MDN’s Energy Stories of Interest: Fri, Apr 4, 2025 [FREE ACCESS]

OTHER U.S. REGIONS: North Carolina looks to repeal GHG law; NYC wins in court re banning natgas in new buildings; Texas oil and gas industry continues to dominate job growth; NATIONAL: BKV appoints Dilanka Seimon as company’s first Chief Commercial Officer; U.S. Energy Sec. Wright says climate change alarmism has hurt energy dev; Gas producers appear ready to ease off the brakes; Why the U.S. shouldn’t be importing electricity from Canada; Trump cancels Biden grants to China-tied think tank behind war on gas stoves; INTERNATIONAL: Oil prices dive on Trump tariffs and OPEC surprise; The great unwinding begins at OPEC+ amid Trump tariff hikes; Why European natural gas prices are falling.

OTHER U.S. REGIONS

North Carolina looks to repeal GHG law
Fortune
In 2021, North Carolina’s Republican lawmakers and Democratic Governor Roy Cooper collaborated to pass a groundbreaking energy law in the South, aiming to cut power plant greenhouse gas emissions by 70% from 2005 levels by 2030 and achieve carbon neutrality by 2050. However, as of April 3, 2025, the state’s GOP-controlled legislature is pushing to repeal the 2030 target, arguing it would allow Duke Energy, the dominant utility, to use cheaper power sources and moderate rate hikes needed for the 2050 goal. Critics, including environmental groups, argue this benefits Duke Energy financially, especially after it leveraged the law for easier rate increases. The repeal, passed by the Senate in March, awaits House approval and could face a veto from incoming Governor Josh Stein. This shift reflects changing federal priorities, though the 2050 carbon neutrality target remains intact, highlighting tensions between cost, climate goals, and utility profits. [MDN: NC needs to repeal this very bad law. Otherwise, residents can plan on obscenely high electricity rates in coming years. This is the same pattern we’re seeing even in “blue” states: They all passed idiotic GHG laws and now, faced with the stark reality those laws produce stratospheric price hikes, they are getting repealed or ignored.]

NYC wins in court re banning natgas in new buildings
Wired
In a significant victory for cities aiming to reduce fossil fuel use, a federal judge dismissed a lawsuit from plumbing and building trade groups challenging New York City’s ban on natural gas in new buildings. This ruling, reported on March 29, 2025, marks the first judicial decision to counter a 2023 9th US Circuit Court of Appeals ruling that struck down Berkeley, California’s pioneering gas ban. Unlike Berkeley’s approach, which prohibited gas piping, NYC’s law mandates electric appliances like induction stoves and heat pumps, effective from 2024 for smaller buildings and 2027 for taller ones. Legal experts suggest this decision strengthens the legal basis for various local electrification policies, potentially reviving ambitious climate actions stalled by prior setbacks. Despite an appeal planned by the trade groups, this ruling could influence ongoing legal battles over similar policies nationwide, encouraging cities to pursue decarbonization efforts. [MDN: Very unfortunate. Of course, this means NYC is about to begin bleeding population. Once that starts, once Big Banks, Wall Street, etc. decide to set up in other cities, it’s lights out for NYC and NY State. When the bleeding begins, it won’t/can’t be reversed. How enormously sad for NY. The Democrats have finally killed NYC.]

Texas oil and gas industry continues to dominate job growth
Washington (DC) Examiner
The Texas oil and natural gas industry continues to lead national job growth, as reported by The Center Square, citing data from the Texas Workforce Commission and the U.S. Department of Labor. In February, the sector saw 10,172 active unique job postings, including 3,337 new ones, according to the Texas Independent Producers and Royalty Owners Association (TIPRO). This job surge aligns with Texas breaking multiple records in 2024 for production, job creation, and tax contributions. The state’s overall employment grew by 182,300 jobs from February 2024 to February 2025, outpacing the national growth rate by 0.1%. Governor Greg Abbott attributes this success to Texas’s pro-growth policies and skilled workforce, positioning the state as a hub for innovation and business investment. The oil and gas sector’s dominance underscores Texas’s critical role in the U.S. energy landscape, reinforcing its economic strength. [MDN: Go, Texas! The shale industry (and oil & gas in general) are key sectors of employment in the M-U, too.]

NATIONAL

BKV appoints Dilanka Seimon as company’s first Chief Commercial Officer
BKV Corporation
BKV Corporation, a Denver-based energy firm, announced on April 3, 2025, the appointment of Dilanka Seimon as its first Chief Commercial Officer, effective immediately, to bolster its commercial midstream, gas marketing, and new product teams while leveraging its carbon capture, utilization, and sequestration (CCUS) portfolio amid rising power demand. Seimon, with over 20 years of energy sector experience, has held key roles at EnLink Midstream, Energy Transfer, and BHP, driving midstream asset development, low-carbon initiatives, and large-scale contract negotiations. CEO Chris Kalnin praised Seimon’s expertise in gas, power, and carbon markets, noting his strategic vision will enhance BKV’s upstream, midstream, and power market presence while focusing on long-term value. Seimon, a Harvard Business School graduate, expressed excitement about scaling BKV’s carbon-neutral natural gas production. BKV, a top U.S. natural gas producer, aims to deliver sustainable energy through its integrated business model. [MDN: BKV owns major assets in the Pennsylvania Marcellus Shale.]

U.S. Energy Sec. Wright says climate change alarmism has hurt energy dev
Colorado Public Radio
On April 3, 2025, U.S. Energy Secretary Chris Wright visited the National Renewable Energy Laboratory (NREL) in Golden, Colorado, praising its innovations in solar, wind, and clean-energy technologies while dismissing climate change as a crisis. A former oil and gas executive, Wright argued that labeling it a crisis fuels destructive political theater, though he acknowledged it as a real phenomenon. His visit coincided with the Trump administration’s consideration of budget and staff cuts at the Department of Energy, which oversees NREL and other labs. Despite potential reductions, Wright emphasized the lab’s role in advancing energy solutions. He highlighted his February directive to boost energy production, including LNG exports, reversing Biden-era policies. NREL’s director, Martin Keller, expressed optimism about accelerated construction under Wright’s leadership. Wright’s stance reflects a shift toward energy dominance, balancing fossil fuels with select renewables like nuclear and geothermal, amid ongoing debates over climate priorities and federal funding. [MDN: Chris Wright offers a balanced, reasoned approach to so-called “climate change.” He thinks it’s happening, but he doesn’t think it’s catastrophic. His view understandably drives the insane left even more insane. It’s fun to watch!]

Gas producers appear ready to ease off the brakes
RBN Energy
Following President Trump’s inauguration, the U.S. oil and gas industry faced calls to ramp up production, yet major exploration and production (E&P) companies adopted a cautious stance in their 2025 plans, prioritizing cash flow and shareholder returns over aggressive growth. Capital spending by 37 leading U.S. E&Ps is projected to dip slightly to $62 billion in 2025, a 1% decrease from 2024’s $62.4 billion, reflecting a shift that began during the pandemic’s commodity-price collapse when firms slashed budgets to regain financial stability. Despite a record $120 billion in 2024 acquisitions boosting output by 7%, E&Ps resisted significant capex increases, with exploration funding dropping to 8% of total spending. While oil-focused producers remain conservative amid $70/bbl prices, gas-weighted companies plan a 3% capex rise to $11 billion, driven by rebounding gas prices, though overall production growth is expected at 5%, largely from acquisitions and efficiency gains. [MDN: The good news here is that RBN’s analysis of announced 2025 spending by gas-focused drillers indicates an increase in activity. All (except one) of the gas-focused drillers tracked by RBN has major operations in the M-U.]

Why the U.S. shouldn’t be importing electricity from Canada
RealClearEnergy
The article argues that the U.S. should reduce its reliance on Canadian electricity imports due to growing domestic energy demands and vulnerabilities in the current energy relationship. It highlights how the U.S., despite being a net energy exporter, imports significant electricity from Canada, particularly hydropower, to states like New York and New England. However, with surging demand from AI data centers and industrial reshoring, coupled with Canada’s potential emission caps and threats to cut energy exports amid tariff disputes, this dependency poses risks. The piece critiques Canada’s hydropower as less “clean” than claimed due to methane emissions and ecological damage, urging the U.S. to prioritize domestic energy solutions like nuclear, natural gas, and renewables. It warns that over-reliance on Canada could undermine U.S. energy security and economic stability, especially as global energy dynamics shift and domestic grid reliability falters. [MDN: Agree 100%. We need to stop importing electricity from Canada. Let them stew in their own juice.]

Trump cancels Biden grants to China-tied think tank behind war on gas stoves
Washington (DC) Free Beacon
The Trump administration’s Department of Energy has canceled two climate grants totaling $6.8 million that were awarded by the Biden administration to the Rocky Mountain Institute (RMI), a left-leaning climate think tank with ties to China. The grants, valued at $5.3 million and $1.5 million, funded a green energy retrofit project in Massachusetts and research on electric vehicle carshare programs, respectively. RMI, which has an office in Beijing and collaborates with Chinese government entities, has faced scrutiny for its connections, prompting congressional investigations. The cancellations are part of a broader effort by the Trump administration, led by Energy Secretary Chris Wright, to review and rescind Biden-era green energy spending. RMI confirmed the cancellations, warning that such actions could hinder clean energy progress, while critics like Jason Isaac of the American Energy Institute praised the move, calling RMI a “left-wing activist group” misusing taxpayer funds. [MDN: Good! Defund these (expletive deleted). It’s about time. Why are taxpayers helping to attack themselves via these grants? And why hasn’t RMI been brought up on foreign Espionage Act charges?]

INTERNATIONAL

Oil prices dive on Trump tariffs and OPEC surprise
Bloomberg/Rigzone
Oil prices plummeted over 6%—the steepest drop since July 2022—after President Donald Trump imposed aggressive tariffs on major crude importers like China and India, raising fears of a global economic slowdown and reduced energy demand. Concurrently, OPEC+ announced an unexpected increase of over 400,000 barrels per day in output starting next month, tripling its prior plan and reversing years of supply constraints. This dual blow sent West Texas Intermediate below $67 and Brent near $70 a barrel. While Trump avoided direct oil market disruptions, such as curbs on Canada or Mexico, the trade war’s impact and OPEC+’s shift—partly aimed at pressuring quota violators like Kazakhstan—intensified bearish sentiment. Analysts warn of recession risks and stagflation, though lower prices might ease inflation and support Trump’s goal of cheaper oil, potentially offsetting losses from his planned sanctions on Iran and Venezuela. [MDN: Contrary to Bloomberg’s cheerleading and assertion that Trump has caused a worldwide economic disaster, oil is still trading in the same mid-$60s to mid-$70s range. Nothing to see here; move along. WTI for May delivery fell 6.6% to settle at $66.95 a barrel in New York. Brent for June settlement declined 6.4% to settle at $70.14 a barrel.]

The great unwinding begins at OPEC+ amid Trump tariff hikes
Forbes
On April 3, 2025, OPEC+ announced a plan to unwind 2.2 million barrels per day (bpd) of voluntary oil production cuts over 18 months starting April 1, citing “healthy market fundamentals and a positive market outlook.” This decision, detailed in a Forbes article by David Blackmon, coincides with U.S. President Donald Trump’s unveiling of sweeping new “Liberation Day” tariffs on April 2, aimed at igniting a global trade war, prompting a 6% drop in crude oil prices and a 3% decline in U.S. market futures. Eight OPEC+ nations, including Saudi Arabia and Russia, will initiate a significant 411,000 bpd increase in May, though the group emphasized flexibility to adjust based on market conditions. The move follows Trump’s tariff escalation, which could disrupt global economic stability, potentially undermining the optimistic fundamentals OPEC+ cited, and casting doubt on Trump’s “drill, baby, drill” ambitions if oil prices remain low long-term. [MDN: There’s a pretty easy fix to OPEC’s actions: Trump should tariff oil imports from Saudi Arabia (maybe 25%). That would instantly fix their behavior.]

Why European natural gas prices are falling
Investing.com
European natural gas prices have dropped to their lowest level in four weeks. The benchmark Dutch TTF contract is currently trading below 40 euros per megawatt hour. This decrease in prices has been influenced by a selloff in crude oil, according to analysts at ANZ Research. The analysts believe the market’s reaction is likely due to expectations of an increased supply. This potential surge in supply could be a result of higher tariffs on Chinese exports, which may divert more Liquified Natural Gas (LNG) to Europe. Meanwhile, storage concerns are also affecting the region. Current EU inventories are only filled up to 34.35%, indicating a challenging start to the storage injections season. In early trade, TTF prices fell by 1.5% to 38.60 euros per megawatt hour. [MDN: Mixed signals. Prices are dropping, yet storage is low and needs more. You would think that would be a signal for prices to increase, not decrease. Increasingly the price in Europe influences the price here, which is why we keep an eye on it.]