MDN’s Energy Stories of Interest: Mon, Nov 24, 2025 [FREE ACCESS]
OTHER U.S. REGIONS: Shale rigs idle, layoffs rise as $60 oil tests resilience of Permian; Permian gas wave sparks biggest pipeline buildout since the shale boom; NATIONAL: U.S. natural gas gains as traders focus on weather; New Fortress Energy warns of bankruptcy, shares tumble; New FERC commissioners say connecting data centers is key priority; U.S. associated natural gas production increased 6% in 2024; Top MIT scientist blasts ‘climate hysteria,’ global warming fears are driven by money; Export-Import Bank to spend $100bn to achieve US energy dominance; AI most energy-hungry tech ever invented – data centers, the grid, and black swans; INTERNATIONAL: Oil slides on peace deal pressure; European natural gas plummets to 18-month low; COP30 ends with a whimper; U.N. climate talks fizzle out 10 years after Paris accord; The global warming panic is subsiding; Russian oil offered to India at deep discount.
OTHER U.S. REGIONS
Shale rigs idle, layoffs rise as $60 oil tests resilience of Permian
Reuters/Arathy Somasekhar
Despite record U.S. oil output, the Texas shale industry is suffering a downturn as crude prices hovering around $60 per barrel squeeze profitability. In the Permian Basin, rising costs from inflation and tariffs have made drilling increasingly expensive, creating “upside down” economics for producers. Consequently, major companies are idling rigs and laying off workers, causing unemployment to rise in oil-dependent towns like Midland and Odessa. Local businesses report declining sales as the service sector contracts. With efficiency gains plateauing and investors prioritizing returns over growth, the region faces a bleak outlook where high national production numbers mask significant local economic distress. [MDN: We saw this kind of boom/bust thing during Trump’s first term in office. It will change. Give it time. Good economic days are ahead.]
Permian gas wave sparks biggest pipeline buildout since the shale boom
OilPrice.com/Tsvetana Paraskova
Rising demand for Permian natural gas, driven by booming LNG exports and data centers, is fueling a historic pipeline construction boom along the U.S. Gulf Coast. Aided by favorable regulations, developers are investing $50 billion to expand capacity by 13% next year, the largest increase since 2008. This expansion shifts from a producer-led model to “demand-pull” investment to connect low-cost supply with soaring power and export needs. These projects aim to relieve Permian bottlenecks that caused negative pricing, with companies like TC Energy forecasting significant demand growth by 2035 due to LNG and electrification trends. [MDN: All that associated gas will be put to good use either by powering data centers or flowing to LNG export facilities.]
NATIONAL
U.S. natural gas gains as traders focus on weather
Wall Street Journal
U.S. natural gas futures rise ahead of the weekend as the market keeps close watch on shifts in the weather outlook, particularly for signs of further cold in December. Changing weather forecasts have kept natural gas prices volatile, with traders typically seeing more risk heading into the weekend. “I think the bears will be more nervous than the bulls about what that Sunday map will look like,” Scott Shelton of TP ICAP says in a note. Nymex natural gas for December delivery settles up 2.4% at $4.58/mmBtu, up 0.3% on the week. [MDN: A little over a month ago, the NYMEX gas price went from bumping around at or just above/below $3 to over $4, where it has stayed. Good news for drillers and landowners. It has also affected the spot price.]
New Fortress Energy warns of bankruptcy, shares tumble
Bloomberg/Ruth Liao
Shares of Wes Edens’ New Fortress Energy Inc. plummeted nearly 27% after the LNG firm warned it may seek bankruptcy protection in the US or UK if current out-of-court debt restructuring efforts prove unsuccessful. Grappling with dwindling revenue and an overwhelming $8 billion in liabilities against just $1.3 billion in assets, the company formally expressed “substantial doubt” regarding its ability to continue as a going concern. While New Fortress recently secured a brief reprieve with creditors to delay interest payments until mid-December, the stock remains down over 80% this past year as it struggles to manage accelerating debt obligations. [MDN: It appears this company, which is an important player in the LNG space, is in trouble. Keep an eye out.]
New FERC commissioners say connecting data centers is key priority
Utility Dive/Ethan Howland
New Federal Energy Regulatory Commission (FERC) Chair Laura Swett and Commissioner David LaCerte declared that rapidly connecting AI data centers is a top priority, emphasizing the need for bold action while protecting ratepayers from undue costs. Swett plans to streamline regulations and cut red tape to incentivize investment, asserting that independent agency decisions must remain legally durable. The commission is reviewing Department of Energy proposals regarding data center interconnections. Additionally, FERC’s winter outlook predicts a 26% jump in natural gas prices despite warmer forecasts. The agency also moved to close stagnant dockets and considers blanket authorizations to optimize permitting processes. [MDN: New Chairperson Laura Swett hit the ground running at her first open meeting last Thursday. We look forward to good things ahead at FERC.]
U.S. associated natural gas production increased 6% in 2024
U.S. Energy Information Administration – Today in Energy
In 2024, U.S. associated natural gas production rose by 6% to average 18.5 billion cubic feet per day (Bcf/d), primarily driven by crude oil growth in the Permian region. According to Enverus DrillingInfo, the Permian led this expansion with an 8% increase to 12.5 Bcf/d, supported by high oil prices and increased drilling activity. While five major oil-producing regions contributed to the total, the Permian accounted for the bulk of the growth. This increase in associated “wet gas” also spurred record production of natural gas plant liquids, particularly ethane, which serves as a critical feedstock for the petrochemical industry. [MDN: With oil prices heading lower right now, you can expect associated gas production to slow, which is good for M-U molecules.]
Top MIT scientist blasts ‘climate hysteria,’ global warming fears are driven by money
London (UK) Daily Mail
MIT meteorologist Richard Lindzen challenges the prevailing consensus on climate change, arguing that global warming alarmism is driven by political and financial motives to control the energy industry rather than realistic data. Lindzen contends that CO? is a minor, beneficial gas and that natural mechanisms, like his proposed “Iris effect,” self-regulate planetary temperatures to prevent catastrophe. He and other skeptics, such as Judith Curry, allege that dissenting research is frequently suppressed by academic institutions. Ultimately, Lindzen warns that strict net-zero policies impose devastating economic costs for negligible climate benefits, a perspective echoed by other experts questioning the validity of apocalyptic models. [MDN: Someday, brave scientists who engage in real science, like Lindzen (and Curry), will be heralded as heroes, and the mass of climate lemmings from our era will be exposed as simpering frauds.]
Export-Import Bank to spend $100bn to achieve US energy dominance
Financial Times/Camilla Hodgson, Jamie Smyth
The US Export-Import Bank plans to deploy $100 billion to fulfill President Trump’s vision of global energy dominance, stated new chair John Jovanovic. To counter Western reliance on China and Russia, the agency is prioritizing financing for critical minerals, nuclear energy, and liquefied natural gas (LNG). Jovanovic highlighted initial deals, such as a $4 billion gas guarantee for Egypt and a mining loan in Pakistan, asserting the bank is “open for business.” Unlike institutions shunning fossil fuels, Ex-Im will actively fund LNG and nuclear projects to secure supply chains and stabilize energy markets for US allies. [MDN: We’re not crazy about taxpayer money being used for this, but it’s better we spend the money on fossil energy and nukes rather than haywire, unreliable renewables as was done by past administrations like President Autopen.]
AI most energy-hungry tech ever invented – data centers, the grid, and black swans
Financial Sense
Mark Mills describes AI as the “most energy-hungry” technology in history, triggering a data center construction boom that now outpaces commercial building spending. This shift creates massive demand for skilled trades while threatening white-collar roles. However, the U.S. grid faces a “perfect storm” of soaring demand from AI, EVs, and reshoring, exacerbated by policies retiring reliable coal and nuclear plants. Because expanding transmission lines takes too long, tech giants are increasingly building off-grid, natural gas-powered solutions. Mills argues that despite these infrastructure hurdles, the U.S. is uniquely positioned to lead this economic revolution due to its abundant energy resources. [MDN: It’s an exciting time to be alive if you work in the energy industry. Particularly in fossil energy. AI data centers are changing everything. We need gas-fired power plants like never before.]
INTERNATIONAL
Oil slides on peace deal pressure
Bloomberg/Will Kubzansky, Nicholas Lua
Oil prices retreated, with West Texas Intermediate falling 1.6% to settle near $58 a barrel, as traders assessed the likelihood of a US-pressured Ukraine-Russia peace deal. The market is bracing for a potential easing of sanctions that would release more supply into an already saturated global market. Although President Trump signaled sanctions remain active for now and European allies voiced opposition, skepticism regarding future enforcement is prompting traders to increase short positions. Coupled with rising output from OPEC+ and the US, these geopolitical developments highlight a looming surplus, keeping oil futures on track for an annual loss. [MDN: Still close to $60 for WTI. The WTI contract for January delivery fell 1.6% to settle at $58.06 a barrel. Brent for January settlement dropped 1.3% to settle at $62.56.]
European natural gas plummets to 18-month low
OilPrice.com/Michael Kern
European natural gas prices dropped to their lowest levels since May 2024, driven by favorable weather forecasts and geopolitical developments. Models predicting milder temperatures have alleviated demand concerns following a recent cold snap. Simultaneously, markets reacted to a proposed U.S. peace plan for Ukraine, which might ease sanctions on Russian energy or secure continued pipeline supplies. Although European inventories are lower than last year, rising LNG imports are supporting supply. Nevertheless, analysts warn that future prices remain highly sensitive to weather patterns and the uncertain progress of peace negotiations between the U.S., Ukraine, and global partners. [MDN: We would call this a temporary blip. The first cold snap, or if the proposed deal to settle the war between Russia and Ukraine goes off the rails, watch for Europe’s gas prices to soar.]
COP30 ends with a whimper
The Economist
COP30 in Belém, Brazil, ended underwhelmingly, beset by symbolic disasters like floods and a venue fire. Amid confirmation that global warming will soon exceed the 1.5°C target, focus shifted toward mitigating this overshoot. Although delegates agreed to triple adaptation funding by 2035 and launched a $125bn tropical forest fund, the summit failed to advance critical commitments. Opposition from nations like Saudi Arabia and Russia erased references to phasing out fossil fuels and ending deforestation from the final text. Ultimately, with the US absent and China hesitating to lead, the conference concluded without a concrete roadmap for averting climate catastrophe. [MDN: The latest COP meeting was a bust. If dupes like the U.S. don’t agree to shake down their citizens to give the money away to Big Green grifters, the whole thing falls apart. What does that tell you? It tells you it was always a scam, right from the beginning. Thank God Donald Trump got us out of it.]
U.N. climate talks fizzle out 10 years after Paris accord
Washington (DC) Post/Jake Spring, Marina Dias, Chico Harlan
At the United Nations climate summit in Brazil, nearly 200 countries agreed to triple adaptation funding for developing nations but ultimately rejected proposals to phase out fossil fuels. This outcome represents a victory for oil and gas interests, as major producers like Saudi Arabia and Russia blocked the measure, citing economic concerns. The United States was notably absent from negotiations. While the European Union pushed for stronger language on emissions, the final accord emphasizes adaptation and future trade discussions. Despite the lack of global consensus, Brazil announced a separate voluntary coalition of 80 nations committed to ending fossil fuel use, shifting focus toward specific real-world implementation. [MDN: Yet Brazil itself is incapable of ending its own use of fossil fuels. The meeting was a bunch of grifters with their hands out, except this time the U.S. wasn’t there to put any money in those grubby hands.]
The global warming panic is subsiding
National Review/Andrew Follett
According to Andrew Follett, global warming is fading as a top political priority, evidenced by declining poll numbers in Sweden, the EU, and the U.S., notably among youth. This shift stems from economic pressures, energy security concerns, and rising skepticism regarding “unhinged” activist tactics and failed apocalyptic predictions. The article highlights that public willingness to pay for climate initiatives has collapsed. As figures like Greta Thunberg move to other issues and Bill Gates softens his rhetoric, the author suggests a worldwide retreat from climate alarmism is occurring amidst “crisis overload” and shifting public priorities. [MDN: Just open your eyes. The grifters, like Thunberg (a young girl on the autism spectrum) is “moving on” to other things, like anti-Semitism. The left is tired of drilling the dry hole of global warming alarmism and is moving on. Finally.]
Russian oil offered to India at deep discount
Bloomberg/Rakesh Sharma, Yongchang Chin
Russia’s flagship Urals crude is being offered to Indian refiners at the lowest prices in over two years, with discounts reaching $7 per barrel against Dated Brent following new US sanctions on major producers Rosneft and Lukoil. Although Indian refiners initially paused purchases and shifted toward Middle Eastern supplies, the steep price drop—down from a previous $3 discount—has reignited interest in acquiring oil from non-sanctioned sellers. However, risks remain high, as only about one-fifth of the available cargoes currently come from entities not targeted by the blacklist. [MDN: India needs to keep its nose clean and not buy this oil. Treat it as radioactive, because the U.S. is watching.]