MDN’s Energy Stories of Interest: Thu, Jan 8, 2026 [FREE ACCESS]

OTHER U.S. REGIONS: Lotus Infrastructure closes acquisition of the Caithness Long Island Energy Center; NATIONAL: U.S. natural gas futures snap losing streak; Execs have different views on potential AI impact on breakevens; Why the U.S. Senate must soon pass the SPEED Act and the MRCA of 2025; CFACT to feds – time to define “water” sensibly; Hunt for scale to keep US shale deals ticking along; INTERNATIONAL: WTI drops as US markets Venezuela oil; USA seizes two more sanctioned ships with Venezuela oil; Equinor says AI saved it $130 million in 2025; Five things to watch in Canada’s oil and gas industry in 2026; EU accused of fueling Putin’s war by importing Russian LNG; LNG market moves from famine to feast on wave of new supply; Global warming sustained a naval power that dwarfed Vikings.

OTHER U.S. REGIONS

Lotus Infrastructure closes acquisition of the Caithness Long Island Energy Center
Lotus Infrastructure Partners
Lotus Infrastructure Partners has successfully finalized the acquisition of the Caithness Long Island Energy Center, a 365 MW natural gas-fired power facility in Suffolk County, New York. Operating since 2009, the plant is recognized as one of the most efficient natural gas combined cycle assets in the NYISO, providing essential low-cost and highly reliable power to the Long Island region. Following the close of the transaction, Lotus plans to rename the facility the Brookhaven Energy Center. This acquisition highlights the facility’s continued importance as a critical infrastructure asset for New York’s regional energy reliability and grid stability. [MDN: Yeah, well, Lotus is a brave company investing in a gas-fired power plant in the NYC region, given that area’s penchant for blocking fossil energy sources. Good luck!]

NATIONAL

U.S. natural gas futures snap losing streak
Wall Street Journal
U.S. natural gas futures snapped a five-day losing streak, settling 5.2% higher at $3.525/mmBtu. The rebound was driven by updated weather models forecasting colder temperatures for late January. According to Gelber & Associates, while the forecast shift was modest, it was sufficient to raise heating degree day (HDD) expectations. Market momentum now depends on whether these cooler signals remain consistent in upcoming model runs. [MDN: Good! We added to the futures price yesterday. Now above $3.50. Keep it going! Weather is, of course, the main factor.]

Execs have different views on potential AI impact on breakevens
Rigzone
The Q4 Dallas Fed Energy Survey highlights a divide between large and small E&P firms regarding AI’s impact on well break-even prices. While 75% of large firms expect AI to reduce costs over the next five years, 70% of small firms anticipate no change. Overall, 62% of executives foresee a zero-dollar impact, despite some noting indirect productivity gains through office efficiency and faster task completion. Additionally, 81% of oilfield service providers have not expanded into general power supply, though 20% are currently active or considering entry, reflecting varying levels of technological adoption and diversification. [MDN: It’s an interesting take on what people think right now. Ask this same question a year from now and we predict the answers will be radically different, in the camp that AI will change everything. That’s our view. It’s coming (it’s here now, but just getting started). AI is going to transform our world the same way the internet did back in the 90s.]

Why the U.S. Senate must soon pass the SPEED Act and the MRCA of 2025
RealClearEnergy
As 2025 concludes, the U.S. House passed the SPEED Act and Mining Regulatory Clarity Act to modernize energy infrastructure and secure domestic mineral supplies. The SPEED Act targets bureaucratic “red tape” and lawsuits that delay projects for decades, aiming to lower electricity costs and meet surging demand from AI and data centers. Simultaneously, the MRCA streamlines domestic mining for critical minerals like rare earths, reducing a dangerous reliance on China, which controls 90% of global processing. These bipartisan efforts seek to bolster national security and accelerate the clean energy transition as this legislation moves to the Senate for 2026 consideration. [MDN: The Senate is the problem. It’s time to dump the filibuster rule (as surely the Dems will do so next time they are in power) and pass some of these critical bills NOW, so they make a difference before the 2028 election.]

CFACT to feds – time to define “water” sensibly
Committee For A Constructive Tomorrow (CFACT)
In a public comment to the EPA and Department of the Army, the Committee for a Constructive Tomorrow (CFACT) advocates for a narrower, more consistent definition of “Waters of the United States” (WOTUS). Following the Supreme Court’s Sackett v. EPA decision, CFACT emphasizes that jurisdictional wetlands must possess a continuous surface water connection to navigable waters. The organization criticizes the agencies’ “wet season” concept, arguing it lacks legal mooring and invites federal overreach on private property. By demanding linguistic clarity and strict adherence to judicial precedent, CFACT aims to provide regulatory certainty and protect rural landowners from unjustified federal jurisdiction. [MDN: As our friend Tom Shepstone writes on his always-excellent Energy Security and Freedom blog site, “It’s way past time to stop pretending a damp spot in a field or the woods is somehow a “navigable water” – a lie that enabled federal land grabs.”]

Hunt for scale to keep US shale deals ticking along
Argus Media
Following a slowdown in 2025, U.S. oil and gas deal-making in 2026 is shifting toward smaller-scale consolidations and strategic portfolio rebalancing. With M&A values normalizing after record-breaking years, small and medium-sized firms are increasingly pursuing “mergers of equals” to build scale and efficiency. Interest is pivoting from the congested Permian Basin toward assets with Gulf Coast and LNG exposure, fueled by surging demand from export markets and AI-driven data centers. Additionally, private capital is returning to the upstream sector as public companies divest non-core assets, creating a robust market focused on inventory depth and long-term viability. [MDN: Overall, the prediction is for smaller M&A deals this year, but not necessarily fewer deals.]

INTERNATIONAL

WTI drops as US markets Venezuela oil
Bloomberg
West Texas Intermediate crude dropped 2% to settle below $56 as the U.S. begins marketing 50 million barrels of sanctioned Venezuelan oil following the arrest of Nicolas Maduro. The Trump administration is selectively rolling back sanctions and coordinating with banks to facilitate exports, effectively positioning the U.S. as a major global crude trader. This potential supply surge adds bearish pressure to an oversupplied market, with analysts eyeing $50 if technical supports fail. While Energy Secretary Chris Wright emphasized using proceeds to stabilize Venezuela’s economy, the prospect of returning Venezuelan output creates significant downward momentum for global oil prices. [MDN: It doesn’t happen often, but we’re now in the $50s for both WTI and Brent. WTI for February dropped 2% to settle at $55.99 a barrel, while Brent for March settlement fell 1.2% to settle at $59.96.]

USA seizes two more sanctioned ships with Venezuela oil
Bloomberg
The Trump administration has intensified its energy quarantine of Venezuela by seizing two additional sanctioned oil tankers, the M/V Bella 1 and the M/T Sophia, following the capture of Nicolas Maduro. These operations, supported by the UK, demonstrate a global commitment to blocking illicit oil flows linked to Venezuela and Iran. Despite the Bella 1’s attempt to evade capture by reflagging as Russian, US forces intercepted the vessel near Iceland, risking further friction with Moscow. US officials emphasize that maintaining this blockade provides essential leverage to shape Venezuela’s future leadership and fund the nation’s economic reconstruction using controlled oil revenues. [MDN: What a breath of fresh air to have people with courage and conviction leading our country. We’ve been devoid of such leadership for so long, people don’t remember what it’s like. As a bonus, it’s driving the psychotic left even further insane.]

Equinor says AI saved it $130 million in 2025
Rigzone
Equinor ASA reported saving $130 million last year and $330 million since 2020 by integrating artificial intelligence into its operations. Utilizing predictive maintenance on over 700 machines saved $120 million while improving safety and reducing emissions. AI also optimized well planning, saving $12 million at the Johan Sverdrup field, and accelerated seismic data interpretation tenfold. Furthermore, the company’s subsea robotics set records for continuous underwater maintenance. With over 100 new AI use cases identified, Equinor continues to focus on a risk-based approach, prioritizing employee upskilling and the automation of “dangerous, dirty, and dull” tasks to drive efficiency. [MDN: As we say above in another AI-related story (about the Dallas Fed survey), AI is just getting started. Equinor is showing how it can materially lower costs. AI will transform the oil and gas industry, and every other industry on the planet. That’s our bold prediction.]

Five things to watch in Canada’s oil and gas industry in 2026
Canadian Energy Centre
In 2026, Canada’s oil and gas industry anticipates a turning point driven by five key developments. First, Alberta will apply for a new northwest coast oil pipeline targeting Asian markets. Second, the Indigenous-led Ksi Lisims LNG project expects a final investment decision. Third, Alberta’s data centre sector is poised for growth with new AI-ready projects. Fourth, a landmark Alberta-Canada energy agreement is set to unlock significant low-carbon investments and natural gas-fired power generation. Finally, Western Canada projects modest drilling increases, with over 5,700 wells expected. These milestones reflect a strategic push toward economic prosperity and global energy expansion. [MDN: Trump Derangement Syndrome (TDS) rampant in our Canadian cousins has done what years of begging and pleading by the O&G industry could not do. It has increased new O&G drilling. Gone are the doom-and-gloom predictions of climate catastrophe by Canada’s politicians. O&G is back in favor once again, thanks to TDS. See? Sometimes psychological conditions can be a good thing!]

EU accused of fueling Putin’s war by importing Russian LNG
London (UK) The Guardian
European governments are facing criticism for fueling Russia’s war in Ukraine, as new data reveals the EU imported €7.2bn of liquefied natural gas (LNG) from the Yamal peninsula in 2025. Despite a proposed 2027 ban, the EU’s share of Yamal’s exports rose to 76.1%, relying on specialized tankers from UK and Greek firms. Ports in France and Belgium provide vital infrastructure, allowing for faster transport cycles compared to Asian routes. Activists argue that this “Yamal loophole” provides essential oxygen to the Kremlin’s finances, urging leaders to stop providing the maritime services and port access that sustain Russia’s energy profits. [MDN: Despite all of their bluster and pontification, the Euro weenies continue to fund the Russian war against Ukraine. Europe must be exposed for the frauds they are.]

LNG market moves from famine to feast on wave of new supply
Bloomberg
A record-breaking surge in liquefied natural gas supply is creating a long-term buyers’ market, marking a major shift from the post-Ukraine invasion shortage. Global output rose 6% in 2025, with massive projects in Texas and Qatar poised to add capacity equivalent to 11% of global exports. This supply glut is driving spot prices to year-long lows, allowing developing nations like Vietnam and India to secure fuel to meet rising electricity demand and displace coal. As supply growth outpaces demand through the decade’s end, energy majors are increasingly targeting Southeast Asia to find new buyers for this surplus fuel. [MDN: Yeah, but, Europe is still buying all sorts of LNG from Russia! If they would stop doing that, world markets would balance once again.]

Global warming sustained a naval power that dwarfed Vikings
CO2 Coalition
Vijay Jayaraj highlights the Chola Empire’s historical dominance, noting its sophisticated naval power and architectural feats surpassed those of the Vikings. This prosperity was fundamentally fueled by the Medieval Warm Period, which enhanced monsoon rains and agricultural yields, creating the surplus wealth necessary for imperial expansion and trade. Jayaraj argues that this historical correlation between warmth and societal flourishing contradicts modern climate “doom” narratives. He suggests that current global warming, much like the Chola era (between A.D. 985 and 1044), boosts agricultural productivity and Earth’s “greening,” advocating for a focus on human prosperity rather than the fear promoted by modern environmental movements. [MDN: In other words, a little global warming, IF it’s caused by humans, ain’t all that bad. There are times in history when the earth warmed like it is now and it didn’t cause the end of everything, as the nutty left says will happen.]