MDN’s Energy Stories of Interest: Tue, Jan 27, 2026 [FREE ACCESS]
OTHER U.S. REGIONS: Winter storm batters electric utilities in the Southeast; Fern freeze-offs fell Permian gas production; NATIONAL: Analyst explains ‘massive rise’ in USA natgas prices today; Trump’s withdrawal from collapsing climate narrative; High gas price crushes the ethane ratio-to-natural gas to 6 year low; Natural gas wins the (frigid) day(s); After a record 2025, LNG enters a year of political risk; As Europe’s reliance on U.S. natural gas grows, so does Trump’s leverage; INTERNATIONAL: Crude eases despite winter storm risks; Canada, India agree to grow energy trade in relations reset.
OTHER U.S. REGIONS
Winter storm batters electric utilities in the Southeast
E&E News – Energywire
A severe winter storm has knocked out power for nearly one million people across the Eastern U.S., particularly impacting Tennessee. As lingering Arctic air drives temperatures below zero, the energy grid faces a critical test, prompting the Department of Energy to invoke emergency authorities to maintain stability amidst surging electricity prices. Thousands of workers are responding to outages, while officials warn of prolonged hazards like black ice and infrastructure strain. This event highlights the ongoing struggle to winterize energy systems, echoing past crises like Winter Storms Uri and Elliott while challenging the reliability of natural gas and power markets. [MDN: Spot wholesale electricity prices shot up Sunday, with parts of Maryland and Virginia on PJM’s eastern edge paying over $1,000 per megawatt hour around 9 a.m. EST. The average location-based hourly price in PJM in the first nine months of last year was just over $50. Ouch.]
Fern freeze-offs fell Permian gas production
RBN Energy
Permian natural gas production plummeted during the week ending January 26 as Winter Storm Fern brought record-breaking cold to Midland, Texas. After starting the week at 21.7 Bcf/d, production fell by an estimated 3.1 Bcf/d over the weekend as temperatures dropped into the single digits. This supply disruption triggered a significant decline in regional outflows; shipments to the West and North both bottomed out near 1.1 Bcf/d, while eastward flows sank to 10 Bcf/d. Although Mexico-bound exports rose slightly, the overall infrastructure struggled against the freeze, with recovery expected to be slow as sub-average temperatures persist. [MDN: Yikes! That’s quite a drop, from 21.7 to 3.1 Bcf/d. There were freeze-offs in the M-U too, as we outline in a post today.]
NATIONAL
Analyst explains ‘massive rise’ in USA natgas prices today
Rigzone
U.S. natural gas prices have surged to over $6 per MMBtu, driven by a massive winter storm causing extreme cold across the Midwest and East. This “weather risk” has doubled prices since mid-January by spiking heating demand while knocking 10% of production offline. Market volatility is further amplified by rapid storage drawdowns and aggressive short-covering. In Texas, Governor Greg Abbott declared a disaster for 134 counties as freezing conditions impacted infrastructure and road access. Despite operational challenges and localized power outages, industry bodies report that natural gas delivery systems remain stable and functional during this multibillion-dollar weather event. [MDN: The price went through the roof yesterday, with the NYMEX trading (at one point) well into the $7 range.]
Trump’s withdrawal from collapsing climate narrative
CO2 Coalition
Vijay Jayaraj argues that President Trump’s withdrawal from the UN Framework Convention on Climate Change signals the end of a “climate-crisis clown show.” By severing ties with international climate bodies, the U.S. is prioritizing economic sovereignty over globalist environmental agendas. This move aligns with the behavior of Asian powers like China and India, which are aggressively expanding coal and hydrocarbon infrastructure to secure their energy futures. Ultimately, the author contends that the global “energy transition” is a sham, as nations increasingly reject international edicts in favor of the proven reliability and affordability of fossil fuels. [MDN: Jayaraj hits the nail on the head, once again. It’s time to end the clown show and grow up.]
High gas price crushes the ethane ratio-to-natural gas to 6 year low
RBN Energy
Driven by Winter Storm Fern, natural gas prices surged above $5/MMbtu, causing the ethane-to-gas ratio to plunge below 0.75 for the first time since 2019. This ratio, which measures Mont Belvieu ethane against Henry Hub natural gas, indicates that ethane is currently more valuable when “rejected” and sold as gas rather than as a separate purity product. Despite a modest rise in ethane prices, the 70% spike in prompt natural gas has suppressed the ratio. However, with March gas prices trading significantly lower, the ratio is expected to rebound above 1.0 following the contract roll on January 28. [MDN: An interesting observation by RBN—that drillers will get more money for their ethane by leaving it in the natgas stream rather than processing it out and selling it on its own. At least right now.]
Natural gas wins the (frigid) day(s)
MasterResource
In January 2026, Winter Storm Fern triggered a 96% spike in natural gas futures, yet the industry demonstrated exceptional resilience and operational performance. While media outlets focused on the price jump to $5.28/Mcf, the article argues this volatility is routine compared to the $23/Mcf seen during 2021’s Storm Uri. Natural gas remains the primary balancer for the grid, outperforming batteries and renewables during extreme cold. Despite rising demand from electrification and LNG exports, the deregulated U.S. gas industry continues to provide reliable energy, proving that natural gas is essential for maintaining power stability during severe winter weather. [MDN: Natgas saved the day during Winter Storm Fern. That’s the lesson here.]
After a record 2025, LNG enters a year of political risk
OilPrice.com
Following a record-breaking 2025 for liquefied natural gas trade, the industry now faces significant geopolitical volatility in 2026. Despite bullish forecasts, a major energy trade deal between the EU and the U.S. has been frozen following diplomatic disputes over Greenland and tariff threats from the Trump administration. While Europe remains a primary destination for American LNG, weak industrial demand and a pivot toward nuclear restarts in Japan could cap growth. Meanwhile, Asia continues to dominate global exports, though increased domestic production in China and Russia’s pipeline dominance are shifting market dynamics, potentially leading to a supply glut and lower prices. [MDN: There are ups and there are downs. Most pundits misunderstand Donald Trump. They (and the DC swampies) consider him a bull in a China shop. The more appropriate analogy is crazy like a fox. Trump isn’t going to allow the LNG export industry to crash and burn. Sit tight and watch what happens.]
As Europe’s reliance on U.S. natural gas grows, so does Trump’s leverage
New York (NY) Times
Following Russia’s 2022 invasion of Ukraine, Europe successfully pivoted from its heavy reliance on Russian energy by significantly increasing imports of American liquefied natural gas (LNG). However, analysts warn that this shift has traded one dependency for another, with the U.S. now providing over a quarter of the EU’s gas. Amid rising geopolitical tensions, concerns are growing that the Trump administration might weaponize these energy flows as trade leverage. While the U.S. private sector differs from Russia’s state-controlled monopoly, Europe remains strategically vulnerable to American policy shifts, potential export taxes, or market disruptions that could once again destabilize energy prices. [MDN: More fear-mongering from the NYT, trying to scare Europe that the U.S. is an unreliable trading partner. Not true. They have nothing to fear.]
INTERNATIONAL
Crude eases despite winter storm risks
Bloomberg/Rigzone
Oil prices softened as an improved supply outlook from Kazakhstan, marked by the reopening of a vital Black Sea terminal, overshadowed production fears sparked by a severe US winter storm. While the American freeze impacted refineries and boosted heating demand, the influx of Kazakh crude successfully mitigated shortage concerns. Geopolitical tensions in the Middle East and record-high bullish bets from hedge funds continue to support prices, yet the market remains cautious of an impending supply glut from the Americas. This dynamic has prompted OPEC+ to likely maintain steady output levels, prioritizing stability over expansion during a seasonal demand lull. [MDN: WTI for March delivery fell 0.7% to settle at $60.63 a barrel, while Brent for March settlement declined 0.4% to settle at $65.59 a barrel.]
Canada, India agree to grow energy trade in relations reset
Bloomberg/Rigzone
Canada and India are revitalizing their diplomatic and economic ties by relaunching a “ministerial energy dialogue” at India Energy Week. Prime Minister Mark Carney’s government is pivoting toward pragmatic, economy-first diplomacy to diversify export markets amid rising trade tensions with the U.S. The agreement involves expanding reciprocal trade in crude oil, LNG, and refined products while exploring collaboration in hydrogen, AI, and critical minerals. Leveraging the Trans Mountain pipeline and new LNG terminals, Canada aims to significantly increase its market share in India, move past previous diplomatic friction, and secure a comprehensive economic partnership agreement. [MDN: Carney is a phony fraud. He bashed fossil fuels and pushed unreliable renewables for years, and now he’s pushing fossil fuels because he hates Trump.]