Latest news with #AnnualEnergyOutlook2025
Cision Canada
6 days ago
- Business
- Cision Canada
Domestic Drillers Rush To Power AI Grid As Global Oil Demand Stays Unbroken
Issued on behalf of Prairie Operating Co. VANCOUVER, BC, July 17, 2025 /CNW/ -- Equity Insider News Commentary – There are no near-term plans to reduce oil production, with no peak to oil demand before 2050, according to OPEC. This comes despite OPEC's claims oil demand will be trimmed over the next four years, there's no peak in sight. A significant portion of this demand is projected to come from the rapid rise of data centers in the Middle East, meant to power the AI revolution behind the scenes. Domestically, the US Energy Information Administration's (EIA's) Annual Energy Outlook 2025 projects US crude oil and natural gas production growth to remain relatively high through 2030. Now analysts are touting how federal policies in the USA are driving fresh interest in non-OPEC oil and gas, with intriguing developments coming from Prairie Operating Co. (NASDAQ: PROP), Chesapeake Utilities Corporation (NYSE: CPK), Kosmos Energy (NYSE: KOS), Ring Energy, Inc. (NYSE-American: REI), and ARC Resources Ltd. (TSX: ARX) (OTCPK: AETUF). In order to accomplish US President Trump's goal of refilling the country's Strategic Petroleum Reserve to its maximum capacity, Energy Secretary Chris Wright estimates it would take $20 billion and years to accomplish. The need for domestically sourced energy also grows, as power utilities providers seek higher prices for their products based on rising AI demands. While Prairie Operating Co. (NASDAQ: PROP) may still fly under most radars, during the past four months the Houston‑based driller has quietly expanded its Denver–Julesburg Basin footprint while preserving the kind of capital discipline that appeals to retail investors. In its latest bolt‑on move, Prairie paid $12.5 million for a slice of Edge Energy acreage, adding about 11 000 net acres, 190 boe/d of current output, and 40 drill‑ready locations. "This strategic and highly accretive bolt-on acquisition enhances our existing footprint in the DJ Basin," said Edward Kovalik, Chairman and CEO of Prairie. "With a high working interest, established cash flow, and development-ready drilling locations, this transaction aligns with our capital allocation strategy and adds near-term value and long-term inventory." Prairie covered the acquisition with its reserve‑based credit facility, avoiding any share dilution. The room to maneuver comes from a June update in which Prairie confirmed a $1 billion RBL led by Citibank; on 9 June the lender group—now including Bank of America and West Texas National —reaffirmed the $475 million borrowing base after reviewing the company's bigger reserve book. Operations are moving at a similar clip. In late April Prairie began completing nine drilled‑but‑uncompleted Opal Coalbank wells that should reach first oil this summer. Those wells trail the 11‑well Rusch Pad, spudded on 1 April, with alternating 2‑mile laterals in the Niobrara and Codell. Initial production from Rusch is slated for early August, giving investors two quick volume catalysts. Prairie 's expansion is anchored by its $602.8 million purchase of Bayswater Exploration assets, which closed in late March. The transaction lifted daily production by about 25,700 boe, added 77.9 MMboe of proved reserves, and delivered more than 600 future drilling sites across 24,000 acres. At less than 0.7× proved PV‑10, the price leaves solid asset backing under the shares. "The addition of the Bayswater Assets further establishes Prairie as a leading operator in the DJ Basin," said Gary Hanna, President of Prairie. "These assets are a strong complement to our existing portfolio, and we remain focused on maximizing operational efficiencies, optimizing production, and delivering sustainable growth for shareholders." Today Prairie controls roughly 60,000 net DJ acres, over 550 economic locations, and keeps leverage near 1× EBITDA. Liquids should account for about 70% of output—an attractive mix as AI‑driven power demand pushes both crude and associated‑gas needs higher. With first flows from Opal Coalbank and Rusch on the horizon, investors will soon see whether the blueprint stays on schedule. In other recent industry developments and happenings in the market include: Chesapeake Utilities Corporation (NYSE: CPK) is expanding its energy footprint in Ohio, signing a deal with American Electric Power to construct an Aspire Energy Express pipeline that will supply natural gas to a data‑center fuel‑cell plant. The pipeline represents about $10 million in capital expenditure and is slated to become operational in early 2027. "This project is a clear example of how Chesapeake Utilities Corporation continues to execute on our growth strategy by leveraging our core capabilities — new business development, transmission project construction and customer-focused energy solutions," said Jeff Sylvester, senior vice president and chief operating officer of Chesapeake Utilities Corporation. "Through our work with AEP, we're deploying capital to deliver infrastructure needed to support energy demand in high-growth regions of Ohio." The partnership positions Chesapeake to capture incremental demand from the fast‑growing data‑center market while strengthening its Midwestern infrastructure base. Kosmos Energy (NYSE: KOS) recently confirmed that the floating LNG vessel Gimi, chartered to BP, has achieved its commercial operations date at the Greater Tortue Ahmeyim development. The facility is now producing LNG at rates equivalent to 2.4 million tpa, nearly 90% of its 2.7 million tpa design capacity, following first LNG in February and multiple cargo liftings this spring. Kosmos forecasts about 3.5 gross cargos in the second quarter as exports continue to ramp. The successful startup strengthens Kosmos' production outlook and underscores effective cooperation with Golar and other project partners. Ring Energy, Inc. (NYSE-American: REI) recently announced that its senior secured credit facility has been extended to June 2029 while the $585 million borrowing base was reaffirmed. "We value the ongoing support from our bank group and are pleased to have Bank of America as our new administrative agent," said Paul D. McKinney, Chairman of the Board and CEO of Ring. "We continue to focus on generating free cash flow through cost reductions, divestitures of non-core assets, and acquiring high-margin, low-break-even assets, using excess cash to reduce debt and create value for stockholders across commodity price cycles." Ring also secured a 25‑basis‑point reduction in the pricing grid and appointed Bank of America as administrative agent for the 11‑bank syndicate. The amendment bolsters liquidity and supports Ring's plan to cut debt and fund high‑margin Permian development. ARC Resources Ltd. (TSX: ARX) (OTCPK: AETUF) has officially folded Strathcona Resources' Kakwa Montney properties into its portfolio for roughly C$1.6 billion. The purchase delivers two wholly owned processing facilities, a 19 % stake in a third plant, and enough inventory to extend development beyond 15 years. ARC expects the new assets to contribute 35 000–40 000 boe per day this year—about half liquids—cementing its position as Canada's leading condensate producer. Following the close, net debt is about C$2.8 billion, backed by an upsized C$2 billion credit facility. CONTACT: Equity Insider [email protected] (604) 265-2873 DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has been paid a fee for Prairie Operating Co. advertising and digital media from the company directly. There may be 3rd parties who may have shares of Prairie Operating Co. and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Prairie Operating Co. which were purchased in the open market, and reserve the right to buy and sell, and will buy and sell shares of Prairie Operating Co. at any time without any further notice commencing immediately and ongoing. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material, including this article, which is disseminated by MIQ has been approved by Oncolytics Biotech Inc.; this is a paid advertisement, we currently own shares of Prairie Operating Co. and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
Forbes
17-04-2025
- Business
- Forbes
Implications And Scenarios If U.S. Oil Production Plateaus In 2027
An oil drilling rig along the Pecos River in the Permian Basin, Loving, New Mexico, U.S. (Photo: Jim ... More West) Conjecture about when U.S. oil production may plateau is not new. Many in the industry, including several energy bosses, reckon the country's output - currently north of 13.5 million and the highest in the world - will continue to rise at least until 2027. In March, at CERAWeek 2025, a major energy event organized by S&P Global, ConocoPhillips CEO Ryan Lance and Occidental Petroleum CEO Vicki Hollub joined many of their industry peers in predicting a U.S. crude production plateau sometime between 2027 and 2030. Now the Energy Information Administration, statistical arm of the Department of Energy, has also predicted that a 2027 production plateau sounds fairly plausible. In its Annual Energy Outlook 2025 published on Wednesday, the EIA said U.S. production will rise to 14 million bpd in 2027, and may likely stabilize at or near that level for a few years up until the early 2030s, before a gradual decline comes into view. After that, a further decline may happen at a much faster rate through to the 2050s as the uptick from the U.S. shale bonanza starts to ebb away. Shale production itself is also expected to peak in 2027. It draws the contribution of U.S. shale industry into sharp focus. In 2024, U.S. output grew on an annualized basis by 2%, or by 270,000 bpd, to average around 13.2 million bpd. Nearly all the production growth came from the Permian region, which accounted for nearly half of total U.S. crude oil production, according to the EIA. Shale production is expected hit a record of 10 million bpd by 2027, up from 9.7 million bpd expected in 2025. Thereafter, it may well be on a sliding track down to 9.33 million bpd by 2050. Commenting on the EIA's projections, the DoE criticized the previous Biden Administration and flagged President Donald Trump's pro oil credentials since he took office in January. "The report reflects the disastrous path for American energy production under the Biden administration - a path that was soundly rejected by the American people last November. "By unleashing energy that is affordable, reliable, and secure, this administration is ensuring America's future is marked by energy growth and abundance - not scarcity." As things stand, the U.S. remains the world's leading oil producer, a crown it bagged toward the end of 2023 and continues to hold. It may continue to bag that title till at least the turn of the decade, if not longer. However, Saudi Arabia is sitting on spare capacity of 3 million bpd and could be in a position to challenge the U.S. if the latter's decline rate is deeper than forecast. Becuase despite the U.S. shale bonanza, the Saudis remain the world's buffer producers, i.e., they hold a large amount of spare capacity that can be used to absorb supply shocks and stabilize oil prices. Overall, a market adjustment may be required by importers of light sweet crude out in Asia, from the Indian subcontinent to the East. Many are currently enjoying being in the position of being able to import readily available and competitively priced U.S. light sweet crudes. But there is belief in the wider industry that U.S. output decline is likely to be gradual and may be mitigated through technology. For instance, Lance of ConocoPhillips predicted at CERAWeek that will be a slow decline beyond 2030 and technology can help with resource maximization. "Of course, market share for OPEC+ will start rising again as U.S. oil production starts to plateau and demand continues to rise as we think it will over time. But there's a ton of resources in the U.S. I've never been against this industry in terms of technology because you can always figure out a way to get more resource out of the rock."
