MDN’s Energy Stories of Interest: Tue, Jul 1, 2025 [FREE ACCESS]

MARCELLUS/UTICA REGION: Pa.’s muddled leadership loses to Ohio, W.Va.; OTHER U.S. REGIONS: California’s net-zero emissions plan is a ‘national security’ risk for America; Louisiana Gov. Jeff Landry doesn’t just talk the talk, he walks the walk on energy dominance; NATIONAL: Fueling defense – the future of the United States Airforce; With ethane as a bargaining chip, energy becomes a weapon in talks with China; Senate adds two-year extension of hydrogen tax credit to budget bill; What Alex Epstein told Thom Tillis about terminating new solar/wind subsidies using “placed in service”; INTERNATIONAL: LNG Canada dispatches first cargo; Oil slips as traders weigh OPEC+ hike; CO2 sustains greenhouse farming revolution.

MARCELLUS/UTICA REGION

Pa.’s muddled leadership loses to Ohio, W.Va.
Pittsburgh (PA) Tribune-Review/Gordon Tomb
In the article, Gordon Tomb criticizes Pennsylvania’s leadership for failing to capitalize on the state’s natural gas resources, allowing Ohio and West Virginia to outpace it economically. Tomb argues that Pennsylvania’s burdensome regulations and high business taxes have driven companies like Shell to invest in neighboring states, where policies are more favorable. He highlights Ohio’s rapid approval of a similar petrochemical plant and West Virginia’s tax cuts and deregulation as reasons for their success in attracting energy investments. Tomb contends that Pennsylvania’s leaders, including Governor Josh Shapiro, must reduce regulatory barriers and taxes to restore the state’s competitiveness. He emphasizes the potential for job creation and economic growth through natural gas and related industries, warning that without decisive action, Pennsylvania risks further economic decline while Ohio and West Virginia continue to thrive. [MDN: As Tomb points out, Shapiro is damaging PA’s energy and economic future. Will PA voters do the right thing and vote him out at the next election? Doubtful. Too many lib Dems in Philly. It’s quite sad.]

OTHER U.S. REGIONS

California’s net-zero emissions plan is a ‘national security’ risk for America
America Out Loud News/Ronald Stein, Nathan Hammer
California’s net-zero emissions plan, targeting carbon neutrality by 2045, is a national security risk, argues Ronald Stein in an America Out Loud News article. The state’s push for 100% zero-emission vehicles by 2035 and reliance on intermittent wind and solar energy threatens the stability of the electric grid, critical for military and civilian operations. This shift increases dependence on foreign-sourced minerals for batteries and renewable infrastructure, weakening energy security. Stein highlights that California’s electricity costs, already 80% above the national average, burden residents and businesses, potentially undermining economic stability. The plan’s focus on renewables over reliable sources like nuclear or fossil fuels could disrupt power supply, risking blackouts and compromising defense capabilities, as the U.S. military relies on consistent energy. Stein warns that prioritizing ideological climate goals over proven energy solutions endangers national security by creating vulnerabilities in the energy system and economy. [MDN: Stein is right again. Cali is endangering the entire country. Time to rein them in.]

Louisiana Gov. Jeff Landry doesn’t just talk the talk, he walks the walk on energy dominance
RealClearEnergy/Diana Furchtgott-Roth
Louisiana Governor Jeff Landry has actively supported President Donald J. Trump’s energy plans by signing Act 462 (formerly HB 692), a law prioritizing fossil fuel and nuclear power production over wind and solar in Louisiana. Sponsored by Rep. Jacob Landry, the legislation mandates the Louisiana Department of Energy and Natural Resources to focus on domestic fuel sources, redefining green energy to include nuclear power and natural gas. This move aligns with Louisiana’s lack of mandates for wind and solar electricity production, emphasizing reliable and affordable energy to bolster the state’s economy. The article highlights Landry’s commitment to energy dominance, noting Louisiana’s competitive electricity rates at 13 cents per kilowatt hour, below the U.S. average, and suggests this law sets a precedent for prioritizing energy independence and economic growth through traditional energy sources, potentially influencing national energy policy under supportive federal leadership. [MDN: Too bad Landry isn’t the governor of Pennsylvania. PA needs a good energy-focused governor who will leverage the state’s abundant Marcellus Shale gas. Shapiro is NOT that governor.]

NATIONAL

Fueling defense – the future of the United States Airforce
American Gas Association
The United States Air Force (USAF), the world’s largest air force, relies heavily on advanced fuels, with natural gas playing a critical role in its operations, a significance expected to grow with the development of synthetic fuels. The USAF primarily uses JP-8, a kerosene-based fuel derived from petroleum, supported by the U.S.’s vast petroleum reserves unlocked by the 2008 Shale Revolution, reducing reliance on foreign imports. Natural gas is pivotal in producing low-cost, carbon-neutral synthetic jet fuels, particularly through processes like steam reformation to create blue hydrogen, where captured CO2 is combined with hydrogen to produce synthetic kerosene. Existing natural gas infrastructure could facilitate on-site fuel production at military bases, enhancing efficiency and security by minimizing the need to transport or store hydrogen. The article highlights the growing importance of natural gas in ensuring the USAF’s operational resilience and future fuel sustainability. [MDN: Natgas to the rescue! We should be using more natgas to power our military. It’s happening.]

With ethane as a bargaining chip, energy becomes a weapon in talks with China
RBN Energy/Kristen Holmquist
The article discusses how ethane, a key petrochemical feedstock, has become a strategic bargaining chip in U.S.-China trade negotiations. In June 2025, a trade deal was announced that may lift the U.S. Bureau of Industry and Security’s (BIS) licensing requirement for ethane exports to China, which accounts for two-thirds of U.S. ethane exports (about 225 Mb/d in 2024). This restriction, imposed in May 2025, disrupted trade flows and risked forcing U.S. producers to redirect surplus ethane into natural gas streams, impacting domestic markets. The deal’s sparse details suggest ongoing negotiations, with potential vessel fees on Chinese-operated ships adding complexity. The article highlights the broader implications of using energy as a trade weapon, including risks to U.S. midstream firms and the petrochemical industry, while noting the Environmental Protection Agency’s proposed Renewable Volume Obligations for 2026-27, which could further complicate compliance costs amid efforts to control prices. [MDN: A rare time we disagree with RBN experts. What is the alternative to “using energy as a trade weapon”? Just allow China to continue to screw us until they take us over?! NO. It’s now or never. We must stand up to the Commies and fight them with every trade, political, and other non-combat weapon we have now, so we don’t have to fight them with our young people later. Suck it, buttercup. If messing with ethane export markets for a while is the price to be paid, so be it. Maybe Enterprise and ET should pick their customers better in the future.]

Senate adds two-year extension of hydrogen tax credit to budget bill
RBN Energy/Jason Lindquist
The U.S. Senate Finance Committee has proposed extending the Section 45V clean hydrogen production tax credit by two years, allowing projects starting construction by January 1, 2028, to qualify, as part of the budget reconciliation bill, according to RBN Energy. This extension contrasts with the House’s plan to terminate the credit by 2026, offering hydrogen producers a longer window to secure the credit, which provides up to $3/kg for low-carbon hydrogen based on emissions intensity. The Senate’s draft also softens other clean energy credit cuts compared to the House, preserving transferability and supporting technologies like battery storage, geothermal, and hydropower until 2036, while phasing out wind and solar credits by 2028. Additional measures include stricter emissions tracking and reporting for hydrogen projects. The Senate aims to balance fiscal responsibility with clean energy support, with final negotiations pending to reconcile differences with the House by July 4, 2025. [MDN: Let’s hope the House yanks this nonsense back out again before final passage.]

What Alex Epstein told Thom Tillis about terminating new solar/wind subsidies using “placed in service”
Energy Talking Points by Alex Epstein
In the article “What I Really Told Thom Tillis About ‘Placed in Service,'” Alex Epstein addresses Senator Thom Tillis’s misrepresentation of a confidential meeting regarding the “placed in service” provision in the proposed “Big Beautiful Bill.” Epstein clarifies that he explained to Tillis how this provision would terminate costly solar and wind subsidies for projects not operational by 2027, protecting near-complete projects while preventing grid reliability issues and reducing consumer costs. He refutes Tillis’s Senate floor claim that Epstein suggested the provision would harm 663,000 North Carolinians by cutting Medicaid, emphasizing that their discussion focused solely on energy policy. Epstein accuses Tillis of lying to discredit the bill and its supporters, driven by personal motives like avoiding a primary challenge, and calls for accountability, urging the release of their recorded conversation to reveal the truth about Tillis’s subsidy-driven agenda and his distortion of their energy-focused discussion. [MDN: The RINO jerk Tillis has since announced he will retire and not run again next time. Good decision as he would surely get primaried and lose. He IS a loser! And a liar.]

INTERNATIONAL

LNG Canada dispatches first cargo
Rigzone/Jov Onsat
Shell PLC and its LNG Canada partners, including Malaysia’s Petroliam Nasional Bhd., Japan’s Mitsubishi Corp., China’s PetroChina Co. Ltd., and Korea Gas Corp., have launched Canada’s first liquefied natural gas (LNG) export from the Kitimat, British Columbia facility, targeting Asian markets with a 14 million metric tons per annum capacity. The project, in which Shell holds a 40% stake, aims to support global decarbonization by supplying cleaner energy, with Asia’s growing demand driven by economic growth, emission reduction efforts, and AI sector needs. LNG Canada, in collaboration with the Haisla Nation, has awarded over CAD 5.8 billion in contracts, including CAD 4.9 billion to Indigenous and local businesses. The joint venture is considering doubling capacity through a two-train expansion. Shell projects global LNG demand to reach 630-718 MMtpa by 2040, with LNG Canada positioned to meet Asia’s rising energy needs while reducing coal dependency. [MDN: Interesting that Canada’s fossil fuel-hating Prime Minister (a lefty) is touting this milestone. He’s also delusional, saying Canada can replace the U.S. as the world’s energy superpower: “With LNG Canada’s first shipment to Asia, Canada is exporting its energy to reliable partners, diversifying trade, and reducing global emissions – all in partnership with Indigenous Peoples”, Prime Minister Mark Carney said. “By turning aspiration into action, Canada can become the world’s leading energy superpower with the strongest economy in the G7”. Canada has launched one LNG export facility, while the U.S. has launched eight such facilities with another six under construction or about to start construction.]

Oil slips as traders weigh OPEC+ hike
Bloomberg/Mia Gindis, Catherine Cartier
Oil prices dipped slightly, with West Texas Intermediate crude falling 0.6% to $65.11 per barrel after a significant 13% drop last week, marking its largest weekly decline in two years. This followed speculation about an anticipated OPEC+ supply increase of 411,000 barrels per day for August, potentially the fourth consecutive month of substantial hikes. The market stabilized around $65 as traders assessed whether summer travel demand could absorb the additional supply. A fragile Iran-Israel truce reduced geopolitical risk premiums, prompting hedge funds to increase bearish bets and commodity trading advisers to cut long positions. Focus has shifted back to supply-demand dynamics, with concerns about a potential oil glut later this year. Meanwhile, trade talks, particularly with Canada and the EU, and a slightly improved demand outlook in China due to better factory activity, are also influencing market sentiment. Brent for August, which expires Monday, edged down 0.2% to settle at $67.61. [MDN: Crude still firmly in the $60s, right were we love it.]

CO2 sustains greenhouse farming revolution
CO2 Coalition/Vijay Jayaraj
In the article by Vijay Jayaraj, the author challenges the negative perception of carbon dioxide (CO2) as a harmful gas, emphasizing its critical role as a vital plant nutrient that enhances agricultural productivity. Jayaraj argues that rising atmospheric CO2 levels, from 300 ppm in the early 20th century to over 420 ppm today, have significantly boosted plant growth and crop yields globally. He highlights that greenhouse operators intentionally increase CO2 concentrations to 800-1,000 ppm, resulting in substantial yield increases, such as 40-50% for tomatoes and 30-40% for cucumbers. The article suggests that even C4 crops like corn and sugarcane benefit from elevated CO2 under stress conditions. Jayaraj advocates for rejecting anti-CO2 hysteria, asserting that higher CO2 levels support food security and agricultural advancements, benefiting future generations through enhanced crop productivity. [MDN: CO2 is not “pollution” and is not the enemy. It is a GOOD thing! We need more CO2, not less.]