MDN’s Energy Stories of Interest: Thu, May 22, 2025 [FREE ACCESS]

MARCELLUS/UTICA REGION: It’s time to “build, baby, build” in the Marcellus; OTHER U.S. REGIONS: Moore signs two energy bills as June rate hikes loom; NATIONAL: Chubb drops $1.5B natural gas terminal policy; How to frac a modern shale well and boost capital efficiency; Why Ohio has a say on California’s gas car ban; Strong European demand pushes U.S. LNG exports up by 20%; INTERNATIONAL: Re-elected Shell CEO, asked about BP, says bar for deals is high; European Commission awards $1B in green hydrogen subsidies; Market skepticism surrounds Mexico’s ambitious plans to boost natural gas supply.

MARCELLUS/UTICA REGION

It’s time to “build, baby, build” in the Marcellus
Marcellus Shale Coalition
The article highlights the critical need for new pipelines in the U.S., particularly in New York and New England, where unprecedented energy demand, high electricity costs, and reliability issues are prompting leaders to reconsider their opposition to energy infrastructure. These regions face severe energy constraints, with natural gas prices in New England spiking nearly three times the national average during winter due to insufficient pipeline capacity. The article emphasizes Pennsylvania’s potential to lead in energy production, leveraging its abundant natural gas, skilled workforce, and industrial base, but stresses that supportive policies and consistent leadership are essential to enable infrastructure development. Revived projects like Constitution and Northeast Supply Enhancement signal renewed industry interest, yet require streamlined permitting and proactive advocacy. The piece calls for a pragmatic energy policy to ensure affordability and reliability, urging Pennsylvania to champion infrastructure as a foundation for economic growth and energy security, rather than a divisive issue. [MDN: This post encourages PA, in particular, to get off the sidelines and support new pipeline infrastructure projects. Here, here!]

OTHER U.S. REGIONS

Moore signs two energy bills as June rate hikes loom
Maryland Matters
On May 21, 2025, Maryland Governor Wes Moore signed two significant energy reform bills into law, described as the most substantial energy affordability package in decades, just weeks before anticipated June rate hikes. The Next Generation Energy Act aims to boost in-state power generation and battery storage while limiting utility spending of ratepayer funds to curb costs. The Renewable Energy Certainty Act establishes uniform siting standards for commercial solar farms, overriding some local zoning restrictions. Despite these reforms, concerns linger due to looming rate increases driven by a record-breaking PJM electricity auction. Supporters, including Maryland PIRG, praise the bills for prioritizing consumer protections and safety over gas system expansion, potentially saving Marylanders millions. However, environmental groups have mixed reactions, particularly over provisions that could expedite natural gas plants, though amendments bolster energy storage and limit incineration funding. The bills’ success hinges on future Public Service Commission efforts to mitigate rate hikes. [MDN: Enviro nuts don’t have to worry. Nobody is going to build a new gas-fired plant in Maryland. One of the bills signed by Gov. Moore jams big, ugly, environmentally destructive solar farms down the throats of its rural residents, so urban dwellers can live in the fantasy world that they’re somehow saving the planet (yet experience none of the negatives of solar energy). Get out of blue states like Maryland while you still can!]

NATIONAL

Chubb drops $1.5B natural gas terminal policy
PropertyCasualty360
Activist groups have been applying pressure on insurance companies to bail on coverage for projects that they feel are worsening climate change. It appears that pressure may be working, as documents obtained by the Rainforest Action Network (RAN) show Chubb no longer insures the Calcasieu Pass Liquefied Natural Gas (LNG) terminal in Louisiana. In February, RAN published a report claiming an investigation revealed which insurers provided coverage for the project. The list included Chubb subsidiary ACE American Insurance Company, which RAN says previously had a $1.5 billion primary insurance policy for the terminal. [MDN: It’s time to stop doing ALL business with Chubb. Only when we hit these companies hard in the pocketbook do they listen. Right now, wacko leftists have their ear. We need to clear up who they listen to. Boycott Chubb Insurance.]

How to frac a modern shale well and boost capital efficiency
Forbes
The Forbes article by Ian Palmer discusses advancements in hydraulic fracturing, focusing on the shift toward simultaneous fracking of multiple wells to enhance capital efficiency in shale oil and gas production. It highlights the evolution from Zipper fracs (alternating injection between two wells) and Simulfracs (fracking two wells at once) to Trimulfracs, where three wells are fracked simultaneously, as adopted by companies like Matador Resources and Chevron. Trimulfracs reduce completion times by 25% and cut costs by over $1 million per well compared to earlier methods, with Chevron planning to use this technique on 50-60% of its Permian wells in 2025. The process requires more frac pumps, water, and proppant (about 20 million pounds per well), with electric fracking fleets improving efficiency by using local power. This focus on efficiency counters the “drill, baby, drill” mantra, prioritizing cost savings and higher returns over rapid expansion. [MDN: We recently brought you a post about simulfrac’ing (see Simultaneous Shale Well Completions Per Location Double in 10 Years). This article by Ian Palmer is interesting and illustrates how innovative the O&G industry continues to be.]

Why Ohio has a say on California’s gas car ban
RealClearEnergy
The article discusses a pending U.S. Senate vote on overturning an EPA decision granting California authority to ban new gas-powered vehicle sales by 2035, highlighting Ohio’s significant stake in the matter. California’s Advanced Clean Cars II rule, adopted by 11 other states, aims to curb tailpipe emissions but faces opposition from states like Ohio, where the auto industry is a major economic driver. The author, a representative of Ohio’s petroleum industry, argues that the ban threatens jobs, energy affordability, and consumer choice, as electric vehicles (EVs) remain costlier and less practical for many. Ohio’s role is emphasized due to its manufacturing base and the Clean Air Act’s provision allowing other states to adopt California’s standards, impacting national policy. The article urges Ohio’s senators to support a Congressional Review Act resolution to block the EPA’s waiver, protecting local economies and ensuring a balanced energy transition. [MDN: Individual states should not have the power to ban legal products like gas-powered cars as it impacts other states. Time to overturn this nonsense.]

Strong European demand pushes U.S. LNG exports up by 20%
OilPrice.com
U.S. LNG exports surged by 20% from January to April compared to the previous year, reaching a record 34.6 million metric tons, driven by strong European demand due to a cold winter and depleted gas inventories, according to Kpler data cited by Reuters. Higher European gas prices compared to Asian spot LNG prices redirected cargoes to Europe, where low renewable energy output and fierce competition for gas led to storage levels dropping to a three-year low. Meanwhile, U.S. supply is expanding with new facilities like Venture Global’s Plaquemines LNG and Cheniere’s Corpus Christi Stage 3, both starting in late 2024. U.S. LNG exports have grown steadily since 2016, reaching 11.9 Bcf/d in 2024, making the U.S. the world’s top LNG exporter. The EIA forecasts further increases to 14.2 Bcf/d in 2025 and 16.4 Bcf/d in 2026, with new projects like Plaquemines LNG Phase 2 and Golden Pass LNG potentially boosting capacity by 19%. [MDN: Let’s keep it going! We can tell you with certainty that if Joe Biden were still president, LNG exports would not have increased by 20% for the first four months of this year. Thank God for the last election result.]

INTERNATIONAL

Re-elected Shell CEO, asked about BP, says bar for deals is high
Reuters
At Shell’s annual general meeting, shareholders re-elected Chair Andrew Mackenzie and CEO Wael Sawan with 91.4% and 98.7% support, respectively, while addressing speculation about a potential acquisition of rival BP. Sawan emphasized that the bar for mergers and acquisitions is very high, favoring share buybacks due to Shell’s strong share price, echoing his earlier stance on a potential BP bid. Media reports suggested Shell was evaluating a takeover as BP’s shares dropped 26% over the past year, compared to Shell’s 12% decline. An activist resolution demanding clarity on Shell’s liquefied natural gas (LNG) growth strategy and its alignment with carbon emission reduction goals garnered 20.6% support, requiring further shareholder consultation within six months. Sawan highlighted LNG as a key low-carbon fuel for the energy transition, replacing coal, despite methane’s climate impact. All other board members, including Finance Chief Sinead Gorman, were also re-elected. [MDN: The rumor that Shell may take over BP keeps circulating, despite non-denial denials by Shell. Sawan has been a breath of fresh air at Shell, refocusing the company on fossil energy and away from loser renewables. BP bet the other way, and lost.]

European Commission awards $1B in green hydrogen subsidies
Rigzone
The European Hydrogen Bank has allocated EUR 992 million ($1.12 billion) in grants to 15 renewable hydrogen production projects across Spain, Norway, Germany, Finland, and the Netherlands, selected from bids requesting EUR 4.8 billion for 6.3 gigawatts of capacity. These projects are expected to produce 2.2 million tonnes of renewable hydrogen over 10 years, reducing CO2 emissions by over 15 million tonnes, and will support sectors like transportation, chemicals, methanol, and ammonia production. Grants provide a fixed premium of EUR 0.20 to EUR 0.60 per kilogram to bridge the gap between production costs and market prices. Eight projects are in Spain, with the largest being the Netherlands’ Zeevonk Electrolyser (411 kilotons). A dedicated maritime sector budget was introduced, and an “auction as a service” mechanism allowed additional funding of EUR 836 million. Projects must finalize agreements by October and start production within five years. A third auction with EUR 1 billion is planned by year-end. [MDN: The U.S. went down this subsidized hydrogen rathole. And we’re now crawling out. Europe might want to learn from our mistakes before repeating them.]

Market skepticism surrounds Mexico’s ambitious plans to boost natural gas supply
S&P Global Commodity Insights
Mexico’s ambitious plan to boost its natural gas supply through new LNG export facilities, increased domestic production, and expanded pipeline infrastructure faces significant skepticism, according to an S&P Global Commodity Insights article. The country aims to leverage its proximity to the U.S. and growing global LNG demand to become a net gas exporter by the end of the decade, with projects like the $4.5 billion Fast LNG facility and the $4 billion Puerto Libertad LNG plant. However, market experts doubt the feasibility due to Mexico’s history of project delays, regulatory hurdles, and insufficient infrastructure. The nation’s heavy reliance on U.S. gas imports, which account for over 70% of its supply, and declining domestic production further complicate the goal. Critics argue that without significant policy reforms and investment, Mexico’s plans may fall short, leaving its energy security and export ambitions at risk. [MDN: Nobody believes the semi-Communist Mexico (deeply corrupt) will pull this off. Nobody.]