MDN’s Energy Stories of Interest: Tue, Aug 5, 2025 [FREE ACCESS]
MARCELLUS/UTICA REGION: PJM’s record auction proves we must keep—and build—more coal plants; Buildsylvania – Pennsylvania’s AI-driven construction boom; NATIONAL: EPA moves to rescind the Obama-era Endangerment Finding; Another Burgum order coldcocks solar and wind; The renewable illusion; why fossil fuels keep winning; INTERNATIONAL: Oil drops in choppy trade on Russia uncertainty, OPEC+ increase; BP chair to review business as pressure mounts on turnaround; Tankers deliver Russian crude to India despite US, EU pressure; Qatar’s LNG warning highlights Europe’s fragile energy strategy.
MARCELLUS/UTICA REGION
PJM’s record auction proves we must keep—and build—more coal plants
RealClearEnergy/Terry L. Headley
The article by Terry L. Headley on RealClearEnergy argues that the 2026/2027 PJM Interconnection capacity auction, which cleared at the maximum legal price of $329.17 per megawatt-day across all zones, signals a critical need to preserve and expand coal-fired power plants to prevent energy poverty and grid failure. The auction revealed that despite heavy subsidies for renewables, fossil fuels—coal (22%), natural gas (45%), and nuclear (21%)—dominated cleared capacity, while wind and solar contributed only 4%. Headley highlights the retirement of nearly 100,000 megawatts of coal capacity over 15 years and rising electricity demand from AI, data centers, and electrification, warning of potential blackouts. He advocates maintaining existing coal plants, upgrading their technology, and building new ones, citing their reliability and national security benefits. Headley criticizes reliance on intermittent renewables and foreign supply chains, urging a pragmatic focus on coal as a dependable, long-term energy solution. [MDN: We’re not sure we would reach the same conclusion about coal, but we certainly need more gas-fired power. We’re not against coal, but it’s much dirtier for the environment than natgas (although new technology can help with that). The point of the article is that unreliable renewables are only providing 4% of PJM’s electricity. Pathetic.]
Buildsylvania: Pennsylvania’s AI-driven construction boom
RealClearPennsylvania/Athan Koutsiouroumbas
Pennsylvania is on the cusp of a massive construction boom, dubbed “Buildsylvania,” driven by the surging energy demands of artificial intelligence and a national push to lead in AI innovation. The state, once a powerhouse during the Industrial Revolution, is poised to reclaim its economic prominence, fueled by a $92 billion private sector investment in energy and AI infrastructure, including grid upgrades and dam refurbishments. This follows a fracking boom that made Pennsylvania a net energy exporter, but AI’s energy-intensive nature—consuming 10 to 100 times more power than traditional software—requires unprecedented energy production facilities. The Midatlantic grid operator’s recent electricity auction saw prices soar to $329.17 per MW per day, reflecting this demand. However, challenges loom: regulatory red tape and a severe shortage of skilled workers, with only 17,000 Career and Technical Education graduates annually, threaten progress. Policymakers must overhaul workforce development, potentially through expanded apprenticeships, school choice for trades, and tax credits, to meet the trillion-dollar project’s needs. [MDN: As we previously noted, this $92 billion is PA’s opportunity to blow. Let’s hope the state doesn’t. OH and WV are on the doorstep, ready to take some of that business away.]
NATIONAL
EPA moves to rescind the Obama-era Endangerment Finding
Institute for Energy Research
EPA Administrator Lee Zeldin proposed repealing the 2009 Obama-era Endangerment Finding, which has underpinned over $1 trillion in federal climate regulations, including the Biden administration’s electric vehicle mandate requiring two-thirds of light-duty vehicles and 46% of medium-duty vehicles to be electric by 2032. The repeal would eliminate all greenhouse gas standards for vehicles and engines, saving Americans an estimated $54 billion annually by reducing regulatory burdens on transportation and stationary emission sources. Zeldin argues the finding relies on outdated data and misrepresents carbon dioxide’s impact, citing a U.S. Department of Energy report questioning climate model accuracy and aggressive mitigation policies. The trucking industry supports the move, favoring innovation-driven emission reductions over costly mandates. The proposal, facing potential lawsuits, requires public comments by September 21. Supporters see it as restoring consumer choice and economic growth while maintaining environmental progress through market-driven innovation. [MDN: As we have written, this is a HUGE deal, to overturn the Endangerment Finding. Of all the astounding things Trump and his people have done, this (in our opinion) would be the crowning achievement—the top of the list.]
Another Burgum order coldcocks solar and wind
E&E News – Greenwire/Scott Streater, Ian Stevenson
Interior Secretary Doug Burgum’s recent order, issued on August 4, 2025, targets wind and solar development by requiring Interior agencies to evaluate new onshore and offshore renewable energy projects based on “capacity density,” highlighting their larger land and water use compared to oil, gas, or nuclear power. This move, part of a series of restrictive actions by the Trump administration, raises concerns about the future of approximately 35 solar and three wind projects on federal lands, potentially undermining the Bureau of Land Management’s multiple-use mandate. The order follows the rescinding of a requirement for a five-year offshore renewable energy lease schedule, further limiting renewable development. Critics, including industry advocates and environmental groups, argue the policy favors fossil fuels, hampers clean energy transitions, and may force developers to pursue legal action to protect significant investments in approved projects like the Rough Hat Clark Solar Project in Nevada. [MDN: We just loved the headline! Burgum is 100% correct. Why should we waste federal lands on huge solar and wind farms that eat up enormous amounts of acreage when we can install much smaller oil and gas wells (or even nuclear sites) that take up a tiny fraction and produce 10X, 100X, 1000X more energy? Capacity density is a good way to think about it. Local municipalities should do the same.]
The renewable illusion; why fossil fuels keep winning
Forbes/Robert Rapier
The 2025 Statistical Review of World Energy highlights that despite significant growth in renewable energy, fossil fuels continue to dominate global energy consumption due to rising demand, particularly in non-OECD countries like China and India. In 2024, renewables grew to 32.74 exajoules (EJ), or 5.5% of the total 580 EJ consumed globally, but only met 23% of the 11.9 EJ demand increase, with fossil fuels, especially natural gas, filling the gap, leading to higher carbon emissions. Solar power surged by 27.5% to 7.7 EJ, driven by non-OECD countries, with China producing nearly 40% of global solar. Wind reached 9.0 EJ but grew slower at 7.2% annually, while hydropower, at 16.0 EJ, stagnated. Non-OECD nations now lead in non-hydro renewables, surpassing OECD countries. Despite cost declines and innovation, renewables struggle to displace fossil fuels, merely supplementing growing energy needs. [MDN: Let’s be brutally honest…unreliable renewables will always be a bit player in the worldwide energy scene.]
INTERNATIONAL
Oil drops in choppy trade on Russia uncertainty, OPEC+ increase
Bloomberg/Mia Gindis, Catherine Cartier, Alex Longley
Oil prices declined in volatile trading as OPEC+ announced a significant supply increase of 547,000 barrels per day for September, reversing previous cuts and raising concerns about a potential oversupply. West Texas Intermediate crude fell 1.5% to $66.29 a barrel, while Brent crude dropped 1.3% to $68.76, following U.S. President Donald Trump’s threats to impose tariffs on India for purchasing Russian oil. This development, coupled with soft U.S. jobs data signaling economic slowdown, added downward pressure on prices. India, a major buyer of Russian crude since 2022, may face supply disruptions, potentially tightening markets. However, analysts like Pavel Molchanov from Raymond James suggest the market assigns low probability to significant disruptions in Russian oil exports. The OPEC+ supply hike aims to reclaim market share, but it may lead to rising global stockpiles, particularly in China, potentially compressing market timespreads and triggering further price declines. [MDN: Back in the $60s, where we love it.]
BP chair to review business as pressure mounts on turnaround
Bloomberg/Mitchell Ferman
BP Plc, under pressure from activist investor Elliott Investment Management, announced a comprehensive portfolio review led by incoming chairman Albert Manifold to address years of underperformance and enhance shareholder value through improved capital allocation. The London-based oil major reported second-quarter earnings of $2.35 billion, surpassing analyst expectations, and reduced structural costs by $900 million in the first half of 2025, alongside $3 billion in divestments to lower debt and refocus on its core oil and gas operations. CEO Murray Auchincloss emphasized further cost-cutting efforts, building on a February strategic reset that included $20 billion in asset sales by 2027. Despite progress, including a significant oil discovery in Brazil, BP faces challenges in meeting investor expectations, with its lubricants unit Castrol’s divestment potentially delayed for further review. The company maintained $750 million in quarterly share buybacks and raised its dividend by 4%, while net debt fell to $26 billion. [MDN: This is what happens when you forget you’re an OIL company, and not an unreliable renewable energy company. Hard decisions must be made to right the ship. BP is going through that process.]
Tankers deliver Russian crude to India despite US, EU pressure
Bloomberg/Weilun Soon, Rakesh Sharma
Over the weekend, at least four tankers delivered millions of barrels of Russian crude, including nearly 2.2 million barrels of Urals and over 720,000 barrels of Varandey, to Indian refineries owned by private companies like Nayara Energy and Reliance Industries, as well as state-run Bharat Petroleum and Mangalore Refinery. This occurred despite increased U.S. pressure on India to halt Russian oil purchases, following President Trump’s threats of punitive actions and a 25% tariff on Indian exports, with a senior aide accusing India of funding Russia’s war in Ukraine. India has not directed refiners to stop imports, and more tankers are set to unload another 2.2 million barrels soon. India’s role as the largest buyer of Russia’s seaborne oil, driven by discounted prices and long-term deals like Reliance’s with Rosneft, remains a contentious issue for the U.S. and its allies, with scrutiny intensified by recent EU sanctions on Nayara for its Russian ties. [MDN: Sanctions on the companies and ships delivering the oil. Make them unable to ship anything to a U.S. or EU country. Make them a pariah around the world. Make India pay for violating our call to end Russian oil sales in a bid to stop the Ukraine war. Also, stop all Indian imports to the U.S., see if that catches their attention. And stop using Indian call centers!]
Qatar’s LNG warning highlights Europe’s fragile energy strategy
OilPrice.com/Simon Watkins
Qatar, Europe’s third-largest LNG supplier, has threatened to halt deliveries if the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) imposes penalties on its companies, highlighting Europe’s vulnerable energy strategy. The CSDDD requires large firms to address environmental and human rights impacts, with non-compliance potentially incurring fines up to 5% of global turnover. Qatar’s Minister of State for Energy Affairs, Saad al-Kaabi, called the legislation “ridiculous” and reiterated the threat in a letter to the European Commission. Losing Qatar’s LNG, which supplied 10 million metric tonnes to Europe last year, would exacerbate the region’s energy security challenges, especially as it plans to phase out Russian gas by 2027 and relies heavily on U.S. supplies. With Qatar planning to double its LNG production to 160 million mtpa by 2030, a supply shift to China could weaken Europe’s energy resilience and strain Western unity, particularly amid potential geopolitical tensions, such as China’s plans for Taiwan in 2027. [MDN: We’re not the only ones who think countries (and companies) should tell the arrogant Euroweenies to stick their directives where the sun don’t shine. We’ve said as much many times on MDN (see Europeans Presume to Impose Their Regulations on American Gas). Qatar isn’t going for it, and neither should the U.S.]