MDN’s Energy Stories of Interest: Wed, Jul 9, 2025 [FREE ACCESS]
NATIONAL: Exxon sees $1.5B earnings hit from lower oil, gas prices; Can oil and gas solve the AI power dilemma?; U.S. LNG feedgas demand rose last week; Celebrate American independence by advancing energy dominance; INTERNATIONAL: Oil rises again on Middle East tensions; Who is the world’s top natural gas consumer?
NATIONAL
Exxon sees $1.5B earnings hit from lower oil, gas prices
Bloomberg/Kevin Crowley
Exxon Mobil Corp. anticipates a $1.5 billion earnings drop in the second quarter due to lower oil and gas prices, with oil prices cutting earnings by $1 billion and gas by $500 million compared to the first quarter, as reported in a Monday statement. This follows a volatile period for commodity prices, impacting industry giants like Exxon and Shell, whose shares fell 3.3% after forecasting lower trading earnings. The oil sector faces challenges generating sufficient free cash to sustain increased dividends and buybacks set after 2022’s record profits, exacerbated by President Trump’s trade war and unexpected OPEC supply increases. Despite U.S. and Israeli actions against Iran temporarily boosting prices, Exxon expects a $300 million earnings lift from refining margins. Analyst Biraj Borkhataria notes Exxon’s guidance aligns with expectations, with its smaller trading unit sparing it from Shell’s trading woes. [MDN: Yeah, well, such is life. Prices go up, then they go down, then they go up again. Exxon can survive.]
Can oil and gas solve the AI power dilemma?
Utility Dive/Joe Brettell
The op-ed appearing in Utility Dive explores the growing interdependence of the oil, technology, and utility sectors as AI-driven data centers escalate global energy demands. It highlights how the surge in AI computing requires massive, stable power supplies, prompting tech giants to turn to oil and gas to fuel data centers. Natural gas, in particular, is favored for its reliability and ability to provide consistent power, unlike renewables, which face intermittency challenges. The piece discusses how oil and gas companies are adapting by supplying energy to data centers and integrating AI to optimize their operations, such as predictive maintenance and resource exploration. However, this convergence raises concerns about environmental impacts, as increased fossil fuel use could hinder sustainability goals. The article underscores a structural shift where energy and computing are no longer separate but critical to each other, reshaping investment strategies and industry dynamics. [MDN: AI and data centers won’t exist without natural gas. It’s really that simple. Unreliable renewables are NOT up to the task of power AI. Just ask an AI engine!]
U.S. LNG feedgas demand rose last week
RBN Energy/Lisa Shidler
Last week, U.S. LNG feedgas demand rose to an average of 15.2 Bcf/d, a 0.56 Bcf/d increase from the prior week, primarily due to increased flows to Sabine Pass and Corpus Christi. Sabine Pass, after two trains were offline for June maintenance, resumed full operations by June 22, achieving 96% utilization. Corpus Christi’s feedgas deliveries fluctuated between 1.6 Bcf/d and 2.4 Bcf/d, averaging 2.11 Bcf/d, higher than recent weeks. Modest increases were also seen at Calcasieu Pass and the commissioning Plaquemines terminal, with the latter maintaining around 2.5 Bcf/d. However, feedgas intake at Cameron and Freeport declined; Cameron’s flows briefly dropped below 1.4 Bcf/d on July 4 and 5 due to reduced Columbia Gulf volumes, while Freeport experienced brief outages of Train 1 and Train 2 on July 1 and 2, respectively. Both terminals have since returned to full capacity, aligning with all U.S. terminals currently operating at maximum output. [MDN: Freeport outages again? Why are we not surprised. At least feedgas demand overall went up last week.]
Celebrate American independence by advancing energy dominance
Washington (DC) Examiner/Lee Zeldin
The op-ed from EPA Administrator Lee Zeldin discusses President Donald Trump’s push for American energy dominance through his administration’s Environmental Protection Agency (EPA) policies, aiming to lower energy costs and enhance self-sufficiency. It highlights Trump’s efforts to streamline permitting for critical energy projects, positioning the U.S. as a global energy leader. The piece contrasts the historical reliance on wood and coal during America’s early years and the Industrial Revolution with modern advancements in coal, petroleum, natural gas, nuclear, and hydropower. It criticizes the previous administration for neglecting baseload power, leading to inadequate infrastructure in states like New York, California, and Maryland, where high electricity costs burden residents. These states are suing the EPA to block policies ensuring reliable, affordable energy, prioritizing climate activism over practical energy production. The article frames Trump’s strategy as a modern parallel to the Founding Fathers’ pursuit of independence, fostering an energy-driven economic resurgence. [MDN: Zeldin is a superb EPA Administrator. We are so happy he’s in that position. Real change has already happened and continues to happen under Zeldin.]
INTERNATIONAL
Oil rises again on Middle East tensions
Bloomberg/Mia Gindis, Catherine Cartier
Oil prices rose for a second consecutive session, driven by technical factors and escalating Middle East tensions. West Texas Intermediate crude settled at 68.33 per barrel, briefly surpassing its 200-day moving average, while Brent closed at $70.15. The rally was fueled by Yemen’s Houthi militants attacking a commercial ship, signaling heightened threats to maritime traffic, particularly in the Bab el-Mandeb Strait, where tanker passages remain low. Despite geopolitical concerns, the market’s focus remains on robust supply-and-demand dynamics, with solid demand in the US and China and tightness in physical markets. Saudi Arabia’s unexpected price hike for Asian buyers reflects confidence in market strength, even as OPEC+ plans to ramp up production in August. However, the US’s proposed 25% tariffs on goods from Japan and South Korea introduced uncertainty, potentially impacting long-term energy demand. Low oil inventories and expected tighter balances are likely to support prices further. [MDN: Japan and South Korea need us way more than we need them. The tariff is a threat aimed at making them stop screwing us over. It will get worked out. The Houthis, on the other hand, should be looking over their dirty shoulders. They can expect some bombs to visit them…soon.]
Who is the world’s top natural gas consumer?
Rigzone/Andreas Exarheas
The Energy Institute’s (EI) 2024 Statistical Review of World Energy identifies the United States as the top natural gas consumer, using 32.5 exajoules, a 1.3% increase from 2023, accounting for 21.9% of global consumption. U.S. demand grew 2.2% annually from 2014 to 2024. Russia, the second-largest consumer, used 17.2 exajoules (11.6% of global demand), up 4.9% year-on-year, with a 1.2% average annual growth over the decade. China, third, consumed 15.6 exajoules (10.5% of global demand), up 7.0% from 2023, with an 8.7% annual growth rate since 2014. Global natural gas consumption reached 148.6 exajoules, a 2.5% increase from 2023, with non-OECD countries driving 56.8% of demand. The Asia-Pacific region, led by China, Japan, and India, fueled half the growth, while Europe saw a modest rebound. The EI, now the review’s custodian, has provided comprehensive energy data since 1952. [MDN: We are the world’s largest natural gas producer, and the world’s largest natural gas consumer.]