For oil and gas investors, the second half of 2025 brings strong potential. With global demand steady, U.S. production rising, and energy prices holding firm, the outlook remains strong for domestic energy investments.
Global Demand Remains Stable
Despite efforts to scale up renewables, oil and gas continue to meet most of the world’s energy needs. According to the International Energy Agency (IEA), global oil demand is still on track to grow by an average of 740,000 barrels per day in 2025, following a robust first quarter and resilient industrial and transportation activity.
Natural gas is also growing steadily, especially in the U.S. and Asia, where it’s becoming a preferred choice over coal for power generation. This steady demand helps support long-term energy investments that include oil and gas.
U.S. Production Outlook Remains Strong
The U.S. continues to lead the world in crude oil output. The Energy Information Administration (EIA) now projects U.S. crude oil production will rise from 13.2 million bpd in 2024 to about 13.4 million bpd in 2025.
This growth is fueled by productivity gains in major basins like the Permian, where advanced drilling methods and data-driven development strategies are increasing output per rig. For investors, these trends reflect a favorable production environment, especially in private partnerships focused on well-positioned domestic assets.
Prices Stay Supportive
Crude prices have held relatively steady, even amid global uncertainty. According to the EIA’s May 2025 Short-Term Energy Outlook, Brent crude oil is projected to average around $66 per barrel in 2025.
Natural gas is also trending upward. Henry Hub prices are forecast to average $4.20 per million British thermal units (MMBtu) this year, with further increases expected in 2026 as export demand rises.
These projections suggest a healthy and stable environment for cash flow–oriented investments in energy.
Policy Outlook Supports Domestic Energy
While federal energy policy has seen some shifts, U.S. lawmakers continue to recognize the importance of domestic oil and gas. Recent regulatory updates have maintained access to key drilling regions and streamlined permitting in several states, including Texas and New Mexico. There’s also continued investment in pipelines and LNG infrastructure to support both domestic delivery and export markets.
DW Energy Group works within this favorable policy landscape, guiding qualified investors toward projects that match regulatory conditions and market realities. Learn more about our approach here.
Technology Is Driving Better Returns
Advancements in drilling and data analytics continue to raise the bar in U.S. energy production. Operators are delivering higher output with fewer rigs – proof that capital efficiency is improving.
As of June 2025, Baker Hughes reports that there are around 559 active rigs in the U.S. – the lowest count since late 2021. Yet EIA data confirms that production is still on the rise. This is a direct result of smarter well placement, real-time monitoring, and enhanced recovery techniques.
For investors, that means more value from each project and greater confidence in long-term viability.
What to Watch Through Late 2025
As we move into the second half of the year, here are key indicators worth following:
- U.S. crude production – Growth here signals confidence and opportunity for direct participation.
- Henry Hub price movement – Supports natural gas-driven investments.
- Global demand – Strong consumption in Asia, Europe, and the U.S. will continue to support commodity prices.
- Domestic permitting or policy updates – These can shape project timelines and investor returns.
DW Energy Group monitors these trends closely and adjusts its approach to match evolving market conditions, helping qualified investors access targeted domestic oil and gas opportunities.
Stay Tuned and Invest with Confidence
The fundamentals for oil and gas remain strong heading into the second half of 2025. Global demand is steady, U.S. output is rising, and price conditions remain favorable for long-term development. Combined with efficient production methods and a supportive policy landscape, these conditions make this a promising time to invest in well-managed domestic energy projects.
To see how DW Energy Group helps approved investors access high-potential projects, visit our DW Approach page.
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Sources
International Energy Agency – Oil Market Report – May 2025
https://www.iea.org/reports/oil-market-report-may-2025
Reuters – US oil/gas rig count falls for 6th week to 2021 lows, Baker Hughes says
https://www.reuters.com/business/energy/us-oilgas-rig-count-falls-6th-week-2021-lows-baker-hughes-says-2025-06-06/
International Energy Agency – EIA expects lower crude oil prices and higher natural gas prices through 2026
https://www.eia.gov/pressroom/releases/press569.php
MRT- Crude prices rise after seven-week decline amid war concerns
https://www.mrt.com/business/oil/article/crude-prices-rise-russia-ukraine-20222303.php