Domestic Oil and Gas News: Week of March 24, 2025
As the week unfolds, the U.S. oil and gas sector continues to experience significant developments across production, policy, and market dynamics. Here's a comprehensive overview of the latest events shaping the industry:
U.S. Solidifies Position as Leading LNG Exporter
The United States has emerged as the world's foremost supplier of liquefied natural gas (LNG) over the past seven years. Projections indicate a 60% increase in production during President Donald Trump's second term. This surge enhances U.S. geopolitical influence, offering alternatives to Russian gas in Europe and meeting rising demand in Asia. Despite environmental concerns, the robust demand for natural gas provides the U.S. with competitive advantages and opportunities to repatriate manufacturing industries. El País
Expansion of Oil and Gas Leasing in Alaska
The Trump administration has announced plans to significantly expand oil and gas leasing in Alaska. This initiative includes reopening 82% of the National Petroleum Reserve and the 1.56-million-acre Coastal Plain of the Arctic National Wildlife Refuge to leasing. Additionally, restrictions along the Trans-Alaska Pipeline Corridor and Dalton Highway are being lifted to facilitate development projects. While aimed at boosting economic growth, this move has drawn criticism from environmental advocates concerned about wildlife and climate impacts. Reuters+1Wikipedia+1
New Mexico Increases Oil Royalty Rates
The New Mexico Legislature has approved a bill to raise royalty rates for new oil developments on key state lands from 20% to 25%. Targeting the Permian Basin, which accounted for 46% of U.S. oil production in 2023, the increased royalties are expected to benefit public institutions such as schools and hospitals. While some critics warn of potential adverse effects on oil producers, proponents argue that the measure is essential for maximizing public benefits. AP News
Elliott Management Acquires Stake in RWE
U.S. activist hedge fund Elliott Management has acquired a nearly 5% stake in German energy company RWE. Elliott is urging RWE to enhance and expedite its share buyback program. Despite RWE's significant investments in renewable energy, recent announcements indicate a €10 billion reduction in green technology investments over the next five years, partly due to the Trump administration's resistance to offshore wind projects. Elliott's involvement underscores the ongoing debate over capital allocation and shareholder returns in the energy sector. Financial Times
Global Oil Market Outlook
The Russian central bank has issued a warning about the potential for a prolonged period of low oil prices, reminiscent of the 1980s downturn that contributed to the Soviet Union's collapse. Factors contributing to this outlook include increased production from the U.S. and other non-OPEC countries, as well as near-record-high spare capacity within OPEC. As the U.S. threatens further sanctions and promises increased oil production, Russia faces economic challenges due to its heavy reliance on oil and gas exports. Reuters
Regulatory Changes and Industry Impact
In a notable regulatory development, Congress has repealed a methane pollution fee that targeted waste emissions from the oil and gas industry. This decision is projected to cost taxpayers $7.2 billion and has sparked discussions about the environmental and economic implications of such policy shifts. Oil and Gas Watch News