The latest blow to wind

By Liz Hampton, U.S. Energy Editor 

Hello Power Up readers! Oil prices are higher to start the week on concerns of supply disruptions as U.S. President Donald Trump has threatened new sanctions on Russia, and as Ukrainian attacks on Russian energy infrastructure have continued. More on that below. Both oil futures contracts also rose last week, with Brent gaining nearly 3% and WTI up 1.4%. 

Early on Monday, global Brent futures traded around $68.62 a barrel, up nearly $1, while U.S West Texas Intermediate futures were at $64.64 a barrel, also up about $1 a barrel. U.S. Henry Hub natural gas futures traded at $2.705 per million British thermal unit, up just 0.26%.

One note: Today marks my last Power Up newsletter, as our fantastic columnist Ron Bousso will be taking it over full time. I've really enjoyed writing this each week over the past year and appreciate your readership. You can continue to follow energy reporting from my team on Reuters.com, and please don't hesitate to contact me at liz.hampton@thomsonreuters.com.

It's not a good time to be an offshore wind producer with projects in the United States, as the Trump administration has escalated its attacks on the industry.

Late on Friday, the Trump administration halted Orsted's $1.5 billion Revolution Wind project off the shores of Rhode Island, sending shares of the Danish company down some 17% on Monday. The project was 80% complete, with 45 of its 65 turbines installed. 

The stop-work order, issued by the U.S. Bureau of Ocean Energy Management, is the second major suspension of an offshore wind project this year. In April, Equinor halted work on its Empire Wind 1 project off New York's coast following a similar order from U.S. Interior Secretary Doug Burgum. 

Trump's contempt with the offshore wind industry - which he sees as costly and unreliable - only adds to its mounting challenges, which before Trump entered office had included rising costs, higher interest rates and supply chain disruptions. Orsted's market value has fallen some 87% since peaking in early 2021. 

The decision to halt Revolution Wind could be reversed, analysts said, pointing to Equinor's project which resumed operations after diplomatic efforts by Norway's government. 

Revolution Wind would produce enough electricity to power 350,000 homes in Rhode Island and Connecticut. 

A view of the turbines at Orsted's offshore wind farm near Nysted, Denmark. REUTERS/Tom Little

Despite efforts by the United States this month to broker a peace deal, Ukraine has stepped up its drone attacks, hitting 10 Russian refineries in recent days, disrupting some 17% of its capacity - roughly 1.1 million barrels per day. 

At the same time, Russia's seasonal gasoline demand from tourists and farmers is at its peak and has led to shortages in some places. 

Last Thursday, Russian supplies to Slovakia through the Druzhba pipeline were interrupted following Ukrainian attacks. Those may resume as soon as Monday, Slovakia's economy minister said. 

Trump on Friday renewed his threat to impose sanctions on Russia if there is no progress towards a peace deal in the next two weeks. The U.S. President said he was unhappy about a Russian strike on an American factory in Ukraine last week. 

Private company China Concord Resources Corp is developing two oilfields in Venezuela, investing more than than $1 billion in a project that should produce 60,000 barrels per day of crude oil by the end of next year, Chen Aizhu and Marianna Parraga exclusively reported on Friday. The investment is unusual given that the OPEC nation has struggled to attract foreign capital due to sanctions. 

The U.S. has issued more Iran-related sanctions that target 13 entities based in Hong Kong, Chia and the United Arab Emirates and the Marshall Islands, and eight vessels, according to the Treasury. The U.S. State Department separately said it imposed sanctions on two China-based operators of oil terminals and storage.

The U.S. Environmental Protection Agency has started clearing a backlog of requests from small oil refineries for exemptions from the nation's biofuel laws, marking a win for some refiners that said they were hurt by mandates to blend more biofuels into their products. The agency has granted 63 of the requests, denied 28 and given partial approval to 77. 

Canadian oil company Cenovus Energy on Friday said it would acquire rival MEG Energy in a C$7.9 billion ($5.68) cash-and-stock-deal. That deal tops Strathcona Resources' previously announced C$5 billion takeover offer, which MEG's board rejected in June. 

U.S. oil and gas companies cut rigs for the fourth time in five weeks last week, oilfield services firm Baker Hughes said on Friday. The rig count, an early indicator of future production, fell by one to 538 in the week to August 22 and is currently at its lowest level since mid-July. 

We hope you're enjoying the Power Up newsletter. We'd love to hear your thoughts and feedback. You can reach us at: powerup@thomsonreuters.com. 

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