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Asian imports of US liquified natural gas are projected to reach 3.98 million short tons in October, the second-highest on record, according to Kpler, as Japan and South Korea ramp up purchases under trade deals with the US. However, their combined buying power is valued at around $22 billion annually, far short of President Donald Trump's stated targets, and further increases the risk of upending global trade flows and pricing. Still, Trump's campaign for long-term energy deals is pushing US LNG projects toward final investment decisions, with nearly 17.58 million short tons a year in binding contracts signed so far this year, up from 11.57 million short tons a year in all of 2024.
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Industry News
Strong Asian demand and West Texas Intermediate's discount to Middle Eastern grades are fueling a rebound in US crude exports, which are on track to exceed 4 million barrels per day in August and September, the most since the beginning of the year. After a summer of heavy refinery runs, maintenance downtime and efforts to avoid Texas' year-end ad valorem tax are expected to keep shipments to Asia firm through October.
Vantage Data Centers will invest $25 billion in a 1.4-gigawatt campus in Shackelford County, Texas, featuring 10 data centers designed for AI workloads, with the first building set to come online in the second half of 2026. The site's proximity to Permian Basin natural gas and pipelines, along with access to skilled labor and supportive local governments, provides an operational advantage, according to East Daley Analytics.
Nabors Industries has sold its Quail Tools subsidiary, which supplies downhole tubulars to the oil and gas industry, to Superior Energy Services for $600 million. The deal also designates Superior as Nabors' preferred provider of rental drill pipe and related equipment.
Researchers at Texas A&M University have identified power outage hot spots across the US that are more severe than previously thought, using AI to analyze a decade of outage data. The study found a 20% increase in outage frequency and duration since 2019, mainly due to extreme weather events and an aging power grid. Ali Mostafavi, a civil and environmental engineering professor, discusses the study, highlighting the urgent need for significant investment in grid resilience.
Black Hills and NorthWestern Energy have agreed to merge in an all-stock deal to form a $15.4 billion regulated electric and natural gas utility. The merger aims to enhance grid infrastructure and meet rising power demand driven by data centers and increased residential and commercial usage. The combined company, which will be based in Rapid City, S.D., will operate in eight states and serve 2.1 million customers.
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Technology & Innovation
Researchers at Oak Ridge National Laboratory's High Flux Isotope Reactor are using neutron imaging to study how carbon dioxide interacts with oil trapped in shale rock and visualize fluid movement at the nanoscale. The work focuses on the CO2 huff-n-puff enhanced oil recovery method, in which CO2 is injected into tight reservoirs to push out crude that conventional drilling cannot reach. "Understanding how the size of the nanopores affects the flow of CO2 gives us a better idea about how the flow displaces the oil and therefore increases the recovery rate," said Colorado School of Mines researcher Dina Hegazy.
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Free eBooks and Resources
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Policy Watch
President Donald Trump has expanded 50% steel and aluminum tariffs to include 407 additional product categories. The new tariffs, effective immediately, cover items such as fire extinguishers, machinery and specialty chemicals. The expansion is expected to affect at least $320 billion of imports, up from $190 billion.
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API Update
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