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AI Needs Natural Gas To Survive

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From the Daily Caller News Foundation

By David Blackmon

As recent studies project a big rise in power generation demand from the big datacenters that are proliferating around the United States, the big question continues to focus in on what forms of generation will rise to meet the new demand. Most datacenters have plans to initially interconnect into local power grids, but the sheer magnitude of their energy needs threatens to outstrip the ability of grid managers to expand supply fast enough.  

This hunger for more affordable, 24/7 baseload capacity is leading to a variety of proposed solutions, including President Donald Trump’s new executive orders focused on reviving the nation’s coal industry, scheduled to be signed Tuesday afternoon. But efforts to restart the permitting of new coal-fired power plants in the US will require additional policy changes, efforts which will take time and could ultimately fail. In the meantime, datacenter developers find themselves having to delay construction and completion dates until firm power supply can be secured. 

Datacenters specific to AI technology require ever-increasing power loads. For instance, a single AI query can consume nearly ten times the power of a traditional internet search, and projections suggest that U.S. data center electricity consumption could double or even triple by 2030, rising from about 4-5% of total U.S. electricity today to as much as 9-12%. Globally, data centers could see usage climb from around 536 terawatt-hours (TWh) in 2025 to over 1,000 TWh by 2030. In January, a report from the American Security Project estimated that datacenters could consume about 12% of all U.S. power supply. 

Obviously, the situation calls for innovative solutions. A pair of big players in the natural gas industry, Liberty Energy and Range Resources, announced on April 8 plans to diversify into the power generation business with the development of a major new natural gas power plant to be located in the Pittsburgh area. Partnering with Imperial Land Corporation (ILC), Liberty and Range will locate the major power generation plant in the Fort Cherry Development District, a Class A industrial park being developed by ILC.   

“The strategic collaboration between Liberty, ILC, and Range will focus on a dedicated power generation facility tailored to meet the energy demands of data centers, industrial facilities, and other high-energy-use businesses in Pennsylvania,” the companies said in a joint release.  

Plans for this new natural gas power project follows closely on the heels of the March 22 announcement for plans to transform the largest coal-fired power plant in Pennsylvania, the Homer City generating station, into a new gas-fired facility. The planned revitalized plant would house 7 natural gas turbines with a combined capacity of 4.5 GW, enough power 3 million homes.  

Both the Homer City station and the Fort Cherry plant will use gas produced out of the Appalachia region’s massive Marcellus Shale formation, the most prolific gas basin in North America. But plans like these by gas companies to invest in their own products for power needs aren’t isolated to Pennsylvania.  

In late January, big Permian Basin oil and gas producer Diamondback Energy told investors that it is seeking equity partners to develop a major gas-fired plan on its own acreage in the region. The facility would primarily supply electricity to data centers, which are expected to proliferate in Texas due to the AI boom, while also providing power for Diamondback’s own field operations. This dual-purpose approach could lower the company’s power costs and create a new revenue stream by selling excess electricity.  

Prospects for expansion of gas generation in the U.S. received a big boost in January when GE Vernova announced plans for a $600 million expansion of its manufacturing capacity for gas turbines and other products in the U.S. GE Vernova is the main supplier of turbines for U.S. power generation needs. The company plans to build 37 gas power turbines in 2025, with a potential increase to over 70 by 2027, to meet rising energy demands. 

The bottom line on these and other recent events is this: Natural gas is quickly becoming the power generation fuel of choice to feed the needs of the expanding datacenter industry through 2035, and potentially beyond. Given that reality, the smart thing to do for these and other companies in the natural gas business is to put down big bets on themselves. 

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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conflict

‘They Don’t Know What The F*ck They’re Doing’: Trump Unloads On Iran, Israel

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From the Daily Caller News Foundation

By Harold Hutchison

President Donald Trump expressed frustration Tuesday after Iran broke a ceasefire, prompting retaliation from Israel during a gaggle with reporters on the White House lawn.

Trump announced the ceasefire Monday, saying it was supposed to take effect at 1 a.m. Eastern Daylight Time, but Iran fired missiles at Israel Tuesday. Trump vented, saying the countries had been “fighting so long” they couldn’t make peace.

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“You know, when I say okay, now you have 12 hours, you don’t go out in the first hour just drop everything you have on them,” Trump said. “So I’m not happy with them. I’m not happy with Iran either. But I’m really unhappy if Israel is going out this morning because the one rocket that didn’t land, that was shot, perhaps by mistake, that didn’t land, I’m not happy about that.”

“We basically have two countries that have been fighting so long and so hard, that they don’t know what the fuck they are doing,” Trump added.

The United States struck facilities in Fordow, Natanz and Isfahan related to Iran’s effort to develop nuclear weapons early Sunday morning local time, using as many as 14 GBU-57 Massive Ordnance Penetrators in the operation, which involved a 37-hour flight by seven B-2A Spirit bombers.

The American strikes came ten days after Israel launched a military operation targeting the Iranian nuclear program. Iran has responded with repeated missile attacks on Israeli cities and a refusal to resume negotiations over its efforts to pursue nuclear weapons.

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Automotive

Supreme Court Delivers Blow To California EV Mandates

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From the Daily Caller News Foundation

By Katelynn Richardson

“The Supreme Court put to rest any question about whether fuel manufacturers have a right to challenge unlawful electric vehicle mandates”

The Supreme Court sided Friday with oil companies seeking to challenge California’s electric vehicle regulations.

In a 7-2 ruling, the court allowed energy producers to continue their lawsuit challenging the Environmental Protection Agency’s decision to approve California regulations that require manufacturing more electric vehicles.

“The government generally may not target a business or industry through stringent and allegedly unlawful regulation, and then evade the resulting lawsuits by claiming that the targets of its regulation should be locked out of court as unaffected bystanders,” Justice Brett Kavanaugh wrote in the majority opinion. “In light of this Court’s precedents and the evidence before the Court of Appeals, the fuel producers established Article III standing to challenge EPA’s approval of the California regulations.”

Kavanaugh noted that “EPA has repeatedly altered its legal position on whether the Clean Air Act authorizes California regulations targeting greenhouse-gas emissions from new motor vehicles” between Presidential administrations.

“This case involves California’s 2012 request for EPA approval of new California regulations,” he wrote. “As relevant here, those regulations generally require automakers (i) to limit average greenhouse-gas emissions across their fleets of new motor vehicles sold in the State and (ii) to manufacture a certain percentage of electric vehicles as part of their vehicle fleets.”

The D.C. Circuit Court of Appeals previously rejected the challenge, finding the producers lacked standing to sue.

“The Supreme Court put to rest any question about whether fuel manufacturers have a right to challenge unlawful electric vehicle mandates,” American Fuel & Petrochemical Manufacturers (AFPM) President and CEO Chet Thompson said in a statement.

“California’s EV mandates are unlawful and bad for our country,” he said. “Congress did not give California special authority to regulate greenhouse gases, mandate electric vehicles or ban new gas car sales—all of which the state has attempted to do through its intentional misreading of statute.”

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