MDN’s Energy Stories of Interest: Wed, Jun 4, 2025 [FREE ACCESS]
MARCELLUS/UTICA REGION: Alternative energy proposal presses on, clears PA House panel; OTHER U.S. REGIONS: Glenfarne announces over $115 billion of strategic partner interest for Alaska LNG; Chevron confirms job cuts to Rigzone; US Energy Secretary issues emergency order for Midwest; NATIONAL: US LNG exports decline in May from April’s record; Gulf Coast LNG interruptions persist as natural gas futures tread water; Crude below $65 squeezes U.S. shale, even as drivers celebrate; Natural gas price outlook – natural gas continues to see range; Siemens Energy, Eaton partner on offgrid natural gas power plant for data center sector; Wall St. is all in on A.I. data centers, but are they the next bubble?; Green fairy tales are coming soon to your inbox; INTERNATIONAL: ‘Europe’s largest’ hydrogen-based e-fuels plant inaugurated in Germany; Oil extends gains as Canada wildfires offset OPEC+ output hike; Japan’s gas industry allows gas with carbon capture in 2050 net zero plan.
MARCELLUS/UTICA REGION
Alternative energy proposal presses on, clears PA House panel
The Center Square – Pennsylvania
In Pennsylvania, a proposed bill requiring 35% of electricity generation from renewable sources within a decade has advanced from the House Environmental Resources and Energy Committee with a 16-9 vote, led by first-term Democrat Rep. Elizabeth Fiedler. The legislation aims to boost renewable energy production, create union jobs, and provide grants for municipalities hosting renewable projects, while also increasing energy efficiency and solar generation in schools and low-income areas. Critics, including Republican Rep. Martin Causer, argue it could raise consumer energy costs and destabilize the grid, citing a 2022 study estimating a $5,300 annual cost increase per household. Supporters counter that federal subsidies from the Inflation Reduction Act would offset costs, and the bill could save money through efficiency and health benefits from reduced fossil fuel reliance. The proposal, backed by environmental and labor groups, now awaits further House action. [MDN: This idiotic bill is DOA (dead on arrival) in the GOP-controlled Senate if (a big if) it passes a full House vote. Frankly, it’s not even news that this bill squeaked out of a Democrat-controlled House panel. It’s dead dead dead.]
OTHER U.S. REGIONS
Glenfarne announces over $115 billion of strategic partner interest for Alaska LNG
Glenfarne Alaska LNG, LLC, a subsidiary of Glenfarne Group, LLC, has completed the first round of its strategic partner selection process for the Alaska LNG project, attracting over $115 billion in interest from more than 50 companies across the U.S., Europe, India, Japan, South Korea, and Taiwan. The project, designed to deliver North Slope natural gas to domestic and international markets via an 807-mile pipeline and a 20 million-tonne-per-year export facility, has garnered significant attention due to its advantaged economics, fully permitted status, and strong support from federal, state, and local authorities. Glenfarne expects to make a final investment decision on the domestic pipeline phase by Q4 2025, with the project’s first phase addressing Southcentral Alaska’s energy needs. The company’s CEO, Brendan Duval, emphasized the project’s strategic importance and competitive pricing for Asian markets, reinforcing its role in enhancing energy security. [MDN: This facility, which we don’t talk about much, would deliver big quantities of U.S. LNG (produced in Alaska) mostly to Asian markets, given Alaska’s geography and location near Asia.]
Chevron confirms job cuts to Rigzone
Rigzone
Chevron notified the Texas Workforce Commission (TWC) on May 16, 2025, of an anticipated reduction of approximately 200 employees in Midland, Texas, as part of a broader effort to simplify its organizational structure and enhance long-term competitiveness, according to a letter from Chevron’s Texas State Government Affairs Manager. The TWC initially reported 800 layoffs due to a data entry error, which was later corrected to reflect the accurate figure of 200, with layoffs starting July 15, 2025, and employees receiving at least 60 days’ notice, severance, and medical coverage assistance. Chevron aims to reassign as many employees as possible and is offering transition support. This aligns with a company-wide initiative announced by Vice Chairman Mark Nelson to cut 15-20% of its workforce by 2026, focusing on portfolio optimization, technology, and global operational changes to boost efficiency and performance. [MDN: Unfortunate, but a reality in the O&G business. Industry employment has always ebbed and flowed.]
US Energy Secretary issues emergency order for Midwest
Rigzone
The U.S. Department of Energy announced that Secretary Chris Wright issued an emergency order to keep the 1,560 MW J.H. Campbell coal-fired power plant in West Olive, Michigan, operational to prevent blackouts in the Midwest, where high summer electricity demand is expected. The order, issued under Section 202(c) of the Federal Power Act and supported by President Trump’s Executive Order declaring a national energy emergency, directs the Midcontinent Independent System Operator (MISO) and Consumers Energy to ensure the plant, originally set to close on May 31, remains available. The Sierra Club criticized the decision, citing thorough prior analysis supporting the plant’s closure. MISO acknowledged the order and emphasized grid reliability efforts, aligning with the North American Electric Reliability Corporation’s assessment of elevated risks due to a tightening supply-demand balance. Trump’s broader energy executive orders aim to boost domestic energy production and infrastructure development to address the declared energy emergency. [MDN: The residents of the Midwest can thank Chris Wright for protecting them from widespread blackouts due to Joe Biden’s energy policies of trying to phase out fossil energy.]
NATIONAL
US LNG exports decline in May from April’s record
Reuters
In May 2025, U.S. liquefied natural gas (LNG) exports dropped to 8.9 million metric tons from a record 9.3 million in April, driven by plant outages and maintenance at key facilities, notably Cheniere Energy’s Sabine Pass in Texas, the nation’s largest, which saw gas flows fall to a 23-month low of 3.1 billion cubic feet per day, according to LSEG data. Freeport LNG, the third-largest producer, also faced outages. Europe remained the top destination, receiving 68% of exports, while Asia’s share was 21%, and Latin America saw a slight decline. Egypt and Bahrain purchased smaller volumes. Despite the dip, the U.S. is set to maintain its position as the world’s leading LNG exporter, with six new projects expected to add 90 million metric tons per annum by 2030. This production shift influenced global LNG prices, with Europe’s TTF benchmark rising slightly. [MDN: These things happen. The more facilities come online, the more likely it is that at least one of them is down for repairs or maintenance at some point. Still, it’s all systems go and no doubt we’ll hit new record export highs in the coming months.]
Gulf Coast LNG interruptions persist as natural gas futures tread water
NGI’s Daily Gas Price Index
July natural gas futures ended flat at $3.722/MMBtu after a volatile trading session, as traders balanced a supportive mid-June weather outlook against ongoing LNG and pipeline outages. The Nymex contract rose 2.8 cents, while NGI’s Spot Gas National Avg. climbed 7.0 cents to $2.435. Tuesday’s trading followed a 24.7-cent rally on Monday, driven by bullish mid-June forecasts and short-covering. U.S. LNG feed gas volumes hit multiweek lows due to maintenance at Cheniere Energy’s Sabine Pass facility and the Creole Trail Pipeline, with Cameron LNG also partially offline. Wood Mackenzie reported U.S. feed gas flows at 13.0 Bcf/d, below the 30-day average of 14.5 Bcf/d, while Lower 48 production dropped to 103.1 Bcf/d. Weather models predict light gas demand for the next four days, with heat building in the second half of June, though forecasts for days 10-15 may cool as they approach, raising uncertainty about sustained heat. [MDN: Hey, $3.72 is a great price! Quite happy with that kind of “treading water.” And the spot price is up too! Let’s hope it keeps going.]
Crude below $65 squeezes U.S. shale, even as drivers celebrate
OilPrice.com
Crude oil prices dropping below $65 per barrel are benefiting U.S. consumers with sub-$3 gasoline in several states, but they are severely impacting shale producers, who face rising costs and investor pressure to prioritize returns over growth. Shale operators, once profitable in the $60–$70 range, now struggle as breakeven prices in major basins like the Permian approach $70 due to increased costs for steel, labor, and frac materials, exacerbated by new tariffs on imported equipment. Companies like Coterra Energy are cutting rig activity by 30% and capital expenditures by 4%, while Diamondback Energy has signaled a potential peak in U.S. shale output for 2025, reducing production guidance and halting rig additions. Liberty Energy may cut frac crews by 15% by August. Without a price rebound or geopolitical shock, the U.S. shale industry faces a prolonged downturn, challenging its sustainability. [MDN: We disagree with the statements in this article that breakeven prices are near $70/barrel in the Permian. If that’s true, then oil drilling will cease in the Permian—and it certainly has not ceased.]
Natural gas price outlook – natural gas continues to see range
FX Empire
The article from FXEmpire, published on June 3, 2025, discusses the current state of the natural gas market, highlighting its ongoing noisy trading within a defined range but with an overall downward trend. The market initially gapped higher but has since turned slightly negative, with significant support observed near the $3.50 level, which aligns with the 50-day EMA. The author, a senior analyst with over 20 years of experience, notes that seasonal factors typically weaken demand this time of year, making it an unfavorable period for buying natural gas. Despite recent volatility, the market is expected to continue facing downward pressure due to reduced heating demand and potential economic slowdowns impacting electricity usage. The article suggests that traders should focus on the $3.50 support level as a key target, while acknowledging the market’s tendency to resist upward movements during this cyclical period. [MDN: Wise counsel from a natural gas trader, providing insights into how traders think.]
Siemens Energy, Eaton partner on offgrid natural gas power plant for data center sector
Data Center Dynamics
Siemens Energy and Eaton have partnered to develop a modular, off-grid natural gas power solution for data centers, aiming to expedite construction and address the sector’s growing energy demands. Announced on June 2, 2025, the collaboration leverages Siemens Energy’s 500MW scalable power plant design, featuring SGT-800 gas turbines, battery storage, and potential hydrogen compatibility for carbon-neutral operations. Eaton contributes electrical equipment, including switchgear, UPS, and software, to enhance system reliability and modularity. The solution eliminates the need for backup diesel generators, reduces CO2 emissions by approximately 50%, and can cut grid interconnection times by up to two years, potentially adding $2-3 billion in revenue for a 500 MW facility. This approach allows data center developers to deploy capacity quickly in locations with access to gas, water, and fiber, addressing urgent market needs while offering flexibility for future emission reductions. [MDN: This is good news indeed. Until now, it seemed that only GE Vernova was producing big gas turbines. Now Siemens is doing it. The more the better!]
Wall St. is all in on A.I. data centers, but are they the next bubble?
New York (NY) Times
Private equity firms like Blackstone are heavily investing in data centers to capitalize on the artificial intelligence boom, raising concerns about a potential real estate bubble. Blackstone, the world’s largest private equity firm, acquired Quality Technology Services (QTS) for $10 billion in 2021 and has since invested billions more to expand its data center portfolio, leasing facilities to tech giants like Amazon and Meta. These centers, critical for AI systems, require significant power and cooling infrastructure. While Blackstone’s strategic acquisitions, like QTS and Airtrunk, position it to profit from AI-driven demand, skeptics question the sustainability of this investment frenzy. High valuations and the challenge of finding buyers for these massive assets could complicate exits within the typical five-to-seven-year private equity timeline. As AI demand grows, the industry faces risks of oversupply and financial strain, prompting debate about whether data centers are a sure bet or an overhyped bubble. [MDN: Good old NYT. Always looking for even the smallest dark cloud when the sun is shining brightly. Data centers are all the rage. Investors want in. The NYT is trying to talk them down because, well, because it would improve the economy under DJT. And we can’t have that!]
Green fairy tales are coming soon to your inbox
The Empowerment Alliance (TEA)
The article from The Empowerment Alliance, titled “Green Fairy Tales: Coming Soon to Your Inbox,” criticizes the Biden administration’s green energy policies, particularly the Inflation Reduction Act (IRA), labeling them as impractical and economically harmful. It argues that the IRA’s subsidies for renewable energy are inefficient, citing examples like the high cost of offshore wind projects and electric vehicle incentives that primarily benefit the wealthy. The piece highlights the economic strain of these policies, including increased energy costs and a national debt of $37 trillion, while promoting natural gas as a cleaner, more reliable alternative that has significantly reduced emissions. The Empowerment Alliance advocates for a market-driven energy approach, urging readers to join their movement for energy independence and to reject what they call “green fairy tales” by supporting policies that prioritize affordability and practicality over ideological environmental goals. [MDN: Another excellent post from TEA calling for overturning the IRA and its Big Green handouts. Here here!]
INTERNATIONAL
‘Europe’s largest’ hydrogen-based e-fuels plant inaugurated in Germany
H2 View
Ineratec’s large-scale green hydrogen-based e-fuels plant, “Era One,” in Frankfurt, Germany, has officially begun commercial operation, marked by an inauguration ceremony on June 3, following the production of its first synthetic e-fuel last month. Recognized as Europe’s largest e-fuels project, the plant is expected to produce up to 2,500 tonnes of e-fuel annually, utilizing hydrogen and CO2 from biogenic sources, such as a nearby biogas plant, to create synthetic crude oil for sustainable aviation fuels (SAF), marine fuels, and e-diesel. Construction started in 2023, with commissioning originally planned for 2024, supported by a €40m venture debt loan from the European Investment Bank and a €30m grant from Breakthrough Energy Catalyst. While Era One leads in Europe, Infinium’s Project Roadrunner in Texas, set to launch in 2027, aims to be the world’s largest SAF facility, producing 23,000 tonnes annually for International Airlines Group under a 10-year deal. [MDN: Europe is still chasing the wrong energy dream. And so is Texas, it seems.]
Oil extends gains as Canada wildfires offset OPEC+ output hike
Bloomberg/Rigzone
Oil prices rose for a second consecutive day, with West Texas Intermediate climbing 1.4% to settle above $63 a barrel, driven by supply disruptions from wildfires in Alberta, Canada, which halted nearly 350,000 barrels a day of heavy crude production. This offset OPEC’s recent decision to increase supply, which was in line with expectations and eased fears of a larger output hike. Strong U.S. hiring data and a weaker dollar, hitting its lowest level since July 2023, further supported prices. However, oil remains down 12% this year due to OPEC’s shift from curbing output to boosting supply and concerns over trade wars impacting demand. Geopolitical tensions, including U.S. restrictions on Iran’s uranium enrichment and Ukraine’s drone attack on Russian infrastructure, also influenced market dynamics. Analysts warn that crude markets may struggle to absorb additional OPEC barrels in the coming months as Gulf exports are expected to rise. [MDN: Frankly, we’re tired of breathing Canadian smoke (here in NY) because Canada refuses to control its wildfires with good firefighting practices (trying to be “green”). It’s time to start sending a bill to Canada for the smoke they keep allowing over the U.S. WTI for July delivery rose 1.4% to settle at $63.41 a barrel in New York. Brent for August settlement climbed 1.5% to settle at $65.63 a barrel.]
Japan’s gas industry allows gas with carbon capture in 2050 net zero plan
Reuters
The Japan Gas Association has adopted a more flexible approach to achieve carbon neutrality by 2050, allowing increased use of natural gas paired with carbon capture or other decarbonization measures, as announced on June 3, 2025. Initially targeting 90% e-methane, 5% biogas, and 5% hydrogen by 2050, the association now aims for 50-90% of gas supply from e-methane or biogas and 10-50% from natural gas with carbon capture, reflecting a shift prompted by global energy supply uncertainties following Russia’s invasion of Ukraine and the emergence of new decarbonization options. This adjustment aligns with Japan’s broader energy strategy, balancing energy security and decarbonization goals, as the country, a major carbon emitter, seeks to reduce reliance on fossil fuels, which currently account for 70% of its electricity, while expanding renewables and nuclear power to meet its net-zero emissions target. [MDN: So-called net zero is a fool’s errand. Chasing it is ignorant. But, if we must pursue it (for appearances), this is the way to do it. Allow natural gas with carbon capture to qualify as “green” and net-zero worthy.]