featuring testimony from executives of Exxon, BP, Chevron and Shell, among others, entitled Gouged at the Gas Station: Big Oil and Americas Pain at the Pump
- The Senate Environment & Public Works Committees Subcommittee on Clean Air, Climate, and Nuclear Safety will hold hearings to examine the nominations of Beth Pritchard Geer, Robert P. Klein, and L. Michelle Moore, to be members of the Board of Directors, and Benny R. Wagner to be Inspector General of the Tennessee Valley Authority.
WHAT WE’RE READING
- Scientists are alarmed at the new forever chemicals definition by US regulators (The Guardian)
- Joe Manchins’ Advice for Oil Execs Testing: Fly Commercial to DC (Bloomberg)
- California’s climate goals are threatened by rising electric billsE&E News)
- Exxon announces record quarterly profit at oil and gas prices (Reuters)
ICYMI
That’s all for today. Thank you for reading. For the most recent news and coverage, visit The Hills energy & Environment page. We look forward to seeing you tomorrow.
