The oil market is facing a fresh challenge in 2025: a growing supply overhang as Non-OPEC production climbs. At the heart of this shift is the U.S., where oil output is set to hit 13.59 million barrels per day, according to the EIA.
So, where is this new supply coming from? In this issue, we break down the key U.S. basins driving production, the role of active spreads, and the tug-of-war between installed and idle HHP capacity. Plus, we’ll explore the macroeconomic forces at play and how oilfield service companies are positioning themselves in this evolving landscape.
1. MMV: Where Will U.S. Oil Production Growth Come From in 2025? – ENTERPRISE
U.S. oil production is set to hit 13.59 million barrels per day, but don’t expect an even surge across all basins. Instead, growth will be laser-focused in high-efficiency regions like the Permian, where operators are squeezing more out of every well using fewer resources. Dive into our must-read analysis to find out where the next wave of U.S. supply will originate—and whether the industry is ready to respond.
2. MST: Shifting Gears – Global Growth Holds, but Cracks Begin to Show – PREMIUM
Markets are moving, but not in one clear direction. The U.S. is still holding up, but signs of a slowdown are creeping in, with services activity slipping and stocks taking a hit. The Eurozone is seeing some life in manufacturing, but deep-rooted labor and investment issues aren’t going away. Meanwhile, China is staying steady on policy, but the real estate sector remains a drag. Our Market Sentiment Tracker digs deeper into these regions’ macro economic environment.
3. PATTERSON UTI’S PERSPECTIVE in Q4 TAKEAWAYS – PREMIUM
As Patterson-UTI (PTEN) continues to refine its strategy, the company is doubling down on natural gas-powered frac technology while high-grading its assets amidst a declining U.S. rig count. With valuation trailing peers and a market slowdown in completions, can PTEN’s pivot toward efficiency and power solutions drive long-term growth? Read on for a deep dive into PTEN’s evolving playbook.
4. ProPetro Holding: Q4 TAKE THREE – PREMIUM
ProPetro (PUMP) is making a major shift toward natural gas-fueled power generation, doubling down on its PROPWR subsidiary after securing 110 MW of power equipment—with plans to expand up to 200 MW by 2026. Despite a 14% drop in hydraulic fracturing revenues and a 17% decline in adjusted EBITDA in Q4, the company’s free cash flow surged as capex slowed. With share buybacks underway and an aggressive growth strategy in power generation, will this pivot pay off? Dive into our full analysis for the key takeaways.
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