Petro Playback: Gov Sets Nat Gas Prices, North Sea Hits 2M Barrels and $140 Oil

Today in Energy History for Wednesday June 25, 2025

Jun 25, 2025

Happy Wednesday from the energy desk — this is your deep-dive into the historical wireline for June 25, a day that’s witnessed its fair share of price spikes, policy pivots, offshore milestones, and market recalibrations.

In the next few minutes, we’re taking you through the rig lines of time, across shale basins, legislative floors, trading desks, and offshore platforms, to show how June 25 has shaped the way oil and gas are priced, produced, and politicized around the world.

Let’s kick this off with a record that still echoes in today’s markets.

June 25, 2008 – Oil Nearly Hits $140 per Barrel

On June 25, 2008, WTI crude oil surged to $139.64 a barrel, marking one of the highest intraday prices ever recorded in the modern trading era. Gasoline at the pump in the U.S. crossed $4.10 per gallon nationwide, and diesel soared above $4.75.

Back then, the term on every analyst’s mind was “Peak Oil.” Traders feared supply couldn’t keep pace with runaway global demand, especially from China and India, who were doubling down on industrialization. Nigerian rebel attacks had disrupted production. Tensions over Iran’s nuclear program raised fears of regional conflict. The U.S. dollar was tumbling, and investors — searching for inflation hedges — poured into commodities.

But hindsight shows us something else: a speculative fever. Hedge funds, sovereign wealth portfolios, and retail investors were massively long on oil, and the paper market had far outpaced physical fundamentals.

The following months would deliver a harsh correction. As the 2008 global financial crisis unfolded, crude would collapse by over $100 per barrel, hitting $36 by December. June 25 became not just a high-water mark, but a textbook case of how emotion, liquidity, and macroeconomics can inflate a barrel beyond reality.

June 25, 1973 – Federal Price Controls Expand on Natural Gas

Let’s turn back to June 25, 1973, when Congress expanded federal oversight of natural gas pricing through amendments to the Natural Gas Act. These changes attempted to bring interstate and intrastate gas markets under one federal pricing umbrella — with the aim of reducing volatility and protecting consumers during a time of surging inflation and energy uncertainty.

Instead, this well-intentioned move backfired.

By capping prices below market levels, producers had little incentive to drill, especially in Texas, Louisiana, and the Oklahoma basins. Pipelines delayed expansion, and utilities in the Northeast and Midwest were left under-supplied — even as domestic reserves sat untapped.

The result? A natural gas crisis by the late ’70s. The government’s artificial pricing led to long-term shortages, particularly during winter heating seasons, triggering rolling blackouts and curtailments. Industrial users were forced to switch back to fuel oil and coal, just as the country was trying to diversify.

This crisis ultimately set the stage for the 1980s deregulation movement, championed by the Natural Gas Policy Act of 1978 and later full-market liberalization under FERC.

The takeaway from June 25, 1973? Intervening in energy markets without understanding the supply chain leads to long-term pain — even if the short-term politics look promising.

June 25, 1981 – North Sea Output Hits 2 Million Barrels per Day

Let’s now shift to the North Sea, where on June 25, 1981, combined production from the UK and Norwegian sectors surpassed 2 million barrels per day — a defining moment in European energy independence.

The late ’70s and early ’80s were a transformative time offshore. Technologies like jack-up rigs, horizontal drilling, and subsea tiebacks made previously unreachable reservoirs viable. That year, fields like Brent, Forties, and Statfjord were humming, supplying not just Europe, but also reshaping global pricing dynamics.

The boom gave rise to the now-standard Brent Crude pricing benchmark, still used to price over two-thirds of the world’s traded crude oil today. Brent became the global marker not because of size alone — but due to reliable governance, transparent pricing mechanisms, and stable shipping logistics.

This production milestone also enabled the UK to become a net exporter of oil throughout the 1980s, boosting GDP, strengthening the pound, and underpinning Margaret Thatcher’s economic reforms.

June 25, 1981 is a reminder that while shale gets much of the modern press, offshore production was the first major frontier that rewrote energy geopolitics.

Mid-Year Refinery Strategies: June 25 and the Crack Spread Calendar

Let’s not forget the rhythm of the calendar. Historically, June 25 marks a critical operational period for U.S. refiners, especially along the Gulf Coast.

Why? Because it's just before peak summer driving demand hits, meaning refineries have ramped up throughput, switched to summer blends, and are optimizing for maximum gasoline and diesel yield. This also sets up what traders call the “July Crack Play,” where the differential between crude input and refined product output hits one of its widest spreads.

Inventories often show tightening around this time, and the shape of the forward curve in gasoline futures is used by hedge funds and majors alike to forecast margin strength through Labor Day.

So while it might not generate breaking news, June 25 is a day refinery planners circle on their calendars, because the decisions they make now ripple through fuel pricing, export scheduling, and ultimately Q3 earnings.

Petro Playback prepared and written by Jason Spiess. Spiess is an multi-award-winning journalist, entrepreneur, producer and content consultant. Spiess, who began working in the media at age 10, has over 35 years of media experience in broadcasting, journalism, reporting and principal ownership in media companies. Spiess is currently the host of several newsmagazine programs that air across a 22 radio stations and podcasts worldwide through podcast platforms, as well as a social media audience of over 400K followers.

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