Domestic Oil and Gas News: Week of August 18th, 2025

Written By Ryan Haggerty

LNG Export Demand Slumps

  • On August 18, two of the U.S.'s largest liquefied natural gas (LNG) export facilities—Cheniere’s Sabine Pass in Texas and Sempra’s Cameron LNG in Louisiana—saw notable drops in demand. Sabine Pass’s gas usage fell to 3.7 bcf/d from a usual 4.5 bcf/d, while Cameron LNG fell to 1.3 bcf/d from 2 bcf/d. This pulled U.S. daily demand to 14.7 bcf/d, a two‑month low. As a result, natural gas futures slipped roughly 1%, with the September contract declining to $2.90/MMBtu Reuters.

Natural Gas Production at Record Levels

  • In contrast to diminishing export demand, U.S. natural gas production reached another record high in August, averaging over 106.7 Bcf/d. This increase is tied to a rebound in gas-directed drilling activity, with the gas rig count climbing to 120, the highest since winter S&P Global.

  • Meanwhile, Henry Hub spot prices dropped from $3.02 to $2.92/MMBtu, and September futures slid from $3.077 to $2.828/MMBtu over the week ending August 13 Axios+15U.S. Energy Information Administration+15ChemAnalyst+15.

  • The EIA projects 2025 spot averages for Henry Hub at approximately $2.70/MMBtu, down from earlier expectations of $2.88, as oversupply outpaces demand Energy, Oil & Gas magazine.

Oil Inventory Build and Crude Activity

  • U.S. crude oil inventories rose by 3 million barrels last week, signaling increased supply and/or imports Apple Podcasts+4Wall Street Journal+4Energy, Oil & Gas magazine+4.

  • The Baker Hughes rig count report (week ending August 8) showed a third consecutive weekly decline in active rigs: oil rigs rose by one to 411, while gas rigs and miscellaneous rigs both dropped by one, bringing the total to 539 rigs Reuters.

  • Meanwhile, the EIA’s (August 13) weekly petroleum supply data indicated a 3 million‑barrel increase in crude stocks, a slight drop in gasoline (‑0.8 million barrels), and a small rise in distillates (‑12.4 million year-over-year) and propane stocks (‑1.47 million) U.S. Energy Information Administration.

Energy Regulation & Policy Moves

  • The EPA issued an interim final rule extending compliance deadlines under the Clean Air Act rules for the oil and natural gas industry (known as OOOOb/c). The agency also extended the public comment period to October 1, 2025 EPA.

  • The U.S. Interior Department earlier in July proposed regulatory reforms allowing for commingling of production from multiple leases on a single well pad in the West. These changes would modernize legacy restrictions and are projected to save the industry up to $1.8 billion annually, supporting more efficient operations and better royalty tracking Reuters+1.

Community Concern: Compressor Station in Texas

  • The Conroe City Council, near Houston, voted to oppose a planned high-pressure natural gas compressor station linked to the 193-mile Blackfin Pipeline. Located just 150 feet from a furniture store, residents and business owners cited severe safety risks and lack of prior transparency. A lawsuit is proceeding, with a public hearing planned for August 29 Houston Chronicle.

Geological Potential: Rockies Resources

  • A new U.S. Geological Survey (USGS) assessment highlights that the century-old Phosphoria petroleum system (Wyoming & Colorado) is nearly tapped out. However, the newer Mowry Composite Petroleum System—spanning Wyoming, Colorado, and Utah—is estimated to hold 473 million barrels of oil and 27 trillion cubic feet of natural gas potentially recoverable OilPrice.com.

Ryan Haggerty
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Domestic Oil and Gas News: Week of August 12th, 2025