The US military consumed 90 million barrels of oil last year which cost $15 billion, and military fuel consumption is expected to increase with the adoption of the F-35 combat aircraft, the Littoral Combat Ship, and the KC-46A tanker aircraft, that “will all consume more fuel than the platforms they will replace.” As a result, there is a strong need to reduce fuel consumption and diversify fuel sources, and these requirements could have knock-on benefits for US companies. “For now, the well-being of every American depends on reliable, steady access to fossil fuels. But down the road, economic and environmental pressures will make energy efficiency and cleaner energy urgent priorities. The Pentagon’s investments in energy efficiency and renewable sources will primarily benefit its core mission, but they also have the potential to contribute to improving energy efficiency and cutting down on fossil fuel consumption across the United States.” [Foreign Affairs]

Soaring temperatures in California coupled with drought conditions that have depleted hydro-electric resource volumes and low natural gas inventories, compounded by the shutdown of the San Onofre nuclear plant, are all contributing to significant spot power price increases. [Bloomberg]

Severe weather knocked out power for thousands of customers served by CenterPoint Energy and Oncor across a wide swath of Texas yesterday. [AP via Star Telegram]