The Future of Oil and Gas

Global Energy Demand by the Numbers

The IEA's World Energy Outlook estimates global energy demand will increase roughly 15% by 2035, driven by population growth and industrialization in India, Southeast Asia, and sub-Saharan Africa. Renewables are growing fast, but they are adding capacity on top of fossil fuels, not replacing them barrel for barrel. In 2024, the world consumed about 102 million barrels of oil per day. The IEA's Stated Policies Scenario projects demand at or above that level through 2030, with petrochemicals and aviation fuel driving much of the growth.

Natural gas tells a similar story. Global gas demand reached roughly 4.1 trillion cubic meters in 2023 and is expected to keep climbing as coal-to-gas switching accelerates in Asia. U.S. LNG export capacity is on track to nearly double by 2028, reaching over 24 billion cubic feet per day, making the U.S. the world's largest LNG exporter.

At BassEXP, we watch these numbers closely because they affect where we drill and how we plan production schedules. A well drilled today in a proven Oklahoma formation will produce for 20 to 30 years. The demand forecasts tell us those barrels will have buyers for the life of the well.

U.S. Production and Energy Security

The United States produced roughly 13.2 million barrels of crude oil per day in 2024, a record. Domestic production now exceeds domestic consumption for petroleum products when you include refined exports. That matters for energy security, and it matters for investors because U.S. policy actively supports it.

The tax code incentivizes domestic drilling through intangible drilling cost (IDC) deductions, the 15% depletion allowance, and the working-interest exception under Section 469. These are not loopholes. They were written into law specifically to keep American rigs turning and reduce dependence on foreign supply. For direct participants, IDC deductions alone can offset 65 to 85% of first-year capital in the year the money is spent.

We see the policy environment staying favorable regardless of which party holds the White House. Both sides have consistently supported domestic production when it comes to actual legislation and permitting. The wells we drill in Oklahoma benefit from a state regulatory environment that is efficient, well-established, and operator-friendly.

Technology Driving Down Costs

Horizontal drilling and hydraulic fracturing turned the U.S. into the world's top producer, and the technology keeps getting better. Lateral lengths that averaged 5,000 feet a decade ago now routinely exceed 10,000 feet, pulling more oil from each well pad at lower cost per barrel. Real-time downhole sensors, automated drill rigs, and improved completion designs mean operators recover more from every formation they target.

At BassEXP, we apply these advances to mature Oklahoma formations where the geology is already well understood. We are not chasing speculative frontier plays. We use modern technology to get better results from proven rock, which reduces risk and improves economics for our investors.

Environmental management has kept pace. Modern operators run closed-loop drilling fluid systems, use vapor recovery units on tank batteries, and follow strict produced-water disposal protocols. These are standard operating procedures, not extras. Responsible stewardship and profitable operations are the same thing when you plan to be in a basin for decades.

Natural Gas and LNG Export Growth

Natural gas produces roughly half the CO2 of coal per unit of electricity generated, which is why gas-fired power plants are replacing coal plants across the U.S. and abroad. The EIA reports that natural gas accounted for about 43% of U.S. electricity generation in 2024. International demand for U.S. LNG has surged since 2022, with new export terminals under construction along the Gulf Coast expected to add 12+ billion cubic feet per day of capacity by 2028.

For producers, that translates into a deeper, more liquid market for gas. Many of our Oklahoma wells produce both oil and associated gas. When gas export capacity grows, the price floor firms up, and that directly supports the revenue our investors receive each month.

The Energy Transition in Context

The energy transition is real, but it is slower and more complex than most headlines suggest. Renewables accounted for roughly 15% of global primary energy consumption in 2024. Even under the IEA's most aggressive Net Zero Emissions scenario, oil demand does not fall below 75 million barrels per day by 2030, and natural gas demand remains near current levels through the end of the decade. In the more realistic Stated Policies Scenario, which reflects legislation and regulations already on the books, oil demand stays above 100 million barrels per day through at least 2030.

The math is straightforward. Global energy consumption is growing faster than renewables can fill the gap. Every solar panel, wind turbine, and electric vehicle requires petroleum-based materials in its manufacturing. Aviation, shipping, petrochemicals, and heavy industry have no commercially viable alternatives to hydrocarbons at scale. The world will need oil and gas producers for decades, and the producers who operate efficiently in low-cost basins will be the last ones standing regardless of how the transition unfolds.

BassEXP takes a clear-eyed view of the transition: we plan for a world where oil and gas are needed for a long time, but we also plan wells conservatively so they pay back quickly. A well that recovers its investment within the first few years of production is a good investment whether demand stays flat, grows, or eventually declines over a multi-decade horizon.

Data Centers, AI, and the New Natural Gas Demand

One of the most significant demand drivers emerging in the mid-2020s is the explosive growth of data centers and artificial intelligence infrastructure. Training and running large AI models requires enormous amounts of electricity. A single large data center can consume 100 megawatts or more of continuous power, equivalent to the electricity demand of roughly 80,000 homes. Goldman Sachs estimates U.S. data center power demand could increase by 160% by 2030.

Natural gas is the fuel of choice for most of this new generation capacity. Gas-fired power plants can be built faster than nuclear, they run on-demand unlike solar and wind, and they are cleaner than coal. Major technology companies have publicly announced plans to secure natural gas supply for their data center operations, and utilities across the country are revising their capacity plans upward to account for AI-driven load growth.

For natural gas producers, this represents a structural increase in domestic demand that sits on top of existing LNG export growth. Oklahoma is well-positioned geographically, with extensive pipeline infrastructure connecting production to power markets across the Midwest and South. At BassEXP, many of our wells produce both oil and associated natural gas. The strengthening demand picture for gas improves the total revenue from these dual-commodity wells and supports more stable pricing over the long term.

Demand Stability and Long-Term Opportunity for Investors

For qualified investors evaluating where to allocate capital, the combined demand picture tells a compelling story. Oil demand is supported by transportation, petrochemicals, and industrial use that renewable alternatives cannot yet displace. Natural gas demand is being pulled higher by both the global coal-to-gas transition and the rapid expansion of domestic power needs driven by AI and electrification. LNG exports add a third layer of demand that connects U.S. producers to global pricing.

This multi-layered demand base creates more stability than oil and gas markets have historically offered. Producers in proven basins with low operating costs are not dependent on any single demand driver. If EV adoption slows petrochemical demand growth, gas demand from data centers offsets it. If LNG exports face geopolitical headwinds, domestic industrial demand fills the gap. Diversified demand means less volatility for investors who hold producing assets.

None of this guarantees any particular price level or return. Commodity markets are cyclical, and there will always be periods of lower prices. But the structural floor under demand is higher today than it was five years ago, and the policy environment in the U.S. continues to support domestic production. For investors who want real assets that produce monthly cash flow and meaningful tax benefits, the setup is as strong as it has been in years.

What This Means for Your Investment

The long-term fundamentals for oil and gas remain strong: persistent demand, favorable U.S. tax treatment, improving technology, and expanding export markets. That combination creates a solid environment for qualified investors who want tangible assets that generate monthly income and significant tax benefits.

At BassEXP, we see these macro trends play out at the wellhead every day. We drill development wells in de-risked Oklahoma formations, invest our own capital alongside our partners, and report every cost and production number transparently. We are not a fund. We are an operator, and we have been doing this for over 100 years.

Direct participation offers substantial tax advantages for oil and gas investors, including first-year IDC deductions and the 15% depletion allowance. View our current drilling projects to see what is available now.

Short-Term Energy Outlook Reports

Monthly analysis of EIA Short-Term Energy Outlook data and what it means for oil and gas investors.