US AI Task Force co-chair requests FERC support for co-located Data Centers - Letter
According to a Dec. 5 letter, a co-chair of Congressional Artificial Intelligence Task Force in the U.S. urged federal energy regulators to support the creation of data centers that are directly connected to power stations, citing national safety and competition to dominate global AI. U.S. Congressman Jay Obernolte stated that the Federal Energy Regulatory Commission (FERC) should act quickly in crafting rules to encourage the expansion and use of AI, which requires large amounts of energy. This includes clearing the way for co-located AI Data Centers.
EIA reports that US oil production fell by the most in September since January.
The U.S. Energy Information Administration's (EIA) data showed that the crude oil production in the United States fell by 157,000 barrels a day (bpd), month-over-month, to 13,20 million bpd during September. This was the biggest decline since January. As Hurricane Francine, and Hurricane Helene made landfall in the Gulf of Mexico in September, many oil and gas facilities were forced to close for extended periods of time. EIA data released on Friday showed that output from the U.S. Gulf of Mexico offshore fell by 12% in September, to 1,58 million bpd. This is the lowest level in three years.
Blackstone buys pipeline stakes in EQT from EQT at $3.5 billion
Blackstone, an alternative asset manager, said Monday it would purchase minority stakes in certain of EQT's pipelines through a joint-venture for $3.5 billion. The sale will help EQT reduce its debt after it purchased Equitrans Midstream for $14 billion in July. In premarket trading, shares of EQT rose by 3.9%. Blackstone and EQT will form a joint venture worth about $8.8 Billion. This joint venture would include EQT’s ownership interests in the Mountain Valley pipeline and the Hammerhead pipe. The company would be able to leave 2024 with a net debt of about $9 billion.
Trump Energy Pick writes ESG report praising oil and gas, while downplaying climate worries
According to a report that he wrote as the CEO of oilfield service company Liberty Energy, Donald Trump's nominee to head the Energy Department believes fossil fuels will end world poverty. He says this is a bigger problem than the "distant threat" of climate change. Chris Wright stated in a February report entitled "Bettering Human Lives" that the energy transformation has not yet begun, and that while climate change is a problem, it's not the biggest threat to humanity. Wright, who founded a foundation to expand propane cook stoves for developing countries, believes that poverty is a greater threat and can be reduced with hydrocarbons.
US Awards up to $2.2 Billion to Speed Clean-hydrogen Development
The U.S. Department of Energy announced on Wednesday that it had awarded up to $2 billion to centers in the Gulf Coast and the Midwest for the development of hydrogen, a new source of energy which is costly to produce with renewable power. Hydrogen supporters, such as the administration of Joe Biden believe that low carbon hydrogen can combat climate change by fueling industries like aluminum, cement and steel, along with long-haul transport. Most hydrogen produced today is made from fossil fuels, which emit unabated gases. This produces hydrogen at a fraction the price of clean hydrogen.
Grid operator PJM faces a new complaint regarding power supply
Consumer advocacy group filed a complaint with PJM Interconnection. They claim that the U.S.'s largest grid operator unfairly awards record-high payments to power plants, driving up electricity prices for households and businesses. The Federal Energy Regulatory Commission received a complaint on Monday, the second in recent times regarding PJM Interconnection’s capacity market auction for 2025-2026. This auction set prices that were over 800% higher than those of the previous year. PJM leaders stated that the record-high prices were largely due to the soaring demand for power and the shrinking supply of fossil-fired generators as they retire.
US regulators reject amended agreement on interconnect for Amazon Data Center
A filing on Friday showed that U.S. Energy regulators had rejected an amended agreement to interconnect an Amazon datacenter directly with a nuclear plant in Pennsylvania. Federal Energy Regulatory Commission members said that the agreement to increase capacity of the Talen Energy Susquehanna nuclear generating plant's data center could affect grid reliability and raise electricity bills for consumers. As Big Tech race to expand its data centers to support technologies such as generative artificial Intelligence, the option of locating these centers on power plant sites is becoming more attractive.
U.S. regulators consider the issue of data centers in power plants
The Federal Energy Regulatory Commission held a technical meeting on Friday to discuss the reliability and cost concerns associated with the growing trend of building data centers that are energy-intensive on the site of U.S. nuclear power plants. The technology industry is racing to build data centers to support technologies such as generative artificial intelligence. However, accessing the huge amounts of electricity required for these centers quickly has become a major problem. Co-location, the arrangement that connects data centers to power plants directly…
US Governors push back against PJM following record-high prices for power plants
Five governors urged PJM Interconnection on Tuesday to change its process for determining the price of power plants, after the auction that saw record prices. Prices in the most recent PJM auction were almost 10 times higher than last year. This was largely due to a shrinking supply of electricity and an increasing demand for electricity. Prices were set at levels that raised concern about the cost of electricity for homes and businesses on PJM territory. Environmental groups filed a complaint to PJM over its pricing process.
Baker Hughes reports that the US oil/gas rig counts are stable this week. Pennsylvania has fallen to a 17-year low.
Baker Hughes, a closely watched energy services company, said that the U.S. firms maintained the same number of oil and gas rigs this week. The count fell to a low not seen in Pennsylvania for 17 years, according to its report. The number of oil and gas drilling rigs, a good indicator of future production, was 585 during the week ending October 25. Baker Hughes reported that the total number of workers was down by 40 or 6% compared to this time last. This week, oil rigs dropped by two - to 480 - while gas rigs grew by two – to 101. Drillers in Pennsylvania, which produces mainly gas, have cut down one drill rig.
Alcoa and Ignis are close to signing a joint funding agreement for Spain's aluminium plant
Alcoa announced on Wednesday that it is "progressing", towards a strategic agreement of cooperation with the Spanish renewable energy company Ignis, to fund the operations of the U.S. Metal Producer's aluminum plant in northwest Spain. Alcoa announced that the proposed agreement would see Alcoa contribute 75 million Euros ($81 million), and Ignis make an initial 25 million Euro investment, giving Ignis 25% ownership of San Ciprian in Galicia. Alcoa, based in Pittsburgh, Pennsylvania, said it would provide up to 100 million more euros if needed, prioritizing future cash flows.
Baker Hughes reports that US drillers have added oil and gas rigs to their fleet for the first time in 4 weeks.
Baker Hughes, a leading energy services company, said that the U.S. added oil and gas rigs this week for the first time since four weeks. The number of oil and gas rigs, a good indicator of future production, increased by one in the week ending October 11. Baker Hughes reported that the total number of rigs was down by 36 or 6% compared to this time last. Baker Hughes reported that oil rigs increased by two this week to 481. Gas rigs dropped by one, to 101. Pennsylvania saw two drillers reduce their rigs to 13 - the lowest number since July 2016.
Natural gas producers ask Harris for answers on the battleground state
Drillers from Pennsylvania, an energy-rich state, called on Democratic presidential nominee Kamala Harris this week to explain her stance on natural gas. The energy industry touts it as a clean fuel but climate activists claim that the fuel is a threat to global warming. In January, President Joe Biden froze new LNG export permits to examine their environmental impact. This was a move made in the election year in order to gain support from the green voting blocs of his party. Harris is now facing Donald Trump, a Republican who has stated that he will immediately lift the freeze on permits if elected.
Money losing natgas producer BKV revives US IPO
BKV Corp, a natural gas producer in the red, said it plans to raise $315 million via an initial public offer of shares. This comes nearly two years after BKV first filed to sell its shares publicly. BKV said it will offer between $19 to $21 per share. The company aims to achieve a valuation up to $1.77bn in its IPO. Companies waiting to list shares have a new window of opportunity due to the recent increase in natural gas prices in the United States from their more than 30-year low inflation adjusted. This company was one of the U.S. producers who were hard hit by low natural gas prices during the past two years.
EIA: US natgas production to decline by 2024, while demand will rise to record levels
The U.S. Energy Information Administration's (EIA) Short-Term Energy Outlook for 2024 predicts that natural gas production in the United States will decrease in 2024, while demand will reach a new record. EIA projects that dry gas production in the US will fall from a record high of 103.8 billion cubic foot per day (bcfd), in 2023, to 103.4 bcfd by 2024. This is because several producers have reduced drilling activities following spot gas prices at Henry Hub benchmark. In March, the number of people in poverty fell to its lowest level for 25 years. EIA's projected production for 2025 is 104.8 bcfd.
Rystad reports that US oil and gas M&A will reach a record in 2023, with the focus shifting away from Permian.
Analysts at Rystad, a consultancy, said that the appetite of U.S. producers for deals is close to last year's level, as a rise in interest in smaller oilfields offsets sluggish activity in the Permian Basin, which produces most oil. According to Rystad's analysis of the U.S. market through August, nearly $100 billion was spent on mergers and purchases (M&As) by U.S. producers. Another $46 billion worth of assets is currently up for sale. Rystad says that a record-breaking $155 billion in production and exploration deals were signed by 2023.
Senators ask Biden to reduce South Korean import quotas for piping products
Three Democratic U.S. Senators called on the Biden Administration on Friday to lower the current import quota for oil and gas drilling pipe from South Korea. They said it had impacted businesses in Ohio and Pennsylvania. Sherrod Brown, Bob Casey, and John Fetterman, senators from Ohio, Pennsylvania, and Pennsylvania, all noted that the market for Oil Country Tubular Goods - used in drilling, extraction, and transportation of oil and gas - has decreased, resulting in layoffs at companies operating within the United States.
EIA: US oil demand for June was the lowest since 2020
The U.S. Energy Information Administration reported on Friday that U.S. oil use in June was at its lowest levels for the season since the 2020 coronavirus pandemic. The EIA's proxy of demand, crude oil and petroleum product supply, dropped 2.7% from one month to the next, reaching 20,25 million barrels a day (bpd), in June. This is the lowest June level since 2020. The sharp drop comes after consumption reached a seasonally high of 20,80 million bpd during May. The EIA data also showed that distillate demand was at its lowest seasonal level since 2020.
Harris' energy strategy is ambiguous from a strategic perspective, say her aides
Since Vice President Kamala Harris joined the White House race 25 days ago, she has been keeping energy executives on their toes. Was she the anti-pollution and climate change warrior Attorney General of California? Or was she the pragmatic number two in the Democratic Biden Administration that oversaw record U.S. production and exports of oil? Seven times in her speeches, she mentioned climate, but never energy, fracking, or oil. Polls indicate that climate change is a topic of great interest, particularly among younger voters. Her campaign is aimed at avoiding alienating any side.
U.S. Natgas Demand, Price Nosedive Continues
U.S. natural gas futures held near a 21-month low on Tuesday, keeping the contract on track for its second-biggest monthly drop in history, as a decline in output from this week's extreme cold offset forecasts for warmer weather and less heating demand next week than previously expected.Gas prices have been depressed for weeks due to a growing belief that the country has more than enough gas in storage for the rest of the winter and expectations that Freeport LNG's liquefied natural gas (LNG) export plant in Texas is…
