Originally published at: https://peakprosperity.com/daily-digest/u-s-shale-feels-pain-with-oil-below-60-canada-court-rules-covid-era-emergencies-act-unjustified/
Energy
The Trump administration’s efforts to increase Venezuelan oil production and lower global prices have reportedly contributed to slowed drilling in the U.S. Permian Basin, where operators have expressed concerns over profitability amid crude prices below $60 a barrel and rising costs from tariffs on materials such as steel. Active rigs in the region have declined 14% over the past year, resulting in layoffs, delayed wells, and reduced local economic activity, including a 5.6% drop in hotel occupancy. Corroborating concerns over price, shale pioneer Harold Hamm has reportedly halted drilling in the Bakken formation after 30 years, citing margins eroded by prices around $59 a barrel, though he indicated the pause could be temporary.
U.S. shale output in the Permian reportedly peaked at 5.73 million barrels per day in October 2025 and has since declined. In response, merger talks between Devon Energy and Coterra Energy are reportedly advancing, potentially creating a Permian-focused company with a combined market value exceeding $40 billion to improve efficiency in a low-price environment.
Meanwhile, the International Energy Agency has revised its long-term demand forecasts upward, projecting growth to 120 million barrels per day by 2050 without a peak, driven by steady energy use and slower electric vehicle adoption. It also noted accelerated field declines requiring 8 million barrels per day in new supply annually.
Canadian Politics
The Federal Court of Appeal has upheld a 2024 Federal Court decision declaring the 2022 invocation of the Emergencies Act by the Trudeau government unreasonable and unjustified. In a ruling issued yesterday, the appeal court found that Cabinet lacked reasonable grounds to conclude a national emergency existed, as provincial authorities were capable of managing the Freedom Convoy protests, and the measure violated Charter rights. The Act had been invoked on February 14, 2022, to clear Ottawa blockades against vaccine mandates, authorizing actions including bank account freezes and assembly bans. The decision came in response to challenges from the Canadian Constitution Foundation and Canadian Civil Liberties Association, which described it as a vindication of fundamental freedoms. Both groups indicated they would defend the ruling if appealed to the Supreme Court, while the federal government stated it is reviewing the decision and remains committed to public safety.
In other news, Canadian Prime Minister Mark Carney has reduced tariffs on Chinese electric vehicles from 100% to 6.1%, capped at 49,000 imports annually. This diverges from U.S. policies blocking such vehicles and reportedly aims to access Chinese supply chains for domestic EV development. During a visit to Beijing—the first by a Canadian prime minister since 2017—Carney praised progress in bilateral ties and President Xi Jinping’s leadership, seeking to restore and exceed pre-friction trade levels in canola, pork, and seafood after Chinese retaliatory duties. He described the evolving partnership as setting the stage for a “new world order,” phrasing that has caught the attention of many on the Internet. Opposition leaders have warned that the tariff cuts could harm Canada’s auto sector and jobs by flooding the market with cheap imports.
US Politics
Protests in Minneapolis have escalated into riots and violence, including an incident in which an ICE agent shot a Venezuelan national during a traffic stop. Other incidents include destruction of federal vehicles, looting of gear, and theft of a rifle and ammunition from a federal vehicle. Minnesota Governor Tim Walz has activated the National Guard and urged resistance to what he described as a federal occupation, while President Trump has warned of invoking the Insurrection Act to deploy troops if state officials fail to restore order, citing a loss of control amid opposition to deportation operations.
Geopolitics
The Trump administration and Danish officials have agreed to establish a working group for technical talks on the potential U.S. acquisition of Greenland, with meetings scheduled every two to three weeks. President Trump has stated that Greenland holds strategic importance for U.S. national security. Danish officials have emphasized that the working group will address U.S. security concerns while respecting sovereignty red lines against any takeover, amid a fundamental disagreement on acquisition.
Amid these developments, Russia has reportedly intensified its military presence in the Arctic, describing the buildup as a defensive measure while monitoring U.S., Danish, and NATO activities in the area. This comes after troops from Denmark, France, Germany, the United Kingdom, Canada, the Netherlands, Norway, and Sweden have begun arriving in Greenland, with initial deployments landing overnight in Nuuk and Kangerlussuaq via aircraft with transponders disabled. The operation, coordinated from Copenhagen outside NATO channels, reportedly aims to bolster security following rhetoric of the Trump administration.
Meanwhile, Trump has threatened tariffs on countries opposing U.S. acquisition efforts, stating that such measures could be necessary for national security. This follows reported European Parliament considerations to pause a U.S. trade deal in protest.
European Politics
The UK government plans to introduce legislation lowering the threshold for mobilizing its strategic reserve of former armed forces personnel, extending the call-up age from 55 to 65 and changing the activation criteria from “national danger or great emergency” to “warlike preparations.” The changes would affect around 95,000 members and reportedly respond to Russia’s invasion of Ukraine and uncertainties following Trumps reelection. They align with Labour’s pledges to raise defense spending to 2.5% of GDP by 2027 and 3.5% by 2035, alongside a proposed new NATO target of 5% on national security. Opposition figures have raised concerns that the expanded age limit could strain older veterans and evoke impractical mobilization efforts.
Epstein Files
The Department of Justice has moved to block the appointment of an independent monitor for releasing files in the Ghislaine Maxwell case related to Jeffrey Epstein, arguing that federal courts lack authority to enforce the Epstein Transparency Act and that Representatives Ro Khanna and Thomas Massie lack standing to recommend such oversight. The representatives have urged the monitor’s appointment, citing the DOJ’s history of delays in disclosures past the mandated deadline.
Economy
The Department of Justice has launched a criminal investigation into Federal Reserve Chair Jerome Powell over his statements regarding a $2.5 billion Fed building renovation, issuing subpoenas that Powell has described as pretexts to pressure interest rate cuts. The probe marks the first against a sitting Fed chair and has drawn criticism from former Fed leaders Ben Bernanke, Janet Yellen, and Alan Greenspan, as well as economists and Republican senators including Lisa Murkowski and Thom Tillis, who have described it as an assault on central bank independence amid debates over inflation and tariffs. Powell’s term as chair ends in May, but he could remain a governor until 2028, potentially affecting Trump administration reforms. The White House has denied direct presidential involvement in the probe, describing it as a routine legal process to assess potential criminality.
Sources
Trump Administration, Denmark Agree to Technical Talks on Greenland Acquisition
Trump officials & Danish officials have agreed to hold technical talks on the US acquisition of Greenland.
Venezuelan Oil Push Casts Shadow Over Permian Basin Drilling
“It has really cast a shadow over the Permian”
Source | Submitted by PhilH
DOJ Probe of Fed Chair Powell Ignites Backlash Over Central Bank Independence
The Trump administration’s criminal investigation of Federal Reserve Chair Jerome Powell appeared on Monday to be emboldening defenders of the U.S. central bank, who pushed back against President Donald Trump’s efforts to exert more control over the Fed.
Source | Submitted by Walberga
Is the IEA Turning Bullish on Oil? Permian Peak and Demand Revisions Signal a Market Shift
In its latest World Energy Outlook, released on November 12th, 2025, the IEA appears to have made a notable shift in its long-term view of oil demand.
Devon-Coterra Merger Talks Heat Up Permian Consolidation
Coterra Energy is kicking the tires on what would be one of the biggest U.S. shale mergers in years, holding talks about a possible combination with Devon Energy, according to people familiar with the matter.
UK Lowers Bar for Mobilising Reservists as War Preparations Intensify
New rules make it easier to call up reservists for war
Source | Submitted by ian2
Trump’s Insurrection Act Threat Looms as Minneapolis Riots Escalate Over ICE Operations
It is absolutely anarchy.
Shale Pioneer Harold Hamm Halts Bakken Drilling After 30 Years of Activity
“This will be the first time in over 30 years that Harold Hamm has not had an operation with drilling rigs in North Dakota,” he said. “That tells you a whole lot right there: There’s no need to drill it when margins are basically gone.”
Canada’s Carney Embraces ‘New World Order’ with Chinese EV Tariff Cuts
“The world has changed much since that last visit, I believe the progress that we have made in the partnership sets us up well for the new world order,”
DOJ Blocks Epstein File Release, Argues Courts Lack Authority to Enforce Transparency Act
In short, it appears the DOJ’s position is that no court can force them to produce the files.
Trump’s Tariff Threat: Punishing Nations Blocking US Greenland Bid
I may put a tariff on countries if they don’t go along with Greenland, because we need Greenland for national security,
Russia’s Arctic Military Buildup: Staking a Claim in the Greenland Game
Russia’s building up their military in the Arctic and framing it as “defense.”
European Troops Land in Greenland by Night, Signaling Defiance to US Ambitions
Greenland is not for sale.
Government loses appeal on use of Emergencies Act during Freedom Convoy
“We are of the view that Cabinet did not have reasonable grounds to believe that a national emergency existed, taking into account the wording of the Act, its constitutional underpinning and the record that was before it at the time the decision was made.”
Source | Submitted by Barry Silverthorn
In addition to sources submitted by community members, the following were also used in the creation of this report: BBC News, Reuters, The Guardian, Al Jazeera, ABC News, OilPrice.com, CBC News, and Courthouse News Service.
