The Supreme Court will hear arguments this morning in a case that could bring fresh constraints on federal agencies' running room to craft energy and climate regulations, Ben writes.

Driving the news: The justices will dive into cases challenging "Chevron deference" — a longstanding precedent that gives departments broad leeway when underlying statutes are vague or silent on a topic.

Why it matters: The litigation is technically about a fisheries rule, but curtailing Chevron — which the conservative majority looks primed to do — would affect far more areas of regulation.

State of play: Conservatives and business groups say Chevron upsets the constitutional balance of powers, giving executive agencies authority that Congress never intended or approved.

The other side: Environmental groups say nixing or weakening the precedent would block agencies from confronting evolving threats and from using technical and scientific expertise within their ranks.

Catch up fast: The high court already imposed limits on regulators in 2022; a 6-3 ruling found that a far-reaching (albeit defunct) Obama-era power plant mandate violated the "major questions" doctrine.

• That's the idea that big, consequential regulations require clear authorization by Congress.

What we're watching: How that decision, and this week's case, affect rules like planned SEC climate disclosure mandates. And politically, the outcome could feed wider campaign narratives.

• For conservatives, paring back regulators' powers would show results from Trump-appointed judges.
• An array of left groups who will rally outside the court this morning call the case a "power grab" by the court's "MAGA majority" on behalf of "wealthy benefactors and special interests."

The bottom line: Today's arguments will be wonky and dry, but the stakes are huge.

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⚔️ Countervailing forces are battling to a draw in oil markets, Ben writes.

• The big picture: Since late 2023 and well into the new year, prices have traded within a rather narrow range, despite fluctuating risks of escalation of the Israel-Hamas war.
• State of play: Early Wednesday, Brent crude hovered around $76 per barrel.
• Catch up fast: Houthi attacks on Red Sea shipping, U.S.- and U.K.-led counterstrikes — plus an Iranian missile strike in Iraq — have stoked fears of a wider Middle East conflict, but they have failed to send crude on a sustained rally.
• Of note: A deep freeze temporarily cut output in North Dakota by up to 650,000 barrels per day, per the state's pipeline authority.
• Yes, but: Mideast tensions have not yet affected production. And traders are balancing those risks against wider economic and market forces that put downward pressure on prices, including a stronger U.S. dollar and production growth outside OPEC.
• What they're saying: "We haven't seen a significant increase in the price of oil on the back of the [U.S. and U.K.] attacks but the brief spikes we've seen have highlighted the sensitivity in the market to events around the Red Sea," OANDA analyst Craig Erlam said in a note.

✅ BP has made interim CEO Murray Auchincloss the official replacement for Bernard Looney, the company said Wednesday.

• Why it matters: The decision signals strategic continuity for BP. Auchincloss has been with the oil giant for a quarter century, most recently as CFO.
• Catch up fast: Looney resigned last September amid revelations of personal relationships within the company.

The Securities and Exchange Commission's long-awaited blessing last week of spot bitcoin exchange traded funds could be a sneakily big energy story, Ben writes.

What they're saying: Wood Mackenzie analyst Ben Hertz-Shargel sees "significant risks to both customer electricity costs in the U.S. and the energy transition."

The big picture: He writes spot ETFs create a "massive" new source of demand because they are a direct play on the asset, as opposed to derivatives.

• This is "sending a strong, long-term price signal to bitcoin miners — companies who operate massive data centers that process transactions and mint new bitcoin — to invest in newer and bigger facilities."

Threat level: Hertz-Shargel looks at the already-strained Texas power system in particular.

• As of early 2023, the pipeline of crypto-miners seeking grid connections for data centers was theoretically equivalent to 27% of the state's peak power demand, he writes.
• Before the SEC action, many projects on the drawing boards would not materialize, but the regulatory approval could move more forward.

Yes, but: Via Axios Crypto's Brady Dale...

• Bitcoin entrepreneurs focusing on energy contend bitcoin facilitates demand for intermittent renewables such as wind and solar — so a consistent source of demand like bitcoin mining can help guarantee a market for new supply.
• Only time will tell which view is right.

Uber is working with Tesla to encourage its drivers to switch to electric vehicles as part of its broader goal to be emissions-free in the U.S. and Canada by 2030, the ride-hailing company first told Axios' Joann Muller.

Why it matters: Uber can't force its drivers to go electric, but various incentives have helped it boost EV uptake in recent years.

• Still, Uber needs to do more to accelerate the shift and meet its climate commitment.

Driving the news: Uber has begun sharing data with Tesla about where its drivers do most of their trips, starting in New York City. That will help demonstrate where charging infrastructure is most needed.

• It's also offering drivers incentives of up to $2,000 to buy Tesla Model 3s or Model Ys and is hosting test drives at select Tesla stores.

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With the U.S. in the grips of a record-breaking Arctic air mass, the prospect of a warmup may seem distant, Andrew writes.

Yes, but: But a significant weather pattern shift looks to bring air temperatures back into the above-average range for much of the country next week, after one more Arctic blast affects the Central U.S. and Southeast.

The big picture: The past two weeks have featured some of the coldest air in years across the Lower 48 states, with heavy snow and ice falling across more than half of the contiguous U.S.

• Hundreds of thousands of people have lost power in multiple states amid high winds, ice accumulation and frigid temperatures.

Zoom in: First up will be another Arctic blast that won't be quite as severe but will affect some of the same areas. It is expected to enter the Plains late this week and push south to the Gulf Coast this weekend.

What's next: After that, North American weather patterns look to be dominated by a much milder Pacific air flow, with above-average temperatures across most of the country.

• In fact, the end of January looks like it could end up with what forecasters refer to as a "torch" pattern, with temperatures well above average for this time of year.

That's the additional capital Saudi Aramco is allocating for its venture capital arm, more than doubling the prior amount, Ben writes.

Why it matters: It bolsters the state petro-giant's diversification efforts, even as Saudi and OPEC officials are consistently bullish on long-term crude demand.