MDN’s Energy Stories of Interest: Thu, Jul 24, 2025 [FREE ACCESS]
MARCELLUS/UTICA REGION: Pittsburgh’s real renaissance has never been tried — until now; NATIONAL: Forecasts fade for heat wave, putting natural gas futures in freefall; Coal-fired power plants are well-stocked this year; No more easy ride for wind and solar (OBBB guidance, risks ahead); Promises made, promises kept – Trump and gas prices; Converging Exxon and Chevron operations could spur next mega-merger; INTERNATIONAL: Oil holds steady amid trade deal hopes.
MARCELLUS/UTICA REGION
Pittsburgh’s real renaissance has never been tried — until now
RealClearWire/Oliver Bateman
The recent AI-energy summit at Carnegie Mellon University marked a significant departure from Pittsburgh’s past economic reinvention efforts, which often fell short, by focusing on leveraging the region’s abundant natural gas reserves and skilled workforce to meet the surging energy demands of AI data centers. Organized by U.S. Sen. Dave McCormick and featuring Gov. Josh Shapiro and President Donald Trump, the summit secured $92 billion in private investment pledges, including $25 billion from Blackstone, $6 billion from CoreWeave, and $15 billion in gas contracts from EQT Corp for projects like the Homer City redevelopment. Unlike previous overhyped initiatives, this plan capitalizes on Pennsylvania’s existing strengths—its vast Marcellus Shale gas reserves and experienced tradespeople—offering a practical bridge fuel for data centers until nuclear energy scales up. Despite environmental concerns, the bipartisan support and focus on immediate, tangible economic benefits signal a promising, grounded approach to Pittsburgh’s economic future. [MDN: An excellent op-ed that makes a key point. It explains why “this time it’s different” with respect to a Pittsburgh renaissance. Why is it different? Because this time the coming change leverages what Pittsburgh and the surrounding region already have (and not something it doesn’t have): the Marcellus Shale.]
NATIONAL
Forecasts fade for heat wave, putting natural gas futures in freefall
NGI’s Daily Gas Price Index/Andrew Baker
August natural gas futures fell for the third consecutive session, settling at $3.077/MMBtu, down 17.5 cents, driven by weakening near-term fundamentals including cooler weather forecasts, increased production, and a nine-unit rise in drilling rigs. Despite a brief rally last week due to anticipated late July heat, revised weather models showed reduced cooling degree days, and LNG feed gas demand dropped to 15 Bcf/d from recent highs. A heat dome is expected to drive high demand through early next week, but cooler trends from July 30 to August 6 tempered bullish sentiment. Ample storage surpluses and a shift toward coal and renewables in the power sector further pressured prices. The upcoming EIA storage report is expected to show a 30 Bcf injection, aligning with the five-year average. Physical market prices were mixed, with high storage levels potentially capping spot price gains, signaling limited upside for futures. [MDN: Down to $3.08. Yuck. Will it slip below $3 again? We certainly hope not. Keep an eye on the weather, and the NYMEX price. The good news, if there is any, is that the cash/spot price in the northeast bumped up. Iroquois Zone 2 climbed $2.395 to $5.455.]
Coal-fired power plants are well-stocked this year
U.S. Energy Information Administration – Today in Energy
The U.S. Energy Information Administration’s Short-Term Energy Outlook indicates that U.S. coal-fired power plants are expected to maintain robust coal inventories through 2026, with an estimated 124 million short tons on-site at the end of June, equating to about 93 days of burn based on a daily consumption rate of 1.3 million short tons. Despite a decline in coal inventories since early 2024, reduced coal consumption has kept the days of burn metric high, projected to range between 90 and 120 days through 2026, exceeding levels from 2019 to 2022. A temporary increase in coal consumption is anticipated in 2025 due to rising electricity demand and coal’s improved competitiveness against higher natural gas prices, with coal’s share of electricity generation expected to rise from 16% in 2024 to 17% in 2025, before dropping to 15% in 2026 due to planned coal plant retirements and increased renewable energy capacity. [MDN: There’s no denying coal is a great fuel for power generation. Its use has declined significantly over the past 10-15 years. It’s much dirtier than burning natgas. However, coal is easy to store and use and will continue to play a role in powergen for the foreseeable future. Just look at China, which continues to build and bring online one new coal plant PER WEEK.]
No more easy ride for wind and solar (OBBB guidance, risks ahead)
Master Resources/Lisa Linowes
The article “No More Easy Ride for Wind and Solar” by Lisa Linowes, published on July 22, 2025, outlines the significant challenges facing new wind and solar projects due to the One Big Beautiful Bill Act (OBBBA). The OBBBA introduces stricter tax credit rules, supply chain restrictions, and aggressive enforcement, signaling the end of easy tax-driven renewable development as subsidies expire post-2027. The law complicates eligibility for Production and Investment Tax Credits, increasing legal and financial risks for developers and investors. Key challenges include proving genuine construction starts, meeting stringent domestic sourcing requirements (40% in 2026, 45% in 2027) to avoid Foreign Entities of Concern, and facing rigorous IRS audits with a six-year clawback period. An Executive Order amplifies enforcement, prioritizing reliable energy over speculative projects. These changes aim to protect taxpayers, reduce reliance on foreign suppliers, and ensure energy projects align with national interests, potentially reducing new project starts and increasing costs. [MDN: The dirty little not-so-secret is that wind and solar can’t survive without heavy taxpayer subsidies. And we’re tired of throwing good money down the unreliable renewable rathole. The OBBBA allows renewables to receive subsidies if they actually begin within the next year. What the truly beautiful OBBBA has done is to expose the left’s Big Green grifting. They talk a good game, but line their own pockets at our expense and never actually produce anything from the good money we give them. Those days are over.]
Promises made, promises kept – Trump and gas prices
Daily Caller/David Blackmon
In his article, David Blackmon highlights President Donald Trump’s success in fulfilling his 2024 campaign promise to lower gasoline prices, noting that in 2025, U.S. consumers enjoyed the lowest gas prices in four years during the summer driving season. Blackmon attributes this to a combination of favorable global market conditions and Trump’s energy policies, which include reversing restrictive Biden-era regulations. Key cabinet members like Chris Wright, Doug Burgum, Lee Zeldin, and Sean Duffy have facilitated increased U.S. oil and natural gas production, particularly from shale plays like the Marcellus and Permian Basin, boosting exports. The administration’s efforts to expand energy infrastructure and revitalize federal lease sales, alongside a stable Middle East oil supply and reduced global demand from China, have driven crude prices down from $79.10 per barrel at Trump’s inauguration to $68. Blackmon concludes that these factors ensure continued low gas prices, benefiting American drivers. [MDN: The perfect headline for this article and for Trump’s presidency. He has kept his promises. It’s stunning what a competent, driven, focused person can do in the White House. It’s equally stunning what a mess a cognitively impaired person in the White House can do, like Trump’s predecessor.]
Converging Exxon and Chevron operations could spur next mega-merger
Reuters/Ron Buosso
Exxon Mobil and Chevron’s recent acquisitions, including Exxon’s $60 billion purchase of Pioneer Natural Resources and Chevron’s $60 billion acquisition of Hess, have significantly overlapped their operations, particularly in the U.S. Permian basin and Guyana’s Stabroek oilfield, prompting speculation about a potential $800 billion merger. Such a combination would evoke memories of Standard Oil’s breakup in 1911, though modern energy sector diversification might mitigate monopoly concerns. The oil and gas industry is undergoing consolidation driven by volatile energy prices, the energy transition, and geopolitical tensions, which could incentivize a merger to streamline operations and cut costs. Exxon and Chevron, with a combined market value of $775 billion, share significant operations in the U.S., Guyana, Kazakhstan, Australia, and West Africa. While cultural differences and legal complexities pose challenges, the financial benefits from merging could be substantial, potentially signaling a new era for the industry. [MDN: Exxon and Chevron merging? We suppose it could happen, but we reckon this article is just idle chitter chatter. We don’t there’s a serious effort to combine the two companies.]
INTERNATIONAL
Oil holds steady amid trade deal hopes
Bloomberg/M. Gindis, C. Cartier, J. Fanzeres
Oil prices remained stable as global equities approached record highs, driven by optimism over potential U.S.-EU trade deal progress, which could impose 15% tariffs on European imports, similar to a recent U.S.-Japan agreement. West Texas Intermediate crude settled slightly above $65 per barrel, recovering from earlier losses triggered by a U.S. Energy Information Administration report showing rising inventory levels at Cushing, Oklahoma—the delivery point for WTI futures—to their highest since June, alongside a second consecutive week of increased distillate reserves. Despite these builds, overall crude inventories dropped, and diesel stocks hit their lowest seasonal level since 1996, supporting oil prices. However, concerns persist about future inventory increases and the impact of President Trump’s tariff policies, which could dampen consumption as OPEC+ ramps up production. Crude prices have stayed within a tight range this month, following June’s volatility sparked by the Israel-Iran conflict, with U.S. crude down about 10% in 2025. [MDN: “Concerns persist” about Trump’s trade tariffs, yet, they are a smashing success! Our country is hauling in hundreds of billions in new revenue which will help reduce the tax burden on everyone. Inflation is in check (is NOT rising). The tariffs are working. Yet Bloomberg Commies continue to say there are “concerns.” Oil is sittin’ pretty. West Texas Intermediate for September delivery fell 0.1% to settle at $65.25 a barrel. Brent for September settlement fell 0.1% to $68.51 a barrel.]