New York Drives Businesses Away With New GHG Reporting Law
It’s always one step forward and two steps back here in the “Empire” State of New York. Recent actions by New York Governor Kathy Hochul regarding the energy sector have been encouraging. She horse-traded with President Trump to allow two natural gas pipelines to get built in the state (see White House Claims NY Gov. “Caved” on Pipelines, Hochul Says No). She reversed her position on banning all new construction in the state from connecting to natural gas (see Left Furious with NY Gov Hochul for Blocking Gas Ban Hookup Law). Hochul even vetoed a bill from her own party that would have banned the use of brine on public roads for de-icing and dust suppression (see NY Gov. “Gassy Kathy” Hochul Vetoes Bill Banning Brine on Roads). Yet Hochul is pushing forward with a plan that forces natural gas-fired power plants to begin reporting annual “greenhouse gas” (CO2) emissions as a prelude to taxing them out of existence. Read More “New York Drives Businesses Away With New GHG Reporting Law”
Democrats in Virginia are experiencing political ecstasy at the prospect of reversing four years of common-sense energy policies under outgoing Governor Glenn Youngkin. Gov. Youngkin removed the state from the odious Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme. Incoming Gov. Abigail Spanberger has pledged to re-enroll the state in the program. Youngkin vetoed bills that would have favored unreliable renewable energy. Now, the Dems will not only have Spanberger as Governor, but hardened leftist Ghazala Hashmi as Lt. Governor, and a strong majority in both chambers of the legislature. They are already planning to reintroduce bills favoring renewables and blocking new data centers. It’s a crying shame what Virginia has done in electing these radicals to lead it. 
NATIONAL: U.S. natural gas picks up ahead of storage data; Kinder Morgan expects to ride on LNG, power demand growth; Democrat lawmakers renew push to regulate natgas pipeline emissions; Exxon’s low carbon cuts mesh with Trump’s energy priorities; INTERNATIONAL: Crude rises after US seizes Venezuelan tanker; COP30 – 50,000 participants for what?; Hydrogen dreams meet reality as oil and gas groups abandon projects; Former UK Prime Minister says Europe ‘insanely jealous’ of US economy. 
The Pennsylvania Environmental Quality Board (EQB) held a meeting yesterday to consider whether or not to accept a petition by radical green groups, including the Clean Air Council and Environmental Integrity Project, to “study” the issue of increasing setbacks for shale drilling so far that it would ban ALL new Marcellus/Utica drilling in the Keystone State (no exaggeration). The EQB tabled a decision on whether to accept the petition back in April (see 
Here we go again. Pennsylvania Democrat State Reps. Chris Pielli, (Chester), and Tarik Khan, (Philadelphia), have introduced a bill that would establish a severance tax on natural gas production. Specifically, the legislation introduces a per-volume severance tax on natural gas operations. The bill would place the new severance tax on top of the existing impact fee (i.e., tax), creating a double tax on the Marcellus industry. Adding a severance tax to the existing impact fee would instantly make PA’s tax on natural gas extraction the highest in the nation. The purpose is not revenue generation but the death of the Marcellus production in the Keystone State. Do the Dems never tire of attacking the Marcellus industry? 
The U.S. Energy Information Administration (EIA) issued its latest monthly Short-Term Energy Outlook (STEO) yesterday. The STEO is the agency’s monthly best estimate of where energy prices and production will head over the next 12 months. In this latest assessment, EIA forecasts the cold snap hitting the United States this month will drive the Henry Hub natural gas spot price to average almost $4.30 per million British thermal units (MMBtu) this winter, which is 40 cents/MMBtu higher than its November forecast of $3.90. The price increase is driven by increased natural gas consumption for space heating. 
Pennsylvania has a big problem. The state is retiring older coal- and gas-fired power plants faster than it can add new plants. Plus, the state needs to *grow* its electric generation capacity to meet new demand from AI data centers. PA State Senator Gene Yaw has a solution: modify the existing 1971 Economic Development for a Growing Economy (EDGE) tax credit program by adding a provision granting a tax credit for any $400+ million investment in “baseload power generation” (i.e., gas-fired power generation). Yaw wants to make it a no-brainer for power plant builders to make the Keystone State their destination for new projects. 
We’ll open this post with this statement: There are no active rumors (that we are aware of) that Permian/Anadarko/Marcellus driller Coterra Energy is considering a merger with Permian/Anadarko/Monteny driller Ovintiv (formerly Encana). We did spot a post by Rystad Energy analysts who theorize that both companies (peers) would make a great combined company. The comments are part of a post titled “US shale braces for next consolidation wave as smaller players seek scale.” Rystad’s theory is that we will soon see smaller independents begin to merge to defend against the recent merger mania by larger companies, including ExxonMobil, Diamondback, Occidental, and ConocoPhillips. 
A new RBN article takes a stab at distinguishing between the hype of future data center power demand and the reality of current grid consumption. Despite projections of massive energy usage, verifying actual draw is difficult due to utility confidentiality and behind-the-meter generation. RBN’s analysis reveals that today’s largest consumers are long-established campuses rather than new builds; specifically, Google’s Council Bluffs and Microsoft’s Quincy facilities top the list with estimated loads of 500–600 MW. The article concludes that because substantial capacity takes over a decade to scale, the market should remain skeptical of new facilities claiming immediate, massive power consumption. 
The rapid expansion of data centers, driven by AI and cloud computing, is creating a surge in energy demand that exceeds renewable capabilities, forcing a shift toward natural gas. Good news for the Marcellus/Utica. However, building new pipelines to handle the extra gas needed is not an overnight process. Industry experts at the recent LDC Gas Forums’ Nat Gas to Power event proposed an ingenious solution that uses existing pipelines to move more gas to new data center customers. 
Pennsylvania assesses an impact fee (PA’s version of a severance tax) on shale drillers, raising revenues that are paid to local municipalities (60% collected) and the black hole of Harrisburg politicians (40%). Yesterday, the PA Independent Fiscal Office (IFO) issued an estimate of how much the impact fee will raise this year, with the funds distributed in April of next year. The IFO says it expects, based on the price of natural gas and the number of new and existing wells, that PA will generate $239.9 million from the impact fee in 2025, a huge $75.3 million (46%) increase from 2024. The average fee per well generated will be $19,056 in 2025, up from $13,560 (41%) in 2024. 
The Pennsylvania Department of Environmental Protection (DEP) published proposed revisions to its Chapter 102 Erosion and Sediment Control permit. The DEP is now accepting comments on the changes until January 20. The primary goal of the revision is “regulatory alignment.” Since the original policy was written in 2012, Pennsylvania passed the Chapter 78a (Unconventional) regulations (in 2016) and updated the ESCGP-4 permit (in 2024). The new draft updates the policy to match these legally binding rules rather than creating entirely new standards. The most significant change coming is an increase in setbacks to”support facilities” from 900 feet to 1,320 feet.