MDN’s Energy Stories of Interest: Wed, Apr 16, 2025 [FREE ACCESS]
MARCELLUS/UTICA REGION: US regulators deny rehearing on co-located Amazon data center energy pact; OTHER U.S. REGIONS: FERC approves storage expansion at Mississippi Hub; Midcontinent energy execs peg $3.80 as necessary for profitability; NATIONAL: EPA Deputy Administrator McIntosh says regulatory overhaul coming; NGOs went wild under Joe Biden; AI power demand is remaking our energy ecosystem; INTERNATIONAL: Oil dips as tariff tensions linger; Goldman Sachs warns of sub-$40 oil under one scenario; Understanding the competitive landscape for China’s LNG market; EU plan to end Russian oil and gas imports due out in May.
MARCELLUS/UTICA REGION
US regulators deny rehearing on co-located Amazon data center energy pact
Reuters
U.S. energy regulators at the Federal Energy Regulatory Commission (FERC) denied a rehearing request to reconsider a decision blocking an Amazon data center in Pennsylvania from increasing its power usage, which is directly connected to Talen Energy’s Susquehanna nuclear power plant, according to government filings. This decision stems from concerns that the co-located data center, which diverts electricity from the broader grid, could impact power reliability and raise costs for the public. The arrangement, part of Big Tech’s push to secure massive electricity for AI data centers, aims to bypass grid connection delays, boosting the tech industry’s AI expansion and shares of independent power companies like Talen. FERC had previously rejected Talen’s request to supply beyond 300 megawatts, despite the facility’s potential to use nearly 1,000 megawatts. Talen, unsurprised by FERC’s ruling, plans to appeal in the Fifth Circuit, while FERC explores broader co-location regulations. [MDN: This is a developing situation, that data centers from companies like Amazon, Facebook, Google, and others seek to co-locate next to power plants and buy directly from those plants. In some cases, it would mean a reduction in available electricity for the local grid. FERC opposes that. Amazon and Talen plan to litigate. We’ll see how this plays out.]
OTHER U.S. REGIONS
FERC approves storage expansion at Mississippi Hub
Enstor Gas
Enstor Gas has received approval from the Federal Energy Regulatory Commission (FERC) for its Mississippi Hub Expansion Project, allowing a significant increase in the natural gas storage capacity at its underground facility in Simpson County, Mississippi, according to a Business Wire article. The project will add three storage caverns, each with a 10 billion cubic feet (Bcf) capacity, tripling the facility’s total capacity to 56.3 Bcf. The expansion, set to be in-service by 2028, has secured a long-term contract for its first cavern with a Kinder Morgan subsidiary, enhancing reliability for Gulf Coast and Southeast markets. The facility connects to major pipelines, including Southern Natural Gas and Transcontinental Gas Pipe Line. Enstor’s CEO, Paul Bieniawski, emphasized the project’s role in meeting growing U.S. LNG export and gas-fired power generation demands, strengthening energy security. [MDN: The interesting thing about this FERC-approved project to expand natural gas storage in Mississippi is that the mighty Transco pipeline connects to and uses storage at this facility. Transco flows M-U molecules, meaning more storage at this facility for our molecules when needed.]
Midcontinent energy execs peg $3.80 as necessary for profitability
NGI’s Daily Gas Price Index
A Federal Reserve Bank of Kansas City survey indicates that natural gas prices in the Tenth District, which includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, western Missouri, and northern New Mexico, are approaching levels needed for profitable energy activity, averaging $3.80/MMBtu, with $5.10/MMBtu required for significant increases. Current Henry Hub prices are slightly below that at $3.55, with projections of $3.612 for summer and $4.356 for winter 2025/26. Crude oil requires $65/bbl for profitability and $85/bbl for substantial growth, compared to current West Texas Intermediate prices above $61/bbl. First-quarter energy activity rose modestly, marking the first increase since Q4 2022, though revenues and profits declined. Expectations remain positive, but 62% of firms anticipate higher costs due to recent Trump administration trade policy changes, with mixed demand outlooks. Uncertainty around tariffs, high demand, and inflation are pushing development costs, while foreign-sourced inputs are expected to slightly decrease over time. [MDN: An interesting Fed survey result that says $3.80/MMBtu is the magic number to see profitablity and an increase in drilling. At $5.10 things really get rockin’ and rollin’.]
NATIONAL
EPA Deputy Administrator McIntosh says regulatory overhaul coming
Chemical Processing
The U.S. Environmental Protection Agency (EPA), under Administrator Andrew Macintosh, is planning a significant regulatory overhaul to streamline environmental policies and boost economic growth, as outlined in an April 15, 2025, article from Chemical Processing. Macintosh aims to revise or eliminate numerous regulations, focusing on reducing compliance costs for industries like chemical manufacturing while maintaining environmental protections. Key initiatives include revising the Clean Air Act’s National Ambient Air Quality Standards, updating the Toxic Substances Control Act (TSCA) to expedite chemical approvals, and easing Clean Water Act permitting processes. The EPA also plans to leverage advanced technologies, such as AI, to enhance regulatory efficiency and transparency. Industry stakeholders have mixed reactions, with some welcoming the potential for innovation and others expressing concerns about weakened environmental safeguards. The overhaul is expected to face legal challenges and requires public comment periods, potentially delaying implementation. [MDN: Of course, the lunatic left will launch lawfare against any changes that its minions have made in previous administrations, particularly during the dark Biden years. That’s a given. And Team Trump is ready for them. That’s the good news.]
NGOs went wild under Joe Biden
Energy Security and Freedom
The article from Tom Shepstone’s excellent blog site quotes from DataRepublican and argues that under President Joe Biden’s administration, non-governmental organizations (NGOs) have significantly expanded their influence, often aligning with government policies to promote progressive agendas, particularly in the energy and environmental sectors. Biden’s policies, including the Inflation Reduction Act, have funneled billions to NGOs, enabling them to push anti-fossil fuel initiatives and climate-focused regulations, which are economically damaging and ideologically driven. The article highlights specific NGOs, like the ClimateWorks Foundation, which act as extensions of government agendas, bypassing legislative oversight. The article also critiques the Biden administration’s suppression of dissent through censorship and ties to Big Tech, framing NGOs as part of a broader “censorship-industrial complex.” It’s time to defund these organizations and reverse Biden’s energy policies, which threaten economic stability and free speech. [MDN: Fantastic post connecting the dots on Big Green and the corrupt Bidenistas. We must expose the corruption to the light of day and, where appropriate, prosecute violators and ensure this NEVER happens again.]
AI power demand is remaking our energy ecosystem
RealClearEnergy
The article from RealClearEnergy discusses how the surging electricity demands of artificial intelligence (AI), driven by data centers and cloud computing, are reshaping the U.S. energy ecosystem while exposing vulnerabilities to cyberattacks, particularly from China. It highlights projections that data center electricity consumption could triple by 2030, accounting for 7.5% of U.S. electricity use, necessitating a robust energy infrastructure. This AI-driven demand offers an opportunity to modernize the grid but also makes it a prime target for cyber threats, with China identified as a significant risk due to its advanced cyber capabilities and strategic interests. The article suggests that the U.S. must prioritize grid security, leveraging the AI boom to build a resilient energy system. It emphasizes the need for proactive measures to protect critical infrastructure against potential disruptions, ensuring energy reliability amidst growing geopolitical and technological challenges. [MDN: Isn’t it sad we live in a world where our enemies, like China, threaten us with cyber attacks? That is the reality, and we must prepare for it.]
INTERNATIONAL
Oil dips as tariff tensions linger
Bloomberg/Rigzone
Oil prices dipped slightly, with West Texas Intermediate futures falling 0.3% to around $61 a barrel, as traders reacted to ongoing US tariff disputes and forecasts of a persistent global oil surplus. The lack of progress in US-EU trade talks, coupled with the Trump administration’s decision to maintain most tariffs, heightened fears of a global recession that could dampen energy demand, particularly in major crude consumers like the US and China. The International Energy Agency cut its oil demand forecast for the year by nearly a third, predicting an oversupply into 2026, exacerbated by OPEC+’s unexpected move to ramp up production. Both OPEC and the US Energy Information Administration lowered their consumption outlooks, while analysts, including those at Energy Aspects and HSBC, slashed price forecasts, citing weaker demand and increased OPEC+ output as key drivers of a looming 2025 surplus. Brent crude also fell 0.3% to $64.67 a barrel. [MDN: It’s fun to watch the radical left like Bloomberg reporters lose their minds. Oil “dipped” by all of 0.3%—three-tenths of one percent, meaning the dip is NOTHING. Will Bloombergers blame every slight drop in the price of oil on mean, nasty Trump’s tariffs for the next 3.5 years? Probably. In doing so, they lose the rest of their already-meager credibility. No wonder nobody trusts mainstream news, like Bloomberg, anymore.]
Goldman Sachs warns of sub-$40 oil under one scenario
Rigzone
Goldman Sachs analysts predict a potential drop in Brent oil prices to below $40 per barrel by late 2025 in an extreme scenario involving a global GDP slowdown and a complete unwind of OPEC production cuts, according to a report sent to Rigzone. This is one of four downside scenarios, with the base case forecasting Brent averaging $63 per barrel in 2025 and $58 in 2026, assuming no U.S. recession and modest OPEC+ supply increases. Other downside scenarios include a U.S. recession or global GDP slowdown, projecting Brent at $61/$53 or $58/$47 in 2025/2026, respectively. Risks include rising OECD stocks or reduced storage in contango markets. An upside scenario, driven by a U.S. trade policy de-escalation, could see Brent at $67/$64 in 2025/2026. The report contrasts with BMI’s forecast of $68/$71 and J.P. Morgan’s $66/$57 for 2025/2026, while the EIA predicts $67.87/$61.48. [MDN: Careful! The sky is falling! We laugh at these kinds of so-called predictions. Anything could, maybe, possibly happen. That’s life. You deal with it. We seriously doubt oil will dip below $40 a barrel ever again. More leftist fearmongering.]
Understanding the competitive landscape for China’s LNG market
Institute for Energy Economics and Financial Analysis
China’s liquefied natural gas (LNG) market, while appearing robust due to its potential to replace coal, faces significant challenges from competing energy sources and geopolitical factors, according to an IEEFA report. Despite China becoming the world’s largest LNG importer in 2021 and signing numerous contracts post-Ukraine invasion, LNG struggles against cheaper domestic coal, rapidly expanding renewables, and pipeline gas imports, which cost significantly less—domestic gas at ~US$5/MMBtu versus LNG at over US$13/MMBtu. Renewables have outpaced gas in reducing coal’s share in power generation, with wind and solar quadrupling to 16% while gas remains at 3%. Geopolitical tensions, particularly with the U.S., and flexible U.S. LNG contracts allow Chinese firms to resell volumes abroad, potentially exacerbating a global LNG oversupply. With domestic production and pipeline imports meeting much of the 428bcm gas demand in 2024, China’s LNG growth may stagnate, impacting global markets. [MDN: Even if we don’t trade with China, that country’s impact on our LNG market can be felt. This extensive article helps readers understand how.]
EU plan to end Russian oil and gas imports due out in May
Reuters
The European Commission will unveil a detailed strategy in May 2025 to phase out Russian oil and gas imports by 2027, following delays due to uncertainties around U.S. President Donald Trump’s planned tariffs, which may impact EU-U.S. energy trade talks. Initially slated for release in March, the roadmap, now set for May 6, aims to end the EU’s reliance on Russian fossil fuels in response to Moscow’s 2022 invasion of Ukraine. Despite a significant drop in Russian pipeline gas deliveries since 2022, the EU increased its imports of Russian liquefied natural gas (LNG) in 2024, with Russia supplying 19% of the bloc’s total gas and LNG. The Commission has not detailed specific measures but analysts suggest tariffs on Russian gas imports. The EU is also considering increased LNG purchases from the U.S., though concerns persist about over-reliance on American supplies amid Trump’s trade negotiations. [MDN: Just one comment: We’ll believe it when we see it. The Euro weenies have blustered and pontificated since the war began, and have done relatively little to end their dependence on Russian natural gas. We suspect this will be another instance of political posturing with no real intent to end its addiction to dirty Russian gas.]