Global Oil Glut Forecast for 2027, U.S. Bets Billions on Gas Power

A forecasted global oil supply glut in 2027 and a massive U.S. investment in natural gas-fired power generation present a mixed outlook for Bakken producers, according to new industry reports.

Goldman Sachs warns that a coming race to rebuild depleted global oil inventories will not prevent a massive supply surplus next year, according to an Oilprice.com report. The investment bank expects a global oil surplus of about 3 million barrels per day (bpd) in 2027. Analyst Samantha Dart noted that while over 1 million bpd of demand will come from global Strategic Petroleum Reserve (SPR) rebuilding, a nearly 2 million bpd surplus would remain.

This glut is anticipated as traffic through the Strait of Hormuz moves toward normalization following a U.S.-Iran memorandum of understanding in mid-June. The closure of that chokepoint earlier this year had trapped flows and driven inventories to multi-decade lows. U.S. SPR stocks are at a 1983 low, and Cushing stocks have crumbled to "operational-stress levels," the report stated.

Simultaneously, major importers are seeking to diversify supply. According to Rigzone, India's state oil refiners plan to reduce their reliance on Middle East crude following the recent supply shock. This could alter long-term global trade flows.

While the oil picture suggests price headwinds, the natural gas outlook for Bakken producers is bolstered by soaring U.S. electricity demand. U.S. companies are set to spend $50 billion on power generation from coal and natural gas this year, the International Energy Agency reported via Oilprice.com. This marks the first time in decades U.S. spending on these fuels outpaces China's.

A data center boom is driving much stronger demand for gas turbines, with U.S. companies ordering 20 GW of gas turbine capacity in Q1 2026 alone. Tight supply has pushed turbine prices from $800 per kWh to over $2,500, according to Rystad Energy. Siemens Energy reported a record quarter for orders, with 40% coming from the U.S.

This surge in domestic gas demand for reliable baseload power, which supports grid stability amid renewable expansion, could provide a floor for natural gas prices. For Bakken operators, whose production includes significant associated gas, stronger domestic gas demand may offer a counterbalance to potential crude oil price softness forecast for next year.