WHAT’S HAPPENING TODAY: Good afternoon and happy Friday, readers! We have some more weekend plans for everyone in the Washington, D.C., area. This weekend, one of the biggest Asian food festivals will be taking place here in the nation’s capital, known as Panda Fest. Learn more about the festival here. 🐼🧋🍣🍜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. “If you think about the amazing work we’re trying to do with AI…it’s all incredible and it’s inspiring,” Ann O’Leary, vice president for global policy at OpenAI, said during Politico’s California summit this week. “But when you have a data center in your backyard, it’s not inspiring you. And so I think we have real work to do.”
A POTENTIAL BOOST FOR CALIFORNIA OIL
Phillips 66’s return to California could offer a boost for the state’s oil market, as refiners have fled and drivers in the state face some of the highest gas prices in the country.After ending its refining operations last year in California, Phillips 66 announced earlier this week that it will be returning to the state to work on a massive pipeline project that will bring fuel to California from the Midcontinent and Gulf Coast region. As a reminder: Phillips 66 is partnering with Kinder Morgan and HF Sinclair on the $5 billion Western Gateway Pipeline project. The 1,300-mile pipeline would transport up to 230,000 barrels of oil per day from St. Louis and the Gulf Coast to Arizona and California. The project is expected to be completed by 2029. The California impact: A spokesperson for California Gov. Gavin Newsom’s office expressed support for the new pipeline, telling Daily on Energy that the industry has long described California as a “fuel island” and said that status has been a challenge.“Now, we have a solution underway — a bridge connecting California to the rest of the country’s fuel supply,” the spokesperson said. “We’re encouraged by this investment and support efforts that strengthen the resiliency of California’s fuel supply as we continue reducing our dependency on oil.”California for years has relied heavily on foreign oil sources, including from countries in the Middle East, and faced some supply chain disruptions due to the war in Iran. At the same time, California has lost about 17% of its oil refining capacity in recent years. Michael Mische, professor at the University of Southern California, told Maydeen that the pipeline will be very effective, adding that anything that reduces foreign dependency on crude oil and gasoline is welcomed. In regards to California gas prices, Mische said there will be little influence from the project, but it will have “a psychological effect on stabilization.” He noted that out of the 230,000 barrels, at best, around 105,000 will go to California, citing that Phillips 66 has said the pipeline would supply Arizona with about 125,000 barrels of oil. “It is badly needed, and it’s going to have a positive effect on the markets. There’ll be some stability and some more assurance as to the availability of the product,” Mische said. However, he added that “it does nothing for the in-state producers of crude oil and it does nothing for the in-state producers of gasoline. There’s no value to the producers of crude oil here or gasoline to the surviving refineries.” BULLDOZERS IN TEXAS’S BIG BEND NATIONAL PARK – WHAT’S GOING ON?
