Domestic Oil and Gas News: Week of May 12th, 2025

May 12

Production Trends & Market Outlook

Slight Dip in U.S. Oil Output Forecasted: S&P Global projects a modest decline in U.S. crude oil production in 2026, marking the first annual drop in over a decade (excluding the COVID-19 period). This anticipated decrease is attributed to global demand uncertainties and trade tensions. Axios+1Axios+1
Permian Basin Remains a Growth Driver: Despite the overall forecasted decline, the Permian Basin continues to lead U.S. oil and gas production growth. Enhanced drilling technologies and rising natural gas prices are spurring increased activity in the region. Midland Reporter-Telegram

Strategic Petroleum Reserve Replenishment: A U.S. House committee has proposed allocating over $1.5 billion to replenish the Strategic Petroleum Reserve (SPR), aiming to restore reserves after significant drawdowns in 2022. The proposal also suggests canceling a mandate to sell 7 million barrels by 2027. Reuters
Legal Challenges to Energy Emergency Order: A coalition of 15 states has filed a lawsuit against the Trump administration's executive order that designates a "national energy emergency" to fast-track oil and gas projects. The states argue that the order improperly bypasses key environmental reviews and federal regulations. AP News+1Axios+1

NRG Energy's Major Acquisition: NRG Energy announced plans to acquire 18 natural gas power plants from LS Power for $12 billion. This acquisition aims to bolster NRG's capacity to meet surging electricity demand, particularly driven by the growth of artificial intelligence data centers. Houston Chronicle
Continued M&A Activity in the Sector: U.S. upstream oil and gas mergers and acquisitions reached $105 billion in 2024, with gas-focused deals seeing a significant surge. The Permian Basin remained a top acquisition target, though interest is also shifting to mature shale plays like the Williston Basin and Eagle Ford. Helm+1U.S. News Money+1

Energy Star Program Under Threat: The Trump administration is considering eliminating the Energy Star program, a voluntary labeling initiative that has helped consumers choose energy-efficient appliances. Critics argue that ending the program would undermine a successful, bipartisan policy that has significantly reduced electricity consumption and greenhouse gas emissions. newyorker.com
BLM Lease Sales in New Mexico and Utah: The Bureau of Land Management (BLM) has announced oil and gas lease sales in New Mexico and Utah, offering parcels totaling over 2,000 acres. These sales are part of ongoing efforts to develop federal oil and gas resources. Bureau of Land Management+1Bureau of Land Management+1

Ryan Haggerty