MDN’s Energy Stories of Interest: Fri, Jun 20, 2025 [FREE ACCESS]
MARCELLUS/UTICA REGION: OCC fights FirstEnergy bid to block testimony in scandal hearing; OTHER U.S. REGIONS: In search of the New York Climate Act safety valve; NATIONAL: Methane-powered sea spiders found crawling on the ocean floor; USGS touts potential oil and gas resources beneath public lands; INTERNATIONAL: Middle East tensions keep oil volatile; Crude spike from Israel-Iran war likely short-lived as supply adjusts; China vs. U.S. – AI supremacy requires reliable electricity; If we want to beat China, we must build American energy, fast; Canada could produce first LNG by this weekend, sources say; Nigel Farage says net zero could be ‘next Brexit’ and win Reform elect; The hidden price of “cheap” Russian gas; Geopolitical premium keeps oil elevated; Trump signals holding off Iran strike to give diplomacy time.
MARCELLUS/UTICA REGION
OCC fights FirstEnergy bid to block testimony in scandal hearing
Youngstown (OH) WFMJ-TV
The Office of Ohio Consumers’ Counsel (OCC) is challenging FirstEnergy Corp.’s attempts to block testimony in ongoing Public Utilities Commission of Ohio (PUCO) investigations into the House Bill 6 (HB 6) bribery scandal, arguing that the utility is trying to obscure details of its misconduct. The OCC’s filing opposes FirstEnergy’s motions to exclude witnesses, including former PUCO Commissioner Ashley Brown, who will testify on the company’s exploitation of Ohio regulations, and OCC Analyst Joseph Perez, who recommends a $28.3 million rate reduction due to deferred tax liabilities. The investigations, initiated at the OCC’s request, aim to hold FirstEnergy accountable for its role in the HB 6 scandal, where it admitted to unlawful acts in a deferred prosecution agreement. The OCC, supported by groups like the Ohio Manufacturers’ Association, insists that the testimony is vital for consumer protection and transparency. The PUCO investigations are part of four ongoing inquiries into FirstEnergy’s actions related to the controversial 2019 energy bill, which was largely repealed in 2021 after revelations of a massive bribery scheme. [MDN: We covered this scandal from the beginning because HB 6 directly harmed gas-fired power plants in the state by using ratepayers to fund the money-losing coal and nuclear plants operated by FirstEnergy. It’s hard to believe it’s all still playing out, all of these later.]
OTHER U.S. REGIONS
In search of the New York Climate Act safety valve
Pragmatic Environmentalist/Roger Caiazza
The article from Pragmatic Environmentalist of New York critiques the implementation of New York’s Climate Leadership and Community Protection Act (Climate Act), focusing on the undefined “safety valve” in Public Service Law § 66-p (4), which allows the Public Service Commission to suspend renewable energy program obligations if they impede safe and adequate electric service, impair existing agreements, or significantly increase arrears or disconnections. The author argues that the absence of clear criteria for these conditions undermines the law’s mandate, risking reliability and affordability. Despite warnings from the New York Independent System Operator about potential reliability issues by 2030, state agencies have not established affordability or reliability metrics. The author suggests pausing Climate Act implementation until these criteria are defined, a feasibility study is conducted, and cost estimates are transparently reported, emphasizing that the current approach could lead to higher costs and unreliable energy without measurable climate benefits. [MDN: Those of us living in the Empire State are so screwed. We are heading for blackouts at 100 miles per hour. It won’t be pretty when the general public finally wakes up to the fact the politicians have screwed us over with renewable nonsense.]
NATIONAL
Methane-powered sea spiders found crawling on the ocean floor
CNN
Scientists have discovered three new species of deep-sea spiders off the US West Coast that thrive in methane seeps, unique marine habitats thousands of feet below the ocean surface. Unlike other sea spiders that hunt prey with fang-like appendages, these translucent Sericosura spiders, roughly 0.4 inches long, lack such tools and instead “farm” methane-oxidizing bacteria on their exoskeletons. The bacteria convert methane—a potent greenhouse gas—into sugars and fats, which the spiders consume by grazing their own bodies. This symbiotic relationship, detailed in a study published in the Proceedings of the National Academy of Sciences, may help prevent methane from reaching the atmosphere, contributing to climate regulation. Found off Southern California and Alaska, these localized species highlight the deep ocean’s biodiversity and the need for careful management of seafloor activities like mining to protect such unique ecosystems. [MDN: It’s amusing to watch an entire generation whose minds have been brainwashed and polluted into believing methane is evil come to grips with the fact that methane is natural and has been a part of our world from its beginning and is hardwired into everything. It’s not evil. It’s not destroying the planet. So when confronted with that fact, these lunatics still view it through the lens of “How can this discovery help us prevent methane from destroying us?” It’s really quite sad, and funny.]
USGS touts potential oil and gas resources beneath public lands
Inside Climate News/Jake Bolster
A U.S. Geological Survey report revealed significant undiscovered oil and gas resources—29.4 billion barrels of oil, 391.6 trillion cubic feet of gas, and 8.4 billion barrels of natural gas liquids—beneath public lands, prompting debate as Republicans in Congress push to sell up to 3.2 million acres for development. Ordered by Interior Secretary Doug Burgum in response to President Trump’s “energy emergency” declaration, the report assesses technical recoverability but not economic feasibility or environmental impacts. Supporters, including Burgum, emphasize energy dominance, noting the gas could meet U.S. demand for 12 years. Critics, like environmental advocates and the Southern Utah Wilderness Alliance, question the report’s timing, calling it a pretext for rushed fossil fuel expansion on sensitive lands. They highlight competing public interests, such as recreation and wildlife, and note the U.S. already leads in oil and gas production, questioning the need for further drilling. [MDN: Whether or not we go after these embarrassing riches, the fact remains they are there and could be accessed if needed. The left has tried to cover this up. Now, everyone knows.]
INTERNATIONAL
Middle East tensions keep oil volatile
Bloomberg/Julia Fanzeres, Catherine Cartier
Oil prices rose slightly, with West Texas Intermediate settling above $75 a barrel, the highest since January, amid heightened volatility driven by escalating tensions in the Israel-Iran conflict and speculation about potential U.S. involvement. President Donald Trump’s ambiguous comments about possibly bombing Iran’s nuclear facilities, coupled with his demand for Iran’s “unconditional surrender,” intensified market anxiety, though Iran’s Supreme Leader Ayatollah Ali Khamenei vowed resistance. The U.S. is deploying additional military assets, including the USS Nimitz, to the region, raising concerns about disruptions to oil flows, particularly through the Strait of Hormuz, which handles a quarter of global crude shipments. Despite increased Iranian exports and no major disruptions reported, oil derivatives markets reflect heightened risk, with bullish options premiums at a decade-high and shipping costs from the Middle East to China up over 50%. A significant U.S. inventory drawdown and a bullish shift in Brent futures further signal tighter market expectations. [MDN: Even though the situation in the Middle East is as unsettled as it can get, the price of oil is still only in the $70s. WTI for July delivery rose 0.4% to settle at $75.14 in New York. Brent for August settlement rose 0.3% to settle at $76.70 a barrel.]
Crude spike from Israel-Iran war likely short-lived as supply adjusts
Morningstar
The June 13, 2025, Israeli attack on Iran, followed by retaliatory strikes, triggered a 13% surge in West Texas Intermediate (WTI) crude oil prices, reaching about $74 per barrel, an 8% increase from the pre-strike price of $68 on June 12. The threat of a wider Middle East conflict drove a 7-8% price hike, likely encouraging more global oil supply. Middle East oil production remains largely unaffected, but the price spike’s duration hinges on the conflict’s trajectory. Higher oil prices could worsen tariff-related economic challenges, potentially reducing demand if the conflict subsides, leading to a deflation of the war premium and lower prices. Andrew O’Conor, Senior Vice President at Corporate Ratings, maintains a $60 per barrel WTI forecast for 2025-2027, viewing the price increase as temporary but noting potential for an upward adjustment to the 2025 forecast. [MDN: And there you have it, what we’ve been saying all along. Morninstar’s analysts believe the current price in the $70s will come back down into the $60s again.]
China vs. U.S. – AI supremacy requires reliable electricity
Forbes/Jude Clemente
The Forbes article by Jude Clemente emphasizes that reliable electricity is critical for the U.S. and China in their race for AI supremacy, with energy infrastructure playing a pivotal role. China is aggressively expanding its coal-based power, boasting the world’s youngest and most efficient coal fleet, with plans to add capacity exceeding the EU and Japan’s combined generation. In contrast, the U.S. is phasing out coal, with projections showing a 93% decline in coal generation by 2035, despite holding vast reserves. The U.S. also faces challenges with declining nuclear capacity and bureaucratic hurdles slowing new nuclear projects, while China rapidly builds nuclear reactors. Natural gas is a potential U.S. strength, with industry readiness to meet data center demands. The article warns that the U.S. risks falling behind if it doesn’t bolster baseload power, as AI’s energy-intensive nature makes electricity a geopolitical battleground. [MDN: China adds a coal plant per week! And we cower in the corner about new gas plants due to “global warming.” Why don’t the idiot climate protesters go to China, where the real problem is? Oh, that’s right, because they’d end up in jail, or dead.]
If we want to beat China, we must build American energy, fast
RealClearEnergy/John Szoka
The article from RealClearEnergy argues that to counter China’s growing global influence, the U.S. must urgently expand its energy infrastructure to achieve energy dominance. It highlights China’s rapid advancements in clean energy, critical minerals, and industrial output, which outpace U.S. efforts, posing risks to national security and economic competitiveness. The U.S. faces challenges like outdated permitting processes that delay projects for years, while China’s state-driven model allows swift development. The incoming Trump administration, with Energy Secretary-designate Chris Wright, aims to streamline regulations, boost domestic production of oil, gas, nuclear, and renewables, and reduce reliance on foreign energy. The article emphasizes that affordable, reliable, and secure energy is critical for powering AI, manufacturing, and economic growth. It calls for immediate action, including permitting reform and investment in diverse energy sources, to restore U.S. leadership and prevent China from dominating global energy markets. [MDN: Our modern way of life, our long life expectancy, our incredible wealth, is ALL because of energy. Specifically, because of fossil fuels that have powered this country’s incredible rise to be the best country on the planet. We now face a threat from an undemocratic country, China, because they understand energy and its role. We’ve lost our way, wandering into the lunacy of “renewable” energy pursuits. It’s time to grow up and quit frittering around with renewables.]
Canada could produce first LNG by this weekend, sources say
Reuters/Curtis Williams
Canada is poised to produce its first liquefied natural gas (LNG) this weekend at the LNG Canada export facility in Kitimat, British Columbia, marking a significant milestone as the first LNG facility in North America with direct Pacific coast access, according to two sources familiar with the startup. The facility, a joint venture led by Shell with partners Petronas, PetroChina, Mitsubishi Corporation, and Kogas, began cooling Train 1 on Monday, with production expected by Saturday or Sunday if no issues arise. Initially operating at 25% capacity due to technical difficulties with one of Train 1’s lines, the plant aims to export 14 million metric tonnes per annum when fully operational. The LNG tanker Gaslog Glasgow is en route to load the first cargo by June 29. This development is likely to reduce Canadian gas exports to the U.S., as firms target Asian markets, leveraging shorter shipping routes. [MDN: Don’t look now, but even Canada, with its anti-fossil fuel nutjob Prime Minister, is set to compete with the U.S. on LNG exports.]
Nigel Farage says net zero could be ‘next Brexit’ and win Reform elect
The Amed Post (Turkey)
Nigel Farage, leader of Reform UK, has declared that opposing the government’s net zero emissions policy could be the pivotal issue that propels his party to victory in the next general election, likening it to the impact of Brexit. While expressing his long-standing concern for the environment, having voted for the Green Party in 1989, Farage criticized the net zero push for causing deindustrialization and escalating energy costs for families and businesses. He accused former Conservative leader Boris Johnson of exacerbating the issue with ambitious wind energy goals and slammed the government for undermining North Sea industries, advocating instead for self-sufficient energy exportation through shale gas fracking and nuclear power. Farage condemned the use of agricultural land for solar farms, calling them “biodiversity deserts,” and argued that the centre-Right could reframe environmentalism without the “CO2 obsession,” predicting that public disillusionment with net zero could shift voter support toward Reform UK. [MDN: Huh. A former Green Party guy in the UK says net zero is crazy, and he hopes campaigning against net zero policies will propel his Reform UK party to victory in the next election. God speed, Mr. Farage.]
The hidden price of “cheap” Russian gas
OilPrice.com/Leon Stille
For decades, Russian gas was touted as a cheap, reliable energy source underpinning Europe’s industrial competitiveness, but this article dismantles that myth, revealing the steep hidden costs of dependency. While long-term contracts and oil-indexed pricing once suggested affordability, the economic advantage was marginal and eroded by 2021, when Gazprom’s supply manipulations drove prices above LNG imports. Beyond economics, reliance on Russian gas exposed Europe to strategic coercion, supply disruptions, and geopolitical leverage, evident in crises from 2006 to the 2022 Ukraine invasion. This dependency delayed diversification, indirectly funded Russia’s military, and left infrastructure vulnerable to sabotage and espionage. Europe is now pivoting to a resilient energy future, scaling LNG terminals, renewables, and electrification under initiatives like REPowerEU. The true cost of Russian gas—measured in compromised autonomy, security risks, and lost time—far outweighs its apparent savings, underscoring the need for energy choices prioritizing sovereignty and long-term stability. [MDN: Have the Euro weenies woken up to the truth found in this article? We fear not.]
Geopolitical premium keeps oil elevated
Bloomberg/Robert Tuttle, Alex Longley
Oil prices rose slightly, with West Texas Intermediate’s August futures increasing 0.5% to around $74 per barrel, after the White House announced that President Trump would decide within two weeks on potential military action against Iran, easing fears of an imminent US strike. Earlier, prices neared $76 due to reports of a possible attack, but Press Secretary Karoline Leavitt’s comments reduced immediate tensions, as noted by Mizuho Securities’ Robert Yawger, who suggested a delay in US involvement could cap crude price surges. Despite this, oil prices remain elevated since Israel’s recent strike on Iran, with heightened volatility and bullish options activity. Shell’s CEO Wael Sawan warned of severe global trade disruptions if the Strait of Hormuz, a critical oil passageway, were blocked, though no such disruptions have occurred yet. Analysts estimate an $8 geopolitical risk premium in current oil prices, with potential for further increases if tensions escalate. [MDN: WTI for July delivery, which expires on Friday, was up 0.9% to $75.80 a barrel at 3:06 p.m. in New York. The more-active August contract rose 0.5% to $73.88 a barrel. Brent for August settlement rose to 2.8% to settle at $78.85, before the White House comments.]
Trump signals holding off Iran strike to give diplomacy time
Bloomberg/A. Gardner, A. Odenheimer & E. Najafizada
President Donald Trump will decide within two weeks whether to strike Iran, following Israel’s recent attacks on Iranian nuclear sites, including missile production facilities and an inactive reactor in Arak, as tensions escalate in the region. Trump’s decision hinges on potential negotiations with Iran, with his spokeswoman Karoline Leavitt emphasizing his openness to diplomacy to halt Iran’s uranium enrichment and prevent nuclear weapon development. Israel’s strikes, which also targeted Iran’s nuclear research headquarters, aim to cripple its missile and nuclear capabilities, with Prime Minister Benjamin Netanyahu suggesting the attacks could destabilize Iran’s leadership. A missile from Iran struck an Israeli hospital, highlighting civilian risks. European leaders, including UK Prime Minister Keir Starmer, urge diplomacy, with talks planned in Geneva. Trump’s history of setting two-week deadlines adds uncertainty, while global markets react cautiously, with Brent crude dropping 2.7% but remaining elevated. [MDN: Trump is being gracious with Iran. We think in the end the bomb will have to be dropped, but at least he gave them an honest chance, first.]