Domestic Oil and Gas News: Week of June 2nd, 2025
Oil Prices Surge Amid Geopolitical Tensions
Oil prices experienced a significant uptick this week, with Brent crude rising to approximately $65 per barrel and West Texas Intermediate (WTI) reaching around $63 per barrel. This increase is attributed to escalating tensions between Russia and Ukraine, particularly following Ukrainian drone strikes on Russian military airfields. Additionally, OPEC+'s decision to maintain a production increase of 411,000 barrels per day for July fell short of market expectations, contributing to the price surge. Barron's+1WSJ+1MarketWatch+3WSJ+3Investor's Business Daily+3Investor's Business Daily+3Reuters+3Barron's+3
Interior Department Moves to Rescind Drilling Restrictions in Alaska
The U.S. Department of the Interior announced plans to rescind Biden-era restrictions on oil and gas drilling in the National Petroleum Reserve-Alaska (NPR-A). The proposed changes would lift prohibitions on leasing 10.6 million acres and ease development constraints on an additional 2 million acres, aiming to bolster domestic energy production. Reuters+2Axios+2AP News+2Reuters
European Asset Manager Divests from ExxonMobil and EOG Resources
Union Investment, a major German asset manager, has divested its holdings in ExxonMobil and EOG Resources, citing insufficient climate commitments, particularly the lack of Scope 3 emissions targets. While ExxonMobil disputes the efficacy of Scope 3 metrics, this move underscores a growing divide between European and U.S. asset managers regarding climate strategies. Financial Times
Natural Gas Prices Decline
U.S. natural gas prices have fallen to a two-year low, with the June contract settling at $3.204 per million British thermal units (MMBtu). This decline is attributed to ample supply and mild weather reducing demand. WSJ
GridFree AI Introduces Modular Power Systems for Data Centers
GridFree AI, a startup founded by former Microsoft and BP executives, has launched modular, off-grid "power foundry" systems integrating gas power, battery storage, and cooling components to efficiently support data centers. The technology aims to reduce capital and operational costs while enhancing energy efficiency. Axios