MDN’s Energy Stories of Interest: Wed, Jul 2, 2025 [FREE ACCESS]

OTHER U.S. REGIONS: Industry bodies look at Texas upstream employment in May; Cuomo blew it by shutting down Indian Point Nuclear plant with no “plan B”; NATIONAL: Fracking is America’s (not so) secret weapon; Natural gas becoming preferred power method among data center operators; Senate delivers pro-energy tax reforms; One Big, Beautiful Bill remains a win for American energy; INTERNATIONAL: Oil gains as Mideast tensions reignite; Quiet archipelago’s embrace of hydrocarbons speaks loudly; The Iranian threat to global oil supply chains remains.

OTHER U.S. REGIONS

Industry bodies look at Texas upstream employment in May
Rigzone/Andreas Exarheas
In May 2025, Texas upstream oil and gas employment reached 208,200 jobs, a 5,000-job increase from the previous year, according to the Texas Oil & Gas Association (TXOGA). Data from the Texas Workforce Commission showed a 2,200-job rise from April to May, with a total of 7,300 jobs added in the first five months of 2025. The Texas Independent Producers and Royalty Owners Association (TIPRO) reported that, among 19 industry sectors, Gasoline Stations with Convenience Stores led with 2,158 job postings, followed by Support Activities for Oil and Gas Operations (2,015) and Petroleum Refineries (775). TIPRO also noted significant tax contributions, with Texas energy producers paying $436 million in oil production taxes in April. Despite market uncertainties, the industry remains a key economic driver, supported by record U.S. crude oil production of 13.5 million barrels per day in Q2 2025. [MDN: Although Texas and the M-U states of PA, OH, and WV are two different kettle of fish, employment in O&G in Texas often (not always) indicates what’s happening in the M-U. They tend to track together.]

Cuomo blew it by shutting down Indian Point Nuclear plant with no “plan B”
Energy Security and Freedom/Doug Sheridan
The article argues that former New York Governor Andrew Cuomo’s decision to shut down the Indian Point nuclear power plant was a grave mistake with significant environmental and economic consequences. It highlights that the closure, driven by political pressure and safety concerns amplified by groups like Riverkeeper, led to a 35% increase in carbon emissions from in-state electricity generation and a 46% rise in carbon intensity, as natural gas replaced nuclear power. The article criticizes the move as undermining New York’s clean energy goals, noting that Indian Point provided 26% of New York City’s electricity with zero emissions. It also points out the economic impact, with soaring utility bills for New Yorkers. The piece suggests that new nuclear plants are now being considered to address the resulting energy shortfall, framing Cuomo’s decision as a shortsighted political move that prioritized optics over practical energy and environmental outcomes. [MDN: Cuomo was a disaster for this state. No wonder he couldn’t even score a nomination for mayor of NYC over an avowed Communist. Current Gov. Kathy Hochul now seeks to build a new nuke to replace the closed Indian Point. The new plant will be hundreds of miles away and require new high-power lines to connect it to NYC to fix Cuomo’s mess.]

NATIONAL

Fracking is America’s (not so) secret weapon
RealClearEnergy/Jim Welty, Rob Brundrett, Charlie Burd
The article highlights hydraulic fracturing’s critical role in transforming the U.S. into the world’s leading oil and gas producer, surpassing Saudi Arabia and Russia. Fracking has driven economic growth, creating millions of jobs, boosting GDP by $7 trillion, and saving consumers over $2 trillion through lower energy prices. It has also enhanced energy security by reducing reliance on foreign oil, reversing a 40-year export ban, and positioning the U.S. as a net petroleum exporter. Environmentally, fracking has cut CO2 emissions by shifting power generation from coal to cleaner natural gas, with U.S. emissions dropping nearly 11% over 14 years. Despite opposition from environmentalists citing water contamination and seismic risks, studies, including a five-year EPA report, confirm fracking’s safety when properly managed. The article argues that banning fracking would trigger economic devastation, higher energy costs, and increased reliance on adversarial nations, undermining U.S. energy dominance. [MDN: Excellent post co-written by the heads of the Marcellus Shale Coalition, Ohio Oil and Gas Association, and the Gas and Oil Association of West Virginia.]

Natural gas becoming preferred power method among data center operators
San Antonio (TX) WOAI-TV NBC
A recent report highlights the growing preference for natural gas as a power source for data centers, driven by the need for reliable and cost-effective energy to support the booming digital economy. In West Texas, where wind and solar power are abundant, developers of major data center projects, such as the Stargate facility, are opting for natural gas due to its consistent availability and scalability. This trend is fueled by the surging demand for data centers to support artificial intelligence and other advanced technologies, which require immense and uninterrupted power. Natural gas offers a stable energy supply, making it attractive for large-scale operations. Despite the push for renewable energy, natural gas remains a key power source for data centers due to its price effectiveness and ability to meet the high energy demands of these critical infrastructures. [MDN: Natgas is the only reliable, cheap, low-carbon energy source for data centers. It’s obvious.]

Senate delivers pro-energy tax reforms
Energy Workforce & Technology Council
The Energy Workforce & Technology Council praised the U.S. Senate’s passage of the “Big Beautiful Bill,” a budget reconciliation bill that includes key energy provisions to bolster the U.S. oil and gas industry. The bill reinstates and reforms offshore and onshore lease sales, delays the methane fee, and fosters stability for energy sector investments, job growth, and global energy security. Energy Workforce President Tim Tarpley emphasized that the bill provides reliable policy to support member companies in innovation and maintaining America’s energy workforce. The legislation is expected to drive demand for energy services, technology, and workforce deployment across the supply chain. The Council commended Senate leadership and urged the House to swiftly pass the bill, while also advocating for continued collaboration on unresolved issues like permitting reform to further strengthen American energy dominance. [MDN: The Energy Workforce likes the Senate-passed bill. Let’s hope the House finishes any last-minute changes and gets it to Trump’s desk by Friday.]

One Big, Beautiful Bill remains a win for American energy
Independent Petroleum Association of America (IPAA)
The Independent Petroleum Association of America (IPAA), led by President & CEO Jeff Eshelman, celebrated the U.S. Senate’s passage of the budget reconciliation bill, dubbed President Trump’s “One Big, Beautiful Bill,” for its benefits to the oil and natural gas industry. The legislation reinstates lease sales for federal lands, reforms permitting processes, and protects key tax provisions like intangible drilling costs, percentage depletion, and carried interest deductions, which are vital for independent producers. While disappointed by the lack of a full repeal of the Methane Emissions Reduction Program (MERP), IPAA welcomed the 10-year delay, allowing time to develop alternative solutions for smaller producers. Eshelman commended Senate Majority Leader Thune for unifying support and urged swift action to send the bill to President Trump. IPAA collaborated with groups like the U.S. Chamber of Commerce and National Association of Manufacturers to advocate for the bill, including permanent extensions of the 2017 Tax Cuts and Jobs Act reforms. [MDN: IPAA is also on board with the Trump bill. Yes, MERP should have been gutted, but a 10-year delay helps. This is how sausage-making is done in the D.C. swamp.]

INTERNATIONAL

Oil gains as Mideast tensions reignite
Bloomberg/Mia Gindis, Catherine Cartier
Oil prices experienced a slight increase due to resurfacing tensions in the Middle East, prompting cautious trading. West Texas Intermediate rose by 0.5% to settle at 65.45 per barrel, while Brent closed at $67.11. The uptick followed heightened geopolitical concerns, though trading volumes were lower ahead of the U.S. July 4 holiday. The article highlights that market focus remains on the fragile balance in the region, with ongoing uncertainties influencing trader sentiment. Despite the modest gains, the oil market is navigating a complex landscape, with potential disruptions in the Middle East continuing to play a significant role in price dynamics. The report underscores the cautious approach of traders as they monitor developments in the energy-rich region, balancing geopolitical risks with expectations of stable or increasing oil supply in the near term. [MDN: Contrary to Bloomberg’s misleading headline, oil barely moved up. It’s still firmly entrenched in the $60s, right where it belongs.]

Quiet archipelago’s embrace of hydrocarbons speaks loudly
RealClearEnergy/Vijay Jayaraj
Indonesia, the world’s fourth most populous nation, is prioritizing fossil fuels to drive its economic growth, projected to exceed 5% annually, as outlined in Vijay Jayaraj’s article on RealClearEnergy. Unlike Western nations fixated on reducing carbon emissions, Indonesia views hydrocarbons—coal, oil, and gas—as essential for reliable energy and economic success, not merely a transitional resource. Coal powers over 60% of its electricity, while oil fuels transportation and supply chains. The country is investing heavily in fossil fuel infrastructure, including pipelines, refineries, and export terminals, and is exploring increased imports of Russian oil and gas, with talks involving a $24 billion investment from Rosneft for the Tuban oil refinery. Indonesia’s pragmatic approach, driven by limited renewable energy options and a focus on affordability and reliability, positions it as a model for other developing nations, challenging the global push for rapid decarbonization. [MDN: We like everything about Indonesia’s plans and practices—except for importing Russian oil and gas. That should not happen. We should lean on Indonesia to ensure it doesn’t happen.]

The Iranian threat to global oil supply chains remains
Forbes/Michael Lynch
The Forbes article by Michael Lynch, published July 1, 2025, discusses the ongoing threat Iran poses to global oil supply chains following U.S. bombings of its nuclear facilities. Despite a temporary de-escalation after Iran’s restrained attack on a U.S. base in Qatar, the risk of disruption persists due to potential Iranian retaliation, such as drone or missile attacks on oil shipping in the Arabian/Persian Gulf or targeting Saudi oil fields. Such actions could mirror past supply chain disruptions, potentially driving oil prices above $100 per barrel due to hoarding and uncertainty. While Saudi production or strategic reserves could offset Iran’s 1.5 million barrels daily export loss, political hesitancy might limit this response. The article warns that without significant changes in Iran’s regime, the threat to energy security remains, drawing parallels to Saddam Hussein’s oil field destruction, urging vigilance against complacency. [MDN: Make no mistake, the Iranians are still a threat and should be treated as such.]