MDN’s Energy Stories of Interest: Fri, Mar 28, 2025 [FREE ACCESS]

MARCELLUS/UTICA REGION: PA PUC launches review of grid impacts from data center growth; Shapiro touts energy plan in Blair County; OTHER U.S. REGIONS: US oil producers face new challenges as top oilfield flags; US gas players refocus on Haynesville basin, buoyed by Trump LNG plans; Northeast gas demand springs upward at start of spring; NATIONAL: Shale-oil bosses slam Trump’s tariffs in anonymous survey; U.S. could see return of acid rain due to Trump’s rollbacks; The U.S. remained the world’s largest liquefied natural gas exporter in 2024; Secret Energy Department “hit list” targets renewable energy industry; The oil industry takes its critics to court; Could U.S. natural gas power AI revolution?; The crumbling of net zero in the U.S.; Climate change taken off America’s global threat list for the first time in over a decade; INTERNATIONAL: Jereh unveils AI-powered oil and gas innovations at cippe 2025; China’s falling LNG imports are a boon for Europe.

MARCELLUS/UTICA REGION

PA PUC launches review of grid impacts from data center growth
Pennsylvania Public Utility Commission
On March 27, 2025, the Pennsylvania Public Utility Commission (PUC) announced a comprehensive review of the electric grid’s reliability amid surging demand from data centers driven by AI, cloud computing, and cryptocurrency growth. The PUC aims to assess how this demand affects grid stability, infrastructure needs, and consumer costs, following a unanimous vote to initiate the investigation. A public hearing in Harrisburg is scheduled for April 24, 2025, with comments accepted until May 26, 2025, to gather input from utilities, data center operators, and the public. Chairman Stephen M. DeFrank emphasized balancing economic growth with reliable, affordable electricity, noting data centers’ potential to strain the grid if not appropriately managed. The review will explore operational impacts, cost allocation, and future planning within the PJM region, ensuring that Pennsylvania adapts to this energy-intensive trend while maintaining service integrity for all ratepayers. [MDN: Interesting move by the PUC. It seems to us there is an overlap in responsibility and authority with the PJM grid itself. How much (if any) do the two regulatory bodies interact and coordinate?]

Shapiro touts energy plan in Blair County
Altoona (PA) Mirror
On March 26, 2025, Pennsylvania Governor Josh Shapiro visited Penn England Farms in Williamsburg to promote his “Lightning Plan,” an energy strategy aimed at reducing costs for farmers and rural communities while fostering bipartisan cooperation. Speaking alongside State Secretary of Agriculture Russell Redding and local leaders, Shapiro emphasized empowering farmers through affordable, reliable energy, highlighting investments in the Agriculture Innovation Fund to support rural quality of life. The plan seeks to address challenges like healthcare deserts and limited internet access by integrating farmers into economic development efforts. Shapiro called for Democratic and Republican lawmakers to unite on this “common sense” approach, which he argued would bolster rural economies and sustainability. The visit underscored his administration’s focus on practical energy solutions, with the Lightning Plan currently under legislative review, aiming to deliver tangible benefits to Pennsylvania’s agricultural heartland. [MDN: What a joke! Shapiro first introduced his so-called Lightning energy plan in January in a visit to Pittsburgh. His big plan? Reintroduce and try to bully Republicans into accepting a Marcellus-killing carbon tax and onerous regulations on emissions (see PA Gov. Shapiro Continues to Push Flawed “Lightning” Energy Plan). No thanks, Governor.]

OTHER U.S. REGIONS

US oil producers face new challenges as top oilfield flags
Reuters
U.S. oil producers are encountering significant hurdles as the Permian Basin, the nation’s leading oilfield, shows signs of aging and nearing peak output, according to a Reuters report from March 27, 2025. The shale revolution’s centerpiece, which propelled the U.S. to become the world’s top oil producer, is now yielding more water and gas than oil, with a water-to-oil ratio averaging four-to-one and rising to twelve-to-one in some areas. This shift increases costs for treatment and disposal, with water management expenses potentially hitting $8 per barrel in less productive zones. Despite record production of 6.5 million barrels per day, geological limits and rising breakeven costs—up to $96 per barrel in marginal areas—threaten growth. Companies like Chevron and Coterra are recycling water to cut costs, but slowing output and higher expenses challenge President Trump’s “drill, baby, drill” vision, potentially keeping oil prices elevated for consumers. [MDN: Sometimes it’s hard to sift through the signal-to-noise ratio in stories like this. Normally, Reuters is good with balanced reporting. This article? We’re not so sure. Yes, maybe the oily Permian is getting less oily. But it’s such a vast play with so many layers (up to 3,000 feet thick in places) that honestly, we don’t think we’re anywhere near the end of oil drilling in the Permian. American ingenuity comes through every time to solve problems and hurdles. That’s been our observation.]

US gas players refocus on Haynesville basin, buoyed by Trump LNG plans
Reuters
U.S. natural gas producers and investment firms are shifting focus to Louisiana’s Haynesville Shale Basin, anticipating a surge in liquefied natural gas (LNG) exports following President Donald Trump’s approval of new projects, as reported by Reuters on March 28, 2025. With the U.S. already the world’s top LNG exporter, new facilities in Texas and Louisiana are driving gas price increases and demand, projected to hit record highs in 2025 and 2026. Companies like Aethon Energy, eyeing an IPO, and investment firms like Proven Resources and Momentum Minerals are capitalizing on this momentum, raising funds to secure Haynesville assets. The basin’s low-impurity gas and proximity to Gulf Coast export hubs enhance its appeal, despite higher breakeven costs of $3.75 per MMBtu compared to Marcellus Shale’s $2.15. Major players, including Expand Energy, Comstock Resources, and BP, alongside Japan’s Tokyo Gas, are ramping up investments, betting on sustained LNG export growth. [MDN: The Haynesville is the M-U’s primary competitor, as we so often tell you. It costs more to drill in the Haynesville than in the M-U, but it’s much closer to the Gulf Coast and easier to build new pipelines in Lousiana and Texas where the play is found. Ergo, it overcomes the higher prices disadvantage with more access advantage.]

Northeast gas demand springs upward at start of spring
RBN Energy
Normally the start of spring signals the beginning of the shoulder season in the natural gas market, where demand dips as the weather becomes warm enough that heating demand dissipates but not hot enough that air conditioners trigger a big boost in power demand. This year, however, weather in the Northeast became colder after the start of spring on March 20, increasing demand for natural gas relative to the previous week. Total Northeast gas demand averaged 21.9 Bcf/d for the week ended March 25, which was 1.6 Bcf/d higher than the previous week. Most of the increase came from a bump in Res/Comm demand, which was 1.2 Bcf/d higher. The increase in demand was not a massive one, and the effect on cash basis in the producing region was mixed. [MDN: The cold weather in the northeast does appear to be driving more demand, and with that, slightly higher prices. Although spot prices vary around the M-U region, which has been down over the past few days.]

NATIONAL

Shale-oil bosses slam Trump’s tariffs in anonymous survey
Bloomberg
A Federal Reserve Bank of Dallas survey released on March 26, 2025, revealed a stark contrast between the U.S. oil and gas industry’s public support for President Donald Trump and private frustrations with his administration’s policies. While Trump’s “drill, baby, drill” mantra and pro-fossil fuel platform won favor during his campaign, anonymous comments from 130 executives across Texas, Louisiana, and New Mexico highlighted chaos from his trade tariffs and unpredictable agenda. Respondents criticized tariffs, particularly a 25% steel tariff expected to slightly reduce demand, as disruptive to an industry reliant on steel for pipelines. With West Texas Intermediate oil prices at $70 per barrel—above the $65 needed for profitable drilling—executives still voiced unprecedented uncertainty, with some threatening to halt production if prices drop. The survey, a key industry pulse, underscored tensions between Trump’s energy rhetoric and the economic realities of his trade policies, surprising analysts like Timm Schneider. [MDN: Suck it up, buttercup. These tariffs won’t last forever. Oh ye of little faith! And hey, what if OUR steel plants ramp back up and produce the steel needed by drillers and pipeline companies? Let’s kick the habit of depending on our enemies (and so-called friends) for key materials like steel that we produced here until a few decades ago. Trump is 100% correct on this.]

U.S. could see return of acid rain due to Trump’s rollbacks
London (UK) The Guardian
The Trump administration’s rollback of pollution protections could lead to a resurgence of acid rain in the US, warns Gene Likens, the scientist who discovered it in North America in the 1960s. Likens expressed alarm over the Environmental Protection Agency’s (EPA) aggressive dismantling of clean air and water regulations, which he fears could reverse decades of air quality improvements. The EPA, under Administrator Lee Zeldin, plans to eliminate or weaken 31 regulations, including those curbing sulfur dioxide emissions from coal plants, a key contributor to acid rain. This deregulation, touted as a way to boost industry, may increase health risks and environmental damage, potentially bringing back smog and acid rain. While coal use has declined, Trump’s push to revive it and cut funding for Likens’ long-term acid rain monitoring project heightens concerns about a return to past environmental crises. [MDN: We laughed right out loud when we read this! Too funny!! The Communist rag The Guardian, a far far far far far left UK publication, says our faces are going to melt off from acid rain because the EPA is rolling back Biden/Obama regulations (very recent regulations) and eliminating waste, fraud, and abuse at the agency. Do these people know how silly they look? The left has become a running joke. They get more hysterical every day, spinning out lies like this one about acid rain returning.]

The U.S. remained the world’s largest liquefied natural gas exporter in 2024
U.S. Energy Information Administration – Today in Energy
In 2024, the US maintained its position as the world’s top LNG exporter, shipping 11.9 billion cubic feet per day (Bcf/d), despite flat growth from 2023 due to outages, limited new capacity, and reduced European demand. Australia and Qatar followed with stable exports of 10.2–10.7 Bcf/d, while Russia and Malaysia exported 4.4 Bcf/d and 3.7 Bcf/d, respectively. Europe remained the primary US LNG destination (53%, 6.3 Bcf/d), though its share dropped as Asia’s rose to 33% (4.0 Bcf/d), led by Japan, South Korea, India, and China. US exports to Europe fell 19% (1.5 Bcf/d), notably to the EU and UK, due to lower consumption and high storage, while exports to Asia and other regions like the Middle East and Latin America grew. New capacity from Plaquemines LNG Phase 1 began in December, but overall US LNG terminal utilization held steady at 104% nominal and 86% peak capacity. [MDN: A good update from the EIA on our LNG status in the world. Click to view some interesting graphs that go with the article.]

Secret Energy Department “hit list” targets renewable energy industry
Popular Information Substack
A collaborative investigation by Popular Information and HEATED reveals a secret “hit list” compiled by the U.S. Department of Energy (DOE) under Energy Secretary Chris Wright, targeting clean energy projects for cancellation. Despite Wright’s confirmation hearing promises to support diverse energy technologies, including renewables, the list includes billions in grants and loans from the Inflation Reduction Act and bipartisan infrastructure law, such as $156 million for long-duration energy storage vital for wind and solar reliability. The DOE aims to submit this list to the Department of Government Efficiency (DOGE) and the Office of Management and Budget, signaling a potential rollback of Biden-era climate initiatives. Additional proposed cuts include $900 million from energy efficiency programs and $760 million from grid modernization efforts, like a $389 million grant for New England offshore wind projects. Critics warn this could delay the renewable energy transition, benefiting fossil fuel interests. [MDN: Great!!! We hope there IS a “hit list” of unreliable renewable projects to defund. What’s lacking in this leftwing Substack blog post is context: These so-called renewable energy projects are boondoggles. Biden corruptly was feeding money to cronies under the guise of grants. We absolutely MUST defund as much of it as possible. If the free market wants to build these idiotic energy technologies, let them! No one is stopping them. What IS being stopped is grotesque amounts of OUR money going to fund them.]

The oil industry takes its critics to court
Washington (DC) Post
On March 27, 2025, The Washington Post reported that U.S. oil and gas executives met with President Donald Trump at the White House, urging him to combat state-level climate Superfund laws, like New York’s, which aims to fine major polluters $3 billion annually for 25 years based on emissions from 2000-2018. These laws, inspired by federal Superfund legislation, seek to hold fossil fuel companies accountable for climate damages, a move the industry opposes, claiming it unfairly targets them over consumers. The American Petroleum Institute and 22 Republican-led states have sued New York and Vermont, arguing these laws overstep federal authority under the Clean Air Act. Executives also raised concerns about broader climate lawsuits accusing them of misleading the public. Trump, aligned with industry interests, was asked to leverage the Justice Department against these state measures, signaling a potential federal rollback of climate accountability efforts. [MDN: New York and other states are trying to STEAL MONEY from private companies claiming those companies caused mythical “climate change.” It is straight-up theft. How does WashPo position such brazen thievery? By saying oil companies are taking “critics” to court! That is journalistic malpractice. Oil companies are fighting for their very lives, fighting against the theft of their money by Democrat-run states. That’s the real story WashPo isn’t telling you.]

Could U.S. natural gas power AI revolution?
Benzinga
A Natural Gas Intelligence report, “AI Rising: How Will Natural Gas Markets Evolve to Fuel the Demand Surge?” highlights how surging AI adoption is straining the U.S. power grid, with data centers driving unprecedented energy demand. The International Energy Agency forecasts a 400 terawatt-hour (TWh) increase in U.S. electricity use by 2027, equivalent to California’s current consumption, while Wood Mackenzie predicts a rise from 4,000 TWh in 2024 to 6,000 TWh by 2050, with data centers potentially consuming 395–660 TWh by 2035—over 10% of total power. Rapid AI growth outpaces renewable energy and infrastructure development, positioning natural gas as a key solution due to its reliable, flexible power supply, essential for 24/7 hyperscale data centers. Patrick Rau of NGI notes that while natural gas will meet much of this demand, the challenge lies in how quickly new gas-fired capacity can be deployed to keep up with the accelerating energy needs. [MDN: Great report by the experts at NGI. You can grab your own copy of the report here.]

The crumbling of net zero in the U.S.
RealClearEnergy
The article argues that the ambitious net-zero emissions goals championed by the Biden administration are faltering as of March 26, 2025. It highlights the November 2024 election as a turning point, where voters rejected plans to phase out fossil fuel-based technologies like gasoline engines and gas-fired power plants, favoring practical energy solutions over ideological ones. The piece critiques the Biden administration’s push for electric vehicles (EVs) and renewable energy, noting persistent issues like limited EV range, insufficient charging infrastructure, and the high cost of replacing gas appliances. It also points to global trends, such as Germany and the UK scaling back their net-zero commitments due to economic and reliability concerns, suggesting the U.S. is following suit. The author asserts that abundant, affordable fossil fuels remain essential, with the Trump administration poised to reverse net-zero policies, prioritizing energy pragmatism over climate targets. [MDN: Net-zero is dead. That’s the bottom line. Thank God.]

Climate change taken off America’s global threat list for the first time in over a decade
UK Independent/Yahoo! News
The article reports that the U.S. has removed climate change from its annual global threat assessment, a shift aligning with the Trump administration’s priorities to downplay climate concerns across federal agencies. Director of National Intelligence Tulsi Gabbard stated the report focused on the most immediate threats, though she denied directing the exclusion of climate change. The article notes that climate change exacerbates extreme weather, sea level rise, disease spread, and displacement, impacting military infrastructure and supply chains. Senator Angus King highlighted its security risks, like mass migration and political unrest, previously acknowledged in 2019 assessments. Critics, including Columbia University’s Climate School, warn of the broader implications, while Gabbard’s past skepticism of climate change as the primary threat—favoring nuclear risks—adds context to the administration’s stance. [MDN: The left just doesn’t know how to deal with reality slapping them in their collective faces. There is no catastrophic, man-made climate change! Deal with it. We get a reprieve from climate change insanity (on the part of our government) for the next four years, hopefully longer.]

INTERNATIONAL

Jereh unveils AI-powered oil and gas innovations at cippe 2025
Jereh Group
On March 27, 2025, Jereh Group showcased groundbreaking AI-powered innovations at the 25th China International Petroleum & Petrochemical Technology and Equipment Exhibition (cippe 2025) in Beijing, themed “Innovating for a Sustainable Future.” The company unveiled advancements in oil and gas, new energy regeneration, offshore engineering, and AI-driven digital transformation, including a next-generation smart coiled tubing control truck that leverages machine learning, real-time diagnostics, and automation for enhanced safety and efficiency. Jereh also presented integrated natural gas solutions through a hybrid physical-digital display, covering exploration, processing, storage, power generation, and LNG applications. Additionally, the group highlighted sustainable technologies for oily waste treatment, lithium battery recycling, and renewable energy equipment recycling, reinforcing its commitment to a circular economy. These innovations aim to set industry benchmarks for efficiency, resource recovery, and environmental compliance, positioning Jereh as a leader in sustainable energy solutions. [MDN: Jereh is a Chinese oilfield services company. What caught our eye about the press release was that Jereh introduced (at the exhibition) what it calls a “revolutionary AI•R FRAC smart fracturing system, the first fully integrated AI-driven solution for fracturing operations.” Watch out…the Chinese love fracking.]

China’s falling LNG imports are a boon for Europe
OilPrice.com
The article highlights how China’s reduced liquefied natural gas (LNG) imports are benefiting Europe amid its energy security struggles. Kpler data shows China’s LNG imports dropped to 4.5 million tons in February 2025, the lowest in five years, due to milder weather, ample gas inventories, slower industrial activity, and a 15% tariff on U.S. LNG in response to Trump’s trade policies. This decline, projected to be 22% lower than the previous year, frees up LNG supply for Europe, which is grappling with low gas inventories and the need for an additional 20 million tons (around 250 cargoes) to restock in 2025. Despite this opportunity, the article warns Europe against complacency, noting potential supply disruptions, competition from other LNG-demanding nations, and the temporary nature of China’s reduced imports, urging Europe to consider long-term strategies like the Japanese model of investing in overseas LNG projects. [MDN: We’d rather have our LNG go to Europe over China any day.]