MDN’s Energy Stories of Interest: Tue, Aug 12, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: New Jersey’s electric bills tripled this summer — and could cost Dems the state; Cheniere signs LNG supply agreement with JERA; Gov. Newsom has no solutions how to run California’s economy without crude oil; NATIONAL: Fading heat, stout production pressure natural gas futures into deeper losses; The US oil shale industry is doing more with less; Crowley shipping appoints new leaders for advanced energy transport and LNG microgrid; As electric truck demand slows, CNG and RNG-powered trucks accelerate; Love’s opens 106th compressed natural gas station; O&G companies experiment with twisty new well designs to boost output; The behavioral economics battle lurking in EPA’s endangerment finding repeal; INTERNATIONAL: Oil price steadies after slide last week; UK’s AI ambitions clash with its climate goals.
OTHER U.S. REGIONS
New Jersey’s electric bills tripled this summer — and could cost Dems the state
New York (NY) Post/Bethany Mandel
New Jersey residents are reeling from skyrocketing electric bills that have tripled this summer, with one homeowner’s monthly cost jumping from $300 to over $1,000 despite no changes in usage. The surge stems from Democratic Gov. Phil Murphy’s aggressive decarbonization policies, which shut down coal plants and the Oyster Creek nuclear facility without adequate replacements, causing a supply shortage amid rising demand from AI data centers and electric vehicles. Compounded by increases in property taxes (up 6.3%), car insurance (15%), home insurance (17%), and health insurance (19%), these costs are eroding affordability in the blue state, turning it purple. In the tightening governor’s race, Democrat Mikie Sherrill leads Republican Jack Ciattarelli by just 6 points, but Ciattarelli dominates on taxes (50% to 15%). Voters blame Democrats for bungled energy transitions and view a $30 rebate as an insult, fueling frustration and potential relocations as families demand accountability. [MDN: We sure hope NJ residents don’t elect another Democrat as governor. If they do, they can continue to expect $1,000 electric bills (and they’ll deserve it).]
Cheniere signs LNG supply agreement with JERA
Rigzone/Rocky Teodoro
Cheniere Energy, Inc. subsidiary Cheniere Marketing LLC has entered into a long-term liquefied natural gas (LNG) sale and purchase agreement with JERA Co. Inc. JERA has agreed to purchase approximately 1.0 million metric tons per annum (mtpa) of LNG from Cheniere Marketing on a free-on-board basis from 2029 through 2050. The purchase price for LNG SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee, the two companies said in a joint news release. [MDN: JERA is Japan’s largest power generation company and one of the largest LNG buyers in the world. Cheniere buys a lot of M-U molecules. Ergo, even more M-U molecules will head to Japan.]
Gov. Newsom has no solutions how to run California’s economy without crude oil
America Out Loud News/Ronald Stein
California Governor Gavin Newsom is criticized for ignoring the economy’s reliance on fossil fuels, as renewables like wind and solar only generate intermittent electricity and cannot produce the products or fuels essential for society. The article highlights how crude oil supports critical sectors including hospitals, airports, military, medical equipment, telecommunications, space programs, appliances, electronics, sanitation, transportation, construction, and synthetic fertilizers feeding half the world’s population. Abruptly ending fossil fuel use without alternatives risks catastrophe. California’s massive fuel demands include 13 million gallons of jet fuel daily for 145 airports, 42 million gallons of gasoline for 30 million vehicles, and 10 million gallons of diesel, plus supplying Arizona and Nevada. Fuel taxes generate $8.8 billion annually for roads and programs, threatened by EV mandates. Since 1973, regulations have reduced in-state oil production, increasing foreign imports to over 70%, with refinery closures like Phillips 66 and Valero exacerbating shortages. Without oil, electricity itself is impossible, as all generation relies on oil-derived components. [MDN: Newsom is a clueless and arrogant git (as the Brits say). He’s foolish and doesn’t know it, which is the worst combination in a politician.]
NATIONAL
Fading heat, stout production pressure natural gas futures into deeper losses
NGI’s Daily Gas Price Index/Chris Newman
Nymex natural gas futures extended Friday’s break below the key $3.00/MMBtu level as weekend weather model revisions pointed to cooler temperatures and traders remained focused on ample storage supplies heading into the final weeks of summer. The September Nymex contract settled down 3.6 cents at $2.954 on Monday, off an intraday low of $2.881. NGI’s Spot Gas National Avg. rose 17.5 cents to $2.890. Henry Hub cash prices for Tuesday delivery averaged at $3.010, down 3.0 cents, to maintain a slight premium to the prompt month Nymex contract. “Bearish fundamental catalysts continue to dot the near-term landscape for natural gas,” EBW Analytics Group senior analyst Eli Rubin said. He noted ongoing strength in production readings, increasing tropical activity and an expected mid-August heat wave that “largely fizzled over the weekend.” [MDN: We had hoped the price would stay above $3, but feared it would not. Looks like our fears were warranted. Chin up. Let’s keep hoping for a boost in the price.]
The US oil shale industry is doing more with less
Bloomberg/Javier Blas
The U.S. oil industry, likened to a treadmill where rapid drilling is needed to maintain output due to quickly depleting shale wells, is demonstrating unexpected resilience despite low prices driven by Saudi Arabia and Russia. Enhanced efficiencies, such as faster drilling and extended well reach, have allowed shale companies to produce more with fewer rigs and fracking crews, reducing costs significantly. This has led to U.S. petroleum production hitting a record 20.96 million barrels per day in May 2025, surpassing earlier forecasts of a peak at 20.4 million. Despite a drop in active rigs and frac crews to their lowest in years, production remains robust, bolstered by hedging during a price spike from geopolitical tensions and contributions from the U.S. Gulf of Mexico. While a decline is inevitable with sustained low prices, the industry’s efficiency gains suggest U.S. output will grow in 2025, challenging OPEC+’s strategy to suppress prices. [MDN: Good old American ingenuity at work. The shale miracle continues!]
Crowley shipping appoints new leaders for advanced energy transport and LNG microgrid
Crowley
Crowley Shipping has appointed Jackie Gonsalez as vice president of advanced energy and Tucker Gilliam as vice president of fleet operations to strengthen its leadership in advanced energy transportation and LNG microgrid development across the U.S., Puerto Rico, the Caribbean, and other high-growth markets. Gonsalez, previously vice president of commercial operations, will lead strategic initiatives in LNG distribution and microgrid development, leveraging her extensive operational experience. Gilliam will expand his role to oversee LNG bunkering and bulk distribution, including managing the largest LNG bunkering barge in North America, Progress, and the U.S.-flagged LNG carrier American Energy, dedicated to Puerto Rico. These appointments reflect Crowley’s focus on accelerating growth in sustainable energy solutions, including LNG-powered containerships, truck loading facilities, and microgrid development in the Caribbean. The leadership changes aim to deliver innovative, reliable energy solutions, reinforcing Crowley’s role in supporting energy expansion in the region. [MDN: Crowley is the largest shipping company in the U.S. and an important player in moving LNG.]
As electric truck demand slows, CNG and RNG-powered trucks accelerate
Clean Trucking/Jay Traugott
Compressed natural gas (CNG) and renewable natural gas (RNG)–powered trucks—especially heavy-duty Class 8 rigs—are gaining momentum as fleet operators increasingly view them as practical, cost-effective, lower-emission alternatives to diesel, particularly as battery-electric (BEV) and fuel-cell (FCEV) truck demand slows due to high costs, limited charging infrastructure, safety concerns, bankruptcies among key FCEV players, and a lack of megawatt charging systems nationwide. While BEVs and FCEVs remain long-term goals, CNG and RNG offer a deployable solution now, supported by over 700 refueling stations across the U.S. and engines like Cummins’ X15N, which deliver diesel-comparable performance. Experts emphasize the industry is in a “messy middle” phase where no perfect solution exists, yet RNG stands out for its economic, sustainability, and range benefits. CNG offers greater immediacy and affordability, while RNG delivers superior environmental gains when sourced from organic waste—prompting fleets to ask, “Why wait for perfect when really good is right in front of you?” [MDN: Electric trucks are fading. CNG is finally getting its day. What a difference one election can make!]
Love’s opens 106th compressed natural gas station
NACS (National Association of Convenience Stores)
Love’s Alternative Energy has opened its first branded compressed natural gas (CNG) station in Fresno, California, featuring six high-speed dispensers designed for large commercial vehicles. This unmanned “cardlock” facility, accessible only with approved cards, offers CNG exclusively and caters to trucking, refuse, and transit fleets in a major logistics hub. The station supports California’s carbon neutrality goals while providing fleet customers with flexible fueling schedules, competitive pricing, easy maneuvering, and detailed fuel consumption reports. The opening brings Love’s CNG network to 106 locations across the U.S. and Canada. To mark the launch, Love’s donated $5,000 each to Sunnyside High School and Valley Children’s Hospital. Separately, Wawa opened a new store in Newark, Delaware, offering coffee, food, and fuel in a single stop, while Kwik Trip will celebrate its 900th store opening on August 14 in Rosemount, Minnesota, with another store set to open a week later in Indianola, Iowa. [MDN: Coincidentally, we spotted this news about Love’s opening its 106th CNG station on the same day as another story about CNG rising and EVs dropping. Cool.]
O&G companies experiment with twisty new well designs to boost output
RBN Energy/Lisa Shidler
In its August 11, 2025 blog, RBN Energy explains how oil and gas producers are experimenting with innovative “twisty” well designs—such as U-turn or horseshoe and J-hook wells—that incorporate dramatic 180-degree underground turns to extract more hydrocarbons from limited acreage by drilling dual laterals from a single pad, thereby boosting output while reducing surface footprint and pad construction costs; these designs offer savings—Comstock’s horseshoe well “Sebastian” in the Haynesville delivered 28.7 MMcf/d initial production versus an average of ~23 MMcf/d while saving ~$530 per lateral foot by drilling two ~9,200-ft laterals instead of four shorter ones; however, drilling such tight bends poses technical challenges like wellbore instability, drill-string fatigue, torque and drag, and infrastructural limits mean only 74 horseshoe wells were completed between 2023 and 2025 versus over 35,000 conventional wells; while results are promising, RBN notes the design remains uncommon and its long-term consistency is still uncertain. [MDN: There’s a neat map showing where all 74 horseshoe wells have been drilled. A couple of them are in the M-U. Will it become more common? Time will tell.]
The behavioral economics battle lurking in EPA’s endangerment finding repeal
Forbes/James Broughel
The EPA’s 2009 Endangerment Finding declared greenhouse gases a threat to public health, enabling regulation under the Clean Air Act. The Trump administration’s EPA now proposes repealing it—along with related vehicle emissions standards—citing over $1 trillion in compliance costs. Central to the repeal’s Regulatory Impact Analysis is a clash between traditional cost-benefit methods, which treat fuel savings as consumer benefits, and a “revealed preference” approach, which assumes consumers’ choices reflect their true valuations. Under the former, repeal shows $260 billion in net costs; under the latter, $3–8 trillion in net benefits. The dispute echoes the “energy efficiency gap” debate: are consumers irrationally forgoing efficiency, or making rational trade-offs for other features? Because most benefits in many energy rules come from assumed fuel savings, the answer has massive implications for climate policy. The analysis also weighs private versus social benefits, highlighting tensions between individual preferences, societal welfare, and intergenerational impacts. [MDN: A deep article on the economics of tossing the idiotic “endangerment finding” that allows the EPA to force its will on all companies across the country. Trump is working to get rid of it. The bottom line here, with this article (for us), is that we come down on the side of common-sense Americans making the right decisions about energy sources, and we don’t need to be lectured by economists and other “experts” about what’s good for us.]
INTERNATIONAL
Oil price steadies after slide last week
Bloomberg/Julia Fanzeres
Oil prices remained stable near a two-month low, with West Texas Intermediate settling at around $64 a barrel, following a 5% decline last week, as investors await outcomes from a planned meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska. The summit, described by Trump as a “feel-out meeting,” aims to address Russia’s territorial gains from its invasion of Ukraine, with US and Russian officials working toward a potential agreement that could end sanctions on Russian oil, potentially stabilizing Moscow’s supply. This comes as OPEC+ accelerates production increases, contributing to a 10% yearly drop in oil prices amid concerns over slowing global economic growth. Investors are looking to upcoming reports from OPEC, the US Energy Information Administration, and the International Energy Agency for further clarity on the global supply-demand balance, with no immediate disruptions to Russian oil expected during ongoing negotiations. [MDN: WTI for September delivery rose 8 cents to settle at $63.96 a barrel in New York. Brent for October settlement rose 4 cents to settle at $66.63. Still in “perfect” territory.]
UK’s AI ambitions clash with its climate goals
POLITICO/Joseph Bambridge
The U.K.’s ambition to become a global AI leader is clashing with its climate goals, as revealed by minutes from the AI Energy Council, which includes tech giants like Microsoft and Google. At a June meeting, ministers were advised to allow increased fossil fuel use, specifically on-site gas fuel cells, to power energy-intensive data centers due to high electricity costs and long grid connection delays. This suggestion conflicts with the government’s commitment to sustainable energy, as Technology Secretary Peter Kyle emphasized powering AI growth responsibly. The council highlighted challenges like high energy costs and grid access, risking AI investment. While the Department for Energy Security and Net Zero aims for clean power by 2030, gas was proposed as a temporary solution. A Tony Blair Institute report suggested gas as a bridge until cleaner energy is available, underscoring the tension between AI development and environmental commitments. [MDN: The Brits continue to shoot themselves in the feet, head, and other parts of their anatomy. It’s all self-inflicted and senseless. When will they wise up! Compare the Brits’ dithering over power sources for AI with the conference held in Pittsburgh by Sen. McCormick and President Trump promising $92 billion for AI for PA, largely dependent on natural gas.]