Strait of Hormuz tensions and global oil supply risks
The U.S. used 5,000-pound deep penetrator bombs to attack Iranian missile sites in the Strait of Hormuz. At present, following Iranian threats to target ships, many vessels are avoiding the Strait of Hormuz, a critical artery for the global energy market, through which about 20% of the world’s oil supply passes.
South Pars gas field and Iran energy infrastructure
** On Wednesday, Iranian state-run media reported an attack on facilities associated with its offshore South Pars natural gas field. It didn’t elaborate and it wasn’t clear if Israel or the United States had carried out the attack, though the U.S. has been operating primarily in southern Iran.
Bushehr nuclear plant incident report
** In Iran, the Bushehr nuclear power plant complex was hit by a projectile the night before but there were no injuries and the plant suffered no damage, the International Atomic Energy Agency said after receiving a report from Tehran.
Crude oil prices and Iraq-Turkey export deal
** Crude prices remained above $100 a barrel on Wednesday morning but eased from previous highs after Iraq signed a deal with Turkey to resume oil exports via its territory. Iraq has reportedly reached an agreement with Turkey to restart oil exports through its territory, having also agreed with Kurdistan to pump crude through a pipeline in the region.
U.S. Energy Developments
Gulf of Mexico drilling project approved for BP
** The Trump administration approves BP’s $5 billion ultra-deepwater oil drilling project off the coast of Louisiana despite opposition from environmentalists and Democrats.
Texas solar power growth leads the nation
** The Solar Energy Industries Association reports that Texas led the U.S. last year by installing 11 GW of solar power — more than twice the amount installed by any other state.
EV battery plant workforce returns in Tennessee
** General Motors and battery company LG Energy Solution recall 700 workers who were previously laid off due to sluggish EV sales as they work to redevelop a Tennessee EV battery plant to make grid-scale batteries.
Offshore wind leases settlement discussions
** The Trump administration is reportedly drafting a settlement agreement with TotalEnergies that would pay the company $928 million to cancel its two offshore wind leases in federal waters, including one off North Carolina.