MDN’s Energy Stories of Interest: Thu, Aug 7, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: Colorado is the first state to require cigarette-style health warnings on gas stoves; Nonprofits calling for end to a pipeline project projected to run from Mississippi to Georgia; NATIONAL: Natural gas futures advance a second session; Petroleum prices reacted to economic and geopolitical uncertainty in 2Q; When the climate zealotry runs hot; How the Union Pacific-Norfolk Southern deal would boost petrochemicals; INTERNATIONAL: Oil declines as traders await Trump’s next move against Russia; Trump doubles tariff on India to 50%, sparking outrage in Delhi.
OTHER U.S. REGIONS
Colorado is the first state to require cigarette-style health warnings on gas stoves
Colorado Public Radio
Colorado became the first state to mandate cigarette-style health warning labels on gas stoves, effective August 7, 2025, requiring retailers to display bilingual labels with a URL or QR code linking to a state webpage detailing air quality risks. Signed by Gov. Jared Polis, the law aims to inform consumers about potential health impacts, such as increased risks of chronic heart and lung diseases, asthma, and cancers, as supported by studies linking gas stove emissions to respiratory issues and benzene exposure. However, the Association of Home Appliance Manufacturers filed a federal lawsuit on the same day, arguing the law violates First Amendment rights by compelling misleading information without scientific consensus. The natural gas industry and retailers opposed the law, citing concerns over subjective state information. Non-compliance is considered a deceptive trade practice, enforceable by the Colorado Attorney General, though enforcement plans remain unclear amid the litigation. [MDN: Completely ridiculous. It will be overturned by lawsuit, as it should be. We think Democrats like Gov. Polis should be required under law to wear a warning label at all times: “WARNING: This person’s (dangerously stupid) politics can physically and economically harm you.”]
Nonprofits calling for end to a pipeline project projected to run from Mississippi to Georgia
Columbus (GA) WTVM-TV ABC/Justin Brown
Kinder Morgan, a major infrastructure company, is proposing the South System Expansion 4 (SSE4) Project to expand a natural gas pipeline through east Alabama and west Georgia, aiming to enhance natural gas production for homes, businesses, and manufacturing over the next 20 to 30 years, according to Allen Fore, Vice President of Public Affairs. The project involves constructing new “Loop Lines” parallel to existing pipelines and building compressor stations to maintain gas flow. However, the Southern Environmental Law Center (SELC), led by senior attorney Megan Gibson, opposes the project, labeling it a “Fossil Fuels Superhighway” that threatens environmental harm and higher utility bills. The SELC has filed a formal complaint with the Federal Energy Regulatory Commission (FERC), criticizing the lack of thorough analysis on the project’s necessity. FERC is now reviewing evidence and project proposals and will conduct an environmental impact analysis, a process expected to take months. [MDN: This pipeline has the potential to flow M-U molecules. The SELC is a radicalized organization. However, we’re not worried that they oppose SSE4.]
NATIONAL
Natural gas futures advance a second session
NGI’s Daily Gas Price Index/Kevin Dobbs
Natural gas futures mounted further momentum on Wednesday, bolstered by domestic cooling demand, increasing export volumes and expectations for a bullish storage print. After a 7.8-cent gain the prior session, the September Nymex gas futures contract on Wednesday climbed 6.7 cents and settled at $3.077/MMBtu. NGI’s Spot Gas National Avg. rose 6.5 cents to $2.700, advancing for a third straight day this week as weather data showed widespread lofty temperatures into mid-August. “National demand increases to strong to very strong levels late this week through next week as upper high pressure strengthens, with highs of upper 80s to 100s over most regions and with little coverage of highs of 70s to lower 80s,” NatGasWeather said. “Much of the weather data maintains a relatively hot U.S. pattern for late August, with above normal” cooling degree days (CDD). LNG demand was also forging ahead amid an ongoing expansion of Gulf Coast export capacity. [MDN: This is good news indeed. Let’s keep it going!]
Petroleum prices reacted to economic and geopolitical uncertainty in 2Q
U.S. Energy Information Administration – Today in Energy
In the second quarter of 2025, energy prices, alongside other commodities, equities, and currencies, experienced heightened volatility due to economic growth concerns and geopolitical tensions in the Middle East. Brent crude oil prices, adjusted for inflation, fell from $75 per barrel in April to $64 in June, the lowest since December 2020, driven by fears of reduced global trade and investment amid escalating tariffs. Geopolitical risks, including Israel’s strikes on Iran and subsequent ceasefire, caused a brief price spike to $79 per barrel before settling at $68 by quarter-end. Refinery margins for gasoline remained near or below the five-year average due to high utilization, while diesel margins surged in June due to Middle East tensions and strong European demand. Biofuel compliance credit (RIN) prices rose over 35% from the previous quarter, driven by expectations of stricter Renewable Fuel Standard mandates, though fluctuations occurred due to potential exemptions and regulatory changes. [MDN: The price of oil fell in 2Q. Good! We like lower prices for oil.]
When the climate zealotry runs hot
Issues & Insights
The article from Issues & Insights criticizes extreme climate activism, highlighting what it describes as irrational and exaggerated rhetoric from figures like Rep. Sean Casten and climate scientist Michael Mann. Casten is quoted comparing President Trump’s reversal of the EPA’s carbon dioxide endangerment finding to mass murder, claiming it could lead to millions or billions of deaths due to climate change impacts like shifting rivers, eroding coasts, and wildfires. Mann similarly accuses Trump of misrepresenting science, likening his actions to Soviet-era Lysenkoism, and references the Second Amendment in a way the article interprets as threatening. The piece argues that such “climate zealotry” reflects desperation as activists lose influence, with some retreating from aggressive environmental mandates. It cites the American Conservation Coalition’s Danielle Franz, who notes the diminishing power of “climate hawks,” and expresses hope that this trend will lead to more reasonable discourse, while mentioning a former Greenpeace co-founder’s rejection of “climatism” as a lie. [MDN: The radical Democrat left has officially lost its collective mind. Casten is a prime example of that. They’re now making wild claims, completely divorced from reality. Quick! Somebody give Casten his Xanax.]
How the Union Pacific-Norfolk Southern deal would boost petrochemicals
Forbes/David Blackmon
The proposed $85 billion merger between Union Pacific and Norfolk Southern aims to enhance the efficiency of U.S. petrochemical supply chains by creating a seamless rail network connecting the western and eastern United States. This would streamline the transport of high-value commodities like oil, natural gas, and petroleum products from the Gulf Coast, which produces nearly 90% of U.S. petrochemicals, to markets and ports with fewer interchanges, reducing time, cost, and risk. The merger could alleviate pressure on the congested Port of Houston, boosting export capacity to meet rising global demand, particularly in Asia and Latin America. With minimal geographic overlap, the deal is seen as a connectivity play rather than a market grab, potentially increasing competition by forming a second transcontinental rail carrier. The Surface Transportation Board will decide, but the merger could significantly strengthen the U.S. petrochemical industry and the broader economy. [MDN: An interesting article about how this merger could benefit the petchem (and O&G) industry. Typically, big mergers result in less competition. This article claims it would result in more competition. Unusual.]
INTERNATIONAL
Oil declines as traders await Trump’s next move against Russia
Bloomberg/Mia Gindis, Alex Longley
Oil prices declined for the fifth consecutive session, with West Texas Intermediate falling 1.2% to just above $64 a barrel, marking its longest losing streak since September, as traders awaited clarity on U.S. President Donald Trump’s stance on Russian energy restrictions. The market faced uncertainty after reports surfaced of Trump planning to meet Russian President Vladimir Putin and possibly Ukrainian President Volodymyr Zelenskiy, suggesting a potential softening of U.S. policy toward Russia. Despite Trump’s earlier hints at progress in talks and possible further sanctions on Moscow’s oil revenues, his comments about lowering oil prices to pressure Putin added complexity. A 25% tariff on India for Russian energy purchases, effective in 21 days, and OPEC+’s planned production increase in September further unsettled traders. However, falling U.S. crude inventories, high refinery activity, and Saudi Arabia’s confidence in demand helped limit losses in a volatile market. [MDN: We suggest traders get used to being “unsettled.” They need to grow some important anatomy. The price of oil is sittin’ pretty right now. It’s perfect in the mid-$60s. WTI for September delivery sank 1.2% to settle at $64.35 a barrel in New York. Brent for October settlement fell 1.1% to settle at $66.89 a barrel.]
Trump doubles tariff on India to 50%, sparking outrage in Delhi
Bloomberg/Catherine Lucey, Swati Gupta
President Donald Trump escalated tensions with India by imposing a 50% tariff on its goods, doubling the previous 25% levy, as a penalty for India’s continued purchase of Russian oil, effective within 21 days. This move, aimed at pressuring India in stalled trade talks and leveraging a ceasefire in Ukraine, has provoked strong backlash from New Delhi, with Prime Minister Narendra Modi’s government and opposition leader Rahul Gandhi condemning it as unfair and bullying. India defends its oil purchases as essential for energy security and accuses Trump of singling it out while sparing other nations like China. The tariffs threaten India’s economy, potentially cutting US-bound exports by 60% and risking 0.9% of GDP, particularly impacting labor-intensive sectors like pharmaceuticals and textiles. While talks continue, the move risks pushing India closer to Russia and China, with Modi planning a visit to Beijing, further straining US-India ties. [MDN: You know, with “friends” like India, who needs enemies? Screw India. Trump is teaching them an important lesson. India is helping to finance Putin’s war against Ukraine. It’s time for it to stop.]