MDN’s Energy Stories of Interest: Wed, Apr 9, 2025 [FREE ACCESS]
MARCELLUS/UTICA REGION: PA lawmaker touts carbon capture bill; OTHER U.S. REGIONS: Shell expands Gulf of America leadership position with Dover development; CF Industries announces joint venture with Japan on low-carbon ammonia plant; Chevron to lay off 600 workers in California as it prepares corporate move to Houston; Time for NJ to rethink participation in RGGI carbon tax; In Democrat New Mexico, anti-O&G legislation doesn’t pass; NATIONAL: WTI falls below $60 amid trade war escalation; Trump says EU will have to buy energy from US; U.S. production of all types of coal has declined over the past two decades; Why a plane-size machine could foil a race to build gas power plants; US oil, gas producers expected to tighten capital budgets amid tariff actions; INTERNATIONAL: OilXCoin gets regulatory approval for security token backed by O&G; Brent crashes to 4 year low; Mexico explores boosting fracking to cut reliance on U.S. natural gas.
MARCELLUS/UTICA REGION
PA lawmaker touts carbon capture bill
Williamsport (PA) Sun-Gazette
A state lawmaker from Greater Williamsport, PA Senator Gene Yaw, serving five north-central Pennsylvania counties, is pushing a carbon capture bill in 2025 to address critical environmental and energy issues, as reported by the Williamsport Sun-Gazette on April 8, 2025. The legislation, championed by Yaw (chairman of state Senate Environmental Resources & Energy Committee), aims to establish carbon capture hubs and enhance electric grid reliability through increased generation focus. Yaw argues that a robust economy is essential for environmental progress, linking economic strength to sustainable energy solutions. This initiative reflects a broader strategy to tackle statewide challenges like grid stability and emissions reduction, emphasizing practical measures to balance economic and ecological needs. The bill’s progress is seen as a step toward integrating advanced technologies into Pennsylvania’s energy framework, potentially setting a precedent for other regions. [MDN: Yaw is doing great work for PA. He has been a strong supporter of the Marcellus industry, which is big in Lycoming County where he lives.]
OTHER U.S. REGIONS
Shell expands Gulf of America leadership position with Dover development
Shell
Shell Offshore Inc., a subsidiary of Shell plc, has strengthened its position in the Gulf of America with the Dover development, achieving first oil production through a tieback to the Appomattox platform, announced on April 8, 2025. Discovered in 2018 within the Mississippi Canyon area, approximately 170 miles southeast of New Orleans, the project targets an estimated 40 million barrels of oil equivalent in recoverable resources. Fully owned and operated by Shell, Dover leverages existing infrastructure, showcasing operational efficiency and collaboration with partners like C-Innovation and Bordelon Marine. This milestone enhances Shell’s leadership in the region, where it produces over 300,000 barrels of oil equivalent daily and holds a significant leasehold. The development aligns with Shell’s strategy to maximize value from deep-water assets, reinforcing its long-term commitment to sustainable energy production in the Gulf, a key area since its first well there in 1948. [MDN: We thought it was neat that Shell, a UK-based company, is now calling the Gulf the Gulf of America (and not Mexico). It’s an indicator that Trump is winning and winning big.]
CF Industries announces joint venture with Japan on low-carbon ammonia plant
CF Industries
CF Industries Holdings, Inc., a leading ammonia producer, has partnered with JERA Co., Inc., Japan’s largest energy company, and Mitsui & Co., Inc., a global trading firm, to form a joint venture aimed at constructing the world’s largest low-carbon ammonia plant in Louisiana. Announced on April 8, 2025, the $4 billion facility at CF Industries’ Blue Point Complex will use autothermal reforming technology to produce 1.4 million metric tons of ammonia annually, capturing over 95% of CO2 emissions—approximately 2.3 million metric tons per year—for sequestration by 1PointFive. CF Industries holds a 40% stake, JERA 35%, and Mitsui 25%, with production expected to start in 2029. The project, eligible for Section 45Q tax credits, supports global demand for low-carbon ammonia in energy and industrial applications, aligning with efforts to decarbonize and enhance energy security, particularly in Japan. [MDN: Natural gas, including (likely) natural gas from the M-U, will feed this $4 billion plant. The notable thing here is that Japan (and many other countries) are now investing huge sums of money here, in this country, instead of building elsewhere. Why? Trump’s tariffs, which are working like a charm.]
Chevron to lay off 600 workers in California as it prepares corporate move to Houston
Los Angeles (CA) KABC-TV
Chevron, a major oil and gas company, is laying off approximately 600 employees in San Ramon, California, as it relocates its corporate headquarters to Houston, Texas. Announced on April 8, 2025, the layoffs are part of a broader restructuring effort that includes shifting all corporate operations to Houston over the next five years, a process that began with the company’s leadership transition in 2024. The job cuts, affecting various departments, represent about 25% of Chevron’s San Ramon workforce and are set to occur over the next two years, with further reductions anticipated. The move to Texas, where Chevron already employs 7,000 people, is driven by the state’s business-friendly environment. While corporate functions shift, positions supporting California operations will remain in San Ramon. This relocation aligns Chevron with other Fortune 500 companies moving to Houston, reflecting a strategic pivot amid operational changes. [MDN: This is squarely California’s own fault. The state attacks fossil fuel companies like Chevron, and they have had enough. Cali is rapidly becoming a third-world country with more in common with the banana republics in South America than with the other 49 U.S. states.]
Time for NJ to rethink participation in RGGI carbon tax
NJ Spotlight News
New Jersey’s participation in the Regional Greenhouse Gas Initiative (RGGI), a coalition of 11 states aimed at reducing CO2 emissions through a cap-and-trade system, is under scrutiny as the state legislature seeks solutions to rising energy costs disproportionately affecting low- and middle-income communities. While RGGI has historically driven the closure of coal plants and fostered cleaner energy sources like nuclear, renewables, and natural gas in New Jersey, a recent TCR report highlights unintended consequences: the state’s involvement now increases CO2 emissions by 2.7 million short tons annually across the PJM electricity market, equivalent to adding over 532,000 vehicles to the road. This “leakage” occurs as RGGI imposes a tax-like cost on New Jersey’s efficient gas generators, making them less competitive than dirtier coal plants in non-RGGI states like Pennsylvania, raising electricity costs by $1.16 billion while only generating $270 million in auction revenue. Critics argue that reconsidering RGGI could lower bills, reduce emissions, and support in-state generation. [MDN: It’s time for NJ to dump its participation in the RGGI carbon tax scheme. People and businesses are leaving the state in droves due to high energy costs. Ever notice how Democrat governors/legislatures ruin the states they run?]
In Democrat New Mexico, anti-O&G legislation doesn’t pass
Albuquerque (NM) KUNM Public Radio
In New Mexico’s recent legislative session, multiple bills aimed at regulating the oil and gas industry, a major economic driver responsible for about a third of the state’s revenue, failed to pass despite Democratic control of the Legislature. Proposals included increasing royalty rates on state land leases from 20% to 25%, a change not seen since 1970, and a significant bill to ban freshwater use in oil and gas production, which was stalled in committee. Environmental advocates expressed disappointment over the lack of progress on climate-related measures, while industry supporters argued that the current framework balances economic benefits and environmental concerns. Governor Michelle Lujan Grisham, who has prioritized emissions reductions, may call a special session to address unfinished business, including public safety and potentially oil and gas reforms. The session highlighted the ongoing tension between economic reliance on fossil fuels and the push for stronger environmental regulations in the state. [MDN: Look at that! Multiple anti-O&G bills failed in the Democrat-controlled legislature of New Mexico. Miraculous!]
NATIONAL
WTI falls below $60 amid trade war escalation
Bloomberg/Rigzone
On April 8, 2025, West Texas Intermediate (WTI) crude oil prices dropped below $60 per barrel, settling at $59.58 after a 1.9% decline, hitting a four-year low amid escalating U.S.-China trade tensions. The price slump followed new tariffs imposed by President Donald Trump, stoking fears of a global recession and reduced oil demand. Brent crude also fell, settling at $63.03 per barrel after a 2% drop. Analysts attribute the decline to recession concerns and an anticipated increase in OPEC+ production, despite earlier speculation of a tariff pause that was later denied by the White House. Goldman Sachs revised its forecasts, predicting WTI at $58 and Brent at $62 by December 2025 under various scenarios, including a potential U.S. recession. The oil market’s volatility reflects broader economic uncertainty, with WTI futures swinging in a $5 range before closing near $61, down 16% over three sessions. [MDN: One word response: Good! We are delighted that oil is this low. It won’t be long before it rises again. In the meantime, enjoy the lower prices. Our drillers can still turn a profit. They may not like these thinner profits, but they need to suck it up and be patriots. We’re playing the long game where America is no longer screwed over by friends and foes alike. Trump is solving that particular problem in record time.]
Trump says EU will have to buy energy from US
Reuters
On Monday, U.S. President Donald Trump said that selling energy to the European Union would be a key focus as his administration seeks to eliminate a trade deficit with the bloc. “The European Union’s been very bad to us,” Trump told reporters at the White House, accusing European nations of not buying enough U.S. goods. “They’re going to have to buy their energy from us because they need it, and they’re going to have to buy it from us. They can buy it, we can knock off $350 billion in one week.” [MDN: We love how Trump tells the Euro weenies what they will do, and do with a fake smile plastered on their arrogant faces!]
U.S. production of all types of coal has declined over the past two decades
U.S. Energy Information Administration – Today in Energy
In 2023, U.S. coal production reached 578 million short tons (MMst), a significant drop from its 2008 peak, as reported in the latest Annual Coal Report, with declines continuing into 2024 due to rising mining costs, stringent environmental regulations, and competition from alternative energy sources. Coal is classified by carbon content into anthracite, bituminous, subbituminous, and lignite, with mining primarily occurring in the Appalachian and Illinois Basins for bituminous, the Powder River Basin for subbituminous, and the Midwest and Texas for lignite. Bituminous coal, used for electricity and steelmaking, saw 51 MMst exported as metallurgical coal in 2023, while subbituminous and lignite are mainly sold to power plants, the latter near mines due to its low heat content. Production is projected to fall to 483 MMst in 2025 and 467 MMst in 2026, driven by competition from natural gas and renewables, per the Short-Term Energy Outlook. [MDN: The free market has certainly played a role in King Coal’s demise—with natural gas-fired power generation replacing a lot of coal generation. However, severe regulations under first Barack Obama and later Dementia Joe (who drooled into his oatmeal with his staff actually ran the country) have played a big role in coal’s decline. Trump is trying to reverse that.]
Why a plane-size machine could foil a race to build gas power plants
New York (NY) Times
The Trump administration and energy executives predict a natural gas boom driven by data centers’ power demands, but building gas power plants faces significant hurdles. Securing giant turbines, which can cost hundreds of millions and weigh as much as an airplane, now involves waits of three to four years—double the time from a year ago—while construction costs have soared, making solar and battery alternatives cheaper in some regions. The AI-driven surge in electricity needs is straining suppliers, with GE Vernova investing heavily to boost turbine production amid rising demand. However, delays and costs mean new gas plants started today might not operate until 2030, while solar projects could finish in three years. Despite optimism from figures like Energy Secretary Chris Wright, who sees gas meeting half of U.S. electricity needs, experts predict renewables will grow faster, highlighting a disconnect between ambitious plans and practical limits. [MDN: There is a shortage of turbines for gas-fired power plants. Perhaps more companies should start building them?]
US oil, gas producers expected to tighten capital budgets amid tariff actions
S&P Global Commodity Insights
The Trump administration’s tariffs, implemented on April 2, 2025, along with retaliatory measures from other economies, are anticipated to deter capital spending by US oil and natural gas producers, who are concerned about rising drilling costs and macroeconomic challenges impacting demand, analysts say. Oil prices have plummeted, with NYMEX WTI futures dropping to $60.78/b by April 4 and declining further by April 7, exacerbating a bearish outlook already projected at sub-$70/b WTI for 2025 by the US Energy Information Administration. This has led to expectations of restricted spending and limited production growth, with some exploration and production companies (E&Ps) potentially facing negative free cash flow if prices persist near $60/b. Capital expenditures were already set to decrease by 2.5% from 2024, with organic production growth estimated at just 1%. While oil faces pressure from OPEC dynamics, natural gas may fare better due to anticipated demand from new LNG projects and a significant portion of production tied to associated gas, which could decline with falling oil prices. [MDN: What we have is a lot of speculation on the part of so-called experts. Our advice is to wait and see what companies (drillers) actually do, not what “analysts” say they will or won’t do.]
INTERNATIONAL
OilXCoin gets regulatory approval for security token backed by O&G
OilXCoin
OilXCoin, a pioneering digital asset backed by oil and gas reserves, has achieved a significant milestone with the Financial Market Authority (FMA) in Liechtenstein approving its security prospectus on April 8, 2025. This regulatory green light positions OilXCoin as the first token of its kind to merge the stability of tangible oil and gas assets with blockchain technology, offering investors exposure to both traditional energy markets and the cryptocurrency space. The approval aligns with a projected $16 trillion tokenized asset market by 2030, highlighting OilXCoin’s potential as a resilient, growth-focused investment. With a capped token supply to ensure scarcity, the upcoming Initial Coin Offering (ICO) is set for April 23, 2025. Industry experts, including Glenn McColpin, Head of Oil & Gas at OilXCoin, emphasize the token’s unique value amid rising U.S. drilling activity and a shifting energy investment landscape, marking it as a leader in asset-backed digital investments. [MDN: We don’t understand much about bitcoins and tokens and such, but what we do understand is that Euro weenies are floating a bitcoin based on oil and gas! And that’s notable, given their aversion to fossil fuel energy.]
Brent crashes to 4 year low
Rigzone
On April 9, 2025, Brent crude oil prices plummeted to a four-year low, settling at $62.82 per barrel after a $1.39 drop, driven by escalating U.S.-China trade tensions and recession fears. The decline, mirrored by a $1.12 fall in U.S. crude to $59.58, reflects investor panic as President Trump’s new tariffs threaten global economic stability, raising the likelihood of a recession in the world’s two largest economies. Analysts at Stratas Advisors noted that while OPEC+ is expected to cautiously manage supply cuts, non-OPEC production growth will remain limited, yet demand risks have surged due to the trade war. Goldman Sachs predicts Brent could hit $62 by December 2025, potentially dropping to $40 in an extreme scenario with a global slowdown and OPEC+ oversupply. This oil price crash signals broader market turmoil, with investors bracing for further economic fallout as trade conflicts intensify. [MDN: While the Euro weenies are weeping and wailing and gnashing their teeth and cursing Donald Trump, we are celebrating! We love oil at these prices. It makes the cost of energy lower for everyone, which will help grow the economy (and make goods cheaper for everyone, goods manufactured in the good ole US of A). The hair-on-fire left is screaming doom and gloom because of the tariff “war.” Guess who’s winning that war? DJT, that’s who. China will very soon give in and drop its tariffs and (hopefully) reign in its theft of our intellectual property, a situation that’s been going on for the last 40-50 years. And Trump will have fixed it in two months.]
Mexico explores boosting fracking to cut reliance on U.S. natural gas
OilPrice.com
Mexico is exploring an expansion of domestic fracking to reduce its heavy reliance on U.S. natural gas imports amid strained trade relations and tariff tensions, as reported by the Financial Times. Currently, 72% of Mexico’s natural gas demand is met by U.S. imports, primarily from the Permian and Eagle Ford basins, a dependency that has tripled over the past decade while domestic production has declined. The government, led by President Claudia Sheinbaum, is engaging with private sector companies to boost shale gas output, particularly in the Burgos Basin, despite the ruling party’s historical opposition to fracking. This policy shift follows previous efforts under President Enrique Peña Nieto to open shale basins, which were later canceled by Andrés Manuel López Obrador. Discussions remain preliminary and may not result in concrete action, but the move reflects Mexico’s push for energy independence in response to U.S. trade policies under President Trump. [MDN: Isn’t that special? For years (at least 10 years) the Commies that have run Mexico declared fracking was a Satanic evil that they would never allow. Now? Fracking is cool and Mexico will frack it’s own rich deposits of shale, thank you very much. HYPOCRITES…and LIARS.]