Domestic Drillers Rush To Power AI Grid As Global Oil Demand Stays Unbroken
Equity Insider News Commentary
Issued on behalf of Prairie Operating Co.
VANCOUVER, BC, July 17, 2025 /CNW/ -- Equity Insider News Commentary – There are no near-term plans to reduce oil production, with no peak to oil demand before 2050, according to OPEC. This comes despite OPEC's claims oil demand will be trimmed over the next four years, there's no peak in sight. A significant portion of this demand is projected to come from the rapid rise of data centers in the Middle East, meant to power the AI revolution behind the scenes. Domestically, the US Energy Information Administration's (EIA's) Annual Energy Outlook 2025 projects US crude oil and natural gas production growth to remain relatively high through 2030. Now analysts are touting how federal policies in the USA are driving fresh interest in non-OPEC oil and gas, with intriguing developments coming from Prairie Operating Co. (NASDAQ: PROP), Chesapeake Utilities Corporation (NYSE: CPK), Kosmos Energy (NYSE: KOS), Ring Energy, Inc. (NYSE-American: REI), and ARC Resources Ltd. (TSX: ARX) (OTCPK: AETUF).
In order to accomplish US President Trump's goal of refilling the country's Strategic Petroleum Reserve to its maximum capacity, Energy Secretary Chris Wright estimates it would take $20 billion and years to accomplish. The need for domestically sourced energy also grows, as power utilities providers seek higher prices for their products based on rising AI demands.
While Prairie Operating Co. (NASDAQ: PROP) may still fly under most radars, during the past four months the Houston‑based driller has quietly expanded its Denver–Julesburg Basin footprint while preserving the kind of capital discipline that appeals to retail investors.
In its latest bolt‑on move, Prairie paid $12.5 million for a slice of Edge Energy acreage, adding about 11 000 net acres, 190 boe/d of current output, and 40 drill‑ready locations.
"This strategic and highly accretive bolt-on acquisition enhances our existing footprint in the DJ Basin," said Edward Kovalik, Chairman and CEO of Prairie. "With a high working interest, established cash flow, and development-ready drilling locations, this transaction aligns with our capital allocation strategy and adds near-term value and long-term inventory."
Prairie covered the acquisition with its reserve‑based credit facility, avoiding any share dilution. The room to maneuver comes from a June update in which Prairie confirmed a $1 billion RBL led by Citibank; on 9 June the lender group—now including Bank of America and West Texas National—reaffirmed the $475 million borrowing base after reviewing the company's bigger reserve book.
Operations are moving at a similar clip. In late April Prairie began completing nine drilled‑but‑uncompleted Opal Coalbank wells that should reach first oil this summer. Those wells trail the 11‑well Rusch Pad, spudded on 1 April, with alternating 2‑mile laterals in the Niobrara and Codell. Initial production from Rusch is slated for early August, giving investors two quick volume catalysts.
Prairie's expansion is anchored by its $602.8 million purchase of Bayswater Exploration assets, which closed in late March. The transaction lifted daily production by about 25,700 boe, added 77.9 MMboe of proved reserves, and delivered more than 600 future drilling sites across 24,000 acres. At less than 0.7× proved PV‑10, the price leaves solid asset backing under the shares.
"The addition of the Bayswater Assets further establishes Prairie as a leading operator in the DJ Basin," said Gary Hanna, President of Prairie. "These assets are a strong complement to our existing portfolio, and we remain focused on maximizing operational efficiencies, optimizing production, and delivering sustainable growth for shareholders."
Today Prairie controls roughly 60,000 net DJ acres, over 550 economic locations, and keeps leverage near 1× EBITDA. Liquids should account for about 70% of output—an attractive mix as AI‑driven power demand pushes both crude and associated‑gas needs higher. With first flows from Opal Coalbank and Rusch on the horizon, investors will soon see whether the blueprint stays on schedule.
CONTINUED… Read this and more news for Prairie Operating Co. at:
In other recent industry developments and happenings in the market include:
Chesapeake Utilities Corporation (NYSE: CPK) is expanding its energy footprint in Ohio, signing a deal with American Electric Power to construct an Aspire Energy Express pipeline that will supply natural gas to a data‑center fuel‑cell plant. The pipeline represents about $10 million in capital expenditure and is slated to become operational in early 2027.
"This project is a clear example of how Chesapeake Utilities Corporation continues to execute on our growth strategy by leveraging our core capabilities — new business development, transmission project construction and customer-focused energy solutions," said Jeff Sylvester, senior vice president and chief operating officer of Chesapeake Utilities Corporation. "Through our work with AEP, we're deploying capital to deliver infrastructure needed to support energy demand in high-growth regions of Ohio."
The partnership positions Chesapeake to capture incremental demand from the fast‑growing data‑center market while strengthening its Midwestern infrastructure base.
Kosmos Energy (NYSE: KOS) recently confirmed that the floating LNG vessel Gimi, chartered to BP, has achieved its commercial operations date at the Greater Tortue Ahmeyim development. The facility is now producing LNG at rates equivalent to 2.4 million tpa, nearly 90% of its 2.7 million tpa design capacity, following first LNG in February and multiple cargo liftings this spring.
Kosmos forecasts about 3.5 gross cargos in the second quarter as exports continue to ramp. The successful startup strengthens Kosmos' production outlook and underscores effective cooperation with Golar and other project partners.
Ring Energy, Inc. (NYSE-American: REI) recently announced that its senior secured credit facility has been extended to June 2029 while the $585 million borrowing base was reaffirmed.
"We value the ongoing support from our bank group and are pleased to have Bank of America as our new administrative agent," said Paul D. McKinney, Chairman of the Board and CEO of Ring. "We continue to focus on generating free cash flow through cost reductions, divestitures of non-core assets, and acquiring high-margin, low-break-even assets, using excess cash to reduce debt and create value for stockholders across commodity price cycles."
Ring also secured a 25‑basis‑point reduction in the pricing grid and appointed Bank of America as administrative agent for the 11‑bank syndicate. The amendment bolsters liquidity and supports Ring's plan to cut debt and fund high‑margin Permian development.
ARC Resources Ltd. (TSX: ARX) (OTCPK: AETUF) has officially folded Strathcona Resources' Kakwa Montney properties into its portfolio for roughly C$1.6 billion. The purchase delivers two wholly owned processing facilities, a 19 % stake in a third plant, and enough inventory to extend development beyond 15 years.
ARC expects the new assets to contribute 35 000–40 000 boe per day this year—about half liquids—cementing its position as Canada's leading condensate producer. Following the close, net debt is about C$2.8 billion, backed by an upsized C$2 billion credit facility.
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