EIA: US oil drilling will slow down as prices fall, Venezuela's growth could increase pressure
Lower oil prices will likely reduce?U.S. The Energy Information Administration reported on Tuesday that drilling activity will reduce production by 1% in the top producing country this year, and a possible increase of supply from Venezuela may 'add pressure. The Department of Energy’s statistical arm echoes concerns from some U.S. producers regarding President Donald Trump’s request that domestic oil companies enter Venezuela to help increase its production after President Nicolas Maduro was captured. U.S. oil producers are already struggling with low oil prices. They say that the demand for more Venezuelan oil will only make them worse.
EIA: US oil drilling will slow down as prices fall, Venezuela's growth could increase pressure
Energy Information Administration reported on Tuesday that lower oil prices will reduce U.S. drilling activity and reduce production by 1% in the United States this year, while a possible increase in Venezuelan output could add to the pressure. The Department of Energy's statistics arm's comments add to the concerns expressed by some U.S. producers regarding President Donald Trump's call for domestic oil companies to enter Venezuela to help increase its production after President Nicolas Maduro was captured. U.S. oil producers are already struggling with low oil prices. They say that the demand for more Venezuelan crude oil will only make them worse.
Trump's "drill baby, drill" agenda in Venezuela hurts producers at the home
Trump wants $50 oil but it's below the profit level of U.S. Venezuelan oil redirected to squeeze U.S. Venezuelan oil to benefit U.S. HOUSTON, January 9 - U.S. Oil Producers already struggling with low oil prices face renewed pressure as President Donald Trump presses them to increase output in Venezuela – a move which would weaken oil markets, reduce revenues and hurt the industry at home. Trump's policies, he claims, will unleash American energy while lowering prices at the pumps. This promise would benefit U.S. customers but would squeeze revenues from the oil industry. Lower profits means oil companies will drill less and not more. Trump has asked U.S.
Why US producers are paying attention to Canada's most popular shale play
Executives, analysts, and advisors say that U.S. producers of oil and gas are seeking new drilling territories in Western Canada's Montney Basin, an enormous shale play in a remote area. The basin is already a hub of M&A and may see even more deals in the near future. The United States has become the largest oil producer in the world as a result of extensive drilling on shale deposits over the past 15 years. After a period of rapid expansion, oil producers are less interested in drilling prospects within the Permian oilfield, which extends across Texas and New Mexico. This is because the remaining area with high-production potential has shrunk.
Dallas Fed energy survey shows little change in oil and gas production during Q4
According to a Federal Reserve Bank of Dallas survey, oil and?gas production in Texas, Louisiana, and New Mexico?edged down in the fourth quarter as executives expressed concerns about low oil prices, which are rendering some wells uneconomical, and the ongoing geopolitical uncertainties. The oil and gas industry's production was essentially unchanged over the quarter, while costs rose at a lower rate than in the previous quarter. Oilfield service firms reported a modest decline in a number of indicators, including equipment usage and operating margin.
Milei's Argentinean counterparts could face challenges if Vaca Muerta oil production slows down.
The Vaca Muerta oil field in Argentina, which is the fourth largest unconventional oil reserve in the world, has plateaued due to low oil prices and increasing costs. This slowdown could complicate Javier Milei's political agenda. The Vaca-Muerta formation, located in western Argentina, accounts for 64% the country's total oil production despite only 8% being under development. It's vital for Argentina's future economic and Milei's Government, who needs to increase Argentina's energy exports in order to boost Argentina's dollars reserves and build trust in the government's capability to maintain a currency stable.
EIA: US crude production will reach record 13,41 million bpd by 2025, before dropping.
The Energy Information Administration predicted in its monthly report on Tuesday that the U.S. crude oil production would reach a record 13,41 million barrels a day in 2025, despite lower oil prices causing a decline in 2026. EIA data show that the drop in production in 2026 to 13,28 million barrels per day would be the world's first decline since 2021. The EIA forecasted that the Brent benchmark price would average $51 a barrel in 2019. This is down from the previous forecast of $58 a barrel. After the Organization of Petroleum Exporting Countries (OPEC) and its members decided on accelerating the pace of production increase, the EIA has revised their estimate.
Devon Energy's profit forecast for the second quarter was missed due to low oil prices
The U.S. oil-and-gas producer Devon Energy narrowly missed Wall Street's expectations for the second quarter profit on Tuesday as lower commodity prices offset an increase in production. As a result of the growing demand for natural gas, the company has also announced two new supply agreements. Benchmark Brent crude oil prices dropped during the quarter of April-June compared to a year ago, due to a combination of growing market insecurity caused by tariffs, weak demand globally and an increase in supply from OPEC+. The average realized price was $36.30 for a barrel of oil-equivalent (boe) in the period reported, down from $44.29 last year.
Exxon exceeds profit expectations with higher production despite low oil prices
Exxon Mobil - the United States’ largest oil producer - beat Wall Street expectations for the second quarter profit on Friday, as increased oil and gas production and low production costs compensated for the lower crude oil prices. Exxon Mobil reported that oil and gas production reached its highest level in any second quarter ever since Exxon Mobil was formed by the merger of Exxon Mobil and Exxon more than 25 year ago. LSEG data showed that adjusted earnings for the second quarter totaled $7.1 billion or $1.64 a share. This was higher than analyst consensus estimates of $1.56 a share. Energy sector is struggling with price volatility, as OPEC+ increased production.
Halliburton profits slump on weak drilling demand in North America and the Middle East
Halliburton announced a 33% drop in profits for the second quarter Tuesday due to weak demand in North America, Saudi Arabia, and Kuwait. The company warned of a negative impact on earnings in the second quarter due to President Donald Trump’s tariffs, and lower oilfield activities in North America. This was because producers analyzed drilling and completions with low oil prices. Halliburton CEO Jeff Miller stated in a press release that the oilfield services market would be weaker than he had anticipated over the short-to-medium term. North America's quarterly revenue dropped 9%, to $2.26 Billion.
Viper Energy increases Permian Basin Presence with $4.1 Billion Sitio Deal
Viper Energy has acquired Sitio Royalties, valued at $4.1 billion including debt. The companies announced this on Tuesday. This will increase the inventory and scale of Diamondback Energy's Permian basin unit. Sitio shares rose 11.9% premarket to $19.38 following the announcement. Dealmaking in the U.S. Despite the low oil prices and uncertainty in the market, the Permian Basin is still a lucrative investment. Permian Energy, a New Mexico-based energy firm, announced last month that it would acquire New Mexico Permian assets for 608 million dollars from APA Corp. Diamondback uses Viper to acquire oil and gas properties in North America.
North Dakota regulators extend the time oil producers can drill wells without completion
North Dakota's Department of Mineral Resources announced on Thursday that it has extended the policy for how long producers may leave unfinished wells after drilling. This is expected to assist drillers in dealing with low oil prices. As U.S. crude oil prices dropped to $61 per barrel, the majority of companies have decided to delay completion and drop their rigs. This is because they are below the $65 average price that is required to make a profit. North Dakota producers must plug their wells after a year or put them into production to avoid abandonment. Operators will be able to extend their current policy until the spring of 2027.
US oil M&A declines from highs of 2023 as buyers focus on volume over value
Dealmaking has slowed in the U.S. Oil Patch in 2025. The activity is expected to remain muted throughout the remainder of the year as some prolific buyers concentrate on extracting value from their previous acquisitions while others reduce their appetite for takeovers because of weak oil prices and uncertainty in trade. In the last three month, oil companies spent $17 billion in acquisitions. This is a sharp drop from the peak of dealmaking during the third quarter 2023 when they spent $144 billion in M&A. Benchmark U.S. Crude recently fell to $55 a barrel from $78 a barrel in January, just prior to the inauguration of President Donald Trump.
As crude prices fall, investors fear that Big Oil may reduce share buybacks.
Investors will pay attention to the fact that falling oil prices are increasing the risk of dividends and share purchases for the remainder of 2025. Big Oil's efforts to win over Wall Street have been based on reinvesting cash in the form of dividends and stock repurchases. U.S. president Donald Trump's announcements of global tariffs have caused fears of a weaker oil market and a possible recession, leading forecasters to reduce their oil price expectations. If prices were lower, Big Oil would have less money to give to its shareholders. Analysts said that investors will be looking for companies to explain how they plan on dealing with the sustained decline in oil prices.
Enverus: Weak oil prices and limited shale acres will impact energy M&A by 2025
Enverus, an analytics firm, said that the U.S. Upstream Oil and Gas M&A Market is bracing itself for the most challenging conditions in the past decade, as oil prices plummet and prime acreage disappears, despite the fact that dealmaking surged last quarter, making it the second best start to the year ever, despite the fact that the number of deals jumped to the highest level since 2018. After a string of record-breaking takeovers of oil and gas companies in recent years that culminated with a $192 billion deal in 2023, the expected decline in mergers and purchases follows.
Canadian oil and Gas CEOs avoid rash decisions during the price crash
On Tuesday, CEOs of Canadian producers of oil and gas said they were trying to avoid taking sudden decisions as the global oil price hovers around four-year lows. Doug Bartole said that his Calgary-based company, InPlay Oil, does not expect to reduce production or capital expenditures in the near future, despite recent oil price drops due to tariffs. Don't take any rash decision. Bartole stated in an interview that it was best to take a long-term view and wait for the outcome. He said this could change, however, if the price of oil continues to fall. Bartole stated, "I believe $50 oil would make a difference in the world a little more. "We are able to withdraw capital easily.
Russian central bank expects low oil prices to continue for a while
The Russian central bank warned Kremlin policymakers that the United States and OPEC could flood the oil markets and cause a similar price collapse to what occurred in the 1980s, which led to the fall of the Soviet Union. The warning was issued weeks before Russian President Vladimir Putin and U.S. president Donald Trump began negotiations to end the conflict in Ukraine. Trump warned that he would impose additional sanctions against Russia if a peace agreement was not reached. He has also promised to increase U.S. production of oil and urged OPEC leader Saudi Arabian to pump more to support the global economy.
Saudi Arabia's GDP will grow by 1.3% between 2024 and 2024
Preliminary government data released on Sunday showed that Saudi Arabia's economy will grow by 1.3% in 2024. This growth is due to increased non-oil activities and government initiatives. Data released by the General Authority for Statistics revealed that non-oil activities grew by 4.3%, government activities grew by 2.6% and oil activities decreased by 4.5%. According to government estimates, the fourth quarter GDP of the Kingdom increased by 4.5% compared to last year. Low oil prices will continue to affect government revenues, resulting in a slowdown in growth in the world's largest oil exporter.
Trump's tariffs threaten Canada's oil and natural gas drillers
Canada's oilfield services and drilling sector has already begun to show signs of slowing down due to the threatened tariffs by U.S. president Donald Trump. This has sparked fears that a rebound in this industry could be halted if these levies are implemented. The Canadian drilling industry lost thousands of jobs between 2014 and 2020 as a result of low oil prices, and the COVID-19 pandemic. Industry representatives say that activity has increased since 2020. However, Trump's threat of imposing a 10% tariff for the 4 million barrels a day (bpd), or Canadian crude imported to the U.S., could change this.
Rockhopper Reducing Headcount, Directors' Salaries
Oil and gas company Rockhopper, with a share in the Sea Lion project off the Falkland Islands, has announced a set of cost-cutting measures which include headcount reductions, and directors' salary reduction.The company said Tuesday that due to the "external events affecting the sector" - meaning low oil prices and the pandemic - it would further reduce ongoing G&A costs and re-balance executive director remuneration from cash to equity "while ensuring retention of key staff, capabilities, and knowledge within the business."The company's measures include a permanent reduction to executive director base remuneration…