RBN Energy Blogcast
Subscribed: 33Played: 4,953
Subscribe
© RBN Energy, LLC
Description
Accelerating energy market analytics through collaboration, networking and alliances
1558 Episodes
Reverse
Before data centers were the hot topic everywhere, Virginia was already rolling out the red carpet and it seemed that tech firms were constructing facilities as fast as humanly possible, drawn by the state’s robust fiber-optic network and low power prices. But while other states are racing to catch up, Virginia may be hitting the brakes. In today’s RBN blog, we’ll look at what makes Virginia so “sweet” for data center developers, their impact on the state, and efforts by some to slow progress.
The popularity of weather derivatives has ebbed and flowed since their introduction in the late 1990s but trading activity has rebounded in recent years as the trading community has increasingly begun to reassess the need to hedge weather-related risks — everything from high temperatures and rainfall levels to power prices and cooling demand. In today’s RBN blog, we examine the role of weather derivatives, how they are used to hedge risk, and why they may be becoming increasingly important to the energy industry.
Natural gas prices at the Waha hub in West Texas plunged below zero again recently after force majeure and maintenance events across multiple pipelines left Permian producers scrambling to move their gas out. Persistent congestion will remain a big headache this fall and likely again in the spring, before the new Blackcomb and Hugh Brinson pipelines come online in 2026. In today’s RBN blog, we’ll highlight the importance of gas-flow analysis and pipeline modeling to preview our upcoming Natural Gas Master Class, which features real-world examples from today’s market, including a look at recent negative pricing in the Permian and Appalachian outflows on Mountain Valley Pipeline (MVP).
Ten years ago, U.S. exports of natural gas in the form of LNG were a footnote in the market. But that all changed in 2016. In February of that year, the first shipment of LNG from the Lower 48 states set sail when the vessel Asia Vision departed from Cheniere Energy's Sabine Pass export terminal in Louisiana. This was the culmination of a remarkable turnaround, not only at Sabine Pass, but for the U.S. natural gas market as a whole. Eight years earlier, Sabine Pass had been completed as an import terminal, as it was projected that the U.S. would face significant shortages of natural gas supplies. Shale turned that business model on its head.
Data center mania is sweeping across the U.S., grabbing headlines and spurring investor interest. It has now reached Louisiana, where Meta is building one of the largest developments in the Western Hemisphere. In today’s RBN blog, we’ll look at two gigantic projects planned for Louisiana, the early challenges the Bayou State faced in luring developers, and why it may now be a strong contender to emerge as a major Southern data center hub after a relatively slow start.
The numbers out of Eddy and Lea counties in southeastern New Mexico are nothing short of staggering. Crude oil production at 2.3 MMb/d, or one-sixth of total U.S. output. Natural gas production north of 9 Bcf/d and rising fast. More than 90 active rigs — again, one-sixth of the U.S. total. Many top E&Ps are stoked about the Northern Delaware Basin because of its stacked benches of high-quality, crude-saturated shale and carbonate formations. But much of the associated gas emerging from wells in Lea County is “off-spec” — tainted by levels of hydrogen sulfide (H2S) and carbon dioxide (CO2) that need to be dealt with — and producers and midstreamers have been scrambling to develop the sour-gas-related infrastructure required to support production growth. In today’s RBN blog, we begin a detailed look at the Northern Delaware’s existing and planned infrastructure for handling sour gas, including special gas gathering systems, amine treatment facilities, acid gas injection (AGI) wells, sweet gas pipelines and processing plants.
The last three years have seen historic changes in the U.S. octane market. The wholesale value of octane, the primary yardstick of gasoline quality and price, spiked threefold in 2022, followed by another year of high values in 2023. The numbers for 2024 and (so far) 2025 have been more stable, but still historically high. In today’s RBN blog, we look at why retail octane values have risen so high and why refiners have been capturing only a small share of the corresponding increase.
Although Labor Day has passed, most of the country is still enjoying balmy and relatively tranquil weather as we approach the onset of fall. However, a decline in crude oil prices since a mid-June peak has induced a profound chill in the boardrooms of oil and gas producers. Investors are becoming increasingly nervous as the crude spot price approaches $60/bbl, a widely accepted inflection point that, if breached, could threaten the post-pandemic financial stability the industry has enjoyed. In today’s RBN blog, we review the midyear adjustments to 2025 capital budgets and explore investment trends that could impact future production and results.
This summer, like the spring, winter and fall that preceded it, has seen a lot of dealmaking among midstreamers. And not just M&A and divestitures by the folks who gather, transport and process hydrocarbons but a major acquisition — and a rare IPO! — in the produced water slice of the midstream pie. Apples and oranges, maybe, but there are two common themes, namely that bigger is better and that zeroing in on core areas is key. In today’s RBN blog, we discuss some of the most significant midstream deals of Q3 2025.
The data center boom is sweeping across the country and Texas has garnered more proposals for new centers than almost any other state. If every planned project were to go forward, it would mean nearly 9 gigawatts (GW) of additional electricity demand, or just over 1 Bcf/d of natural gas. That’s enough to power the entire country of Switzerland. In today’s RBN blog, we’ll check out the biggest planned data centers across the Lone Star State and give a quick rundown on where things stand for each one.
OPEC+ is ramping up production, WTI is hanging below $65/bbl, and Permian crude oil production growth has slowed to a crawl, raising the question of whether oil output in the U.S.’s #1 shale play might, in fact, be peaking. That’s making some folks on the NGL side of things a little skittish. They’re wondering what a leveling off — or an outright decline — in Permian crude production would mean for associated gas and the volumes of Y-grade being piped to Mont Belvieu and other fractionation hubs. In today’s RBN blog, we discuss a new model that forecasts Permian NGL production under a variety of scenarios.
Oil and gas producers’ interest in each of the U.S.’s shale and tight-rock production areas has waxed and waned over the past quarter century or so. First it was the Barnett Shale, the birthplace of the Shale Revolution in the late 1990s. Then came the Fayetteville, Haynesville, Marcellus/Utica, Eagle Ford, Bakken, Permian, Denver-Julesburg (DJ) and SCOOP/STACK. And, as always, E&Ps are looking for “the next big thing.” The Uinta Basin in northeastern Utah certainly isn’t a Permian, Bakken or Eagle Ford, and it may not even be a DJ, but production of its unusual waxy crude has been on a tear lately, and a lot of people are asking how much further Uinta production can grow and how long those higher levels could continue. In today’s RBN blog, we discuss highlights from our new Drill Down Report on the Uinta.
Merger activity this year has been frequent in Canada’s oil and gas sector as companies strive for scale and efficiencies in an increasingly competitive landscape. The latest M&A salvo arrived in late August when MEG Energy agreed to a takeover offer from Cenovus Energy to create the largest bitumen producer in Alberta’s oil sands. With billions of barrels of reserves up for development, it is a chance for Cenovus to further consolidate and expand its existing lead in bitumen output from the oil sands. However, what might seem a straightforward corporate merger has been buffeted by a rival bid from Strathcona Resources in its attempt to create scale and ensure its own long-term competitiveness. In today’s RBN blog, we’ll examine the details of the two offers and what is at stake for all involved.
The refining industry is complex and unpredictable. Recent plant closures in the U.S. and abroad, as well as mounting pressure to produce more renewable diesel (RD) and sustainable aviation fuel (SAF), have shifted the landscape. In addition, an eight-year battle over CITGO’s three U.S. refineries has taken a new direction. Despite these shifts, the refining industry has remained resilient. In today’s RBN blog, we’ll discuss how refineries balance these changes and make choices to shape their future, the focus of our upcoming Refined Fuels Master Class. Warning: Today’s blog is a blatant advertorial.
Strong demand for refined products (especially jet fuel) in Arizona and refinery closures in Southern California have spurred the development of a new refined products pipeline from West Texas to the Phoenix area. ONEOK, whose acquisition of Magellan Midstream Partners made it a player in refined products, has announced an open season for the proposed Sun Belt Connector pipeline, which would expand PADD 2 and PADD 3 refiners’ access to premium markets out West. In today’s RBN blog, we discuss ONEOK’s plan and how it could impact refined products markets.
North America is an integrated energy market so deeply connected that it functions as one massive, interdependent system for the three “drillbit hydrocarbons”: crude oil, natural gas and NGLs. But the rapid changes happening in the market now — driven not only by supply/demand dynamics and evolving infrastructure but also regulatory policies and political pressures — mean it’s more important than ever to talk about how the ongoing relationship between the U.S. and Canada will evolve and strengthen in the coming years. That was the focus of our School of Energy Canada and the subject of today’s RBN blog. Warning: Today’s blog includes some blatant plugs for a newly available replay of our recent conference in Calgary.
Which is true, A or B? (A) Data center demand to power AI applications is the most transformative force to hit energy markets in years, or (B) This is one of the most overhyped, inflated narratives ever. We hear a constant stream of announcements, promotions and proclamations from developers, tech giants, utilities and politicians, many predicting a revolutionary surge in electricity and gas demand that will change everything. At the same time, others warn of a speculative bubble destined to pop. As we discuss in today’s RBN blog, sorting out which side is closer to reality is one of the most important questions facing U.S. energy markets.
For most of us, matching spending with income is the logical path to financial stability. However, after decades of aggressive investment in search of growth, the “dollars in equals dollars out” method of allocating free cash flow has been an adjustment for many U.S. oil and gas producers. Their post-pandemic concentration on keeping capital spending well below inflows, maintaining healthy leverage ratios and directing excess funds to reward shareholders with dividends and stock buybacks has revitalized the industry and restored investor confidence. But ebbing commodity prices have upped the difficulty of this quarterly zero-sum game. In today’s RBN blog, we will analyze the shifts detected in Q2 2025 cash allocation of the 38 major U.S. E&Ps we cover.
After a decade of regulatory and legal challenges, Mountain Valley Pipeline (MVP) finally came into service in the middle of last year. The 2-Bcf/d pipeline — soon to be expanded to 2.5 Bcf/d via additional compression — was designed to ease natural gas takeaway constraints out of the Marcellus/Utica and help production there break past its current plateau near 36 Bcf/d, but bottlenecks on the massive Transco Pipeline have complicated matters. In today’s RBN blog, we look at efforts to unleash more Appalachian gas in the domestic market, focusing on the Southside Reliability Enhancement Project (SREP), which has enabled more gas to reach North Carolina.
Refineries in Europe, Latin America, Russia and China are facing a host of issues that could ultimately benefit U.S. refiners. Europe has high operating costs and political pressures. Attacks have damaged Russia’s refineries, and the country continues to get blasted with steeper sanctions. China’s aging plants are closing and there are no new large-scale projects on the horizon. Latin America lags in capacity growth. In today’s RBN blog, we look at how these global issues are boosting opportunities for U.S. refiners.
Comments
Download from Google Play
Download from App Store
United States