MDN’s Energy Stories of Interest: Fri, Jun 13, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: Trump signs measure blocking California’s ban on new sales of gas-powered cars; LNG plant proposed for site near Port Canaveral, Florida; NATIONAL: Concerns grow on how ‘dirt sciences’ will keep attracting talent; IPAA seeking new CEO as Eshelman to take new role; U.S. natural gas storage improves, but long-term challenges remain; Natural gas power generation growth looks favorable for midstream; We’ve lost the culture war on climate; INTERNATIONAL: Oil steadies as traders weigh tariff threats against Iran risk; Israel strikes Iran nuclear sites; Australia could import LNG from 2027 with four projects underway along east coast; Egypt agrees to buy up to 160 LNG cargoes through 2026, sources say; Brussels, Washington, and the Kremlin’s oil-and-gas-for-war exports.
OTHER U.S. REGIONS
Trump signs measure blocking California’s ban on new sales of gas-powered cars
Associated Press
On June 12, 2025, President Donald Trump signed a resolution blocking California’s pioneering rule to ban new gas-powered car sales by 2035, escalating tensions with Governor Gavin Newsom. The resolution, passed by Congress, also overturned state regulations curbing tailpipe emissions and nitrogen oxide pollution from trucks, aiming to dismantle California’s aggressive climate policies. Trump, calling the rules “crazy” and a “disaster,” signed the measures at a White House ceremony, while Newsom responded with an executive order directing state regulators to propose new pollution limits if courts uphold California’s authority. The clash, part of a broader feud, coincides with Trump’s deployment of troops to Los Angeles over immigration protests and his push to roll back environmental regulations, including repealing power plant emission limits. Newsom’s lawsuit against Trump’s actions underscores California’s resistance, with critics like Dan Becker labeling the resolutions as a “betrayal of democracy.” [MDN: Common sense wins again! California has become a dictatorial banana republic. It’s time to bring them back into the American fold and kick the lefties out of power.]
LNG plant proposed for site near Port Canaveral, Florida
Cocoa (FL) Florida Today/Dave Berman, Jim Waymer
Chesapeake Utilities Corp., the parent company of Florida City Gas, has proposed building a liquefied natural gas (LNG) plant on a Merritt Island site west of Port Canaveral, near the Canaveral Barge Canal. The project, dubbed the “Canaveral LNG Plant,” would involve constructing marine facilities, including excavation, dredging, a new bulkhead, mooring area, boat basin, and turning basin to support an onshore LNG storage and regasification plant. Florida House Majority Leader Tyler Sirois, representing Merritt Island, opposes the plan, citing its proximity to residential areas and potential community impacts. Some Port Canaveral commissioners also express concerns about the project’s effects. Documents submitted to the St. Johns River Water Management District by an engineering firm outline the proposed infrastructure. The proposal has sparked local debate, with critics highlighting environmental and safety risks, while the company has not yet finalized plans or submitted formal applications. [MDN: While exciting that Florida City Gas wants to build an LNG “fill ‘er up” plant to service cruise ships and the space industry, this specific location is likely not the best given nearby residential areas.]
NATIONAL
Concerns grow on how ‘dirt sciences’ will keep attracting talent
Hart Energy/Richard Stubbe
The petroleum industry faces a talent shortage as companies seek well-educated professionals with diverse skills in data analytics, AI, and sustainability, but struggle to attract candidates due to declining interest in traditional “dirt sciences” like petroleum engineering, geology, and mining. At the Unconventional Resources Technology Conference, experts highlighted that enrollment in these programs has not rebounded with recent oil price increases, raising concerns about meeting future industry needs. Universities face pressure to modernize curricula with courses in renewable energy and carbon capture, but changes are slow due to accreditation and administrative hurdles. Meanwhile, new graduates often prefer broader energy roles over oil and gas, leading to retention issues. The industry is addressing this by diversifying hiring, emphasizing soft skills, and leveraging advisory boards to align academic programs with evolving demands, while promoting the global impact of petroleum engineering in fields like geothermal and hydrogen to attract talent. [MDN: While all of this is true, we think there’s another complicating factor. It’s the fact that O&G companies are only too willing to fire (lay off) people at the first sign of a downturn in prices, like they are expendable widgets. Only when O&G companies show some long-term devotion to employees, planning for downturns, and how to keep them employed during downturns, will employees and potential hires return the favor.]
IPAA seeking new CEO as Eshelman to take new role
Hart Energy/Staff
The Independent Petroleum Association of America (IPAA) is seeking a new president and CEO, as announced by Chairman Mike Hillebrand in a June 11 email to members. Current CEO Jeff Eshelman II will transition to a new role, supporting advocacy and the Energy in Depth program. The search for a “visionary, dynamic leader” comes amid challenges for U.S. oil and gas producers, including divisions over President Trump’s policies like increased global oil production, which has lowered prices by up to $15, and tariffs that may raise costs and reduce demand. Hillebrand, who recently succeeded Steve Pruett as chairman, emphasized the need for a CEO to enhance member engagement, represent all 34 oil-producing states, and influence policymakers. The IPAA’s annual meeting is set for June 18-19 in Williamsburg, Virginia, as the organization aims to unify and strengthen its voice for independent producers. [MDN: We would argue the IPAA is more critical for the shale industry than is the API, American Petroleum Institute. Who leads the IPAA is important. Choose well!]
U.S. natural gas storage improves, but long-term challenges remain
Wall Street Journal/Anthony Harrup
U.S. natural-gas storage levels have rebounded from a nearly 12% deficit following a harsh winter, achieving a 5.4% surplus due to mild spring weather and robust injections. However, escalating liquefied natural-gas (LNG) exports, projected to double by 2030, are raising concerns about future supply shortages and price spikes, potentially exceeding $5 per million British thermal units. Analysts predict storage could dip below average by October and plummet 22% below the five-year average by March 2026, driven by summer air-conditioning demand and new LNG terminals. Limited production growth, constrained by lower crude-oil output, exacerbates the issue. LNG terminals’ operational fluctuations may further strain storage dynamics. The Trump administration’s tariff policies and streamlined project approvals are boosting U.S. LNG deals, particularly with Asian buyers. As global LNG supply grows, U.S. gas prices may increasingly align with higher global benchmarks, positioning the U.S. as a key balancer in the global LNG market. [MDN: We keep reading stories like this, that shortages are coming and prices will increase. But it keeps not happening! Time will tell.]
Natural gas power generation growth looks favorable for midstream
ETF Trends
The article from ETF Trends highlights the favorable outlook for midstream companies due to increasing U.S. natural gas power generation. According to the U.S. Energy Information Administration, developers plan to add 18.7 gigawatts of combined-cycle capacity by 2028, with 4.3 gigawatts already under construction, boosting demand for natural gas and creating growth opportunities for midstream firms. These companies, crucial for transporting natural gas to demand centers like power plants, benefit from a fee-based business model with long-term contracts, ensuring stable cash flows. Since 2016, natural gas has been the leading source of U.S. electricity, though new capacity additions were minimal last year, with only one combined-cycle gas turbine coming online. The Alerian Energy Infrastructure ETF (ENFR), tracking the Alerian Midstream Energy Select Index, offers investors exposure to this sector, which is poised to capitalize on rising natural gas demand and infrastructure needs. [MDN: We do not recommend specific investments as this article does, although we do like ETFs in general. We bring you this summary to point out that in addition to drillers (and landowners), pipeline companies will benefit from the coming expansion in gas-fired power plants.]
We’ve lost the culture war on climate
POLITICO/Zack Colman, Benjamin Storrow, Annie Snider
President Donald Trump’s latest climate rollback, announced by the EPA on Wednesday, effectively abandons U.S. efforts to curb global warming by repealing a Biden-era regulation on power plants, the nation’s second-largest source of climate pollution. This move, combined with plans to dismantle Biden’s 2022 climate law and weaken transportation emission rules, leaves major pollution sources unchecked until at least the 2030s. Trump’s administration has also halted climate programs, cut research, and restricted state-level actions, like California’s, while the GOP’s Senate megabill targets clean energy incentives. Despite past Democratic efforts, such as Obama’s Clean Power Plan, which was struck down by courts, and Biden’s stalled initiatives, U.S. emissions remain nearly flat, far from the steep cuts needed to meet global climate goals. Experts warn that without federal action, rising temperatures will intensify costly disasters, and state efforts alone cannot bridge the gap, marking a critical setback in addressing climate change. [MDN: This article is essentially a long treatise on how the left is right on global warming hysteria and Trump is wrong, and that the left needs to change its messaging. They never learn. The title of the article comes from this admission: “There’s no way around it: The left strategy on climate needs to be rethought,” said Jody Freeman, who served as counselor for energy and climate change in President Barack Obama’s White House. “We’ve lost the culture war on climate, and we have to figure out a way for it to not be a niche leftist movement.” Well, it IS a niche, leftist (kook) movement. And the left will NEVER win.]
INTERNATIONAL
Oil steadies as traders weigh tariff threats against Iran risk
Bloomberg/Mia Gindis, Alex Longley
Oil prices remained volatile but stable as traders balanced escalating geopolitical tensions in the Middle East with renewed U.S. tariff threats. West Texas Intermediate (WTI) closed slightly lower at around $68 per barrel after fluctuating within a $2.50 range, briefly rising on reports of potential Israeli military action against Iran. Iran’s threats to target U.S. bases if nuclear talks collapse heightened market unease, given the Middle East’s critical role in producing a third of global oil. President Trump’s pledge to impose unilateral tariffs on trading partners dampened demand for risk assets, while Iran’s preparations for nuclear negotiations in Oman added uncertainty. JPMorgan warned oil could hit $130 in a worst-case scenario, with options pricing reflecting heightened volatility. Despite a 12% monthly gain, oil remains down for the year due to anticipated demand erosion from trade wars and OPEC+ resuming production. [MDN: We don’t want to jump the gun early, but we think sooner or later bombs will have to be dropped on Iran to eliminate its nuke program. We can’t shy away from it. (No sooner than we had already written those words, we learned that Israel had dropped bombs on Iran and its nuke facilities. We 100% support it.) WTI for July delivery fell 11 cents to settle at $68.04 a barrel in New York. Brent for August settlement slipped 41 cents to $69.36 a barrel.]
Israel strikes Iran nuclear sites
Bloomberg/Rigzone
Israel launched airstrikes on Iran, targeting nuclear facilities and killing senior military commanders, including the head of the Islamic Revolutionary Guard Corps, in a significant escalation that risks a broader Middle East conflict. The strikes, involving 200 Israeli planes hitting 100 targets, focused on sites like Natanz, though the UN reported no increased radiation levels, suggesting Iran’s nuclear stockpile remained intact. Prime Minister Benjamin Netanyahu vowed continued attacks to neutralize Iran’s nuclear threat, while Iran promised retaliation against Israel and possibly US assets, driving a 13% oil price surge. The strikes, defying US calls for diplomacy, occurred despite upcoming nuclear talks, now uncertain. Regional states condemned Israel’s actions as reckless, and global leaders urged de-escalation amid fears of economic impacts from higher energy prices and a deepening regional crisis. [MDN: At least Israel had the gonads to drop bombs on Iran. Good for them! The price of oil has spiked. Give it a day or two, and the price will come down again. It’s predictable.]
Australia could import LNG from 2027 with four projects underway along east coast
Reuters/Michele Pek
Australia could start imports of liquefied natural gas (LNG) from 2027, based on developments at import terminal projects along its east coast, to address potential supply shortages. The country’s competition regulator has said that the east coast may face a longer-term shortfall amid higher demand and structural decline. Below is a list of four proposed projects being advanced on the east coast, consisting of floating storage and regasification units (FSRUs), which will send gas via pipelines back to the mainland for consumption. [MDN: This is bizarre. Australia has been one of the world’s largest exporters of LNG. And now, parts of the country will begin to import LNG! How is that possible? The only thing we can figure is that the cancerous left has somehow ruined the country’s energy industry.]
Egypt agrees to buy up to 160 LNG cargoes through 2026, sources say
Reuters
Egypt has secured agreements to purchase 150 to 160 liquefied natural gas (LNG) cargoes through 2026 to address its escalating power demands amid a strained economy, according to industry sources. Costing over $8 billion at current prices, these deals involve major energy firms like Saudi Aramco, Shell, Vitol, Trafigura, BGN, SOCAR, and PetroChina. The purchases, Egypt’s largest-ever LNG imports, include 50 to 60 cargoes for 2025, in addition to 75 already acquired this year, totaling 235 cargoes by 2026. Priced at a $0.70-$0.75 premium above the Dutch TTF hub with nine-month deferred payments, the deals aim to mitigate rolling blackouts caused by declining domestic gas production. Egypt, now a net gas importer, is upgrading its infrastructure in Alexandria and Ain Sokhna to handle increased LNG volumes, while facing economic challenges, including a cost-of-living crisis and currency shortages, prompting IMF assistance. [MDN: Another prospective new customer. U.S. LNG exporters—go get ’em!]
Brussels, Washington, and the Kremlin’s oil-and-gas-for-war exports
Forbes/Ariel Cohen
The Forbes article by Ariel Cohen, published on June 12, 2025, highlights Russia’s economic resurgence driven by its oil and gas exports, which are funding its ongoing war efforts in Ukraine. Despite Western sanctions, Russian energy exports have increased, with a 10% rise in gas exports to Europe via the Turkstream pipeline from April to May 2025, and Gazprom reporting an $8.4 billion profit in Q1 2025. The article criticizes the West for not effectively curbing Moscow’s energy revenues, urging Brussels and Washington to implement stricter measures like lowering the Russian oil price cap and banning Russian bank usage. The U.S. has introduced the Sanctioning Russia Act of 2025 to impose heavy tariffs and restrictions on Russian energy. The piece emphasizes that only by cutting off Russia’s energy funds can the West pressure Moscow toward peace, as sustained exports bolster Russia’s economy and war machine. [MDN: Unless and until Europe stops buying cheap Russian gas and oil will Putin’s war against Ukraine stop. It’s that simple.]