Domestic Oil and Gas News: Week of November 3rd, 2025
BP sells U.S. onshore mid-stream stakes for $1.5B
BP announced it will sell stakes in its U.S. onshore mid-stream assets (in the Permian Basin and Eagle Ford basins) to funds managed by Sixth Street for about US$1.5 billion.
After the transaction, BP’s U.S. onshore business (via its unit bpx energy) will retain a 51 % interest in the Permian assets and 25 % in the Eagle Ford assets.
The sale is part of a broader ~$20 billion divestment programme by BP to be completed by end-2027.
Why it matters: This reflects continued strategic repositioning by major oil & gas companies away from some onshore holdings and mid-stream assets, likely in response to investor pressure and cost/efficiency imperatives. For the U.S. onshore sector, this signals potential further consolidation and asset re-allocation.
SM Energy + Civitas Resources merger (~US$13 billion) in the Permian
SM Energy and Civitas Resources announced an all-stock merger that will create a combined company valued at around US$13 billion, focused on production in the Permian Basin.
Civitas shareholders will own about 52 % of the new entity, expected to close in Q1 2026 (pending regulatory approvals).
The merged company will hold over 800,000 acres in key Permian shale plays — making it one of the top 10 independent oil producers in the U.S.
Why it matters: This deal signals a resurgence in U.S. onshore M&A activity after a slowdown. It also highlights the importance of scale in unconventional production — larger acreage, operational synergies, and cost control are increasingly the competitive edge. For observers, it suggests consolidation could accelerate among smaller/mid-sized E&P firms.
U.S. & Global LNG market: Rapid U.S. export expansion raises oversupply concerns
The analysis notes that the U.S. is aggressively approving new LNG export terminal capacity (for instance in Louisiana) under the current administration, following a pause under the previous one.
The piece suggests that global LNG supply growth could outpace demand — raising the risk of an oversupply environment.
Why it matters domestically: Since the U.S. is increasingly reliant on LNG export growth for domestic upstream demand, a global oversupply could exert downward pressure on U.S. gas prices, impact investment decisions in gas infrastructure, and influence how U.S. producers hedge or expand. Also, it underscores how domestic oil & gas developments are tightly linked to global trade, geopolitics and supply-chain dynamics.
What to Watch Next
Asset re-allocations by major oil & gas companies: Will other majors follow BP’s path of selling onshore stakes or mid-stream assets?
Further consolidation in the Permian and other shale plays: Are more mergers or acquisitions on the horizon as producers seek scale?
Global LNG supply-demand balance and its impact on U.S. natural gas pricing: If export growth outpaces demand, domestic producers may face pressure.
Impact of U.S. export growth on upstream investment: If U.S. gas producers count on export markets, any change in global demand or pricing will reverberate domestically.
Regulatory/approval trends for LNG terminals and mid-stream infrastructure: The U.S. policy posture appears supportive of export expansion—how quickly will permitting move, and what constraints remain?