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** Daily Energy News ┃ 05/07/26
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Welcome to In The Pipeline, your trusted source for daily energy news.
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** UAE's decision looking better and better.
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Washington Times ([link removed]) (5/7/26) reports: "Iranian officials are considering a new proposal from the U.S. that could jump-start peace negotiations as President Trump threatens to resume a devastating bombing campaign if Tehran does not agree. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Tehran is reviewing the proposal and would submit an official response to Pakistani mediators. The terms the Trump administration offered to Iran this week have not been made public, but some Iranians familiar with the proposal have dismissed the one-page memorandum as a list of 'American wishes' rather than a serious offer...On Wall Street, the S&P 500 climbed 1.5% for its best day in nearly a month and hit another record high. The Dow Jones Industrial Average jumped 612 points, or 1.2%, and the Nasdaq composite rose 2% to its own record...Tensions in the strait, which Iran has
kept effectively closed for two months, continued after a Navy fighter jet disabled an Iran-flagged oil tanker trying to breach the U.S. blockade of Iranian ports. About 20% of the world’s oil flows through the strait...Iran reacted furiously to the safe-passage guarantees with a series of attacks on commercial and U.S. naval vessels in regional waters. The United Arab Emirates also reported intercepting more than a dozen Iranian missiles Monday and reported fires at its oil facilities. The attacks underscore Iran’s continued ability to strike at the Persian Gulf region’s most valuable assets despite enduring weeks of intense U.S. and Israeli bombardments. The attacks also follow the UAE’s departure from OPEC last week. 'The recent attacks on the UAE are particularly important because they were directed at the UAE’s oil facilities in Fujairah, which have been a critical lifeline for the country’s oil industry during the war,' said Caleb Jasso, a senior policy adviser at the Institute for
Energy Research. 'Although not the first time the area has been subject to attacks, the timing of the most recent ones can’t be ignored, given the UAE’s recent departure from OPEC.'"


** A cartel with major players on the outside isn't much of a cartel at all.
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RealClearEnergy ([link removed]) (5/6/26) op-ed: "On May 1, 2026, the United Arab Emirates (UAE), one of the earliest members of the Organization of Petroleum Exporting Countries (OPEC), left the group after 59 years of membership. The decision was not abrupt, as the UAE has been actively considering leaving since 2019, when Qatar left to focus on liquefied natural gas (LNG) production. The war with Iran has undoubtedly influenced the UAE’s decision to leave OPEC, especially since it, and the city of Dubai specifically, has been hit by more Iranian missiles and drones than any other Gulf country. Most recently, on Monday, May 4th, the UAE announced that, despite the supposed ongoing ceasefire, it intercepted multiple Iranian drones and missiles. This has caused significant damage to some of its critical infrastructure and to its image of top-tier safety, both of which will take time to
rebuild. Given that the war is ongoing, although traffic through the Strait of Hormuz is slowly increasing, the UAE’s departure from OPEC at such a tense regional moment may lead Iran to increase its attacks on the UAE’s oil infrastructure, as it is now a regional competitor...Having left OPEC, the UAE will now have more flexibility to adapt to market conditions. By uncuffing itself from arbitrary production caps, the UAE will be able to maximize its oil industry’s potential, yielding both immediate and long-term economic benefits. Additionally, it should be expected that neighboring Gulf countries will be watching how the UAE performs post-OPEC, and if the UAE demonstrates strong success, it could prompt other members to re-evaluate the benefits of their own membership. Furthermore, the Gulf countries will now have to compete directly with a neighboring country with extensive oil reserves, which may prompt OPEC to reassess production caps to address the competition. Leaving OPEC was the
right decision for the UAE, and although it won’t be an immediate market disruptor, this action will have long-lasting geopolitical effects that will not only benefit the UAE but the global oil market as a whole. "


** Microsoft abandoning Big Green, Inc. to chase bigger green dollars.
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Bloomberg ([link removed]) (5/6/26) reports: "Microsoft Corp. may shelve one of the industry’s most ambitious clean-energy targets as it tries to remove hurdles that could hold it back in the race to power data centers, according to people with knowledge of the matter. The company is weighing whether to delay — or even abandon altogether — its 2030 target of matching 100% of its hourly electricity use with renewable energy purchases, according to the people, who requested anonymity to discuss a private matter. The costly and energy-intensive build-out of data centers is affecting views on the feasibility of climate commitments made before the AI era, the people said. Talks inside Microsoft are ongoing and no final decision has been made, they also said...Announced in 2021, Microsoft’s flagship clean-power goal — dubbed 100/100/0 — was meant to match 100% of its
electricity consumption, 100% of the time, with zero-carbon energy purchases (all from the same power grids from which it was drawing the energy). The hour-by-hour matching commitment was considerably more ambitious than Microsoft’s previous target, which it has already met, of buying enough renewable energy to match its annual electricity consumption. In their latest sustainability reports, Meta, Alphabet Inc.’s Google, Amazon and Microsoft said their carbon emissions went up 64%, 51%, 33% and 23%, respectively, compared with benchmarks predating the first release of ChatGPT in late 2022. Microsoft singled out 'growth-related factors such as AI and cloud expansion' as reasons behind the surge in emissions."


** PJM surrenders, admits defeat.
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PJM ([link removed]) (5/6/26) release: "PJM today launched an effort to rethink the future of its wholesale electricity markets with the publication of Powering Reliability Through Market Design (PDF). The report frankly assesses the current industry landscape of high prices, burgeoning electricity demand and reluctant investors, and catalogues the foundational decisions that will be required of industry and government to meet those challenges for the long term. PJM and stakeholders from the public and private sectors are actively working on stopgap solutions to meet the accelerating growth in electricity demand driven by the proliferation of data centers, while also protecting consumers and system reliability. The PJM Board of Managers has recognized that current price volatility – while economically rational – is eroding the public-private compact that allows the market to function, and that
the basic assumptions of the capacity market must be reexamined in a resource-constrained world. In January, the PJM Board directed staff to undertake a series of measures to address short-term and long-term challenges, including a holistic review of the capacity market design and investment incentives."


** California is running on empty.
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Fox News ([link removed]) (5/5/26) reports: "Californians are facing growing uncertainty at the pump after the state’s last major oil shipment from the Strait of Hormuz arrived in Long Beach on Monday, as leaders warn the state has roughly four to six weeks of fuel supply left under normal conditions. The shipment was the last to leave the Strait of Hormuz since Iran closed it in February, forcing state officials and refinery operators to find new sources of crude while also trying to keep up with converting it into gasoline to meet consumer demand. 'The closure of all that capacity in California is kind of coming to roost right now because California refineries can't keep up with California demand,' said Ross Allen, a Chevron spokesperson. Gas prices have continued to climb. AAA reported the current average price in California is $6.11 a gallon. The California Energy Commission said refiners
are already working to adjust and report the state has a four to six weeks worth of gasoline and diesel in supply...Allen said California’s reliance on imports leaves it exposed. 'California is in a tough spot because it does import a lot of its products,' Allen said. 'About 20% of its jet fuel and about 25% of its gasoline comes from overseas refineries.'"
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**

"[California's high gas prices] isn't bad luck. This is by design. This has been decades of blocking in state production, killing pipelines, and imposing an onerous California-only refining standard on refiners and then pushing those refineries to close.
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– Tim Stewart, U.S. Oil & Gas Association ([link removed])


** Trendline
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[link removed]
Falling capacity accreditation for wind and solar means these resources are increasingly unable to capture high capacity prices in capacity auctions. -Energy Bad Boys Substack ([link removed])


** New From Energy Townhall ([link removed])
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** AEA joins with 35 free market groups to urge repeal of Jones Act.
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AEA ([link removed]) (5/6/26) article: "On Wednesday, May 6, 2026 the American Energy Alliance joined with 35 other free market advocacy groups in sending a letter to members of Congress. The group, lead by Americans for Prosperity, is urging Congress to immediately pass a full repeal of the Jones Act. The full text of the letter is available below:

Dear Members of Congress,

We commend President Trump’s decision to issue an additional 90-day suspension of the century-old Jones Act, and we ask Congress to make the suspension permanent by repealing this outdated law.

The Jones Act requires cargo shipped domestically to be carried on vessels that are U.S.-built, owned, and flagged and crewed by Americans. While originally intended to strengthen American maritime capabilities, it has become a costly, counterproductive barrier to efficient commerce.

Its repeal is long overdue.

President Trump’s recent waiver to “allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports” underscores the need to repeal this law permanently. Without the Jones Act, markets will function better, supply will increase, and costs will decline. By contrast, every day the law remains in force it constrains supply, stifles competition, and drives up costs for American families. These impacts fall especially hard on residents of noncontiguous states and territories such as Alaska, Hawaii, and Puerto Rico.

Beyond its economic toll on average Americans, the Jones Act represents a departure from free-market principles. It distorts competition, protects entrenched interests, and has failed to deliver on its central promise of a robust domestic maritime fleet. A couple of examples.

Today, of the roughly 7,500 oil tankers operating globally, only 54 comply with Jones Act requirements. The situation is worse when it comes to Jones Act-compliant liquid natural gas tankers. We have none – the one currently operating to supply Puerto Rico does so only under an exemption because it was foreign-made. The U.S. can ship natural gas to some 30 countries globally but cannot ship it from one part of the U.S. to another.

The current U.S.-Iran engagement and resulting energy disruptions underscore the urgency of the temporary waiver. But long after the worldwide energy disruptions are gone, the Jones Act will still be making everything cost more – unless it is repealed.

With President Trump’s tremendous leadership, we are confident that Congress can take action to end the Jones Act and help lower the cost of living for all Americans.

Thank you for your leadership and consideration.
"


** Energy Markets
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WTI Crude Oil: ↓ $91.95
Natural Gas: ↑ $2.79
Gasoline: ↑ $4.55
Diesel: ↑ $5.67
Heating Oil: ↓ $369.55
Brent Crude Oil: ↓ $98.07
US Rig Count ([link removed]) : ↑ 597


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