US Mining and Energy Extraction Sector NAICS 21

Jan 14, 2026 - Pros and Cons of Cheap Gas

• Cheap gasoline is good for consumers, but it comes at a cost to oil-producing regions such as West Texas and North Dakota, which are already suffering from layoffs, slowing growth, and reduced capital spending, The Wall Street Journal reports. Crude prices have fallen to the mid‑$50s per barrel, dangerously close to break‑even levels for many producers. Additional supply from Venezuela, supported by US investment and the release of up to 50 million barrels into global markets, would further depress prices and intensify pressure on domestic drillers. The Federal Reserve notes that low price expectations are keeping a lid on drilling investment in Texas. Smaller independent producers are especially vulnerable: many must pause projects or halt exploration when prices fall below key thresholds. Continued price declines would ripple through the supply chain, hurting drilling contractors, fracking service firms, and equipment providers.
• Surging demand from data centers, AI infrastructure, and electric vehicles is tightening the global copper supply, while mine disruptions in Indonesia and Chile highlight growing production risks, causing prices to soar, Reuters reports. Copper prices above $13,000 per metric ton in January signal both opportunity and pressure for the US mining industry. Analysts note that many existing mines worldwide are operating beyond capacity, underscoring the need for new US copper projects. But developing the next generation of mines requires prices at or above current record levels to justify investment, according to Reuters. Geopolitical instability amid broader concerns about critical‑mineral security, adds urgency to securing domestic and allied supply chains. Meanwhile, potential tariffs on US copper imports have temporarily inflated inventories but not solving long‑term shortages. For US miners, the environment points to rising strategic importance, stronger incentives for exploration, and heightened competition for reliable copper sources.

• In November, the US Energy Information Administration (EIA) forecast crude oil produced from Alaska will reach 477,000 barrels per day (b/d) in 2026, the most since 2018. Moreover, after decades of decline, the agency said it expects a 13% (55,000 b/d) increase in Alaska oil production, the largest annual increase since the 1980s. The EIA credits the recent growth to two projects on Alaska’s North Slope: ConocoPhillips’s Nuna project, which started production in December 2024 and is expected to produce 20,000 b/d at its peak; and the Pikka Phase 1 project, jointly owned by Santos and Repsol, that’s expected to begin production in early 2026 and reach peak production of 80,000 b/d by mid-2026, nearly 20% of total Alaska oil production in 2025. EIA noted that the wells from the new projects outperform most Alaskan wells.
• Demand for electricity from artificial intelligence data centers is breathing new life into US coal plants, E&E News by Politico reports. Utilities have delayed the retirement of at least 15 aging coal-fired plants to power booming data-center growth, a reversal in the long-term decline of coal. Meanwhile, the Trump administration is rolling back pollution regulations for many of these coal facilities, allowing higher emissions. For coal mining, this suggests stronger short- to medium-term demand as existing coal plants ramp up operations rather than shut down, potentially stabilizing coal prices and production. However, the policy changes also raise public health and climate risks, which could ultimately fuel legal challenges or regulatory pushback. More than 500 coal-fired power plants were retired between 2010 and 2019, according to federal data.