Domestic Oil and Gas News: Week of April 14th, 2025

Apr 14

BP Discovers Oil in Gulf of Mexico: BP announced a significant oil discovery at the Far South field, located about 120 miles off Louisiana's coast. Early drilling suggests commercially viable volumes, aligning with BP's strategy to boost oil and gas output while scaling back on renewables. The company aims to increase Gulf production to 400,000 barrels of oil equivalent per day by 2030. Reuters
U.S. Oil Production Faces Potential Decline: Analysts warn that falling oil prices and trade policy uncertainties could reverse U.S. oil production growth. Barclays notes that current prices might lead to decreased production as early as this year, with shale output adjustments typically taking 6–9 months to manifest. Axios+1Axios+1
Permian Basin Drives Output Growth: Despite broader concerns, the Permian Basin continues to lead U.S. oil and gas production growth. The Energy Information Administration (EIA) forecasts a 300,000 barrels per day increase in Permian oil production in 2025, reaching 6.3 million barrels per day. Associated natural gas output is also expected to rise significantly. JPT

Infrastructure & Industry Developments

Keystone Pipeline Restart Approved: Following a 3,500-barrel oil spill near Fort Ransom, North Dakota, the Keystone Pipeline is set to resume operations. Operator South Bow has completed repairs and inspections, with the U.S. Pipeline and Hazardous Materials Safety Administration approving the restart under reduced pressure and continuous monitoring. AP News
NextDecade Secures LNG Supply Deal: U.S. LNG producer NextDecade signed a 20-year agreement with France's TotalEnergies to supply 1.5 million tonnes per annum from its proposed fourth liquefaction train at the Rio Grande LNG export facility. This deal increases the total contracted capacity for Train 4 to 4.6 million tonnes per annum. Reuters

BLM Announces April Lease Sale: The Bureau of Land Management (BLM) has scheduled an oil and gas lease sale for April 29, 2025, offering 11 parcels totaling 4,266 acres in Montana and North Dakota. This follows a public comment period that concluded in December 2024.
Interior Department's Offshore Leasing Plan: The Department of the Interior released its Proposed Final Program for the 2024–2029 National Outer Continental Shelf Oil and Gas Leasing Program, which includes a maximum of three potential oil and gas lease sales—the fewest in U.S. history. The plan aims to phase down oil and gas leasing in the Gulf of Mexico and enable the offshore wind program to continue growing.

Ryan Haggerty