MDN’s Energy Stories of Interest: Thu, Oct 23, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: Texas first commercial produced water Li plant under construction; Japan’s JERA to buy US shale gas assets for $1.5 bln; NATIONAL: U.S. natural gas futures slip ahead of storage data; BP, JERA halt US offshore wind activities; The war on gas stoves is not over – but Trump admin is fighting back; Kinder Morgan posts higher third-quarter profit on stronger natural gas demand; In practice, ‘net zero’ was exactly how much such pledges were worth; INTERNATIONAL: Oil closes higher as oversold signals ease; EU adopts new sanctions on Russian energy; Halliburton is branching into data-center power supplies as frack demand stagnates; US, Qatar warn EU sustainability law threatens continued LNG supply.
OTHER U.S. REGIONS
Texas first commercial produced water Li plant under construction
Select Water Solutions, Inc.
Select Water Solutions and Mariana Minerals broke ground on Texas’s first commercial produced water lithium extraction facility in Joaquin, Texas. The pioneering project, located in the Haynesville shale region, will leverage Select’s existing water treatment expertise and pipeline infrastructure to source oil and gas waste streams. Mariana Minerals will fund, design, construct, and operate the facility, which is designed to produce up to 3,000 metric tons per year of high-purity lithium salts. This initiative allows Select to monetize its existing assets, generating potential annual cash flow, while supporting the rebuilding of America’s critical minerals supply chain by converting produced water into marketable lithium, with commercial production targeted for the first half of 2027. [MDN: This is great news for American energy. We’d like to remind readers that there are two commercial lithium plants already up and running, sorting out the kinks, in Susquehanna County, PA (see our stories here), meaning we are way ahead of what’s happening in the Texas Haynesville.]
Japan’s JERA to buy US shale gas assets for $1.5 bln
Reuters/Anton Bridge, Kantaro Komiya
Japan’s largest power generator, JERA, is entering the U.S. shale gas market with a $1.5 billion acquisition of natural gas production assets in the Haynesville Shale basin in Louisiana. JERA is buying 100% of the interests in the South Mansfield gas field from pipeline operator Williams and GEP Haynesville II. This strategic move, which marks JERA’s first U.S. production entry, is intended to strengthen its natural gas value chain, which it views as a crucial transitional fuel for decarbonization. The current asset produces over 500 MMcf/d and JERA plans to significantly increase its output. The deal provides JERA with proven reserves and established infrastructure, giving it greater control over its supply chain as Japan anticipates rising power demand, notably from the AI-driven data center boom. [MDN: Welcome to the miracle of U.S. shale, JERA.]
NATIONAL
U.S. natural gas futures slip ahead of storage data
Wall Street Journal
U.S. natural gas futures settle lower in choppy trade ahead of the EIA’s weekly storage report. The supply-demand balance shows a “classic shoulder-season handoff,” with heating demand rising and power-sector use easing, Gelber & Associates said in a note. “The market still looks well supplied into November, but the recent uptick in heating demand and record-high feedgas help cap looseness at the margin.” Tomorrow’s storage report is expected to show an 81 Bcf injection, according to a WSJ survey of analysts, stretching the surplus over the five-year average to 158 Bcf from 154 Bcf the week before. Nymex natural gas for November settled down 0.7% at $3.450/mmBtu. [MDN: The price was down just 2 pennies. We’re still close to $3.50. Life is grand.]
BP, JERA halt US offshore wind activities
Rigzone/Jov Onsat
JERA Co Inc and BP PLC’s offshore wind joint venture, JERA Nex bp, has indefinitely shelved the 2.5-gigawatt Beacon Wind project, its sole U.S. asset, citing an unfavorable environment and “no viable path” to development. The company announced it will close all U.S. operating activities, resulting in all team members leaving in the coming months, though they maintain a belief in the market’s long-term potential. The project’s permitting process had already been paused, and the move follows a presidential memorandum ordering an indefinite halt to new wind leasing and a comprehensive review of existing leases. JERA Nex bp plans to maintain the Beacon lease and wait for a more favorable moment to resume the project, which secured 128,000 acres in federal waters. [MDN: When there’s no taxpayer funding of these boondoggles, they die, as they should. We won’t declare offshore wind dead, yet, but it’s certainly on life support. We say, pull the plug.]
The war on gas stoves is not over – but Trump admin is fighting back
Competitive Enterprise Institute/Ben Lieberman
The Department of Energy (DOE) is rescinding federal grants aimed at changing state and local building codes to discourage the use of natural gas in home appliances, a move lauded by the author as dismantling an unpopular effort to interfere with consumer choices. The article highlights a broader “war on the blue flame,” where climate change activists, partially through provisions in the 2022 Inflation Reduction Act (IRA), have pursued the total end of residential natural gas use. Past threats of direct regulation, like proposed gas stove bans and efficiency standards, were met with strong public backlash. The IRA provided financial incentives for electric appliances and zero-emissions housing, but recent actions and pending legislation have curtailed much of this spending. The DOE’s rescission of grants for anti-gas building code changes is seen as protecting taxpayer money and energy choice. [MDN: These leftists never give up. They tried to end fossil fuel use via the misnamed IRA. The Trump admin must be (and is) vigilant in rooting out these disgusting programs that try to end gas stoves and other gas use in homes and businesses.]
Kinder Morgan posts higher third-quarter profit on stronger natural gas demand
Reuters/Sumit Saha
U.S. pipeline operator Kinder Morgan reported a slight rise in third-quarter profit to $628 million, primarily boosted by higher volumes of natural gas transported through its pipelines. This increase aligns with the company’s optimistic outlook for the U.S. LNG sector, which is seeing a resurgence after the lift on new export permits. CEO Kim Dang projects a 28 Bcf/d increase in natural gas demand by 2030, driven by LNG export growth, power generation, and Mexican exports. While the natural gas segment thrived, the company’s delivery volumes of refined products and its CO2 segment saw a slight decline due to lower fuel and renewable credit prices. Kinder Morgan’s project backlog remains strong at $9.3 billion. [MDN: Natgas is the future. Those companies, like KM, that are set up to flow natgas are benefiting.]
In practice, ‘net zero’ was exactly how much such pledges were worth
The Empowerment Alliance/Gary Abernathy
The article argues that global “net zero” emissions pledges are unrealistic political “delusions” that would devastate modern economies by requiring the abandonment of reliable energy. Despite commitments from 107 countries, a recent report shows nations plan to produce over twice the amount of fossil fuels consistent with the Paris Agreement’s 1.5°C goal by 2030, with the 20 most polluting countries increasing production. The author celebrates the U.S. shift toward “reliables,” citing President Trump’s withdrawal from the Paris Agreement and state subsidy rollbacks. The piece concludes by refuting climate catastrophe warnings, noting that, contrary to predictions, no hurricane had made landfall in the U.S. through September 2025, marking a ten-year first. [MDN: We love that term. Fossil fuels are “reliables” vs. renewables, which are unreliables.]
INTERNATIONAL
Oil closes higher as oversold signals ease
Bloomberg/Mia Gindis, Omar El Chmouri
Oil prices, with West Texas Intermediate (WTI) settling above $58 and Brent rising toward $63, gained ground after a technical gauge indicated that recent declines were excessive. This upward correction was supported by a US government report revealing a 4.2 million barrel drop in total US petroleum stockpiles, reaching the lowest level since late September and alleviating immediate oversupply fears. Though many traders still anticipate sizable inventory builds soon, this data, which aligned with an industry forecast, helped the market hold its recent gains. Further bullish sentiment came from the potential for a US-India trade deal that could boost demand for non-Russian crude, as well as a new round of EU sanctions against Russia. Despite these short-term boosts, oil remains on track for a third monthly loss due to signs of a global surplus, though the market’s backwardation structure still suggests tight short-term supplies. [MDN: WTI for December delivery rose 1.18% to settle at $58.50 a barrel. Brent for December settlement climbed 2% to settle at $62.59 a barrel. We continue to see the tug to return to the $60s for WTI. It will happen.]
EU adopts new sanctions on Russian energy
Bloomberg/Jorge Valero
The European Union adopted its 19th package of sanctions against Russia, aiming to cripple Moscow’s ability to finance its war in Ukraine. A central feature is the ban on Liquefied Natural Gas (LNG) imports, effective from 2027. The measures, adopted after being stalled by Austria, Hungary, and Slovakia, also include tightening transaction bans on major Russian oil companies and sanctioning 117 “shadow fleet” vessels used for evasion. Furthermore, the EU is targeting 45 entities worldwide, including 12 firms in China and Hong Kong, for their roles in sanctions circumvention. Other restrictions involve a full transaction ban on five Russian banks and prohibiting reinsurance for used Russian aircraft and vessels, reflecting a continued push alongside the US to intensify economic pressure. [MDN: Good for the EU. But, as we typically say (especially with respect to a “ban” on LNG imports from Russia), we’ll believe it when we see it. Our prediction is that there will soon be a ceasefire, followed by some kind of deal, and all of this will be forgotten and the mentally lethargic EU will never fully ban Russian energy imports. Those imports are cheap and much closer than alternatives.]
Halliburton is branching into data-center power supplies as frack demand stagnates
EnergyNow.com
Halliburton Co., the world’s largest fracker, is diversifying into the booming artificial intelligence sector by generating power for data centers through a new partnership with VoltaGrid LLC. This strategic venture, initially focused on the Middle East, will supply turbines, engines, and proprietary technology to data-center developers. The move comes as demand for oilfield fracking slows due to slumping oil prices, a looming global supply glut, and reduced client spending in North America. The announcement, alongside strong third-quarter earnings, caused Halliburton’s stock to surge, with analysts citing the AI-power venture as a major catalyst. CEO Jeff Miller underscored the “unprecedented” demand for AI power driving the company’s diversification, which follows similar steps by competitors. [MDN: Everyone is getting in on the AI space. Halliburton’s entrance is tied to using natural gas to power turbines that produce electricity to feed AI data centers.]
US, Qatar warn EU sustainability law threatens continued LNG supply
Forbes/David Blackmon
U.S. Secretary of Energy Chris Wright and Qatar’s Energy Affairs Minister Saad Sherida Al-Kaabi sent a joint letter to the European Union expressing “deep concern” over the draft Corporate Sustainability Due Diligence Directive (CS3D). Their warning came as the European Parliament (EP) rejected amendments, maintaining a law that industry leaders like ExxonMobil say will accelerate the reduction of business in Europe. Wright and Al-Kaabi cautioned that the CS3D, as worded, poses an “existential threat” to the EU’s economy and could jeopardize billions in planned LNG investments, thereby threatening the affordability and reliability of critical energy supplies. The world’s two largest LNG exporters are effectively presenting a “stark choice” to EU leaders. The decision also creates conflict with the European Commission and leaders from Germany and France, who have called for the law to be entirely scrapped. The matter awaits another vote in mid-November. [MDN: This is a maximum pressure campaign to get the Euro weenies to see the light that they cannot and WILL NOT regulate our LNG industry.]