Furthermore, the recently assumed president said that he will seek to fill the world with American oilwith a reactivation of the unconventional activity of hydrocarbons in the Permian Basin and the release of crude oil reserves, with the aim of combating inflation and lowering prices.
“The inflation crisis was caused by excessive spending and rising energy prices, and that is why I am declaring an energy emergency and we are going to continue with our ‘explore baby explore’ policy.”he stated from the Capitol Rotunda, where he gathered more than 200 people indoors due to the polar cold that hits Washington.
Trump said that a “golden” and “restoration” stage is beginning for his country. “The US will be a manufacturing country and we have the most oil and gas that any other country on Earth has, and we are going to use it,” he emphasized.
The president announced that hydrocarbon prices “will go down,” and he will use “strategic reserves to export them as much as possible to all countries in the world.”
“We will be a rich country again”Trump predicted, adding that “that liquid gold that we have in our soil is going to help us,” because “we are going to end this new Green Deal, with the restoration of the mandate for the energy and the automotive industry, to save jobs in that sector.”
As he told the Americans, from now on “You will be able to buy the vehicles you want because we are going to build cars in the United States again, as was never done until a few years ago.”
What production levels and prices are expected for 2025 for oil and gas
As revealed days ago the Energy Information Administration (EIA), the production of oil of the United States is about to set a major record this year.
The agency said it now expects U.S. crude production to average 13.55 million barrels per day (bpd) in 2025, above its previous estimate of 13.52 million bpd.
But in addition, the EIA published its first monthly STEO report (Short Term Economic Outlook) which includes for the first time the forecasts for the year 2026, which include price forecasts. In this framework, the Agency revised its oil estimates downwards: expects Brent oil to average US$74 per barrel by 2025 (-8% compared to 2024) and about US$66 in 2026 (-11% compared to 2025). If these forecasts come true, Brent would lose the lower band of the side in which we have been for two years.
The forecasts are based on excess supply, which would allow oil inventories to grow from the second quarter of 2052.
Oil dollars
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In that regard, the EIA anticipated that the global oil production will grow 1.8 million barrels per day (Mbd) in 2025 and 1.5 Mbd million b/d in 2026, while the global oil consumption grow 1.3 Mbd in 2025 and 1.1 Mbd in 2026, led by non-OECD countries, especially India.
Regarding gas, the EIA also carried out reviews of the price of natural gas in the United States, but upwards: The Agency expects it to average US$3.10 MMBtu in 2025 (with a range between 2.50 and 3.90) and to average US$4 MMBtu in 2026 (with a range between 3.50 and 4.40).. If these forecasts are met, US Natural Gas would leave behind the minimum of the century and would tend to consolidate above the maximum of January 2024, located at US$3,449 MMBtu.
The EIA further estimated that the natural gas demand will grow at a stronger rate than supply in 2025, reducing high inventory levels, to balance in 2026.
In 2025 the natural gas supply would increase by 1.4 Bcf/d, while demand would rise at a higher rate, by 3.2 Bcf/d, mainly due to exports.
The increase in residential demand is linked to a colder winter than that of 2024, while an increase in industrial demand is also expected, although it will be softened by the rise in prices and the use of renewables.
Source: Ambito
