MDN’s Energy Stories of Interest: Mon, Jun 2, 2025 [FREE ACCESS]

OTHER U.S. REGIONS: Trump rides to the Northeast’s energy rescue; NATIONAL: States are rolling out red carpets for data centers, some lawmakers are pushing back; Upstream natural gas valuations, a big year; Trump’s ‘beautiful’ bill casts a cloud over hydrogen’s future; The Inflation Reduction Act must be repealed—all of it; INTERNATIONAL: Oil dips after US-China trade tensions flare; OPEC+ countries to ‘implement production adjustment’ of 411K bpd in July.

OTHER U.S. REGIONS

Trump rides to the Northeast’s energy rescue
Wall Street Journal
President Trump’s energy policy, potentially involving a deal with New York Governor Kathy Hochul, could lower energy costs in New York and New England by increasing access to affordable natural gas from Pennsylvania’s Marcellus shale. Interior Secretary Doug Burgum recently lifted a pause on a Long Island wind farm, a priority for New York Democrats, hinting at a possible trade-off for approving critical gas pipeline capacity. Previously, New York’s pipeline restrictions, driven by environmental concerns and protests led by figures like Robert F. Kennedy Jr., have led to significantly higher electricity and heating costs in the region compared to Pennsylvania. These restrictions also threaten the energy grid’s reliability, especially with high-demand projects like a planned Micron semiconductor plant. Hochul’s openness to new energy projects and reports of revived pipeline plans suggest a potential deal, despite her denial of a quid-pro-quo, which could economically benefit the region while navigating tensions with the climate lobby. [MDN: An op-ed which closes with an admonition to Hochul, “if she’s smart” (which she isn’t): “If the Governor were smart, she’d take the gift the Trump team is handing her and try to ride it to re-election next year.”]

NATIONAL

States are rolling out red carpets for data centers, some lawmakers are pushing back
Associated Press
The rapid expansion of data centers, driven by the surging demand for artificial intelligence and cloud computing, has prompted U.S. states to offer substantial financial incentives to attract these facilities, seen as economic boons. However, this growth has sparked resistance from lawmakers and communities concerned about the massive land, electricity, and water requirements of these energy-intensive centers. States like West Virginia, Utah, and Oklahoma have introduced legislation to facilitate data center development, with some offering tax breaks or allowing companies to secure their own power supplies. Meanwhile, critics argue these centers create few long-term jobs and strain local resources, leading to legislative battles over energy efficiency standards and environmental impacts. For instance, South Carolina passed laws to expedite power plant construction for data centers, while Microsoft paused a $1 billion Ohio project, reflecting a broader reassessment of the balance between economic benefits and resource demands. [MDN: PA is in danger of missing out. Yes, several large facilities have announced, but it could be many more. From the article: “Pennsylvania has companies that are interested, we have a labor force that is capable and we have a lot of water and natural gas,” said state Rep. Eric Nelson. “That’s the winning combination. We just have a bureaucratic process that won’t open its doors.” Sad.]

Upstream natural gas valuations, a big year
Forbes
In 2025, natural gas producers are experiencing a surge in optimism and valuation metrics despite oil market uncertainties, as outlined in a Forbes article by Bryce Erickson. The rise is driven by increasing electricity demand, fueled by commercial growth, manufacturing onshoring, and AI-powered data centers, with natural gas playing a key role alongside renewables like solar. The U.S. Energy Information Administration (EIA) forecasts a 50% increase in electricity demand by 2040, boosting natural gas demand despite abundant reserves. However, low-cost wells profitable below $3.00 per mcf are dwindling, and fracking’s resource-intensive nature is raising capital efficiency concerns. High EBITDAX multiples for companies like Comstock Resources reflect this long-term demand outlook. While technological advancements have improved extraction, the depletion of prime shale acreage poses challenges for sustained profitability, signaling a complex but promising future for natural gas valuations. [MDN: Erickson says this in closing: “Add all of this up and it seems investors see cash flows picking up significantly in the future for upstream natural gas producers. It shows in robust EBITDAX multiples that investors in Expand Energy, EQT, Comstock Resources, Range Resources, Antero Resources, and the like appear to be eagerly looking forward to what comes next.”]

Trump’s ‘beautiful’ bill casts a cloud over hydrogen’s future
OilPrice.com
President Trump’s recently passed House bill, dubbed the “Big, Beautiful Bill,” threatens the future of the U.S. green hydrogen industry by proposing to repeal key clean energy tax credits, including the Section 45V hydrogen subsidy and the Section 48 Investment Tax Credit, which support low-carbon hydrogen and ammonia projects. This legislation, aimed at funding tax cuts and increased spending on defense and immigration through cuts to the 2022 Inflation Reduction Act, jeopardizes major projects in states like Louisiana, a burgeoning hydrogen hub. Companies such as Air Products, CF Industries, and Plug Power warn that the loss of 45V credits could render low-carbon hydrogen economically unviable, impacting job creation and sustainability goals. While carbon capture retains its 45Q tax credits for now, the bill’s passage in the Senate could severely hamper the renewable energy sector, particularly green hydrogen and EV battery industries, despite their potential to decarbonize heavy industry. [MDN: We’re not talking about simple tax credits, we’re talking about giving taxpayer money away to companies to fool around with producing hydrogen via methods like using unreliable renewable electricity to split water into hydrogen and oxygen. It’s STUPID. And we don’t need to fund it. Goodbye and good riddance!]

The Inflation Reduction Act must be repealed—all of it
Townhall.com
In his Townhall column, Frank Lasee, a former Wisconsin state senator, vehemently calls for the complete repeal of the Inflation Reduction Act (IRA), arguing it was falsely marketed as an inflation-fighting measure but instead exacerbates economic issues through government overreach and excessive spending. He describes the IRA as a $1.9 trillion “power grab” disguised as green policy, funneling taxpayer money into unreliable wind and solar projects while undermining affordable energy sources like coal and natural gas. Lasee contends that the Act increases energy costs, strains the electric grid, and fuels inflation, burdening families already struggling with high bills. He criticizes its subsidies for inefficient green technologies and asserts that it contributes to the $36.5 trillion national debt. Lasee urges Congress to eliminate the IRA entirely, emphasizing that partial reforms are insufficient to address its detrimental economic and energy impacts. [MDN: We agree with Lasee. Repeal ALL of the misnamed IRA. NOW.]

INTERNATIONAL

Oil dips after US-China trade tensions flare
Bloomberg/Rigzone
Oil prices dipped slightly after a volatile session, with West Texas Intermediate (WTI) settling near $61 a barrel, driven by mixed signals from U.S.-China trade talks. President Trump’s accusations of China violating trade agreements and threats to expand tech restrictions initially sank futures, raising fears of reduced oil demand due to a potential tariff war. However, prices later stabilized as Trump expressed willingness to engage with Chinese President Xi Jinping. Meanwhile, OPEC+ is reportedly considering increasing output by over 411,000 barrels daily in July, fueling expectations of an oil glut as non-OPEC supply grows and global inventories build. Geopolitical risks, including Russia and Iran tensions, and Libya’s threat to cut up to 600,000 barrels daily amid political unrest, provided some price support. Additionally, wildfires threatening 9% of Canada’s crude output and a strong WTI front-month premium signaled near-term market tightness, despite increased short positions by commodity traders. [MDN: WTI for July delivery fell 0.2% to settle at $60.79 a barrel in New York. Brent for July settlement, which expires Friday, was 0.4% lower at $63.90 a barrel. Still great numbers in our opinion.]

OPEC+ countries to ‘implement production adjustment’ of 411K bpd in July
Rigzone
OPEC+ countries, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, announced a production adjustment of 411,000 barrels per day for July 2025, following a virtual meeting on May 31, 2025, to assess global oil market conditions. This decision aligns with a prior agreement to gradually return 2.2 million barrels per day of voluntary adjustments starting April 2025, with flexibility to pause or reverse increases based on market dynamics. The adjustment, equivalent to three monthly increments, aims to maintain oil market stability while allowing these countries to accelerate compensation for overproduced volumes since January 2024. The group emphasized full commitment to the Declaration of Cooperation and will hold monthly meetings, with the next scheduled for July 6, 2025, to determine August production levels. Brent crude rose 2.4% to $64.3 per barrel following the announcement, reflecting market confidence. [MDN: What this means is that the thug dictators of OPEC+ are adding nearly a half million barrels more of production in July than in June, flooding the market, which will lead to lower oil prices.]