Daily Energy Update: Strait of Hormuz Traffic Returns, FERC Issues New Grid Rules

Traffic through the Strait of Hormuz is returning to pre-war levels, with over 12.5 million barrels reported to have passed through the waterway recently, according to Vice President JD Vance. He stated that this is the highest volume since the beginning of the conflict and noted that Iranian forces have not engaged ships in the strait for two consecutive nights. U.S. Central Command has lifted the naval blockade, allowing traffic to Iranian ports. In related developments, the Federal Energy Regulatory Commission (FERC) has issued a decision regarding the connection of large-load facilities, such as data centers, to the national grid. Instead of implementing uniform rules, FERC has directed six regional organizations to review their existing interconnection rules. Additionally, FERC voted to ease environmental permitting reviews for pipelines and natural gas projects. House Energy and Commerce Committee Chairman Brett Guthrie has introduced a bill to ensure data centers cover the costs of new power generation. The National Science Foundation has reversed its decision to dismantle parts of the Ocean Observatories Initiative, responding to bipartisan pressure. The UN's Food and Agriculture Organization and World Food Programme are seeking $202 million to aid 8.8 million people affected by the upcoming El Niño weather patterns. Lastly, solar energy occupies less than 1% of U.S. farmland, according to the Solar Energy Industries Association.