Independent oil and natural gas producers have been the primary force behind the US upstream sector between 2022 and 2024, accounting for over 85% of crude output and more than 90% of gas production, according to a Rystad Energy study commissioned by the American Exploration Production Council. The study showed that independents operated 95% of producing onshore wells and drilled 90% of new wells, and it also found the sector will support 3.1 million jobs this year, pay $129 billion in taxes and contribute $488 billion to gross domestic product.

US crude oil inventories fell by 3.42 million barrels last week, more than double the expected decline, according to the American Petroleum Institute. Gasoline inventories also decreased by 691,000 barrels, while distillate stocks rose by 1.9 million barrels. Despite the larger-than-anticipated drop, overall crude inventories remain up by nearly 5.3 million barrels for the year so far.

Oil prices declined Wednesday after a previous session's gain of more than 1%, driven by concerns over potential disruptions to Russian supplies following Ukrainian drone attacks. Brent crude fell by 0.6% to $68.06 per barrel, while West Texas Intermediate also dropped 0.6% to $64.15. Investors are also closely watching the Federal Reserve's meeting later today, anticipating a 25-basis-point rate cut, which could boost fuel demand.

Plains All American has encountered crude oil quality issues in pipelines connecting the Permian Basin to Corpus Christi, Texas, due to high levels of mercaptans, or sulfur compounds. Starting Oct. 1, Plains will impose a 50-cent-per-barrel fee for oil that fails to meet mercaptan specifications. Although the company is still investigating the cause, the issue could lead Gulf Coast refiners to seek alternative sources of Midland crude.

Chevron CEO Mike Wirth has emphasized the need for continued investment in oil and gas to meet global energy demand, challenging International Energy Agency predictions that oil demand will peak by the end of the decade. The company is investing $10 billion in low-carbon initiatives such as hydrogen and carbon capture, and has recently acquired Hess for $53 billion, and Wirth said Chevron is pursuing a dual strategy that balances its traditional oil and gas operations with investments in low-carbon technologies.

Per capita carbon emissions from energy consumption declined in every US state from 2005 to 2023, according to the Energy Information Administration. The EIA attributes the 30% decrease in per capita emissions to a shift from coal to natural gas and renewables for electricity generation and noted that Maryland had the largest decline at 49%, achieving the lowest per capita CO2 emissions of any state in 2023.

The Bureau of Land Management's Sept. 10 lease sale in Montana and North Dakota generated $38 million from 23 parcels covering over 7,500 acres. Interest in the auction rose alongside the adoption of longer-lateral drilling in the Bakken and Three Forks formations. The leases carry a reduced federal royalty rate of 12.5%, with proceeds split between the federal government and the states.

Woodside Energy's $17.5 billion Louisiana LNG project now has the first of three liquefaction trains more than 22% complete. The project, expected to deliver 18.1 million short tons per year starting in 2029, has a workforce of nearly 900 and could expand capacity to 30.4 million short tons per year. Woodside recently sold a 40% stake in Louisiana LNG Infrastructure to Stonepeak and is seeking more partners.

OPEC+ delegates are set to gather in Vienna Thursday and Friday to discuss how to determine maximum production capacities for the 22-member group, a contentious issue as some members such as the UAE have increased capacity while others have seen declines. The main agenda is to create a methodology for the assessments, which will serve as the basis for future production quotas, and a final decision on an approach is expected to be made by OPEC+ ministers later in the year.

The Energy Information Administration projects the Henry Hub natural gas spot price will average $3.52 per million British thermal units in 2025 and $4.28 per MMBtu in 2026, with prices expected to rise through the winter because of stronger inventory withdrawals. The EIA expects the Permian Basin to see slower production growth, while Appalachia and Haynesville are expected to increase production.

The EPA has issued a proposal outlining two main options for reallocating biofuel blending obligations that were previously waived under the Small Refinery Exemption program: reassigning either 50% or 100% of the waived volumes to larger refineries. The agency is also soliciting public comment on alternatives, including 25%, 75%, or no reallocation. The approach leaves the final decision open-ended and is expected to prolong the ongoing debate between the biofuel and refining industries.