MDN’s Energy Stories of Interest: Tue, Jan 13, 2026 [FREE ACCESS]

NATIONAL: U.S. natural gas jumps on colder weather outlook; USA Compression completes acquisition of J-W Power; WoodMac sees USA tight oil output shrinking in 2026; Climate policy 2025 was much good news; Victory as Trump withdraws America from UN climate framework & IPCC; Is natural gas a trade or a trap after hitting new lows?; Energy wisdom is lacking among public officials; INTERNATIONAL: Oil jumps as Iran tensions escalate; Trump says he’s inclined to exclude Exxon from Venezuela; European gas prices climb on heating demand, Iran risks.

NATIONAL

U.S. natural gas jumps on colder weather outlook
Wall Street Journal
U.S. natural gas futures surged 7.6% to settle at $3.409/mmBtu as colder weekend forecasts signaled a spike in residential and commercial heating demand alongside sustained LNG feedgas levels. According to Gelber & Associates, these factors are the primary drivers of the current rally, though market stability remains contingent on whether production can stay steady and LNG exports can maintain their current volumes throughout the peak of the cold snap. [MDN: Moving back to the $3.50 line. Whew. We were worried we might slip below the $3 mark again.]

USA Compression completes acquisition of J-W Power
USA Compression Partners, LP
USA Compression Partners (USAC) has finalized its $860 million acquisition of J-W Power Company, financed through a balanced split of cash and approximately 18.2 million common units. This deal adds over 0.8 million active horsepower to USAC’s portfolio, resulting in a total fleet of 4.4 million horsepower across major U.S. energy hubs including the Northeast, Mid-Continent, Rockies, Gulf Coast, and Permian Basin. By acquiring these strategic assets and a high-quality customer base, USAC strengthens its mid-to-large horsepower market position. [MDN: No doubt some of the assets acquired are in the M-U region. USA Compression Partners is one of the nation’s largest independent providers of natural gas compression services. The company focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation.]

WoodMac sees USA tight oil output shrinking in 2026
Rigzone
Wood Mackenzie predicts U.S. tight oil production will shrink by 200,000 barrels per day in 2026, a trend supported by EIA forecasts. While Guyana’s output fills this immediate gap, the U.S. is poised for a shale gas “renaissance” driven by rising LNG demand and data center power needs. Consequently, gas deal spending is expected to overtake oil in 2026 as major oil consolidations conclude. This shift reflects a strategic pivot toward gas basins and Henry Hub price hedging, as the industry adapts to lower oil prices and evolving global energy requirements. [MDN: WoodMac used to be a decent consultancy, but no more (see WoodMac Pimps Itself Out for Democrats in New “Report” re Election). Still, many people follow their pronouncements. We seriously doubt oil production will decrease in 2026. Others like WoodMac believe it will based on oil prices in the $60s or even $50s. We’ll see who’s right.]

Climate policy 2025 was much good news
MasterResource
Robert Bradley Jr.’s article characterizes the Trump Administration’s 2025 energy policies as a positive shift toward “energy realism.” By revoking the EPA’s climate authority, withdrawing from the Paris Agreement, and removing “climate change” terminology from federal websites, the administration prioritized affordability over “climate alarmism.” Additional actions included defunding climate research and blocking international emissions agreements to protect economic interests. Bradley argues that rejecting Net Zero goals supports industrial growth, particularly for AI data centers. Ultimately, the piece frames the reversal of environmental regulations as “good news” that favors adaptation and fossil fuel expansion over global mitigation efforts. [MDN: We think it’s not overly dramatic to say that Trump saved this country from itself with respect to climate hysteria. As Bradley points out in the article, 2025 was a very good year indeed for those who don’t buy into the hysterical ramblings of the environmental left. Just ignore them.]

Victory as Trump withdraws America from UN climate framework & IPCC
Committee For A Constructive Tomorrow (CFACT)
Craig Rucker celebrates President Trump’s January 2026 executive order withdrawing the United States from the UN Framework Convention on Climate Change (UNFCCC) and the IPCC. Rucker frames this “political climate earthquake” as a victory over wasteful international bureaucracies that allegedly used global warming to expand taxation and government control. While critics like Al Gore and Simon Stiell condemn the move as a betrayal of climate science and diplomacy, Rucker argues it protects American sovereignty from radical influence. Crucially, the author notes that re-entry would require a difficult two-thirds Senate majority, making this a significant and potentially lasting policy shift. [MDN: The best possible outcome would be for Trump to throw the UN out of this country once and for all. The UN is a stinking pile of horse manure, corrupt to its core.]

Is natural gas a trade or a trap after hitting new lows?
Zacks/Yahoo! Finance
Natural gas markets recently faced significant volatility as prices tumbled 12% to three-month lows near $3.17 per MMBtu. This decline was largely driven by mild weather forecasts, which outweighed substantial storage withdrawals and left inventories slightly above historical averages. Although high production currently maintains downward pressure, the market remains sensitive to potential late-January cold snaps and freeze-related outages. Furthermore, declining rig counts hint at tightening supply in the long term, despite immediate oversupply concerns. While short-term uncertainty persists, these factors suggest the recent selloff might be overextended, offering a potential recovery for patient investors focused on long-term infrastructure and demand growth. [MDN: Insights for investors from Zacks. Keep an eye on the price of natgas to pop higher, that’s the gist.]

Energy wisdom is lacking among public officials
America Out Loud News
Public officials often lack “Energy Wisdom,” failing to distinguish between electricity generation and the essential products and transportation fuels derived from fossil fuels. While wind and solar generate intermittent electricity, they cannot manufacture the materials critical for modern healthcare, agriculture, and national defense. Since even renewable energy components require fossil fuels for production, eliminating oil would collapse global supply chains. True Energy Wisdom requires leaders to move beyond slogans, recognizing that energy policy involves complex cultural and geopolitical trade-offs. Candidates must articulate clear strategies for maintaining reliable electricity and resource management to sustain the materialistic demands of eight billion people. [MDN: Another excellent post by Ron Stein outlining the rank ignorance on the part of politicians (and environmentalists) on the true nature of energy. Wise up!]

INTERNATIONAL

Oil jumps as Iran tensions escalate
Bloomberg
Oil prices have climbed to their highest levels since December, with WTI settling above $59 as intensifying unrest in Iran threatens to disrupt global supplies. Market volatility is surging amid reports that President Trump is considering military strikes against Tehran, potentially impacting the country’s 3.3 million barrels-per-day output. While Iranian officials claim stability, traders are weighing the risks of regime change against prolonged conflict. These geopolitical tensions, alongside Kazakh pipeline halts and administrative shifts regarding Venezuelan exports, have effectively tempered concerns over a global surplus, driving a significant bullish shift in crude oil futures and options markets. [MDN: One thing is certain: The world is always changing, lurching from crisis to crisis. Always has been and always will be. WTI for February delivery rose 0.6% to settle at $59.50 a barrel, while Brent for March settlement gained 0.8% to settle at $63.87 a barrel. Lovin’ life back in the $60s.]

Trump says he’s inclined to exclude Exxon from Venezuela
Bloomberg
President Trump is considering excluding Exxon Mobil from his initiative to rebuild Venezuela’s oil sector following the capture of Nicolás Maduro. This decision stems from a meeting where Exxon CEO Darren Woods labeled the country “uninvestable” due to previous asset nationalizations. In contrast, competitors like Chevron and Repsol expressed optimism about increasing production. While the reconstruction requires an estimated $100 billion and a decade of investment, Trump assured executives of their safety despite ongoing concerns over corruption and instability. Ultimately, the president’s displeasure with Exxon’s cautious stance highlights the friction in mobilizing US majors for this ambitious recovery project. [MDN: We suppose we would be cautious about investing in Venezuela, too, after they stole our oil companies’ wealth by nationalizing assets in 1976. On the other hand, Woods should have kept his trap shut at that meeting. If he doesn’t want to invest, fine, don’t invest. But don’t talk down the prospect of building back Venezuela, the country with THE most oil reserves in the world. Don’t be a Dick, Darren.]

European gas prices climb on heating demand, Iran risks
Wall Street Journal
European natural gas prices surged as the benchmark TTF contract climbed 4.1% to €31.50 per megawatt hour, fueled by a combination of colder regional temperatures and escalating unrest in Iran. According to ING analysts, this geopolitical instability poses significant risks to Persian Gulf LNG shipments and Iranian gas exports to Turkey, while a recent cold snap has already accelerated storage withdrawals, leaving European reserves at just 54%—well below the 70% five-year seasonal average. [MDN: The Cheshire Cat smile is slipping off the Euro weenies as natgas prices rise. They relied on warm winters (from global warming) and political stability. Neither is happening. Now they pay.]