EIA Sept. STEO Cuts NatGas Spot Price Another $0.10 to $3.50 in ’25
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 guess about where energy prices and production will head in the next 12 months. In this latest assessment, EIA dropped its estimates for the Henry Hub spot price for 2025, again. The agency expects the HH spot price to average $3.50 per million British thermal units (MMBtu) in 2025, $0.10 lower than last month’s forecast (and $0.20 below the prediction from two months ago). EIA kept its 2026 forecast the same, predicting the gas price will average $4.30/MMBtu. Read More “EIA Sept. STEO Cuts NatGas Spot Price Another $0.10 to $3.50 in ’25”
Yesterday, the U.S. Environmental Protection Agency (EPA) announced new guidance (a relaxation of regulations) to streamline its New Source Review (NSR) permitting process. The relaxed regs are designed to accelerate the construction of essential power generation and manufacturing facilities. EPA’s action provides flexibility to begin certain building activities that are NOT related to air emissions, such as installing cement pads, before obtaining a Clean Air Act (CAA) construction permit. More common-sense solutions from the Trump administration to address a completely screwed up regulatory state. 
The International Gas Union (IGU), Snam, and Rystad Energy partnered (as they have in the past) to produce and release the annual Global Gas Report 2025 (full copy below). Natural gas demand rose globally by 78 billion cubic meters (1.9%) in 2024, reaching 4,122 billion cubic meters (bcm), and is expected to continue growing in 2025 by 71 bcm (1.7%), according to the report. Observed trends suggest global energy demand is expected to follow an upward trajectory over the next decade, especially leading up to 2030. Power consumption is expected to surge in China and India, thus driving an increase in natural gas demand, positioning Asia as the key driver of global energy demand, supported by growth in North America. 
MARCELLUS/UTICA REGION: Babcock & Wilcox, Denham partner to convert coal plants to gas for data centers; U.S. Interior Sec. Doug Burgum to deliver SHALE INSIGHT 2025 closing keynote; OTHER U.S. REGIONS: Proposal for 100MW natgas-powered data center campus rejected in N. Carolina; NATIONAL: DOE seeks proposals for AI data centers, energy projects; USA oil output at all time high but growth slowing; Climate zealots must be stopped from abusing courts for political goals; US LNG builders go modular to battle rising costs; Senate to confirm trove of energy, environment nominees; INTERNATIONAL: Oil rises on Israeli strikes in Qatar; TotalEnergies CEO says US LNG drive may cause global oversupply; Exxon expects EU to sign long-term US gas deals. 
Last November, Williams officially filed with the Federal Energy Regulatory Commission (FERC) to build an expansion of its mighty Transco pipeline system in the southeastern U.S., a project called the Southeast Supply Enhancement Project (see 
EQT Corporation, at one time the largest natural gas producer in the U.S. (now #2 behind Expand Energy), keeps the LNG hits rolling in. Two weeks ago, the company announced that it had signed a binding contract to buy 2 million tonnes per annum (MTPA) of LNG from Phase 2 of Sempra’s Port Arthur LNG project (see 
We have a second “producer does a deal to buy (not sell) LNG” story today. ConocoPhillips, a huge oil-focused driller, announced a deal to buy 1.0 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from the Rio Grande LNG project. How does this news tie into the Marcellus/Utica? It doesn’t do so directly, but it does so indirectly. First, this deal shows that EQT is not the only driller to move into the role of LNG trader. Others are now doing it, too. A trend? Second, EQT signed its own deal with Rio Grande for 1.0 MTPA of LNG just last week (see 
Diversified Energy, which owns significant assets in the Marcellus/Utica region (and other regions, too), is…diversified! The company owns approximately 8 million acres of leases with close to 70,000 oil and gas wells, mostly conventional wells (by number of wells). However, the company now produces over 40% of its production from shale wells. The company’s business model is to buy already-drilled, lower-producing wells on the cheap and find ways to make them more productive. They do a great job at it. Diversified also owns midstream (pipeline) assets in addition to a well-plugging subsidiary called Next LVL. Earlier this morning, the company announced a deal to acquire Canvas Energy (the entire company) for $550 million. 
A growing coalition representing America’s energy and manufacturing sectors is urging Congress to act swiftly to (finally) modernize the permitting system and unlock new energy investment. With Congress’s return to the swamp, a diverse group of business and energy organizations sent letters to House and Senate leaders calling for bipartisan permitting reform. In a letter to Congress signed by the Independent Petroleum Association of America (IPAA), the U.S. Chamber of Commerce, National Association of Manufacturers (NAM), Data Center Coalition, American Council on Renewable Energy, National Ocean Industries Association, and more, the business and energy groups wrote: “The time has come to modernize our nation’s permitting systems so that our communities can build the infrastructure necessary to grow our economy, create good-paying jobs, and meet the challenges of today and tomorrow.” It seems the message was received. Congress has scheduled hearings on permitting reform beginning today. 
Last week, the rig count bleeding stopped, at least temporarily, with the addition of one rig to the Baker Hughes U.S. rig count. We ended the week with 537 active rigs. The count has been down 16 of the last 19 weeks, beginning on May 2. Fortunately, the Marcellus/Utica count has remained constant for the past seven weeks, at a combined 36 active rigs. PA operated 18 active rigs. OH ran 11 rigs. And WV operated 7 rigs. Twenty-four rigs targeted the Marcellus and 12 rigs targeted the Utica last week. Baker Hughes said oil rigs rose by two to 414 last week, while gas rigs fell by one to 118. 
Two weeks ago, Marietta, OH, officials, including the city’s Republican mayor, law director, water superintendent, and a majority of city council members, asked the Ohio Department of Natural Resources (ODNR) Oil and Gas Chief Eric Vendel to deny a permit application from DeepRock Disposal Solutions for the Stephan #1 injection well, which would be the company’s fifth injection well in the area (see 