MDN’s Energy Stories of Interest: Mon, Aug 4, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: To make NY more affordable, Gov. Hochul needs to ditch her all-electric plan and push natgas; NATIONAL: Weather forecast fog keeps natural gas futures in holding pattern; BlackRock, other fund managers lose bid to dismiss Texas climate collusion lawsuit; Exxon, Chevron surpass estimates with record oil production; Brookfield acquires Colonial Pipeline; Recent legislation reveals President Trump’s regulatory approach; Democrats retreat on the Green New Deal; South Korea reaches trade deal with Trump; INTERNATIONAL: Oil sinks as slew of weak us economic data revives demand fears; OPEC+ 8 announce 547,000 bpd ‘production adjustment’ for Sept; Wetland methane emissions accelerate due to rising temperatures.
OTHER U.S. REGIONS
To make NY more affordable, Gov. Hochul needs to ditch her all-electric plan and push natgas
New York (NY) Post/Daniel Turner
Governor Kathy Hochul’s 2023 All-Electric Buildings Act, banning natural gas in new buildings under seven stories by 2029, is criticized as a misguided policy that exacerbates New York’s high living and construction costs while threatening its fragile electric grid. With energy prices 33% above the national average and a 2023 Federal Energy Regulatory Commission study warning of potential grid collapse, the ban on gas appliances like stoves and heaters is seen as a reckless move that ignores the reliability and affordability of natural gas, a resource in global demand. The policy, combined with subsidies for energy-intensive data centers, strains the grid further and raises costs for residents. Proposed solutions include delaying the all-electric mandate, promoting natural gas use, fast-tracking the Constitution Pipeline, and reopening the Indian Point nuclear plant. These steps could lower costs, stabilize the grid, and boost Hochul’s reelection prospects, given the 53% public opposition to the gas ban. [MDN: Frankly, we don’t think Hochul is smart enough or has enough political spine to dump the all-electric requirement and begin to push for natgas. She’s pathetic.]
NATIONAL
Weather forecast fog keeps natural gas futures in holding pattern
NGI’s Daily Gas Price Index/Jodi Shafto
September natural gas futures experienced volatility, settling at $3.083/MMBtu, down 2.3 cents daily and 5.9 cents since becoming the prompt month, reflecting seasonal uncertainty with fluctuating August weather patterns. The NGI Spot Gas National Average fell 3.5 cents to $2.500 amid lower demand. Weather forecasts indicated a shift from cooler to hotter conditions, particularly in the Midwest and East, with potential record-breaking heat in the Southwest. Power burn was projected to decline, and with milder weather expected, natural gas inventories were set to rise, with a recent 48 Bcf storage injection reported. Production remained strong at 106.6 Bcf/d, with companies like EQT Corp. and Expand Energy Corp. expressing optimism for sustained output. However, new tariffs introduced economic uncertainty, impacting energy markets. Spot prices weakened, with Waha prices turning negative and other hubs like PG&E Citygate and Transco Zone 4 also declining. [MDN: At least the NYMEX futures price stayed above $3.]
BlackRock, other fund managers lose bid to dismiss Texas climate collusion lawsuit
Reuters/Jody Godoy
A U.S. judge in Texas largely denied a request by major asset managers, including BlackRock, State Street, and Vanguard, to dismiss a lawsuit filed by Texas and 12 other Republican-led states, alleging the companies violated antitrust laws through climate activism that reduced coal production and increased energy prices. The lawsuit, one of the most prominent targeting environmental, social, and governance (ESG) initiatives, claims the firms formed an “investment cartel” via their participation in Climate Action 100+, an investor group focused on combating climate change. U.S. District Judge Jeremy Kernodle dismissed only three of the 21 counts, allowing the states to proceed with claims of antitrust violations. The asset managers, managing $27 trillion in assets, denied wrongdoing, with BlackRock arguing the case undermines energy independence. The ruling could impact their investment strategies, potentially forcing divestment from coal companies, which may raise energy prices. [MDN: About darned time somebody held this leftists fund managers to account for their actions. Go Texas! Go other states! Not until Larry Fink is forced out of BlackRock will the world be safe. We must end what the left calls ESG (meaning divestment from fossil fuels) for good.]
Exxon, Chevron surpass estimates with record oil production
Bloomberg/Kevin Crowley
Exxon Mobil Corp. and Chevron Corp. reported stronger-than-expected second-quarter results, driven by record oil production that offset declining crude prices. Exxon achieved its highest second-quarter output since its Mobil merger over 25 years ago, producing 4.6 million barrels daily, while Chevron hit an all-time high of nearly 4 million barrels daily, fueled by robust Permian Basin output. Both companies surpassed Wall Street forecasts despite a $20 per barrel drop in international crude prices year-over-year and a darkening demand outlook. Exxon’s CEO Darren Woods indicated openness to acquisitions following the $60 billion Pioneer deal, emphasizing strategic value. Chevron, overcoming an arbitration challenge with Exxon, boosted production by 3% and maintained buyback plans. However, both companies’ shares dipped amid a broader market decline. Chevron anticipates potential price pressure from increased OPEC+ supply but remains confident, while Exxon continues cost-cutting, targeting $4.5 billion in savings by 2030. [MDN: The bottom line is that the two largest oil companies headquartered in the U.S. are doing great. Trump has made oil great again in just six months. Amazing what a positive change in administration can do.]
Brookfield acquires Colonial Pipeline
Rigzone/Jov Onsat
Brookfield Infrastructure Partners LP (BIP) acquired Colonial Enterprises Inc., owner of the largest U.S. refined products pipeline, for a $9 billion enterprise value from a consortium including Shell, Koch Capital, KKR, La Caisse, and IFM Investors. The 5,500-mile Colonial Pipeline, stretching from Texas to New York, transports 2.5 million barrels daily, serving 45% of East Coast fuel demand across 14 states. BIP highlighted the acquisition’s attractive 9x EBITDA multiple, expecting a mid-teen cash yield and a seven-year payback, with a total equity consideration of $3.4 billion (BIP’s share ~$500 million). Shell’s divestment, valued at $1.45 billion, aligns with its focus on performance and simplification. Separately, BIP completed the sale of its 25% stake in the 9,100-mile Natural Gas Pipeline Company of America (NGPL) to ArcLight Capital for over $1.7 billion, achieving an 18% IRR. ArcLight emphasized NGPL’s critical role in meeting growing U.S. power and infrastructure demands driven by electrification and AI. [MDN: You may recall that Colonial was the victim of a ransomware attack that shut down the pipeline for five days in May 2021 (see Colonial Pipeline ransomware attack). This is that pipeline, just sold to Brookfield.]
Recent legislation reveals President Trump’s regulatory approach
The Regulatory Review/Clifford Winston
President Trump’s recent legislative victory, as outlined in a document from The Regulatory Review, reveals an inefficient, anti-government approach to deregulation that prioritizes withdrawing interventions over fostering market-driven solutions or reforming policies for better outcomes. Unlike past presidents who advanced market competition through deregulation in industries like airlines, trucking, and telecommunications, Trump’s “megalaw” fails to promote economic deregulation, such as global airline cabotage or ocean shipping reforms, or to reform inefficient policies like the Biden Administration’s electric vehicle tax credits. Instead, it eliminates these credits without replacing them with efficient alternatives like emissions taxes, ignoring the negative externalities of vehicle emissions. The law also overlooks potential market solutions, such as allowing Chinese electric vehicle producers to compete in the U.S. under strict conditions, which could enhance environmental outcomes and consumer benefits. This approach reflects a nihilistic stance, lacking faith in government and disinterest in pro-market regulatory reform, potentially harming the nation’s material quality of life. [MDN: A laughable article from a swamp dweller defending swamp dwellers. We love Trump’s approach of destroying regulations to open up free market reforms. You don’t just tweak or swap one regulation for another, as this author desires. You DESTROY regulations that have cropped up like weeds over the years, threatening to choke off our economy. That’s Trump’s much-desired approach in the OBBBA.]
Democrats retreat on the Green New Deal
Axios/Alex Thompson, Ben Geman
Democrats have significantly reduced mentions of the Green New Deal, with only six references in Congress over the past three months, the lowest since its 2018 prominence, as they shift focus to new climate change communication strategies following President Trump’s second term, which may have diminished the movement. Republicans, conversely, mentioned it 337 times, capitalizing on Trump’s “Green New Scam” narrative. The retreat stems from shaken trust in climate advocacy groups like the Sunrise Movement, which raised only $30,000 in 2025, and their failure to sell the Inflation Reduction Act or deliver young voters. While wind and solar remain popular, support has waned, particularly among Republicans, per a Pew Research poll. Some Democrats, like Jared Leopold, argue the party is overreacting to Trump’s close 2024 win and should emphasize clean energy jobs, while others, like Sen. Ruben Gallego, show flexibility on climate purism. [MDN: A sure sign we are winning! Axios, a Democrat-run publication, is admitting that Democrats have dropped their Green New Deal language. It doesn’t mean they’ve stopped desiring authoritarian dictims to force folks into their favored energy sources, but it does show they are once again hiding their true intentions behind dishonest language. It’s progress, of sorts.]
South Korea reaches trade deal with Trump
New York (NY) Times/Lydia DePillis, Choe Sang-Hun
President Trump announced a trade deal with South Korea on Wednesday, putting 15 percent tariffs on South Korean goods, much higher than they were just a few months ago but lower than Mr. Trump had threatened. Under the terms, South Korea will make $350 billion in investments in the United States and purchase $100 billion of liquefied natural gas. Mr. Trump said in a social media post that South Korea’s president, Lee Jae Myung, would visit Washington in two weeks to make further announcements. Mr. Trump had threatened to impose 25 percent tariffs on South Korea unless a deal was reached by Friday. In an important concession from Mr. Trump, South Korea’s car exports will face 15 percent tariffs, down from the rate of 25 percent that the president had already imposed on cars from most of the world. The agreement follows other trade deals that have been concluded in Asia. [MDN: Great! Another new customer for U.S. LNG exports. Trump is on a roll!]
INTERNATIONAL
Oil sinks as slew of weak us economic data revives demand fears
Bloomberg/Mia Gindis, Catherine Cartier
Oil prices plummeted, with West Texas Intermediate crude dropping 2.8% to around $67 a barrel, driven by a darkening economic outlook in the US and anticipated increases in global oil supply. Disappointing US economic data, including slowed job growth and a nine-month high in factory activity contraction, raised concerns about weakening energy demand. President Trump’s fluctuating tariff policies, though not directly targeting oil, added to economic uncertainty, further pressuring prices. Investors expect OPEC+ to increase output by 548,000 barrels per day at an upcoming meeting, exacerbating fears of an oversupply later this year. Despite robust production from companies like Exxon Mobil and Chevron, which reported strong earnings and record output, bearish sentiment dominates due to potential economic slowdown. However, bullish factors, such as Trump’s deployment of nuclear submarines in response to Russian provocations and threats of tariffs on nations buying Russian oil, provided some price support, though not enough to offset the broader decline. [MDN: Bloomberg is always doom and gloom with Trump. He’s Satan. He causes all negative things to happen to the world economy. Whatever. We love the price of oil in the $60s.]
OPEC+ 8 announce 547,000 bpd ‘production adjustment’ for Sept
Rigzone/Andreas Exarheas
On August 3, 2025, eight OPEC+ countries—Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman—announced a production adjustment of 547,000 barrels per day for September 2025, following a virtual meeting to assess global market conditions. This decision aligns with a December 2024 agreement to gradually phase out 2.2 million barrels per day of voluntary cuts starting April 2025, with the flexibility to pause or reverse the phase-out based on market dynamics. The adjustment, equivalent to four monthly increments, aims to support oil market stability while allowing these countries to accelerate compensation for overproduction since January 2024. Monthly meetings will monitor compliance and market conditions, with the next scheduled for September 7. Despite the increase, SEB’s Bjarne Schieldrop noted that higher quotas may not directly translate to higher production, and OPEC+ may adjust cuts if needed, differing from past aggressive market strategies. [MDN: A “production adjustment” means these countries will collectively increase production by half a million barrels in September. Meaning the price of oil isn’t going anywhere (at least not higher, and maybe lower).]
Wetland methane emissions accelerate due to rising temperatures
Cosmos Magazine/Richard Musgrove
Rising global temperatures are accelerating methane emissions from freshwater wetlands, threatening their critical role as carbon sinks, according to an article from Cosmos Magazine. Methane, a potent greenhouse gas 80 times more effective at trapping heat than carbon dioxide over 20 years, is produced by methanogenic archaea in waterlogged soils, with wetlands being the largest natural source. Warmer conditions boost these microbes’ activity, increasing methane output, though methane-eating bacteria (methanotrophs) consume some of it. Freshwater wetlands emit significantly more methane than saltwater ecosystems like mangroves, which store carbon effectively. Methane escapes via diffusion, plant surfaces, and bubbling (ebullition), with emissions potentially rising 6-20% per degree of warming. Global wetland methane emissions have increased significantly since 2007, particularly in tropical regions, potentially offsetting fossil fuel emission reductions. While upland forests may absorb some methane, solutions like planting trees and managing nutrient runoff are vital to mitigate rising emissions without disrupting wetlands’ ecological benefits. [MDN: This article engages in quite the mental gymnastics. It claims man-made global warming is causing more natural global warming. The problem with the article is that it’s circular. The #1 source of fugitive methane in the atmosphere comes from Mom Earth herself—from things like wetlands. So in reality, Mom Earth is causing Mom Earth to toast. Blaming it on human activity is fatuous, at best. An outright lie at worst.]