Trump Using Ethane Exports to China as Bargaining Chip in Trade War
Bloomberg reports that Donald Trump is using our dominance of a niche petroleum gas, ethane, as a bargaining chip in his trade war with China. Last week MDN brought you the news that the Trump U.S. Bureau of Industry and Security (BIS) is blocking at least three (possibly more) cargoes of ethane by rejecting permits to export to Enterprise Products Partners (see U.S. Denies Permit for Enterprise to Export Ethane Cargoes to China). Ethane is a raw feedstock used to create plastics. Denying China access to our ethane will hurt the Chinese economy. However, it appears that this is just a bargaining position and is unlikely to remain in place. Read More “Trump Using Ethane Exports to China as Bargaining Chip in Trade War”
OTHER U.S. REGIONS: Gulf of America oil and natural gas production expected to remain stable through 2026; Southern California air regulators weigh a plan to phase out gas furnaces, water heaters; INTERNATIONAL: Morgan Stanley says OPEC+ quota hikes yet to deliver oil surge; Oil rises as solid USA jobs data pushes algos to drop short bets; Ukraine plots fracking revolution. 
For the week of May 26 – Jun 1, the number of permits issued to drill new wells in the Marcellus/Utica increased significantly from the previous week. There were 35 new permits issued across the three M-U states last week, up 11 from 24 two weeks ago. A whopping 27 new permits were issued in the Keystone State (PA) after issuing only four permits two weeks ago. EQT and its drilling subsidiary Rice Drilling received 10 permits, all of them in Greene County, spread across two pads. Spain-based Repsol received the second most permits, five, for a single pad in Tioga County. 
We have some important new information regarding the proposed Penn LNG export facility in the Philadelphia area. 
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. 
Two conventional oil producers in Southeast Ohio say dozens of their wells have been flooded with industrial waste (brine) from the fracking industry. They claim that nearby injection wells that handle frack waste/brine are leaking. State regulators agree that injection wells, at least at some locations, are leaking. Not only have these leaks (if true) affected oil wells, but there’s a concern they may be contaminating area water wells. 
The Republicans in Congress have not wasted any time in addressing the ongoing tragedy of states (and municipalities) banning fracking or the right to choose which energy source (like natural gas) to use. We happened to spot details about two new bills just introduced in Congress, one by New York Rep. Claudia Tenney, which targets states like her own that ban fracking by denying the state federal funding as long as the ban remains in place. The other bill was introduced by West Virginia Senator Jim Justice (and Babydog!) along with Nick Langworthy (from NY) in the House to prohibit states or local governments from banning an energy service’s connection, reconnection, modification, installation, or expansion based on the type or source of energy to be delivered. Essentially, you can’t ban the use of natural gas either statewide or locally. 
The Southwest Appalachia drilling team for Expand Energy, the newly combined company created when Chesapeake Energy merged with Southwestern Energy, claims it has drilled the U.S.’s longest on-shore well and longest on-shore lateral to date at more than five miles. The BW Edge MSH 210H was recently drilled in Marshall County, West Virginia. We say the team “claims” to have drilled the longest lateral because in March, Hart Energy reported a similar claim by Expand to have drilled an even longer lateral in Ohio County, WV (see 
The propagandists at the partisan Inside Climate News are doing their best to plant the false notion that drill cuttings and frack wastewater coming from shale wells are “radioactive.” Their latest effort in this regard is to defeat the reopening of a landfill in Mercer County, PA. The Grove City landfill would accept drill cuttings (among other landfillable waste). The antis, who oppose all fossil energy based on mythical global warming concerns, label drill cuttings as “radioactive waste.” It’s nonsense. Drill cuttings are leftover rock and dirt from the ground. 
Three years ago, in May 2022, MDN brought you the surprising news that ethane, propane, and butane (NGLs) were being exported from a facility in Gibbstown, NJ, located along the Delaware River, at a former DuPont dynamite factory site (see 
MiQ is one of two major gas certification authorities that certify low methane emissions and is used by nearly every Marcellus/Utica driller. In October 2023, MDN brought you information about the two major gas certification authorities, MiQ and Project Canary, and the effort by drillers to get their gas officially certified as responsibly sourced (see 
BlackRock, the world’s largest investment firm with some $9 trillion of assets under management, has managed to get itself removed from the poopy list in Texas by ending its participation in a number of so-called ESG (environment, social, governance) groups and by groveling before Texas officials. The Texas Permanent School Fund (PSF) pulled $8.5 billion of its investments away from BlackRock in March 2024 (just over a year ago) after the state determined that BlackRock was engaged in a boycott of energy companies by pressuring companies to avoid the fossil fuel sector by using ESG litmus tests (see 
Two days ago, RBN Energy reported that ethane and butane exports for Enterprise Products Partners and possibly other NGL exporters were in doubt following a notice received by Enterprise from the U.S. Bureau of Industry and Security (BIS) flagging such exports to China as a security risk (see