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US Treasury Blocks Venezuela-Led Governance Changes at Citgo

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The US Treasury Department has amended a Venezuela license to prevent unauthorized governance changes at Venezuela-owned refiner Citgo Petroleum and its parent companies in the US, PDV Holding and Citgo Holding, it said on Monday.

The updated license does not authorize "any transaction to affect or alter the governance" of the companies, "including the appointment, removal, or replacement of any director, officer, or other corporate governance official," the Treasury's Office of Foreign Assets Control said.

Last week, Reuters reported that Citgo Petroleum's board of directors could end its leadership as soon as this month, following a restructuring led by Venezuelan interim President Delcy Rodriguez to regain control over the country's foreign assets.

The Treasury's latest license amendment, however, blocks this move.

After the US recognized Rodriguez as Venezuela's president, she has replaced law firms representing Venezuela in foreign court cases and removed opposition-led political leaders.

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Commodities

EPA Finalizes Repeal of 2024 Power Plant Emissions Rules, Proposes Scrapping Remaining Standards

The US Environmental Protection Agency on Monday finalized the repeal of most Biden-era greenhouse gas standards for power plants and proposed rescinding all remaining federal climate rules for the sector.Administrator Lee Zeldin unveiled the repeal at the G20 Energy Abundance Ministerial in Houston, alongside Interior Secretary Doug Burgum and National Energy Dominance Council Executive Director Jarrod Agen.EPA said the final rule would save $310 billion, and the proposed repeal would add another $370 million in compliance-cost savings if adopted.The final rule strikes down most of the 2024 Carbon Pollution Standards, which required power plants to use emissions-control technology EPA now says was not "adequately demonstrated" and exceeded the agency's authority under the Clean Air Act.EPA cited the Supreme Court's 2022 ruling in West Virginia vs EPA, which limited the agency's authority to reshape the power sector's fuel mix.The broader proposal would go further, eliminating remaining greenhouse gas rules for power plants entirely.EPA said that after the repeal of the 2009 Endangerment Finding and the Supreme Court's Loper Bright decision overturning Chevron deference, the Clean Air Act does not authorize it to regulate power-plant emissions on climate grounds.The agency also said potential public health harms from the plants' emissions are too diffuse to justify federal regulation.Zeldin said the rules would lower electricity prices and expand coal and natural gas use, calling the 2024 standards part of a "war on coal" by prior administrations."Americans will see a decrease in electricity prices, but this is just the beginning," Zeldin noted.Energy Secretary Chris Wright said the change would support baseload power generation."Today's announcement will help ensure reliable electricity generation regardless of whether the wind is blowing or the sun is shining by allowing coal and natural gas plants to keep generating power when Americans need it most," Wright said.EPA projects coal use for power generation could increase more than tenfold as a result of the rule changes, which it frames as part of a broader push for US "energy dominance."The proposed repeal will be subject to a public hearing 15 days after publication in the Federal Register, followed by a 45-day public comment period.America's Power, a trade association representing coal-fired power plants, welcomed the move. President and Chief Executive Officer Michelle Bloodworth said the repeal would help preserve the coal fleet."Overturning these examples of EPA overreach will help preserve and strengthen the US coal fleet, protect grid reliability, and shield electricity consumers from higher costs at a time of surging demand from data centers, artificial intelligence, and advanced manufacturing," Bloodworth said.She said the rules being repealed would have threatened the retirement of over 170 coal plants across 37 states, and cited EPA's estimate that utilities and ratepayers will save roughly $1.2 billion a year as a result.

Commodities

US Treasury Amends Venezuela License to Block Citgo Governance Changes

The US Treasury Department on Monday amended a Venezuela-related license to prevent unauthorized changes to Citgo Petroleum's governance and that of its US parent companies.The Treasury's Office of Foreign Assets Control said the revised license authorizes certain transactions involving Petroleos de Venezuela, or PDVSA, and entities in which it holds a direct or indirect 50% or greater interest.The measure covers Citgo Petroleum, PDV Holding and Citgo Holding, placing limits on corporate governance actions involving the companies under the amended authorization.The amended license restricts the appointment, removal or replacement of directors, officers and other corporate governance officials at Citgo and its US parent companies.The action comes as Venezuela's interim President Delcy Rodriguez seeks greater control over the country's overseas assets after Washington formally recognized her government and as Caracas changes law firms handling foreign court cases, according to a Reuters report.

Commodities

US Natural Gas Update: Futures Climb on Demand Outlook and Crude

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