MDN’s Energy Stories of Interest: Thu, Sep 25, 2025 [FREE ACCESS]

MARCELLUS/UTICA REGION: Pa. Democrats call on EPA to preserve climate regulations; OTHER U.S. REGIONS: 40+ groups call out Gov. Newsom for backsliding on climate promises; NATIONAL: U.S. natural gas ticks higher ahead of storage data; U.S. total distillate inventories forecast to end 2025 and 2026 at multiyear lows; IER comment on reconsideration of 2009 Endangerment Finding and GHG vehicle standards; Don’t blame data centers for rising electric bills; INTERNATIONAL: Oil surges past key level; Iraq sees resumption of Kurdish oil exports this week; India says it wants to buy more USA energy; Macquarie expands LNG business; Norway gas output up for 2nd consecutive month; Panama Canal starts major NGL pipeline to bypass drought impact.

MARCELLUS/UTICA REGION

Pa. Democrats call on EPA to preserve climate regulations
Pittsburgh (PA) WESA NPR Radio/Rachel McDevitt
Pennsylvania Democratic lawmakers, led by Pittsburgh Congresswoman Summer Lee, are opposing the Trump administration’s bid to overturn the EPA’s Endangerment Finding, which underpins federal regulation of climate pollution. In a letter to EPA leadership, signed by Sen. John Fetterman and seven House Democrats, they warned the move would endanger residents statewide, citing severe weather, flooding, rising temperatures, and worsening air quality. Pennsylvania has seen the nation’s largest rainfall increase since the 1950s, 12 extreme weather events in 2024 killing 253 people, and costly damages. The lawmakers stressed climate change’s urgent threats and urged maintaining safeguards to cut harmful emissions. [MDN: They still cling to the lie that CO2 is toasting the planet and that only by ending fossil fuels will we all survive. Thank the good Lord they are in an increasing minority.]

OTHER U.S. REGIONS

40+ groups call out Gov. Newsom for backsliding on climate promises
Food & Water Watch
Over 40 organizations, led by Food & Water Watch, have issued a letter to California Governor Gavin Newsom urging him to recommit to strong climate action. While praising his past support for environmental justice initiatives, such as setbacks to protect communities from fossil fuel drilling and a ban on fracking, the groups express concern over recent policy shifts. They highlight his failure to support the Polluters Pay Climate Superfund Act and his role in legislation streamlining oil and gas well permitting in polluted areas. The letter calls for decisive leadership against the fossil fuel industry to ensure a clean energy future. [MDN: Sleazy Newsome is trying to change his stripes. People have had enough of politicians like him.]

NATIONAL

U.S. natural gas ticks higher ahead of storage data
Wall Street Journal
U.S. natural gas futures settle slightly higher after flitting between gains and losses in a rangebound session. “Daily swings in production and exports have generally been offsetting as the market awaits further guidance from tomorrow’s weekly storage report and Friday’s expiration of the October gas contract,” Ritterbusch says in a note. Analysts in a Wall Street Journal survey expect the EIA to report a 75 Bcf injection into storage for last week, which would leave the inventory surplus practically unchanged at 203 Bcf above the five-year average. Natural gas for October delivery settles up 0.2% at $2.858/mmBtu. [MDN: The price keeps inching up. We’re hoping that it will soon break above $3 again.]

U.S. total distillate inventories forecast to end 2025 and 2026 at multiyear lows
U.S. Energy Information Administration – Today in Energy
The U.S. Energy Information Administration’s September Short-Term Energy Outlook projects distillate inventories, including diesel and heating oil, will remain below historical levels through 2026 due to sharp draws in early 2025, refinery closures, and strong export demand. In 1H25, inventories fell 17% (22 million barrels), driven by reduced renewable diesel and biodiesel supply, which shifted demand toward petroleum distillates, and higher exports to Europe, replacing Russian supplies. Although renewable fuel use is expected to partially recover later in 2025 under Renewable Fuel Standard mandates, refinery shutdowns and sustained international demand will continue limiting inventory growth, heightening price and volatility risks. [MDN: Hmmm. This is something to keep a close eye on. We’re all for exports and spreading our influence around the world, but not at the cost of soaring prices here at home.]

IER comment on reconsideration of 2009 Endangerment Finding and GHG vehicle standards
Institute for Energy Research
The Institute for Energy Research argues that the EPA’s 2009 endangerment finding and greenhouse gas vehicle standards constitute regulatory overreach, asserting that Congress never clearly authorized the regulation of most GHGs under the Clean Air Act. They maintain that the “major questions” doctrine requires a clear congressional grant of power, which is absent here. They contend that past decisions (like Massachusetts v. EPA) misinterpreted congressional intent and that EPA should instead focus only on pollutants addressed explicitly by statute. Further, they criticize the use of extreme climate scenarios in modeling, calling them unsuitable for regulatory purposes, and endorse rescinding the endangerment finding. [MDN: We’ve written extensively about the so-called Endangerment Finding, an EPA overreach that came about during the Obama administration. IER is precisely right. Congress did not delegate authority to the EPA to color outside the lines with the Endangerment Finding.]

Don’t blame data centers for rising electric bills
RealClearEnergy/Andrew Fanara
Rising electricity costs in the U.S. are often misattributed to data center growth, but the issue is far more complex. States like Georgia demonstrate that new data centers can stabilize rates by generating revenue for utilities. In contrast, planned or under-construction facilities, such as Meta’s proposed Louisiana center, have no immediate impact on prices. Factors driving higher bills include grid operator failures, like PJM’s inability to add capacity efficiently, increased electrification from EVs and appliances, extreme weather, and long-term underinvestment in transmission and distribution infrastructure. Coordinated planning, special rate classes, and smart energy management can allow data centers to expand without burdening customers. [MDN: Electric rates are going up now. Very few new data centers are even under construction yet and haven’t come online. So, how can you blame data centers for higher electric prices? It makes no sense.]

INTERNATIONAL

Oil surges past key level
Bloomberg/Mia Gindis, Omar El Chmouri
Oil prices surged to their highest since July, with WTI rising 2.5% to $64.99 a barrel and Brent climbing to $69.31, driven by U.S. President Trump’s hawkish comments on Russia and heightened geopolitical risks. Trump urged NATO to shoot down Russian aircraft violating airspace and pressed Europe to curb Russian energy imports, fueling supply disruption concerns. Meanwhile, Ukrainian drone strikes on Russian energy infrastructure and possible Russian diesel export restrictions further tightened markets. Traders unwound short positions, boosting momentum, while Iraq prepared to restart Kurdistan exports. Strengthening market spreads highlighted rising near-term demand despite bearish long-term fundamentals. [MDN: Still in the $60s, but Brent may climb into the $70s, which is still manageable.]

Iraq sees resumption of Kurdish oil exports this week
Bloomberg/Lara Sanli, Salma El Wardany
Iraq expects to resume oil exports from its Kurdistan region this week, following a two-year halt, after reaching a landmark agreement with producers. Foreign Minister Fuad Hussein confirmed that flows through the Ceyhan pipeline to Turkey could restart immediately, with initial exports of 230,000 barrels per day, potentially rising to 400,000–500,000 barrels per day with new investments. Eight companies, covering over 90% of Kurdistan’s production, have secured in-principle deals guaranteeing payment, though talks with major producer DNO ASA continue. The shutdown since March 2023 has cost Iraq between $22 billion and $25 billion. Restarting exports could ease fiscal pressure, but it would also add to an already oversupplied global market. [MDN: More oil coming on the market will likely work to reduce the price again. Brent was heading for $70 yesterday. We think this may put a lid on it.]

India says it wants to buy more USA energy
Bloomberg/Ruchi Bhatia
India aims to expand oil and gas purchases from the US to strengthen energy security and support trade negotiations, Commerce Minister Piyush Goyal said in New York. The push comes as New Delhi seeks lower tariffs on exports and a broader trade deal after President Trump imposed 50% tariffs last month to penalize India’s Russian oil imports. While discounted Russian crude has helped India manage costs, Washington argues it funds Putin’s war in Ukraine. Boosting US energy imports could narrow the trade gap, aid talks, and balance strained ties, though visa fee hikes have added friction to relations. [MDN: In other words, tariffs work. India is beginning to see the light.]

Macquarie expands LNG business
Bloomberg/P. Azevedo Rocha, A. Shiryaevskaya
Macquarie Group Ltd. is expanding its liquefied natural gas (LNG) business by ramping up physical trading and securing long-term supply deals of 10–15 years, positioning itself in a market forecast to grow 60% by 2040. The strategy includes investments in shipping, assets, and global hiring, with former Equinor executive Samuele Ravelli leading LNG trading. Recent moves include a 15-year sales agreement with AMIGO LNG and progressing an offtake deal with Texas LNG. Operating through a non-banking unit, Macquarie remains one of the few banks actively engaged in LNG trading, offering financing, risk management, and marketing services across multiple regions. [MDN: First drillers EQT and then Exxon and Chevron are building their LNG trading operations. Now, one of the biggest banks in the world is ramping up its LNG trading ops. Interesting.]

Norway gas output up for 2nd consecutive month
Rigzone/Jov Onsat
Norway’s natural gas production rose to 332 MMscmd in August, up 0.7% from July and 1.2% above forecast, marking a second consecutive monthly increase after earlier declines, though still below year-ago levels. Gas sales reached 10.3 Bcm, while Norway remained the EU’s top gas supplier in Q1 2025, providing 31% of total imports and 55% of piped supply, aided by the end of Russian transit flows. Oil output averaged 1.92 MMbd, down 2.3% month-on-month but up 8.1% year-on-year, exceeding projections. Equinor’s production was supported by new fields Johan Castberg, Halten East, and Askeladd West, offsetting maintenance-related disruptions. [MDN: There’s at least one European country not afraid to produce fossil fuels. Good on Norway.]

Panama Canal starts major NGL pipeline to bypass drought impact
gCaptain/Mike Schuler
The Panama Canal Authority (ACP) has launched the selection process for a concessionaire to build a 76-kilometer NGL pipeline across the isthmus, part of its $8.5 billion capital plan to enhance energy transport and canal efficiency amid climate challenges. Designed to transport propane, butane, and ethane with a capacity of 2.5 million barrels per day, the project will release canal space without requiring additional water use, thereby addressing disruptions caused by recent droughts. Supported by major energy and financial players, the initiative includes new maritime terminals and port ventures, with final concessionaire selection slated for late 2026. [MDN: Here’s what’s going on. By building this pipeline and transporting NGLs across the isthmus, reloading those NGLs on other ships, it frees up slots that can be used specifically for LNG carriers. Pretty smart.]