MDN’s Energy Stories of Interest: Wed, May 28, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: Maryland advocates call for penalties on Washington Gas; NATIONAL: Trump orders accelerated nuclear power development, innovation; Warmer weather forecasts defuse supply angst to lift natural gas futures; INTERNATIONAL: Oil slips despite easing trade tensions; India spurns carbon tax threat, promotes trade and fossil fuels; Trump’s LNG diplomacy and how Asia got caught between gas and tariffs; Nearly 60 LNG carriers stand idle.
OTHER U.S. REGIONS
Maryland advocates call for penalties on Washington Gas
Inside Climate News
In a legal battle in Maryland, the Office of People’s Counsel (OPC) is urging the Public Service Commission to penalize Washington Gas for misleading claims that methane gas is a cleaner and cheaper energy source than electricity. The OPC’s complaint highlights that natural gas contributes significantly to greenhouse gas emissions, producing over 1,500 million metric tons of CO2 annually in the U.S., about one-third of the nation’s total. Washington Gas’s marketing, including statements on customer bills claiming gas costs one-third less than electricity and benefits the environment, was deemed false. The OPC argues the utility abused its monopoly by spreading unverified claims without oversight. Despite a judge’s ruling against Washington Gas, the company has deflected responsibility, framing the dispute as an attack on natural gas itself. The OPC seeks penalties and stronger consumer protections to prevent deceptive marketing. [MDN: This kind of radicalized crap is why people are moving out of Maryland in droves. It has to stop. You can’t attack natural gas, and you can’t attack a company for marketing the product it sells. This is as anti-American as it gets.]
NATIONAL
Trump orders accelerated nuclear power development, innovation
Rigzone
President Donald Trump has signed executive orders to revitalize U.S. nuclear power and innovation, aiming to reverse decades of stagnation by enabling reactor design testing at Department of Energy National Labs, facilitating construction on federal lands, and streamlining Nuclear Regulatory Commission licensing. These actions, described as the most significant nuclear regulatory reforms in decades, seek to bolster America’s nuclear industrial base, secure domestic fuel supply chains, and support energy independence critical for AI and emerging technologies. The U.S., with 94 operating reactors across 54 plants as of 2023, maintains the world’s largest commercial nuclear fleet, though most reactors were built between 1970 and 1990. Recent activations, like Plant Vogtle’s new units, mark rare additions since 2016. Concurrently, the DOE is advancing fusion research through initiatives like the $107 million Fusion Innovative Research Engine Collaboratives, partnering internationally to reduce reliance on foreign nuclear supply chains, and targeting commercial fusion deployment by the 2040s. [MDN: We need all forms of energy, including nuclear. Other presidents made political statements about “all of the above” energy. Trump actually does it. Big difference. Obama and Biden were all talk. Trump is talk PLUS action.]
Warmer weather forecasts defuse supply angst to lift natural gas futures
NGI’s Daily Gas Price Index
June Nymex natural gas futures rose 6.4 cents to $3.398/MMBtu on Tuesday, rebounding from an early dip to $3.214, driven by traders positioning ahead of the contract’s Wednesday expiry and expectations of summer-like demand starting June 4-9. The July contract, set to become the prompt month, gained 1.9 cents to $3.744. Despite near-record production levels of 106.9 Bcf/d on Friday, slightly easing to 105.2 Bcf/d Tuesday, market volatility reflected a tug-of-war between high output and lagging early-season demand. Spot gas prices surged, with the National Avg. up 50.0 cents to $2.635, led by West Texas recovering from negative pricing. LNG feed gas deliveries held near 14.6 Bcf/d, tempered by maintenance at Cheniere’s Sabine Pass, while Cameron LNG neared the end of its upkeep. Analysts anticipate a 79-124 Bcf storage build for the upcoming EIA report, potentially slowing the rapid inventory growth, with hotter weather expected to tighten balances soon. [MDN: For anyone with the budget and anyone who trades natural gas futures, we heartily encourage you to subscribe to NGI’s services.]
INTERNATIONAL
Oil slips despite easing trade tensions
Bloomberg/Rigzone
Oil prices declined as the prospect of another significant OPEC+ production increase overshadowed easing trade tensions between the EU and the US. West Texas Intermediate (WTI) fell 1% to settle at $60.89 a barrel, while Brent crude also dropped 1% to $64.09. The decline followed a stronger US dollar, which reduced the appeal of dollar-priced commodities, and came amid expectations that OPEC and its allies, who moved their production decision meeting to May 31, might implement a third consecutive monthly output hike. This follows their strategy to restore supply faster than anticipated, pressuring prices downward since mid-January. Despite brief positive movement in oil prices due to potential new US sanctions on Russia, which could disrupt global crude supplies, the market was driven lower by technical selling from commodity trading advisers. Meanwhile, oil prices remained largely unaffected by delayed US tariff increases on the EU, as trade negotiations accelerated. [MDN: We’re still in the $60s, which is good. If it slips into the $50s, we’d be fine with that too, although in the $60s is better.]
India spurns carbon tax threat, promotes trade and fossil fuels
CO2 Coalition
India is resisting pressure from the United Nations and Europe to adopt carbon taxes, particularly the EU’s Carbon Border Adjustment Mechanism (CBAM) set for 2026, which would impose 20-35% tariffs on high-carbon imports like iron, steel, and aluminum. These exports, critical to India’s economy, face cost increases due to the country’s coal-based production, which emits 2.5-2.6 metric tons of CO? per ton of steel, higher than the global average. India’s Union Minister Piyush Goyal warned of retaliatory measures if such taxes are enforced, emphasizing the nation’s commitment to fossil fuels to meet its 1.4 billion people’s energy needs. Despite global climate commitments, India prioritizes economic growth and energy security, with coal powering 70% of its electricity. The article, written by Vijay Jayaraj, argues that India’s stance reflects a broader rejection of restrictive climate policies that hinder development in favor of affordable energy and trade. [MDN: India is putting the EU and the UK on alert that it won’t tolerate stupid carbon taxes. Hopefully the U.S. is doing the same. The EU (and UK) have quickly slide into Third World Country status. It’s painful to watch.]
Trump’s LNG diplomacy and how Asia got caught between gas and tariffs
Singapore The Business Times
In the wake of the 2022 Russia-Ukraine war, energy security faces a new geopolitical challenge as U.S. President Donald Trump leverages U.S. liquefied natural gas (LNG) as a bargaining chip in trade talks, pressuring Asian nations to increase imports to avoid tariffs. With a July 9 tariff deadline looming, countries like South Korea, Taiwan, and India are boosting U.S. LNG imports to mitigate trade deficits and secure tariff relief, with Taiwan aiming for U.S. LNG to meet nearly three-quarters of its gas needs by 2028. Malaysia’s Petronas is also exploring deals with North American suppliers to serve high-growth markets like China and Vietnam. However, some Asian nations are diversifying to Canada and Qatar for competitive pricing and political stability, wary of U.S. geopolitical leverage. This shift highlights a broader concern: the risk of critical supply chains becoming pawns in trade disputes, potentially undermining decades of trust in global energy markets. [MDN: Trump is brilliant! If Asia wants access to our markets, they can play ball with us. Or not. Their choice (their funeral).]
Nearly 60 LNG carriers stand idle
Splash247.com
The liquefied natural gas (LNG) carrier sector is experiencing a downturn, with nearly 60 vessels currently idle, as reported by Clarksons Research. South Korean shipowners are increasingly scrapping older, less efficient steam turbine LNG carriers due to shifting market dynamics and stringent emissions regulations. Recently, four 135,000 cu m vessels—Hyundai Aquapia, Hyundai Technopia, HL Ras Laffan, and HL Sur, all built around 2000—were sold for demolition in South Asia at approximately $565 per light displacement ton, yielding about $19.2m each. This brings the 2025 recycling total to seven vessels (830,000 cu m), approaching the 2024 full-year total of eight (960,000 cu m). The scrapping trend is driven by the competitive disadvantage of older steam turbine ships against modern, fuel-efficient two-stroke or tri-fuel diesel electric vessels, with charter rates for newer designs ($30,000/day) far outpacing older ones ($15,000/day), pushing economically unviable tonnage toward recycling. [MDN: We suppose this is the industry improving itself and getting better. Still, 60 vessels idled right now, that’s an alarming statistic.]