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AEA Calls Out Election-Year Betrayal to Reinstate Wind and Solar Subsidies

April 29, 2026 by Leave a Comment

WASHINGTON DC (4/29/26) – Last Thursday, a small group of Republican Congressmen, led by Rep. Brian Fitzpatrick (R-Pa.), introduced legislation to remove the deadlines placed under the One Big Beautiful Bill (OBBB) Act on renewable tax credits, including the Wind Production Tax Credit and the Solar Investment Tax Credit.

American Energy Alliance President Tom Pyle issued the following statement: 

“The continued reliance on ‘clean’ energy tax credits is a political crutch that forces taxpayers to subsidize technologies that clearly cannot stand on their own. Those who have introduced this legislation – many of whom voted to pass the OBBB – should be working to phase out these subsidies more quickly, not doubling down on them.

“With all of these Members facing a battle for reelection, it’s surprising that subsidizing large corporations is their number one priority. Introducing legislation now to eliminate the tax credit deadlines is the obvious bait-and-switch we warned about a year ago, as these members push to revive preferential treatment for their favored industries. As I have said before, extending green giveaways on the backs of taxpayers is shortsighted and neglectful. The American people deserve better than the fast one these Members are trying to pull.” 

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Supreme Court Unanimously Rules in Favor of Chevron, Moving Climate Lawfare to Federal Court

April 23, 2026 by Leave a Comment

WASHINGTON DC (04/23/2026) – On April 17, 2026, the Supreme Court unanimously ruled in favor of Chevron in Chevron USA Inc. v. Plaquemines Parish, allowing the company to move a multimillion-dollar lawsuit tied to its WWII-era federal aviation fuel contract from state to federal court.

American Energy Alliance President Tom Pyle issued the following statement:

“The Supreme Court’s unanimous decision in this case is an important one. Though it is a narrow ruling and does not resolve the broader issue of climate litigation, it reinforces a critical argument that may apply in similar cases involving federal oversight – when work conducted under a federal contract is litigated, it belongs before federal courts.

“More broadly, it shows that courts are taking a closer look at the growing number of egregious legal claims against the energy industry, and it is a meaningful step toward limiting the expansion of costly, frivolous, and often unfounded lawfare.”

Background Information:

This case is one of many lawsuits filed by Louisiana parishes against oil companies seeking compensation for alleged damage to the coast and coastal wetlands. Oil companies have raised a variety of defenses in these suits. In this instance, Chevron argued that the drilling operations at issue were related to its World War II–era contracts with the federal government to refine aviation fuel. The company invoked the federal officer removal statute (28 U.S.C. § 1442) to transfer the case from state court to federal court, contending that the activities for which it was being sued were effectively performed at the direction of the federal government.

The court ruled unanimously in Chevron’s favor, holding that the production of crude oil was sufficiently connected to its federal refining contracts to permit removal to federal court. The ruling is grounded specifically in the federal officer removal statute and is not necessarily dispositive for every effort by oil companies to move similar cases to federal court.

However, the federal officer removal statute has been invoked in some of those other cases, particularly where producers acted under federal permits or requirements from the Department of the Interior for development on federal lands. Therefore, this decision could strengthen that defense where it applies. The Supreme Court has granted review this term in Suncor v. Boulder County, which is expected to address the broader issue of federal preemption in climate-related lawsuits against energy companies. Even so, the Chevron decision is a favorable development showing that state tort claims will not simply proceed without meaningful limits. It may also be an encouraging indicator of the Supreme Court’s likely approach in the Suncor case.

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Key Vote YES on H.R. 1897

April 22, 2026 by Leave a Comment

The American Energy Alliance supports H.R. 1897 the ESA Amendments Act of 2025.

It has been decades since the Endangered Species Act (ESA) was meaningfully amended and in that time there have been substantial societal, technological and environmental changes that ESA implementation has not kept pace with. The ESA has become a regulatory weapon rather than focusing on its original mission of actually helping threatened species recover. H.R. 1897 will improve regulatory certainly, create needed flexibility, and allow the federal government to work better with states and landowners. This will result in better outcomes for both species and for landowners.

A YES vote on H.R. 1897 is a vote in support of free markets and affordable energy. AEA will include this vote in its American Energy Scorecard.

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U.S. Petroleum Is Powering The World

April 20, 2026 by Leave a Comment

The Iranian conflict has shifted the global oil market from oversupply to a shortage of 750,000 barrels per day this year. From an expected oil oversupply of 1.63 million barrels per day to an expected average production loss of 2.38 million barrels per day in 2026, which has triggered a surge in spot prices, with oil trading at steep premiums. Spot premiums for U.S. West Texas Intermediate (WTI) oil are at an all-time high due to competition between Asian and European refiners. According to the Associated Press, despite price increases, the U.S. and global economies are better insulated from oil shocks now than in the 1970s due to energy-efficiency gains, reduced reliance on Middle Eastern oil, strategic stockpiling, and alternative energy sources, including natural gas, nuclear power, and renewables. For example, oil’s share of global energy fell from 51% in 1973 to 34% by 2024, according to the 2025 Statistical Review of World Energy.

According to Reuters, an estimated 136 million barrels of crude oil and products are trapped in the Gulf due to the conflict. Even if shipping is allowed to flow freely through the strait, restoring oil production to pre-conflict levels will likely take months, depending on the extent of damage to oilfields during Iran’s attacks and the resulting shutdowns. A slow return is expected, with around two million to three million barrels per day potentially returning in the first month as export flows resume, followed by another two million to 3.5 million barrels per day over the rest of the second quarter of 2026. There may also be a chance that around one million to two million barrels per day of capacity ​may be permanently lost or limited even after the war, which would set the stage for a tighter market and increased ​price volatility.

In the United States, the shale oil renaissance, driven by hydraulic fracturing and directional drilling, has made the United States the world’s largest oil producer and a net petroleum exporter, with countries turning to it for secure supplies amid OPEC’s lower oil production and the effective closure of the Strait of Hormuz. Reuters reports that U.S. refinery utilization rose to ​nearly 92% last month, with Gulf Coast utilization averaging above 95%, up from around 90% a year earlier and a five‑year seasonal average ⁠of about 82%. That has resulted in U.S. refined products exports hitting a record in March. In comparison, Asian refinery utilization slipped to the low- to mid-80% range.

Via Reuters, offers for WTI Midland oil delivered to North Asia in July on very large oil carriers had premiums of $30 to $40 a barrel, depending on the benchmark used, up from premiums of close to $20 a barrel for deals concluded in late March and early April. Bids for WTI Midland delivered to Europe rose to a record premium of nearly $15 per barrel against Brent oil on April 9. Wider discounts ‌on U.S. crude oil compared with global benchmark ​Brent have increased ​demand for tankers on the U.S. Gulf Coast, reducing vessel availability and driving up freight rates.

To soften the shock and potentially keep oil prices somewhat contained, the International Energy Agency’s 32 member countries agreed to release 400 million barrels of oil from their strategic reserves. The United States agreed to release 172 million barrels from its Strategic Petroleum Reserve, established in 1975. President Biden had depleted a large portion of the reserve, drawing it down to 58% of its capacity, to lower gasoline prices ahead of the 2022 midterm elections. At that time, Russia invaded Ukraine, and oil and gasoline prices shot up. President Trump and Energy Secretary Wright have been trying to refill it before the conflict in Iran occurred. The rapid drawdown during the Biden administration also damaged the SPR facilities, necessitating ongoing repairs that have slowed the refill.

Some countries are providing fuel price relief. Reuters reports that Germany has agreed to provide fuel price relief to consumers and businesses worth $1.9 billion. The energy tax on diesel and petrol will be cut by about 0.17 euros per liter for two months. Germany also agreed to let companies pay a 1,000-euro ($1175) relief bonus per employee, exempt from payroll taxes and social security contributions. Irish Prime Minister Micheál Martin announced his government will offer new fuel tax cuts amounting to $592 million. The relief measure, which needs parliamentary approval, would come on top of a 250-million-euro ($294 million) tax break approved nearly three weeks ago.

Analysis

The blockage of the Strait of Hormuz is driving up prices for oil and refined products, and the U.S. industry is benefiting. Higher prices mean increased production and refinery utilization to help mitigate the supply shock. More U.S. oil production also helps improve the environmental quality of global production. As we explain in the 2026 Environmental Quality Index, the environmental quality score of the average barrel of oil produced by the U.S. is significantly higher than that of other top-producing countries.

*This article was adapted from content originally published by the Institute for Energy Research.

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The Unregulated Podcast #270: 72 Hours

April 20, 2026 by Leave a Comment

On this episode of The Unregulated Podcast Tom Pyle and Mike McKenna discuss Virginia’s descent into partisan madness, the latest energy updates from the Iran Conflict, new threats to the nation’s electric grid, and more.

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AEA Applauds Energy Champions Senator Cruz and Representative Hageman for Introducing Climate Liability Legislation

April 17, 2026 by Leave a Comment

WASHINGTON DC (4/17/26) – Yesterday, Sen. Ted Cruz (R-TX) introduced S.4340. This bill would bar frivolous lawsuits from green activist groups seeking damages, injunctions, or other relief for harms allegedly caused by the end use of energy products. Senators Ted Budd (R-NC), Tom Cotton (R-AR), and Mike Lee (R-UT) are cosponsoring the legislation. The House’s companion bill, H.R. 8330, was also introduced yesterday by Representative Harriet Hageman (R-WY).

American Energy Alliance President Tom Pyle released the following statement:

“Green left activists have always gone to extraordinary lengths to impose their anti-energy agenda on Americans. Filing sweeping lawsuits against oil and gas companies in an attempt to force policy outcomes they have failed to achieve in the legislative and administrative arenas is some of their most egregious work yet. This kind of politically motivated litigation threatens not only energy stability, security, and affordability but also the integrity of our legal system.

“We applaud Senator Cruz and Representative Hageman for taking the lead on this issue and introducing legislation to end climate lawfare. We look forward to working with them to end this reckless assault on affordable and reliable energy once and for all.”

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American Energy Alliance Leads Coalition Letter in Support of American Energy Security and Competitiveness

April 16, 2026 by Leave a Comment

WASHINGTON DC (04/16/2026) – Today, a coalition of 24 organizations, led by the American Energy Alliance, sent a letter to President Donald Trump and members of the United States Congress, urging a disciplined, evidence-based approach to rail regulation to ensure American energy security and economic competitiveness.

American Energy Alliance President Tom Pyle released the following statement:

“Reliable, affordable American energy relies not only on what we produce, but on how effectively and efficiently we move it. Rail transportation is critical for the movement of coal and crude, and linking production operations to manufacturers and export terminals. Policies that increase the cost and complexity of moving our resources, like the proposed Rail Safety Act, will inevitably affect our supply chains. The end result is higher energy prices for families and businesses across the country.

“This administration and this Congress have worked relentlessly to strengthen domestic supply chains and bolster energy security. Imposing sweeping new operational mandates on the way we transport that energy risks undermining those very goals. Burdensome new regulations will only hinder the long-term investments needed to maintain safe, efficient, and resilient energy transportation systems.”

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New LNG Projects Promise To Make Alaska Great Again

April 15, 2026 by Leave a Comment

The conflict with Iran could lead to the construction of an Alaskan natural gas pipeline and export project. One project in the works since 2014 would entail an 810-mile pipeline to bring natural gas south from wells on the state’s North Slope for liquefaction and shipment to Asian customers. The project is estimated at $44 billion. The effective closure of the Strait of Hormuz and Iranian attacks on Qatari liquefied natural gas (LNG) plants are driving soaring LNG prices in Asia and Europe, prompting customers to seek more stable and secure supplies. That has accelerated interest in turning preliminary purchase plans into firm contracts and pricing deals, particularly from Asian customers, who get most of their oil and natural gas from the Middle East. In addition to benefiting the international market, the pipeline will provide a stable supply for Alaskan home heating, power generation, and industrial needs, while eliminating the need to import gas into Alaska. The “final investment decision” is expected to come within weeks.

Another potential way to move stranded North Slope gas (about 35 trillion cubic feet) to market was announced by Polar LNG. According to the Oil & Gas Journal, this LNG facility would use existing Prudhoe Bay infrastructure, transporting gas via a short pipeline to a modular, nearshore gravity-based facility that would process and liquefy it. The gas would then be loaded onto specialized ice-class carriers for year-round export. The company is planning to begin production at the seven-million-metric-ton-per-year plant between 2029 and 2030, at a cost of $8–9 billion.

According to Semafor, Polar LNG is exploring the potential repurposing of sanctioned equipment built for Russia’s Arctic LNG 2 project and is seeking permission from the US government to acquire parts affected by the Biden administration’s sanctions. Obtaining pre-built equipment is critical to meeting the project’s timeline. The project, when completed, would have one of the shortest LNG shipping routes from North America to key Asian markets, approximately 3,600 miles to Japan, for example, compared to over 10,000 miles from the U.S. Gulf Coast.

While cheaper, Polar LNG faces severe challenges of transiting ice-laden waters. As The Alaska Story reports, a Russian gas project has not been able to deliver shipments recently due to icebreaker breakdowns, and Russia has a much larger icebreaker fleet than the United States. Russia’s Arctic LNG 2 project is operating at only about 25% capacity because the ice is too thick for most tankers, so it relies on a single ice-class tanker to move fuel.

The Polar LNG project is complementary to the pipeline LNG project, which is partnered by the Alaska Gasline Development Corporation and the privately owned Glenfarne. Alaska has 25% ownership in the project. According to Governor Mike Dunleavy and Former Senator Mark Begich, the pipeline project has received its Federal Energy Regulatory Commission certificate and Department of Energy license. The necessary engineering has been completed, permits have been obtained, and lawsuits are over. The right-of-way is secured, and the gas is available to put into the pipe. Buyers in Japan, South Korea, and other Pacific partners have expressed interest in purchasing its gas rather than relying on Middle Eastern gas. Furthermore, the pipeline project will supply the needed gas to Southcentral Alaska to heat Alaskan homes and fuel military bases, while also creating more jobs.

The final holdup is with the mayors of the boroughs through which the pipeline will transit. Governor Dunleavy has a bill that would replace a statewide $20 million property tax on oil and gas infrastructure, split between state and local governments, with a volumetric tax based on the volume of gas flowing through pipelines. According to the borough mayors, the volumetric tax would bring in far less revenue than the property tax — about 90% less, which would not be enough to cover local costs, such as additional students in schools, more vehicles on the road, and more fire and EMS calls, resulting in some of the project’s cost having to be paid by local taxpayers.

Analysis

The energy crisis resulting from the effective closure of the Strait of Hormuz due to the war with Iran is causing new interest in energy from Alaska’s North Slope. Alaska has the potential to be an energy powerhouse. As IER President Tom Pyle wrote for RealClearEnergy, “We cannot afford to keep Alaska locked up any longer. If we are serious about American energy independence and prosperity, the time is now to let Alaska do what it does best – develop and produce its God-given natural resources.”

*This article was adapted from content originally published by the Institute for Energy Research.

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Cuba Provides Example Of Green New Deal In Practice

April 15, 2026 by Leave a Comment

The U.S. oil blockade on Cuba is contributing to blackouts across the island, with nighttime lighting reduced by as much as 50%. Last year, China provided Cuba with a gigawatt of photovoltaic solar panels. On top of that, Cuba will soon begin installing 5,000 2-kilowatt solar panels donated by China, which has also provided technical advice. According to Belly of the Beast, the panels will be installed in a wide range of locations, and many will not connect to the national grid. Just over half of the panels will go to maternity homes, nursing homes, senior centers, emergency rooms, funeral homes, banks, municipal radio stations, radio transmitters, internet communications facilities, and the commercial offices of the Electric Union, the state-run electric company. The rest will be installed in “isolated” homes, some of which have never had electricity. The solar panels will provide relief to institutions that cannot afford electricity interruptions, but will not solve the overall electric grid problem because solar power is intermittent, and the capacity donated is insufficient to replace Cuba’s oil-dependent electric grid. Cuba’s goal is to reach 24% renewable energy by 2030.

Source: Semafor

According to the New York Times, solar power will help address power outages, as the blockade has led to severe shortages of oil, gas, and diesel fuel. It takes over a month for a private car in Cuba to fill up with gas because it has to join a virtual queue, but an official government car, such as a taxi, can fill up once a week. As a result, gas has been selling on the black market.

The blockade has also incapacitated Cuba’s universal health care system, with hospitals canceling surgeries because doctors and nurses cannot commute to work. Clinics are struggling to administer treatments like chemotherapy and dialysis, and refrigerated vaccine stocks could spoil because of power outages. Many ambulances are parked due to insufficient gas. Pharmacies are largely empty, as medicine production has mostly stopped due to the factories running on diesel. Vaccine makers are searching for ingredients because flights that once brought them are canceled due to a lack of jet fuel.

China Is Expected to Do Well with Renewable and EV Exports

According to the Washington Post, China will benefit from the Iran conflict, given its world-beating green-tech sector, which has suffered from overcapacity in recent years. The conflict with Iran has renewed interest in renewable energy and electric vehicles (EVs) due to the rising cost of oil and liquefied natural gas (LNG) resulting from the 10% deficit in global oil supplies and Qatar’s production cut to LNG.

Factories in Asia are curbing production to save energy, and some gas stations are telling drivers they cannot fill up, hoping volumetric limits help mitigate the short-term impacts of the war. Countries across Asia are switching to coal-powered electricity generation. In Japan, coal could offset up to 70% of gas-fired power generation, and the country is also looking toward reviving nuclear power. Taiwan may restart two coal-power units. Via Semafor, to be less dependent on oil and gas in the future, the Philippines plans to install 100 gigawatts of solar power in the next two years, and Germany is planning to spend billions toward expanding wind power and promoting EV sales.

Thus, the Iran war may help China further expand its renewable and EV export sales, despite doing well even before the conflict began. As reported by The Wire China, African nations imported 18.8 gigawatts of solar panels from China in 2025 — 48% more than in 2024. The continent is a huge market for China’s solar panels since almost 600 million people still lack electricity there. China’s exports of batteries and electric vehicles rose 27% year-on-year in 2025, and sales of wind turbines rose nearly 50%. China’s battery manufacturer CATL’s Hong Kong-listed shares have gained nearly 30% since the war began, while its EV manufacturer BYD’s sales last month were 65% higher than a year ago.

China is the world’s leading exporter of automobiles, having mastered the EV market by producing inexpensive electric vehicles with new models quicker than its competitors. Low energy prices, cheap labor, dominance in the rare earth, mineral, and battery markets, and government subsidies have helped China expand its EV market at home and abroad. China has reached this dominance by burning over half of the world’s coal annually. Electric vehicles and hybrids made up almost half of all new car sales in China, helping the country reduce gasoline consumption and oil imports at a particularly good time, given the Iranian conflict.

Analysis

Lacking oil, Cuba has turned to China for help to supply power to the island through solar panels. The solar panels will provide some relief to institutions that cannot afford electricity interruptions, but will not solve the overall electric grid problem resulting from the blockade. According to an article by Ricardo Torres of Columbia Law School’s Cuba Capacity Building Project, “The recovery of the Cuban electrical system requires more than simply adding megawatts of installed capacity. It requires access to financing, operational discipline, and an incentive framework that values productivity and maintenance. Without these foundations, the grid will remain trapped in a cycle of temporary solutions—more rationing, greater wear and tear, and mounting losses—that erode economic activity and increase social discontent.”

*This article was adapted from content originally published by the Institute for Energy Research.

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Blue States Blaming Data Centers For Their Own Disastrous Energy Policies

April 13, 2026 by Leave a Comment

Maine may become the first state to ban new data centers, with its House passing legislation that would pause large data center construction until November 2027, applying to projects of at least 20 megawatts. The state wants the time to assess the impact of data center development on the environment and the electricity grid. Maine’s Governor, Janet Mills, supports a freeze. Other blue states, such as California and New York, are looking to block data center construction.

The hysteria over rising electricity prices and data center electricity demand has moved across the nation. According to the Wall Street Journal, at least 10 states other than Maine are advancing policies attempting to mitigate the cost and increase in generating capacity needed to accommodate new data centers. Legislators have introduced measures to temporarily ban or restrict data centers in New York, South Carolina, Oklahoma, and other states. In Ohio, some activists are collecting signatures to put a statewide ban on large data centers on the November ballot. Other municipalities and counties, especially small ones in Michigan and Indiana, imposed temporary pauses on data center development, and Denver and Detroit are among the major cities considering bans.

While Virginia is the current leader in data center activity, Texas is expected to surpass it as the top U.S. data center hub, with a projected total of 962 sites across operational, under-construction, and announced projects.

As the Journal reports, in Maine, some data center developments have targeted defunct industrial sites, such as closed mills. One company recently proposed building a $415 million underwater data center off Maine’s coast, powered by tidal energy. According to Data Center Dynamics, DeepGreen Western Passage SPV LLC wants to build a 51-megawatt power project offshore near the town of Eastport, which borders the Atlantic Ocean. The company submitted an application to the Federal Energy Regulatory Commission, requesting a 48-month permit to conduct environmental studies and engineering work in the area. The company would build “universal docking cradles” on the ocean floor, into which it would plug energy-generating turbines and pods containing artificial-intelligence computer infrastructure. The initial deployment would house 170 turbines and 34 data center pods, providing power for the data servers and Maine residents. The project is estimated to cost $415 million, funded by DeepGreen and other backers.

Via the Journal, the Maine House is considering adding exemptions to the bill that would allow two planned data center projects to move forward in Jay and Sanford, in southern Maine. Governor Mills supports an exception for the project planned in Jay, as it is “expected to bring much-needed jobs, economic activity and tax revenue to the region.”

Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez recently proposed legislation to temporarily pause data-center construction in the United States. Both Congress members support climate policies that are the real cause of the high electricity prices troubling blue states. Sanders and Ocasio-Cortez are from states, Vermont and New York, respectively, whose residential electricity prices are among the top 10 highest nationally — higher than those in states with more data centers. Both states are heavily into climate policies that have retired nuclear and coal plants, limited natural gas use, and created superfunds to punish oil and gas producers, while being members of the Regional Greenhouse Gas Initiative and having renewable portfolio standards or clean energy standards. IER’s Blue States, High Rates shows the linkage between a state’s approach to climate and “green energy” and high electricity prices.

Analysis

In blue states, it is easier to blame data centers than to admit that instituting policies that promote intermittent renewable energy, which requires expensive backup power and additional transmission to reach demand centers, raises rates. Data centers are an easy target for blame as prices continue to rise largely due to the addition of transmission projects implemented to bring renewable generation to demand centers. Because natural gas generation is easier to site, it doesn’t need the high level of transmission infrastructure that renewables do. If proponents of slowing or stopping new electrical demand in the United States succeed in linking increased demand to higher prices, it could have severe implications for all kinds of economic expansion in the United States.

However, as we highlight in Have Data Centers Driven Up Electricity Prices?, data centers and increased demand are not causing the high electricity prices. In fact, history shows just the opposite; more electricity sales actually correlate with lower prices, as the grid’s fixed costs are spread over more consumers.

*This article was adapted from content originally published by the Institute for Energy Research.

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