By Timothy S. Snyder, Matador Economics

This morning we got the second read on the 2024 Q-4 GDP and it came in as expected at +2.3%. We also got January’s durable goods Orders, which came hotter at +3.1% on expectations of +2.0%. If we strip out automobiles, the numbers were flat at +0.3%. Core cap goods came in hotter as well at +0.8% on expectations of +0.3%.

Remember 70% of this metric comes from consumer activity; this is a good sign for the U.S. economy!

A top story in Oilprice.com from Gerald Jansen is titled, “The Top 5 Oil Exploration Prospects of 2025.” The story tells us the largest exploration and production companies — Chevron, ExxonMobil and Total Energies — have projects in Kuwait, Suriname, Cyprus, Libya and South Africa.

Notice the U.S. is not on this list. Most of last year’s finds were smaller, as there were 120 discoveries in 2024, lighter than in previous years. Jansen also mentioned Norway is working to open back up its Barents Sea resources.

The United States has now achieved mobile nuclear energy capabilities with Nano Nuclear Energy mounting a modular nuclear power plant on a semi-trailer truck and dispatching it to an undisclosed location. The rig will provide supplemental energy for an undisclosed project.

While this is not the first instance of a modular nuclear power plant, previous use cases were limited to U.S. Naval vessels. This marks a new era in meeting growing energy demands.

The Energy Information Administration’s report yesterday indicated a decrease of 2.3 million barrels, contrasting with the American Petroleum Institute’s reported draw of only 640,000 barrels. Crude-oil production stands at 13.502 million barrels per day, marking an increase of 5,000 barrels per day.

This figure falls only 129,000 barrels short of the U.S. record established last year. The Strategic Petroleum Reserve remained unchanged throughout the week. Should the price for West Texas Intermediate crude oil continue to stay below $70 per barrel, anticipate the replenishment of the reserve to recommence.

U.S. winter weather

Yesterday’s springlike weather across the East Coast is replaced with more cold and an Alberta Clipper that will drop temps in NYC back to seasonal ranges. It looks like the groundhog was on target with his prediction, as winter sticks around just a little bit longer!

More energy commentary is available at www.matadoreconomics.com