MDN’s Energy Stories of Interest: Fri, Jun 27, 2025 [FREE ACCESS]
MARCELLUS/UTICA REGION: Three Mile Island nuclear plant reboot fast-tracked to 2027; Northeast gas demand rises in hot summer start; OTHER U.S. REGIONS: Trump announces Gulf of America oil lease sale spanning area larger than entire UK; NATIONAL: U.S. natural gas futures extend losing streak; Geothermal energy – another nail in the coffin of wind and solar power?; Choice of well tubing plays a key role as horizontal laterals extend their reach; Senate hearing explores China’s role in funding U.S. climate groups; Thanks to the natgas reboot, other countries could help pay down the U.S. debt; INTERNATIONAL: WTI edges up as OPEC+ meeting looms; Russia wants to supply Mexico with LNG, bypassing U.S.; DOE secretary joins criticism of energy agency’s oil forecast.
MARCELLUS/UTICA REGION
Three Mile Island nuclear plant reboot fast-tracked to 2027
Reuters/Laila Kearney
The former Three Mile Island nuclear power plant in Pennsylvania, now renamed the Crane Clean Energy Center, is set to restart in 2027, a year ahead of schedule, due to a fast-tracked connection to the regional grid, according to Constellation Energy executives. The plant, which shut down in 2019 for economic reasons, is being revived to power Microsoft data centers under a 20-year agreement signed in September, driven by rising electricity demand from the technology sector, particularly for AI. The reactor, unaffected by the 1979 partial meltdown, is in similar condition to its closure, with ongoing work focused on planning, hiring, and infrastructure upgrades like water systems and a new main transformer. Supported by Pennsylvania Governor Josh Shapiro and PJM Interconnection, the restart aims to deliver 835 megawatts of carbon-free energy. This marks a historic first, as no fully shut U.S. nuclear plant has been restarted, amid renewed interest in nuclear power. [MDN: We like nuclear power. This is a good thing. It drives the environmental left nuts, which is an added bonus.]
Northeast gas demand rises in hot summer start
RBN Energy/John Abeln
Power-sector natural gas demand rocketed upward last week as the summer began in earnest. Extremely hot weather was felt throughout the Eastern U.S., causing Northeast gas-for-power demand to hit 13.8 Bcf/d on Sunday, the highest daily demand total since August 2024. Gas demand from the power sector was 2.3 Bcf/d higher during the overall week ended June 24 relative to the prior week. This was part of a 3-Bcf/d increase in gas demand from all sectors. At the same time, Northeast production declined by 0.5 Bcf/d week-on-week. Power demand in the Northeast surpassed the 5-year maximum for June last week, as seen in the chart above. However, it is not quite to the 14.1 Bcf/d level seen in July of last year. Temperatures and power demand are expected to fall back in the coming week as the weather is predicted to cool. [MDN: Temps in the northeast are back down today. We almost hit last year’s record-high power demand. Still a lot of summer left.]
OTHER U.S. REGIONS
Trump announces Gulf of America oil lease sale spanning area larger than entire UK
Washington (DC) Free Beacon
The Trump administration has announced a massive Gulf of America oil and gas lease sale, covering approximately 80 million acres, set for December 2025, marking the first offshore lease sale under President Trump. Spanning 15,000 blocks of federal waters, the sale offers reduced royalty rates to attract greater industry participation, aligning with Trump’s “drill, baby, drill” agenda to boost energy dominance. This move reverses the Biden administration’s restrictive policies, which canceled offshore lease sales, limited drilling, and increased royalty fees. The announcement follows Trump’s directive to accelerate drilling, prompted by recent U.S. airstrikes on Iranian nuclear sites, raising concerns about global oil supply disruptions, particularly through the Strait of Hormuz. The Gulf, producing 1.8 million barrels daily, holds an estimated 48 billion barrels of recoverable oil, vital for reducing U.S. reliance on the 7.5 million barrels of daily oil imports, enhancing energy security, economic strength, and global stability. [MDN: All sources of fossil energy are needed, including offshore. Another great move by the Trump administration.]
NATIONAL
U.S. natural gas futures extend losing streak
Wall Street Journal/Anthony Harrup
U.S. natural gas futures fall for a fifth straight session with cooler weather forecasts seen likely to limit demand after this week’s heat wave. Prices were also affected by a slightly larger-than-expected inventory build for last week, which increased the surplus over the five-year average to 179 Bcf from 162 Bcf the week before. The Nymex July contract goes off the board down 4.3% at $3.261/mmBtu, and gas for August delivery falls 1.2% to $3.526/mmBtu. [MDN: And just like that, we’re plunging back into a vicious down cycle in the price. It’s quite frustrating. Moderating temps and a big build in storage are the cited reasons for the continuing decline.]
Geothermal energy – another nail in the coffin of wind and solar power?
Committee For A Constructive Tomorrow/Bonner Cohen
The article from CFACT argues that geothermal energy could challenge the dominance of wind and solar power due to its reliability and technological advancements. It highlights the resurgence of fossil fuels and nuclear energy, coupled with the growing energy demands of AI-driven data centers, as factors diminishing the viability of intermittent renewables like wind and solar. Geothermal energy, which harnesses heat from the Earth’s core, is praised for its ability to provide a continuous power supply, unlike weather-dependent alternatives. The article notes that legislative efforts, such as the GEO Act and STEAM Act, aim to streamline permitting for geothermal projects, leveraging techniques like hydraulic fracturing to reduce costs. However, challenges remain, including high upfront costs and transmission issues. With investments from major companies and bipartisan support, geothermal is positioned as a potential cornerstone of U.S. energy strategy, possibly outpacing wind and solar. [MDN: As we have pointed out many times, geothermal uses the same drilling rigs and same fracking techniques used for oil and gas. Instead of molecules coming out of the ground, water is circulated through the ground in geothermal. Other than that, it’s the same process as drilling for oil and gas. Yet the radicalized left refuses to make the same (false) arguments against geothermal that it uses against oil and natgas (water table will be destroyed, radioactivity in drill cuttings will make everyone glow, too close to homes and schools, noise, truck traffic, use of diesel equipment/emissions during drilling, etc.). You do see how hypocritical they are, right?]
Choice of well tubing plays a key role as horizontal laterals extend their reach
RBN Energy
The oil and gas industry, originating in western Pennsylvania 166 years ago, has increasingly focused on enhancing productivity through advanced drilling techniques, particularly since the Shale Revolution. Innovations in horizontal drilling and hydraulic fracturing have significantly boosted initial production rates, with longer horizontal laterals—some extending three to four miles—improving resource recovery and drilling economics by reducing the number of wells needed. In the Utica Shale, average lateral lengths reached 14,562 feet in 2024, while the Eagle Ford’s complex geology limits its average to 1.68 miles, as longer laterals yield diminishing returns. Challenges include assembling contiguous acreage for extended laterals, as seen in EOG Resources’ strategic acquisitions. Two tubing types—coiled tubing and stick pipe—are critical for well preparation. Coiled tubing offers speed and efficiency for shorter laterals, like those in the Permian, while stick pipe excels in longer, complex wells, such as in the Utica and Marcellus, due to its rigidity and debris-handling capabilities. [MDN: A long and interesting article that delves into the type of pipelines installed in various plays, including the M-U.]
Senate hearing explores China’s role in funding U.S. climate groups
Forbes/David Blackmon
A Senate hearing led by Texas Senator Ted Cruz on June 25, 2025, investigated allegations that Chinese interests, particularly the Energy Foundation China (EFC), are funding U.S. climate advocacy groups like the Natural Resources Defense Council and Rocky Mountain Institute to pursue litigation against American energy companies. Titled “Climate Lawfare and the Courts: How Foreign Actors Are Undermining American Energy Independence,” the hearing explored claims that these funds align with China’s strategic interests in controlling critical mineral and energy technology supply chains. Cruz alleged EFC has injected millions into these groups to weaken U.S. energy producers. In response, Senators Sheldon Whitehouse and David Arkush accused the energy industry of using “dark money” to obstruct climate action and delay clean energy transitions. The hearing highlighted tensions over foreign influence, climate policy, and energy security, with Cruz also questioning Arkush’s advocacy for prosecuting oil executives for “climate homicide.” [MDN: An excellent article covering the hearing and the explosive allegations that China is funding many of the Big Green groups that are abusing our legal system to try and destroy the fossil fuel industry. There is no denying that foreign bad actors, including China, have a vested interest in (and are funding) Big Green. Shame on the Democrat senators who side with America’s enemies, namely Sheldon Whitehouse of Rhode Island, Dick Durbin of Illinois, Richard Blumenthal from Connecticut, and Vermont Sen. Peter Welch. We encourage you to read the full article.]
Thanks to the natgas reboot, other countries could help pay down the U.S. debt
The Empowerment Alliance/Gary Abernathy
The resurgence of traditional, affordable, and reliable energy in the U.S., driven by a new administration, less restrictive state policies, and revived natural gas projects, is boosting domestic energy supply and expanding export markets. This growth strengthens global alliances by positioning the U.S. as a key energy supplier while offering a chance to reduce the $37 trillion national debt through increased export revenue. The Trump administration’s reversal of Biden’s LNG export ban is projected to generate billions over decades, creating jobs, boosting GDP, and increasing tax and royalty revenues. Additionally, smart land management, as suggested by Sen. John Kennedy, could unlock billions annually from public lands through activities like mineral harvesting and oil drilling, reversing restrictive Biden-era policies. By leveraging energy exports and domestic production, the U.S. can generate significant revenue streams to address the national debt, easing the financial burden on Americans. [MDN: Oil and gas to the rescue! Our abundant recources, exported, will help lower the massive debt burden from our great-grandchildren.]
INTERNATIONAL
WTI edges up as OPEC+ meeting looms
Bloomberg/Mia Gindis, Alex Longley
Oil prices stabilized as traders navigated mixed signals following U.S. military strikes on Iran’s nuclear program, with West Texas Intermediate settling at $65.24 per barrel and Brent at $67.73. The Financial Times reported that Iran’s enriched uranium stockpile remained largely intact, while President Trump denied claims that Iran moved nuclear material before the strikes. Concurrently, Iran suspended cooperation with the UN nuclear watchdog, adding tension. Speculation about U.S. incentives to restart talks with Iran, possibly easing sanctions, tempered price gains, despite Trump’s remarks that sanctions have not deterred China from buying Iranian oil. The White House confirmed no immediate plans to refill the Strategic Petroleum Reserve or engage in nuclear talks with Tehran. A fragile Israel-Iran ceasefire and a deflated geopolitical risk premium contributed to oil’s recent two-day decline, the largest since 2022. Attention now shifts to an OPEC+ meeting on July 6 to determine August production levels. [MDN: The lefties at Bloomberg hate Trump and refuse to give him credit for the brilliant surgical strike against Iran’s nuke facilities. Whatever. The point of this blurb is to keep you informed on the price of oil, which sits in the perfect $60s.]
Russia wants to supply Mexico with LNG, bypassing U.S.
NGI’s Daily Gas Price Index/Christopher Lenton
Russian authorities have proposed supplying liquefied natural gas (LNG) to Mexico and sharing advanced oil and gas extraction technologies, as announced by the Russian Embassy in Mexico. Russian Energy Minister Sergei Tsivilev highlighted Russia’s LNG expertise and willingness to collaborate with Mexican partners, with Russian oil company PJSC Lukoil already active in Mexico’s offshore Ichalkil and Pokoch fields alongside Grupo Carso. However, Mexico’s LNG imports are minimal, primarily for backup, and it has not imported LNG from Russia. U.S. pipeline gas dominates Mexico’s supply, meeting 70-80% of its daily needs, with exports rising to 7.85 Bcf/d in May 2025. Analysts suggest Russian LNG would struggle to compete on price, with shipping costs from Russia’s Sakhalin Island to Mexico’s Manzanillo estimated below $1.00/MMbtu. Amid geopolitical tensions, including U.S. tariffs and Mexico’s push for energy independence, experts like Gonzalo Monroy dismiss Russian LNG’s relevance, calling it “much ado about nothing.” [MDN: We trust the Trump admin is keeping a close eye on this and will not let it happen.]
DOE secretary joins criticism of energy agency’s oil forecast
Axios
U.S. Energy Secretary Chris Wright has joined Republican criticisms of the International Energy Agency’s (IEA) prediction that global oil demand will peak this decade, calling it “nonsensical” in a Breitbart interview. Wright argues that rising global energy consumption, driven by seven billion people aspiring to higher living standards, contradicts the IEA’s outlook. He suggested the IEA and the U.S. Energy Information Administration have become politicized. The IEA’s executive director, Fatih Birol, defends their projections, stating they align with mainstream analyses and foresee only gentle oil demand declines post-peak through 2050 under current policies. The controversy highlights tensions with the Paris-based IEA, which the U.S. helps fund, as dissatisfaction grows among Trump administration officials and Senate Majority Whip John Barrasso, a vocal IEA critic. Observers are watching whether Trump officials will push for changes at the agency amid ongoing debates over energy policy and forecasts. [MDN: Wright is 100% correct. The IEA is a joke. Fatih Birol is an anti-fossil fuel nut. The entire organization needs to be defunded by the U.S. and left to twist in the wind.]