MDN’s Energy Stories of Interest: Mon, Oct 27, 2025 [FREE ACCESS]

MARCELLUS/UTICA REGION: Shell Beaver Co. cracker plant air permits extended by DEP; OTHER U.S. REGIONS: Electricity prices are rising and politicians are concerned; Increasing Texas/Louisiana production to feed ever-growing list of LNG plants; Maryland’s new energy standards too expensive, business representatives say; NATIONAL: U.S. natural gas ends week higher on weather outlook; How to get the renewable energy source both parties love; Oil and gas industry layoffs accelerate with lower prices; Trump admin planning to refill depleted petrol reserve Biden drained; Data centers follow fracking in search for power; The more wind and solar we add, the less they deliver; Morgan Stanley expects natural gas prices to hit $5 in 2026; INTERNATIONAL: Crude oil price pauses near two-week high; Totalitarian ‘nature rights’ legislation in U.K. House of Lords.

MARCELLUS/UTICA REGION

Shell Beaver Co. cracker plant air permits extended by DEP
PA Environment Digest Blog/David Hess
The Department of Environmental Protection published notice in the October 25 PA Bulletin extending the three Air Quality Permits needed for the continued temporary operation of the Shell Petrochemical Plant in Potter Township, Beaver County, until a full Title V Air Quality permit can be put in place. The new expiration date is April 28, 2026. This is the third extension of these temporary permits by DEP. Shell submitted the Title V Air Quality permit application for the petrochemical plant on June 19, 2024, and DEP accepted the application as administratively complete on July 2, 2024. On December 18, 2024, DEP said the agency will review the Shell Petrochemical Plant Title V Air Quality Permit application under the “enhanced public participation process” established in its Interim Final Environmental Justice Policy, holding local stakeholder meetings, one or more public meetings, and a hearing. [MDN: Final permits are not in question. This is the process working its way out.]

OTHER U.S. REGIONS

Electricity prices are rising and politicians are concerned
Institute for Energy Research
Massachusetts Governor Maura Healey has directed the Department of Public Utilities (DPU) to review and eliminate unjustified utility charges following significant increases in consumer electricity and gas bills. However, the article argues that this action fails to address the state’s structural issues driving up energy prices. Key factors include the state’s renewable portfolio standard, which mandates expensive, intermittent wind and solar power, and has led to the retirement of reliable coal and nuclear plants. Additionally, the state’s membership in the Regional Greenhouse Gas Initiative (RGGI) imposes a hidden carbon tax on consumers. Furthermore, Healey previously blocked natural gas pipelines, forcing reliance on more costly Liquefied Natural Gas (LNG). The analysis concludes that these green policies, mandates, and infrastructure blockages are primarily responsible for the skyrocketing energy bills, making cost-cutting demands on utilities insufficient. [MDN: Will the dupped voters in Mass. wake up and kick Healey’s butt out of office? Doubtful. But one can hope. Healey and her policies are the reason electric rates are so high in the Bay State.]

Increasing Texas/Louisiana production to feed ever-growing list of LNG plants
RBN Energy/Kristen Holmquist
Several large U.S. Gulf Coast LNG export projects have reached final investment decision (FID) this year, adding 64.5 MMtpa (about 8.5 Bcf/d) of capacity by 2031, which necessitates significant natural gas production and pipeline capacity increases. To meet the incremental demand, RBN’s latest model raises the base price assumption to $4.25/MMBtu, forecasting substantial production growth from the Haynesville and Permian basins. The Haynesville is expected to grow by 7 Bcf/d by 2032, and the Permian by 9 Bcf/d, despite crude oil production flattening, due to a rising gas-to-oil ratio. This production will be supported by nearly 10 Bcf/d of new pipeline capacity, including expansions like Traverse and new lines like Eiger Express, largely alleviating egress constraints from the Permian and ensuring gas can reach the new LNG export facilities in Texas and Louisiana. [MDN: The M-U could easily provide much of the increase, but, sadly, we can’t get pipelines built to flow it to the Gulf Coast. The Permian and Haynesville are much closer and located in pipeline-friendly states. Good for them.]

Maryland’s new energy standards too expensive, business representatives say
Baltimore (MD) Sun/Josh Davis, Brian Carlton
Maryland’s new Building Energy Performance Standards (BEPS) require commercial and multi-family buildings over 35,000 square feet to significantly cut direct greenhouse gas emissions: 20% by 2030, 60% by 2035, and 100% by 2040, aiming to phase out older energy methods like natural gas and oil. However, building owners and business groups are criticizing the mandates as an expensive overreach, especially during an economic slowdown. An Anne Arundel Chamber of Commerce CEO called the BEPS “overkill, too much too soon,” citing financial stress on companies. For example, Atlantic Realty Group estimates compliance could cost $40,000 per apartment unit, potentially raising rents by $400 monthly. Non-compliant owners face steep fines, starting at $230 per metric ton of excess CO2, which the Maryland Chamber of Commerce notes is higher than the federal standard. [MDN: Obviously, these insane standards will have to be rolled back. The question is how quickly the radical left will wake up and do it.]

NATIONAL

U.S. natural gas ends week higher on weather outlook
Wall Street Journal
U.S. natural gas futures posted their first weekly gain in a month, thanks to a cooler shift in the weather outlook for the end of October and beginning of November, which sparked a short-covering rally. An above-estimate inventory build that increased the surplus over the five-year average by 10 Bcf took some steam out of the market. “Notwithstanding cooler weather, U.S. natural gas storage is on pace to reach 3,915 Bcf, Canadian storage is at a record high, and production is poised to rebound,” Eli Rubin of EBW Analytics says in a note. “We highlight the risk of further weakness ahead of next week’s final settlement.” Nymex natural gas settled down 1.2% at $3.304/mmBtu, up 9.8% on the week. [MDN: Gas was down slightly on Friday, but up big for the week. Sounds like a win to us!]

How to get the renewable energy source both parties love
Wall Street Journal/Christopher Mims
Geothermal energy, an effectively limitless and domestic power source, has been historically difficult to tap, relying on rare natural hot water reservoirs. However, new technologies and preserved federal tax incentives are now making it competitive. Companies like Fervo Energy are pioneering a technique using advanced drilling and fracking to circulate nonpotable surface water deep into hot, dry granite, creating a massive underground “radiator” to extract heat and generate power. This breakthrough bypasses previous limitations, allowing for the widespread utilization of ultrahot underground rock. Proponents are optimistic, arguing that when total operating costs are considered, this “dark horse” renewable will soon be cheaper than natural gas, finally poised to make a significant impact on America’s energy supply. [MDN: Geothermal uses the same fracking technology used for shale oil and gas wells. Even if geothermal becomes widely adopted, you still cannot replace oil and gas, which are used to make plastics. That’s just a fact.]

Oil and gas industry layoffs accelerate with lower prices
OilPrice.com/Michael Kern
Amid a wave of industry mergers and lower international crude oil prices, oil and gas producers and service providers are undertaking significant workforce reductions for reorganization and cost-cutting. Supermajors and large independents, including ExxonMobil, Chevron, BP, Shell, and ConocoPhillips, along with service giants like Halliburton and SLB, are eliminating thousands of roles through layoffs and contractor exits across various geographies. Companies such as BP, Chevron, and ConocoPhillips are planning cuts of up to 25% of their office-based or total workforce by 2027, driven by recent acquisitions and efforts to simplify operations and focus on core oil and gas business. [MDN: There is no doubt we are once again in the midst of a downsizing in the oil-drilling industry. The layoffs are not hitting the gas-drilling industry as heavily. Still, the boom/bust roller coaster is dipping into the bust side again, at least for employees.]

Trump admin planning to refill depleted petrol reserve Biden drained
Committee For A Constructive Tomorrow (CFACT)/Audrey Streb
The Department of Energy (DOE) announced plans to purchase one million barrels of oil for the U.S. Strategic Petroleum Reserve (SPR), utilizing lower oil prices for December and January deliveries. This move, championed by the Trump administration to restore the reserve, follows the Biden administration’s actions, which saw the SPR fall to its lowest level since 1983 after being drained for political purposes ahead of the 2022 midterms amid surging gas prices. Critics called the depletion a “colossal mistake,” neglecting to refill it even when oil prices dropped. Though current SPR levels are above 2023-2024 totals, they remain well below the 638 million barrels recorded at the end of 2020. The refilling initiative aims to strengthen U.S. energy security. [MDN: Trump must continue fixing the things botched by Joementia.]

Data centers follow fracking in search for power
Bisnow/Dan Rabb
The massive power demands of AI megacampuses are causing data center developers and major tech companies to increasingly relocate their projects to natural gas fracking hotbeds across the U.S., like the Permian Basin and Appalachian Basin. This strategy, highlighted by projects such as Oracle/OpenAI’s Stargate and Meta’s Hyperion, centers on behind-the-meter gas generation, which offers a significantly faster route to securing hundreds of megawatts of electricity compared to long utility grid connection wait times. By placing data centers directly near gas sources, sometimes integrating gas extraction and generation on-site, developers bypass existing transmission constraints and reduce costs. However, widespread skepticism remains about the long-term viability and reliability of these remote, gas-powered sites, particularly due to operational complexities and potential latency issues for future workloads. [MDN: Makes sense to locate data centers where there is an abundance of natural gas supply, like the Marcellus/Utica and the Permian. However, there are complications, like high water usage, that must be considered. We have more water available in the M-U than they do in the Permian, arguing for data centers to locate here rather than there.]

The more wind and solar we add, the less they deliver
RealClearEnergy/Isaac Orr, Mitch Rolling
The booming electricity demand from AI data centers, projected to consume up to 12% of U.S. power by 2028, is reshaping the grid, favoring reliable power sources. Bloomberg New Energy Finance estimates 63% of new global capacity for AI will be coal, nuclear, and natural gas, despite the fast build times of wind and solar. This preference is due to reliability: the capacity value of non-dispatchable wind and solar plummets as more are added, reaching near-zero in some regions during peak stress. In contrast, coal, nuclear, and gas maintain high reliability ratings (60-95%), making them essential for the continuous, high-reliability needs of data centers and avoiding blackouts. Utilities are adding significant fossil fuel capacity because an intermittent grid cannot power the intelligence of tomorrow. [MDN: How many times must we say it until it sinks in: renewables are unreliable, fossil fuels are reliable. It’s really that simple.]

Morgan Stanley expects natural gas prices to hit $5 in 2026
Investing.com/Sam Boughedda
Morgan Stanley forecasts that U.S. natural gas prices could surge past $5 per million British thermal units in 2026 due to tightening market conditions driven by rising demand and constrained supply. While U.S. storage levels are currently above normal, analysts expect a deficit to re-emerge this winter and grow next year. Record LNG exports, coupled with subdued supply-side activity and lower production—notably in the Haynesville shale—are contributing to the tightening. The bank notes that current gas rig counts are insufficient to meet the growing LNG export demand, setting the stage for higher prices in the coming years, with winter weather being a key swing factor. [MDN: We like this forecast! While we have struggled to get and stay above $3 gas, we have highlighted (for at least six months) predictions that higher gas prices are just around the corner. Time will tell.]

INTERNATIONAL

Crude oil price pauses near two-week high
Bloomberg/Staff
Oil held steady near a two-week high, with traders weighing new US and EU sanctions on major Russian producers like Rosneft and Lukoil against a forecasted global supply surplus. The sanctions, aimed at cutting Russia’s war revenue, are expected to significantly reduce Russian oil flows to buyers like India and China. Trend-following funds are simultaneously adding long positions, reinforcing a short squeeze. Despite the potential for up to 600,000 barrels per day of Russian output curtailment, the market faces a substantial surplus, with the International Energy Agency projecting supply to exceed demand by almost 4 million barrels a day next year. OPEC is ready to adjust production, while Russia, experienced in circumventing sanctions, is expected to use alternative trading networks to mitigate the financial impact. [MDN: Safe and sound in the $60s. WTI for December delivery dipped near 0.5% to settle at $61.50 a barrel in New York. Brent for December settlement slipped about 0.1% to settle at $65.94 a barrel in London after jumping 5.4% on Thursday.]

Totalitarian ‘nature rights’ legislation in U.K. House of Lords
National Review/Wesley J. Smith
A Green member of the U.K. House of Lords plans to introduce “nature rights” legislation, which the author describes as an authoritarian push to grant legal personhood and expansive rights to “Nature,” encompassing virtually everything, including living organisms, ecosystems, geological processes, and the atmosphere. The proposed legislation, titled the Nature Rights Act of 2025, would recognize Nature as a single legal person with rights such as the right to exist, ecological integrity, regeneration, freedom from pollution, and the right to operate within planetary boundaries. The author argues that these all-encompassing rights would inevitably conflict with human needs and desires, potentially preventing productive use of natural resources and threatening human thriving. The rights would be enforceable against individuals, creating unquantifiable authoritarian possibilities. [MDN: If this rubbish legislation is ever passed, it spells the end of the UK as we know it. The UK would become nothing more than a dictatorship, and its residents would become slaves to the state. The “green” movement is, as was said by the late, great Rush Limbaugh, the new home of Communism. Is that truth not obvious?]