Domestic Oil and Gas News: Week of April 28th, 2025
Market Trends & Production Outlook
Oil Prices Stabilize Amid Global Uncertainty: Oil prices experienced modest gains, with Brent crude reaching $67.09 per barrel and West Texas Intermediate (WTI) at $63.26. This marks the third consecutive session of increases, despite ongoing concerns over global economic growth and potential OPEC+ supply adjustments. Reuters+1Hart Energy+1
EIA Projects Peak U.S. Oil Production by 2027: The Energy Information Administration (EIA) forecasts that U.S. crude oil output will peak by 2027 as the shale boom diminishes. Brent crude is expected to average less than $70 per barrel in 2025, reflecting growing supply and lower demand.
Natural Gas Inventories at Three-Year Low: U.S. natural gas inventories concluded the winter at their lowest level in three years, driven by increased consumption and exports. The EIA reports that demand, including exports, is projected to grow by 4% in 2025, reaching 116 billion cubic feet per day. EIAEIA
Infrastructure & Industry Developments
Phillips 66 Plans New Gas Processing Facility in Permian: Phillips 66 announced plans to construct a natural gas processing plant with a capacity of 300 million cubic feet per day in the Permian Basin, aiming to enhance processing capabilities in the region. Rigzone
Chevron Commences Production at Ballymore Field: Chevron has started oil and natural gas production from the deepwater Ballymore field in the U.S. Gulf of Mexico, marking its second large domestic offshore project to commence in 2025.
Policy & Regulatory Updates
Interior Department Eases Offshore Drilling Regulations: The U.S. Interior Department implemented new guidelines for allowable pressure differences in certain types of oil drilling in the Gulf of Mexico, aiming to boost U.S. oil output. Reuters
U.S. Sanctions Shipping Companies for Delivering Oil to Houthis: On April 28, 2025, the United States imposed sanctions on three shipping companies and their vessels for delivering oil and gas products to the Houthi-controlled port of Ras Isa in Yemen. Reuters