February 3, 2025 Edition
At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.
- Oil prices ease as US tariffs on Mexico paused for a month
- Summary: Oil prices edged lower after initially rising by more than $1, as the U.S. and Mexico paused tariffs that had been set to take effect. Brent crude futures were down 0.2%, while U.S. West Texas Intermediate crude fell slightly by 0.01%. The tariffs, which threatened supply disruptions, would have impacted U.S. crude imports, especially from Canada and Mexico, raising concerns over rising gasoline prices and energy costs.
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- Vitol expects oil demand to remain robust until 2040
- Summary: Vitol expects global oil demand to stay robust until 2040, primarily fueled by rising consumption in emerging markets. While the transition to renewable energy sources is underway, oil will continue to play a vital role, especially in sectors like transportation, petrochemicals, and heavy industries. The company anticipates that oil demand will remain resilient, even amid challenges posed by energy transitions and environmental considerations.
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- Judge blocks major North Sea oil and gas projects in victory for activists
- Summary: A UK judge temporarily halted a major oil and gas development in the North Sea, ruling that the government’s environmental impact assessment was insufficient. The ruling affects the Sea Lion field, potentially delaying the project led by Harbour Energy, which aims to unlock substantial oil reserves. This decision highlights the ongoing tension between energy expansion and environmental concerns in the UK.
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- US oil refiners look to Latin America, Iraq after Trump tariffs
- Summary: Following the imposition of tariffs on Canadian and Mexican crude oil imports by President Donald Trump, U.S. refiners are seeking alternative heavy crude sources from Latin America and the Middle East. Traders indicate that refiners may turn to countries like Brazil, Guyana, and Iraq to replace the now more expensive neighboring supplies. This shift could lead to longer transportation times and increased costs, potentially affecting fuel prices for consumers.
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- US drilling activity rises, led by Permian Basin surge
- Summary: The U.S. oil rig count increased by 6 to 582 in late January, driven by growth in the Permian Basin, which saw a gain of 5 rigs, reaching 303. Despite the increase, Texas and New Mexico experienced modest growth, with 277 rigs in Texas and 106 in New Mexico. The Permian Basin’s rise is crucial to the nation’s oil output, with the region’s increased drilling activity signaling a recovery after a downturn in recent years.
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- Elk Range Royalties acquires mineral assets in Permian and Eagle Ford
- Summary: Elk Range Royalties has expanded its portfolio by acquiring mineral assets in the Permian and Eagle Ford basins, strengthening its position in key U.S. oil regions. The acquisition, valued at $400 million, adds over 5,000 net royalty acres to its holdings, enhancing future revenue potential. This strategic move is expected to provide stable cash flow and increase Elk Range’s exposure to long-term oil and gas production.
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The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
