MDN’s Energy Stories of Interest: Wed, May 14, 2025 [FREE ACCESS]

MARCELLUS/UTICA REGION: EPA terminates $15M climate justice grant to Pittsburgh and Philly non-profits; OTHER U.S. REGIONS: Aramco in talks with Woodside for Louisiana LNG stake; New York and New Jersey need natural gas; Could Trump make it easier for DTE to build natural gas plants?; NATIONAL: S&P Global says USA crude oil production now expected to decline in 2026; After more than a decade of little change, U.S. electricity consumption rising again; US oil output has peaked, but don’t expect a rapid decline; U.S. LNG feedgas demand dropped due to maintenance and outages; Navigating the diverging landscape of climate disclosure laws; INTERNATIONAL: Crude rebounds over 11% from lows; President Trump visits Saudi Arabia.

MARCELLUS/UTICA REGION

EPA terminates $15M climate justice grant to Pittsburgh and Philly non-profits
The Allegheny Front
In 2024, the Pittsburgh-based nonprofit Landforce, alongside seven sub-awardees, was awarded a $15 million EPA climate justice grant to train disadvantaged individuals in landscaping and tree care, aiming to create green jobs and address environmental inequities in Pittsburgh and Philadelphia. The initiative planned to expand Landforce’s workforce development model, which combines environmental stewardship with employment opportunities for those facing barriers. However, the EPA recently terminated the grant, citing administrative issues, leaving Landforce and its partners uncertain about the program’s future. This decision has raised concerns about the loss of potential jobs and environmental benefits for underserved communities. Landforce, known for maintaining Pittsburgh’s green spaces, is now exploring alternative funding to sustain its mission. The termination reflects broader challenges in securing consistent federal support for climate justice initiatives, prompting local advocates to question the EPA’s commitment to equitable environmental progress. [MDN: One word response: Good!]

OTHER U.S. REGIONS

Aramco in talks with Woodside for Louisiana LNG stake
Rigzone
Woodside Energy Group Ltd. has signed a non-binding collaboration agreement with Saudi Aramco, which includes potential offtake and ownership in the Louisiana LNG project, alongside exploring lower-carbon ammonia and other global opportunities. The deal, formalized at the Saudi-United States Investment Forum in Riyadh, aligns with Woodside’s strategy to diversify its global portfolio, leveraging Aramco’s expertise as a leading energy and chemicals company. Woodside, which acquired the project (formerly Driftwood LNG) for $1.2 billion, announced a positive final investment decision for phase 1, involving three liquefaction trains with a 16.5 MMtpa capacity, with a total project cost of $17.5 billion. Stonepeak Partners LP will invest $5.7 billion for a 40% stake. Louisiana LNG, permitted to export 27.6 MMtpa, has begun construction with Bechtel Corp. and secured a supply deal with Uniper SE for up to 2 MMtpa through 2039, positioning Woodside as a global LNG leader. [MDN: We know Trump is visiting the Saudis and saying nice things about their thug dictator leader. We don’t like the Saudis and we don’t like them owning key pieces of our energy infrastructure. We’re probably outliers that way, but that’s the way we feel about it. NEVER forget the majority of the terrorists who attacked us on 9/11/01 were Saudi citizens. We lost personal friends and former workmates in Tower 1 on that day. We have a long memory.]

New York and New Jersey need natural gas
Wall Street Journal
President Trump’s initiative to revive the 124-mile Constitution Pipeline, connecting Pennsylvania to New York, aims to alleviate high natural gas prices in the Northeast, where New York saw rates near $20 per million Btus last winter compared to Pennsylvania’s $3. New York’s fracking ban and opposition to new pipelines, driven by environmental policies, force reliance on imported gas, inflating costs. New Jersey’s similar resistance, coupled with failed offshore wind projects like Ocean Wind 1 and 2, exacerbates energy shortages amid rising demand from data centers and electrification goals. Both states’ push for heat pumps and renewable energy is faltering due to insufficient battery storage and soaring electricity costs, making natural gas essential. Reviving pipelines and lifting New York’s fracking ban could lower costs, support economic growth, and provide relief to low-income consumers, addressing the region’s energy and economic challenges. [MDN: Politicians can no longer afford to give in to those who oppose every new pipeline proposal. We need new pipelines, NOW.]

Could Trump make it easier for DTE to build natural gas plants?
Planet Detroit
The article from Planet Detroit discusses how DTE Energy, a major Michigan utility, could benefit from the Trump administration’s relaxed environmental regulations, making it easier to build new natural gas plants despite environmental concerns. DTE’s CEO, Jerry Norcia, indicated that rolling back clean energy rules could facilitate natural gas expansion and delay coal plant retirements, aligning with the company’s plans to meet rising energy demands, particularly from data centers. However, a report by the Rocky Mountain Institute highlights that increased natural gas reliance could raise Michigan ratepayers’ bills by $37 billion by 2050 and hinder climate goals. Critics, including environmental advocates, argue this approach contradicts Michigan’s clean energy commitments, such as achieving carbon neutrality by 2050. The article underscores tensions between short-term energy demands, regulatory changes, and long-term climate objectives, with DTE navigating a complex landscape of economic and environmental priorities. [MDN: The Rocky Mountain Institute is a lying propaganda outfit and not to be believed. The lefties want you to believe that unreliable renewables will make electricity cheaper. It’s the opposite. Natural gas (and coal) make electricity cheaper, and renewables make it far more expensive.]

NATIONAL

S&P Global says USA crude oil production now expected to decline in 2026
Rigzone
An S&P Global Commodity Insights analysis predicts a decline in U.S. crude oil production in 2026, the first annual drop in a decade, excluding the 2020 pandemic, due to slowing global oil demand, expected supply surplus, and uncertainties surrounding U.S. trade policies. The report revises global oil demand growth for 2025 to 750,000 barrels per day, down 500,000 from prior estimates, with demand growth expected to average only 420,000 barrels per day for the rest of 2025 after a strong first quarter. U.S. production is forecasted to average 13.46 million barrels per day in 2025, falling to 13.33 million in 2026, driven by low oil prices (mid-to-low $60s for Brent, high $50s to low $60s for WTI) and potential trade barriers. The analysis warns of further risks if trade tensions persist or OPEC+ accelerates production increases, potentially deepening the downturn, though a price-driven decline could set the stage for a future recovery. [MDN: Sorry to say this, but S&P is dead wrong. Watch what will happen when the U.S. economy begins to roar later this year after the tariff deals are in place and more manufacturing and economic activity begins to kick in here at home.]

After more than a decade of little change, U.S. electricity consumption rising again
U.S. Energy Information Administration – Today in Energy
The U.S. Energy Information Administration’s Short-Term Energy Outlook forecasts a rise in U.S. electricity consumption for 2025 and 2026, exceeding the 2024 peak and reversing a nearly two-decade trend of flat demand. This growth, primarily driven by the commercial sector (notably data centers) and the industrial sector (manufacturing), follows a period where efficiency improvements and a shift to less energy-intensive service sectors offset demand increases from population and economic growth. Since 2020, electricity consumption has risen, with an expected average annual growth rate of 1.7% through 2026, led by commercial (2.6%) and industrial (2.1%) sectors, while residential growth remains modest at 0.7%. This surge is prompting expansions in solar and battery storage capacity, particularly in Texas, California, the upper Midwest, and the Northeast, alongside investments in energy efficiency, demand response programs, and high-voltage transmission lines to ensure grid reliability and balance, as reported by the Federal Energy Regulatory Commission. [MDN: We need more electricity. Unreliable renewables are not up to the task. Only gas-fired power can fill the need.]

US oil output has peaked, but don’t expect a rapid decline
Bloomberg
The American television drama Landman highlights the Texas oil industry’s volatility, with its protagonist noting $78 per barrel as the ideal oil price. In reality, West Texas Intermediate recently fell below $60, hitting a four-year low of $55, prompting shale companies to cut spending, drilling rigs, and fracking crews. The U.S., a major global oil producer, may have reached peak shale output sooner than anticipated, potentially by 2027 or earlier, due to low prices and investor pressure to prioritize shareholder payouts over reinvestment. Despite a slowdown—evidenced by a drop in active rigs to 474 and Permian frac crews to a four-year low of 105—production declines will likely be gradual, supported by efficient drilling and stable Gulf of Mexico output. While U.S. oil production peaked at 20.68 million barrels daily in October, a significant drop is unlikely in 2025 unless prices remain low, with a modest decline more probable in 2026. [MDN: More peak oil nonsense, this time from Bloomberg. They keep wishing and predicting, and they keep being wrong.]

U.S. LNG feedgas demand dropped due to maintenance and outages
RBN Energy
Last week, U.S. LNG feedgas demand dropped by nearly 1 Bcf/d due to maintenance and outages at several terminals. Cameron LNG saw reduced feedgas deliveries, likely due to a train offline for unreported maintenance, with Sempra also conducting pipeline maintenance on the Cameron Interstate Pipeline from May 9 to May 30. Cheniere’s Corpus Christi terminal experienced lower flows from May 5 to May 9 due to pipeline maintenance, with feedgas levels still slightly below normal post-maintenance. Freeport LNG went offline on May 6 after a power supply disruption, causing volatile feedgas levels, but has since resumed operations. Meanwhile, Cove Point, Calcasieu Pass, and Sabine Pass operated at full capacity, and the new Plaquemines LNG terminal increased its feedgas from 1.8 Bcf/d to 2.2 Bcf/d over the weekend. These factors highlight the impact of scheduled and unscheduled disruptions on LNG feedgas demand. [MDN: Feedgas will not be 100% all of the time. Freeport regularly goes offline for one reason or another. Other plants have scheduled maintenance once a year. It happens.]

Navigating the diverging landscape of climate disclosure laws
JDSupra
The article discusses the evolving landscape of climate disclosure regulations as the U.S. Securities and Exchange Commission (SEC) has withdrawn from defending its March 2024 Climate Disclosure Rule, creating uncertainty for companies navigating compliance. This retreat follows legal challenges and political shifts, particularly after the 2024 U.S. election, which may lead to further rollbacks of federal mandates. Meanwhile, states like California are advancing stricter disclosure laws, such as the Climate Corporate Data Accountability Act, requiring emissions reporting from large companies. Internationally, frameworks like the EU’s Corporate Sustainability Reporting Directive and ISSB standards are gaining traction, adding complexity for multinational firms. Companies face a patchwork of regulations, with some proactively adopting voluntary disclosures to align with investor and consumer expectations, while others await clearer federal guidance. The article emphasizes the need for businesses to stay agile, monitor regulatory developments, and integrate climate considerations into governance to manage risks and opportunities effectively. [MDN: It’s harder than ever for O&G companies (and others) to navigate suffocating regulations and disclosure regulations. Trump is trying to make it better, but the left continues its onslaught.]

INTERNATIONAL

Crude rebounds over 11% from lows
Bloomberg/Rigzone
Oil prices surged, with West Texas Intermediate climbing 2.8% to $63.67 a barrel and Brent rising 2.6% to $66.63, driven by US President Donald Trump’s threats to intensify sanctions on Iranian crude exports if no nuclear deal is reached. Speaking in Saudi Arabia, Trump emphasized maximum pressure on Iran’s energy sector, while the US State Department targeted a network facilitating Iranian oil shipments to China. The rebound, which saw an 11% recovery from the year’s lowest close, was bolstered by softer US inflation, easing US-China trade tensions, and a weaker dollar, making commodities more appealing. Equity markets rose, and optimism grew as tariff impacts on demand appeared limited. However, concerns linger about a potential oil glut, as OPEC+, led by Saudi Arabia, plans to boost output on June 1 to discipline non-compliant members, despite mixed market signals like strong gasoline spreads and a bearish North Sea crude trading window. [MDN: All of the moaning about oil being “low” and then it turns around on a dime. As we have been saying for months, oil in the $60s is just dandy with us. We don’t like it any higher—certainly no higher than the $70s. When oil is in the $80s and above, the thug dictators of OPEC+ have extra cash to make mischief around the world.]

President Trump visits Saudi Arabia
Rigzone
President Trump’s visit to Saudi Arabia, a pivotal OPEC+ member, coincides with the group’s strategy to increase oil production to stabilize prices around $65 per barrel, aligning with U.S. interests in maintaining low crude and refined product costs for domestic voters, according to SEB analyst Ole R. Hvalbye. The visit, accompanied by Secretary of State Marco Rubio, aims to strengthen U.S.-Gulf ties, with discussions likely focusing on geopolitical Middle East issues rather than oil prices. OPEC+ plans to continue monthly market assessments, managing internal disputes and global demand shifts, with a recent production hike of 411,000 barrels per day set for June 2025, as announced on May 3. Analyst Ahmad Assiri from Pepperstone suggests the visit may also explore a potential U.S.-Saudi nuclear power deal, which could outweigh short-term OPEC+ quota disagreements, given Saudi Arabia’s significant daily oil consumption for electricity. [MDN: You know how we feel about the Saudis. Read our comments elsewhere.]