Drilling Oil & Gas Wells NAICS 213111

Jun 23, 2026 - IEA Forecasts Decline in Consumption, Surge in Supply

• The International Energy Agency said a proposed US-Iran peace agreement could lead to a significant global oil oversupply in 2027 as disrupted production and exports recover, The Wall Street Journal reports. The agency forecasts oil supply could increase by about 8 million barrels per day next year, far exceeding expected demand growth of 2 million barrels per day. While current supply disruptions and low inventories continue to support prices in the near term, the expected return of Iranian exports and normalization of shipping through the Strait of Hormuz could weaken market fundamentals. For oil and gas drilling firms, the prospect of lower oil prices resulting from excess supply could reduce exploration and drilling activity, particularly in higher-cost production regions. Firms may face pressure on capital spending, project development, and rig utilization if oil prices decline and producers become more cautious about expanding production.
• President Trump has unveiled a draft plan to dramatically expand offshore oil and gas drilling, proposing as many as 34 lease sales across 21 regions, including California, the Gulf of Mexico, Alaska, and the Arctic, S&P Global reported in November. Trump’s reversal of prior restrictions could unlock billions of barrels of federal offshore reserves, boosting long-term production capacity. Oil industry groups broadly praised the move, framing it as essential to restoring US energy dominance, lowering costs, and creating jobs. For producers, the plan offers greater access to high-potential, previously off-limits areas, raising the prospect of higher output and capital investment. However, the administration’s move to drill in environmentally-sensitive areas is expected to face strong political pushback from environmentalists and coastal states. California Attorney General Rob Bonta said his office fully opposes the plan.

• The Trump administration has moved to open 23 million acres of Alaskan Wilderness to drilling by repealing protections imposed by the Biden administration, The New York Times reports. Interior Secretary Doug Burgum said the previous administration exceeded its authority when it banned oil and gas drilling in the area known as the National Petroleum Reserve-Alaska. The petroleum reserve, established over a century ago as an energy warehouse for the US Navy, is estimated to contain more than 8 billion barrels of recoverable oil. The Bureau of Land Management has released a draft environmental assessment to propose reopening up to 82% of the reserve to oil and gas leasing and exploration and development. The proposal comes partly in response to Trump’s January executive order, “Unleashing Alaska’s Extraordinary Resource Potential," the Interior statement said. The area is home to ConocoPhillips’ Willow oil field, approved under Biden.
• Producer prices for drilling oil and gas wells services firms fell 1.5% in May compared to a year ago, after dipping 0.4% in the previous May-versus-May annual comparison, according to the latest US Bureau of Labor Statistics data. Despite the recent decline, industry producer prices remain near historical highs. Employment by the industry grew 5.2% year over year in April, while the average industry wage for support activities for oil and gas operations rose 3.5% over the same period to a new high of $37.76 per hour, BLS data show. In May, the price for one barrel of West Texas Intermediate (WTI) crude oil averaged $102.13, up from $61.81 per barrel in May 2025. Historically, rising crude prices have encouraged drilling activity.