Author: Valor

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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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 17, 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’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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1. U.S. natural gas hits 2-week low on record output
2. 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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1. Oil prices rise after U.S. vows ‘unrelenting’ attacks on Houthis
2. 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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1. AI to fuel bumper year for M&A in US power sector
2. 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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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 10, 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 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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1. States ease laws, offer incentives to attract power plants
2. 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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1. U.S. oil, gas rig count falls
2. 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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1. New report shows U.S.A oil and gas wages by industry
2. 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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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.

February 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 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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1. BP to abandon green energy target and ramp up oil
2. 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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1. US oil and gas rig count hits highest since June, says Baker Hughes
2. 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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1. U.S. crude oil inventories increase by 4.6 million barrels
2. 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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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.

February 17, 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.

• 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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1. Diamondback nears Permian deal to buy shale producer Double Eagle
2. 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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1. US rig count inches up but still trails last year
2. 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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1. Trump forms energy council, expands LNG exports, and lifts offshore drilling ban
2. 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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