Domestic Oil and Gas News: Week of August 4th, 2025

Written By Ryan Haggerty

Rig Activity & Production Trends

  • Rig Count Falls Again: U.S. oil and gas rigs dropped by two to a total of 540 rigs in the week to August 1 — the lowest level since October 2021. Oil rigs fell to 410 (lowest since September 2021), while gas rigs rose slightly to 124, the highest since August 2023.Wikipedia+15EnergyNow+15Oil & Gas Journal+15

  • Onshore Output Under Pressure: Despite setting a record of ~13.5 mbpd, onshore production efficiency gains are being outpaced by declines in rig activity. Analysts warn of a potential 400,000 bpd drop in U.S. oil output by the end of 2026—especially in the Permian Basin.Reuters

Inventory & Supply

  • Crude Inventories Below Normal: U.S. crude storage dropped to approximately 426.7 million barrels, around 6–8% below the five-year seasonal average.Oil & Gas Journal+2MarketWatch+2

Oil Markets & Prices

  • Trading Activity Declines: On the NYMEX, Light Sweet Crude futures saw trading volume drop to ~695,000 contracts, with open interest falling by ~40,700—possibly indicating traders closing positions.AP News

  • Price Drag from OPEC+ Hike: OPEC+’s agreement to raise September output by ~547,000 barrels per day nudged crude prices slightly downward (under $70/bbl), continuing pressure from previous increases.The Guardian+13MarketWatch+13Business Insider+13

  • Summer Gasoline Trends: Gas prices are expected to slide below $3.00 per gallon, driven by weak summer demand, high import volumes, and crude price declines.Reuters+2Business Insider+2

Corporate & Project Developments

  • Coterra Energy Delivers Strong Q2: The company beat earnings expectations, reporting production up 17% to 783,900 boe/d, led by Permian and Anadarko. Natural gas sales surged 74%, offsetting lower oil prices. Coterra also secured a seven-year gas supply agreement to support a 1,350 MW power plant in the Permian.Reuters

  • LNG Expansion Moves Forward: Commonwealth LNG tapped Technip Energies for construction of its Cameron Parish facility (9.5 mtpa), aiming to come online in 2029 and likely to triple U.S. LNG capacity by 2030. Saudi Aramco may purchase supply from the project.Reuters

Geopolitical & Global Trends

  • India Buys U.S. Crude: Indian Oil Corporation purchased 7 million barrels of crude via international tender—4.5 Mbs from the U.S.—as it shifts away from discounted Russian oil amid EU and U.S. pressure.Reuters+1

  • BP’s Major Offshore Discovery: BP announced its largest oil/gas discovery in 25 years off Brazil’s Santos Basin—potentially adding 2.3–2.5 Mbpd and fueling a renewed upstream push. The news coincided with OPEC+ hesitations on further cuts.The Guardian

Ryan Haggerty
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Domestic Oil and Gas News: Week of July 28th, 2025