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Released November 05, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)
"This transaction reinforces that we are on track to maximize the return on our investment in these basins and allows us to continue operating them safely and efficiently," he said in a statement on Monday.
The company made no mention of the amount of acreage it controlled in the southern U.S. shale basins. The Permian basin is the largest inland crude oil producer and second-largest gas producer, after the Appalachia basin. Combined with the nearby Eagle Ford, crude oil production is expected to average 7.67 million barrels per day (BBL/d), representing more than half of total U.S. crude oil production this year.
Optimism in the U.S. shale sector is waning amid the global economic pressures brought on by the uncertainty surrounding President Donald Trump's trade policies. While sparing energy itself, his tariffs on steel and aluminum are creating pressures in a domestic market where the manufacturing of tubular products for pipelines is scant.
In the U.S. shale patch, meanwhile, crude oil prices are unlikely to be supportive of drilling. Most shale drillers need U.S. crude oil priced at around $60 to break even. West Texas Intermediate, the U.S. benchmark for the price of oil, is expected to average $48.50 next year.
From the sidelines of last month's conference for the members of the Asia-Pacific Economic Cooperation, meanwhile, Kristalina Georgieva, the head of the International Monetary Fund, said global growth is holding up so far, though the growth at around 3.2% this year marks a slowdown from 2024.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can view the related project reports and plant profile.
More barrels were added to the equation in August with the startup of the Southwest Extension of its Argos platform, located in the Mad Dog Field, also in the Gulf of Mexico. The extension is expected to add 20,000 barrels of oil equivalent per day (BOE/D) to the platform, whose gross production capacity is listed as up to 140,000 BBL/d.
Mad Dog is believed to contain the largest ultimate technically recoverable resources of any reservoir in U.S. territorial waters.
Subscribers can learn more about Mad Dog from a detailed plant profile.
Offshore U.S. is the only place for any meaningful production growth by next year. Federal estimates put average offshore production at 1.89 million BBL/d this year, expanding to 1.96 million BBL/d by 2026.
BP on Tuesday reported adjusted net income of $2.21 billion for the third quarter, slightly above market expectations, but below year-ago levels of $2.27 billion.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Summary
BP's shale division in the United States unloaded Eagle Ford and Permian acreage to a private investment firm. Various analyses found U.S offshore will be the only meaningful source of future production growth.BP Says it's Creating Value
Ostensibly for the sake of generating capital, British energy company BP (London, England) said it was selling off a stake in U.S. shale to a private investment firm for $1.5 billion. The company's U.S. onshore oil and gas business, BPx (Denver, Colorado), will retain operatorship of the assets in the Permian and Eagle Ford basins, but let go of a non-controlling interest to private investor Sixth Street. Kyle Koontz, the chief executive officer of the BP division, said Monday that the transaction was a win for value creation."This transaction reinforces that we are on track to maximize the return on our investment in these basins and allows us to continue operating them safely and efficiently," he said in a statement on Monday.
The company made no mention of the amount of acreage it controlled in the southern U.S. shale basins. The Permian basin is the largest inland crude oil producer and second-largest gas producer, after the Appalachia basin. Combined with the nearby Eagle Ford, crude oil production is expected to average 7.67 million barrels per day (BBL/d), representing more than half of total U.S. crude oil production this year.
Inland Shale Production set to Decline
Combined natural gas production from the Permian and Eagle Ford basins, meanwhile, should average 34.5 billion cubic feet per day (Bcf/d), representing 30% of total inland production. Oil production levels are on pace for a decline by next year, however.Optimism in the U.S. shale sector is waning amid the global economic pressures brought on by the uncertainty surrounding President Donald Trump's trade policies. While sparing energy itself, his tariffs on steel and aluminum are creating pressures in a domestic market where the manufacturing of tubular products for pipelines is scant.
In the U.S. shale patch, meanwhile, crude oil prices are unlikely to be supportive of drilling. Most shale drillers need U.S. crude oil priced at around $60 to break even. West Texas Intermediate, the U.S. benchmark for the price of oil, is expected to average $48.50 next year.
From the sidelines of last month's conference for the members of the Asia-Pacific Economic Cooperation, meanwhile, Kristalina Georgieva, the head of the International Monetary Fund, said global growth is holding up so far, though the growth at around 3.2% this year marks a slowdown from 2024.
Growth Expected Offshore
Offshore may be a different story for BP, however. The company made its final investment decision (FID) for the Tiber-Guadalupe project in the Gulf of Mexico. Utilizing a floating production platform, BP is expecting net production of around 80,000 BBL/d. Six wells are anticipated for the Tiber field, with two in Guadalupe.Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can view the related project reports and plant profile.
More barrels were added to the equation in August with the startup of the Southwest Extension of its Argos platform, located in the Mad Dog Field, also in the Gulf of Mexico. The extension is expected to add 20,000 barrels of oil equivalent per day (BOE/D) to the platform, whose gross production capacity is listed as up to 140,000 BBL/d.
Mad Dog is believed to contain the largest ultimate technically recoverable resources of any reservoir in U.S. territorial waters.
Subscribers can learn more about Mad Dog from a detailed plant profile.
Offshore U.S. is the only place for any meaningful production growth by next year. Federal estimates put average offshore production at 1.89 million BBL/d this year, expanding to 1.96 million BBL/d by 2026.
BP on Tuesday reported adjusted net income of $2.21 billion for the third quarter, slightly above market expectations, but below year-ago levels of $2.27 billion.
By the Numbers
- $1.5 billion: cost for BP's Eagle Ford and Permian acreage
- $2.21 billion: adjusted third-quarter net income
- $48.50: expected WTI average for 2026
Key Takeaways
- BP stays on as the operator in Eagle Ford and Permian assets
- BP: the sale shows its ability to create value
- Total U.S. shale oil production on pace for a decline next year
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
