World Sets New Record for Oil Use

Newsletter No. 125

Good afternoon,

Before we get into this week’s oil and gas news, I want to take a moment to acknowledge the ongoing recovery in the Texas Hill Country following the recent floods. Many people are still dealing with serious loss and disruption, and support is still very much needed.

If you’d like to help—by donating, volunteering, or learning more about what’s happening—visit kerrtogether.com. It’s a trusted local resource with up-to-date information and ways to get involved.

Now, let’s take a look at what’s happening this week in the oil and gas industry, along with a few important updates from King.

This Week's Headlines

• Upcoming Educational Webinar: Tax Benefits and One Big, Beautiful Bill
• TX Flood Recovery Update + This Week’s Top O&G News, Market Trends 
• India Looks Beyond Russia as Cheap Oil Deals Shrink

• San Juan Oil and Gas Drilling Is Booming Again

• World Sets New Record for Oil Use as Demand Grows in Developing Countries
• How America’s Energy Use Has Changed Since 1776
• Trump and Big Investors Pour $90B into Pennsylvania for AI and Energy Projects

   

Happening at King

Texas Flood Recovery Update + This Week’s Top O&G News, Market Trends
In the most recent episode of The Jay Young Show, my co-host Jordan Soto and I cover the top stories impacting oil and gas: a call for $18.2 trillion in global energy investment from OPEC, Indonesia’s $10B proposal to buy U.S. oil, and how AI is changing the way we drill. Plus, an update on the Texas Hill Country flooding and how you can still support recovery efforts. Watch the full episode below. You can also subscribe to the channel on YouTube, Rumble, or your favorite podcast platform.

Oil and Gas News

India Looks Beyond Russia as Cheap Oil Deals Shrink
India has been buying a lot of cheap oil from Russia since the war in Ukraine started, but those deals aren’t as sweet anymore. The discount on Russian oil has dropped to just a couple of dollars per barrel, the smallest since the war began. Supplies are also tighter, and new sanctions from the U.S. and Europe could make things harder. India is starting to explore other oil sources like Murban and WTI, and it’s quietly building up emergency reserves just in case. The days of easy savings on Russian oil may be coming to an end.

Source: Kpler, Business Standard, Economic Times, The Week – Data on India’s oil imports and supplier shares, January–June 2025

San Juan Oil and Gas Drilling Is Booming Again
Drilling in the San Juan Basin (on the border of New Mexico and Colorado) is the busiest it’s been in 10 years—thanks to higher natural gas prices and new investment deals.

Energy companies are drilling deeper wells in a rock layer called the Mancos Shale, which is producing more gas than older formations. Experts now believe gas production in the area could grow by 500 million cubic feet per day by 2030.

Big money is flowing in too: Mach Natural Resources just spent $787 million to buy 570,000 acres and a large gas-producing operation. Other companies like LOGOS, DJR, and Enduring are also active, with more wells planned.

With more gas coming out of the ground, the area may soon need better pipeline systems to move it all. If you're watching for where U.S. energy growth is happening—San Juan is back on the map.

World Sets New Record for Oil Use as Demand Grows in Developing Countries
The world used more oil in 2024 than ever before—almost 102 million barrels a day. Most of that growth came from fast-growing countries like India. The U.S. still uses the most oil overall, but its demand dropped a little.

The U.S. is also the top oil producer, though its growth is slowing. Russia and Saudi Arabia are producing less, while a small country, Guyana, is suddenly pumping a lot more and could soon be a major player.

Even with all the talk about clean energy, oil is still a huge part of the global economy. Experts say if demand keeps rising and we don’t invest more in oil supplies, there could be problems down the road.

How America’s Energy Use Has Changed Since 1776
Back in 1776, Americans mostly used wood for heat and cooking. Then coal took over in the late 1800s, powering homes, trains, and factories. By 1950, oil (petroleum) became our main energy source—and it still is today, used for gasoline, jet fuel, and more.

Natural gas, once thought of as useless waste, is now the second most-used energy source, mainly for heating and making electricity. Coal use has dropped so much that, in 2024, nuclear energy use passed coal for the first time ever.
Today, most U.S. energy (82%) still comes from fossil fuels.