In the U.S., developers of solar and wind projects are bracing for much tougher operating conditions after President Trump's massive tax and spending bill was narrowly passed by the U.S. Senate.
After being approved by only a single vote, the bill is now bound for the House of Representatives for a final vote. If made into law, it will rapidly phase out tax cuts for solar and wind projects that industry analysts say will hobble new power supply development just as U.S. electricity demand is set to accelerate.
The U.S. solar sector is particularly vulnerable to a rapid slowdown if the bill becomes law, with thousands of projects planned or under development at risk if the current incentives and support measures are scrapped.
But it's not just renewables that are being impacted by the budget bill. The amount of funds available to replenish the U.S. Strategic Petroleum Reserve - which Trump pledged to fill "right to the top" - have been slashed from $1.3 billion to just $171 million. That's only enough to buy 3 million barrels instead of 20 million at current prices.
The SPR has nearly 403 million barrels, far less than the 727 million barrels it held in 2009, the most ever. It is still the world's largest emergency reserve of oil. The U.S. hit record oil output under President Biden, and President Trump is looking to expand it further.
And Trump's energy impact extends well beyond U.S. borders, with ethane the latest energy product to be roiled by the U.S. President's maneuverings.
Back in late May, the U.S. introduced restrictions on shipments of ethane - used as a feedstock by chemicals producers - to China, after accusing China of slowing shipments of rare earths and other materials to U.S. car makers and industry.
But this week the U.S. Commerce Department cleared the way to resume ethane flows in a sign that the U.S.-China trade talks remain on track.
And Vietnam is also now on energy exporter radars after Hanoi reached a deal with Washington on tariffs placed on Vietnam-made goods. Under the agreement, the U.S. will place a 20% tariff on goods made in Vietnam, which is a lot less than the previously-threatened 46% rate.
Details were scant. It was not clear which products Trump's 20% tariff would apply to, or whether some would qualify for lower or higher total duties.
Also left to later discussion was how the new trans-shipment provision, aimed at products largely made in China and then labeled "Made in Vietnam," would be implemented and enforced.
Still, the outline of a deal brings Vietnam into focus as a potential destination for U.S. energy exports, particularly LNG and crude oil.
I dig into that topic and highlight the key energy and economic trends to track in Vietnam going forward in today's column.
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