Can Amazon’s $20B Investment Survive Pennsylvania’s Red Tape?
We’ve reported, with some excitement, the recent news about a host of new AI data centers coming to the Keystone State (Pennsylvania), including several large projects in southwestern PA and Amazon’s big announcement last week about spending $20 billion on at least three data centers in the eastern part of the state (see Amazon Investing $20 Billion to Build AI Data Centers in Eastern PA). Most of these facilities will use electricity generated by Marcellus gas-fired power plants. After years of no new gas-fired power plant announcements due to concerns over the Regional Greenhouse Gas Initiative (RGGI) carbon tax being imposed by Democrat governors, suddenly, power plant (and data center) builders either believe RGGI won’t happen, or they’re willing to pay obscenely high taxes. Whatever the case, it’s good news for PA. However, there’s something else besides a carbon tax that may block some of these recently announced projects from ever getting built: PA’s massive red tape. Read More “Can Amazon’s $20B Investment Survive Pennsylvania’s Red Tape?”
Pennsylvania’s U.S. Senators, Dave McCormick, R-Pittsburgh, and John Fetterman, D-Braddock, have introduced Senate Bill 2044, which would move the federal Department of Energy’s Office of Fossil Energy and Carbon Management (FECM) to Pittsburgh. It’s not an insignificant move. The DOE FECM employs approximately 750 federal employees, including scientists, engineers, technicians, and administrative staff. The federal government already employs around 20,000 people in the Pittsburgh region. This would add to that number. 
This is funny, and sad. Yesterday, we brought you the news that Amazon has pledged to spend at least $20 billion to build multiple data centers in Pennsylvania (see 
Yesterday, Pennsylvania Governor Josh Shapiro took credit for brokering a deal that will see Amazon build at least three huge data centers (which Democrats typically dislike) in eastern Pennsylvania, investing $20 billion to do so. It is a huge coup 
According to the left-wing-funded (very partisan) Spotlight PA publication, a group of bills aimed at boosting electricity production and regulating clean energy has “rare, bipartisan support” in Pennsylvania’s divided legislature. We doubt that. More like a few RINOs are joining Democrats to support a few bills. Regardless of whether there is consensus between the two parties on these energy bills, they aren’t going anywhere in the PA Senate unless and until the state Supreme Court (loaded with Democrats) renders a decision on the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme. So says the PA Senate Majority Leader, Joe Pittman (Republican from Indiana). 
Last week, for the sixth week in a row, the Baker Hughes U.S. rig count dropped, down another four rigs to its lowest level since November 2021. It was the first time since September 2023 that the count has fallen for six (or more) weeks in a row. Free fallin’. However, the Marcellus/Utica count remained the same, at a combined 36 active rigs. The Pennsylvania Marcellus operated 18 rigs. The Ohio Utica operated 11 rigs. And West Virginia operated seven rigs. 
Two days ago, the Pennsylvania Independent Fiscal Office (IFO) released its latest quarterly Natural Gas Production Report for January through March 2025 (full copy below). There were 93 new horizontal wells spud (drilled) in 1Q25, a decrease of 7 wells (-7%) compared to 1Q24. However, 1Q’s spud number increased by 9 (11%) from the 84 drilled in the prior quarter, 4Q24. Natural gas production volume was 1,941 billion cubic feet (Bcf) in 1Q25, up 56 Bcf (3%) from 1,885 Bcf produced in 1Q24, and up 72 Bcf (4%) from the 1,869 Bcf produced in 4Q24. The big news revolved around price. The average Pennsylvania spot hub price was $3.69, an increase of $2.00 (117.5%) from the prior year. 
During a webinar in April, the Pennsylvania Department of Environmental Protection (DEP) announced it would use a new state General Air Quality Permit to implement Biden-era federal oil and gas facility methane reduction requirements (see 
On June 2, the Pennsylvania Department of Environmental Protection’s (DEP) latest Environmental Justice newsletter announced that the PennEnviroScreen tool is now “fully integrated within the DEP permitting and programmatic review processes.” The tool draws maps to identify areas of “greater environmental justice (EJ) exposures” and potential effects by analyzing “environmental, health, and socioeconomic burdens across the Commonwealth.” It’s like a video game that shows users pretend areas where there are more minorities and poor people on the theory that they’re too stupid or poor to hire lawyers to resist new infrastructure, like gas wells, compressor stations, or pipelines. 
Corporate welfare—the transfer (theft) of money from taxpayers to uber-wealthy corporations, like Kraft Heinz, is particularly loathsome and disgusting. However, it’s widespread, unfortunately. In an effort to undermine fossil energy, the Biden administration shoveled money out the door to corporate cronies so fast nobody could keep track of it all. Biden’s “free money” included a $170 million grant to Kraft Heinz, which would have helped the food manufacturer install heat pumps, solar, biogas, and other loser “renewable” energy solutions at 10 of its facilities in New York, Virginia, Minnesota, Iowa, Indiana, Ohio, Michigan, Missouri, and Illinois. Kraft Heinz received $5.9 million of the promised funding in December. It won’t see another dime. 
Pennsylvania Governor Josh Shapiro is a typical liberal Democrat politician. He pretends to be moderate and a supporter of the Marcellus industry in the Keystone State. He is neither. Shapiro claims his proposed energy programs will cut costs for Pennsylvanians. The reverse is true. But we’re not just making blanket, unprovable assertions or opinions about Shapiro’s energy plans. A new study from the Commonwealth Foundation estimates that Shapiro’s energy policies, 
Electricity bills across Pennsylvania (and elsewhere in the PJM grid) are due to increase on June 1, when utilities reset a portion of their charges to reflect the current cost of energy. The increases reflect the rising cost of power on the regional transmission grid. Electric grids are complex to understand, but at their core, the grid manager (in this case, PJM) coordinates the flow of electricity within the grid and operates a wholesale power market where utilities purchase the electricity they deliver to their customers. Wholesale electric prices have spiked, and now utilities need to pass along those costs to ratepayers (don’t be mad at the local utility). The question is, why have wholesale electric prices spiked? Is someone (is PJM) at fault?