MDN’s Energy Stories of Interest: Fri, Sep 26, 2025 [FREE ACCESS]

MARCELLUS/UTICA REGION: Northeast gas demand dwindles on lower power demand, LNG maintenance; OTHER U.S. REGIONS: From ‘affordability’ to schools, climate lies are Zohran Mamdani’s only answer; NATIONAL: U.S. natural gas price extends winning streak; DOE to pull back $13B from clean energy projects; Caturus and Nabors deploy the most powerful onshore drilling rig in U.S.; Oilfield execs dour in Dallas Fed energy survey; Zeldin bars staff from joining climate activists at fancy dinners, events; INTERNATIONAL: Oil swings as NATO and Russian tensions escalate; BP retracts view that oil demand could peak in 2025; India pleads to replace Russian oil with Iranian flows.

MARCELLUS/UTICA REGION

Northeast gas demand dwindles on lower power demand, LNG maintenance
RBN Energy/John Abeln
Late summer and early fall weather has caused a regional slump in natural gas demand, affecting not only the Northeast but also Northeast Asian and European LNG consumption. Cove Point LNG export facility began its annual maintenance on Saturday, expected to last about three weeks, temporarily removing 0.7 Bcf/d of demand, which should loosen market balances and lower cash prices. For the week ending September 23, overall Northeast demand averaged 15.3 Bcf/d, down 0.9 Bcf/d from the prior week. Power sector demand fell 0.5 Bcf/d, LNG feedgas to Cove Point declined 0.4 Bcf/d, and “Other S&D” decreased 0.2 Bcf/d, leaving total balances 0.6 Bcf/d looser. [MDN: Demand is not just local. The M-U now lives and works on a world stage. Our prices and demand for our gas is affected by many things, some of them far outside of our region.]

OTHER U.S. REGIONS

From ‘affordability’ to schools, climate lies are Zohran Mamdani’s only answer
New York (NY) Post/Betsy McCaughey
Climate activists are rallying behind Zohran Mamdani, who is being hailed as New York’s potential “Climate Mayor,” but critics argue his proposals are built on false promises that will worsen affordability. While Mamdani pledges to fight ConEd rate hikes and shift the city to green energy via the state’s Power Authority, opponents call the plan impractical and misleading, warning it will drive costs higher for businesses and households. They note New York’s 2019 Climate Action Plan has already raised energy bills, harming families and discouraging investment. Mamdani’s push for costly building electrification, congestion pricing, and school “green” projects is portrayed as ideological zealotry prioritizing climate goals over economic realities. [MDN: Excellent column from Betsy McCaughey, a former Lt. Governor for NY. Mamdani is a radical anti-Semitic Communist. He should never be elected. What’s NY State going to do when the financial services sector moves out of NY and Wall Street turns into Dung Street? It will crash the economy of the entire state. That’s the fate of the city and state with Mamdani in charge.]

NATIONAL

U.S. natural gas price extends winning streak
Wall Street Journal
U.S. natural gas futures settle higher for a third straight session with increased LNG feedgas flows helping to offset the lack of support from early fall weather. The EIA’s weekly storage report was seen neutral for prices, with the 75 Bcf injection to 3,508 Bcf in line with expectations and close to the five-year average build for the week. “What is not viewed as contributing to recent gains is weather patterns,” with the next 15 days looking at “light to very light temperature-driven demand,” NatGasWeather.com says in a note. Nymex natural gas for October delivery settles up 1.6% at $2.904/mmBtu ahead of tomorrow’s expiration. [MDN: The price keeps inching back up toward the $3 level.]

DOE to pull back $13B from clean energy projects
E&E News/Greenwire/Brian Dabbs
The Department of Energy announced plans to return over $13 billion in unobligated funds from clean energy programs authorized under the Biden administration, citing the Trump administration’s commitment to fiscal responsibility and affordable energy. Energy Secretary Chris Wright said the rescinded funds—part of the One Big Beautiful Bill Act signed July 4—would have supported projects under the Inflation Reduction Act, including the Loan Programs Office, transmission siting, energy efficiency grants, and industrial decarbonization. Wright criticized subsidies for wind, solar, batteries, and EVs as ineffective for decarbonization, echoing Trump’s remarks at the U.N. denouncing clean energy as a “scam.” [MDN: More good things happening by the Trump-run federal government. Every day is like Christmas!]

Caturus and Nabors deploy the most powerful onshore drilling rig in U.S.
Caturus Energy/Nabors
Caturus Energy has contracted Nabors Industries to deploy the PACE-X Ultra™ X33, the most powerful onshore drilling rig in the U.S., featuring a one-million-pound mast rating, 35,000 ft racking capacity, and three 2,000-hp mud pumps supporting 10,000 psi mud pressure, plus fuel-switching technology to reduce carbon intensity. The rig enables the drilling of complex wells (e.g., 4-mile laterals and verticals exceeding 14,000 ft) and is expected to advance Caturus’s goal of safely expanding production from ~650 MMcf/d to 1 Bcf/d by 2029, while setting higher benchmarks for efficiency, safety, and emissions performance. [MDN: We have no clue about the technical details of this rig, but it certainly sounds impressive that it is “the most powerful” onshore rig in the country.]

Oilfield execs dour in Dallas Fed energy survey
Reuters/Georgina Mccartney
Oil and gas activity in Texas, Louisiana, and New Mexico declined modestly in Q3 2025, as executives reported rising pessimism in a Dallas Fed survey. Over a third of exploration and production firms delayed investments amid oil price uncertainty and higher production costs, while oilfield service firms similarly cut spending. Many blamed U.S. policies—tariffs and pressure to lower oil prices—for hampering the sector. Facing tighter margins, companies are increasingly looking abroad, with over 75% expecting shale drilling to become viable outside North and South America in the next decade. [MDN: A couple of thoughts here. Our comment to these anonymous commenters: Suck it up, buttercup. The economy will improve. Second, there is extractable oil and gas from shale in other countries around the planet. Why hasn’t shale taken off there? It’s a simple answer: Because the U.S. is one of the few countries in the world with private property and mineral rights. If surface owners won’t get compensated for shale extraction, their response is “hell no!” We don’t blame them. All of the hassle with none of the benefit. That’s not going to change. The U.S. will continue to be one of the few countries worldwide that extracts O&G from shale.]

Zeldin bars staff from joining climate activists at fancy dinners, events
The Daily Caller
The EPA has instructed staff not to attend events organized by the Environmental Law Institute (ELI), including its Climate Judiciary Project (CJP) and annual awards dinner, in any official capacity, citing “significant concerns” about the group’s potential influence on judges in fossil fuel-related cases. The memo, from Deputy Administrator David Fotouhi, references a House Judiciary Committee investigation, congressional hearings, and a state Attorneys General letter questioning ELI’s legal and ethical conduct and past federal funding. ELI defends its decades-long nonpartisan environmental research and judicial education programs, insisting the CJP provides legitimate, evidence-based training for judges without improper influence. [MDN: It’s time to run the ELI and CJP out of business. Hopefully, this is the beginning of that.]

INTERNATIONAL

Oil swings as NATO and Russian tensions escalate
Bloomberg/Mia Gindis, Veena Ali-Khan
Oil prices fluctuated in volatile trading as escalating Russia-NATO tensions and potential supply shifts weighed on markets. West Texas Intermediate settled at $64.98 after swinging sharply, while Brent closed at $69.42. European leaders accused Moscow of deliberately violating Estonia’s airspace, echoing U.S. President Trump’s call for NATO to shoot down Russian aircraft. Trump also pressured Turkey and Europe to stop buying Russian oil, boosting short-term prices as investors covered bearish bets. Meanwhile, Iraq’s Kurdistan region may resume exports of 500,000 barrels per day, stoking oversupply concerns amid rising OPEC+ and non-OPEC output. Despite geopolitical risks, crude remains rangebound. [MDN: It is that last sentence that is so true. The price of oil has been and continues to be “rangebound” in the $60s. Every now and again it may slip higher or lower than that, but for months and months and months, we’re been sittin’ pretty in the $60s.]

BP retracts view that oil demand could peak in 2025
Bloomberg/Mitchell Ferman
BP Plc’s latest Energy Outlook projects oil demand will keep rising through at least 2030, reversing its earlier forecast of a near-term peak. The company attributes this to growing consumption in emerging markets, slow efficiency gains, persistent petrochemical use, and geopolitical pressures. BP now expects demand to reach 103.4 million barrels per day by 2029, up from 102.2 million this year, with levels returning closer to today’s around 2035. It foresees demand still at 83 million barrels per day in 2050, higher than last year’s estimate. Rising natural gas imports in Asia and surging AI-driven data center power needs are also expected to fuel demand. [MDN: This one is under the “Whoops, guess we were wrong!” department. Gee, ya think?]

India pleads to replace Russian oil with Iranian flows
Bloomberg/Ruchi Bhatia, Rakesh Sharma
Indian officials told the Trump administration that cutting Russian oil imports would only be possible if Washington allowed purchases from sanctioned suppliers Iran and Venezuela. During meetings in the US, the delegation warned that restricting supplies from all three producers could drive up global prices. Despite US tariffs on India for trading with Russia, the country continues importing discounted Russian crude, which helps offset its heavy dependence on foreign oil. Officials noted that Iranian and Venezuelan barrels would also ease costs, while Middle Eastern alternatives are more expensive. India also expressed interest in increasing US energy imports. [MDN: India is feeling the heat from DJT, as well they should.]