WHAT’S HAPPENING TODAY: Good afternoon and happy Wednesday, readers! We’re inching closer to August recess and we’re sure many of you are excited to get out of D.C. and take some much-needed vacations. 🚙☀️✈️🌴 But before you escape – we have a few busy days of news ahead! Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list. The White House is eyeing a third extension to the Jones Act to help ease oil prices, despite opposition from the maritime industry and Republican lawmakers.
The waiver: President Donald Trump first issued a waiver to the Jones Act in March, allowing refineries to use foreign-flagged ships to transport fuel between U.S. ports. The purpose of the waiver is to lower gas prices by increasing the available fleet. The administration later extended the waiver, moving its expiration date to Aug. 16. And it is now considering another extension.Energy Secretary Chris Wright said during a media briefing in Texas yesterday that an extension of the waiver is “quite likely to happen.” He said the waiver has helped move energy resources around the country. As of July 28, the waiver has facilitated 195 voyages, resulting in the transportation of about 50 million barrels of fuel, according to a Cato Institute tracker. U.S. shipping industry opposition: The maritime industry has warned that the continued extension of the waiver could undercut American maritime jobs. Jennifer Carpenter, president and CEO of the American Waterways Operators, told Maydeen that, “it’s clear that the White House is searching for levers to bring down gas prices as the midterms approach, and we appreciate and understand that.” However, Carpenter, who also serves on the American Maritime Partnership, argued that the Jones Act waiver does not move the needle enough on gas prices and instead has shifted routine domestic commerce to foreign operators like China and Russia. “Transportation amounts to a very small amount of the price of fuel at the pump, and the incremental difference between U.S. flag vessels and foreign flag vessels, it’s minuscule,” she said.Reuters reported that international vessels transporting fuel from the U.S. Gulf Coast to the West Coast would save about 6.6 cents per gallon, or 1% of California’s current gas prices, according to Argus. It noted that there is higher demand for foreign ships to Asia on the East Coast, meaning that it is cheaper to ship on a Jones Act vessel. It was reported yesterday that the oil industry expected the waiver to be extended last month but the administration was continuing conversations with maritime industry representatives and lawmakers over making changes to the waiver. Carpenter said that there are people in the administration who understand their concerns, but others maintain that the waiver has helped. The domestic maritime industry is not alone with these concerns. Republican lawmakers have also vocally opposed further extending the waiver. For instance, last month, House Speaker Mike Johnson, House Majority Leader Steve Scalise and 50 other House Republicans sent a letter to Trump urging him to let the waiver expire. WHAT IS YUCCA MOUNTAIN?
