1 big thing: Companies are off track on net-zero goals

Illustration of a briefcase with three smoke stacks with carbon fumes coming out. 

2. G7 agrees to pursue a price cap on Russian oil 

Picture of G7 leaders seated around a table.

3. How Russia skirts sanctions on energy

4. Methane emissions are increasing, watchdog finds

Photo illustration of a pipeline with abstract shapes.

🌞 Good morning. Today's newsletter, edited by Mickey Meece, has a Smart Brevity count of 1,140 words, 4.5 minutes.

🚨 Situational awareness: The White House announced $700 million in private sector investments to help build 250,000 EV chargers per year. 

🎶 Happy birthday to singer/songwriter Mark Stoermer, the bassist for The Killers, who have today's intro tune.

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National

darkTeal

Untangle the energy industry’s biggest news stories

Axios Generate

1 big thing: G7 leaders stare down energy tug of war

Illustration of a tug of war rope looped around a piece of coal with hands pulling on either end.

Bonus: Charting coal's rise and fall in the U.S.

2. More global heat records broken.... in June

Illustration of the planet earth wearing a pair of sunglasses

3. Hardening social infrastructure against heat

Woman writing in a cooling center in Portland, Oregon during a deadly heat wave in 2021.

4. Tesla dominates as EV sales rise  

🌅 Good morning, Andrew here as Ben is on vacation. Today's newsletter, edited by Mickey Meece, has a Smart Brevity count of 1,169 words, 4.5 minutes.

🚨 I'll be on U.S. Supreme Court watch for the ruling in West Virginia v. EPA, which may curtail the agency's ability to regulate greenhouse gas emissions. 

🎶 Let's take a look back at a past Glastonbury Festival Saturday headliner. Radiohead has today's moody intro tune from 1997...

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1 big thing: Threat of compounding climate extremes

Illustration of a weather thermometer on fire with a scorched top where the mercury has exploded. 

Bonus: Map shows drought yields hotter heat waves

Chart showing the impacts of severe drought on heat waves from a climate science study.

2. First look: New program to turn mines into clean energy hubs

Illustration of a line of wind turbines in a field at night, with one glowing brightly.

3. Funding spotlight: Twelve and Cleartrace get new backing

Illustration of a tree with money as the leaves.

4. Frontier facilitates its first carbon removal projects

Illustration of a credit card reader with the word CO2 on it

5. 🏃🏽Catch up fast: European climate plan moves forward

🌄 Good Wednesday morning. Today's newsletter, edited by Mickey Meece, has a Smart Brevity count of 1,228 words, 5 minutes.

👀 All eyes will be on the U.S. Supreme Court, where a decision in West Virginia v. EPA is possible (though not guaranteed) after 10am ET.

🎶 It's summer, with sunshine in D.C. today, and that has me thinking of the first line of "Rylan" from The National, who have today's intro tune.

📬 Did a friend send you this newsletter? Welcome, please sign up. Thanks for reading and see you back here tomorrow.

1 big thing: Biden's gas price predicament

Illustration of gas prices reflected in aviator sunglasses. 

Bonus: Massive margins for oil refiners

2. First Look: Salesforce joins AT&T in cutting IoT emissions

Illustration of an earth app icon with a notifications symbol that says "$"

3. Hydrogen is riding an investment wave

Illustration of a stack of cash repeated three times, over green shapes and a blue zigzag line.

4. The SEC's brewing 1st Amendment fight

Illustration of Karate hands vs. hands with a gavel

5. Charted: coal's staying power

6. Quote of the day

☕ Good morning! Today's newsletter, edited by Mickey Meece, has a Smart Brevity count of 1,238 words, 5 minutes. 

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🎸 Neil Young & Crazy Horse's live album "Year of the Horse" just turned 25 and provides today's churning intro tune...

🙏Thanks for reading and we'll see you back here tomorrow.

1 big thing: Real-time climate attribution arrives

Animated illustration of a live video symbol with a blinking sun

2. Oil drillers can't escape the supply chain crunch

3. The "emergency" gas meeting: what we learned

Illustration of a board room table with 8 chairs, one of them a different color, surrounded by abstract shapes.

4. Auto giants look to simplify EV charging

Illustration of an extra long battery with many charge indicator bars glowing green.

Bonus EV news: lithium investment

5. Fallout from the Freeport LNG shutdown

🍺 Oh yes! Get ready. Today's newsletter, edited by Mickey Meece, has a Smart Brevity count of 1,214 words, 5 minutes. 

🚨 More than 1 million acres have burned already in Alaska, an early summer record. It raises concerns about added greenhouse gas emissions. 

🎶 At this moment in 2000, the late Aaliyah was #1 on the Billboard Hot 100 with today's irresistible intro tune...

📬 Did a friend send you this newsletter? Welcome, please sign up. Have a great weekend and thanks for reading! 

Data: Federal Reserve Bank of Dallas, Energy Information Administration; Chart: Simran Parwani/Axios

The rise in U.S. fuel prices isn't yet spurring a major pullback in driving, but that could soon change, a new Dallas Fed analysis finds.

The big picture: Gas demand is historically not very sensitive to prices.

But "prices may be closer to consumers' pain threshold than inflation-adjusted prices might suggest," Dallas Fed economist Garrett Golding writes.

If they rise higher, "expect consumers to respond by cutting back on fuel consumption and overall spending sooner than later."

What we're watching: Remote work options could reduce demand, per the report, but it's "too early to fully assess the impact."

And many low-wage workers — the ones most hurt by high costs — lack that choice.

Gas prices aren't leading to less driving — yet

Gas demand is historically not very sensitive to prices.

Gas prices

Energy & Environment

President Biden will warn CEOs of the nation's largest oil companies on Wednesday that he's considering invoking emergency powers to boost U.S. refinery output, according to a letter obtained by Axios.

Why it matters: Biden's direct engagement with the oil giants is part of an ongoing White House effort to tame fuel prices despite limited options — and cast oil companies as responsible for consumers' higher bills.

The letter, which calls on the companies to boost output, signals how gasoline and diesel prices have become both an economic and political shock reaching the highest levels of the administration.

What he's saying: Biden tells seven big refiners and fuel companies that he's "prepared to use all reasonable and appropriate Federal Government tools and emergency authorities to increase refinery capacity and output in the near term."

"I understand that many factors contributed to the business decisions to reduce refinery capacity, which occurred before I took office," he writes. "But at a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable."

Adding an olive branch, the letter — sent to the heads of ExxonMobil, Chevron, BP America, Shell USA, Phillips 66, Marathon and Valero — calls for them to offer "concrete, near-term solutions."

Biden says he wants ideas to address inventory, price and refinery capacity issues in the coming months, as well as transportation measures to bring fuel to market.

"The crunch that families are facing deserves immediate action," Biden writes.

Between the lines: In seeking help from the oil industry, Biden is walking a political tightrope, eager to lower the cost at the pump without alienating his base, which backs policies to combat climate change.

Zoom out: Average U.S. gasoline prices have risen above $5 per gallon — fueling wider inflation, hitting consumers and creating political peril for Democrats ahead of the midterm elections.

"With prices for your product where they are today, you have ample market incentive to take these actions, and I recognize that some of you have already begun to do so," he writes in calling for increased supplies of gasoline, diesel and other refined products.

What's next: Biden said Energy Secretary Jennifer Granholm will convene an "emergency meeting on this topic."

The big picture: Very high oil prices thanks in part to Russia's unprovoked war on Ukraine, global fuel demand bouncing back from COVID-19 and constrained refinery capacity are pushing gas prices up.

Biden's letter focuses on the drop in U.S. refinery capacity in recent years. It has dropped by about 1 million barrels per day compared to pre-COVID levels, according to the industry and federal data.

The other side: Before seeing the letter, industry officials said they hope to work with the Biden administration and that discussions are already occurring.

"We're encouraged by the administration reaching out and asking refiners what they can do to help resolve the situation from a policy standpoint," Frank Macchiarola, a senior vice president at the American Petroleum Institute, told reporters on a call Tuesday.

Oil and gas producers have criticized the administration for not issuing new drilling leases on public lands, canceling the Keystone Pipeline and emphasizing its net zero carbon emissions climate agenda.

Biden warns Big Oil over gas output

The direct outreach to oil giants signals how gasoline and diesel prices have become both an economic and political shock.

Oil companies

President Biden will warn CEOs of the nation&#x27;s largest oil companies on Wednesday that he&#x27;s considering invoking emergency powers to boost U.S. refinery output, according to a letter obtained by Axios.Why it matters: Biden&#x27;s direct engagement with the oil giants is part of an ongoing White House effort to <a class="gtmContentClick" data-vars-link-text="tame fuel prices" data-vars-click-url="https://www.axios.com/2022/03/10/gas-prices-biden-russia-ukraine" data-vars-content-id="b0b6faa9-e2e4-4bb7-a5c6-f4919c4a73d1" data-vars-headline="Biden warns Big Oil over gas output" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/03/10/gas-prices-biden-russia-ukraine" target="_self">tame fuel prices</a> despite limited options — and cast oil companies as responsible for consumers&#x27; higher bills.

Gina McCarthy, President Biden's top domestic climate adviser, said tech companies should do more to prevent the spread of inaccurate information about climate change and clean energy.

Driving the news: "The tech companies have to stop allowing specific individuals over and over again to spread disinformation," she told Axios' Alexi McCammond at a virtual event that aired Thursday.

"We need the tech companies to really jump in," McCarthy said.

The big picture: McCarthy said that overall, the problem of disinformation has shifted from disputing the reality of climate change to inaccurate claims about the feasibility and benefits of moving away from fossil fuels.

"Now it has moved from denial, but the dark money is still there. The fossil fuel companies are still basically trying their best to make sure that people don't understand the challenge of climate," she said.

"Now, the challenge really is, how do we accelerate the solutions we have available to us, the technology improvements that we've seen that are most cost-effective, in fact cost-competitive with fossil fuels."

"And what the industry is now doing is seeding, basically, doubt about the costs associated with that and whether they work or not."

Catch up fast: Major platforms including Facebook, Google and YouTube have unveiled new efforts in recent years to attempt to deter circulation and steer users to accurate information.

Twitter said in April that it's toughening efforts to prevent "misleading advertisements" that "contradict the scientific consensus on climate change." 

Top Biden aide prods big tech to crack down on climate change misinformation

a McCarthy said the problem has moved from outright climate denial to inaccurate discussion of clean energy.

Photo of Gina McCarthy at an Axios live event

Climate change

Gina McCarthy, President Biden&#x27;s top domestic climate adviser, said tech companies should do more to prevent the spread of inaccurate information about climate change and clean energy.Driving the news: &quot;The tech companies have to stop allowing specific individuals over and over again to spread disinformation,&quot; she told Axios&#x27; Alexi McCammond at a <a class="gtmContentClick" data-vars-link-text="virtual event" data-vars-click-url="https://www.axios.com/2022/05/31/axios-event-gina-mccarthy-nih-misinformation-online" data-vars-content-id="bdcf1f8e-3d6e-40e3-bc0a-933a506a32f3" data-vars-headline="Top Biden aide prods big tech to crack down on climate change misinformation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/05/31/axios-event-gina-mccarthy-nih-misinformation-online" target="_self">virtual event</a> that aired Thursday.

Data: IEA; Note: Includes Shell, Exxon, BP and other major oil and gas companies, ADNOC, CNPC, CNOOC, Equinor, Gazprom, Kuwait Petroleum Corporation, Lukoil, Petrobras, Repsol, Rosneft, Saudi Aramco, Sinopec and Sonatrach; Chart: Simran Parwani/Axios

Oil companies have boosted clean energy investment, but it's unevenly spread in the industry and the sector should parlay big profits into more aggressive initiatives, the International Energy Agency said.

Why it matters: "High prices are generating an unprecedented windfall," IEA said in a new report.

"This is a once-in-a-generation opportunity for producer economies to fund diversification activities and for the major oil and gas companies to deliver more diversified spending."

Zoom in: Solar and wind have accounted for the largest investments, with Europe-based multinationals steering the most capital by far.

More broadly, a number of companies worldwide — both investor- and state-owned — are also boosting investments in hydrogen, carbon capture and other tech.

But plans are generally more ambitious than underlying investments so far, IEA said.

The big picture: That's part of a much wider IEA analysis that shows global energy investment — spanning power and grids, efficiency, fuels and more — is set to rise 8% this year.

Nonetheless, "today’s energy investment trends show a world falling short on climate goals, and on reliable and affordable energy."

Oil giants criticized for uneven clean energy investment

The sector should parlay big profits into more aggressive initiatives, IEA said in a new report.

clean energy

Oil companies have boosted clean energy investment, but it&#x27;s unevenly spread in the industry and the sector should parlay big profits into more aggressive initiatives, the International Energy Agency said.Why it matters: &quot;High prices are generating an unprecedented windfall,&quot; IEA said in a new report.

General Motors' VC arm is the lead investor on a $10 million Series A funding round for Wind Catching Systems, a Norwegian startup looking to commercialize next-wave floating offshore wind designs.

Why it matters: It's GM Ventures' first funding for a renewable power startup and a move that the auto giant calls complementary to its widening rollout of electric cars.

As GM moves deeper into EVs, it’s "critical that we simultaneously drive the transition of the grid to low-carbon energy sources,” GM chief sustainability officer Kristen Siemen said in a statement.

Driving the news: Oslo-based WCS says its multiturbine system — seen via an artist's rendering above — cuts acreage needed for offshore wind by 80% and operates more efficiently than today's floating tech.

Beyond the funding, GM and WCS have a "strategic agreement" to collaborate on tech development, project execution and more, they said.

The funding round also includes Norwegian firms Ferd AS, North Energy ASA and Havfonn AS. WCS hopes to launch its first commercial project by 2027.

The big picture: EVs help fight global warming by displacing oil. But the cleaner the grid they're charging from, the greater the climate advantage over traditional drivetrains.

GM invests in offshore wind startup

It's GM Ventures' first funding for a renewable power startup.

artist rendering of a floating offshore wind system

Renewable energy

General Motors&#x27; VC arm is the lead investor on a $10 million Series A funding round for Wind Catching Systems, a Norwegian startup looking to commercialize next-wave floating offshore wind designs.Why it matters: It&#x27;s GM Ventures&#x27; first funding for a renewable power startup and a move that the auto giant calls complementary to its widening rollout of electric cars.

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Stories

Oil giants criticized for uneven clean energy investment

Gas prices aren't leading to less driving — yet

GM invests in offshore wind startup

Biden warns Big Oil over gas output

Top Biden aide prods big tech to crack down on climate change misinformation

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💥 Cascading climate risks

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Tug of war

🔍 CSI: Weather

⛽ Gas price showdown