Domestic Oil and Gas News: Week of April 7th, 2025
EPA Approves Texas' First CO₂ Injection Wells
The U.S. Environmental Protection Agency has granted Texas its inaugural Class VI permits for carbon dioxide injection wells. Occidental Petroleum's subsidiary, Oxy Low Carbon Ventures, received approval to drill three CO₂ injection wells in Ector County, part of the Permian Basin. This initiative is integral to the Stratos direct air capture project, aiming to sequester up to 8.5 million metric tons of CO₂. While the project promises job creation and environmental benefits, concerns remain regarding potential induced seismicity and well integrity. U.S. News+4Reuters+4Reuters+4
Goldman Sachs Warns of Potential Oil Price Decline
Goldman Sachs has cautioned that Brent crude oil prices could drop below $40 per barrel in an extreme scenario, driven by a global economic slowdown and the reversal of current OPEC+ production cuts. Currently, Brent and U.S. West Texas Intermediate crude are trading around $64 and $60 per barrel, respectively. Such a price decline could pressure U.S. oil producers, whose average breakeven cost exceeds $62 per barrel, potentially leading to reduced production and investor payouts. Business Insider
Bureau of Land Management Announces Upcoming Lease Sale
The Bureau of Land Management's Montana-Dakotas State Office has scheduled an oil and gas lease sale for April 29, 2025. The sale will offer 11 parcels totaling 4,266 acres in Montana and North Dakota. This marks the first step in developing federal oil and gas resources in these areas. Bureau of Land Management+2Bureau of Land Management+2Bureau of Land Management+2
Texas Oil and Gas Industry Achieves Record Production
In 2024, Texas set new records in oil and natural gas production, surpassing previous highs from 2023. The state produced over 2 billion barrels of oil and 62 trillion cubic feet of natural gas. These milestones underscore Texas's leadership in the energy sector and its commitment to responsible production. World Oil
Permian Basin Expected to Drive Production Growth
Projections indicate that the Permian Basin will continue to be the primary driver of U.S. oil and gas production growth in 2025. Enhanced drilling technologies, including longer lateral drilling and multi-well pads, are contributing to increased output in the region. Midland Reporter-Telegram+1World Oil+1