June 23, 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.
- How oil prices are faring after U.S. strikes on Iranian nuclear sites
- Summary: Following U.S. strikes on Iranian nuclear sites, global markets remained steady, with Brent crude up 1.2% to $77.91 and U.S. crude up 1.3% to $74.79. The main concern is a potential Iranian retaliation disrupting the Strait of Hormuz, a waterway for much of the world’s crude, though analysts note this would be “economic suicide” for Tehran. While some experts expect a short conflict and easing prices, others warn a complete shutdown of the strait could send oil prices soaring to $120-$130 per barrel, hurting global consumers.
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- Goldman warns Brent could surge to $110
- Summary: Goldman Sachs warns Brent crude could surge to a peak of $110 per barrel if Iran disrupts the Strait of Hormuz, a significant revision of its previous forecast. This price materializes if flows are cut by 50% for a month and remain 10% lower for 11 months, with Goldman citing a 52% chance of Iran shutting the strait. Following an initial shock, Brent would moderate to $95 in Q4, while current prices show Brent trading over $78 per barrel and West Texas Intermediate at $75.24.
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- US oil rig count down by 1, says Baker Hughes
- Summary: For the week ended June 20, the total U.S. active drilling rig count fell by 1 to 554, marking a continued decline and sitting 34 rigs below the count from the same time last year. The number of oil rigs specifically decreased by 1 to 438, a total that is now 47 rigs lower than the previous year, following a 3-rig drop in the week prior. In contrast, gas rigs fell by 2 to 111, which is still a gain of 13 rigs year-over-year, while the miscellaneous rig count increased by 2, bringing its total count up to 5 active rigs.
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- Iran has an oil card to play. So does the U.S.
- Summary: While an Iranian closure of the Strait of Hormuz, where 20% of world petroleum passes, could push oil to triple digits, the U.S. holds a key weapon in its massive shale energy output. U.S. resilience stems from shifting from importing 14 barrels per capita in 1977 to net exporting 2.5 barrels per capita today, making the nation the world’s largest seller of LNG. Shale’s ability to add 4.2 million barrels a day from 2016-2019 has spurred a 9% rally in a basket of related U.S. oil-and-gas exploration stocks amid the recent tensions.
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- Chevron enters U.S. lithium sector with leasehold acquisitions
- Summary: Chevron entered the U.S. lithium sector by acquiring a 125,000-net-acre leasehold across northeast Texas and southwest Arkansas from two companies. The acquisitions from TerraVolta Resources (providing 100,000 net acres) and East Texas Natural Resources grant access to the high-lithium Smackover formation for a new domestic business. To expand US critical mineral supplies, Chevron will leverage its drilling expertise and utilize advanced direct lithium extraction (DLE) technologies for future production.
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- Democrats, Independents cool on solar and wind energy, poll says
- Summary: An AP-NORC poll shows U.S. support for renewable energy has fallen since 2022, with backing for offshore wind expansion dropping from 59% to 44% and for solar farms from about 66% to 50%. This decline is driven by Democrats and independents, with support for EV tax credits falling among Democrats from ~70% to 58% and plunging among independents from 49% to a mere 28%. However, this has not increased support for fossil fuels, as only one-third of adults favor expanding offshore oil drilling and just one-quarter support expanding domestic coal mining.
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- Texas creating task forces to target Permian Basin oil field thefts
- Summary: To combat oil field thefts in the Permian Basin, Texas enacted new laws costing nearly $5 million to create task forces under the DPS and the state’s Railroad Commission. This addresses a billion-dollar problem, with one operator losing $1.1 million in 2023-24 and an FBI task force estimating $300,000 is lost monthly in stolen tools and pipes. The laws authorize DPS to inspect cargo tanks and increase theft penalties, with fines reaching up to $100,000 for the illegal transport or purchase of petroleum.
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