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Another OPEC Exit? Iraq Warns It Could Abandon Oil Cartel If Quota Hike Rejected
Iraq is sending a warning shot to OPEC: raise Baghdad's oil production quota to better reflect its capacity and fiscal needs, or risk yet another defection from the oil-producing cartel.
"The ministry currently has no intention of withdrawing from OPEC, and we remain committed to operating within the organization's framework and mechanisms," Oil Ministry spokesman Salim Al-Rikabi told Bloomberg via a text message.
Al-Rikabi warned, "Of course, taking into consideration that the Ministry is moving forward with increasing its production to align with its capabilities and needs, the organization should raise Iraq's production level. Otherwise, a decision will have to be made regarding whether to remain in or withdraw from OPEC."
Iraq's threat to leave OPEC comes two months after the UAE formally left the oil cartel, which now comprises 11 members, including Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, and Venezuela.
The UAE ranks among the top producers in OPEC (4.05 million bpd) and left the group due to its growing capacity ambitions (targeting 5 million bpd by 2027).
We noted at the time...
OPEC finished https://t.co/RtxJdZQeQh
— zerohedge (@zerohedge) April 28, 2026On a normal, pre-disruption OPEC basis, Iraq and the UAE were huge:
A possible exodus of Iraq, on top of the UAE's recent exit, would only further weaken OPEC's ability to defend price floors, especially during periods of glut.
However, a separate Bloombreg report said Iraq walked back its threat to leave...
"The reports suggesting that Iraq is considering ending its membership in OPEC do not reflect the official position of the Iraqi Government. Neither the Prime Minister nor the Government of Iraq has proposed withdrawing from the Organization," the Oil Ministry said in a statement.
Tyler Durden Thu, 06/25/2026 - 07:45The AI Race Will Be Won Or Lost On Power Infrastructure
By Amanda Simonian, chief marketing officer at TerraFlow Energy, first published in UtilityDive
Over the past several months, moving between conversations on Capitol Hill, industry conferences, and meetings with operators, developers and policymakers, I have been struck by how often very different discussions keep circling back to the same underlying concern: power. In congressional offices, it comes up through the language of energy security, industrial policy and what it will take to keep infrastructure ahead of rising electricity demand. Across the industry, it surfaces through a more operational vocabulary: interconnection bottlenecks, volatile load growth, transmission constraints and the practical question of where the next gigawatt comes from.
Data centers in Stutsman County, N.D.What made those conversations interesting wasn’t simply that policymakers and operators were focused on the same issue. It was that many of the proposed answers still seemed rooted in an assumption that deserves more scrutiny. Much of today’s discussion treats AI-driven load growth primarily as a supply challenge. Demand is rising sharply, so the answer must be to build more generation.
That’s true, but only partially.
I’ve come away increasingly convinced the sector may be treating what is fundamentally an infrastructure performance challenge as though it were only a generation problem. Those aren’t the same thing, and the distinction matters. In many places, the strain emerging around rapid load growth isn’t just about whether enough electrons can be produced. It’s about whether the systems carrying, balancing and responding to that power can perform reliably as loads become denser, more dynamic and far less predictable than the grid was originally designed to support.
There are signs of that pressure showing up across the country already. Recent warnings from the PJM Interconnection around reserve margins, rising demand scenarios in the Electric Reliability Council of Texas and analysis from the Electric Power Research Institute projecting major increases in data center electricity consumption all point toward a common reality: this isn’t a regional anomaly, and it isn’t a problem sitting comfortably on the horizon. It is beginning to surface now in ways that challenge longstanding planning assumptions.
That is part of why the “just build more generation” framing feels incomplete. More supply matters, but supply alone doesn’t resolve congestion at constrained nodes, instability caused by volatile load behavior, or the local system stress created when large loads concentrate faster than infrastructure can adapt. In some cases, responding to those pressures primarily through generation additions risks solving for scarcity while leaving unresolved, or even exacerbating, the performance challenges underneath.
That isn’t simply a fuel problem, but a systems problem, and systems problems tend to get harder when they’re diagnosed too narrowly.
Even actions like Executive Order 14156 and subsequent federal actions on grid infrastructure suggest growing recognition that energy systems are becoming a strategic competitiveness issue. But the more important question may not be how quickly infrastructure can be deployed, but whether the infrastructure being prioritized is designed for the character of demand now emerging. Speed matters, but architecture matters too.
If infrastructure performance is becoming a limiting factor, then planning, procurement and policy frameworks need to start valuing flexibility and operational capability alongside megawatts. Resource adequacy models should account not only for how much capacity a resource provides, but also for how effectively it responds to rapid load variability. Interconnection and permitting processes should encourage architectures that reduce stress on local infrastructure rather than simply adding demand. Utilities, regulators and large-load customers should be evaluating infrastructure based on its ability to improve system resilience, absorb volatility and support grid performance under real operating conditions.
As the character of demand changes, the metrics used to evaluate infrastructure likely need to change with it. The question is no longer only whether new resources can produce electricity. It’s whether they help the system operate more reliably as load growth accelerates. That matters because the public debate is still asking a narrower question than the moment demands. We often ask whether the U.S. can build enough electricity to support AI growth. A harder and more consequential question is whether we can build power systems capable of supporting that growth reliably. One is fundamentally about supply. The other is about whether the system itself can hold under stress.
Those are not the same challenge.
Tyler Durden Thu, 06/25/2026 - 07:20Missing Chicago couple found dead outside Mexico City, family confirms
New details about ‘The Wire’ alum Bobby J. Brown’s cause of death revealed after tragic barn fire
New details about ‘The Wire’ alum Bobby J. Brown’s cause of death revealed after tragic barn fire
GOP Rep. Tom Kean Jr. back at New Jersey home ahead of return to Congress
Michael Jackson’s close friend and ‘dermatologist to the stars’ Arnold Klein could have done more to save King of Pop: producer
Michael Jackson’s close friend and ‘dermatologist to the stars’ Arnold Klein could have done more to save King of Pop: producer
Heat Dome Sends European Power Prices Soaring
An intense heat wave continues to bake France and parts of Europe, with temperatures surging well above the 30-year average for this time of year.
Welcome to summer.
They think we are stupid, that our memories cannot stretch back to when life was normal, and when our lives were not based on fear...
Summer, it gets hot, Winter it gets cold...
It's NORMAL. https://t.co/hYHvZ3dI2w
In France, the average daily temperature reached 85.6F on Tuesday, according to Météo-France, while Pissos in southwest France hit 111.7F.
The heat dome parked over Western Europe is set to fade by the end of the week, but temperatures will remain well above the 30-year seasonal average.
French evening power prices on Tuesday soared to their highest level since the 2022 energy crisis, while German power prices hit two-year highs. In Belgium, peak-hour power prices for Wednesday evening jumped to 933.28 euros per megawatt-hour on EPEX Spot.
French grid operator RTE is preparing for possible heat-related disruptions, including de-energizing power lines.
The heat is also straining climate-friendly power grids because of low wind generation, while heat-related restrictions at French nuclear plants have created a perfect storm of tight power supply just as millions of residential and commercial buildings crank up their air conditioning.
Red heat warnings have also been issued across Germany, Luxembourg, Switzerland, and the UK through Thursday.
Bloomberg noted, "France is at the epicenter of this month’s heat wave, as a high-pressure heat dome is reinforced by atmospheric shifts linked to a developing El Niño."
Latest El Niño coverage:
- Super El Nino: Famine Follows War?
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- First Major Weather Organization Declares El Nino Onset As Food Inflation Risks Intensify
Meanwhile, it's quite nice in Washington, DC, right now, with average temperatures holding below 30-year averages.
When Democrats are not ramming through radical de-growth climate bills, their climate propaganda machine goes quiet.
Tyler Durden Thu, 06/25/2026 - 06:55