Domestic Oil and Gas News: Week of September 22nd, 2025

• US LNG faces risk of oversupply and domestic tension

  The U.S. liquified natural gas (LNG) industry has expanded rapidly and is now projected to contribute about half of the global LNG capacity growth between now and 2030. Reuters
  However, this success brings risks:

  Global LNG supply is expected to overshoot demand by 2026, which could push down export prices. Reuters

  Domestically, rising electricity demand (from things like large data centers) plus a slowdown in renewables deployment (due to reduced tax incentives) might increase U.S. natural gas prices, raising political and economic pressures. Reuters

• EPA permits move forward: Texas oil export project
  The U.S. EPA has issued an air permit for the Sentinel Midstream “Texas GulfLink” project, a proposed deepwater oil export terminal off Freeport, Texas. Reuters
  Key points:

  • The permit allows use of offshore support vessels to control volatile organic compounds during oil loading onto supertankers. It’s reportedly the first U.S. adoption of a technology used in the North Sea for this purpose. Reuters

  • With this permit plus a previously issued Record of Decision, the project is moving closer to final investment decision and needs only a construction license to begin. Reuters

  • Once built, the terminal would be only the second U.S. facility capable of fully loading very large crude carriers (ultra-large crude carriers), which could improve export efficiency. Reuters

• State-level energy affordability + regulatory balancing in California
  California Governor Gavin Newsom signed a package meant to tackle energy costs while still upholding climate goals. Politico
  Components include:

  • Expanding oil drilling in Kern County (a center of California’s oil region) and enhancing oversight of offshore drilling. Politico

  • Extending the state’s “cap-and-invest” climate program beyond 2030. Politico

  • Major funds for wildfire prevention, transmission infrastructure, and a new fund to help utilities affected by wildfires. Politico

• U.S. foreign energy diplomacy during Climate Week / UNGA
  The White House is pushing new oil & gas / energy export deals while engaging in climate diplomacy, particularly during Climate Week/United Nations General Assembly. Axios

  • Natural gas exports in particular are being leveraged as tools of energy diplomacy. Axios

  • There is an existing agreement with the EU for $750 billion in U.S. energy purchases. Axios

Trends & Outlook

• Oil price pressure: Oversupply concerns, weak or slowing demand, and reduced OPEC+ cuts are causing oil prices to drift down, despite macroeconomic events such as interest‐rate cuts. Reuters

• Regulatory acceleration: There’s a clear push toward expediting oil & gas infrastructure approvals, particularly for export facilities. The GulfLink air permit is a case in point. Reuters

• Balancing energy/climate policy: States like California are trying to walk both sides of the line: keep energy affordable and secure, while maintaining climate regulatory commitments.

• Export vs domestic needs tension: The push for LNG exports could worsen domestic natural gas prices if supply tightens or demand grows. The industry and policymakers will likely need to navigate trade-offs among export revenue, energy security, consumer prices, and climate impacts.