Spotlight falls on shifts in energy policy: Drilling, oil & gas, LNG, and carbon cuts
FPS Shenandoah; Source: Navitas Petroleum

Spotlight falls on shifts in energy policy: Drilling, oil & gas, LNG, and carbon cuts

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Published Aug 1, 2025
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Within the offshore energy story, many chapters are being written, including a global wave of LNG developments, where the merger and acquisition hotspots (M&A) that are reshaping the landscape revolve around Canadian LNG projects, European regasification buildout, and corporate M&A acceleration. The limelight is firmly shifting to gas, propping up the interstate gas pipeline momentum. New oil drilling assignments are still among the key pursuits within the fossil fuel realm, as is decarbonization. Technology wars are also underway, with China, the United States, and Europe being the three main players fighting for supremacy across many sectors, including the decarbonization race.

Taking into account the limited high-value positions and rising competition across the offshore oil and gas arena, especially within the LNG segment, Wood Mackenzie points out that timing and strategic fit are critical to identify where value is shifting.

Wood Mackenzie’s Ryan Duman said: “The window of opportunity is now. Those who move early can form the right partnerships, capture the best inventory and structure the right marketing agreements with demand centres, including both LNG players and AI-linked hyperscalers.”

Given a wave of new final investment decisions, project start-ups, and pricing volatility reshaping the competitive landscape, Wood Mackenzie underlined: "With many players having aggressive growth targets, LNG M&A activity is far from done. There are a variety of positions available but many of these positions have been on the market before, and attractive positions remain limited. Finding the right, valuable positions is key."

When it comes to the interstate gas pipeline uptick, the company notes the surge in open season activity this year, with 27 proposed projects totaling over 15 billion cubic feet per day in capacity, as federal reforms fuel growth amid regional focus shifts. WoodMac is adamant that federal policy is enabling investment, but regional politics will determine project viability.

Commenting on the changes that are curbing regulatory uncertainty, the company underlined: "This uptick in activity corresponds with a series of recent federal permitting reforms aimed at streamlining the approval process. The One Big Beautiful Bill Act established fixed timelines for environmental reviews, setting a 180-day limit for environmental assessments and a one-year limit for full environmental impact statements. The Federal Energy Regulatory Commission (FERC) also increased the cost threshold for prior notice filings, while narrowed review scopes under the National Environmental Policy Act (NEPA) are expected to reduce litigation risks."

The firm’s annual outlook tracks 260 energy transition technologies across six metrics: technology maturity, pace of change, carbon abatement cost, carbon offset potential, policy support and dependency, revealing global competition and shifting priorities, as technology supremacy has become a geopolitical race, with strategic investment and policy alignment set to determine leadership in the energy transition.

"Cumulative global investment requirements to 2050 range from US$72 trillion in a delayed transition scenario to US$117 trillion under net zero pathway. Capital expenditure requirements also vary significantly across regions. China and Europe show the lowest gaps in investments, at 44% and 43% respectively, to reach net zero from the base case. The US requires an 83% increase, as policy headwinds hold back investments," outlined WoodMac.

While the company has identified shifts compared to last year, primarily due to the changes in the U.S. policy toward clean energy pursuits, such as offshore wind, artificial intelligence and data center infrastructure, are enabling nuclear and geothermal energy to secure the limelight as long-duration energy storage and grid infrastructure remain at the top of decarbonization moves.

The firm elaborated: "In the longer term, we project global oil demand to hit a plateau in the early 2030s. We see US production levelling off before then. And if crude prices do drop significantly next year, with West Texas Intermediate remaining below US$60 a barrel for a sustained period, then we would expect US oil production from the Lower 48 states to fall even faster than our base case.

"For gas, the outlook is very different. Two factors are driving US demand higher: increased gas-fired power generation and a surge in LNG exports. Wood Mackenzie is forecasting that North America’s domestic gas demand plus exports will rise by about 33% over the next 10 years, from about 1.26 trillion cubic metres (tcm) in 2025 to about 1.67 tcm in 2035."

According to Wood Mackenzie, China is running the show within the solar, wind, and energy storage domains as supply chain dominance gives the Asian country leverage in the global clean power generation, where the U.S. and Europe lag, even though they are stepping up support for nuclear, geothermal, and carbon capture, utilisation, and storage.

"Solar scores have increased, despite policy headwinds in the US. Offshore wind has slipped down the leaderboard, as the sector is plagued by project delays and cancellations, heavily impacted by policy uncertainty in the US and high costs globally. And CCUS has entered a defining period, as major industrial clusters reach final investment decisions," underscored WoodMac.

🌊 𝐑𝐢𝐠 𝐥𝐨𝐠𝐬 𝐢𝐧 𝐨𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐝𝐫𝐢𝐥𝐥𝐢𝐧𝐠 𝐝𝐢𝐚𝐫𝐲 🚢

◈ Shelf Drilling has won a new deal in UK waters and an extension offshore Egypt for two rigs.

◈ BW Energy has booked Northern Ocean Ltd.'s rig, which is managed by Odfjell Drilling, for its upcoming drilling assignment offshore Namibia.

◈ Arabian Drilling has obtained a new deal in the Gulf Cooperation Council (GCC).

◈ Noble Corporation is pooling resources with Kongsberg Maritime to forge advanced marine technologies for the offshore drilling arena.

◈ Aker BP ASA has given more work in Norwegian waters to Saipem's rig.

◈ Rhino Resources Ltd, NAMCOR NAMIBIA, Azule Energy and Korres Investments have begun drilling a well in Namibia’s Orange Basin with Northern Ocean Ltd.'s rig, which is managed by Odfjell Drilling.

◈ OKEA ASA is preparing for the arrival of an Odfjell Drilling-managed rig at its North Sea tie-back project, ahead of drilling work slated for next week.

🛢️𝐎𝐢𝐥 & 𝐠𝐚𝐬 𝐬𝐭𝐨𝐫𝐢𝐞𝐬 𝐢𝐧 𝐠𝐥𝐨𝐛𝐚𝐥 𝐨𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐞𝐧𝐞𝐫𝐠𝐲 𝐛𝐨𝐨𝐤𝐬⛽

◈ Naftogaz of Ukraine has struck a deal to buy gas from State Oil Company of the Republic of Azerbaijan (SOCAR).

◈ JAPEX Norge, a Norwegian subsidiary of Japan Petroleum Exploration Co.,Ltd (JAPEX), has decided to exchange its Northern North Sea oil and gas assets for Aker BP ASA's partial interests in two field developments.

◈ Beacon Offshore Energy has kicked off oil and gas production from a deepwater project producing through a floating production system (FPS) in the Gulf of America, formerly the U.S. Gulf of Mexico.

◈ Yinson Production, a subsidiary of Yinson, has an assignment for a newbuild FSO unit which will work the Block B gas field offshore Vietnam.

◈ Woodside Energy is transferring the operatorship of Australian assets in Bass Strait to ExxonMobil.

◈ IPB Petroleum is on the hunt for partners to put funding in place for upcoming drilling and oil and gas development operations in the Browse Basin offshore Western Australia.

◈ China National Offshore Oil Corp. has fired up a gas project offshore China.

◈ Weatherford has been hired on a drilling services assignment for Woodside Energy's project offshore Mexico.

◈ Tullow Oil has said goodbye to its assets in Gabon.

◈ bp, Reliance Industries Limited, and Oil and Natural Gas Corporation Limited (ONGC) have teamed up to explore the oil and gas potential of an offshore block in India.

◈ Serica Energy plc has run into hydrocarbon production stabilization delays at its asset in the North Sea, which uses Dana Petroleum Limited's FPSO.

◈ NEO NEXT Energy has been brought to life by a merger between repsol's UK business and NEO Energy.

◈ A platform jacket for Shell's gas project offshore Australia has left McDermott International, Ltd's yard.

◈ Baker Hughes has decided to acquire Chart Industries, Inc. to diversify its capabilities across various markets, securing further growth within gas, data centers, and decarbonization realms.

◈ Azule Energy - a joint venture between bp and Eni- has begun oil production with Yinson Production's FPSO, which is deployed at its project offshore Angola.

◈ Energean and INA Grupa have decided to move forward with the development of a gas field off the coast of Croatia.

◈ OceanSTAR Elite Group has secured a job for an FSO, destined to be deployed at a field in Vietnam.

◈ With one platform now online, the U.S. Interior Department expects the restart of oil production from two more platforms offshore California by the end of 2025. However, environmental groups are not happy with the resumption of oil production. Recently, a federal court allowed five groups to join a legal battle against Sable Offshore Corp. and ExxonMobil.

◈ EnerMech has secured more time on bp's platforms offshore Trinidad and Tobago.

◈ Hunting has provided certain parts for an FPSO destined for ExxonMobil's field offshore Guyana.

◈ bp and Eni have inked agreements to search for oil and gas in Egypt's Mediterranean Sea.

⚙️ 𝐋𝐍𝐆 𝐜𝐡𝐚𝐩𝐭𝐞𝐫𝐬 𝐢𝐧 𝐠𝐥𝐨𝐛𝐚𝐥 𝐞𝐧𝐞𝐫𝐠𝐲 𝐭𝐨𝐦𝐞 📊

◈ Eni has picked six new vessels from BOURBON for activities at its fields offshore Congo.

◈ NAKILAT has teamed up with Export-Import Bank of Korea (KEXIM) to secure the first financing package for 25 conventional LNG vessels getting built in Korea.

◈ Venture Global LNG has sanctioned and secured financing for the first phase of its LNG export project in Louisiana.

◈ Knutsen Group has received the second out of ten LNG carriers, which are part of QatarEnergy's historic fleet expansion program.

◈ Worley has received the all-clear to proceed with the full scope of work at Venture Global LNG's export project in Louisiana.

◈ Adriatic LNG has set its cap on enlarging its regasification capacity.

◈ Tourmaline Oil Corp has inked a long-term LNG supply deal with Uniper.

◈ Sempra Infrastructure, a subsidiary of Sempra, has secured an LNG offtake deal with JERA Co., Inc.

◈ Van Oord has started dredging work to get the site ready for Poland’s FSRU that will be part of GAZ-SYSTEM's LNG terminal in the Gulf of Gdańsk.

◈ A joint venture between Fluor Corporation and JGC has secured work on a proposed expansion of an LNG facility in Canada's British Columbia. 

🍃𝐄𝐧𝐞𝐫𝐠𝐲 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧 𝐩𝐚𝐠𝐞𝐬 𝐢𝐧 𝐧𝐞𝐭 𝐳𝐞𝐫𝐨 𝐭𝐚𝐥𝐞𝐬 ☀️

◈ North Sea Transition Authority has fined Chrysaor, part of Harbour Energy, £150,000 ($200,269.5) for venting breaches at an offshore gas platform in the UK sector of the North Sea.

◈ The new EU-U.S. trade deal has stirred controversy, with those in favor painting it as a cornerstone of Europe's energy security, while opponents portray the arrangement as a danger to the region's transition to clean energy. This is hammered home by the European Environmental Bureau, which warned about the consequences of a €700 billion pledge to secure U.S. oil, gas, and nuclear energy.

◈ Asia Natural Gas & Energy Association (ANGEA) believes that Australia’s domestic carbon capture and storage industry can assist Asia Pacific in achieving its decarbonization aspirations.

◈ Oxford Flow has begun a pilot of its valve technology at ADNOC Group's oil and gas assets to show the solution's benefits in eliminating fugitive emissions.

📰For more recent news, check out these headlines and visit our website

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Kind Regards,

𝑴𝒆𝒍𝒊𝒔𝒂 Č𝒂𝒗č𝒊ć

Senior Editor at Offshore Energy Today, now known as Offshore Energy's Fossil Energy market

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📍🌊 𝗖𝗼𝗺𝗲 𝘁𝗼 𝘁𝗵𝗲 𝗢𝗳𝗳𝘀𝗵𝗼𝗿𝗲 𝗘𝗻𝗲𝗿𝗴𝘆 𝗘𝘅𝗵𝗶𝗯𝗶𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗖𝗼𝗻𝗳𝗲𝗿𝗲𝗻𝗰𝗲 𝟮𝟬𝟮𝟱 𝗼𝗻 𝗡𝗼𝘃𝗲𝗺𝗯𝗲𝗿 𝟮𝟱 & 𝟮𝟲 𝗮𝗻𝗱 𝗱𝗶𝘃𝗲 𝗶𝗻𝘁𝗼 𝘁𝗵𝗲 𝗼𝗳𝗳𝘀𝗵𝗼𝗿𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆'𝘀 𝗱𝗲𝗽𝘁𝗵𝘀 𝘄𝗶𝘁𝗵 𝘂𝘀, 𝗮𝘀 𝘄𝗲 𝗲𝘅𝗽𝗹𝗼𝗿𝗲 𝗲𝘃𝗼𝗹𝘃𝗶𝗻𝗴 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝗶𝗲𝘀 𝗮𝗻𝗱 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗲𝗻𝗲𝗿𝗴𝘆 𝗮𝗻𝗱 𝗺𝗮𝗿𝗶𝘁𝗶𝗺𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗲𝘀, 𝗱𝗶𝘀𝗰𝗼𝘃𝗲𝗿𝗶𝗻𝗴 𝗮𝗹𝗹 𝘁𝗵𝗲 𝗿𝗼𝗮𝗱𝘀 𝘁𝗵𝗮𝘁 𝗹𝗲𝗮𝗱 𝘁𝗼 𝗲𝗻𝗲𝗿𝗴𝘆 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗮𝗻𝗱 𝘁𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝘁𝗼 𝗮 𝗺𝗼𝗿𝗲 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗳𝘂𝘁𝘂𝗿𝗲!

⚓⚡ 𝗪𝗲 𝗹𝗼𝗼𝗸 𝗳𝗼𝗿𝘄𝗮𝗿𝗱 𝘁𝗼 𝘀𝗲𝗲𝗶𝗻𝗴 𝘆𝗼𝘂 𝗮𝘁 #𝗢𝗘𝗘𝗖𝟮𝟬𝟮𝟱, 𝘁𝗿𝗮𝗰𝗶𝗻𝗴 𝘁𝗵𝗲 𝗲𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝗽𝗮𝘁𝘁𝗲𝗿𝗻𝘀 𝘁𝗵𝗮𝘁 𝗮𝗿𝗲 𝗺𝗲𝗹𝗱𝗶𝗻𝗴 𝘁𝗼 𝘀𝗵𝗮𝗽𝗲 𝘁𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗲𝗻𝗲𝗿𝗴𝘆 𝗳𝗼𝗿 𝗮 𝗺𝗼𝗿𝗲 𝗲𝗻𝗲𝗿𝗴𝘆-𝘀𝗲𝗰𝘂𝗿𝗲, 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝘁, 𝗮𝗻𝗱 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝘁𝗼𝗺𝗼𝗿𝗿𝗼𝘄 𝗮𝗻𝗱 𝗯𝗲𝘆𝗼𝗻𝗱!

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