Where are data centers getting built? Who owns land locked up and where? These are common questions we are getting from clients. Case in point: Williams’ recent development in New Albany, Ohio, grabbed headlines, potentially powering a massive behind-the-meter gas-fired power project, operating without CCUS, under a 10-year power purchase agreement. Using Enverus Intelligence® Research’s (EIR) proprietary parcel and load tracking analytics, we previously identified land purchases by a likely partner involved in the Williams project (Figure 1).
We have identified more than 65,000 buildable acres already acquired by data center developers and their subsidiaries across the Lower 48. These plots are strategically placed, high-capacity sites that could host nearly 80 GW of new load. And that’s just what we can see coming.
We break down where that acreage is, who’s behind it and what it means for power markets from PJM to SPP. If you want to know where the next data center megaproject is likely to land — and what that means for grid stress, capacity planning and investment — it’s all here.
Enverus Intelligence® | Research, Inc. is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts, and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. See additional disclosures here.
Calgary, Alberta (April 23, 2025) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is releasing its summary of 1Q2025 upstream M&A activity and outlook for the rest of the year. The M&A summary follows Enverus’ release of Investor Analytics, a new cutting-edge solution designed to offer investors a comprehensive view of key market dynamics.
Upstream M&A opened 2025 with $17 billion in deal value, the second-best start to a year since 2018. However, activity was disproportionately driven by one company, Diamondback Energy, which accounted for nearly 50% of total value between its acquisition of Double Eagle IV and a dropdown of minerals to its affiliate Viper Energy Partners. Outside of Diamondback, buyers were already feeling the pressure of limited acquisition opportunities and high asking prices for undeveloped drilling inventory. On top of that, upstream companies will now have to navigate significant headwinds from falling oil and equity values.
“Upstream deal markets are heading into the most challenging conditions we have seen since the first half of 2020. High asset prices and limited opportunities are colliding with weakening crude,” said Andrew Dittmar, principal analyst at EIR. “Potential sellers are acutely aware of the scarcity of high-quality shale inventory, creating a reluctance to unload their assets at a discount. Buyers on the other hand were already stretched by M&A valuations and can’t afford to continue to pay recent prices now that oil prices are lower. The standoff between those two groups around fair asset pricing is set to sink M&A activity.”
Top Five Upstream Deals of Q1 2025
Source: Enverus M&A Analytics
Prior to OPEC and tariffs creating waves in oil markets, pricing for quality shale inventory was a perpetually rising tide. Diamondback set a record in the Permian Basin with its acquisition of Double Eagle IV. The private equity sponsored E&P was able to garner such a large premium for its land because high consolidation over the last few years has left few attractive private companies for the public E&Ps to target. The sale of Double Eagle at about $7 million per undeveloped location topped the previous high-water mark for Permian inventory set by Occidental’s purchase of CrownRock in late 2023. Factoring in Diamondback’s purchase, oil-weighted inventory was on track to record its fifth consecutive year of escalating prices.
“Permian land has been prioritized for acquisitions by companies because the high-quality inventory there can generate strong returns through the commodity price cycle. It is also the basin that keeps giving with operators consistently adding locations by testing new zones of the prolific basin’s stacked pay,” said Dittmar. “With oil prices dropping, whatever buyers are in the market are likely to redouble efforts to pick up high-quality locations held by private companies like FireBird Energy II and TRP Energy in the Permian and will be less interested in private opportunities in plays like the Eagle Ford and Bakken that had been gaining momentum as a cheaper alternative but have less economic inventory.”
Historically, lower crude prices have taken the wind out of the sails of upstream M&A. Going back to the start of 2014, oil prices have fallen by more than 5% quarter-over-quarter 17 times. In 11 of the quarters with materially lower crude prices, deal activity fell compared to the prior three months with an average decline in transacted deal value of 30%.
Asset values have also declined when crude prices moved 20% or more lower year-over-year, with the value of Permian acreage falling about one-third in 2015 compared to 2014 and losing more than half its value in 2020 over 2019, based on the average price per acre paid. The only exception to the trend over the last ten years of lower oil leading to lower asset prices was 2023, when crude came off its 2022 highs, but buyers continued to bid up the value of undeveloped inventory. That year oil still averaged a relatively strong $78/bbl though, different from a move towards the lower end of its cyclical trading range that 2025 is witnessing.
A significant distinction between this downturn in oil and past cycles is that publicly traded E&Ps are relatively well positioned to withstand lower prices, at least for this year. After seeing a wave of reorganization previously when crude lost its footing, companies have kept debt levels in check, been conservative about growing production and made judicious use of hedges. That puts most E&Ps in a good position to maintain operations for the remainder of 2025, although the challenge they face increases if low prices persist into 2026. “If oil prices struggle into 2026, public E&Ps are likely to start taking more drastic actions including cutting capital spending, selling assets or even considering mergers with another company,” said Dittmar.
A potential bright spot for M&A is natural gas with significant interest in adding assets with access to Gulf Coast markets from multiple buyer groups, including international buyers and private capital. While near-term gas prices are also being challenged in the broad market selloff, future prices still look strong with a secular shift in demand from liquified natural gas export facilities and secondary demand from datacenters. That is leading to high demand for Haynesville natural gas assets compared to the available opportunities from private sellers or non-core asset sales. Potential buyers may also consider adding exposure to other areas like the Eagle Ford natural gas window or Mid-Continent.
Using Enverus newest AI tool, Investor Analytics, to summarize comments about M&A markets from management teams in recent earnings calls reveals companies were already concerned about the asking prices for deals and available opportunities. One of the challenges highlighted with available opportunities is the mix of production compared to drilling locations, with many of the larger available acquisition opportunities skewed towards existing production rather than undeveloped inventory. That is a challenge for companies that want to use deals principally to extend overall inventory life. Some companies like Permian Resources have responded by focusing on smaller transactions and bolt-on deals that its management team says have higher-quality inventory and represent better value compared to larger deals.
One option for inventory-strapped U.S. producers is to consider acquisition opportunities in other countries including Canada. The Montney in Canada has consistently demonstrated better value for buyers than the U.S. shale plays, including from the recent merger of Whitecap Resources and Veren that implied less than $1 million each paid for Veren’s remaining inventory. However, these deals have still nearly all been acquired by Canada-based companies. Private Continental Resources looked even further abroad in signing a joint venture in Turkey. As a private operator, the company has more flexibility to pursue exploration ventures than a public E&P whose shareholders would likely react negatively to a similar move. Another hotbed of activity internationally is the Vaca Muerta shale in Argentina, where regional specialist Vista Energy recently acquired a block from Petronas at what looks to be an attractive acquisition price.
“Volatility and lower prices make deals tough right now but will create opportunities for nimble buyers with a longer-term outlook,” said Dittmar. “A temporary bottleneck in deal making will create a backlog of latent demand, and activity should rebound once prices start to improve. Private equity firms, for example, have been raising fresh funds after selling out over the last few years and will be ready to hop back into the market once prices stabilize. Those firms and the large-cap E&Ps with strong balance sheets are likely to be the ultimate winners from the volatility.”
Andrew Dittmar will host a panel on M&A at EVOLVE 2025, Enverus’ upcoming three-day conference held May 12-15, 2025, at the Hilton Americas in downtown Houston, where visionaries converge to shape the future of energy. A press room and hospitality suite will be available for journalists at EVOLVE, where they can meet with Enverus subject matter experts and schedule one-on-one interviews.
You must be an Enverus Intelligence® subscriber to access this report.
About Enverus Intelligence Research Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
AUSTIN, Texas (April 22, 2025) — Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, announced today it has added Investor Analytics to its suite of offerings. This cutting-edge solution stemming from Enverus’ flagship AI tool, Instant Analyst™, is designed to provide investors with a comprehensive view of key market dynamics. Investor Analytics delivers refined and actionable insights into financials, investor behavior, private equity trends and performance metrics, all vetted by Enverus experts.
This new solution, combined with other offerings like Enverus M&A Analytics for oil and gas deals or Energy Transition M&A, which provides guidance and analytics for navigating energy transition transactions, covers 30 asset types including established power generation assets, CCUS, hydrogen and emerging technologies. Together, these generative AI tools offer comprehensive M&A coverage and knowledge for a vast range of energy deal teams, executives and investors.
“For our new business endeavors, staying informed about market dynamics is crucial,” said John Moffitt, energy manager at Amegy Bank and Enverus customer. “We used to dedicate our internal resources to analyzing engineering reports from a reserve database for all our prospective clients. But now we often don’t even need to go that far to determine the feasibility of the proposed transaction. Enverus allows us to quickly validate critical information and assess our confidence in the transaction, making it the most significant value Enverus brings to our operation. The capability to validate throughput data from any operator in any location, with the ability to dive deep into the specifics, is extremely valuable.”
Investor Analytics empowers users with timely and actionable insights, enabling them to find answers faster, sharpen their competitive edge and navigate opportunities and risks with greater precision.
Included
Earnings transcript insights: Dive deep into each document with pre-generated summaries, allowing users to quickly grasp key points, sentiments, and queries without the hassle.
AI support: Our interactive generative AI feature enables users to ask questions and extract data directly from transcripts, facilitating focused and meaningful data retrieval without manual sifting.
Analytics-ready data: Access cleaned and consolidated transcripts from various segments in one simplified hub. Easily filter and explore data, reducing time spent on tedious individual company research.
Comprehensive trend analysis: Conduct queries across companies to assess competitor movements and monitor industry-wide trends for a broader understanding of market dynamics.
Benefits
Enhanced decision confidence: Integrate critical data across financial, investor and private equity domains, reducing dependence on scattered or stale information. This unified view helps users stay proactive and informed, ensuring decisions are backed by vetted and timely data on market trends.
Deeper market understanding: Access detailed insights into private equity specifics, sponsor behaviors and company events for a level of market comprehension that goes beyond the norm, with transparency in areas where it’s often lacking.
Save time and resources: We handle the heavy lifting of gathering, examining and compiling disparate data to deliver a robust, versatile and analytics-ready dataset. This efficiency accelerates workflows, allowing investment teams to focus more on strategic analysis and improving outcomes.
Investor Analytics will be on full display at EVOLVE 2025, Enverus’ upcoming three-day conference held May 12-15, 2025, at the Hilton Americas in downtown Houston, where visionaries converge to shape the future of energy. EVOLVE will feature more than 65 sessions with 130 speakers focused on technology and energy innovation and exclusive insights from the Enverus Intelligence® Research team. This powerhouse symposium offers unmatched market insights, cutting-edge technological know-how and the chance to connect with industry leaders across the entire energy spectrum.
Adam Pryor of Murphy Oil offered his view of last year’s conference saying, “Enverus presented a challenge that I don’t often see at other conferences in that you have so many interesting sessions to attend, but not enough time to get to them all. We brought our team and had everyone divide and conquer to go to them all. That way we could intake all the various information and bring some of it back to the organization.”
EVOLVE attendees can get a glimpse of how Investor Analytics works, along with other solutions like Instant Analyst™, at product-focused sessions or at Enverus’ product hub showcase desks, where AI agents will be conducting demonstrations.
A press room and hospitality suite will be available for journalists at EVOLVE, where they can meet with Enverus subject matter experts and schedule one-on-one interviews.
Members of the media with questions or looking to register for EVOLVE 2025 should contact Jon Haubert to obtain a complimentary media registration code.
About Enverus Enverus is the most trusted energy-dedicated SaaS company, with a platform built to maximize value from generative AI, offering anytime, anywhere access to analytics and insights. These include benchmark cost and revenue data sourced from more than 95% of U.S. energy producers and more than 40,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing. Our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 7,700 customers in 50 countries. Learn more at Enverus.com.
For more than 25 years, Enverus Load Forecasts have been the gold standard in load forecasting, delivering unmatched accuracy and reliability. This was vividly demonstrated during a significant late-season cold spell that gripped the Midwest Independent System Operator (MISO) region from April 4-11, 2025. As winter lingered with unseasonably cold temperatures, triggering widespread freeze warnings across at least 15 states, Enverus Load Forecasts significantly outperformed MISO’s ISO forecasts.
These warnings highlighted the potential impact of sub-freezing temperatures on agriculture and early spring growth. Cities experienced a sharp drop in temperatures, bringing widespread frost concerns well into the typical spring season.
During this late-season freeze, Enverus Load Forecasts for MISO significantly outperformed the ISO.
Below, we provide a deeper analysis.
How Did Enverus Load Forecasts Perform During the Freeze From April 4-11?
The period from April 4-11, 2025, tested the resilience of the MISO grid as a powerful Arctic air mass swept across the Midwest, plunging temperatures well below seasonal norms. This unexpected cold snap increased electricity demand as heating systems worked overtime, challenging the accuracy of load forecasting models. Enverus Load Forecast, powered by deep learning and granular datasets, rose to the occasion, delivering precise predictions that enabled utilities and traders to navigate the volatile market conditions with confidence. In this section, we break down the performance of Enverus Load Forecasts, highlighting their superior accuracy compared to MISO’s ISO forecasts during this critical period.
The temperature forecast performed well, accurately capturing the rapid onset and intensity of the cold spell. Enverus’ weather models predicted the sharp temperature declines across key MISO regions, with average highs dropping to the mid-20s°F in cities like Minneapolis and Chicago, and overnight lows dipping into the teens in parts of North Dakota and Wisconsin. These precise temperature forecasts were critical, as they directly influenced load demand projections.
Temperatures in Fahrenheit from April 4th to April 11th
During peak load hours, the Enverus forecast significantly outperformed the ISO, achieving a mean absolute percentage error (MAPE) of 1.25% compared to the ISO’s 5.26%. This remarkable accuracy reflects Enverus’ ability to adapt to sudden demand spikes driven by the extreme cold, ensuring utilities could optimize resource allocation and avoid costly over- or under-forecasting. The low MAPE during peak hours highlights the strength of Enverus’ deep learning algorithms, which excel in high-stakes scenarios where precision is paramount.
System wide load forecast errors
Across all hours of the day, Enverus once again outperformed the ISO, achieving a MAPE of 1.03% compared to the ISO’s 3.71%. This consistent accuracy across both peak and off-peak periods demonstrates the robustness of Enverus’ forecasting platform, which seamlessly integrates weather, demand and grid data to deliver reliable predictions.
System wide load forecast analysis in megawatts (MW)
Load forecasting is becoming increasingly important—not just during unusual weather events like we experienced last week, but especially at this time of year, when wholesale power prices are heavily influenced by “Unit Outage Season.”
This year, in particular, growing generator outages are occurring earlier than usual compared to last spring’s outage season, and they’re having an outsized impact on the market.
You can count on Enverus to deliver the most accurate load forecasts and top-tier market analysis in the business.
Ready to Conquer Summer 2025? Enverus Must-Have Summer Outlook Series on Congestion, Load and Weather
Don’t let summer 2025 catch you off guard. Enverus Summer 2025 Outlook series is your essential guide to staying ahead of market dynamics. Tailored for power traders and analysts, this series dives into load and renewable forecasts, historical weather analogs, ENSO-neutral and La Niña conditions, and emerging grid constraints from new generation and transmission builds. Whether you’re an FTR trader spotting profitable paths, a day-ahead trader aligning bids with demand, or a real-time trader navigating volatility from renewables and outages, our insights on price/heat rate forecasts, transmission outages and new ISO policies will keep you prepared. Subscribe now to master the market before summer hits!
With a 15-year head start in renewables and grid intelligence, real-time grid optimization to the node, and unparalleled expertise in load forecasting that has outperformed the ISO forecasts, Enverus Power and Renewables is uniquely positioned to support all power insight needs and data driven decision making. More than 6,000 businesses, including 1,000+ in electric power markets, rely on our solutions daily.
Insights on WCSB Oil Production Pipeline Expansions, and AECO Hub Gas Pricing
The Canadian oil and gas industry is at a pivotal moment, with significant potential on the horizon that could reshape the landscape. Enverus Intelligence® Research (EIR), a subsidiary of Enverus, recently published the report, “Oil Sands Play Fundamentals” which takes a deep dive into these changes, providing crucial insights for industry stakeholders. Canada is anticipated to be one of the top four contributors to global oil supply growth over the next five years, with 65% of the country’s growth coming from oil sands – a significant wedge in global production that should not be ignored.
Let’s look at some of the key highlights:
Anticipate a rise in oil production within the Western Canada Sedimentary Basin (WCSB).
Explore the impact of increased oil sands production on the Canadian condensate and AECO gas markets.
What to consider as an active producer or investor in the oil sands.
We see good and bad news for Canadian gas producers trying to capitalize on increased oil sands production over the next four years. – Trevor Rix, Director, EIR
Rising Oil Production in the WCSB
The WCSB is poised for a significant increase in oil production led by SAGD project expansions. We expect existing oil pipelines to be filled by 2027. However, incremental expansions on Enbridge’s Mainline and the Trans Mountain Expansion pipeline, which EIR expects will each add 200 Mbbl/d by the end of the decade, will provide ample egress capacity towards the end of the decade. These expansions are key to our optimistic view on WCSB pricing over the medium term. The ability to transport more oil efficiently will not only support higher production levels but also stabilize prices, benefiting producers and the broader economy.
Figure 1: Canadian oil egress projections through 2030. Existing capacity on TMX and Canadian Mainline expected to fill by 2027.
Every discussion about Canadian oil and gas markets starts and ends with takeaway capacity. – Dane Gregoris, Managing Director, EIR
Impact of Increased Oil Sands Production on Condensate Demand and AECO Hub Gas Pricing
The increase in oil sands production is set to drive substantial demand for in-basin condensate volumes, which are essential for diluting bitumen for pipeline transportation. Non-upgraded Canadian oil sands production is expected to rise by around 100 Mbbl/d annually until 2028. This surge will create a significant need for condensate, particularly from the Montney play in Alberta and B.C.
However, this increased demand for condensate will also have implications for AECO hub gas pricing. As Montney E&Ps pivot towards condensate-directed drilling, they will likely produce large quantities of associated gas. This could lead to an oversupply of cheap gas, putting downward pressure on AECO hub prices. While this scenario presents challenges for dry gas producers, it also underscores the importance of strategic planning and investment in liquids-rich areas.
Figure 2: Canadian bitumen, condensate and associated gas growth projections through 2030.
Investment Opportunities and Risks: Low-Breakeven Canadian Resource Advantage
The primary benefit of Canadian oil sands and Montney assets lies in their extensive inventory of low-cost resource. Montney- and oil sands-exposed E&Ps tend to trade at similar FCF multiples to U.S. shale peers despite retaining two to three times the duration of sub-$50 WTI breakeven resources. In other words, these Canadian plays offer low-cost assets that remain economically viable over an extended period, providing a stable and attractive investment opportunity.
Investors should look at companies with exposure to liquids-rich areas of the prolific Montney play in Alberta and B.C, the largest source of gas in Canada, as well as select midstreamers, the companies that gather and process the gas and liquids. – Trevor Rix, Director, EIR
The Canadian oil and gas industry is entering a dynamic period of growth and change. By understanding the key drivers behind rising oil production in the WCSB, the growth of oil sands projects, and the low-breakeven resource advantage, industry stakeholders can better navigate the evolving landscape. Strategic planning and investment will be crucial in seizing the opportunities and mitigating the risks ahead.
What are your views on the future of the Canadian oil and gas industry? Let us know below, or subscribe to our blogs for more insights and updates on the energy sector.
About Enverus Intelligence Research Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships with 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
Network infrastructure expansion will lag load growth, driven primarily by the rapid expansion of data centers to support artificial intelligence. Data hub developers are looking to gain a first-to-market advantage and are eager to find ways to connect to the grid as soon as possible. Demand response (DR) – a voluntary reduction in power consumption during peak hours – is one method to ensure that new loads can be integrated into grids despite current capacity constraints. Enverus Intelligence® Research’s (EIR) new report measures the efficacy of DR for rapidly connecting new loads to the grid.
Using hourly operating data from the EIA, EIR estimates that PJM and MISO have the greatest ability to accommodate new loads with DR. At only 100 hours of DR, PJM and MISO can add 11.9 GW and 8.2 GW, respectively. CAISO would see the greatest utilization of idle resources, with the added capacity at 100 hours (5.8 GW) making up 14% of peak net load. These values increase proportionally with the number of DR hours. Although promising, large loads with high-reliability requirements, such as data centers, may lack the capability to reduce their power consumption without expanded backup generation. Furthermore, increasing loads without expanded infrastructure may lead to higher wholesale power prices.
Midstream Opportunities – L48 Gas-Fired Power Growth Potential – We examine which midstream operators hold the most gas pipeline capacity near increasing load and retiring coal-fired power plants and projects the volume growth potential for each operator.
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts, and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. See additional disclosures here.
The energy sector has always been complex. From the volatility of oil and gas markets to the technical challenges of extracting resources from remote locations, energy professionals have long navigated a multifaceted landscape. But today, there is a new perfect storm of complexity as the world hurtles forward with the adoption of artificial intelligence and the need for global energy transition intensifies.
The Energy Transition and Data Complexity:
As we shift toward lower-carbon systems, companies must manage an increasingly diverse energy mix while adapting existing infrastructure to accommodate new sources. This isn’t simply a matter of swapping one energy source for another – it requires operating within distinctly different paradigms simultaneously.
Digitalization, while offering solutions, paradoxically adds complexity. Smart grids, IoT sensors and advanced monitoring systems generate overwhelming volumes of data. The promise of efficiency through digital transformation often comes with the burden of managing information overload.
Meanwhile, rising global energy demand collides with potential supply constraints and persistent geopolitical instability, creating significant challenges for energy providers and consumers worldwide.
Perhaps most notably, today’s energy system is characterized by unprecedented interconnectedness. The intricate dependencies between energy sources, infrastructure components and external factors – from weather patterns to economic conditions – amplify the impact of disruptions and demand a more integrated approach to energy management.
This new complexity isn’t merely a challenge to overcome – it represents a fundamental shift in how energy systems function. Managing both established and emerging energy sources requires navigating distinct operational paradigms, regulatory requirements, and technological frameworks simultaneously.
This data comes in various forms, each presenting unique challenges:
Structured data – neatly organized information like pipeline monitoring data, asset management reports, and electricity consumption readings – is the most accessible but represents only a fraction of the available information.
Unstructured data includes well logs, drilling reports, CAD drawings, maintenance records, analyst reports and visual data from sources like seismic surveys and drone inspections. Much of the industry’s historical data remains trapped in physical documents or PDF files, making it difficult to access and analyze.
Semi-structured data occupies the middle ground – information from modeling software or XML files used for data exchange between systems.
The challenges of extracting meaningful insights from this sea of data are considerable. The sheer volume and velocity of information overwhelm conventional analytical methods. The variety of data types and format inconsistencies across different systems create significant integration hurdles. Many vendors offer proprietary solutions that don’t readily integrate with existing infrastructure, requiring costly customization.
Data quality issues—inconsistencies, inaccuracies and errors – undermine the reliability of any insights derived. Data silos, where information is trapped within isolated systems across different departments, prevent companies from gaining a holistic view of operations. The complexity of relationships within the data, especially when connecting information across diverse types and sources, demands advanced analytical techniques. And the lack of industry-wide standardization in data formats and communication protocols further complicates data integration and sharing.
Setting the Stage for Generative AI: Transforming Challenges Into Opportunities
Enter Generative AI –uniquely positioned to address the energy sector’s multifaceted challenges. GenAI’s ability to analyze vast quantities of data, including unstructured formats, offers a compelling solution to the industry’s data overload and complexity issues.
GenAI can automate routine tasks, improve predictive maintenance operations, optimize grid performance and stability, and enhance decision-making processes across various energy sub-sectors. By leveraging these capabilities, energy companies can unlock new revenue streams and significantly improve operational efficiencies, leading to enhanced profitability and more sustainable business models.
The potential of GenAI in the energy sector extends far beyond simple automation. Its ability to process and derive insights from diverse data sources positions it as a strategic asset in navigating the industry’s growing complexity. By bridging data silos and uncovering hidden patterns, GenAI can help energy companies make more informed decisions, anticipate challenges, and identify opportunities for optimization and innovation.
Conclusion: Embracing Intelligent Solutions for a Complex Future
The energy industry stands at a critical inflection point. The convergence of the energy transition, data explosion and skills gap creates unprecedented complexity – but also unprecedented opportunity for transformation. The challenges are significant, but they’re not insurmountable with the right approach and technologies.
Enverus will continue to explore specialized data integration techniques for different data types, both structured and unstructured. We’ll examine powerful concepts like Retrieval-Augmented Generation for enhancing the accuracy of GenAI models by grounding them in external knowledge sources. And we’ll look at advanced Agentic frameworks that enable autonomous AI systems to perform complex tasks with minimal human intervention.
Join us at the EVOLVE 2025 | Enverus conference as we explore how intelligent solutions can transform the future of energy in an increasingly complex world.
The need to identify and secure quality acreage is more critical than ever for operators, from traditional family businesses to private equity-backed firms and public companies. The market is valuing and rewarding operators who are making the right moves to manage their inventory and remain capital efficient. This is a fine balance for producers to walk, and leveraging advancements in AI technology will be crucial to optimizing operations and maximizing profitability. This blog explores how AI in oil and gas can be a game-changer for small and mid-sized operators and what tools they can use to increase their bottom line.
Topics covered:
The role of AI in oil and gas
Current challenges that AI can solve
Practical steps for implementing AI in your business
Emerging AI technology can help with anything from lagging drill speeds, difficult well spacing and higher breakeven costs. Smaller operations companies can leverage these tools to remain competitive and explore growth opportunities.
The Role of AI in the Oil and Gas Industry
AI offers significant advantages in understanding and navigating the oil and gas market. By analyzing vast amounts of data quickly and accurately, AI enables operators to make better decisions. AI can process large amounts of geological data, production history and market trends, providing insights that would be impossible to obtain manually. This capability is particularly valuable in identifying quality acreage and understanding market dynamics.
With Instant Analyst™:PRISM, you can use AI to ask questions about active rigs, permits, wells and other factors and the software will generate a pre-populated workbook for you. Click above to give it a try!
Current Challenges Facing Small and Mid-Sized Operators, and How AI Can Help
Small and mid-sized oil and gas operators face numerous challenges, including lagging drill speeds, difficulties in optimizing well spacing and inconsistent drilling programs. While machine learning has been used for years, newer technology in oil and gas that leverages more advanced AI can offer solutions by optimizing drilling operations, enhancing well spacing strategies, identifying cost-saving opportunities, and streamlining drilling and completion programs, leading to more efficient and effective operations. Let’s delve into the specific challenges faced by small and mid-sized operators and explore how new AI technology in oil and gas can provide effective solutions for each.
Problem: Drill speed and well cycle times often lag behind basin medians
How AI helps: Emerging AI technology can optimize drilling operations by analyzing historical data and real-time inputs to recommend the best drilling parameters. Machine learning algorithms can predict the optimal drill speed and adjust parameters dynamically to improve efficiency and reduce cycle times.
Problem: Challenges in optimizing well spacing and development strategies
How AI helps: AI can analyze vast amounts of geological and production data to recommend optimal well spacing and development strategies. This ensures maximum resource extraction while minimizing interference between wells.
Join us as we explore the intersection between technology and energy, including many fascinating AI innovations at this year’s EVOLVE conference.
Problem: Inconsistent drilling and completion programs
How AI helps: AI can streamline drilling and completion programs by providing a data-driven foundation that can be used by planning teams to properly allocate resources and schedule the best times and methods for these activities.
Practical Steps for Implementing AI
For operators looking to integrate new AI technology for oil and gas into their workflows, there are several practical steps to consider:
Invest in Training and Development: Ensure that your team has the skills and knowledge needed to use AI effectively. This may involve training programs or hiring new talent with expertise in AI and data analysis.
Start Small and Scale Up: Begin with pilot projects to test the effectiveness of AI in your operations. Once you see positive results, you can scale up your AI initiatives to cover more areas of your business.
Conclusion
In the ever-changing oil and gas market, AI offers a powerful solution for small to mid-sized operators. By providing insights into market dynamics and identifying quality acreage, AI can help operators make informed decisions and stay competitive. Embracing AI is not just about adopting new technology – it’s about transforming the way you operate and positioning your business for long-term success.
Ready to explore how AI can benefit your operations? Join us at our annual EVOLVE Conference being held May 12-15 in Houston. We even have a specialized stream of sessions focusing on AI and its impact on the energy industry – “Innovating Energy Tech with AI.” Learn more about AI solutions and how they can help you navigate the complexities of the oil and gas market. Visit the link above or fill out the form below for more information.
Interested in learning about how we leverage AI in our energy analytics solutions? Fill out the form below to speak with an expert!
CALGARY, Alberta (April 16, 2025) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages Generative AI across its solutions, is releasing a series of reports focused on its Haynesville growth forecast including natural gas production, operational efficiencies and Henry Hub basis fluctuations amid high price volatility.
According to EIR, the high volatility in natural gas prices expected at East Texas hubs served by Haynesville production is driven by timing mismatches related to gas supply, pipeline development and LNG export demand. Over the next decade, the Haynesville is anticipated to experience underutilized pipeline capacity, according to EIR reports.
“Operator guidance and a minimal increase in drilling activity in the Haynesville has driven a downgrade for our 2025 and 2026 production outlook,” said Alex Ljubojevic, director at EIR.
Jason Feit, an adviser at EIR added, “Gas producers and consumers should expect volatile prices at key trading hubs in Texas over the next few years as new pipelines come onstream and alter supply-demand dynamics. Prices at the Katy and Carthage trading points should stabilize in 2028 and beyond but expect a bumpy ride until then.”
“There could be as much as 6 Bcf/d of underutilized pipeline capacity over the next decade in the Haynesville. Legacy pipelines and those lacking LNG access face the most challenges,” Feit said.
Key takeaways from the report:
EIR has downgraded its Haynesville production forecast in 2025 and 2026. Lack of activity pick-up and operator guidance indicating a slower production ramp drove the downgrade.
Longer laterals have kept total drilled but uncompleted (DUC) footage in line despite lower DUC counts.
EIR is bearish relative to the current forward curve for Katy and Carthage gas prices in 2026-27. It expects abnormally high volatility during this period.
New pipelines targeting the growing Gulf Coast LNG export are forecast to add 3.5 Bcf/d of takeaway capacity by the end of this year. Another 1.7 Bcf/d of capacity is expected by 2027.
Underutilized Haynesville pipeline capacity will exist over the next decade, according to our estimates. Legacy pipelines and those lacking LNG access face the most risk.
Alex Ljubojevic will present the findings at EVOLVE 2025, a conference where visionaries converge to shape the future of energy. The conference will be held May 12-15, 2025, at the Hilton Americas in downtown Houston (1600 Lamar St, Houston, TX 77010).
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About Enverus Intelligence® Research Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
In a recent conversation with Loren McGinnis, host of CBC’s Calgary Eye Opener, I, Al Salazar of Enverus Intelligence® Research (EIR), delved into the recent sell-off in oil prices and whether such a dramatic drop was justified. We’ve seen Brent and WTI plummet by roughly $10-$15 per barrel, primarily due to fears of a global economic slowdown and the impending recession triggered by President Trump’s tariffs. The market is reevaluating its expectations, forecasting weakened oil demand amid a fragile global economy.
Based on EIR’s models, sustaining prices of $65/bbl Brent in Q2, or $60/bbl WTI, imply a market imbalance of around 2 million barrels per day. This imbalance would stem from increased OPEC production paired with reduced oil demand, leading to higher stockpiles. Such an imbalance has yet to manifest. Moreover, the forward curve’s pricing does not incentivize such behavior since the cost for the front-month contract remains higher than future months. Based on present fundamentals, the price drop appears somewhat unjustified. Nonetheless, market behavior suggests some investors are bracing for a potential downturn.
Market Outlook Amid Tariffs and Production Increases
Despite recent oil price volatility, EIR’s outlook on oil prices remains steadfast. About a month ago, EIR downgraded its oil price forecast in light of Trump’s tariffs and OPEC’s decision to roll back production cuts. We now project an average Brent price of $70 (and $65 for WTI) in 2025, decreasing to $65 (and $60 for WTI) by 2026. This downgrade, which predated the broader ramifications of global tariffs, prompted us to significantly slash our demand forecast. To warrant another revision, we would need to witness a rapid deceleration in demand or unexpected shifts in supply dynamics. The focus presently remains on demand, with OPEC’s decision to accelerate the unwinding of production curbs further fueling bearish sentiment.
Western Canadian Select Differentials: What’s Driving the Narrowing?
The recent narrowing of differential for Western Canadian Select (WCS), a benchmark grade of heavy oil that includes oil sands output, has sparked much discussion. However, the emphasis on tighter differentials has overshadowed the more pressing issue — the absolute price of WCS, which hovers around $50 per barrel. WCS differentials typically widen when Alberta’s crude transportation faces constraints amid favorable pricing and robust supply growth. Today’s low-price environment mitigates the risk of transportation congestion from Alberta’s supply growth. While demand for Canadian heavy crude has surged in response to President Trump’s threats against Venezuelan crude importers, this uptick is relatively insignificant when set against widespread global demand concerns and suppressed absolute prices.
President Trump’s initiative to rectify the U.S. global trade deficit has ushered in a period of uncertainty and oil price volatility. We can expect lower global economic growth compared to previous years. For Canada and Alberta, this marks an economic transition characterized by reduced trade, slower economic growth, job losses and diminished capital investment. As the federal election on April 28 approaches, discourse will likely revolve around strategies to address these challenges. We urge industry players to brace for a potentially tumultuous period ahead, one that could last years.
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts, and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. See additional disclosures here.
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