A US government shutdown and an OPEC+ decision to increase output have placed downward pressure on oil prices.
Despite this, US oil and natural gas production hit record highs in July 2025.
In the Permian Basin, midstream infrastructure is expanding and technology adoption is growing, including the reuse of produced water for data centers.
US natural gas inventories are expected to end the injection season above the five-year average.
The US Energy Information Administration (EIA) forecasts significant global oil inventory builds from the third quarter of 2025 through the first quarter of 2026, which is expected to drive prices lower.
Record Output: The EIA reported that US crude oil production reached a new monthly high of 13.64 million bpd in July 2025, driven by record production in Texas and New Mexico. Gross natural gas production in the Lower 48 states also hit a record in July.
Permian Basin:
Midstream company Targa Resources is investing heavily in new infrastructure, including an NGL pipeline and gas processing plants, to accommodate rising production.
South Texas: Magnolia Oil & Gas, an operator in the Eagle Ford Shale and Austin Chalk formations, scheduled a conference call to discuss its third-quarter 2025 results.Wind River Basin: TGS announced a new stratigraphic and petrophysical dataset for the Wind River Basin in Wyoming, part of its expansion in the Rocky Mountains.Increased Exports: US LNG exports continued to rise, with July 2025 marking the highest monthly rate since tracking began in 1997. New LNG facilities, such as Plaquemines LNG Phase 2, are expected to come online by the end of 2025.
Note by Alessandro Bazzoni