The Future of Oil and Gas

Global Energy Demand by the Numbers

The IEA's World Energy Outlook estimates global energy demand will climb roughly 15% by 2035, pulled by population growth and industrialization in India, Southeast Asia, and sub-Saharan Africa. Renewables are growing fast, but they're adding capacity on top of fossil fuels -- not replacing them barrel for barrel. In 2024, the world burned 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 most of the growth.

Natural gas follows the same trajectory. Global gas demand hit roughly 4.1 trillion cubic meters in 2023 and keeps climbing as coal-to-gas switching speeds up in Asia. U.S. LNG export capacity is on track to nearly double by 2028, topping 24 billion cubic feet per day and 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 pumped roughly 13.2 million barrels of crude oil per day in 2024 -- a record. Domestic production now outpaces domestic consumption for petroleum products when you count refined exports. That matters for energy security, and it matters for investors because U.S. policy actively backs it.

The tax code rewards domestic drilling through IDC deductions, the 15% percentage depletion allowance, and the working-interest exception under IRC Section 469. These aren't loopholes — Congress wrote them specifically to keep American rigs turning and cut dependence on foreign supply. Across the industry, IDCs commonly represent 65-80% of total well cost, and for qualifying programs those costs are deductible in the year incurred. The share that qualifies in any specific program depends on cost structure.

We expect the policy environment to stay favorable no matter which party holds the White House. On actual legislation and permitting, both sides have consistently backed domestic production. Our Oklahoma wells benefit from a state regulatory environment that's 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 tech keeps improving. Lateral lengths that averaged 5,000 feet a decade ago now routinely exceed 10,000 feet, pulling more oil from each pad at lower cost per barrel. Real-time downhole sensors, automated rigs, and better completion designs mean operators squeeze more from every formation they target.

At BassEXP, we apply these advances to mature Oklahoma formations where the geology is well understood. We're not chasing speculative frontier plays. We're using modern tech to get better results from proven rock -- that cuts risk and improves economics for our investors.

Environmental management has kept pace. We run closed-loop drilling fluid systems, use vapor recovery units on tank batteries, and follow strict produced-water disposal protocols. That's standard operating procedure, not a talking point. 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

Gas produces roughly half the CO2 of coal per unit of electricity generated. That's why gas-fired power plants are replacing coal plants across the U.S. and internationally. The EIA reports natural gas covered about 43% of U.S. electricity generation in 2024. International demand for U.S. LNG has surged since 2022, and new Gulf Coast export terminals should add 12+ billion cubic feet per day of capacity by 2028.

For producers, that means a deeper, more liquid market for gas. Many of our Oklahoma wells produce both oil and associated gas. As export capacity grows, the price floor firms up -- and that directly supports the monthly revenue our investors receive.

The Energy Transition in Context

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

The math is simple. Global energy consumption is growing faster than renewables can fill the gap. Every solar panel, wind turbine, and EV requires petroleum-based materials in its manufacturing. Aviation, shipping, petrochemicals, and heavy industry don't have commercially viable alternatives to hydrocarbons at scale. The world will need oil and gas producers for decades -- and the ones operating efficiently in low-cost basins will be the last ones standing regardless of how the transition plays out.

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 biggest demand drivers of the mid-2020s? Data centers and AI infrastructure. Training and running large AI models burns enormous amounts of electricity. A single large data center can pull 100 megawatts or more of continuous power -- roughly what 80,000 homes use. Goldman Sachs estimates U.S. data center power demand could jump 160% by 2030.

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

For gas producers, this is a structural bump in domestic demand stacked on top of existing LNG export growth. Oklahoma sits in a strong geographic position, 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 gas. Stronger gas demand lifts total revenue from these dual-commodity wells and puts a firmer floor under pricing long term.

Demand Stability and Long-Term Opportunity for Investors

For qualified investors deciding where to put capital, the combined demand picture is hard to ignore. Oil demand is anchored by transportation, petrochemicals, and industrial use that renewables can't yet displace. Gas demand is being pulled higher by the global coal-to-gas switch and the rapid expansion of domestic power needs from AI and electrification. LNG exports add a third demand layer that connects U.S. producers to global pricing.

That layered demand base creates more stability than oil and gas markets have historically offered. Producers in proven basins with low operating costs aren't dependent on any single driver. If EV adoption slows petrochemical demand growth, gas demand from data centers picks up the slack. If LNG exports face geopolitical headwinds, domestic industrial demand fills the gap. Diversified demand means less price whiplash for investors holding producing assets.

None of this guarantees any particular price level or return. Commodity markets are cyclical. There will always be periods of lower prices. But the structural floor under demand sits higher today than it did five years ago, and U.S. policy 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's been in years.

What This Means for Your Investment

The long-term fundamentals for oil and gas hold up: persistent demand, favorable U.S. tax treatment, improving technology, and expanding export markets. That's a solid environment for qualified investors who want tangible assets kicking off monthly income and real tax benefits.

At BassEXP, we watch these macro trends play out at the wellhead every day. We drill development wells in de-risked Oklahoma formations, put our own capital in alongside our partners, and report every cost and production number transparently. We're not a fund. We're an operator, and we've 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.