MDN’s Energy Stories of Interest: Mon, Apr 21, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: Did D.C.’s AG play favorites when awarding Sher Edling a lucrative contract?; Valero announces closure of Bay Area refinery; Puerto Rico needs power, not political lawsuits; $182 million gas pipeline replacement project kicks off in southeast Michigan; NATIONAL: Lee Zeldin is hovering right over the target; DOT spiked Biden-era emissions rule; Green hydrogen, CCS not viable in steelmaking until 2030s; INTERNATIONAL: Spain gets EU approval for €455M hydrogen aid scheme; Russian LNG phaseout makes room for U.S. supplies; Heritage Foundation discusses how low oil may go.
OTHER U.S. REGIONS
Did D.C.’s AG play favorites when awarding Sher Edling a lucrative contract?
Energy in Depth – Climate & Environment
A letter from the American Tort Reform Association, The Foundation for American Innovation, and the Manhattan Institute for Policy Research to the House Committee on Oversight and Government Reform accuses D.C. Attorney General Brian Schwalb of awarding lucrative contingency fee contracts to politically aligned law firms and former employees, raising concerns about the integrity of the district’s legal system. The letter highlights Schwalb’s engagement with Sher Edling, a left-leaning San Francisco firm involved in climate litigation, which has been under congressional scrutiny and whose employees have donated significantly to Democratic campaigns. Critics, including legal experts, argue that such arrangements prioritize political agendas over public interest, exemplified by a climate lawsuit against energy producers that has lingered in courts for nearly five years after a suspiciously expedited contract approval. The use of privately funded Special Assistant Attorneys General further blurs the line between public service and partisan lawfare, undermining transparency and accountability. [MDN: It’s time for our side to aggressively hound people like Brian Schwalb out of office. He is compromised and corrupt. This lawfare crap has to stop and stop now.]
Valero announces closure of Bay Area refinery
RBN Energy
Valero Energy Corporation plans to cease operations at its Benicia refinery in California by April 2026, citing high compliance costs and stringent environmental regulations, including a recent $82 million fine for emissions violations. The closure, part of a broader retreat from California’s challenging regulatory landscape, will reduce the state’s refining capacity by 8-9%, potentially increasing gasoline prices due to California’s reliance on limited in-state refineries and imports. The decision follows a $1.1 billion impairment charge for Valero’s California operations, reflecting strategic reevaluation amid policies like the state’s 2035 ban on gasoline vehicle sales. The shutdown will impact 400 employees and Benicia’s economy, which relies on the refinery for $10 million in annual revenue. While some see potential for the site to transition to renewable fuels, California’s fuel supply chain faces growing strain as refiners like Valero and Phillips 66 exit, highlighting tensions between environmental goals and economic realities. [MDN: Cali is in the process of committing energy suicide. Only when it is too late will the apathetic voters wake up and eject weirdos like Gavin Newsom. Companies like Valero, and Chevron, and other long-time Cali O&G companies are not coming back after they exit the “Golden” State.]
Puerto Rico needs power, not political lawsuits
Forbes
Puerto Rico faces frequent power outages, with recent island-wide blackouts on New Year’s Eve 2024 and during Holy Week 2025, affecting 1.4 million customers and causing economic losses. The article argues that Governor Jenniffer González-Colón’s focus on climate litigation against fossil fuel companies is misguided and hypocritical, given the island’s reliance on oil, gas, and coal for electricity. The author criticizes the governor for prioritizing political lawsuits over addressing the crumbling energy grid, noting that the Puerto Rico Electric Power Authority (PREPA) has been bankrupt for eight years and billions in federal recovery funds remain unspent. Instead of suing energy producers, the governor should stabilize the grid, enforce accountability for private operators, and deploy reliable energy solutions. The lawsuit is seen as a distraction that won’t solve the island’s energy crisis, and the author urges González-Colón to focus on practical leadership to restore power and ensure a resilient energy future. [MDN: The current governor pursuing this lawfare is supposedly a Republican. We seriously doubt her credentials.]
$182 million gas pipeline replacement project kicks off in southeast Michigan
Pipeline & Gas Journal
Consumers Energy has initiated a $182 million Four Cities Metro Pipeline project to upgrade aging natural gas infrastructure in Oakland and Macomb counties, targeting Royal Oak, Clawson, Madison Heights, and Warren. The project involves installing eight miles of new 24-inch pipeline by 2029 to replace 1950s-era systems, ensuring safe and reliable service for over 750,000 homes and businesses. Construction has begun at four metro Detroit intersections, with efforts to minimize disruptions through coordination with local governments. The project, expected to create about 100 annual construction jobs, underscores Consumers Energy’s commitment to modernizing infrastructure for continuous natural gas delivery. Holly Bowers, vice president of natural gas engineering, emphasized the project’s role in maintaining reliable service, while Chris Fultz, vice president of natural gas operations, highlighted the company’s dedication to safety and affordability, promising community engagement to address concerns during construction. [MDN: Good to see local utility companies continuing to invest in gas infrastructure. A wise move.]
NATIONAL
Lee Zeldin is hovering right over the target
Committee For A Constructive Tomorrow
Donald Trump’s return to an “America First” energy policy, emphasizing deregulation and free-market principles, has sparked controversy, particularly over the potential reversal of the EPA’s 2009 Endangerment Finding, which classified carbon dioxide as a pollutant. Critics, including the Environmental Defense Fund and the Center for Biological Diversity, argue that deregulation threatens health and the environment, while supporters, like the CO2 Coalition and physicist Dr. William Happer, assert CO2 is essential for life, not a pollutant, and that current warming reflects natural climate cycles. The Endangerment Finding, enabled by a 2007 Supreme Court ruling, underpins anti-fossil fuel regulations, which Trump’s EPA, led by Lee Zeldin, aims to dismantle as part of 31 actions to boost American energy. These reforms seek to lower costs for families, restore congressional oversight, and resist international climate agreements like the Paris Accord, aligning with the 250th anniversary of American independence in 2026. [MDN: We’ve written about the so-called Endangerment Finding and the need to overturn it. Godspeed to the Trumpsters in getting it done.]
DOT spiked Biden-era emissions rule
Commercial Carrier Journal
The U.S. Department of Transportation, under Secretary Sean Duffy, has repealed a Biden-era greenhouse gas (GHG) emissions regulation that required state transportation departments to measure and set declining carbon dioxide emissions targets for federally supported highways, as announced in a final rule published in the Federal Register. The 2023 rule, which had not yet been implemented, was criticized for imposing costs without clear benefits or legal authority, creating bureaucratic barriers to federal funding, and potentially disrupting highway expansion projects, which could lead to increased traffic congestion and shipping costs. This deregulatory action aligns with President Donald Trump’s commitment to overturn policies deemed harmful from the Biden-Harris Administration, emphasizing safety, efficiency, and economic prosperity. While the repeal removes mandatory GHG measurements, state DOTs and MPOs can still voluntarily assess CO2 emissions. The EPA is also reconsidering related heavy-duty vehicle emissions standards, including parts of the Biden-era Clean Trucks Plan. [MDN: Another smart move by the Trumpsters. The more we can expunge the lunacy of the Biden years, the better. His failed administration didn’t do a single thing right.]
Green hydrogen, CCS not viable in steelmaking until 2030s
RBN Energy
ArcelorMittal’s 2024 Sustainability Report, published on April 17, indicates that transitioning steelmaking to carbon-capture technology and green hydrogen is not economically feasible before 2030, according to CEO Aditya Mittal. Despite a nearly 50% reduction in Scope 1 and Scope 2 emissions since 2018, and producing 25% of its steel via direct reduced iron (DRI) and electric arc furnace (EAF) methods—which cut carbon intensity by 75% compared to traditional blast furnaces—the company faces challenges. Green hydrogen and carbon capture, utilization, and storage (CCS) are not yet viable due to high costs and underdeveloped infrastructure. Mittal emphasized that supportive policies are needed to address these economic barriers. The report concludes that meeting the company’s 2030 carbon intensity target is increasingly unlikely, as green hydrogen remains impractical and CCS is still in planning, delaying transformative ironmaking advancements. [MDN: Hydrogen for steelmaking likely won’t EVER be “economically feasible.”]
INTERNATIONAL
Spain gets EU approval for €455M hydrogen aid scheme
Rigzone
The European Commission has approved a €455 million Spanish state aid scheme to support renewable hydrogen production, as announced on April 21, 2025. The initiative, part of the European Hydrogen Bank’s “Auctions-as-a-Service” framework, aims to bolster Spain’s green hydrogen sector by funding projects with a total electrolyzer capacity of 345 MW, capable of producing up to 221,000 tonnes of renewable hydrogen. The aid will be distributed through a competitive bidding process managed by the European Climate, Infrastructure, and Environment Executive Agency (CINEA), ensuring compliance with EU criteria for renewable fuels of non-biological origin (RFNBO). Beneficiaries must contribute to additional renewable electricity deployment to support hydrogen production. This scheme aligns with similar programs in Germany, Austria, and Lithuania, reinforcing the EU’s commitment to decarbonization and sustainable energy. The approval follows Spain’s participation in the Hydrogen Bank’s 2024/2025 auction, concluded in Q1 2025. [MDN: So Spain will spend €455 million (roughly $455 million) to produce hydrogen at 4X the normal cost by using unreliable renewable energy, and there won’t be any customers for the hydrogen when it gets produced. Yes, the very definition of insanity.]
Russian LNG phaseout makes room for U.S. supplies
Bloomberg/Rigzone
The European Union, led by European Council President Antonio Costa, is set to release a road map on May 6 to phase out Russian fossil fuel purchases, encouraging European companies to source more liquefied natural gas (LNG) from the United States. This follows Russia’s reduction of natural gas exports to Europe after the 2022 Ukraine invasion, which caused significant fuel and electricity price surges. The EU, which reduced its reliance on Russian gas from over 40% to about 19% last year, aims to further decrease imports, creating market opportunities for U.S. LNG suppliers, the EU’s third-largest gas provider. The road map will provide tools to end long-term Russian contracts, potentially using trade measures like quotas or tariffs, which require only a qualified majority for adoption. This aligns with ongoing EU-U.S. trade talks, where the U.S. pushes for increased energy exports to avoid tariffs, though decisions rest with companies based on market conditions. [MDN: The EU is all talk and no action. They are spineless. While we appreciate the sentiment that the EU is about to shut down Russian O&G purchases, including LNG, we will only believe it when we see it. They have been talking this (empty) talk of dumping Russian energy for YEARS, since Putin’s illegal invasion of Ukraine. And for YEARS they’ve done precisely nothing about it.]
Heritage Foundation discusses how low oil may go
Rigzone
In an exclusive Rigzone interview, Diana Furchtgott-Roth from The Heritage Foundation predicted that Brent oil prices are unlikely to drop below $55 per barrel for long in 2025, though she noted the market’s volatility. She highlighted that price declines could stem from increased U.S. production or reduced demand due to a potential recession, with forecasts hinging on macroeconomic conditions. Despite healthy U.S. job growth, the Blue Chip consensus anticipates slower economic growth due to new tariffs. Recent reports indicate Brent prices have already hit a four-year low of $60.90 per barrel, driven by substantial tariff announcements and OPEC+ decisions to unwind supply cuts faster than expected. Analysts from Standard Chartered noted record net selling by money managers, while JPMorgan and Goldman Sachs revised Brent forecasts downward to $66 and $58-$66 for 2025, respectively, citing trade policy uncertainty and shifting OPEC strategies. [MDN: Prices in the $60s for oil are absolutely perfect. We love them in the $60s! Dropping into the mid-$50s is not the end of the world, either.]