Energy M&A update: Q3 2025

At the end of Q3 2025, US crude oil production increased to 13.6 million barrels per day, up by 0.2 million barrels per day from Q2 2025.

Energy and resources trends

  • Oil and gas
    In the US Energy Information Administration’s (EIA) September 2025 short-term energy outlook, US natural gas prices averaged $3.0/MMBtu in Q3 2025, which is $0.3/MMBtu lower than Q2 2025.1
  • Renewable energy
    Compared to Q2 2025, Q3 2025 saw a 4.0% increase in the cost of solar power purchase agreements, driven primarily by tariffs on steel, aluminum, and copper, which have raised the development costs of solar projects.2
  • Power and utilities
    In Q3 2025, US electric utilities that updated their integrated resource plan projected that, on average, electricity demand will be 2.1% higher through 2035 than they previously thought and projected carbon emissions are now expected to increase by 5.5%. This change highlights how rapidly growing electricity use is putting pressure on the current power infrastructure.3
  • Nuclear energy
    As of July 2025, monthly nuclear utility generation increased 1.3% year over year at an annualized rate of 70,781 GWh.4

 

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References

1US Energy Information Administration (EIA), “Short-term energy outlook,” accessed September 2025.
2Solar Energy Industries Association (SEIA), Solar market insight report, September 8, 2025.
3Jon Rea, “The state of utility planning,” RMI, October 15, 2025.
4EIA, “Electricity Data Browser – Net generation for nuclear energy by state by sector,” accessed September 2025.

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