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Energy Policy.  Today the Senate began debating a major piece of energy legislation that would update U.S. power grid and oil and gas transportation systems as part of a larger effort to modernize energy infrastructure.  The bipartisan bill has the support of both the Senate majority leader, Mitch McConnell (R-KY), and the Senate minority leader, Harry Reid (D-NV), and Washington insiders have hinted that the bill has a fair chance of producing “substantive debate” and a “meaningful new energy law.” NY Times

Oil.  Oil futures spiked today on news that Russia might cooperate with OPEC and cut a deal to lower production levels and reduce oversupply.  Industry analysts are skeptical that such a deal will come to fruition, however, as most oil producers remain more concerned with maintaining their own levels of output and revenues than re-balancing the market.  Reuters

Energy Policy.  After passing sweeping energy reforms in late 2013, Mexico opened its first competitive power market today.  The historic move is expected to accelerate the country’s switch to renewable energy sources and boost its natural gas demand relative to oil, which will likely increase the nation’s natural gas imports from the U.S.  Bloomberg

Energy Outlook. The Energy Information Administration forecasts that natural gas prices will rise over the next two years, averaging $2.65 per million British thermal units (MMBtu) in 2016 and $3.22 MMBtu in 2017.  In the agency’s closely watched Short-Term Energy Outlook, it notes that the expected price increases are largely due to increases in consumption — mostly from the industrial sector — that have outpaced growth in production capacity.  EIA

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Energy Policy.  The Supreme Court upheld the Federal Energy Regulatory Commission’s authority to incentivize large energy consumers (e.g., industrial businesses, schools) to reduce power usage during peak demand in a 6-2 ruling today.  The decision is seen as a loss for power generators and utilities, which accused FERC of executive overreach, distorting energy markets, and suppressing demand for electricity.  WSJ

Energy Outlook.  The Wall Street Journal reports that global oil prices are moving in “lockstep” with stock markets, which highlights growing fears about faltering global economic growth.  The unusually strong correlation between the two markets marks a notable shift in the dynamics of the oil price downturn, and suggests that traders are now worrying not only about oversupply, but also weakening demand.  WSJ

Energy Policy.  The Interior Department proposed a new rule on Friday that aims to curb emissions of methane from all oil and gas drilling that occurs on publicly owned lands.  The rule would force companies to use equipment to capture leaked gas, and would also make it more expensive for oil, gas, and coal companies to mine and drill on public land.  NY Times

Climate Change.  The Securities and Exchange Commission (SEC) — Wall Street’s “Top Regulator” —  is reviewing what it requires companies to disclose about the risks that climate change poses to their investments and operations.  In 2010, the SEC asked that companies report on legislation and regulations related to climate change, international treaties on the issue, and the physical impacts of climate change in their regular securities filings; several comptrollers and investment groups have since criticized the agency, calling for greater scrutiny of climate-related disclosers moving forward.  NY Times

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Oil Outlook.  The International Energy Agency warned that the global oil market “could drown in oversupply” as higher production from Iran offsets production cuts elsewhere and growth in global energy demand continues to taper.   The agency further warned that there will be a significant strain “on the ability of the oil system to absorb” the glut of oil, and indicated that prices could further collapse if conditions do not improve.  FT

Oil.  International sanctions on Iran were lifted over the weekend in accordance with the nuclear agreement reached last fall.  The nation’s deputy oil minister has reported that the nation is ready to add half a million barrels a day to its output, though industry analysts note that Iran is unlikely to exceed 300,000 to 400,000 barrels a day due to outdated facilities that have been barred over recent years from importing the latest Western oil field technology and equipment.  NY Times

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Oil.  Energy consultancy Wood Mackenzie reports that oil companies delayed making decisions on 68 major projects around the world in 2015, which account for roughly 27 billion barrels of oil and equivalent natural gas volumes and $380 billion of delayed investments.  The slowdown in new projects could lead to supply constraints in the future, placing upward pressure on prices. WSJ

Climate Change.  Timmons Roberts of the Brookings Institute writes about President Obama’s final State of the Union address, noting that the President abstained from taking a “victory lap” on the Paris climate agreement in December and spent scant time refuting climate skeptics.  Roberts points out that the speech largely shied away from highlighting the Administration’s “major and noisier efforts” on climate change and environmental policy over the past two terms, which signals that the President is likely looking to secure what he’s already achieved, rather than ramp up new efforts in the coming year. Brookings

Oil.  Nick Butler of the Financial Times argues that there is a strong and unambiguous case for oil-industry investors’ dividends to be reduced, as companies cannot continue to “pretend” that the oil price has not sustained a severe decline.  Butler asserts that companies should make dividend reductions part of a broader strategy for survival in a sub-$40 price environment, rather than continue to borrow in an attempt to keep shareholders satisfied. FT

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Energy Outlook.  The Energy Information Administration forecasts that U.S. oil prices will hover at around $38 a barrel in 2016 (down from prior forecasts of around $50 a barrel) and will average $47 a barrel in 2017.  The agency predicts that U.S. oil production will fall from 9.4 million barrels a day in 2015 to 8.7 and 8.5 million barrels a day in 2016 and 2017, respectively — which should correspond with a simultaneous increase in net imports of crude oil and other petroleum products.  EIA

Oil.  Spencer Jakab of the Wall Street Journal explores whether (and which) oil-producing nations will be able to maintain the status-quo should oil prices remain near $30 a barrel.  Jakab notes that risks of solvency and regime change are most likely to plague Nigeria, Russia, and Venezuela, but even Saudi Arabia faces some risk of unrest and political turmoil.  WSJ

Oil Outlook.  After yesterday’s oil price plunge toward $30 a barrel, UK-based BP and Brazil’s Petrobras — two major global energy firms — announced significant layoffs and capital expenditure cuts.   Meanwhile, hedge funds have raised bets against the oil price to near record levels, suggesting that oil prices have farther to fall in coming weeks.  FT