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Released July 22, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land,
Texas)--Data on upstream activity show a divergence in North America between gas and oil operations, with the increase in liquefied natural gas (LNG) activity stimulating much of the activity.
Oilfield services firm Baker Hughes (Houston, Texas) reported there were 117 rigs in natural gas and 422 in crude oil across North America during the seven-day period ending July 18. That's unchanged for crude oil, but 8% higher week-over-week for natural gas rigs.
During the same period, West Texas Intermediate, the U.S. benchmark for the price of crude oil, fell 0.7% to average $66 per barrel. Henry Hub, the U.S. benchmark for the price of natural gas, increased 6.8% to reach $3.65 per million British thermal units (MMBtu).
Its earnings season, too, and the divergence is apparent in corporate returns. Supported by the gas sector, midstream-focused Kinder Morgan Incorporated (Houston) last week reported net income over the three-month period ending June 30 of $715 million, up 24% from the same period last year.
The company said it expected total global demand for natural gas to increase 20% from now through 2030, supported in large part by U.S. natural gas.
"We are truly in an age of American global energy leadership," said Richard D. Kinder, the executive chairman of Kinder Morgan.
Supported by its vast shale deposits, the U.S. is the world leader in natural gas production and exports of LNG. Data from IIR Energy showed inland U.S. natural gas production averaged 107 billion cubic feet per day (Bcf/d) last week, slightly below the expected average for the year.
The total amount of feed gas delivered to LNG exports terminal averaged about 15.5 Bcf/d last week. Feed gas volumes were down somewhat because there were no deliveries to the Elba Island facility, owned by Southern LNG Incorporated, a subsidiary of Kinder Morgan.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can click here for the a profile of Elba Island.
Despite that, feed gas volumes were above the average of 15 Bcf/d in LNG exports expected by the U.S. Department of Energy. The U.S. remains a net importer of natural gas from Canada, to the tune of about 6.2 Bcf/d. Rich in its own reserves, Canada recently saw the debut delivery from an export terminal in British Columbia operated by LNG Canada.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can click here for the a profile of the LNG Canada facility.
Crude oil is another story. Upstream activity in North America for natural gas is up 10% from year-ago levels, but work in the oil patch is down 12% from the same time last year. Henry Hub is up from prices of about $2/MMBtu a year ago, while WTI is down from prices in the $80 range last year.
Rig levels in the Permian Basin, the largest inland oil producing basin and the second-largest gas producer, are down about 13% from year-ago levels.
Operators are doing more with less upstream, and rig counts aren't as much of a market factor as they were 10 years ago, but they still serve as a barometer for the sector's mood.
Though the U.S. will remain a leading oil producer, Energy Department data show a slight decline is expected in year-over-year crude oil production. LNG deliveries, for their part, are on pace to increase from 15 Bcf/d this year to 16 Bcf/d in 2026.
Successive surveys of energy sector representatives by the Federal Reserve Bank of Dallas found oil prices are creating headwinds for the energy sector. The Energy Department expects the average price for WTI to fall below $60 per barrel next year as protectionist trade policies from the U.S., the world's largest economy, take a toll on the global market. That's well below the price as which many drillers can make a profit.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
Oilfield services firm Baker Hughes (Houston, Texas) reported there were 117 rigs in natural gas and 422 in crude oil across North America during the seven-day period ending July 18. That's unchanged for crude oil, but 8% higher week-over-week for natural gas rigs.
During the same period, West Texas Intermediate, the U.S. benchmark for the price of crude oil, fell 0.7% to average $66 per barrel. Henry Hub, the U.S. benchmark for the price of natural gas, increased 6.8% to reach $3.65 per million British thermal units (MMBtu).
Its earnings season, too, and the divergence is apparent in corporate returns. Supported by the gas sector, midstream-focused Kinder Morgan Incorporated (Houston) last week reported net income over the three-month period ending June 30 of $715 million, up 24% from the same period last year.
The company said it expected total global demand for natural gas to increase 20% from now through 2030, supported in large part by U.S. natural gas.
"We are truly in an age of American global energy leadership," said Richard D. Kinder, the executive chairman of Kinder Morgan.
Supported by its vast shale deposits, the U.S. is the world leader in natural gas production and exports of LNG. Data from IIR Energy showed inland U.S. natural gas production averaged 107 billion cubic feet per day (Bcf/d) last week, slightly below the expected average for the year.
The total amount of feed gas delivered to LNG exports terminal averaged about 15.5 Bcf/d last week. Feed gas volumes were down somewhat because there were no deliveries to the Elba Island facility, owned by Southern LNG Incorporated, a subsidiary of Kinder Morgan.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can click here for the a profile of Elba Island.
Despite that, feed gas volumes were above the average of 15 Bcf/d in LNG exports expected by the U.S. Department of Energy. The U.S. remains a net importer of natural gas from Canada, to the tune of about 6.2 Bcf/d. Rich in its own reserves, Canada recently saw the debut delivery from an export terminal in British Columbia operated by LNG Canada.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can click here for the a profile of the LNG Canada facility.
Crude oil is another story. Upstream activity in North America for natural gas is up 10% from year-ago levels, but work in the oil patch is down 12% from the same time last year. Henry Hub is up from prices of about $2/MMBtu a year ago, while WTI is down from prices in the $80 range last year.
Rig levels in the Permian Basin, the largest inland oil producing basin and the second-largest gas producer, are down about 13% from year-ago levels.
Operators are doing more with less upstream, and rig counts aren't as much of a market factor as they were 10 years ago, but they still serve as a barometer for the sector's mood.
Though the U.S. will remain a leading oil producer, Energy Department data show a slight decline is expected in year-over-year crude oil production. LNG deliveries, for their part, are on pace to increase from 15 Bcf/d this year to 16 Bcf/d in 2026.
Successive surveys of energy sector representatives by the Federal Reserve Bank of Dallas found oil prices are creating headwinds for the energy sector. The Energy Department expects the average price for WTI to fall below $60 per barrel next year as protectionist trade policies from the U.S., the world's largest economy, take a toll on the global market. That's well below the price as which many drillers can make a profit.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
