Valor, Author at Oil and Gas Outsourcing and Mineral Management

Valor | Energy Connection – Jan. 20, 2025

Posted on January 20, 2025 by Valor

January 20, 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.

Global review of 2024 oil and gas discoveries
Summary: In 2024, global oil and gas discoveries were reviewed, detailing key findings by region, resource type, operators, and terrain, compared to 2023. The report highlights significant discoveries and trends in the industry, providing insights into exploration activities worldwide. This analysis offers a comprehensive overview of the state of global oil and gas exploration and production as of 2024.
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Early economic win with gas prices expected to drop in 2025
Summary: President-elect Donald Trump is poised to benefit from an anticipated decline in oil prices in 2025, which is expected to lead to a third consecutive annual drop in gasoline prices. This trend is attributed to a growing global oil supply, which could serve as an economic advantage for the incoming administration. Lower fuel costs may bolster consumer spending and contribute to economic growth during Trump’s presidency.
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Republican states sue Biden over drilling limits
Summary: Several Republican-led states, including Mississippi, Alaska, Louisiana, Alabama, and Georgia, along with the American Petroleum Institute, have filed a lawsuit against the Biden administration challenging its restrictions on offshore oil and gas drilling. The plaintiffs argue that the administration’s actions exceed its authority and negatively impact the economies of the involved states. This legal action reflects ongoing tensions between state interests and federal environmental policies.
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US drillers cut oil and gas rigs to lowest since Dec 2021
Summary: U.S. energy firms reduced the number of oil and natural gas rigs for the second consecutive week, bringing the total count to 580, the lowest since December 2021. This decline is attributed to companies prioritizing debt reduction and shareholder returns over increasing production. Despite the reduced rig count, the U.S. Energy Information Administration projects an increase in crude oil and natural gas production in 2025.
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Venture Global aims for $100B IPO valuation
Summary: Venture Global, a U.S. LNG exporter, is set for an IPO with a target market cap of over $100 billion, aiming to raise $2.2 billion by offering 50 million shares. The IPO is priced between $40 and $46 per share, with a projected market cap of $115 billion at the midpoint. Venture Global operates LNG facilities and plans additional projects in Louisiana.
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Chevron explores Greek offshore oil and gas
Summary: Chevron has expressed interest in exploring hydrocarbon resources southwest of Greece’s Peloponnese peninsula and west of Crete. The Greek energy ministry plans to announce the specific exploration area and initiate an international tender soon. This initiative aligns with Greece’s strategy to enhance energy independence and reduce costs amid the ongoing conflict in Ukraine.
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The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – Jan. 13, 2025

Posted on January 13, 2025January 13, 2025 by Valor

January 13, 2025 Edition

Why Russian oil sanctions are a big deal
Summary: In his final days in office, President Joe Biden has implemented comprehensive sanctions targeting Russia’s oil industry, aiming to curtail the nation’s primary revenue source. These measures are designed to limit Russia’s economic capabilities and reduce its influence in global energy markets. The sanctions include targeting major producers, tankers, traders, and insurance companies involved in Russia’s oil trade.
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Russia to continue oil and gas projects despite US sanctions
Summary: Russia has announced its intention to continue oil and gas projects despite recent U.S. sanctions. The Russian Foreign Ministry condemned the sanctions, describing them as attempts to harm Russia’s economy at the risk of destabilizing global markets. Russia asserts it will continue with large oil and gas projects and plans to respond to Washington’s “hostile” actions while formulating its foreign policy strategy.
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Supreme Court rejects oil firms’ bid in Honolulu climate case
Summary: The U.S. Supreme Court rejected an appeal by major oil companies, allowing Honolulu’s climate change lawsuit to move forward in state court. The city accuses these companies of contributing to climate change and seeks compensation for damages like rising sea levels and severe weather. This decision marks a significant step in holding corporations accountable for their environmental impact.
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Digital transformation in oil and gas set to grow by $56.4B
Summary: The digital transformation market in the oil and gas sector is projected to grow by USD 56.4 billion, with a compound annual growth rate (CAGR) of 14.5% during the forecast period. This growth is driven by increased investments and partnerships aimed at enhancing operational efficiency and reducing costs. Key technologies contributing to this transformation include digital twins, which can lower operating costs and improve maintenance routines.
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Natural gas prices rise on cold weather, supply concerns
Summary: Natural gas markets have experienced a significant uptick, with prices gapping higher at the start of the trading week. This surge is attributed to colder-than-expected weather in the United States and supply challenges in Europe, leading to increased demand for U.S. natural gas exports. The market is also influenced by geopolitical factors, including disruptions in Russian gas supplies to Europe.
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U.S. drillers cut rigs for first time in six weeks
Summary: U.S. energy firms reduced the number of oil and natural gas rigs by five to 584 in the week ending January 10, 2025, marking the first decline in six weeks. This decrease brings the rig count 6% below the same period last year. The reduction is attributed to energy companies prioritizing debt reduction and shareholder returns over increasing production.
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What are DUCs in Oil and Gas?

Posted on January 9, 2025January 9, 2025 by Valor

In the realm of oil and gas exploration and production, industry insiders often refer to “DUCs,” an acronym that stands for Drilled but Uncompleted wells. These are wells where the initial drilling phase has been finished, but they have not yet been made ready for production. This concept is crucial for understanding the strategic operations of oil and gas companies.

Why do DUCs Exist?

The reasons for maintaining DUCs vary. Primarily, they reflect a company’s financial strategy and market response tactics. Operators might drill wells but delay completion due to factors such as fluctuating oil prices, waiting for more favorable market conditions to maximize returns. Additionally, logistical challenges, such as a shortage of equipment or skilled labor, can also lead to wells remaining uncompleted.

The Strategic Importance of DUCs

DUCs serve as a sort of inventory. In periods when oil prices rise, companies can quickly complete these wells to increase production and capitalize on higher market rates. This approach allows operators to efficiently manage cash flow and maintain a flexible response to market volatility.

Implications of DUCs

From an investment perspective, the number of DUCs can be a significant indicator of future production. A high number of DUCs might suggest that a company expects to increase its output, anticipating higher oil prices or improvements in extraction technology.

Why DUCs Matter to Mineral Owners

For mineral owners, DUCs represent potential future income that isn’t yet being realized. The presence of DUCs on leased land can significantly impact the timing and amount of royalties they receive. When operators decide to complete these wells, production can commence, and royalty payments can potentially increase. Conversely, if a significant number of wells remain uncompleted, it can delay expected revenue for mineral owners.

Financial Impact of DUCs

The financial implications for mineral owners can be considerable. Operators might delay well completion due to market conditions, such as low oil prices, or logistical reasons like equipment shortages. While this might be strategically sound for operators, it can lead to unpredictable cash flows for mineral owners who rely on royalties from oil and gas production.

The Role of Mineral Management Companies

This is where mineral management companies, like Valor, become invaluable. With their expertise, they can provide mineral owners with insights and updates about the status of DUCs and potential completions. Companies like Valor use their sophisticated mineral management software, mineral.tech®, and analytics tools to monitor developments and inform mineral owners about changes that could affect their assets.

Valor’s proprietary mineral.tech® software platform enables detailed asset tracking and optimization, offering mineral owners real-time insights into their holdings. This can help mineral owners make informed decisions and plan financially with a clearer understanding of when their royalties might increase due to the completion of DUCs.

For mineral owners, staying informed about the status of DUCs on their leased land is crucial. It affects their financial planning and overall asset management strategy. Partnering with a seasoned mineral management company like Valor can provide the necessary insights and foresight to navigate the complexities of oil and gas production, ensuring that mineral owners maximize their returns and manage their resources effectively.

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Ready to uncover the full potential of your mineral assets? Contact Valor today to learn how we can support and simplify your mineral management needs.

How Do I Find Out If I Own Mineral Rights?

Posted on January 8, 2025January 8, 2025 by Valor

If you’re curious whether you own mineral rights to a property, the journey to discovery can feel overwhelming. Understanding and confirming mineral rights ownership involves research, legal documentation, and sometimes professional assistance. This guide will help you navigate the process step by step.

What Are Mineral Rights?

Mineral rights are the ownership rights related to natural resources beneath the surface of a property, such as oil, gas, coal, or other minerals. Ownership can be distinct from the surface rights of the property. This means it’s possible for someone else to hold mineral rights to a piece of land you own.

Steps to Determine Mineral Rights Ownership

Review Your Property Deed– Check the title and deed to your property. These documents often indicate whether mineral rights were included or severed when the land was purchased. If you’re unsure how to interpret the language, a mineral management advisor can assist.
Search County Records– Visit the county courthouse or use online databases to research historical deeds and transactions related to your property. A thorough search can reveal whether the mineral rights were transferred or retained by previous owners.
Consult a Professional– Determining mineral ownership can be complex, especially if rights have changed hands multiple times. This is where a mineral management company such as Valor can be a trusted partner in mineral management. Our team offers personalized services to help clients uncover and understand their mineral rights. From conducting title research to assisting with legal documentation, we ensure you have clarity and confidence in your mineral ownership.

What If You Do Own Mineral Rights?

Owning mineral rights can be a valuable asset, but managing them effectively requires expertise. At Valor, we specialize in helping mineral owners maximize the value of their assets. Whether it’s through lease negotiation, royalty management, or division order processing, our trusted mineral managers are here to provide custom solutions tailored to your needs.

Using proprietary mineral management software like mineral.tech® and our deep expertise in oil and gas accounting, we simplify the complexities of mineral management. If you’re located in Texas or key oil and gas regions like the Permian Basin, Valor is positioned to deliver both local expertise and personalized service. Let us take the stress out of managing your mineral rights so you can focus on what matters most.

Ready to Take the Next Step?

Ready to uncover the full potential of your mineral rights? Contact Valor today to learn how we can support and simplify your mineral management needs.

Proposed Texas Brine Bill: Council Draft 89R 4450

Posted on January 6, 2025January 6, 2025 by Valor

The Texas Legislature is considering Council Draft 89R 4450, a bill that aims to regulate the production, ownership, and transportation of brine within the state. This legislation, if passed, could reshape how brine is handled in Texas across the oil and gas industry, impacting pipeline operators, mineral rights owners, and midstream businesses.

As part of our commitment to keeping industry stakeholders informed, we aim to distill this complex legislative development into a digestible format. Our goal is to ensure that everyone—from field operators to land owners—has a clear understanding of the bill’s content and its potential ramifications. Here, we’ll break down the core aspects of the bill and explore its potential implications.

Key Highlights of the Bill The bill proposes amendments to Section 111.002 of the Texas Natural Resources Code, expanding the definition of “common carriers” and specifying rules for brine pipelines.

Key aspects of the bill include:
1. Definition of Common Carriers The bill emphasizes that any entity owning, operating, or managing pipelines for the transportation of brine or crude petroleum for hire qualifies as a common carrier. This applies if the pipeline:
- – Serves the public for hire
– Operates on, over, or under public roads or highways
– Is associated with an entity granted the right of eminent domain
2. Pipeline Transportation and Ownership of Brine By focusing explicitly on brine, the bill provides clarity on the ownership and operational rights associated with its transportation. This is particularly relevant for businesses that treat or reuse brine in oilfield operations or other applications, ensuring fair and consistent access to pipeline networks.
3. Operational Compliance Entities classified as common carriers must comply with stringent regulatory standards for safety, environmental impact, and fair service. These standards aim to enhance transparency and minimize disputes between operators and the communities impacted by pipeline operations.

Implications for the oil and gas industry If passed, the bill could introduce significant changes to the midstream sector, with the following potential effects:
1. Expanded Use of Eminent Domain The inclusion of brine pipelines under the common carrier definition ensures operators can leverage eminent domain in cases where pipeline construction is in the public’s interest. However, this may also heighten scrutiny from landowners and advocacy groups.
2. Increased Investment Opportunities Clearer regulations surrounding brine transportation could attract new investments in infrastructure. Midstream companies might see opportunities to expand their services, particularly in regions with extensive oilfield operations.
3. Operational Accountability With expanded regulations, companies managing brine pipelines must enhance their reporting and operational standards. This could lead to improved industry transparency but may also require additional resources for compliance.
4. Environmental Considerations Brine is often associated with produced water from oil and gas extraction. Enhanced regulation could encourage more environmentally responsible handling and re-use practices, promoting sustainability within the industry.

Preparing for potenital change, industry stakeholders should proactively prepare for the potential enactment of this legislation by:

1. Assessing Current Practices: Review existing brine transportation and ownership agreements to ensure alignment with the proposed regulations.
2. Engaging Legal Experts: Consult legal professionals to understand the implications for contracts, eminent domain rights, and compliance requirements.
3. Investing in Infrastructure: Explore opportunities to develop or upgrade brine transportation facilities to meet the expected standards.
4. Advocating for Industry Interests: Participate in public discussions or industry forums to shape the final version of the legislation.

In conclusion, Council Draft 89R 4450 represents a significant step toward regulating an often-overlooked aspect of oil and gas operations. By defining and standardizing the transportation and ownership of brine, the bill has the potential to bring both challenges and opportunities for the industry. Staying informed and proactive will be essential for businesses seeking to adapt successfully to these changes.

We’ll continue to monitor the progress of this bill and provide updates as they become available. For further insights or support in navigating these developments, don’t hesitate to reach out to our team.

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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.

Valor | Energy Connection – Dec. 30, 2024

Posted on December 30, 2024December 30, 2024 by Valor

December 30, 2024 Edition

Non-traditional countries draw key oil and gas investments
Summary: Non-traditional oil and gas producing countries in Latin America, such as Argentina, Guyana, and Suriname, are attracting significant investments to boost production, countering stagnation in traditional producers. For instance, Argentina’s Vaca Muerta formation has led to a 9% annual increase in oil output, reaching 682,000 barrels per day, the highest in two decades.
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Oil prices flatline as 2024 draws to a close
Summary: Oil prices remained stable as 2024 comes to a close, with Brent crude and WTI showing little movement. The market was influenced by ongoing supply and demand balance, as well as global economic conditions and OPEC+ policies. Investors are closely monitoring these factors to predict future price movements in early 2025.
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U.S. drillers keep rigs unchanged for third week
Summary: U.S. energy firms have maintained the number of oil and natural gas rigs at 589 for the third consecutive week, according to Baker Hughes. This total is 5.3% lower than the same period last year, reflecting a broader trend of reduced drilling activity in 2024.
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Redefining winning: Adapting to a new era of energy
Summary: The oil and gas industry must redefine success by embracing innovation, adapting to evolving global priorities, and balancing its vital role in energy security with the moral responsibility of providing reliable and affordable energy.
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America’s big natural-gas footprint is about to get even bigger
Summary: The U.S. is poised to expand its natural gas exports, with anticipated support from the incoming Trump administration, aiming to enhance global energy security and reduce coal dependence in countries like China and India, despite concerns about increased emissions and market volatility.
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EIA: US crude inventories down 4.2 million bbl
Summary: U.S. commercial crude oil inventories decreased by 4.2 million barrels to 416.8 million barrels for the week ending December 20, 2024, according to the Energy Information Administration (EIA). This level is approximately 5% below the five-year average for this time of year.
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Valor | Energy Connection – Dec. 23, 2024

Posted on December 23, 2024December 23, 2024 by Valor

December 23, 2024 Edition

Oil prices stable on Monday as data offsets surplus concerns
Summary: Oil prices stabilized on Monday, with Brent at $72.56 and WTI at $69.12, as cooling U.S. inflation fueled hopes for rate cuts. A stronger dollar and concerns about a 2025 oil surplus capped gains. Analysts predict lower average prices next year, influenced by China’s peak oil consumption outlook and stable European supplies. Legislative actions in the U.S. also eased market uncertainty.
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Russia calls gas sales to Europe ‘complicated’ as deal with Ukraine nears expiry
Summary: Russia’s decision to halt natural gas sales to Europe raises concerns about energy shortages and higher prices. The EU is intensifying efforts to diversify energy sources, emphasizing LNG imports and renewables, to reduce reliance on Russian supplies.
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‘Tariffs all the way’: Trump says European Union must buy U.S. oil and gas in trade ultimatum
Summary: President Trump has issued an ultimatum to the European Union, demanding that it increase imports of U.S. oil and gas or face potential tariffs on its exports. This move aims to reduce Europe’s energy dependence on Russia and bolster the American energy sector. The EU has expressed concerns over the potential economic impact and is seeking further negotiations.
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US drillers keep oil and natgas rigs unchanged for second week – Baker Hughes
Summary: U.S. drillers kept oil and gas rigs unchanged at 589 for the second consecutive week. While the oil rig count increased slightly, natural gas rigs decreased. Lower prices and rising costs are leading companies to focus on managing output and increasing efficiency. Projections suggest higher U.S. crude production in 2024 and 2025, with slight declines in natural gas production.
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EPA and DOE Announce $850M to Cut Methane Emissions in Oil and Gas Sector
Summary: The U.S. EPA and DOE announced $850 million in funding for 43 projects to reduce methane pollution from the oil and gas sector. The initiative targets small operators and Tribes, encouraging the use of advanced technologies to cut emissions and improve efficiency. This funding is part of the administration’s climate goals.
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Natural gas prices surge as cold weather boosts demand and LNG outlook
Summary: Natural gas prices surged due to colder weather forecasts and increased global demand for U.S. LNG exports. The rising demand is linked to expectations of higher U.S. heating needs and global geopolitical shifts. These factors combined have led to a bullish market outlook for natural gas prices.
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Valor | Energy Connection – Dec. 16, 2024

Posted on December 16, 2024December 16, 2024 by Valor

December 16, 2024 Edition

Oil Sags on Soft Chinese Spending, Investor Pause Before US Fed Rate Move
Summary: Oil prices slipped 0.8% on Monday, with Brent at $73.91 and WTI at $70.71, as weak Chinese consumer spending, profit-taking, and anticipation of the U.S. Federal Reserve’s interest rate decision outweighed last week’s supply-tightening expectations.
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Trump Set to Reverse Biden’s EV Support and Tailpipe Emissions Rules
Summary: The Trump Administration plans to overhaul U.S. electric vehicle policy by eliminating EV tax incentives, rolling back emission and fuel economy standards, reallocating EV infrastructure funds to battery mineral processing, and imposing global tariffs on battery materials to boost domestic production.
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Oil, Gas Groups Issue ‘Urgent Call’ to House Speaker
Summary: A coalition of oil and gas trade associations, representing over 80% of U.S. domestic production, is urging Congress to pass the Energy Permitting Reform Act of 2024 to streamline the lengthy permitting process, boost energy security, and unlock billions in infrastructure investments before the current session ends.
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How AI Energy Demand in 2025 Will Put Natural Gas in the Spotlight
Summary: Natural gas prices are down 13% this year due to mild winters and oversupply, but optimism for 2025 is fueled by rising LNG exports, increased power demand from AI data centers, and regulatory rollbacks expected to boost profitability and infrastructure growth.
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Natural Gas Drilling Rig Count Reaches July Highs
Summary: U.S. drilling activity remains steady with 589 rigs, down 5% from last year, including 482 crude rigs (down 19), 103 natural gas rigs (down 16 but up 1 week-over-week), and the Permian Basin holding at 304 rigs, down six year-over-year.
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California Gas Prices: The State Makes More Money Than Refiners
Summary: California’s SB-1322 law, aimed at increasing transparency in gasoline pricing, reveals that refiners’ gross profit margins are minimal, with high gas prices being primarily driven by taxes, fees, and strict fuel regulations rather than excessive profits from oil companies.
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Valor | Energy Connection – Dec. 9, 2024

Posted on December 9, 2024December 9, 2024 by Valor

December 9, 2024 Edition

Oil Prices Mixed as Rising Mideast Tensions Offset Demand Concerns
Summary: Oil prices fluctuated as Middle East tensions balanced weak demand concerns, influenced by China’s stimulus measures, Saudi price cuts, and upcoming U.S. inflation data.
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California Tackles Fuel Price Volatility Amid Refinery Closure Challenges
Summary: California’s new fuel inventory law seeks to reduce price volatility, but Phillips 66’s refinery closure highlights ongoing supply challenges and increasing reliance on imports.
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Goldman Sachs Maintains 2025 Brent Oil Price Forecast at $76 Per Barrel
Summary: Goldman Sachs holds its 2025 Brent oil forecast at $76 per barrel, citing balanced supply from lower OPEC+ output and rising non-OPEC production, with short-term risks from potential Iran supply disruption.
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BP Looks to Sell a Minority Stake in Its U.S. Natural Gas Pipelines
Summary: BP is considering selling a 49% stake in its U.S. natural gas pipeline network for up to $3 billion to reduce debt, while also exploring a minority stake sale in its offshore wind business amid industry-wide midstream consolidation.
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US Drillers Add Oil and Gas Rigs for First Time in 8 Weeks
Summary: U.S. energy firms added seven oil and gas rigs this week, the first increase in eight weeks, bringing the total to 589, though still 6% below last year’s count, according to Baker Hughes.
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US to Offer Oil, Gas Leases in Alaska Wildlife Refuge on Jan. 9
Summary: The Biden administration will auction 400,000 acres in Alaska’s Arctic National Wildlife Refuge for oil and gas drilling on January 9, balancing legal requirements with environmental considerations, while facing opposition from conservation groups.
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Valor | Energy Connection – Dec. 2, 2024

Posted on December 2, 2024December 3, 2024 by Valor

December 2, 2024 Edition

Thanksgiving Perspective – What a Difference a Decade Makes
Summary: A decade after Saudi Arabia’s attempt to dominate the oil market, advanced U.S. extraction techniques have driven a significant resurgence, making the U.S. the world’s leading oil producer for six consecutive years.
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Oil Gains on Chinese Data and Gears of Israel-Lebanon Ceasefire Collapse
Summary: Oil prices rose over 1% due to strong factory activity in China and Middle East tensions, with Brent and WTI climbing amid expectations for OPEC+ discussions on oil policy adjustments.
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Impact of Trump’s Tariffs on Canada on U.S. Gas Prices
Summary: President-elect Donald Trump’s proposed tariffs on Canadian imports, including oil, could increase U.S. fuel prices due to the heavy reliance on Canadian crude, particularly affecting Midwest refineries and ultimately leading to higher pump prices.
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Chinese Oil Giant Launches Another Project
Summary: CNOOC has launched its Huizhou 26-6 oilfield project in the South China Sea, featuring China’s first intelligent offshore drilling platform, with expectations of peak production reaching 20,600 barrels of oil equivalent per day by 2027.
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US Drillers Cut Oil and Gas Rigs for Third Week in a Row
Summary: U.S. energy firms reduced oil and gas rigs for the third consecutive week, bringing the rig count to its lowest since September (582) amid declining prices, higher costs, and a focus on debt reduction and shareholder returns.
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Trump Plans Energy Push to Boost Gas Exports, Oil Drilling
Summary: President-elect Donald Trump plans to prioritize energy policies by expanding LNG exports, accelerating federal and offshore drilling, repealing climate regulations, and reviving projects like the Keystone Pipeline.
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