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Oil.  Oil prices surged by more than 6% today amid escalating violence in the Middle East.  While it does not appear that oil flows in the region were disrupted, Saudi Arabian involvement stoked market fears that a wider conflict may soon impact the oil-rich region.  WSJ

Energy Outlook.  New data from the U.S. Bureau of Transportation Statistics and the Federal Highway Administration indicates that low fuel prices and a growing economy are indeed increasing the volume of consumer travel.  Specifically, traffic on U.S. highways has grown more in the past 12 months than in the previous two-and-a-half years — confirming assumptions that strong fuel demand will keep global crude prices at $55 – $60 per barrel amid increasing global oil production and inventories.  Reuters

Energy Policy.  The New York Times notes that a reputable Harvard legal scholar, Laurence Tribe, has garnered public attention for his attacks on the constitutionality of President Obama’s Clean Power Plan.  Professor Tribe asserts that the Clean Power Plan violates the 10^th Amendment by permitting the federal government to take control of state institutions — a reading of the Constitution that invalidates both the Clean Power Plan and the National Ambient Air Quality Standards under the Clean Air Act.  NY Times

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Energy Policy.  The Supreme Court heard 90 minutes of oral argument today on whether the Environmental Protection Agency (EPA) should have considered the costs to coal-and oil-fired plants before deciding whether to require plants to cut emissions — a key part of the Obama administration’s environmental agenda.  The Court appeared deeply divided over the issue, as more liberal justices (e.g., Justice Ruth Bader Ginsberg) generally voiced support for the EPA in imposing the regulations, while more conservative justices (e.g., Justice Antonin Scalia) asserted that the regulations represented a “classic” violation by a federal agency to impose rules without considering exorbitant costs.  WSJ

Oil.  According to a senior Gulf OPEC delegate, stronger than expected global oil demand will likely keep crude prices at $55 – $60 per barrel despite indications of a growing glut.  The statement is contrary to some forecasts that the U.S. supply glut will push global prices toward $20 a barrel — and suggests that OPEC officials remain confident in their decision to boost demand and defend market share.  Reuters

Natural Gas.  According to a study by two Brookings scholars, hydraulic fracturing (also known as fracking) has directly translated into an economic boom — predominantly through the channel of declining natural gas prices.  Specifically, the authors found that the fracking revolution caused gas prices to drop 47% compared with prices before the shale boom, leading to approximately $200 in energy savings per year for gas-consuming households across the United States.  Brookings

Solar.  The editors at Bloomberg View note that residential solar customers not only use less electricity, but also pay less toward the cost of maintaining and operating the electrical grid.  The problem — coined “solar freeloading” — effectively becomes a regressive tax on energy because customers without expensive solar panels end up paying more toward grid costs through their electricity bills.  The editors suggest that monthly fees on solar customers present a fair and simple solution.  Bloomberg