Author: Valor

May 19, 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 rises as Iran talks stall
• Summary: Oil prices rose as Iran downplayed progress in nuclear talks, with Brent settling above $65 (up over 1%) and WTI topping $62. The market reacted to mixed geopolitical signals and reports of Israeli strikes in Yemen, raising fears of regional conflict. Despite the gains, oil remains down over 10% in 2025 amid trade tensions and rising OPEC+ output.​​
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1. China’s fossil fuels production retreats from record levels
2. Summary: China’s fossil fuel output declined in April from March’s record levels, though year-on-year production remained up: natural gas rose 8.1% to 21.5 bcm, crude oil increased 1.5% to 17.7 million tons, and coal climbed 3.8% to 389 million tons. Crude oil processing fell 1.4% due to seasonal maintenance. Aluminum output rose 4.2%, hitting a daily record amid lower feedstock costs.
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1. Gas prices hit lowest inflation-adjusted levels in years
2. Summary: U.S. gas prices rose 6.1 cents to $3.14 per gallon, still 41 cents lower than a year ago, while diesel climbed 2.9 cents to $3.50. Gasoline inventories fell by 1 million barrels, 3% below the five-year average, and refinery utilization rose to 90.2%. Despite the weekly increase, gas prices remain among the lowest inflation-adjusted levels in years.
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• Turkey finds new natural gas reserve in Black Sea, Erdogan says
• Summary: Turkey has discovered a new 75 billion cubic metre natural gas reserve in the Black Sea’s Goktepe-3 well at a depth of 3,500 metres, valued at approximately $30 billion. President Erdogan stated the find could meet household gas needs for 3.5 years. Daily production at the Sakarya field now reaches 9.5 million cubic metres as Turkey aims to reduce its over 90% energy import reliance and enhance supply security.
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• Oil companies seek protection as Texas weighs fracking water release
• Summary: Texas lawmakers are advancing a bill to shield oil companies, water treatment firms, and landowners from liability when selling treated fracking wastewater for reuse. With oil production generating up to five barrels of wastewater per barrel of oil, the industry sees treatment as a solution to water shortages but demands legal certainty. Critics warn that current data and treatment systems may not fully ensure safety, risking environmental harm.
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1. Baker Hughes reports U.S. rig count down 2 to 576 rigs
2. Summary: The U.S. rig count fell by 2 to 576 last week, with oil rigs down 1 to 473 and gas rigs down 1 to 100, while miscellaneous rigs remained at 3. Year-over-year, the U.S. rig count is down 28 from 604, including 24 fewer oil rigs and 3 fewer gas rigs. Meanwhile, Canada’s rig count rose by 7 to 121, with oil rigs increasing by 6 to 74.
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1. Company founded by Trump’s energy chief predicts shale slowdown
2. Summary: Liberty Energy, founded by former Energy Secretary Chris Wright, anticipates a shale drilling slowdown in H2 2025, expecting a rig count reduction of 30 to 40 and a drop of 10 to 15 frack crews. Currently, about 475 U.S. oil rigs are active, per Baker Hughes data. Despite this, Liberty’s frack crews remain fully contracted through Q2.
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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.

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.
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1. Natural gas futures rally on warmer weather forecast
2. 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.
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1. U.S. oil and gas rig count drops to lowest since January
2. 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.
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• 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.
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• 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.
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1. Oil and gas industry embraces AI and tech advancements
2. 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.
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1. NRG Energy bets on growing power demand with $12 billion assets deal
2. 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.
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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.

May 5, 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 drop as OPEC+ accelerates output hikes, surplus looms
• Summary: Oil prices dropped over 1% Monday, with Brent at $60.39 and WTI at $57.31 per barrel, after OPEC+ announced a June output hike of 411,000 bpd. This brings total increases for April–June to 960,000 bpd, unwinding 44% of prior cuts. Barclays cut its 2025 Brent forecast by $4 to $66, citing surplus concerns and weak demand.
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1. US drillers cut rigs for first time in three weeks, Baker Hughes says
2. Summary: U.S. drillers cut three oil and gas rigs this week, bringing the total to 584, down 21 rigs or 3% from a year ago, according to Baker Hughes. Oil rigs fell by four to 479, while gas rigs rose by two to 101; the Permian basin dropped to 287 rigs, its lowest since December 2021. Crude prices have slumped 20% in 2025, fueling concerns over capital spending and investor returns.
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1. Trump moves to expand offshore drilling, including Gulf of Maine
2. Summary: The Trump administration plans to expand offshore oil and gas drilling, including in the Gulf of Maine, and accelerate permitting by cutting review times from years to weeks. Environmental groups and Maine lawmakers opposed the move, citing threats to fisheries and tourism, while Senators Collins and King proposed a drilling ban. Despite the push, experts note the Gulf has low oil and gas potential due to its geology.
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• Shell is studying merits of BP deal as rival’s stock slumps
• Summary: Shell is evaluating a potential acquisition of BP as BP’s stock has dropped nearly 33% over the past year, reducing its market value to £56 billion — less than half of Shell’s £149 billion. The deal, still in early stages, could become one of the largest in oil industry history but depends on further declines in BP’s stock and oil prices. Shell is also considering smaller acquisitions or share buybacks instead.
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• ExxonMobil continues to prove it’s the best-run company in the oil patch
• Summary: ExxonMobil posted $7.7B in Q1 earnings and $13B in operating cash flow, driven by 4.6M BOE/day production—up 20% from last year. It returned $9.1B to shareholders, including $4.8B in buybacks and $4.3B in dividends, marking its 42nd consecutive annual dividend increase. With $12.7B in annual cost savings and 10 new projects planned, Exxon expects $20B more in earnings by 2030.
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1. New budget cuts clean energy, boosts fossil fuel research
2. Summary: President Trump’s 2026 budget proposal aims to cut over $15 billion in funding for carbon capture and renewable energy programs, shifting focus toward fossil fuels and nuclear energy. It also proposes eliminating $6 billion for electric vehicle chargers and reducing funding for climate programs, including NOAA grants and EPA climate research. The budget signals a major pivot away from climate-focused policies and towards fossil fuel R&D.
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1. U.S. natural gas futures hold onto gains
2. Summary: U.S. natural gas futures rose 0.1% to $3.634/mmBtu as bullish traders returned to the market despite falling oil prices. OPEC+ plans to add 411,000 barrels per day in June, which could pressure U.S. shale and support gas prices long term. However, EBW Analytics warns the short-term rally may falter due to weak seasonal fundamentals.
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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.

April 28, 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.

• Crude oil prices drop on demand fears
• Summary: Crude oil prices fell over $1 per barrel on Monday, with Brent down 1.63% to $65.78 and WTI down 1.82% to $61.87, amid U.S.-China trade war demand fears. Brent crude posted a weekly decline of over 1% despite slight gains earlier. OPEC+ may propose accelerating output hikes on May 5 as bearish sentiment grows.
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1. Big oil and mining giants join the white hydrogen rush
2. Summary: Major companies like Rio Tinto, Fortescue, Gazprom, and BP Ventures are investing in natural hydrogen, with Fortescue funding $21.9 million for expanded exploration. Analysts expect 2025 to be pivotal, though progress remains slow. Critics warn extraction may take decades and be economically challenging.
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1. Trump fast-tracks oil and mining projects
2. Summary: The Trump administration will fast-track oil, gas, and mining permits on public lands, cutting review times from up to two years to just 28 days under emergency powers. The U.S., producing 20 million barrels of oil daily, aims to expand energy projects but faces backlash and lawsuits from environmental groups. Workforce cuts at the Department of the Interior, which employs about 70,000, could hamper oversight.
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• ConocoPhillips plans layoffs after Marathon Oil acquisition
• Summary: ConocoPhillips plans workforce reductions following its $23 billion acquisition of Marathon Oil, aiming to cut costs and streamline operations through its ‘Competitive Edge’ project. The company, which employed about 11,800 people by end-2024, will reveal specific layoff details in Q4. ConocoPhillips is also considering asset sales in Oklahoma to optimize its portfolio.
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• Amazon and Nvidia weigh fossil fuels for AI power
• Summary: Amazon and Nvidia executives stated that all energy options, including fossil fuels like natural gas, are under consideration to meet the growing energy demands of AI. While Amazon focuses on renewable energy, it acknowledges the need for thermal generation in the short term. Nvidia also emphasizes the need for power, though both companies express unease about using coal.
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1. US rig count up slightly amid oil market turbulence
2. Summary: The U.S. rig count increased by three in the week ending April 25, marking a small victory for the Trump administration’s “Drill, Baby, Drill” agenda. Despite this, industry experts warn that oil prices under $60 per barrel and rising steel tariffs may harm profitability. U.S. oil producers face pressure, with production costs rising by up to 14%, and global oil demand growth projections have been revised down to just 730,000 barrels per day.
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1. Canadian drillers pivot to gas as trade war impacts oil prices
2. Summary: Amid ongoing trade tensions, Canadian drillers have shifted focus from oil to natural gas, with drilling licenses for gas wells up 26% in Q1 2025, while oil well licenses dropped by 24%. The move is driven by stable returns from natural gas amid volatile oil prices, trade disputes, and OPEC+ production increases. This shift is expected to continue through 2025-2026, as natural gas presents more favorable investment conditions.
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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.

April 21, 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 dip amid U.S.-Iran talks and tariff concerns
• Summary: Oil prices fell 1.5% on April 21, 2025, with Brent at $66.81 and WTI at $63.58, amid progress in U.S.-Iran nuclear talks that could bring Iranian crude back to the market. Investor sentiment weakened due to tariff-related economic concerns, with a Reuters poll indicating a 50% chance of a U.S. recession in the next 12 months. OPEC+ plans to increase output by 411,000 bpd in May, but rising global supplies and potential quota adjustments are influencing market outlook.​
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1. Natural gas market struggles to find its footing: here’s why
2. Summary: ​U.S. natural gas prices fell nearly 8% last week to $3.249/MMBtu, their lowest since January, despite a smaller-than-expected storage build of 16 Bcf, which was below the five-year average of 50 Bcf. Total gas supply averaged 112.3 Bcf/day, while consumption dropped to 103 Bcf/day due to warmer weather reducing residential and power demand. Record-breaking production and soft near-term demand continue to pressure prices, although strong LNG export demand offers longer-term support.
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1. U.S. natural gas production remained flat in 2024
2. Summary: In 2024, U.S. marketed natural gas production remained nearly flat at 113 Bcf/d, with Permian output rising 12% to 25.4 Bcf/d, offsetting declines in Haynesville and stagnant Appalachia production. Haynesville’s output fell 11% to 14.6 Bcf/d due to reduced drilling amid low prices, while Appalachia’s growth was limited by pipeline constraints. The Henry Hub spot price averaged $2.21/MMBtu in 2024, the lowest on record and 16% below the 2023 average.​
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• ​New offshore leasing program boosts gulf of america energy sector​
• Summary: On April 18, 2025, the U.S. Department of the Interior initiated the 11th National Outer Continental Shelf Oil and Gas Leasing Program, launching a 45-day public comment period to shape future offshore lease sales. The Gulf of America contributes nearly $33 billion annually to the U.S. economy and supports approximately 400,000 jobs. This program aims to bolster American energy security and sustain investment in offshore energy production.​
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• Chevron starts oil production from Ballymore in Gulf of America
• Summary: Chevron has commenced oil and gas production from the Ballymore subsea tieback project in the deepwater Gulf of America. The project is expected to produce up to 75,000 barrels of oil per day through three wells tied back to the existing Chevron-operated Blind Faith facility. Chevron aims to produce 300,000 net barrels per day of oil equivalent from the Gulf by 2026. 
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1. U.S. rig count increases by two as oil prices climb
2. Summary: The U.S. oil and gas rig count rose by two to 585 rigs, with 481 targeting oil and 98 exploring for natural gas. The Permian Basin remained at 289 rigs, down from 318 a year ago. Oil prices also saw an increase, with the regional benchmark ending at $61.16 per barrel and the national benchmark at $64.68 per barrel, both up by $3.18.
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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.

April 14, 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.

• Goldman Sachs expects oil prices to decline through 2026
• Summary: Goldman Sachs expects oil prices to decline through 2026 due to recession risks and rising OPEC+ supply. Brent and WTI are forecast to average $63 and $59 per barrel for the rest of 2025, and $58 and $55 in 2026. Demand growth is projected at only 300,000 bpd by end-2025, while global surpluses may reach 800,000 bpd in 2025 and 1.4 million bpd in 2026. In a slowdown or full OPEC+ reversal scenario, Brent could fall into the $40 range or lower. Beijing’s new 125% tariff on U.S. imports further escalates trade tensions impacting demand.
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1. Russia targets major surge in natural gas exports by 2050
2. Summary: Russia aims to double its natural gas exports by 2030 and triple them by 2050 under its new energy strategy. The country’s gas exports are expected to increase from 146 bcm in 2023 to 293 bcm by 2030, and up to 438 bcm by 2050. Crude oil production is projected to rise slightly, from 531 million metric tons in 2023 to 540 million by 2050, with oil exports remaining steady at around 235 million tons per year. The strategy includes expanding exports to “friendly countries” and boosting Arctic energy development.
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1. Oil rig count slides amid oil price turbulence
2. Summary: The total U.S. rig count fell by 7 to 583 this week, down 34 from last year, with oil rigs dropping by 9 to 480 and gas rigs rising by 1 to 97. U.S. crude production decreased slightly to 13.458 million bpd, 173,000 bpd below the record high in December 2024, while the Permian Basin rig count fell by 5 to 289—27 fewer than last year. Amid OPEC+ output increases and trade tensions, WTI fell to $60.54 and Brent to $63.93, both more than $1 lower than the previous week’s prices.
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1. BP makes deepwater oil discovery in gulf of america
2. Summary: BP has made an oil discovery at the Far South prospect in the deepwater U.S. Gulf of America, 120 miles off Louisiana’s coast, in 4,092 feet of water. The discovery, drilled to 23,830 feet, is co-owned by BP (57.5%) and Chevron (42.5%), with preliminary data indicating a potentially commercial volume. This discovery supports BP’s strategy to increase Gulf of America production to over 400,000 barrels of oil equivalent per day by 2030, as part of its broader plan to reach 2.3-2.5 million boepd global production by 2030.
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• Debate flares over texas’ proposed oil and gas waste rule
• Summary: Texas is updating its oil and gas waste rules for the first time since 1984, proposing new requirements for pits and commercial facilities that manage drilling waste like produced water and cuttings. The Railroad Commission’s draft includes stricter standards for liners, groundwater monitoring, and registration, but critics argue it lacks adequate protections—especially since Texas recorded 712 water contamination violations since 2015 and 3.9 billion barrels of produced water are generated annually in the Permian Basin alone. Industry groups support revisions to reduce costs, while environmental advocates push for stronger safeguards and extended public input.
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• Trump dumps Biden environmental review for 3,244 oil and gas leases
• Summary: The Trump administration will cancel a Biden-era environmental review for 3,244 federal oil and gas leases across seven western states, including Wyoming, issued between 2015 and 2020. This decision follows a decade-long legal and political battle over climate and health implications of drilling, with the Bureau of Land Management (BLM) opting for alternative review processes to meet legal requirements. Industry groups argue the leases’ impacts have been adequately analyzed, while conservationists criticize the rollback, citing ongoing environmental and health concerns.
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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.

April 7, 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 continue to fall
• Summary: Oil prices dropped significantly, with WTI briefly falling below $60 per barrel amid escalating U.S.-China trade tensions. Analysts warn that Trump’s tariffs could lead to industrial slowdowns, further depressing oil demand and potentially lowering prices. Major banks, including Goldman Sachs, have downgraded oil price forecasts, with WTI now projected to average $55 in 2026, reflecting growing recession risks and increasing supply from OPEC+.
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1. China halts U.S. LNG imports for longest since last trade war
2. Summary: China has not imported U.S. liquefied natural gas (LNG) for 60 days—the longest pause since the 400-day halt during the last U.S.-China trade war in 2020—amid escalating geopolitical tensions. As of now, no U.S. LNG shipments are en route to China, with analysts expecting the freeze to continue through 2025 due to China’s tariff hike from 15% to 49% on U.S. LNG. With ample inventories after a mild winter, Chinese buyers under long-term contracts are reselling U.S. LNG to Europe and Asia.
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1. ExxonMobil projects $900M Q1 boost, but crude prices threaten gains
2. Summary: ExxonMobil expects to report a $900 million profit increase in Q1 2025, reaching about $8.3 billion, driven by higher oil and gas prices and improved refining margins. However, falling crude prices—Brent dropping over 10% to around $65 per barrel—and weaker natural gas prices in Q2 could impact future earnings. To mitigate volatility, Exxon plans to invest $140 billion by 2030 into high-margin assets and achieve $7 billion in cost savings, aiming for an additional $20 billion in annual earnings and $30 billion in cash flow.
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• BP CEO outlines strategy shift to boost oil, gas investment
• Summary: BP’s CEO, Murray Auchincloss, announced a shift to prioritize oil and gas, increasing fossil fuel investments by 20% to $10 billion while reducing renewable energy funding by over $5 billion. This strategy aims to boost annual adjusted free cash flow by over 20% and achieve returns on average capital employed above 16% by 2027. The move is part of BP’s effort to reset its approach and drive higher shareholder value while managing energy transition risks.
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• U.S. oil rig count jumps as gas rig count slides
• Summary: The total U.S. oil and gas rig count fell by 2 to 590, down 30 from last year, with oil rigs increasing by 5 to 489, and gas rigs dropping by 7 to 96. Weekly U.S. crude production rose slightly to 13.580 million bpd, nearing the all-time high. Drilling activity in the Permian Basin fell by 3 rigs to 294, 23 fewer than last year, while the Eagle Ford count remained at 48. Oil prices slid sharply due to President Trump’s tariffs and OPEC+’s production hike, with WTI dropping 7.69% to $61.80 per barrel.
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1. Trump administration to hold oil, gas lease sale in Gulf of Mexico
2. Summary: The Trump administration will hold an oil and gas lease sale in the Gulf of Mexico, releasing a notice in June. This sale is part of a five-year leasing plan under Biden, which planned just three Gulf sales, angering the oil industry. The last sale in 2023 raised $382 million, but sales have been delayed by litigation over drilling’s impact on the Rice’s whale. Oil prices recently fell to $65 per barrel due to tariff concerns, further complicating energy companies’ decision to bid on the leases.
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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.

March 31, 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 inches up as investors await Trump’s actions on Russian oil, Iran
• Summary: Oil prices edged up on Monday, with Brent crude rising 0.59% to $73.19 per barrel and WTI gaining 0.68% to $69.83, as investors reacted to President Trump’s threats of 25%-50% secondary tariffs on Russian oil buyers and possible military action against Iran over its nuclear program. Despite initial declines, prices stabilized as analysts debated whether Trump would act on his threats, with UBS noting rising supply risks while IG suggested market skepticism was capping gains. Meanwhile, negotiations to restart Kurdish oil exports through the Iraq-Turkey pipeline stalled due to unresolved payment and contract issues.
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1. Oil and gas execs reveal where they expect WTI oil price to be in the future
2. Summary: The first-quarter 2025 Dallas Fed Energy Survey found that executives from 124 oil and gas firms expect WTI crude oil prices to average $68 per barrel in six months, $70 in a year, $74 in two years, and $82 in five years. The survey also revealed that firms require an average of $41 per barrel to cover operating expenses for existing wells, up from $39 last year, while the breakeven price to profitably drill new wells is $65 per barrel, ranging from $61 to $70 depending on the region. Large firms need $31 per barrel to cover operating expenses and $61 to profitably drill, while small firms require $44 and $66, respectively.
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1. US oil, gas rig count drops first time in 3 weeks – Baker Hughes
2. Summary: U.S. energy firms reduced the total oil and gas rig count by one to 592 for the first time in three weeks, according to Baker Hughes. Oil rigs fell by two to 484, while gas rigs increased by one to 103, bringing the total rig count 5% lower than the same period last year. The Permian Basin saw the largest decline, losing three rigs and dropping to 297, the lowest level since February 2022.
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• Peak Permian? Geology and water say we’re close
• Summary: Some Permian Basin areas have hit geological limits, with the gas-to-oil ratio rising from 34% in 2014 to 40% in 2024, signaling production constraints. U.S. crude output is expected to reach 13.61 million bpd in 2025, but experts foresee a peak between 2027 and 2030. A high water-to-oil ratio—four barrels per barrel of oil—is also driving up costs, challenging long-term output.
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• Trump’s 1st 2025 oil, gas leases net $40M from 34 parcels
• Summary: The U.S. Interior Department reported nearly $40 million in revenue from oil and gas lease sales on public land during the first quarter of 2025, with 34 parcels covering 25,038 acres leased. The sales align with Trump’s Executive Order 14154, promoting American energy dominance, and revenue will be shared between the federal government and states including Montana, North Dakota, New Mexico, Wyoming, and Nevada. These leases, governed by the National Environmental Policy Act, have a 10-year term with a 16.67% federal royalty rate.
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1. BP, Shell, and Exxon signal one thing: Oil isn’t going anywhere
2. Summary: BP, Shell, and Exxon are ramping up oil and gas investments, with BP increasing spending by 25% and Shell targeting 4-5% annual LNG sales growth through 2030. U.S. supermajors like Exxon and Chevron never pivoted away from hydrocarbons—Exxon plans an 18% production boost in five years, while Chevron expands in Kazakhstan and acquires Hess’s Guyana assets. Despite energy transition talks, major oil firms remain focused on fossil fuels, with TotalEnergies balancing diversification while achieving a 14.8% return on capital.
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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.

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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1. New oil projects set to flood market in 2025
2. 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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1. Natural gas continues to see overhead resistance
2. 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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1. Trump open to extending Chevron’s oil license in Venezuela
2. 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.