May 12, 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 jump about 4% on US-China tariff reductions
- Summary: Oil prices surged about 4% as Brent rose $2.08 to $65.99 and WTI climbed $2.05 to $63.07 after the U.S. and China agreed to a 90-day pause on tariffs and cut rates to a 10% baseline. The move raised hopes of ending the trade war and boosted the demand outlook for crude. Talks in Geneva marked the first high-level meeting since the U.S. reimposed global tariffs.
- Read more
- Natural gas futures rally on warmer weather forecast
- Summary: U.S. natural gas futures rose 4.55% to $3.795, hitting a four-week high as forecasts predicted above-normal temperatures through May 18, boosting power sector demand. Despite this rally, strong supply—105.4 Bcf/d, up 5.1% YoY—and a 104 Bcf storage injection, 32% above the five-year average, kept bearish pressure intact. Total gas demand fell 6.4% YoY to 66.0 Bcf/d.
- Read more
- U.S. oil and gas rig count drops to lowest since January
- Summary: U.S. oil and gas rig count fell by 6 to 578—the lowest since January—with oil rigs down 5 to 474, according to Baker Hughes. The total rig count is now 4% lower year-over-year, with the Permian down to 285 rigs and Gulf of Mexico rigs at their lowest since September 2021. Despite lower prices, the EIA still projects crude output to rise to 13.4 million bpd in 2025.
- Read more
- Senate reviews Trump EIA pick as agency faces data risk from staff cuts
- Summary: The Senate Energy and Natural Resources Committee is reviewing Tristan Abbey’s nomination to lead the U.S. Energy Information Administration (EIA), which employs 350 staff. The EIA may lose up to 100 staff due to layoffs, resignations, and buyouts, raising concerns about the reliability of key energy reports. Analysts warn that cuts could impact vital data on petroleum, natural gas, and renewables.
- Read more
- Is shell sizing up oil’s biggest power grab yet?
- Summary: Speculation of a Shell-BP megamerger has intensified after BP’s Q1 results disappointed and its shares fell nearly 30% in the past year. A potential deal could create the world’s largest investor-owned oil producer at nearly 5 million boepd, surpassing ExxonMobil. However, analysts warn of major regulatory risks and BP’s liabilities possibly deterring Shell.
- Read more
- Oil and gas industry embraces AI and tech advancements
- Summary: Imperial Oil has embraced AI and robotics, boosting its bottom line by $700 million in 2024, aiming for $1.2 billion by 2027. The company uses self-driving haul trucks and Boston Dynamics’ Spot robots for inspections, while also adopting generative AI for real-time operational insights. AI is enhancing productivity, reducing downtime, and improving maintenance in the oil and gas sector.
- Read more
- NRG Energy bets on growing power demand with $12 billion assets deal
- Summary: NRG Energy will acquire LS Power’s assets in a $12 billion deal to double its power generation capacity to 25 GW, including 13 GW from 18 natural gas plants. The deal, funded with $6.4 billion in cash, $2.8 billion in stock, and $3.2 billion in assumed debt, is expected to close in Q1 2026. NRG raised its EPS growth outlook to 14% and reported Q1 net income of $750 million, up from $511 million.
- 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.
