Tag: infrastructure

Ukraine Reportedly Bombs Russian Oil Terminal Which is Part of Deal to Lower Price of Diesel to the US

The war machine extending the Ukrainian-Russian War is not our friend. They are doing everything to hurt President Trump and the US economy!

Ukraine Reportedly Bombs Russian Oil Terminal, Which is Part of Deal to Lower the Price of Diesel to the United States.

On Friday, President Trump announced that the price of diesel was coming down fast after he reached a deal with Ukraine on Truth Social.

I have just concluded a highly successful discussion with President Vladimir Putin, of Russia, wherein it was agreed that Russia will immediately supply over 300,000 Tons of Diesel Fuel to the American and Global Marketplace, another 500,000 Tons during the month of November, and 1,000,000 Tons immediately thereafter. Additionally, based on the condition of their Diesel Refineries, Russia will then deliver, within a short period of time, 3,000,000 Tons of Diesel Fuel. Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST! Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority. This is a very big and important announcement. Additionally, it must be understood, that Iran will not have a Nuclear Weapon! Thank you for your attention to this matter. President DONALD J. TRUMP

Overnight, a massive Russian terminal is bombed by Ukraine.  The following was reported:

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Putin’s Winter Strategy: Destroy Ukraine’s Infrastructure, Intimidate Berlin

Russia’s drone and missile campaign against Ukraine has entered a new phase, aimed at the infrastructure that keeps Ukraine’s cities functioning and at the countries that keep its military supplied. In Kyiv, Russian drone strikes have closed or restricted three of six road bridges linking the capital’s two banks.

In Germany, Ukraine’s largest European provider of military aid, the government has blamed Moscow for an explosive-laden drone found at Leipzig airport and says it expects more hybrid attacks. With ceasefire talks unlikely to produce results before spring 2027, Putin appears to be using the winter to raise the cost of the war for Ukrainians and for Berlin.

The bridge strikes on October 1 and 2 targeted a pressure point in how Kyiv is laid out. The South Bridge, which carries both road traffic and metro trains, was hit three times in 24 hours, and the city has no vehicle tunnel under the Dnipro.

Before the 2022 invasion, more than a third of the city’s roughly 3 million residents lived on the eastern, or left, bank. Most government institutions and companies sit on the western bank. After the October 2 strikes, the Paton Bridge was closed in both directions, restrictions were placed on the Metro Bridge, and public transport was rerouted.

The Kyiv Defense Council called an emergency meeting on cross-river traffic. Traffic was restored by midday, but the attacks showed that Russia can disrupt movement between the city’s two banks within hours. Russia’s Defense Ministry said it struck an automobile-railway bridge because it was being used to move troops and military supplies.

Ukrainian officials link the bridge strikes to a decision made in Moscow. President Volodymyr Zelenskyy told the Financial Times that Putin ordered his military leadership in September to abandon previous restraints on drone and missile strikes, citing intercepted Kremlin communications. “He said there are no rules now,” Zelenskyy said. Since then, Russian strikes have hit schools, hospitals, and data centers in Kyiv.

Kremlin spokesman Dmitry Peskov told the newspaper that Russian forces do not strike civilian infrastructure. The escalation followed a pause in strikes against Kyiv that Putin ordered during a visit by U.S. negotiators in September.

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Southern California Power Providers Urge Residents to Conserve Energy, Avoid Using Major Appliances Amid Sweltering Heat Wave to Avoid Rolling Blackouts

California bans the sale of gas-powered vehicles, then urges residents not to plug in their electric vehicles to conserve energy amid sweltering heat waves – or else there will be rolling blackouts.

Southern California is currently baking amid a multi-day October heat wave.

Temperatures soared into the triple digits in Los Angeles, Orange County, San Diego, and Riverside over the weekend and will continue all week.

Even the coastal cities are sizzling.

On Monday, the power providers urged residents to conserve energy. Southern Californians were asked to avoid using major appliances and urged to set thermostats at 78 degrees or higher.

The Orange County Register reported:

Southern California Edison said it is “closely monitoring the electric system and preparing for the potential impacts of increased electrical demand.”

“We use every available resource to provide reliable service,” according to SCE. “Even so, extreme heat can increase energy use and put extra strain on the electric system, which may increase the likelihood of temporary outages.

“We encourage customers to prepare now for possible outages and periods of increased energy use. Consider charging mobile devices, reviewing emergency plans and making sure any critical equipment has backup power if available. You can also help reduce strain on the grid by conserving energy from 4 p.m. to 9 p.m., including limiting use of major appliances during those hours.”

Power providers urged residents to take steps to conserve electricity during the heat wave. The Los Angeles Department of Water and Power recommends setting thermostats to 78 degrees or higher during the hottest parts of the day and avoiding the use of major appliances such as washing machines, dishwashers and vacuum cleaners.

The LADWP also recommends avoiding the use of stoves and ovens, closing curtains and blinds to reduce sunlight, turning off lights and electrical equipment when not in use and unplugging chargers and appliances that continue to draw power.

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“Deeply Flawed”: Biggest US Grid Scraps Emergency Data Center Power Auction One Day After FERC Smackdown

We have been documenting the slow-motion collision between the AI capex fantasy and the laws of physics since late 2025, when we noted that some of Oracle’s OpenAI data centers were being pushed back to 2028 (Dec 12, 2025). Since then the delays have gone from anecdote to trend: in April we reported that half of US data centers scheduled to start in 2026 will be canceled or delayed (Apr 13), in August that more than two-thirds of the power sought for US data centers will never materialize (Aug 14), and just last week the two flagship Stargate campuses hit the wall within 24 hours of each other, with SB Energy delaying the IPO meant to fund the world’s largest data center (Sept 23) and Oracle’s Project Jupiter declaring force majeure (Sept 24).

Now we can add the US electrical grid itself to the list of things that won’t arrive on time.

On Wednesday, PJM Interconnection, operator of the largest US grid stretching from Illinois to DC serving 67 million customers across 13 states, and home to Virginia’s Data Center Alley, suspended the one-time “backstop” auction it was about to launch to plug a 6.8 gigawatt hole in its supply stack, less than a day after FERC ordered it back to the drawing board. The procurement, which was supposed to open for offers on Sept 30 and run through Oct 21 with selections by early December, now has, in the words of a PJM spokesman, a launch date that is “yet to be determined.”

For those keeping score, that is a power auction for data centers… delayed. You can’t make this up.

Recall that in July, PJM’s base capacity auction for 2028/29 came up 6.8GW short of its reliability requirement, the first time in PJM’s history that the entire RTO fell short, and only the price cap kept the clearing price at roughly $325/MW-day. As we tweeted that night, without the ceiling, PJM capacity prices would have been 70% higher at $554.72. A few hours later we added that “PJM is already below the critical reliability threshold.”

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The US Doesn’t Have An Oil Problem – It Has A Refinery Problem

One of the enduring weaknesses of the modern US economy is the lack of redundancy.  As long as most of the world is operating normally and there are no serious geopolitical disruptions, America’s “just in time” system works fine.  But, throw a monkey-wrench into distribution, global exports, freight systems, shipping or elements of production and cracks quickly form in the armor.  

This does not mean that the US economy can’t adapt; the pandemic shutdowns were horrifically pointless but they did prove that the system has the ability to function despite deep deficiencies.  However, when it comes to the management of vital resources, such as energy resources, it’s clear that some changes need to be made in the near term.  

Before the war in Iran a large portion of the public was oblivious to the fact that the US is the largest exporter of oil in the world, and of the foreign oil supplies we do receive, only 8% come from Gulf nation producers.  A mere 7% of those supplies travel through the Strait of Hormuz.  In other words, the US doesn’t rely on the Gulf for oil.  With the new Venezuelan deal and oil flows from the gulf back to 98% of pre-conflict levels, the war is even less of a concern when it comes to US energy. 

The problem is, there is a global oil refinery capacity shortage, and the US is not adapting as it should.  

Ukrainian drone strikes against Russian refineries have recently forced the Kremlin to cut off all diesel exports to other countries.  Russia is the second largest supplier of diesel in the world with 12% of all exports.  This loss to global markets is straining already struggling refineries and causing prices to climb.  The only country with the ability to increase refining capacity quickly is the US, but it’s not happening.  

The last time a full-conversion refinery was built in the US was Marathon’s Garyville, Louisiana plant. It came online in 1977 at about 200,000 b/d and has since been expanded to about 617,000 b/d.  Most U.S. capacity growth since the 1970s has come from expanding existing sites, not building new ones.    

In five decades, no major infrastructure has been added.  This means that as aging plants shut down, or as they are closed down due to state policies, US refining capacity will continue to fall and the ceiling for supply vs demand will get tighter and tighter. 

Currently, national demand for distilled products is 8.7 million b/d, and production provides only 9.5 million b/d – That’s an extremely narrow gap at 95%-98%.  Unfortunately, this gap has narrowed further due to refinery closures in 2025.  The largest drop in U.S. capacity came from the shutdown of the LyondellBasell’s Houston plant (about 264,000 barrels per day) and the Phillips 66’s Los Angeles plant (about 139,000 barrels per day). Together those removed about 400,000 b/d; small expansions elsewhere offset some of that, but not enough.  

The Houston plant was built in 1918 and was so old any expansion or updating would have been too costly.  Plants in California, on the other hand, have been closing due to crushing regulations.  Valero’s Benicia plant (about 145,000 b/d) stopped refining this spring and was taken out of monthly capacity later.

The answer to refinery shrinkage has long been “expansion creep” in existing facilities because it’s faster than building brand new infrastructure, but this is not going to help for much longer.  Current facilities are limited in their ability add on more capacity and these measures do not account for abrupt global changes, wars and crisis events. 

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Trump Maps Out $200 Billion in Korean Investment, but the Biggest Deals Aren’t Done Yet

President Donald Trump put some yuge numbers on the table Wednesday: up to $200 billion in South Korean investment for American energy projects, including Alaska LNG, eight nuclear power plants, and a massive natural gas power project in Texas.

The announcement finally gives shape to part of the $350 billion investment package South Korea agreed to as part of last year’s trade deal with Washington. Of that total, $150 billion was set aside for shipbuilding and another $200 billion for strategic investments selected in cooperation with the United States.

From Reuters:

“Thanks to the agreements my administration has secured with the Republic of Korea, they will invest up to $200 billion,” Trump said.

He said that the investment would include the construction of eight large-scale nuclear power plants, a liquefied natural gas pipeline in Alaska and a 6-gigawatt power generation facility in Texas.

The announcement is part of a series of economic and investment deals Trump is highlighting ⁠ahead of November’s midterm elections, as he seeks to reinforce his economic record amid voter concerns over the Iran war and high gasoline prices. The Alaska LNG project also comes as Republicans seek to retain incumbent Senator Dan Sullivan who faces Democrat Mary Peltola. Sullivan was in the Oval Office for the Wednesday announcement.

The Alaska LNG project includes an 807-mile (1,299-km) pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska’s southern coast, allowing the fuel to be shipped to Asian markets. The project is designed to transport about 3.9 billion cubic feet of natural gas per day and produce up to 20 million metric tons of LNG annually, according to the White House.

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Chuck Schumer Orders Democrats to Block Bill That Aims to Force Data Centers to Cover Increased Energy Costs

Senate Democrats are working to short-circuit a bill aimed at protecting consumers from the costs of data centers.

The Ratepayer Protection Act passed the House 417-3 in the 435-member House.

However, Senate Minority Leader Chuck Schumer opposes the bill, which he called “a fraud,” according to The Hill.

“Americans are demanding real guardrails on AI and data centers, but all the Republicans offer is a toothless messaging bill,” he said Tuesday.

The bill requires 60 votes to pass a procedural hurdle. Although Republicans have a majority in the Senate, it would take Democratic votes to move the bill forward.

Democratic Sen. Peter Welch of Vermont, who had been the lone Democrat supporting the bill, said he has changed his mind.

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Mystery Explosions: Syria’s Recovering Gas Network Keeps Getting Sabotaged

Syria has reported at least two acts of major sabotage against its gas infrastructure in six weeks, and it raises questions over who or what group is behind it, and what this means for future energy transit projects.

Monday evening saw a fire rage out of control for many hours at a gas pipeline between al-Shola and Deir Ezzor following a mystery explosion. 

Syrian Petroleum Company (SPC), which oversees the site, called it an act of sabotage which abruptly halted gas flows from the Jbeissa gas plant to power generation stations, according to details from state-run SANA.

The New Arab writes that “In January, the SPC began pumping raw gas from the Jbeissa fields in Hasakah to the Furqlus gas plant in Homs province, with around 1.2 million cubic metres passing through the network each day to support electricity generation.”

The report adds, “Damascus has also been working to reconnect other major eastern gas facilities to the national network.”

For several years stretching through much of the last decade, Syrian cities – including the capital – have suffered intermittent and long power outages. It was especially during the tail-end of the proxy war to oust Assad that lack of fuel and electricity became a major crisis.

Damascus residents, for example, often had a mere one hour of electricity in their homes per day – if at all. Entire remote villages and towns simply proceeded with daily life amid a total and persistent blackout. This was to a large degree the result of a US-led sanctions war which in effect strangled the population. US troops had even for years directly occupied Syria’s eastern oil and gas fields, which had been crucial for meeting domestic energy needs.

But now after Jolani and his HTS jihadists seized power, and with Washington sanctions declared removed, the country is trying to restore and rebuild services.

While no group has yet claimed responsibility for sabotaging facilities in the east, it illustrates how the country is still in a deeply unstable situation.

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Energy Secretary Announces $2 Billion For Improving Electric Grid With Smart Technology

The U.S. Department of Energy has committed $2 billion for smart technology improvements to the nation’s electric grid, aiming to address concerns about artificial intelligence power usage, blackouts, and higher utility bills heading into the colder seasons.

During a press conference on Sept. 24, Energy Secretary Chris Wright said the investment would affect around 100 million Americans. Nationally, the spending would be distributed across 31 projects in 26 states and is expected to produce more than 23 gigawatts of electricity annually, enough to power about 16 million homes.

“This is a quick way to lower electricity prices and increase reliability: using fibers that are already in the transmission lines to analyze what’s the temperature out, what’s the wind out, how can we use this transmission line to distribute more power, but safely and only in the right conditions,” Wright said, speaking at a PPL Corp. facility in Allentown, Pennsylvania.

As Jeremy Lott reports further for The Epoch Times, PPL owns one of those projects at the local level. It’s a $71.5 million effort to modernize an existing high-voltage transmission line across roughly 30 miles in northern Pennsylvania.

The state has a few data centers now online and a half-dozen more under construction, with grid improvements that could help facilitate them.

Future data center construction in the state has been slowed by an executive order issued by Pennsylvania Gov. Josh Shapiro in August, which affects the construction of all data centers that will use 25 megawatts or more, or enough energy to power about 18,000 homes.

Shapiro said the order was about “implementing the strictest standards in the nation for AI data centers – because I will not allow Pennsylvanians to be bullied by greedy developers and bulldozed by the lawyers working for these big tech companies.”

Manufacturing Grid Components

AI has been in the spotlight in much of the recent electricity news, from the latest grid upgrades to a recent executive order by President Donald Trump.

The “bulk-power system” executive order, issued in late August, aimed to ensure that key components of the grid are not manufactured in nations under arms embargoes or other U.S. sanctions, particularly China, but are instead manufactured domestically whenever possible.

The text of the order said that the new restrictions were necessary because AI and AI-related production, including defense technology, has increased America’s “dependence on abundant, reliable electricity.”

Smart technology improvements to the grid can help reduce electricity waste and thereby free up more supply, but those improvements also increase vulnerability to hackers.

America’s energy needs have heightened the consequences of a “successful attack or supply disruption on the bulk-power system,” the order warned.

The concern is that components manufactured in regimes hostile to certain U.S. interests might contain “backdoors” or other features that make it easier to sabotage the grid, the order stated.

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Ukraine Pounds Major Moscow Refinery As Global Diesel Crisis Threatens Economic Shock

Military conflicts, economic wars, and resource wars are converging ahead of the Northern Hemisphere winter.

Export restrictions on critical materials and energy products are adding economic pressure worldwide, raising the risk that supply disruptions and retaliatory measures widen existing conflicts. With no clear path to de-escalation, the potential for spillover from active war zones remains top of mind.

The most pressing news so far this morning is that Ukraine launched a major overnight drone strike on Russia, hitting a Moscow refinery despite President Trump’s request for Ukraine to stop striking Russian energy infrastructure as a global refining crisis deepens.

Bloomberg reports that the Gazprom Neft-owned Moscow Oil Refinery, about 16 miles from the Kremlin, was struck by drones. The facility has a processing capacity of around 245,000 barrels a day and supplies fuel to the surrounding metro area.

Ukrainian President Volodymyr Zelenskyy wrote on X, “One of Russia’s key oil industry facilities and the aggressor’s logistics facility were hit. These are billions of dollars that sustain the war machine. The systems used included FP-1, RZ-100, MICH-2000, Palianytsia, Vendetta, Liutyi, Bars, Flamingo, Sichen, and Pelican.”

Last week, diesel futures and refining spreads climbed to record highs as worsening supply disruptions in the Gulf and Russia tightened availability of the industrial fuel that powers the global economy.

Potential export restrictions, or extensions of existing restrictions, are compounding the squeeze. A report on Tuesday said Moscow was considering extending its diesel export ban, while Senate Majority Leader John Thune told reporters that day he was “open to exploring” a US diesel export ban.

The squeeze was even more severe in refining spreads. The US heating oil crack, which measures the difference between fuel and crude prices, surged to $117 a barrel on Wednesday, the highest level in Bloomberg data going back to 2009.

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