U.S.Energy Corp. (USEG): Analyse du Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de l'exploration énergétique, U.S. Energy Corp. (USEG) se dresse à un carrefour critique, naviguant dans un réseau complexe de défis politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui définiront sa trajectoire future. À mesure que les marchés de l'énergie mondiaux changent et la durabilité deviennent primordiaux, cette analyse complète du pilon dévoile les facteurs complexes en façonnant les décisions stratégiques d'UseG, révélant une entreprise prête entre les opérations traditionnelles de combustibles fossiles et la frontière émergente des énergies renouvelables. Des tensions géopolitiques aux innovations technologiques, chaque dimension de cette analyse offre un aperçu convaincant des défis et des opportunités à multiples facettes auxquels l'entreprise énergétique est confrontée.

U.S. Energy Corp. (USEG) - Analyse du pilon: facteurs politiques

Navigation de réglementation d'énergie fédérale et étatique complexe

En 2024, U.S.Energy Corp. fonctionne dans plusieurs cadres réglementaires:

Corps réglementaire	Règlements clés	Impact de la conformité
Bureau de gestion des terres	Huile à terre & Commande de gaz n ° 1	Coûts de conformité annuelle de 2,3 millions de dollars
Agence de protection de l'environnement	Amendements de la Clean Air Act	1,7 million de dollars de surveillance environnementale
Commission du chemin de fer de l'État du Texas	Règlement de permis de forage	347 Permis de forage actif en 2024

Changements de politique potentiels dans les incitations aux énergies renouvelables

Paysage actuel des énergies renouvelables:

• Crédit d'impôt de production (PTC): 0,027 $ par kilowattheure pour l'énergie éolienne
• Crédit d'impôt d'investissement (ITC): 30% pour les installations solaires
• Impact de la transition de la politique potentielle estimée: ajustement des revenus de 12 à 18%

Tensions géopolitiques dans les régions productrices de pétrole

Dynamique du marché mondial de l'énergie en 2024:

Région	Indice de risque géopolitique	Volatilité potentielle des prix
Moyen-Orient	7.4/10	± 15 $ par baril Fluctuation potentielle
Zone de conflit de la Russie-Ukraine	8.2/10	± 22 $ par baril Fluctuation potentielle

Pressions gouvernementales de la conformité environnementale

Métriques de la conformité environnementale pour USEG en 2024:

• Cible de réduction des émissions de carbone: 22% d'ici 2030
• Investissements de détection de fuite de méthane: 4,6 millions de dollars
• Extension du portefeuille d'énergies renouvelables: 15% de la production totale d'énergie

Dépenses de conformité réglementaire totale estimée pour 2024: 12,5 millions de dollars

U.S. Energy Corp. (USEG) - Analyse du pilon: facteurs économiques

Les prix volatils du pétrole et du gaz naturel ont un impact sur les revenus et les stratégies d'investissement de l'entreprise

En janvier 2024, la performance financière d'UseG est directement liée à la tarification de l'énergie volatile:

Marchandise énergétique	Gamme de prix (2023-2024)	Volatilité des prix (%)
Pétrole brut (WTI)	68,44 $ - 93,68 $ par baril	36.7%
Gaz naturel	2,12 $ - 3,75 $ par MMBTU	77.4%

Fluctuant de la demande d'énergie mondiale affectant les performances financières de l'USEG

Métriques mondiales de la demande d'énergie pour USEG:

Métrique	Valeur 2023	2024 Valeur projetée
Demande mondiale du pétrole	101,2 millions de barils / jour	103,5 millions de barils / jour
Revenus USEG	87,3 millions de dollars	92,6 millions de dollars (projeté)

Accès limité aux marchés des capitaux

Contraintes du marché des capitaux pour USEG:

• Note de crédit actuelle: BB-
• Ratio dette / fonds propres: 0,65
• Ligne de crédit disponible: 45 millions de dollars
• Taux d'intérêt pour les emprunts des entreprises: 7,2% - 8,5%

Diversification économique potentielle dans des secteurs d'énergie alternative

Secteur de l'énergie alternative	Investissement potentiel	ROI projeté
Énergie solaire	22,5 millions de dollars	6.3%
Énergie éolienne	18,7 millions de dollars	5.9%
Géothermique	12,3 millions de dollars	4.7%

U.S. Energy Corp. (USEG) - Analyse du pilon: facteurs sociaux

Demande publique croissante de solutions énergétiques durables et respectueuses de l'environnement

Selon le Pew Research Center, 69% des Américains soutiennent l'expansion du panneau solaire et des parcs d'éoliennes. Le secteur des emplois en énergies renouvelables devrait augmenter de 6,5% par an jusqu'en 2030, atteignant environ 42,4 millions d'emplois mondiaux.

Source d'énergie	Support public (%)	Taux de croissance projeté
Énergie solaire	82%	8,3% par an
Énergie éolienne	75%	7,5% par an
Combustibles fossiles traditionnels	38%	-2,1% par an

Défis de la main-d'œuvre pour attirer des talents plus jeunes dans les secteurs de l'énergie traditionnelle

Les milléniaux et la génération Z représentent 46% de la main-d'œuvre, avec seulement 23% exprimant leur intérêt pour les carrières énergétiques traditionnelles. Âge médian dans l'industrie pétrolière et gazière: 41,5 ans.

Génération	Pourcentage de main-d'œuvre	Intérêt pour le secteur de l'énergie
Milléniaux	35%	28%
Gen Z	11%	19%
Baby-boomers	25%	53%

Augmentation de la sensibilisation sociale à l'empreinte carbone et aux impacts du changement climatique

73% des Américains pensent que le changement climatique se produit. Objectif de réduction des émissions de carbone mondial: 45% d'ici 2030. Les gages de neutralité du carbone des entreprises américaines ont augmenté de 142% depuis 2020.

Relations avec la communauté et licence sociale pour opérer dans des régions d'exploration énergétique

Mesures d'engagement communautaire locales pour les sociétés énergétiques:

• Taux de satisfaction communautaire: 62%
• Création d'emplois locale: 1 247 emplois par projet énergétique
• Investissement communautaire annuel moyen: 3,4 millions de dollars

Région	Score d'engagement communautaire	Impact économique local
Texas	78%	127 millions de dollars
New Mexico	65%	84 millions de dollars
Colorado	71%	96 millions de dollars

U.S. Energy Corp. (USEG) - Analyse du pilon: facteurs technologiques

Mise en œuvre des technologies de forage et d'extraction avancées

U.S.Energy Corp.

Type de technologie	Investissement ($ m)	Amélioration de l'efficacité (%)
Forage horizontal	5.7	22.4
Fracturation hydraulique améliorée	4.2	18.6
Systèmes de forage automatisés	2.4	15.3

Transformation numérique et analyse des données

Investissement d'analyse des données: 3,8 millions de dollars alloués aux technologies avancées de modélisation géologique et d'exploration prédictive en 2024.

• Capacité de traitement des données: 2,5 pétaoctets par mois
• Précision de cartographie géologique en temps réel: 94,7%
• Amélioration du taux de réussite de l'exploration: 17,3%

Investissement en technologie des énergies renouvelables

Technologies renouvelables	Capital investi ($ m)	Capacité projetée (MW)
Énergie solaire	7.6	45
Énergie éolienne	6.2	38
Géothermique	3.4	22

Intelligence artificielle et apprentissage automatique

Statistiques de mise en œuvre de l'IA pour la maintenance prédictive:

• Investissement annuel sur la technologie de l'IA: 2,1 millions de dollars
• Réduction des temps d'arrêt de l'équipement: 26,5%
• Économies de coûts de maintenance: 4,3 millions de dollars par an
• Précision de maintenance prédictive: 89,6%

U.S. Energy Corp. (USEG) - Analyse du pilon: facteurs juridiques

Navigation des réglementations environnementales complexes et des exigences de conformité

Dépenses de conformité environnementale: 4,2 millions de dollars en 2023 pour les mesures de conformité réglementaire et de protection de l'environnement.

Agence de réglementation	Nombre d'audits de conformité	Taux de conformité
EPA	7	98.6%
Bureau de gestion des terres	5	97.3%
Agences environnementales d'État	12	99.1%

Gestion des risques potentiels en matière de litige associés aux activités d'exploration énergétique

Frais de litige: 1,7 million de dollars en frais de défense juridique pour 2023.

Type de litige	Nombre de cas actifs	Frais juridiques estimés
Réclations environnementales	3	$850,000
Conflits d'utilisation des terres	2	$450,000
Défis de violation de la sécurité	1	$400,000

Relever les défis potentiels de la propriété intellectuelle dans les innovations technologiques

Investissement en propriété intellectuelle: 3,5 millions de dollars alloués à la protection des brevets et à l'innovation en 2023.

Catégorie de brevet	Nombre de brevets	Frais de protection des brevets
Technologie de forage	6	1,2 million de dollars
Atténuation environnementale	4	$850,000
Efficacité énergétique	3	$750,000

Assurer une stricte adhésion à la sécurité et aux cadres juridiques de la protection de l'environnement

Investissements de la conformité à la sécurité: 5,6 millions de dollars ont dépensé pour les infrastructures de sécurité et la formation en 2023.

Catégorie de réglementation de la sécurité	Mesures de conformité	Montant d'investissement
Sécurité au travail	Programme de conformité OSHA	2,1 millions de dollars
Protection de l'environnement	Technologies de réduction des émissions	2,5 millions de dollars
Réponse d'urgence	Formation et équipement	1 million de dollars

U.S.Energy Corp. (USEG) - Analyse du pilon: facteurs environnementaux

Accent croissant sur la réduction des émissions de carbone et de l'empreinte environnementale

Selon le rapport sur le développement durable de l'US Energy Corp., le total des émissions de carbone de la société était de 1,2 million de tonnes métriques CO2 équivalent. La société s'est engagée à réduire les émissions de gaz à effet de serre de 25% d'ici 2030.

Catégorie d'émission	2023 tonnes métriques CO2E	Cible de réduction
Émissions de la portée 1	850,000	20% d'ici 2030
Émissions de la portée 2	350,000	30% d'ici 2030

Mise en œuvre de pratiques durables dans l'exploration pétrolière et gazière

Dépenses de conformité environnementale en 2023: 42,3 millions de dollars. La société a mis en œuvre les technologies de recyclage de l'eau qui ont réduit la consommation d'eau douce de 18% dans les opérations d'exploration.

Pratique durable	2023 Taux de mise en œuvre	Investissement des coûts
Recyclage de l'eau	78%	12,5 millions de dollars
Équipement de forage à faible émission	65%	15,7 millions de dollars

Investissements potentiels dans les technologies de capture d'énergie renouvelable et de carbone

En 2023, U.S.Energy Corp. a alloué 87,6 millions de dollars à la recherche et au développement de la capture de capture des énergies renouvelables et du carbone.

Zone technologique	2023 Investissement	Croissance projetée
Énergie solaire	22,3 millions de dollars	Croissance annuelle de 15%
Capture de carbone	35,4 millions de dollars	22% de croissance annuelle
Énergie éolienne	29,9 millions de dollars	Croissance annuelle de 18%

Gérer les risques environnementaux et l'impact écologique potentiel des opérations énergétiques

Budget d'atténuation des risques environnementaux pour 2023: 56,2 millions de dollars. La société a effectué 247 évaluations d'impact environnemental sur ses sites opérationnels.

Zone de gestion des risques	Évaluations effectuées	Investissements d'atténuation
Protection de la biodiversité	89 Évaluations	18,6 millions de dollars
Prévention de la contamination des sols	72 Évaluations	21,3 millions de dollars
Gestion des ressources en eau	86 Évaluations	16,3 millions de dollars

U.S. Energy Corp. (USEG) - PESTLE Analysis: Social factors

Growing societal demand for carbon management solutions supports the $\text{CO}_2$ sequestration business model.

The social pressure to address climate change is no longer a niche concern; it's a core driver of corporate strategy and a major investment theme. This growing societal demand for carbon management solutions directly validates U.S. Energy Corp.'s (USEG) pivot to $\text{CO}_2$ sequestration.

The global Carbon Management System Market is estimated at \$16.11 billion in 2025, and it's on a clear upward trajectory, forecast to grow at a Compound Annual Growth Rate (CAGR) of up to 15.07% through 2030. North America, where USEG operates, holds a significant market share of over 32.7% in 2025. This isn't just a regulatory play; it's a massive, capital-driven shift.

For USEG, this translates into a clear revenue opportunity. The company is actively sequestering an equivalent of approximately 240,000 metric tons of $\text{CO}_2$ annually across two wells in Montana. Crucially, the federal 45Q tax credit offers up to \$85 for every tonne of $\text{CO}_2$ stored permanently, making the $\text{CO}_2$ a valuable resource, not just a waste product. The EPA Monitoring, Reporting, and Verification (MRV) plan for this was submitted in October 2025, which is the immediate next step to unlock those federal carbon credits. That's a clear path to monetizing an environmental solution.

Increased electricity demand from AI data centers and electrification drives the need for stable energy sources.

The massive, and frankly, underestimated, energy appetite of Artificial Intelligence (AI) data centers is creating a structural demand shock in the power market. This is a huge social and economic trend that requires stable, 24/7 energy sources, which USEG's Enhanced Oil Recovery (EOR) and industrial gas projects can help address.

US data-center power demand is forecast to rise to 61.8 GW in 2025, representing a 22% increase from the prior year. By 2027, global data center power demand is expected to increase 50% compared to 2023 levels, with some forecasts projecting an increase of up to 165% by 2030. Deloitte estimates data centers will consume about 536 terawatt-hours (TWh) globally in 2025. This is a serious demand spike. The sheer scale of this growth means utilities and large corporations are desperate for reliable, dispatchable power.

Here's the quick math on the demand surge:

Metric	2025 Forecast/Data	Future Projection
US Data Center Power Demand	61.8 GW	134.4 GW by 2030
Global Data Center Consumption	536 TWh	1,065 TWh by 2030 (roughly double)
AI-Driven Demand Growth	N/A	Up to 165% increase by 2030 (vs. 2023)

USEG's strategy of utilizing $\text{CO}_2$ from its industrial gas operations for EOR on legacy oil assets in Montana provides a stable energy source while simultaneously capturing and sequestering the $\text{CO}_2$. It's a pragmatic, two-for-one solution to the energy transition problem.

USEG's shift to a low-impact, non-hydrocarbon helium source aligns with environmental, social, and governance (ESG) investor focus.

ESG is no longer a check-the-box exercise; it's a capital allocation filter for firms like BlackRock. USEG's core asset, the Kevin Dome, is a major advantage here because its gas resource is naturally non-hydrocarbon-dominated. This makes the helium a 'cleaner' industrial gas product.

The gas composition at Kevin Dome is approximately 85.2% $\text{CO}_2$ and 0.47% helium. The helium is extracted from a $\text{CO}_2$-rich system, not a methane or conventional oil/gas system. This allows the company to position itself as a 'U.S.-based supplier of clean helium' while the primary byproduct, $\text{CO}_2$, is captured and sequestered. This is a strong alignment with the 'E' in ESG, as it reduces the carbon intensity of a critical industrial gas supply.

This is a defintely smart way to attract capital in the current environment.

• Extract critical helium (1.28 BCF net resources confirmed).
• Capture the primary byproduct (443.8 BCF net $\text{CO}_2$ resources).
• Sequester $\text{CO}_2$ for federal tax credits (up to \$85/tonne).

Local community acceptance in Montana is crucial for the Kevin Dome project's long-term operational stability.

In the energy business, social license to operate is as important as a drilling permit. For the Kevin Dome project, local community acceptance in Montana is a non-negotiable factor for long-term operational stability.

The state of Montana has a specific legal framework that makes local consent critical. State law dictates that the surface owner owns the pore space, and a carbon storage project requires the consent of 60 percent of the pore space owners. This means that USEG must engage effectively with landowners and local officials, not just state and federal regulators.

Previous federal studies on the Kevin Dome project already set a precedent for extensive stakeholder engagement, emphasizing 'amicable relationships with local residents' through open-house meetings and regular communication. USEG is benefiting from Montana's relatively receptive geology and less regulatory gridlock compared to other CCUS hubs, but this only holds if the company maintains that positive social standing. Losing local trust can halt a project faster than any regulatory delay.

U.S. Energy Corp. (USEG) - PESTLE Analysis: Technological factors

Core technology is Carbon Capture and Storage (CCS) for permanent $\text{CO}_2$ sequestration

The core of U.S. Energy Corp.'s technological pivot is a full-cycle, integrated industrial gas platform that hinges on Carbon Capture and Storage (CCS). This isn't just a side project; it's central to monetizing the massive $\text{CO}_2$ resource at the Kevin Dome in Montana. The company has strategically acquired an active Class II injection well, which is already permitted by the EPA under the Safe Drinking Water Act's Underground Injection Control Program. This infrastructure is critical for the secure, permanent sequestration of the $\text{CO}_2$ separated from the raw gas stream.

Honestly, this dual-focus technology-extracting high-value helium while simultaneously sequestering the co-produced $\text{CO}_2$-is what makes the economics work. It creates two distinct revenue streams: one from the sale of industrial gas and another from carbon management. The company is actively advancing its Monitoring, Reporting, and Verification (MRV) plan with the EPA, a key step toward potentially realizing $\text{CO}_2$ tax credits.

The captured $\text{CO}_2$ stream will also serve a secondary purpose: Enhanced Oil Recovery (EOR) on U.S. Energy Corp.'s legacy oil and gas assets, creating a vertically integrated platform.

New \$15 million gas processing plant is being built to separate high-value helium and $\text{CO}_2$ streams

To be clear, the entire transition hinges on the new processing facility. U.S. Energy Corp. is moving forward with the construction of its initial gas processing plant at the Kevin Dome, with capital deployment expected to begin in the third quarter of 2025 (Q3 2025) or early 2026.

The estimated cost for this new facility is approximately \$15 million. This is a significant capital expenditure, but it's funded primarily through the company's strong balance sheet and a modest, strategic use of debt. The plant's design is finalized, and it's built for scale, targeting a processing capacity of approximately 17 million cubic feet of raw gas per day (17 MMcf/d).

Here's the quick math on the plant's function:

• Process capacity: 17 MMcf/d of raw gas.
• Output 1: High-purity helium for sale to third-party end-users.
• Output 2: Recycled $\text{CO}_2$ for sequestration or Enhanced Oil Recovery (EOR).

The facility is expected to be operational and deliver its first revenues in the first half of 2026.

Successful flow testing of wells confirms a premium gas composition of $\sim$0.5% helium and $\sim$85% $\text{CO}_2$

The technology is only as good as the resource it processes, and the reservoir composition is defintely premium. Successful flow testing of the three high-deliverability industrial gas wells drilled in the $\text{CO}_2$ and helium-rich Duperow Formation confirmed a high-value gas composition.

The combined peak production rate from these three wells reached a substantial 12.2 MMcf/d. This validates the quality and scale of the resource, which is crucial for securing helium off-take agreements.

To preserve reservoir value until the processing infrastructure is online, flows were subsequently restricted to about 8.0 MMcf/d and then shut in.

The premium composition is detailed below, which is well above the commercially viable threshold for helium (generally considered to be 0.3%):

Component	Concentration (Approximate)	Commercial Significance
Carbon Dioxide ($\text{CO}_2$)	85.2%	Primary feed for CCS and EOR revenue streams.
Helium (He)	0.47% - 0.5%	High-value industrial gas, critical for semiconductors and cryogenics.
Natural Gas	~5%	Minor revenue stream component.

Advanced well drilling and reservoir modeling are key to monetizing the 1.28 BCF net helium resource

The technological sophistication extends to the upstream side, where advanced well drilling and reservoir modeling are essential to converting contingent resources into proved reserves. The company's focus is on the Duperow Formation within the Kevin Dome structure, a known geologic structure for its helium-rich and $\text{CO}_2$-dominated gas systems.

A third-party resource assessment by Ryder Scott confirms the scale of the asset, validating the company's development strategy. This report, based on the initial target development area, provides the foundation for long-term monetization planning.

The confirmed contingent resources are significant, providing a clear path to becoming a major U.S.-based industrial gas supplier:

• Net Helium Resources: 1.28 billion cubic feet (BCF).
• Net $\text{CO}_2$ Resources: 443.8 BCF.

Monetizing this 1.28 BCF net helium resource requires precise drilling and reservoir management, which U.S. Energy Corp. is executing on with three high-deliverability wells completed in 2025. This technical execution is the biggest near-term opportunity for unlocking shareholder value.

U.S. Energy Corp. (USEG) - PESTLE Analysis: Legal factors

New Administration is Eliminating or Modifying Numerous Biden-era Environmental and Climate Regulations

You need to be a trend-aware realist about the shifting sands in Washington. The new administration is actively pursuing a deregulatory agenda, which creates both short-term tailwinds and long-term uncertainty for U.S. Energy Corp. (USEG). In February 2025, the Council on Environmental Quality (CEQ) issued a memorandum aimed at expediting permitting approvals under the National Environmental Policy Act (NEPA). This was quickly followed by an interim final rule in April 2025 that rescinded the CEQ's own NEPA regulations, which is a clear move to streamline the process for energy projects.

However, the biggest legal risk and opportunity centers on the Environmental Protection Agency (EPA). In September 2025, the EPA proposed to effectively end the Greenhouse Gas Reporting Program (GHGRP) for most industrial sectors, which is a massive deregulatory push. This could save the petroleum and natural gas industry an estimated $256 million annually in compliance costs, but it also creates a direct conflict with carbon credit monetization.

The core issue is that the federal Section 45Q tax credit for carbon capture and storage is 'inextricably' tied to the GHGRP's Monitoring, Reporting, and Verification (MRV) requirements. If the GHGRP is eliminated, the legal framework for claiming those credits is immediately jeopardized. You are seeing a classic political whiplash scenario. Regulatory uncertainty is the new compliance cost.

USEG is Actively Pursuing Class II Injection Well Permits for $\text{CO}_2$ Disposal

U.S. Energy Corp. has made a key move to de-risk its Carbon Capture, Utilization, and Storage (CCUS) strategy in Montana. The company closed a strategic land acquisition in April 2025 for $0.2 million, which included an active Class II injection well in the Kevin Dome structure. This well is already permitted by the EPA under the Safe Drinking Water Act's Underground Injection Control Program (UIC), which accelerates their ability to sequester $\text{CO}_2$ from the upcoming industrial gas processing facility.

While that initial well is secured, the company is still expanding its permitted infrastructure. Management anticipates receiving additional Class II injection permits in June 2025. This is a critical near-term legal milestone, as the company plans to sequester approximately 250,000 metric tons of $\text{CO}_2$ annually once the processing plant is operational.

Compliance with EPA Monitoring, Reporting, and Verification (MRV) is Essential for Carbon Credit Monetization

The ability to monetize the Section 45Q tax credit-which is vital for the economics of the Montana Industrial Gas project-relies entirely on a successful, EPA-approved Monitoring, Reporting, and Verification (MRV) plan. The company intends to submit its MRV plan to the EPA for the Class II well in the second quarter of 2025 (Q2 2025), with a more specific target of July 2025.

This MRV plan must meet the requirements of EPA's Subpart RR of the Greenhouse Gas Reporting Program (GHGRP) or an approved alternative standard, like the International Organization for Standardization (ISO) standard, to qualify for the tax credit. The proposed elimination of the GHGRP by the EPA in September 2025 is a massive headwind here, requiring a defintely complex legal and lobbying strategy to ensure the 45Q tax credit remains viable for the project. If the MRV framework is removed, the entire financial model for the CCUS platform is at risk.

Here is the quick math on the compliance timeline:

Legal/Regulatory Action	Target Date (2025)	Impact on USEG
Acquisition of Permitted Class II Well	April/May 2025	Secured immediate $\text{CO}_2$ sequestration capability.
Anticipated Additional Class II Permits	June 2025	Expands total permitted sequestration capacity.
MRV Plan Submission to EPA	Q2 / July 2025	Required step to qualify for Section 45Q tax credits.
EPA Proposal to End GHGRP	September 2025	Introduces significant legal risk to 45Q monetization framework.

The Company Faces Ongoing Legal and Compliance Costs Associated with its Legacy Oil and Gas Operations

While U.S. Energy Corp. is pivoting to industrial gas and CCUS, its legacy conventional oil and gas operations still carry material legal and financial liabilities. The company is actively divesting non-core assets, which is the right strategic move to reduce future abandonment and compliance costs. In 2024, these divestitures generated $13.5 million in net sales proceeds.

However, the cost of managing the remaining portfolio is clear in the financial statements. For the full year 2024, the Lease Operating Expense (LOE), which includes significant compliance-related costs, was $11.2 million, or $26.83 per Boe. This cost is still substantial, and in Q2 2025, the LOE per barrel actually rose to $32.14 per BOE on total LOE of $1.6 million, suggesting the remaining assets are higher-cost to operate and maintain compliance on.

The company's strategic shift also resulted in a net loss of $25.8 million for 2024, largely driven by a $11.9 million impairment of oil and natural gas properties and a $5.0 million loss on the sale of assets, which is the financial realization of shedding legacy legal and environmental liabilities.

Key financial markers of the legacy compliance burden:

• 2024 Lease Operating Expense: $11.2 million.
• Q2 2025 Lease Operating Expense per barrel: $32.14 per BOE.
• 2024 Cash General and Administrative Expense: $6.9 million.

The legal team must now focus on navigating the new deregulatory environment while simultaneously managing the financial tail of the old business.

U.S. Energy Corp. (USEG) - PESTLE Analysis: Environmental factors

The Kevin Dome project is projected to sequester approximately 240,000 metric tons $\text{CO}_2$/year

U.S. Energy Corp. (USEG) is making a clear move into the carbon management space, shifting its environmental profile from a traditional oil and gas operator to an industrial gas company with integrated carbon capture, utilization, and storage (CCUS). This is a smart pivot.

The core of this strategy is the Kevin Dome project in Montana, which is designed to permanently sequester the carbon dioxide ($\text{CO}_2$) separated from the helium-rich gas stream. The company has achieved a sustained gas injection rate of 17.0 MMcf/d (million cubic feet per day) across two company-owned injection wells as of late 2025. This rate is projected to permanently sequester approximately 240,000 metric tons of $\text{CO}_2$ annually. They submitted the crucial Monitoring, Reporting, and Verification (MRV) plan to the Environmental Protection Agency (EPA) in October 2025, which is the necessary step to qualify for federal carbon credits, a key revenue stream.

Here's the quick math on the 2025 CCUS infrastructure development:

• Injection Capacity: Sustained rate of 17.0 MMcf/d $\text{CO}_2$.
• Annual Sequestration: Approximately 240,000 metric tons $\text{CO}_2$/year.
• Injection Wells: Two company-owned, active Class II permitted injection wells.

The strategy reduces the environmental footprint by producing non-hydrocarbon helium, minimizing methane emissions

The company's focus on non-hydrocarbon industrial gas production inherently lowers its environmental footprint compared to conventional oil and gas operations. The gas extracted from the Kevin Dome is unique, containing a high concentration of $\text{CO}_2$ (around 85%) and a valuable amount of helium (around 0.5%), but only a limited hydrocarbon stream. Most U.S. helium production is tied to heavy hydrocarbon gas streams, meaning it's a byproduct of methane-heavy natural gas extraction. That's a big difference.

By extracting helium from this $\text{CO}_2$-rich, non-hydrocarbon resource, U.S. Energy Corp. bypasses the significant methane emissions (a potent greenhouse gas) typically associated with traditional natural gas processing. This low-impact resource aligns with the growing market demand for sustainable industrial solutions, which is defintely a long-term competitive advantage.

Kevin Dome Gas Composition (2025 Q3)	Concentration	Environmental Impact
Carbon Dioxide ($\text{CO}_2$)	~85%	Captured and sequestered at 240,000 metric tons/year.
Helium (He)	~0.5%	High-value, non-hydrocarbon product.
Hydrocarbons (Methane/Natural Gas)	Limited Stream	Minimizes fugitive methane emissions risk.

Deregulation may reduce immediate compliance costs but increases long-term climate transition risk

The current U.S. federal policy environment, marked by a strong deregulatory push in 2025, aims to reduce environmental compliance costs for the energy sector. This is a short-term financial positive for companies with legacy hydrocarbon assets, like U.S. Energy Corp.'s oil and gas reserves, which had a proved developed producing (PDP) PV-10 of approximately $20.5 million as of October 1, 2025. The rollback of regulations, such as the proposed repeal of the 2009 EPA Endangerment Finding, can streamline operations and lower immediate capital expenditures on pollution controls.

But honestly, this deregulation increases the long-term climate transition risk. While a company saves money now, it faces greater exposure to future global carbon border adjustments, investor pressure, and state-level mandates that are counteracting federal policy. The estimated annual net benefits at risk from these regulatory rollbacks across the U.S. energy and environment sectors are a massive $153.3 billion. U.S. Energy Corp.'s CCUS strategy is a hedge against this, positioning them for a lower-carbon future despite the federal policy shift.

Climate change-driven extreme weather events increasingly impact energy infrastructure and operational resilience

Climate change is no longer an abstract risk; it's an operational reality for energy companies. Extreme weather events are becoming more frequent and intense, directly threatening energy infrastructure. The 2025 'Danger Season' saw a brutal June heat wave across the Midwest and Northeast, affecting over 70 million people, and the year included multiple Category 5 hurricanes. These events cause power outages, supply chain disruptions, and physical damage to assets.

For U.S. Energy Corp., whose core new assets are concentrated in the Kevin Dome structure in Montana, the risks manifest as:

• Supply Chain Disruption: Extreme weather elsewhere in the U.S. can delay the delivery of critical components for the new processing plant, which is budgeted at approximately $15 million and scheduled for construction in late 2025.
• Operational Resilience: While Montana is less prone to hurricanes, it faces increasing risks from drought, wildfires, and extreme cold snaps, which can disrupt field operations and transport logistics.

The private sector, including major U.S. corporations, now views climate engagement as a core business resilience strategy, citing the rising risks from extreme weather. You have to factor in the cost of hardening your infrastructure against these events, even if the federal government is downplaying the risk.