Other Stories of Interest: Thu, Mar 27, 2025

OTHER U.S. REGIONS: Legislation to define natural gas, propane as ‘clean energy’ heads to Indiana governor; Federal law bars Alaska from shipping its own natural gas within the state; NATIONAL: DOE withdraws, postpones multiple appliance energy efficiency rules; WTI nears $70 as supplies tighten; How AI data centers are reshaping America’s electric grid; Earth has limited natural resources to support the generation of electricity; INTERNATIONAL: Europe ready to return to Russian gas if sanctions end; Government bill to lift fracking moratorium in Nova Scotia clears third reading; Is Shell interested in buying out/merging with BP?

OTHER U.S. REGIONS

Legislation to define natural gas, propane as ‘clean energy’ heads to Indiana governor
Elkhart (IN) WVPE PBS
On March 26, 2025, Indiana’s legislature passed a bill redefining natural gas and propane as “clean energy,” sending it to Governor Eric Holcomb for approval, as reported by WVPE. The legislation, backed by Republican lawmakers, aims to align state energy policy with federal standards that include these fuels under clean energy tax credits, despite opposition from Democrats and environmentalists who argue it undermines true renewable energy efforts like wind and solar. Proponents, including Sen. Blake Doriot, assert it ensures regulatory consistency and supports energy reliability, while critics, like Rep. Maureen Bauer, warn it could weaken environmental protections and mislead the public about emissions. The bill also mandates state agencies to treat these fuels as clean energy, potentially boosting their use in Indiana, a state reliant on fossil fuels. This move reflects broader debates over energy classification amid shifting national policies under the Trump administration. [MDN: Good move by Indiana! Welcome to the natgas-is-clean-and-green club.]

Federal law bars Alaska from shipping its own natural gas within the state
Straight Arrow News
Alaska, despite its vast natural gas reserves, faces an energy crisis due to the century-old Jones Act, a federal law complicating in-state gas transport. The Act mandates U.S.-built, -owned, and -operated ships for domestic shipping, but no compliant LNG tankers exist, blocking Alaska from moving gas from the North Slope to population centers like the Railbelt, which relies on Cook Inlet’s dwindling supplies—projected to falter by 2027 and deplete by the mid-2030s. State Sen. Robert Myers has proposed a resolution urging Congress for a waiver to allow foreign-built tankers, warning that without it, nearly half of Alaskans could face heating cost spikes or shortages. This restriction, rooted in the 1920 Merchant Marine Act, highlights a paradox where Alaska’s abundant resources remain inaccessible locally, exacerbating an imminent shortfall as the Trump administration pushes deregulation elsewhere. [MDN: The Jones Act must go!!! We need relief, now. Hopefully, Trump will see the light on this.]

NATIONAL

DOE withdraws, postpones multiple appliance energy efficiency rules
Utility Dive
On March 25, 2025, the U.S. Department of Energy (DOE), under the Trump administration, announced the withdrawal of four appliance efficiency standards—covering electric motors, ceiling fans, dehumidifiers, and external power supplies—and postponed three others, intensifying efforts to dismantle the agency’s efficiency program. Secretary of Energy Chris Wright framed the move as restoring “freedom of choice” by cutting regulations that he claims raise costs and limit options for consumers. This aligns with Trump’s deregulatory stance and the Project 2025 platform, which advocates eliminating such standards entirely, despite the Energy Policy and Conservation Act mandating reviews every six years. Critics, including efficiency advocates, warn of “uncharted territory,” arguing that weakening these rules undermines energy savings and environmental goals. The decision reflects a broader policy shift prioritizing deregulation over established conservation measures, sparking debate over its long-term impacts on consumers and sustainability. [MDN: Once again, the Trump DOE is undoing the egregious overreach by the Biden DOE. This is nothing more than undoing bad regulations that stifle choice and frustrate Americans.]

WTI nears $70 as supplies tighten
Bloomberg/Rigzone
On March 26, 2025, oil prices rose after a U.S. Energy Information Administration (EIA) report revealed a significant drop in crude and gasoline inventories, indicating tighter short-term supplies, according to Rigzone. West Texas Intermediate (WTI) for May delivery increased 0.9% to $69.65 per barrel, nearing $70, driven by expectations of supply constraints despite earlier demand concerns. Brent for May settlement rose 1.1% to settle at $73.79. The report shifted market sentiment, with commodity trading advisers moving to a net long position in Brent, while WTI saw reduced short positions. However, oil remains over 10% below its mid-January peak due to U.S. tariffs and retaliatory measures injecting market volatility. Traders noted that OPEC+ output policies and Trump’s trade and sanctions strategies could further influence prices downward. This uptick marks a reversal from a bearish start to the month, bolstered by bullish options trading as Trump intensifies pressure on Iranian oil exports, heightening geopolitical supply risks. [MDN: These prices are perfectly fine. We like it in the $60s, but low $70s is fine, too.]

How AI data centers are reshaping America’s electric grid
Forbes
On March 26, 2025, Forbes published an article by Robert Rapier detailing how the explosive growth of AI is driving a surge in electricity demand, reshaping the U.S. electric grid and creating both opportunities and challenges for energy investors. The piece highlights that AI data centers, particularly in regions like Northern Virginia’s “Data Center Alley” and Texas, are pushing utilities to their limits, with demand projected to rise from 4% of U.S. electricity in 2023 to 9% by 2030. This necessitates massive grid upgrades, often delayed by regulatory and permitting issues, while companies like Google, Microsoft, and Amazon target carbon-free energy goals by 2025-2030, favoring long-term power purchase agreements (PPAs) with renewables. However, the article warns of risks, including potential delays and the volatility of unregulated utilities, contrasting their flexibility with the steady returns of regulated ones, as AI’s power needs strain an aging infrastructure amid broader electrification trends. [MDN: While Big Tech has voiced its preference for “green” power, reality is setting in, and they are increasingly redefining natural gas-fired power as green. Reality has a funny way of slapping you in the face.]

Earth has limited natural resources to support the generation of electricity
America Out Loud News
On March 24, 2025, America Out Loud News published an op-ed by Ronald Stein, P.E., and Dr. Cleveland M. Jones, arguing that Earth’s finite natural resources cannot indefinitely support escalating electricity demands, particularly from renewables like wind and solar, which they claim are inefficient and resource-intensive. They assert that mining for materials like lithium and rare earths for batteries and turbines depletes reserves, increases energy costs, and harms the environment, while fossil fuels remain abundant and reliable. The authors criticize climate change narratives as speculative, suggesting global warming may be natural and beneficial, and advocate for nuclear power as a sustainable alternative, urging a halt to renewable subsidies. They warn that over-reliance on intermittent renewables threatens energy security as demand rises, especially under policies like those of the Trump administration, which they imply favor deregulation but may not fully address resource limits, calling for a pragmatic reassessment of energy strategies. [MDN: More common sense. Stein and Jones make a great point—that “renewables” are not renewable and not elastic enough to meet rising energy demand.]

INTERNATIONAL

Europe ready to return to Russian gas if sanctions end
Bloomberg/Rigzone
On March 26, 2025, leaders of major energy trading firms, including Mercuria Energy Group, Vitol Group, Gunvor Group, and Trafigura Group, expressed readiness to resume business in Russia if Western sanctions are lifted, as reported by Rigzone. Speaking at the FT Commodities Global Summit in Lausanne, executives like Mercuria’s Marco Dunand and Vitol’s Russell Hardy highlighted potential market opportunities, anticipating a possible surge in Russian commodity flows to Europe that could lower prices in gas and aluminum markets. However, they cautioned that re-entering Russia would depend on a peace deal ending the Ukraine conflict, a process they believe could be protracted. Gunvor’s Torbjorn Tornqvist emphasized a cautious approach despite past losses from Russia’s 2022 invasion, while Trafigura’s Jeremy Weir noted commodities’ role in fostering peace. This reflects a strategic wait-and-see stance amid shifting geopolitical dynamics under the Trump administration’s push for deregulation. [MDN: Europe and Asia have learned NOTHING from Putin’s invasion of Ukraine. They will get what they deserve.]

Government bill to lift fracking moratorium in Nova Scotia clears third reading
Canadian Broadcasting Corporation
On March 25, 2025, Nova Scotia’s legislature passed Bill 6, lifting long-standing bans on uranium mining and exploration and the moratorium on onshore fracking, marking a significant policy shift under Premier Tim Houston’s Progressive Conservative government. Houston justified the move as a way to capitalize on natural resources and boost financial self-sufficiency amid U.S. trade tensions, despite opposition from environmentalists, citizens, and the Assembly of Nova Scotia Mi’kmaw Chiefs, who criticized the lack of consultation. Critics, including the NDP and Green Party leaders, argued the rushed legislation ignored climate concerns and public input, with a 2014 expert panel’s unfinished recommendations on fracking safety cited as evidence of unresolved risks. Proponents, like the Mining Association, see economic potential in uranium, tied to global nuclear demand. The bill’s passage followed a contentious public forum, highlighting deep divisions over balancing economic growth with environmental and Indigenous rights. [MDN: Wow! We think if Nova Scotia, as liberal as it is, can pass a new bill to unblock fracking, why can’t New York State? We’re not getting our hopes up, but it does offer us some small glimmer of hope that maybe, just maybe, things can eventually change here, too.]

Is Shell interested in buying out/merging with BP?
Bloomberg
On March 25, 2025, Shell Plc CEO Wael Sawan, in a Bloomberg TV interview, expressed a cautious approach to acquisitions, emphasizing that pursuing a major deal could distract from the company’s core operations, according to Bloomberg. While declining to directly address speculation about a potential bid for rival BP Plc, Sawan noted that “the bar is high” for any transaction, signaling a preference for smaller, bolt-on acquisitions focused on upstream production rather than large-scale mergers. This stance comes as Shell aims to boost investor returns by reinforcing its position as the world’s leading liquefied natural gas trader, a strategy outlined earlier that week. Sawan’s comments reflect a broader industry trend of balancing growth with operational focus amid volatile energy markets and Trump administration policies favoring deregulation. Shell’s leadership remains open to strategic opportunities but prioritizes stability over transformative risks in its M&A approach. [MDN: If Shell does pursue and buy BP, that would have to be the largest O&G deal in history. According to our quick check of O&G companies by ranking, Shell is currently #4 in the world, worth $220 billion. BP is #8, worth $106 billion. A combo would put them in the #3 position behind ExxonMobil, which is worth $490 billion. The world’s #1 O&G company is Saudi Aramco, worth $1.7 trillion.]