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Energy Policy.  Iran’s Supreme Leader announced today that his country would not allow the recent nuclear deal to become an avenue for the U.S. to interfere with the political, economic, and cultural life of the Islamic Republic.  He accused the U.S. of intending to infiltrate Iran through the accord, and noted that the fate of the deal is unclear as it has not been approved on either side yet.  WSJ

Oil.  The plunging price of crude oil poses a threat to states like Texas, North Dakota, Colorado, and Pennsylvania that have had booming oil and natural gas production due to fracking practices.  Companies have had to slash their payrolls this summer, suspend payments to investors, and cease borrowing — developments that many predict will result in a painful consolidation among oil producers. NY Times

Energy Outlook.  Reuters notes that the Department of Commerce’s decision last week to allow the export of U.S. crude to Mexico comes at a time when foreign appetite for U.S. oil appears to be waning.  While Mexico will most likely take advantage of the new opportunity as a means of improving its own refinery operations,  oversupply of crude on the global market will likely keep U.S. exports constrained for some time.  Reuters

Oil.  Nick Butler of the Financial Times discusses the dilemma that Saudi Arabia faces ahead if it continues its strategy of over-production in an attempt to force other producers out of the market.   Butler notes that developments such as the Iran nuclear accord — which threatens to increase global supplies even further and heighten Iran’s influence in the region — and the resilience of the U.S. shale industry threaten to push prices down even further; he speculates that based on history, the kingdom will likely exercise caution and change its policies before prices truly bottom out.  FT

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Energy Policy.  The U.S. Commerce Department informed members of Congress today that it intends to approve an application from Mexico’s national oil company to enter into oil trade agreements with U.S. companies, thereby eroding the four-decade U.S. ban on domestic crude exports.   U.S. oil companies have been pushing the Obama administration to relax restrictions so that they can sell excess oil in higher-priced foreign markets.  WSJ

Oil Outlook.  According to Reuters, recent oil price declines have opened up opportunities for U.S. energy sector dealmakers and private equity managers to begin restructuring or buying assets from oil companies in need of quick cash.   Private equity firms — known for having a high risk tolerance and a longer horizon for investments — are eager to make these deals, particularly given long-run expectations that oil prices will return to around $100 a barrel with new demand stemming a growing middle class in developing countries.  Reuters

Energy Policy.  Fifteen U.S. states — led by West Virginia— have prepared to challenge the EPA’s Clean Power Plan on grounds that the policy breaches states’ rights and will harm the economy by raising electricity prices and threatening the reliability of power supplies.  The states are seeking to freeze the implementation of the plan through an injunction, saying that the plan’s deadlines would require states to begin cutting emissions immediately. FT

Solar.  Reuters reports that the U.S. solar market is “on fire” — installations of solar panels are expected to increase by one third this year, solar power has become price-competitive with gas and coal-fired power in place such as California, and the industry will likely benefit from the Obama administration’s plan to curb power plant emissions.  Counter to these developments, private investors seem to view investments in solar as risky, fearing that low oil prices will reduce demand for alternative energy. Reuters

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Oil.  The Wall Street Journal notes that refining margins continue to rise in 2015, exceeding expectations and helping to cushion the impact of low oil prices for integrated oil and gas companies.  The demand for oil products has benefited from lower prices more than experts predicted —  particularly in the U.S., where average daily gasoline demand is more than 5% higher than last year and measures of “vehicle miles traveled” have also steadily risen.  WSJ

Energy Outlook.  The Energy Information Administration reports that increased Iranian crude oil production resulting from the nuclear accord will contribute to large inventory builds next year and consequently lower oil prices more than previously expected.  Further, EIA’s outlook for U.S. crude production has been revised downward by 400,000 barrels per day in 2016, and the agency expects that the biggest declines in production among non-OPEC producers will occur beyond 2016 for producers in areas outside of the U.S. shale plays. EIA

Oil.  Industry analysts report that the world’s biggest oil producers will need to slash investments by an additional $26 billion — or 10% of current expenditures — in order to meet dividend commitments amid the continued price slump.  Oil producers have mitigated the impact of the price downturn by tightening operating costs, cutting capital expenditures, and even increasing their share of natural gas output in order to reduce exposure to low prices; looking ahead, analysts estimate that majors will need Brent prices at $82 per barrel next year in order to balance cash flow between operations and investments.  Bloomberg

EPA.  After a contractor for the EPA accidentally caused a mine to burst during a field investigation last week in Colorado, the agency has halted all similar investigations until further notice.  The EPA is still seeking an independent review of the cause of the spill, and officials have not yet determined what health risks, if any, the incident poses.  NY Times

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Oil.  According to the International Energy Agency, demand for oil is increasing at its fastest pace in five years, driven largely by a consumer response to lower oil prices and improving macroeconomic prospects.   The organization predicts that while global demand grew by 1.6 million barrels a day this year, the supply glut will likely persist through 2016 — causing many industry participants to adopt the mantra “lower for longer.”  WSJ

EPA.  EPA Administrator Gina McCarthy apologized yesterday for a mine spill caused by her agency in Colorado last week.  An EPA cleanup crew accidentally released three million gallons of toxic substance in an abandoned gold mine, and has been criticized for lacking an adequate network in the region to respond to the disaster quickly and efficiently.  WSJ

Oil.  The price for crude oil from Canada’s Alberta oil sands region has fallen to $23 per barrel — the lowest level for international crude prices in 12 years.  While this type of crude is already the world’s cheapest grade of oil, steadily rising production from existing projects, pipeline constraints, and refinery disruptions have driven prices even lower for Canadian producers.  FT

Energy Outlook.  The U.S. Energy Information Administration cut its outlook for U.S. crude production through 2016 amid a sharp reduction in the number of oil rigs since the price downturn.  Despite the downward revision, however, U.S. crude oil production is still on track to reach its highest level since 1972 as drillers continue to implement new techniques that boost the productivity of active wells.  Bloomberg

Climate Change.  Ken Silverstein of Forbes argues that although firms in U.S. “coal country” attribute industry failures and bankruptcies to the Obama administration’s “War on Coal,” these woes are largely due to the availability of cheaper and cleaner fuels and “having made some bad bets.”  He specifically points to newfound supplies of natural gas — a resource that could replace coal’s economic contributions and is far less labor-intensive.  Forbes

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Oil.  According to OPEC’s monthly oil market report, the cartel’s production rose to its highest level in more than three years in July, despite global oversupply and tumbling prices.  Specifically, the organization’s 12 members pumped 31.5 million barrels per day last month — the highest level since May 2012 and a month-on-month increase of 101,000 barrels per day — in efforts to protect market share.  WSJ

Energy Outlook.  Japan has restarted its nuclear reactors in order to reduce dependence on imported energy, ending a nearly two-year offline period during which the country utilized coal, liquefied natural gas, and oil for nearly 90% of its power needs.  Japan has 43 operable reactors, all of which have been inactive since September 2013 due to strict regulations introduced after the March 2011 earthquake and tsunami that struck the Fukushima Daiichi power plant.  WSJ

Energy Policy.  Philip Wallach of the Brookings Institute argues that the Clean Power Plan is unlikely to swing the 2016 Presidential Election, largely due to the risk involved for both parties in “battling” the issue of climate change.  Should climate change turn out to be a critical campaign issue, Wallach notes that the Clean Power Plan could serve as an effective campaign strategy for Republicans critical of executive branch overreach — particularly in swing states with high targets under the regulation. Brookings

Energy Outlook.  Europe is likely to be a market for Iranian natural gas exports following the recent nuclear accord.  Moses Rahnama discusses the challenges Iran will likely face in exporting its most abundant commodity, including an oversupply of liquefied natural gas, growing competition from other producer countries, weakness in demand, and issues with domestic infrastructure.  FT