Valor | Energy Connection – June 16, 2025

June 16, 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 fall more than $1 barrel on reports Iran seeks truce with Israel
  • Summary: Oil prices fell 1.3% as Israel-Iran strikes spared key infrastructure, despite initial surges and Friday’s 13% spike. Iran’s gas field saw partial shutdown but Strait of Hormuz flows remained uninterrupted. Iran rejected ceasefire talks amid attacks while OPEC+ holds spare capacity matching Iran’s output.
  • Read more

  1. Iran suspends partial output at major gas field after Israeli attack
  2. Summary: Iran partially suspended production at South Pars, the world’s largest gas field, after an Israeli strike caused a fire, halting 12M cm/day output (4% of Iran’s 275 bcm annual production). The attack marks Israel’s first strike on Iran’s energy sector, escalating tensions that pushed oil prices up 9% Friday. While Iran consumes all its gas domestically due to sanctions, neighboring Qatar exports 77M tonnes annually from the shared field with Exxon and Shell.
  3. Read more

  1. European gas prices rise with Middle East conflict intensifying
  2. Summary: European gas prices rose 2.4% to April highs after Friday’s 4.8% jump as Israel-Iran clashes entered day four, raising fears of Strait of Hormuz disruptions. The key waterway handles 20% of global LNG shipments, though current flows remain unaffected. With Europe in peak stockpiling season, any supply interruption could significantly tighten markets amid escalating Middle East tensions.
  3. Read more

  • Texas governor signs oil theft laws, funds $123M project
  • Summary: Texas Governor Abbott signed 5 bills combating oilfield theft (SB 494/1806, HB 48) and allocated $123M for Midland-Odessa’s Beacon project to boost healthcare and economic growth. The laws create a DPS oilfield theft unit and task force to address rising pipeline thefts in the Permian Basin, which fuels Texas’ economy. Key measures include tax code changes (SB 529) and enhanced law enforcement tools to protect energy infrastructure from organized crime.
  • Read more

  • Baker Hughes reports U.S. rig count down 4 to 559 rigs
  • Summary: U.S. rigs dropped 4 to 559 (oil -9 to 442, gas +5 to 114), marking a 35-rig annual decline. Canada added 2 rigs to 114 (gas +2 to 46), but remains 29 below 2024 levels. Offshore activity held at 13 rigs (-9 y/y). The report shows continued oil sector contraction with U.S. gas rigs up 16 annually while Canadian gas rigs fell 9. North American drilling activity remains depressed versus last year, with U.S. oil rigs down 50 and Canadian oil rigs down 20 year-over-year. The mixed results highlight shifting energy sector priorities amid changing market conditions.
  • Read more

  1. Abu Dhabi-based consortium launches $32b takeover tilt for Santos
  2. Summary: An Abu Dhabi-led consortium (ADNOC/XRG, ADQ, Carlyle) proposed a $32B takeover of Santos at A$8.89/share (28% premium), aiming to boost XRG’s LNG capacity to 20-25Mtpa by 2035. The deal would give ADNOC Asia-Pacific LNG assets (Santos produced 5Mtpa in 2024, could reach 8Mtpa) but faces FIRB scrutiny over energy security concerns. Regulatory hurdles may include domestic gas supply conditions, though counterbids are unlikely given ADNOC’s strategic fit and Santos’ capital needs.
  3. Read more

  1. RRC mapping automation portal now available online
  2. Summary: Texas’ Railroad Commission launched RRC MAP, an online portal requiring oil/gas operators to update real-time gas facility data for power generation supply chains during emergencies. The system shares data with Texas’ Utilities Commission to identify critical infrastructure under SB 3/HB 3648 laws, linking upstream production to power plants. Operators receiving RRC emails must submit requested data, with training materials and compliance procedures available on the RRC website.
  3. Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

What the “Big, Beautiful Bill” Means for Oil, Gas, and EVs

On May 22, 2025, the U.S. House of Representatives passed a sweeping budget reconciliation package known informally as the “Big, Beautiful Bill.” Now under Senate review, the 1,100+ page bill includes a range of provisions that affect multiple energy sectors, including oil and gas, electric vehicles (EVs), and renewable energy.

Here’s a factual summary of how the bill intersects with U.S. energy policy and programs:


Oil and Gas Provisions

  • Drilling Expansion: The bill reinstates and accelerates oil and gas leasing on federal lands and offshore waters. It also shortens permitting timelines for new drilling projects.
  • Regulatory Revisions: Provisions reduce the administrative review period for environmental assessments related to oil and gas activity, in alignment with NEPA (National Environmental Policy Act) reforms.
  • Federal Royalties: The bill freezes current royalty rates for federal oil and gas leases and blocks increases that had been proposed under the Inflation Reduction Act.

Power Generation and Renewables

  • Subsidy Repeals: The legislation repeals or phases out several tax credits and subsidies for renewable energy, including:
    • – The Production Tax Credit (PTC)
    • – The Investment Tax Credit (ITC)
    • – Energy efficiency incentive programs for wind, solar, geothermal, and bioenergy
  • Grid Reliability Provisions: The bill includes funding and directive language for improving power grid reliability, with a focus on dispatchable energy resources, which may include natural gas and coal.

Electric Vehicles (EVs)

  • EV Tax Credit Rollback: The bill repeals the $7,500 federal tax credit for new EV purchases and eliminates additional incentives for used EVs or domestically sourced batteries.
  • Charging Infrastructure: Federal funding for EV charging infrastructure, as outlined in previous legislation, is rescinded or reallocated.
  • Fuel Economy Standards: The bill limits the authority of the EPA and DOT to enforce stricter fuel economy standards through 2035.

  • Carbon Capture: Tax credits for carbon capture and storage (45Q credits) are maintained at reduced levels, and new qualifications are added.
  • Strategic Petroleum Reserve (SPR): The bill includes measures to require minimum capacity levels and outlines approval processes for drawdowns.
  • State Preemption: A section of the bill prevents states from enacting stricter emissions or fuel regulations that exceed federal standards until 2035.

Current Status

As of June 2025:

  • – The bill has passed the House and is awaiting action in the Senate.
  • – Some provisions—particularly around state-level EV mandates and federal land leasing—are expected to be the subject of negotiations or amendments.

After the Senate floor vote

  • The bill has passed the House (May 22), but still requires approval in the Senate. Senators are working under a self-imposed deadline of July 4 for passage via reconciliation.
  • What to watch for:
  • – Whether the Senate can keep true to its target, avoiding delays or entering conference negotiations/
  • – Any major amendment or rollback on contentious provisions (e.g., SALT cap, Medicaid, SNAP, energy credits)
  • – If the Senate introduces substantial changes, the bill may go through a conference process between House and Senate. That could push final passage into July or even August.

Check back soon for further updates as the legislation advances through the Senate.

Contact

Are you ready to transform your oil and gas assets? Contact Valor today to learn how our innovative solutions can elevate your business to new heights.

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.

Title Curative: The Key to Clear Mineral Ownership

Why Clean Records Matter in Mineral Management

When it comes to mineral management, few things are as critical as having clean, accurate title records. Whether you own a single royalty interest or manage a large mineral portfolio, title curative work is essential to ensuring your ownership is properly documented and revenue flows without delay.

What is Title Curative? Title curative is the process of identifying and resolving issues or defects in the chain of title. These defects can include missing documents, unreleased liens, outdated probate records, or improperly executed deeds. Left unresolved, these issues can lead to suspended funds, disputes over ownership, and challenges in lease negotiations.

Common scenarios include cases where an heir has not properly probated a will, where deeds have been recorded incorrectly, or where overlapping interests from historical transfers need clarification. Each of these can block revenue and create confusion if not proactively addressed.

Why It Matters Clean title is the foundation for everything in mineral management. Without it, operators may not pay royalties, you may not receive tax notices, and your asset’s value could be diminished. Title curative ensures:

– You’re properly identified as the rightful owner

– Revenue isn’t held in suspense due to unresolved issues

– Your interests can be leased, sold, or passed on to heirs without legal hurdles

Inaccuracies in title can also impact estate planning, charitable giving, and the ability to pursue legal claims. Ensuring clean title means preserving the full economic and legal benefit of your mineral holdings.

How Valor Helps At Valor, we specialize in identifying and resolving title issues across even the most complex portfolios. Our team of experts work to:

– Review historical records and ownership chains

– Locate missing documentation

– Coordinate with operators and county clerks

-Ensure your ownership is correctly recorded and monetized

We also provide clients with access to digital records through our mineral management platform, mineral.tech®, platform, so they can easily view their asset structure, ownership documentation, and progress on curative work in real time.

Title curative might not be the most visible part of mineral management, but it’s one of the most important. Clean records protect your income, simplify decision-making, and support long-term asset value. At Valor, we make sure your mineral assets are supported by strong documentation and expert oversight—so you can move forward with clarity and confidence.

Contact

Are you ready to transform your oil and gas assets? Contact Valor today to learn how our innovative solutions can elevate your business to new heights.

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.

Lease Management 101: What Every Mineral Owner Should Know

A practical guide to understanding mineral leases, key terms, and how proactive management can protect and maximize your mineral rights.

If you own mineral rights, understanding lease management is essential. It’s not just about signing paperwork—it’s about making informed decisions that directly impact your revenue, your rights, and your long-term asset strategy. Poorly managed leases can result in lost income, missed opportunities, and legal headaches.

What is a Mineral Lease?

A mineral lease grants an operator the right to explore for and produce oil, gas, or other minerals from your property. In exchange, you can receive a bonus payment upfront and ongoing royalties from production. These leases are legally binding agreements and can span years or even decades, so getting them right from the start is crucial.

Key Terms to Understand

Before signing a lease, it’s important to understand the key components:

  • Bonus: A one-time upfront payment made when the lease is signed. This can vary widely based on location, market conditions, and the perceived value of your minerals.
  • Royalty Rate: The percentage of production revenue you’re entitled to. Even a small difference in this rate can have significant long-term financial impact.
  • Lease Term: The initial period granted to begin drilling, often with provisions for extension.
  • Shut-In Clause: A clause that allows an operator to maintain the lease during periods of non-production, typically with minimal royalty payments.
  • Pugh Clause: Ensures non-producing portions of your acreage are not indefinitely tied up under an active lease.
  • Depth Severance: Prevents operators from holding deeper rights they aren’t actively developing.

Risks of Poor Lease Management

Without proper oversight and knowledge, mineral owners may:

– Accept unfavorable terms that reduce income or limit future options

– Overlook critical deadlines, such as lease expirations or renewal windows

– Fail to audit payments, leading to underpaid royalties

– Lose opportunities to re-lease to more competitive operators

Additionally, many owners are unaware of clauses that could either protect or harm their interests, such as surface use agreements or pooling provisions. These details can significantly affect your control and earnings.

How Valor Supports You

Lease management is not just about negotiation—it’s about continual oversight. Our experienced land professionals:

– Review and negotiate lease terms on your behalf to ensure fairness and maximize revenue

– Track renewal dates, production obligations, and expiration timelines

– Ensure all royalty payments are made accurately and promptly

– Organize and maintain your lease portfolio digitally within mineral.tech® for full visibility

– Provide proactive guidance to avoid pitfalls and take advantage of market opportunities

We act as your advocate, bringing deep industry knowledge to each decision and helping you maintain control of your assets. Whether you’re approached with a new lease offer or need support managing multiple legacy leases, Valor ensures you have the information and insight you need to make the best decisions.

Lease management isn’t a one-time task. It’s an ongoing responsibility that requires attention to detail and knowledge of industry practices. With the right partner, mineral leasing can be a strategic asset rather than a source of uncertainty. At Valor, we’re committed to protecting your interests and optimizing your returns every step of the way.

Contact

Are you ready to transform your oil and gas assets? Contact Valor today to learn how our innovative solutions can elevate your business to new heights.

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 – June 9, 2025

June 9, 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 steady ahead of U.S.-China trade talks
  • Summary: Oil prices held steady as investors awaited U.S.-China trade talks in London, with Brent at $66.58 and WTI at $64.64 per barrel. Brent rose 4% and WTI 6.2% last week amid hopes a trade deal could boost global demand. Meanwhile, China’s crude imports fell to a four-month low in May as refiners conducted maintenance and economic data showed slowing export growth and deepening deflation.
  • Read more

  1. Natural gas price outlook – Natural gas gaps lower to start the week
  2. Summary: Natural gas prices opened the week with a gap lower amid weak demand and uncertainty over U.S. exports to Europe. Resistance is noted near $3.85, with a potential breakdown below $3.63 signaling further downside. Seasonal weakness, mild North American weather, and limited demand suggest bearish pressure, with traders eyeing $4.00 as a key supply zone.
  3. Read more

  1. U.S. gas prices hold steady at $3.12 as annual decline continues
  2. Summary: Today’s average U.S. gas price is $3.12 per gallon, unchanged from yesterday, $0.02 lower than last week and last month, and $0.33 less than a year ago. California and Hawaii have the highest prices, while Mississippi and Oklahoma offer the lowest. The EIA forecasts Brent crude will average $74 per barrel in 2025, down from $80 in 2024, with average gas prices expected to fall to $3.20 per gallon as global oil demand growth slows.
  3. Read more

  • U.S. rig count slumps for sixth straight week, Baker Hughes says
  • Summary: The U.S. rig count fell for the sixth straight week, dropping by 4 to 559, the lowest since November 2021, according to Baker Hughes. Oil rigs declined by 9 to 442, while gas rigs rose by 5 to 114, and 3 were classified as miscellaneous. The total count is down 35 rigs, or 6%, from the same time last year, with the Permian Basin, Eagle Ford, and Texas all hitting their lowest levels since November 2021.
  • Read more

  • Oil rises as solid U.S. jobs data pushes algos to drop short bets
  • Summary: Oil prices rose nearly 2%, with West Texas Intermediate settling above $64 a barrel, marking the largest weekly gain since November. Stronger-than-expected U.S. jobs data eased economic slowdown fears, prompting algorithmic traders to reduce short positions from 64% to 9% in WTI. Diesel futures hit a two-week high, while U.S. oil rig counts fell to the lowest in four years amid concerns about weakening global demand and rising OPEC+ output.
  • Read more

  1. In 2024, the United States produced more energy than ever before
  2. Summary: In 2024, U.S. energy production hit a record high of over 103 quadrillion British thermal units, up 1% from 2023. Natural gas led with 38% of total production, followed by crude oil at 27%, which reached a record 13.2 million barrels per day, a 2% increase from 2023. Renewable sources also set records, with solar up 25%, wind up 8%, and biofuels hitting 1.4 million barrels per day, up 6% from the previous year.
  3. Read more

  1. WTI-Brent spread shrinks to 21-month low on U.S. supply concerns
  2. Summary: The WTI-Brent crude spread narrowed to $2.78 per barrel on June 6, its tightest since September 2023, due to U.S. supply concerns from a falling rig count and Canadian wildfires. U.S. futures rose 4.9% while Brent gained 2.75%, with OPEC+ output increases limiting further price growth. The U.S. rig count fell to 559, the lowest since November 2021, and Canadian crude production dropped 7%, contributing to reduced exports and tighter spreads below the typical $4 arbitrage threshold.
  3. Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – June 2, 2025

June 2, 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 despite OPEC+ announcing another sharp production hike
  • Summary: OPEC+ announced a 411,000-barrel-per-day production hike for July, its third consecutive increase, aiming to regain market share and pressure U.S. shale drillers, yet WTI crude futures rose 3% due to geopolitical tensions. Analysts noted the hike was already priced in, with focus shifting to risks like Ukraine’s offensive and potential Russian retaliation, while Jeffries cited supply disruptions in Libya and Canada as bullish factors. Despite OPEC+’s phased cuts since 2024 (totaling 2.2M bpd), WTI rose 4.4% in May to $60.79, with Brent up 1.2% to $63.90, though analysts warn of a potential 10% price drop long-term.
  • Read more

  1. Natural gas prices tick up despite another triple-digit build
  2. Summary: Natural gas prices rose slightly to $3.447/Mcf despite a 101 Bcf storage build, exceeding the 99 Bcf forecast and marking the fifth straight triple-digit weekly increase. Total stocks reached 2,476 Bcf, 11.3% below 2024 levels but 3.9% above the 5-year average, as supply rose to 112.5 Bcf/day and demand dipped to 97.3 Bcf/day. Weak power demand (-4.4% YoY) and mild weather capped gains, though LNG exports edged up to 14.4 Bcf/day.
  3. Read more

  1. Trump officials are visiting Alaska to discuss a gas pipeline and oil drilling
  2. Summary: Three Trump officials visit Alaska to push Arctic oil drilling and an 810-mile LNG pipeline ($44B estimated cost), despite environmental concerns. The trip follows Trump’s order reversing Biden’s Arctic Refuge lease cancellations and aims to secure Asian investments for the gas project. Alaska leaders seek 90% of federal oil royalties as state revenues suffer from low oil prices, while supporting ConocoPhillips’ Willow oil project.
  3. Read more

  • U.S. carbon capture lags as EU surges ahead
  • Summary: The EU now leads CCS development with a mandate requiring oil firms to create 50M tonnes/year CO2 storage by 2030, while U.S. momentum stalls due to political uncertainty threatening IRA tax credits ($85/tonne for CCS, $180 for DAC). Europe’s binding rules provide investor certainty, contrasting with $14B in delayed U.S. clean energy projects, including CCS initiatives. This regulatory shift positions Europe as the new CCS hub, leveraging oil companies’ expertise for decarbonization, as the U.S. risks losing its early advantage.
  • Read more

  • Drilling permits drop as prices fall, signaling industry pullback
  • Summary: Texas drilling permits fell to 570 in April (lowest since 2021), with Midland Basin permits dropping 56% to 133 as WTI prices fell 17% YTD. While Delaware Basin permits rose 28% to 127, analysts expect sustained lower activity as operators adjust to oversupply concerns and OPEC+ output cuts easing. The permit decline signals a production slowdown likely impacting 2026 output, as public and private companies alike throttle back drilling plans.
  • Read more

  1. U.S. supreme court limits regulatory reviews of gas projects
  2. Summary: The U.S. Supreme Court ruled 8-0 to limit environmental reviews for energy projects, barring agencies from assessing upstream/downstream impacts under NEPA. The decision prevents regulators like FERC from studying indirect effects of pipelines, favoring industry groups who called it a “course correction.” Environmental groups criticized the ruling, warning it would fast-track fossil fuel projects while ignoring climate and community impacts.
  3. Read more

  1. U.S. rig count slides for fifth straight week in Baker Hughes survey
  2. Summary: The U.S. rig count fell for the fifth straight week, dropping 3 to 563 (lowest since Nov 2021), with oil rigs down 4 to 461 while gas rigs rose 1 to 99. Permian Basin rigs declined 1 to 278, also a November 2021 low, as the total count fell 37 (6%) year-over-year. August saw a 24-rig monthly decline – the largest drop since August 2023 and third consecutive monthly decrease.
  3. Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – May 19, 2025

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.​​
  • Read more

  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.
  3. Read more

  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.
  3. Read more

  • 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.
  • Read more

  • 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.
  • Read more

  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.
  3. Read more

  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.
  3. Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – May 12, 2025

May 12, 2025 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

  • Oil prices jump about 4% on US-China tariff reductions
  • Summary: Oil prices surged about 4% as Brent rose $2.08 to $65.99 and WTI climbed $2.05 to $63.07 after the U.S. and China agreed to a 90-day pause on tariffs and cut rates to a 10% baseline. The move raised hopes of ending the trade war and boosted the demand outlook for crude. Talks in Geneva marked the first high-level meeting since the U.S. reimposed global tariffs.
  • Read more

  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.
  3. Read more

  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.
  3. Read more

  • Senate reviews Trump EIA pick as agency faces data risk from staff cuts
  • Summary: The Senate Energy and Natural Resources Committee is reviewing Tristan Abbey’s nomination to lead the U.S. Energy Information Administration (EIA), which employs 350 staff. The EIA may lose up to 100 staff due to layoffs, resignations, and buyouts, raising concerns about the reliability of key energy reports. Analysts warn that cuts could impact vital data on petroleum, natural gas, and renewables.
  • Read more

  • Is shell sizing up oil’s biggest power grab yet?
  • Summary: Speculation of a Shell-BP megamerger has intensified after BP’s Q1 results disappointed and its shares fell nearly 30% in the past year. A potential deal could create the world’s largest investor-owned oil producer at nearly 5 million boepd, surpassing ExxonMobil. However, analysts warn of major regulatory risks and BP’s liabilities possibly deterring Shell.
  • Read more

  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.
  3. Read more

  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.
  3. Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – May 5, 2025

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.
  • Read more

  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.
  3. Read more

  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.
  3. Read more

  • 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.
  • Read more

  • 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.
  • Read more

  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.
  3. Read more

  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.
  3. Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – Apr. 28, 2025

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.
  • Read more

  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.
  3. Read more

  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.
  3. Read more

  • 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.
  • Read more

  • 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.
  • Read more

  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.
  3. Read more

  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.
  3. Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

(817) 370-0612