Valor, Author at Oil and Gas Outsourcing and Mineral Management

Valor | Energy Connection – Mar. 24, 2025

Posted on March 24, 2025 by Valor

March 24, 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 start the week with a dip
Summary: Crude oil prices declined at the start of the week, with Brent at $71.92 and WTI at $68.06 per barrel, despite two prior weekly gains fueled by U.S. sanctions on Iran and OPEC+ production quota compliance efforts. OPEC+ plans to proceed with a modest April output rollback of 138,000 barrels daily, amid concerns that a potential Ukraine-Russia ceasefire could boost Russian exports and pressure prices further, despite lingering doubts about member compliance with compensation cuts. Speculators increased Brent crude net long positions by nearly 53,000 lots to 206,138, driven by U.S. sanctions on Iran and short covering, according to ING analysts.
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New oil projects set to flood market in 2025
Summary: Global oil supply is set to rise by nearly 3 million barrels per day (bpd) in 2025, the largest increase in a decade, driven by major projects in Kazakhstan, Brazil, and Saudi Arabia, provided oil prices remain above $50 per barrel. However, demand uncertainty persists, with supply overhang projections ranging from 100,000 bpd (EIA) to 600,000 bpd (IEA), as China’s post-pandemic import normalization and sluggish global demand growth raise concerns. Despite this, IEA head Fatih Birol stressed the ongoing need for oil and gas investments to counter field declines and maintain energy security, signaling a shift from previous transition-focused narratives.
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Natural gas continues to see overhead resistance
Summary: Natural gas prices have seen a slight increase but continue to face strong resistance near the key $4 level, which has historically served as both support and resistance. If prices drop below Friday’s lows, they could decline further toward $3.50, signaling a bearish trend, whereas a breakout above $4 may push prices toward $4.20. Market volatility remains high, and seasonal factors such as rising temperatures and increasing storage levels are expected to reduce demand, contributing to further downward pressure. Given the cyclical nature of the market, traders should closely monitor storage reports and demand trends in the coming weeks.
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US oil and gas rigs rise for first time in three weeks, Baker Hughes says
Summary: U.S. energy firms added one oil and gas rig this week, bringing the total to 593, though the count remains 31 rigs (5%) lower than a year ago, according to Baker Hughes. Oil rigs fell by one to 486, while gas rigs increased by two to 102, with Oklahoma’s rig count reaching 53, the highest since May 2023. Despite forecasts of lower crude prices in 2025, the EIA projects U.S. crude output to rise to 13.6 million barrels per day and gas production to increase to 105.2 billion cubic feet per day, driven by a projected 91% increase in gas prices.
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AI boom favors natural gas over coal
Summary: The AI-driven surge in electricity demand is prolonging the operation of some U.S. coal plants, but natural gas remains the primary beneficiary of this growth. Despite President Trump’s efforts to boost coal power, analysts expect natural gas to capture most of the increasing energy needs due to its flexibility and reliability. The EIA projects a 6% rise in U.S. coal generation in 2025 due to higher natural gas prices but anticipates an 8% decline in 2026, while natural gas is expected to maintain steady growth amid rising AI-related power consumption.
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Trump open to extending Chevron’s oil license in Venezuela
Summary: President Trump is considering extending Chevron’s license to produce oil in Venezuela, despite previously stating he would reverse a Biden-era decision allowing its operations there. The Treasury Department had given Chevron until April 3 to wind down activities, but during a White House meeting with CEO Mike Wirth and other oil executives, Trump showed openness to an extension. The administration is also exploring financial penalties for countries engaging in business with Venezuela, while Chevron maintains compliance with U.S. laws and sanctions in its operations.
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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.

Valor | Energy Connection – Mar. 17, 2025

Posted on March 17, 2025March 17, 2025 by Valor

March 17, 2025 Edition

Oil’s oversupply spiral: can prices stay above $60?
Summary: The IEA reports that global crude supply is exceeding demand by 600,000 bpd, pushing oil prices toward the $60-$80 per barrel range, with U.S. production expected to rise by 400,000 bpd to 13.6 million bpd in 2025. Overproduction by OPEC+ members, including Kazakhstan exceeding its quota by 299,000 bpd, and planned U.S. refinery shutdowns of 400,000 bpd are contributing to the surplus. While some analysts predict a prolonged price slump, others caution that demand surprises and inaccurate forecasts could trigger a market correction.
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U.S. natural gas hits 2-week low on record output
Summary: U.S. natural gas futures fell to a two-week low at $4.076 per mmBtu due to record production of 105.9 bcfd, negative Waha Hub prices caused by pipeline maintenance, and mild weather forecasts through April. Despite this, gas stockpiles remain 12% below normal after extreme winter demand, while LNG exports hit a new high of 15.7 bcfd in March. Gas prices at the Dutch TTF and Japan Korea Marker stand at $13 and $14 per mmBtu, respectively, as the U.S. remains the world’s top LNG supplier.
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Oil prices rise after U.S. vows ‘unrelenting’ attacks on Houthis
Summary: Oil prices rose on Monday as U.S. strikes on Yemen’s Houthi rebels heightened supply risks, with WTI crude gaining 1% to $67.84 per barrel and Brent crude rising 1% to $71.30 per barrel. The U.S. pledged continued attacks until Houthi aggression ceases, while China’s new economic stimulus plan further supported crude prices. However, gains were limited by expectations of a Russia-Ukraine ceasefire, which could bring more Russian oil back to the market.
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Goldman Sachs cuts oil price outlook amid oversupply fears
Summary: Goldman Sachs cut its Brent crude forecast for December 2025 by $5 to $71 per barrel, citing slower U.S. economic growth and increasing OPEC+ supply. Analysts warned that tariffs from President Trump’s trade policies could further weaken demand, while OPEC+ may reverse its planned 138,000 bpd supply increase if prices decline. The bank joins other major commodity traders and the IEA in predicting an oversupplied market, despite recent calls for more oil and gas investment.
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U.S. oil, gas rig count unchanged this week
Summary: The U.S. oil and gas rig count remained steady at 592 for the week ending March 14, down 37 rigs (6%) from a year ago, with oil rigs increasing by one to 487 and gas rigs decreasing by one to 100. Despite a projected 73% rise in gas prices in 2025, analysts expect crude prices to remain stable, while the EIA forecasts record-breaking U.S. oil and gas production through 2026. Industry executives at CERAWeek highlighted growing LNG and power demand but warned that infrastructure constraints could challenge future expansion.
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AI to fuel bumper year for M&A in US power sector
Summary: Mergers and acquisitions in the U.S. power sector have surged in 2025, with 27 deals worth $36.4 billion in the first two months, led by Constellation Energy’s $16.4 billion acquisition of Calpine. The boom is driven by soaring electricity demand from AI data centers, with power companies’ stocks rising between 82% and 220% since early 2024, enabling larger deals. Despite regulatory uncertainties, supply chain constraints, and potential labor shortages, institutional investors and private equity firms continue to invest heavily in power infrastructure, with $334 billion in undeployed capital at the end of 2024.
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Valor | Energy Connection – Mar. 10, 2025

Posted on March 10, 2025March 10, 2025 by Valor

March 10, 2025 Edition

Oil prices dip as tariff uncertainty keeps investors on edge
Summary: Oil prices declined on Monday, with Brent crude falling 44 cents to $69.92 per barrel and WTI dropping 40 cents to $66.64, marking WTI’s seventh consecutive weekly loss—the longest streak since November 2023. Market uncertainty stems from U.S. tariff policies affecting major oil suppliers like Canada, Mexico, and China, while potential sanctions on Iranian and Russian oil add volatility. Investors await monthly reports from the International Energy Agency and OPEC for demand and supply forecasts amid ongoing geopolitical tensions.
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States ease laws, offer incentives to attract power plants
Summary: U.S. states are accelerating efforts to build new power plants amid surging electricity demand driven by AI data centers and manufacturing incentives, with some offering financial incentives and deregulating approval processes. Pennsylvania is considering leaving the PJM regional grid to expedite projects, while states like Indiana, Michigan, and Louisiana explore nuclear energy, and Missouri and Kansas compete to attract investments in natural gas plants. Lawmakers and consumer advocates warn that shifting financial risks to ratepayers and deregulating utilities could lead to higher costs and inefficiencies.
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U.S. oil, gas rig count falls
Summary: The US oil and gas rig count fell by 1 to 592 this week, down 30 from the same time last year, with oil rigs remaining at 486 (down 18) and gas rigs decreasing to 101 (down 14). In the Permian Basin, rig count declined by 1 to 304—9 fewer than last year—while Eagle Ford added 1 rig to reach 49, though that’s still 3 less than the previous year. Meanwhile, US crude production averaged 13.508 million barrels per day for the week ending February 28, 2025, with WTI trading at $67.17 per barrel (up 1.22%) and Brent at $70.41 per barrel (up 1.37%).
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“Drill, baby, drill”: natural gas producers eye a boom
Summary: Rising U.S. natural gas prices, up 160% in a year to $4.26 per MMBtu, are driving producers to increase output after months of curtailments in 2024. Depleted inventories—now 25% lower than last year and 11% below the five-year average—along with surging LNG exports and new export facilities like Venture Global’s Plaquemines LNG, are fueling demand. In response, U.S. dry gas production rose 2.1% to 106.2 Bcf/d, and the gas rig count increased by three to 102 rigs as producers capitalize on higher prices.
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U.S. energy chief to seek $20 billion to refill oil reserve, Bloomberg reports
Summary: U.S. Energy Secretary Chris Wright estimates it will take $20 billion and several years to refill the Strategic Petroleum Reserve (SPR) to near capacity, following the sale of nearly 300 million barrels under the Biden administration, which pushed reserves to a 40-year low of 395 million barrels. The SPR, created in 1975 and capable of storing 727 million barrels, would still fall short of full capacity even if the full amount were allocated, as current oil prices would only allow the purchase of about 301 million barrels. While no formal budget request has been made to Congress, the Energy Department acknowledges the challenge of securing such funding amid other priorities.
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New report shows U.S.A oil and gas wages by industry
Summary: TIPRO’s latest State of Energy report shows that in 2024, Crude Petroleum Extraction paid the highest average wage at $227,080—up $4,389 from 2023—while Natural Gas Extraction and Petroleum Refineries paid $176,800 and $172,191 respectively. The national average wage across the U.S. oil and gas industry reached $81,808 in 2024, and direct employment grew to 2,055,516 jobs, an increase of 10,694 from 2023. The report, now in its 10th edition, provides a detailed analysis of wage growth and employment trends across key sectors in the U.S. energy industry.
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Valor | Energy Connection – Mar. 3, 2025

Posted on March 3, 2025March 3, 2025 by Valor

March 3, 2025 Edition

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.
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Congress votes to kill Biden-era methane fee on oil and gas producers
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.
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US drillers add oil and gas rigs for fifth week in a row, Baker Hughes says
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.
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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.
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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.
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U.S. natural gas power expands, complicating climate goals
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.
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Valor | Energy Connection – Feb. 24, 2025

Posted on February 24, 2025February 24, 2025 by Valor

February 24, 2025 Edition

Oil dips on pending Kurdistan supply resumption
Summary: Oil prices declined on Monday, extending last week’s losses, as markets anticipated the resumption of crude exports from Iraq’s Kurdistan region. Brent crude fell 20 cents to $74.23 per barrel, while WTI dropped 28 cents to $70.12 per barrel, following a $2 decline on Friday. Meanwhile, global supply concerns persist as the U.S. and Russia prepare for peace talks on Ukraine, with potential impacts on oil sanctions and seaborne shipments.
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BP to abandon green energy target and ramp up oil
Summary: BP will abandon its plan to expand renewable energy generation 20-fold by 2030, scrapping its target of reaching 50 gigawatts (GW) and maintaining its current 8.2 GW capacity. Under pressure from activist investor Elliott Management, which holds a 5% stake, BP is shifting focus back to fossil fuels, selling 10 U.S. onshore wind farms and spinning off offshore wind assets. The company’s profits fell to $8.2 billion in 2024 from $13.4 billion in 2023, prompting cost-cutting measures, a 5% staff reduction, and slashed executive bonuses.
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US oil and gas rig count hits highest since June, says Baker Hughes
Summary: U.S. oil and gas rigs rose by four to 592 this week, the highest since June, with oil rigs increasing by seven to 488, while gas rigs fell by two to 99, according to Baker Hughes. Despite the rise, the total rig count remains 34 rigs (5%) below last year’s level. The EIA forecasts U.S. crude output to grow from 13.2 million barrels per day (bpd) in 2024 to 13.6 million bpd in 2025, while gas production is expected to rise to 104.6 billion cubic feet per day (bcfd) in 2025.
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25% royalty rate cap on prime oil and gas land heads to the House
Summary: The New Mexico Senate passed Senate Bill 23 in a 21-15 vote, advancing legislation to raise the maximum royalty rate on prime oil and gas land in the Permian Basin from 20% to 25%. Supporters argue the increase aligns with industry standards for high-value resources, while opponents claim it could harm an industry crucial to New Mexico’s economy. The State Land Office halted leasing top-tier tracts last year in anticipation of the rate hike, and the bill now moves to the House for further debate.
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Feds approve another deepwater oil export terminal off Texas coast
Summary: The U.S. government has approved the GulfLink deepwater oil export terminal off the Texas coast, marking another step in expanding American crude export infrastructure. The terminal will load up to 1 million barrels per day onto the world’s largest tankers, boosting U.S. energy exports. It is part of a broader buildout, including two new pipelines and a 319-acre tank farm. Supporters argue it enhances energy security and economic growth, while critics warn of increased greenhouse gas emissions—estimated at 355,000 to 710,000 tons annually—and potential environmental risks to coastal communities.
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U.S. crude oil inventories increase by 4.6 million barrels
Summary: U.S. crude oil inventories rose by 4.6 million barrels to 432.5 million barrels as of February 14, 2025, 3% below the five-year average, according to EIA data. Refinery inputs averaged 15.4 million barrels per day (bpd) at 84.9% capacity, while gasoline and distillate fuel production stood at 9.2 million bpd and 4.7 million bpd, respectively. Total petroleum inventories increased by 0.2 million barrels, with motor gasoline inventories down by 0.2 million barrels and distillate fuel inventories up by 2.1 million barrels, 12% below the five-year average.
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Understanding Texas House Bill 838: Enhancing Grid Reliability

Posted on February 17, 2025February 18, 2025 by Valor

At Valor, we believe in sharing relevant and timely information that impacts those living in Texas, helping our community stay informed about important legislative updates and industry developments. Texas House Bill 838, introduced on November 12, 2024, by Representative Ron Reynolds, addresses the interconnection of the Electric Reliability Council of Texas (ERCOT) power grid with external grids.

Background

ERCOT manages the electric grid for most of Texas, operating largely in isolation from other regional grids. This independence has advantages, such as reduced regulatory oversight, but also poses challenges, especially during extreme weather events that can strain the grid’s capacity.

Purpose of HB 838

The bill aims to facilitate the interconnection of ERCOT with neighboring power grids. Such interconnections could enhance grid reliability by allowing the import and export of electricity during peak demand periods or emergencies. This would provide access to a broader energy supply, potentially reducing the risk of blackouts and improving overall grid stability.

Potential Benefits

Enhanced Reliability: Connecting with external grids can provide additional power sources during emergencies, reducing the likelihood of blackouts.
Economic Efficiency: Access to a larger energy market may lead to more competitive pricing and cost savings for consumers.
Renewable Energy Integration: Interconnections can facilitate the sharing of renewable energy resources, promoting alternative energy usage.

Considerations and Challenges

While there are several benefits, there are also considerations that must be addressed:

Regulatory and Legal Framework: Establishing interconnections requires navigating complex regulatory environments and agreements between states and grid operators.
Infrastructure Investment: Significant investment in infrastructure is necessary to build and maintain interconnection facilities.
Grid Management: Coordinating operations between different grid systems requires advanced technology and management practices to ensure seamless integration.

Current Status

As of now, HB 838 has been filed and is under consideration. The bill’s progress will depend on legislative priorities, stakeholder input, and further analysis of the potential impacts on Texas’s energy landscape.

Conclusion

HB 838 represents a significant step toward modernizing Texas’s energy infrastructure by exploring the benefits of interconnecting ERCOT with neighboring grids. If enacted, it could enhance grid reliability, economic efficiency, and support the integration of renewable energy sources. However, careful consideration of the associated challenges and thorough planning will be essential to ensure the successful implementation of such interconnections.

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Valor | Energy Connection – Feb. 17, 2025

Posted on February 17, 2025February 17, 2025 by Valor

February 17, 2025 Edition

WTI holds above $70 amid Russia-Ukraine peace talks
Summary: WTI crude oil remains cautiously above $70 as investors await further developments in the Russia-Ukraine peace talks, which could potentially flood the market with more Russian oil and negatively affect prices. Despite President Trump’s efforts to mediate, analysts foresee a decline in prices if the conflict resolves. Additionally, OPEC is reportedly delaying its planned supply increase, offering temporary relief to the market.
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Diamondback nears Permian deal to buy shale producer Double Eagle
Summary: Diamondback Energy is in advanced discussions to acquire Double Eagle Energy IV, a private West Texas oil producer, in a deal potentially exceeding $5 billion. Double Eagle controls over 95,000 net acres in the Midland Basin portion of the Permian Basin, making it one of the largest private equity holdings in the region. This move follows Diamondback’s recent $26 billion acquisition of Endeavor Energy Resources, reflecting its strategy to expand its presence in the Permian Basin.
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US rig count inches up but still trails last year
Summary: U.S. oil rigs have increased by 1, totaling 768 rigs for the week ending February 16, 2025, yet this figure is still lower than the 785 rigs recorded at the same time last year. The Permian Basin shows continued growth, but companies are exercising caution due to economic uncertainties. This slight uptick in rig count comes amid an ongoing recovery effort within the industry, facing challenges in meeting the output seen in the previous years.
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Texas House Bill 838 aims to make power grid interconnections easier
Summary: Texas House Bill 838 aims to facilitate power grid interconnections by requiring facilities under ERCOT to connect with grids in neighboring states. This bill, which follows the power grid failures of February 2021, would allow Texas power generation facilities to purchase wholesale power outside ERCOT, addressing grid reliability issues. However, critics argue that even with these interconnections, extreme weather may still lead to load shedding, as neighboring grids could face their own power shortages.
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Chevron to lay off 20% of workforce as it boosts crude output with fewer rigs
Summary: Chevron is set to lay off up to 20% of its workforce as part of cost-cutting measures to reduce $2-3 billion in expenses by 2026. Despite the cuts, U.S. oil production continues to rise, with a 55% increase since 2014, and Chevron’s Permian Basin output hitting new highs through efficiency improvements. New technologies, like optimized drilling and electric pumps, enable higher output with fewer rigs, while Chevron expects a 9-10% production increase in 2025.
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Trump forms energy council, expands LNG exports, and lifts offshore drilling ban
Summary: President Trump signed an executive order creating the National Energy Dominance Council to boost domestic oil and gas production. The administration also approved a major LNG export project in Louisiana, the first such approval under his administration. Additionally, Trump directed the reversal of Biden’s offshore drilling ban and vowed to revive a canceled pipeline to reduce Northeast energy prices by up to 70%.
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Valor | Energy Connection – Feb. 11, 2025

Posted on February 11, 2025February 17, 2025 by Valor

February 11, 2025 Edition

Oil nears 3-day winning streak as traders assess tariffs and sanctions
Summary: Oil prices are on track for a third consecutive daily gain, with U.S. crude futures poised to settle at their highest level in two weeks. This upward trend comes as traders assess the implications of President Trump’s tariff policies and the impact of sanctions on Iran and Russia. Analysts suggest that the market may have overreacted to tariff concerns, noting that the actual effect on oil demand could be limited.
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Europe’s oil demand may rise as gas hits $100 per barrel
Summary: Europe’s oil demand may increase as natural gas prices surge to an oil-equivalent of $100 per barrel, making oil a more cost-effective alternative. The spike in gas prices is driven by supply constraints and higher demand, especially in winter. As industries and power generators seek cheaper fuel options, oil consumption in Europe could see significant growth.
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ConocoPhillips Q4 earnings surpass expectations, driven by the Permian
Summary: ConocoPhillips reported fourth-quarter 2024 adjusted earnings per share of $1.98, surpassing analysts’ expectations of $1.89, though down from $2.40 the previous year. The company’s revenue for the quarter was $14.74 billion, a slight decrease from $15.31 billion in the same period last year. The improved earnings were primarily due to increased oil equivalent production volumes, which averaged 2,183 thousand barrels of oil equivalent per day, up from 1,902 MBoe/d in the prior year.
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House passes bill restricting presidential oil drilling bans
Summary: The U.S. House passed a bill requiring congressional approval before any president can ban oil and gas leasing on federal lands and waters. The bill, which passed with a 225-204 vote, aims to prevent future executive actions like those taken by the Biden administration to limit drilling. Supporters argue it ensures energy security, while opponents claim it undermines environmental protections and presidential authority.
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U.S. drillers add oil and gas rigs for second week in a row
Summary: U.S. drillers increased oil and gas rig counts by 4, reaching a total of 630 rigs, marking the second consecutive week of growth, according to Baker Hughes. The Permian Basin saw the largest increase, adding four rigs, highlighting the resilience of U.S. shale producers. Despite ongoing oil price fluctuations, the uptick reflects sustained investments in exploration and production capacity, with drillers continuing to expand operations in key shale regions like the Permian.
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BP vows ‘fundamental reset’ in strategy as profit plunges
Summary: BP CEO Murray Auchincloss announced a “fundamental reset” in the company’s strategy, likely shifting focus from renewable energy to increased investment in oil and natural gas production. BP’s 2024 earnings showed a significant drop, with adjusted profit falling by 60% in Q4 and annual profit dropping to $8.9 billion. Analysts believe BP’s previous green strategy, initiated under former CEO Bernard Looney, led to underperformance, and the company is now under pressure from investors, including Elliott Investment Management.
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Valor | Energy Connection – Feb. 3, 2025

Posted on February 3, 2025February 3, 2025 by Valor

February 3, 2025 Edition

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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Valor | Energy Connection – Jan. 27, 2025

Posted on January 27, 2025January 27, 2025 by Valor

January 27, 2025 Edition

President Trump’s Executive Orders to Unleash American Energy
Summary: President Trump signed the “Unleashing American Energy” executive order on January 20, 2025, declaring a national energy emergency to accelerate U.S. fossil fuel production. The order seeks to streamline permitting, revoke specific environmental regulations, and remove the electric vehicle mandate. These measures aim to boost energy independence, economic growth, and domestic energy security.
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Will Trump’s executive order revive the Keystone XL pipeline?
Summary: President Trump’s recent executive order reverses the cancellation of the Keystone XL pipeline permit, opening the door for its potential revival. However, the pipeline’s developer, South Bow Corp., has stated that it has no plans to restart the multibillion-dollar project. With permits expired and sections of the pipeline dismantled, any attempt to move forward would require starting the process from scratch.
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U.S. oil and gas rig count hits lowest since 2021
Summary: U.S. energy firms reduced the number of oil and gas rigs by four to 576, marking the third consecutive week of declines, with the rig count at its lowest since December 2021. Oil rigs fell by six to 472, while gas rigs rose by one. Despite ongoing declines in rig activity, U.S. crude output is projected to increase in 2025, and a rise in natural gas prices is expected to boost drilling activity.
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Geothermal energy recognized as key resource in new U.S. order
Summary: President Trump issued an executive order declaring an energy emergency and designating geothermal energy as a key domestic resource. This move aims to promote reliable, climate-friendly electricity by using technologies similar to oil and gas. The administration hopes this will encourage bipartisan support and boost geothermal energy growth.
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Trump urges OPEC to lower oil prices amid Russia tensions
Summary: Oil prices dropped following Donald Trump’s call for OPEC to lower prices in an effort to reduce Russia’s oil revenues and accelerate the end of the war in Ukraine. Despite Trump’s threats of sanctions, OPEC has not reacted yet, continuing its plans to increase output in April. Analysts have differing views on the impact of sanctions on Russian oil production, with some expecting a limited effect due to high freight rates and discounted Russian oil.
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Diversified energy to acquire Maverick Natural Resources for $1.3 billion
Summary: Diversified Energy has agreed to acquire Maverick Natural Resources for approximately $1.3 billion, including debt, marking its largest acquisition to date. This deal will enhance Diversified’s presence in the Permian Basin, a leading U.S. oil-producing region, by adding Maverick’s operations in Texas and Oklahoma. The combined company is expected to produce substantial amounts of oil equivalent daily, with Diversified’s CEO, Rusty Hutson Jr., continuing to lead the merged entity.
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