MDN’s Energy Stories of Interest: Fri, May 30, 2025 [FREE ACCESS]
MARCELLUS/UTICA REGION: Appalachian natural gas production climbs while Northeast demand stagnates; Our natural gas advantage built by rural hands; OTHER U.S. REGIONS: New York’s monstrous new wind farm threatens environmental disaster; Japanese utility set to sign LNG supply deal from U.S. Lake Charles project; NextDecade announces LNG deal with JERA from Rio Grande LNG Train 5; NATIONAL: Chevron exec says data center gas plans “moving very quickly”; Energy Secretary Chris Wright argues climate change isn’t a crisis; Why many are likely to soon be caught very natural gas short; Biden may not have known about detrimental climate policies of his administration; INTERNATIONAL: New study to measure real-world hydrogen emissions; Oil falls on weak US data and OPEC output fears.
MARCELLUS/UTICA REGION
Appalachian natural gas production climbs while Northeast demand stagnates
RBN Energy
While demand for natural gas was unchanged for the week ended May 27 relative to the prior week, gas production in Appalachia surged, averaging 36.8 Bcf/d. Gas supply was especially high on Friday, when it reached a record for daily production at 37.1 Bcf/d. That record for production was set on the same day that trading took place for the four days from Saturday through Tuesday, as the weekend was extended because of the Memorial Day holiday. This means that most of the weekly average cash price was determined on a day with extremely high production, and cash prices in the production region were correspondingly low. On the demand side, Northeast demand averaged 15.7 Bcf/d. Power demand fell by 0.5 Bcf/d, but this growth was canceled out by Res/Comm demand increasing 0.3 Bcf/d and Industrial demand increasing 0.2 Bcf/d. With Northeast demand stagnating while supply increased, outflows were up week-on-week, including a 0.5 Bcf/d jump in net exports to Canada from the region. [MDN: The above is a teaser from RBN Energy. The consultancy issues a weekly report on activity in the Appalachian region, but you must be a paying subscriber. For those in the industry, it’s likely worth the price.]
Our natural gas advantage built by rural hands
The Center Square
In rural Pennsylvania, the article highlights the region’s historical role as an energy powerhouse, transitioning from coal to natural gas and now eyeing blue hydrogen as the next economic driver. Leveraging the state’s vast natural gas reserves and existing infrastructure, blue hydrogen—produced from natural gas with carbon capture—promises to revitalize industries like steel, cement, and trucking while creating jobs for welders, drivers, and tradesmen. The article emphasizes the importance of local control, property rights, and community engagement to ensure that the economic benefits of hydrogen development stay local. With two federally funded hydrogen hubs and tax incentives like 45V and 45Q, Pennsylvania is poised to lead the hydrogen economy, but the article warns against bureaucratic delays and policy uncertainty that could cede opportunities to competitors like China or other states. It calls for clear, community-focused policies to sustain Pennsylvania’s energy legacy and secure prosperity for its rural communities. [MDN: The op-ed was written by Jim Gregory, the Executive Director of the Conservative Energy Network, a rural PA landowner, and former Conservative State House Representative for PA’s 80th District. We’re not sure we share Gregory’s enthusiasm for hydrogen energy. Yes, by all means, let’s use natgas to produce hydrogen—but only if there’s actually a market for it. We haven’t see a big market (yet) for hydrogen.]
OTHER U.S. REGIONS
New York’s monstrous new wind farm threatens environmental disaster
London (UK) The Telegraph
The Trump administration briefly halted the Empire Wind project, a major offshore wind farm off New York’s coast, citing rushed approvals and inadequate interagency consultation under the Biden administration, but reversed the decision after backlash from New York politicians. Developed by Equinor ASA, the project, approved in November 2023, aims to deliver 810 megawatts of electricity to New York City, contributing to the Biden-era goal of 30 gigawatts of offshore wind by 2030. Construction, valued at $2.5 billion, began with rock installations around turbine bases. Critics, including local residents and Bonnie Brady of the Long Island Commercial Fishing Association, argue the project, involving 3.2 billion pounds of rock and pile-driving 180-foot monopoles, threatens marine habitats, endangered species like the North Atlantic right whale, and the fishing industry. The administration’s initial pause reflected concerns over wind power’s economic and environmental value, as well as its aesthetic and noise impacts, which have fueled voter backlash. [MDN: Trump traded this idiotic project for two natural gas pipelines. He probably shouldn’t have allowed the windmill project, but we’re happy to see the pipelines move forward (if indeed they do move forward).]
Japanese utility set to sign LNG supply deal from U.S. Lake Charles project
OilPrice.com
Kyushu Electric Power, a Japanese utility, has signed its first long-term U.S. LNG deal with Energy Transfer for up to 1 million metric tons of liquefied natural gas per year from the Lake Charles LNG project in Louisiana, marking a 20-year supply agreement set to begin in 2030. This deal diversifies Japan’s energy imports and enhances Kyushu’s procurement flexibility, as the contract is on free-on-board terms, allowing adjustments in LNG receipt timing or sales to other companies based on demand. The Lake Charles project, which involves converting an existing import facility into an export one, is fully permitted and leverages abundant natural gas from the Henry Hub. Energy Transfer is targeting a final investment decision by year-end, having secured 10.5 MTPA of its 16.5 MTPA target through multiple offtake agreements. This move aligns with U.S. efforts to expand LNG exports amid global energy security demands. [MDN: Another excellent sign that this project will proceed. M-U molecules flow to the Lake Charles area and will no doubt flow to this facility when/if it gets built.]
NextDecade announces LNG deal with JERA from Rio Grande LNG Train 5
NextDecade Corporation
NextDecade Corporation has signed a 20-year sale and purchase agreement (SPA) with JERA, Japan’s largest power generator and a prominent LNG market leader, for the supply of 2.0 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from Train 5 at its Rio Grande LNG Facility. The agreement, announced on May 29, 2025, stipulates that JERA will purchase the LNG on a free-on-board basis at a price linked to the Henry Hub index, contingent upon a positive Final Investment Decision (FID) for Train 5. Matt Schatzman, NextDecade’s Chairman and CEO, highlighted the strong commercial momentum for the Rio Grande LNG project, which supports the progression toward a positive FID for Train 5. The FID is subject to securing appropriate commercial agreements, an engineering, procurement, and construction contract, and sufficient financing to build Train 5 and its associated infrastructure. [MDN: Yet another new LNG deal with Japan. Excellent news!]
NATIONAL
Chevron exec says data center gas plans “moving very quickly”
Axios
Chevron is rapidly advancing its initiative to build natural gas-fired power plants to directly supply data centers, with final agreements with hyperscalers expected soon, according to Jeff Gustavson, president of Chevron New Energies. The oil major aims to capitalize on the surging energy demands of data centers, particularly those driven by AI and machine learning, by developing off-grid power solutions. These plants, primarily powered by natural gas, are designed to provide reliable, dedicated energy to data centers, bypassing traditional grid connections. Chevron’s partnership with GE Vernova is set to develop up to 4 gigawatts of power capacity across the U.S. The company is focusing on states with favorable regulatory environments, with Texas highlighted as a key location due to its supportive policies. This move aligns with Chevron’s broader strategy to invest in lower-carbon technologies while leveraging its natural gas expertise to meet the tech industry’s growing energy needs. [MDN: This is an interesting move by both Chevron and Exxon (the two largest U.S.-based drillers). They are moving into the power generation space, supplying the molecules and, in this case, the power plants to generate electricity. Is this is the future model for other Big Oil companies?]
Energy Secretary Chris Wright argues climate change isn’t a crisis
National Public Radio
Energy Secretary Chris Wright, a former Colorado oil and gas executive, argues that climate change is not a crisis, despite acknowledging global warming, as he leads the Department of Energy, which is tasked with developing alternative energy sources. A self-described “climate realist,” Wright, who built his fortune in fracking technology, visited the National Renewable Energy Laboratory in Golden, Colorado, where research focuses on renewables like wind and solar. His stance contrasts with the Biden administration’s emphasis on decarbonization, as Wright believes the climate crisis narrative is overstated and has criticized policies aimed at reducing fossil fuel use. His views align with President Trump’s agenda to boost fossil fuel production, drawing criticism from environmental groups like the Natural Resources Defense Council, who argue his leadership undermines the Department’s mission to promote cleaner energy. Wright’s appointment signals a shift toward prioritizing traditional energy sources over renewable energy initiatives. [MDN: Chris Wright is the sane adult in the room, in contrast to the “sky is falling” radicals who insist we’re toasting the Earth into a cinder by using fossil energy. A majority of Americans recognize the distinction. Wright has been a breath of fresh air in his post.]
Why many are likely to soon be caught very natural gas short
Oil & Gas 360
The article from Oil & Gas 360, authored by Michael Smolinski, predicts a looming natural gas shortage due to increasing electricity demand and constrained supply growth. In March, U.S. electricity generation rose 3.2% year-over-year to 11.030 billion kilowatt-hours per day, driven by economic growth, but natural gas generation fell 0.377 billion kilowatt-hours per day as coal generation increased by 0.347 billion kilowatt-hours per day, offsetting the decline. Natural gas inventories, already low, would be significantly lower without coal’s contribution, exacerbated by colder weather increasing demand. The article highlights that natural gas production has stagnated due to reduced drilling (99 rigs last week, down from 160 in 2023) and long lead times for new infrastructure, despite policy shifts favoring fossil fuels. This supply-demand imbalance, coupled with forecasts of a colder winter, suggests a bullish outlook for natural gas prices, potentially catching many unprepared. [MDN: We keep reading articles like this predicting a coming shortage. We keep waiting for prices to rise instead of fall. We’re still waiting! We bring you this blurb to remind you there are those who are predicting a rise in gas prices relatively soon as inventories are expected to fall short of demand. Keep a lookout.]
Biden may not have known about detrimental climate policies of his administration
Power the Future
The article questions whether President Joe Biden was personally aware of eight major executive actions that significantly altered U.S. energy policy, as he never publicly addressed them in speeches, press conferences, or videos. These actions include banning offshore and Arctic drilling, invoking emergency powers to promote solar manufacturing, creating a Climate Change Support Office, mandating federal agencies to assess climate-related financial risks, committing the government to net-zero emissions by 2050, and prioritizing clean energy for AI data centers and AmeriCorps alumni hiring. Despite their profound impact on energy producers, workers, and consumers, contributing to inflation and job losses, Biden’s silence raises concerns about whether these policies were driven by unelected staffers or activist groups using his autopen. The article demands transparency on Biden’s involvement and highlights Power The Future’s ongoing investigation into the origins of these policies, emphasizing the need for accountability in executive decision-making. [MDN: We must get to the bottom of the autopen scandal. This is FAR bigger than the Watergate scandal of the 1970s. We had a mentally diminished person in the White House, and his staff was using a machine to sign his name to things he wasn’t (or not capable of being) aware of. People need to go to jail.]
INTERNATIONAL
New study to measure real-world hydrogen emissions
Offshore Energy
A new international research initiative, led by the Environmental Defense Fund, aims to measure real-world hydrogen emissions from operating infrastructure in North America and Europe, addressing critical gaps in understanding hydrogen’s environmental impact. The study, involving collaboration with over a dozen partners including the U.S. Department of Energy and Gas Technology Institute, will collect data from hydrogen production, storage, and transport facilities to quantify emissions and assess their climate implications. Hydrogen is often touted as a clean energy solution, but its leakage can contribute to greenhouse gas effects, potentially undermining its environmental benefits. By deploying advanced measurement technologies across various sites, the project seeks to provide accurate data to inform policy, improve industry practices, and ensure hydrogen’s role in decarbonization is sustainable. The initiative, launched on May 27, 2025, is expected to deliver findings that could shape global hydrogen strategies and enhance accountability in the energy transition. [MDN: Well, lookie at this. We thought hydrogen was as pure and clean as the wind-driven snow. Absolutely no emissions of any kind. But it seems there is! And now there’s a serious research effort to measure those emissions and how they contribute to mythical global warming.]
Oil falls on weak US data and OPEC output fears
Bloomberg/Rigzone
Oil prices fell as weak U.S. economic data and rising supply concerns outweighed positive sentiment from a court ruling blocking Trump’s tariffs. West Texas Intermediate dropped 1.5% to $60.94 per barrel, and Brent fell 1.2% to $64.15, following reports that OPEC+ plans to increase output at its upcoming meeting, though the extent remains undecided. The U.S. economy contracted early in 2025, dampening commodity demand, despite an earlier rally spurred by a trade court’s decision to halt tariffs, including those on China, a major crude importer. Analysts, including Daniel Ghali from TD Securities, noted that additional OPEC+ supply could strain markets, with algorithmic selling likely to pressure prices further. Since mid-January, oil has trended lower amid Trump’s tariff policies, which have raised fears of reduced global growth and commodity demand. Additionally, wildfires in Alberta threaten 5% of Canada’s crude output, adding to market uncertainties. [MDN: Contrary to the doom and gloomers’ pronouncements, everything is fine. The economy is performing better than it did under Biden. Oil is still trading in the $60s. Life is good. Ignore the media.]