Valor | Energy Connection – Mar. 3, 2025

March 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 stable as tariff and Ukraine uncertainty dominates sentiment
• Summary: Oil prices remained stable on Monday, with Brent crude rising 31 cents to $73.12 per barrel and WTI up 25 cents to $70.01, after posting their first monthly decline since November. Investors monitored geopolitical tensions as Ukrainian President Zelenskiy sought to repair ties with Trump, while U.S. tariffs on Canada and Mexico, set to take effect Tuesday, raised concerns over economic and oil demand growth. Analysts expect Brent to average $74.63 per barrel in 2025, with potential impacts from U.S. sanctions, supply levels, and a possible Russia-Ukraine peace deal.
• Read more

1. Congress votes to kill Biden-era methane fee on oil and gas producers
2. Summary: The Republican-controlled Congress voted to repeal the Biden-era methane fee on oil and gas producers, which was set to charge $900 per ton of excess methane emissions, increasing to $1,500 by 2026. The repeal, passed in a 52-47 Senate vote after a similar House decision, now awaits President Trump’s expected approval, nullifying a key climate policy aimed at cutting 1.2 million metric tons of methane emissions by 2035. While the oil industry praised the repeal as a win for energy production, critics argue it benefits the worst polluters and undermines efforts to curb a potent greenhouse gas.
3. Read more

1. US drillers add oil and gas rigs for fifth week in a row, Baker Hughes says
2. Summary: U.S. energy firms added one oil and gas rig this week, marking the fifth consecutive weekly increase, the longest streak since May 2022, bringing the total count to 593, according to Baker Hughes. Despite this rise, the count remains 36 rigs (6%) lower than a year ago, with oil rigs down by two to 486 and gas rigs up by three to 102. In February, the total rig count increased by 11, the largest monthly gain since November 2022, even as companies plan to cut spending by around 1% in 2025 compared to 2024.
3. Read more

• Crude suffers worst month since September
• Summary: Oil prices dropped nearly 4% in February, marking their worst monthly performance since September, as escalating U.S. tariffs weakened investor confidence and clouded energy demand. West Texas Intermediate (WTI) settled at $69.76 per barrel, down 3.8% for the month, while Brent crude fell to $73.18 per barrel, with the more-active May contract declining to $72.81. The market was further pressured by weak economic data, algorithmic short-selling, uncertainty surrounding U.S.-China-Mexico trade tensions, and the potential restart of pipeline exports from Iraq’s Kurdistan region.
• Read more

• Trump’s tariffs threat hits Canada’s oil and gas drillers
• Summary: Canada’s oilfield drilling sector is slowing due to U.S. President Donald Trump’s proposed 10% tariff on the 4 million barrels per day (bpd) of Canadian crude exported to the U.S., which could stall the industry’s recovery. TD Cowen cut its 2025 Canadian rig count forecast by 5% to 175 active rigs and downgraded stocks like Precision Drilling (PD.TO) and Ensign Energy Services (ESI.TO) from “buy” to “hold.” Retaliatory tariffs from Canada could further raise costs for drilling inputs, such as sand used in hydraulic fracturing, impacting smaller producers more than larger oil companies with set budgets.
• Read more

1. U.S. natural gas power expands, complicating climate goals
2. Summary: A surge in electricity demand from tech companies, particularly those in the AI sector, is driving increased investment in natural gas-fired power plants in the U.S., complicating efforts to reduce greenhouse gas emissions. While some firms are pursuing renewable energy sources like solar, wind, and battery storage, many utilities are favoring natural gas for its cost-effectiveness and reliability. Analysts now predict a larger and longer-lasting role for gas-fired power, with its growth accelerating beyond previous expectations.
3. Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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.