Dive Brief: The Federal Energy Regulatory Commission on Wednesday rejected a waiver request from the Midcontinent Independent System Operator and the Southwest Power Pool that would have allowed the grid operators to expand the scope of their 2024-25 interregional transmission study process. The waiver would have let MISO and SPP incorporate multiple scenarios in a single 10-year model rather than the multi-year analysis required by their joint operating agreement, FERC said. They would also have been able to use multiple metrics to peg the reliability and public policy value of interregional transmission projects instead of the “cost avoidance of pre-existing regional projects” metric required by the agreement. FERC Commissioner David Rosner dissented in the 2-1 decision. “The commission should not stand in the way of simple solutions that give MISO, SPP, and their stakeholders flexibility to improve the accuracy of their study,” Rosner said. Dive Insight: Under the MISO-SPP joint operating agreement, at least every two years the grid operators are required to conduct a Coordinated System Plan, or CSP, study to find cross-border transmission projects that would benefit them both. The study process has never identified an interregional project that would benefit both MISO and SPP because of the limited benefit valuations that are outlined in the agreement, according to the grid operators’ Jan. 15 waiver request. As a result, MISO and SPP proposed to their stakeholders a one-time plan to expand the CSP study scope to identify near-term upgrades that enhance transfer capability and yield multiple benefits across their footprints, they said. The proposal would provide a more comprehensive look at their system needs, according to MISO and SPP. However, FERC said the request failed to meet its criteria for approving waivers from FERC-approved rules, such as that a waiver be limited in scope. FERC said the requested waiver

Oil rose as Saudi Arabia surprised customers in Asia by hiking prices for its main crude grade, a vote of confidence that the market can absorb extra OPEC barrels. West Texas Intermediate crude advanced more than 1% to settle just below $68 a barrel, erasing earlier losses, while Brent settled above $69 a barrel. Saudi state producer Aramco will raise the price for Arab Light crude, its flagship grade, by $1 a barrel to $2.20 a barrel more than the regional benchmark for Asian customers in August, according to a sheet from the company seen by Bloomberg. The pricing move staved off a rout in oil after a simultaneous decision by eight OPEC+ nations to increase supply more rapidly than expected, adding 548,000 barrels a day in August, with more expected in September. “The decision to raise prices during the peak summer demand season signals that physical markets remain tight, suggesting the additional barrels can be absorbed — for now,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “In the short term, downside risks to crude appear contained.” Meanwhile, President Donald Trump unveiled the first in a wave of promised letters that threaten to impose higher tariffs rates on key trading partners, including levies of 25% on goods from Japan and South Korea beginning Aug. 1. That start date pushed back the previous July 9 deadline for country-by-country tariffs to go into effect. The move allows trade partners more time to negotiate away economy-crushing levies on their exports to the US. The delay has improved the near-term demand outlook for oil-consuming nations, including the European Union, which is facing especially punishing tax rates. Still, uncertainty surrounding the final outcome of talks continues to weigh on crude prices. Traders and analysts also noted that OPEC’s decision to hike

WASHINGTON—The U.S. Department of Energy (DOE) today extended a commitment to collaboration in water power research and development with Norway’s Royal Ministry of Energy. The extension of this previously established Memorandum of Understanding (MOU), which facilitates planning and coordination activities between the two countries, will further the Trump Administration’s efforts to reduce energy costs, strengthen grid reliability and security, and unleash American energy innovation as called for in President Trump’s Executive Orders on energy and Secretary Wright’s memorandum. “Strong partnerships drive innovation, and innovation strengthens America’s energy future,” said Energy Secretary Chris Wright. “Hydropower is a tremendous resource— one that supports reliable, affordable power across the country and holds vast potential to bolster America’s grid. By signing this Memorandum of Understanding with Norway, we are building upon our two nations’ shared expertise and advanced marine energy technologies to support President Trump’s pro-growth energy agenda for the American people.” “Hydropower and marine energy have potential to reduce energy costs and improve the resilience of our electric grid,” said Principal Deputy Assistant Secretary for Energy Efficiency and Renewable Energy Lou Hrkman. “Our collaboration with Norway—another country that is rich in water power resources—will help us expand our generation capacity, upgrade existing facilities, and cultivate the technical expertise we need to make the most of these opportunities.” In 2020, DOE and Norway’s Royal Ministry of Energy signed a five-year MOU Annex that brought together DOE’s Water Power Technologies Office and the Norwegian Research Centre for Hydropower Technology to collaborate on hydropower research and development. The latest MOU Annex expands the scope of this collaboration to include marine energy, which has the potential to provide locally sourced energy to millions of Americans in the most densely populated regions of the country. Under the extended MOU, the two parties will share foundational information, tools, and

The Department of Energy warns that blackouts could increase by 100% in 2030 if the U.S. continues to shutter reliable power sources and fails to add additional firm capacity. WASHINGTON— The U.S. Department of Energy (DOE) today released its Report on Evaluating U.S. Grid Reliability and Security. The report fulfills Section 3(b) of President Trump’s Executive Order, Strengthening The Reliability And Security Of The United States Electric Grid, by delivering a uniform methodology to identify at-risk regions and guide Federal reliability interventions.  The analysis reveals that existing generation retirements and delays in adding new firm capacity, driven by the radical green agenda of past administrations, will lead to a surge in power outages and a growing mismatch between electricity demand and supply, particularly from artificial intelligence (AI)-driven data center growth, threatening America’s energy security. “This report affirms what we already know: The United States cannot afford to continue down the unstable and dangerous path of energy subtraction previous leaders pursued, forcing the closure of baseload power sources like coal and natural gas,” Secretary Wright said. “In the coming years, America’s reindustrialization and the AI race will require a significantly larger supply of around-the-clock, reliable, and uninterrupted power. President Trump’s administration is committed to advancing a strategy of energy addition, and supporting all forms of energy that are affordable, reliable, and secure. If we are going to keep the lights on, win the AI race, and keep electricity prices from skyrocketing, the United States must unleash American energy.” Highlights of the Report: The status quo is unsustainable. DOE’s analysis shows that, if current retirement schedules and incremental additions remain unchanged, most regions will face unacceptable reliability risks within five years and the Nation’s electrical power grid will be unable to meet expected demand for AI, data centers, manufacturing and industrialization while

OPEC+ will increase oil production even more rapidly than expected next month, as the group led by Saudi Arabia seeks to capitalize on strong summer demand in its move to reclaim market share. Eight key alliance members agreed to raise supply by 548,000 barrels a day at a video conference on Saturday, putting the group on pace to unwind its most recent layer of output cuts one year earlier than originally outlined. The countries had announced increases of 411,000 barrels for each of May, June and July – already three times faster than scheduled – and traders had expected the same amount for August. The latest increase amplifies a dramatic strategy pivot by the Organization of the Petroleum Exporting Countries and its partners that has weighed on oil prices this year. Since April, the group has shifted from years of output restraint to reopening the taps, surprising crude traders and raising questions about its long-term strategy. Saturday’s decision was based on “a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories,” OPEC’s Vienna-based secretariat said in a statement. The cartel will consider adding another roughly 548,000 barrels a day in September at the next meeting on Aug. 3, according to delegates who asked not to be identified, which would complete the revival of 2.2 million barrels a day of supply shuttered in 2023. After that, the group has another 1.66 million-barrel tier of idle output to potentially consider. OPEC+ is pushing barrels into a market that is widely expected to be oversupplied later in the year. Brent oil futures have retreated 8.5 percent in 2025 as crude production rises both across the alliance and globally, while the threat to economic growth from President Trump’s trade war has cast a shadow on future demand.  Still, oil fundamentals look more

Mexico’s state-owned oil company is throwing Cuba a much-needed lifeline as the Caribbean island struggles to keep its power grid operational amid its worst economic crisis since the collapse of the Soviet Union.  Petroleos Mexicanos sold 3.1 billion pesos ($166 million) of crude and fuel to the communist-run nation in the first quarter of this year through its subsidiary Gasolinas Bienestar, according to a company filing.  The volume of exports — 19,600 barrels a day of oil and 2,000 barrels a day of petroleum products — marks a slight increase from the combined 19,900 barrels a day Pemex shipped to Cuba in the second half of 2023. Cuba has been reeling ever since its lynchpin tourism industry was crushed by the combination of tighter US sanctions during President Donald Trump’s first term and then the Covid-19 pandemic. Rolling blackouts are constant and the national power grid has collapsed multiple times over the past year. The dire conditions have prompted a mass exodus that has shrunk the island’s population by almost one-quarter over the past four years. Mexico’s energy shipments, first reported Sunday by newspaper El Universal, are part of what President Claudia Sheinbaum’s government describes as humanitarian support for Cuba. The island has been subjected to broad US sanctions for more than six decades. The latest sales represent 3.3% of Pemex’s total exports of crude oil and 1.9% of its petroleum product exports, according to the June 23 filing to the US Securities and Exchange Commission. The Mexican company said it has “procedures in place to ensure such sales are carried out in compliance with applicable law.” WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.