Domestic Oil and Gas News: Week of May 27th, 2025
Oil Prices Dip Amid Supply Concerns
Oil prices declined by approximately 1% this week, with West Texas Intermediate (WTI) settling below $61 per barrel.The drop is attributed to anticipated increases in OPEC+ production and progress in U.S.-Iran negotiations, which could lead to additional global supply. Despite easing trade tensions with the EU, the market remains cautious ahead of the upcoming OPEC+ meeting scheduled for May 31. RigzoneMarcellus Drilling News+3Reuters+3Rigzone+3
Texas Enacts Stricter Regulations on Inactive Wells
The Texas Legislature has passed a bill imposing new deadlines for oil and gas companies to plug inactive wells. This legislation aims to address environmental concerns and reduce the number of abandoned wells across the state. The bill is awaiting Governor Greg Abbott's signature to become law. The Texas Tribune
U.S. Restricts Chevron's Operations in Venezuela
The U.S. government has granted Chevron a limited license to maintain its assets in Venezuela but prohibits the company from operating oilfields, exporting oil, or expanding activities. This decision follows the expiration of a broader license and reflects ongoing U.S. sanctions aimed at limiting economic benefits to President Nicolás Maduro's administration.Reuters+1WSJ+1
U.S. Rig Count Falls to Three-Year Low
The U.S. oil and gas rig count has dropped to its lowest level since 2021, with a total of 566 rigs in operation. This decline is due to reduced drilling activity amid lower oil prices and market uncertainty. Midland Reporter-Telegram
Shale Industry Faces Investment Challenges
U.S. shale producers are scaling back investments and idling drilling rigs in response to rising costs and declining crude prices. Analysts predict a 1.1% decrease in U.S. oil output to 13.3 million barrels per day in 2026, marking the first annual decline since 2020. Financial Times
Discovery of Undiscovered Oil and Gas Resources
A new federal assessment has identified significant undiscovered, technically recoverable oil and gas resources in parts of Wyoming, Utah, and Colorado. This discovery could have implications for future energy development in these regions.Reuters