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Valor | Energy Connection – June 30, 2025

Posted on by Valor

June 30, 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 on easing Middle East risks
  • Summary: Oil prices held steady on June 30, with Brent crude at $67.64 and WTI at $65.39; prices have fallen from over $80 during recent Mideast tensions but are set for a monthly gain of over 5%. Easing geopolitical risks, a potential OPEC+ output increase of 411,000 bpd in August, and global demand concerns are weighing on prices and led to a large weekly drop. However, some market tightness remains as previous OPEC+ production increases have been lower than what was expected by analysts, providing a floor under the prices.
  • Read more

  1. Oil set for steepest weekly decline in two years as risk subsides
  2. Summary: Oil was set for its steepest weekly drop (~12%) since March 2023 as Mideast risk premium evaporated, with Brent crude falling from over $80 during the 12-day conflict to $68.15. Despite the weekly decline, prices rose Friday, supported by strong inventory draws as U.S. crude stocks fell and ARA gasoil inventories hit their lowest level in more than one year. Demand from top importer China also gave support, with its Iranian crude imports surging to a record 1.8 million bpd during the first 20 days of June.
  3. Read more

  1. California regulator recommends pausing oil profit penalty plan
  2. Summary: A top California energy regulator has recommended pausing Gov. Newsom’s 2023 law to penalize oil companies for excess profits, a policy that has not yet been implemented. This comes as California gas prices hit $4.61 per gallon versus the $3.20 U.S. average, and two announced refinery closures threaten over 17% of the state’s total refining capacity. The proposal suggests focusing on supply stability instead of penalties, but a coalition of about 50 environmental and consumer groups immediately criticized this pause.
  3. Read more

  • US rig count down seven as prices drop
  • Summary: The U.S. national oil and gas rig count fell by seven to 547 for the week ending June 27, with oil rigs down six to 432 and natural gas rigs down two to a total of 109. In the Permian Basin, the rig count dropped by one to 270, well below the 305 active rigs a year ago, as oil prices experienced a steep decline for the week. This downturn was highlighted by national benchmark West Texas Intermediate crude ending Friday at $65.52 per barrel, a sharp decrease of $9.41 from the previous week’s close.
  • Read more

  • Senate backs carbon capture, oil & gas
  • Summary: A Senate FY2025 draft tax bill boosts carbon capture subsidies, raising the 45Q credit for Enhanced Oil Recovery (EOR) to match the higher rate for direct geological sequestration. This 45Q expansion would cost taxpayers an extra $14.2 billion over a decade, while a separate provision lets CCS facilities form tax-shielding Publicly Traded Partnerships. The largest boost for oil lets companies deduct Intangible Drilling Costs from the 15% Corporate Alternative Minimum Tax, a provision costing taxpayers up to $1.1 billion.
  • Read more

  1. Shell addresses BP merger speculation
  2. Summary: After a media report sent BP’s shares jumping nearly 7%, Shell officially stated on June 26 that it has not been actively considering an acquisition of its UK-based rival. Under UK market rules, Shell’s confirmation that it has “no intention of making an offer” now legally restricts the company from making a bid for BP for the next six months. This speculation, fueled by BP’s weak Q1 results, runs counter to CEO Wael Sawan’s stated priority of buying back Shell’s own shares over pursuing a sizable acquisition.
  3. Read more

  1. EIA reports on U.S. oil and gas reserves
  2. Summary: A new EIA report shows U.S. crude oil proved reserves fell 3.9% in 2023 to 46.4 billion barrels, with North Dakota’s reserves dropping the most by 12.3% (611 million barrels). Proved reserves of natural gas saw a steeper 12.6% decline to 603.6 trillion cubic feet (Tcf), the first annual drop since 2020, with Alaska’s reserves falling 22.7%. Despite these year-end reserve declines, U.S. production increased in 2023, with crude oil output growing by 7.8% and natural gas output rising by 3.4%.
  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 23, 2025

Posted on by Valor

June 23, 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.

  • How oil prices are faring after U.S. strikes on Iranian nuclear sites
  • Summary: Following U.S. strikes on Iranian nuclear sites, global markets remained steady, with Brent crude up 1.2% to $77.91 and U.S. crude up 1.3% to $74.79. The main concern is a potential Iranian retaliation disrupting the Strait of Hormuz, a waterway for much of the world’s crude, though analysts note this would be “economic suicide” for Tehran. While some experts expect a short conflict and easing prices, others warn a complete shutdown of the strait could send oil prices soaring to $120-$130 per barrel, hurting global consumers.
  • Read more

  1. Goldman warns Brent could surge to $110
  2. Summary: Goldman Sachs warns Brent crude could surge to a peak of $110 per barrel if Iran disrupts the Strait of Hormuz, a significant revision of its previous forecast. This price materializes if flows are cut by 50% for a month and remain 10% lower for 11 months, with Goldman citing a 52% chance of Iran shutting the strait. Following an initial shock, Brent would moderate to $95 in Q4, while current prices show Brent trading over $78 per barrel and West Texas Intermediate at $75.24.
  3. Read more

  1. US oil rig count down by 1, says Baker Hughes
  2. Summary: For the week ended June 20, the total U.S. active drilling rig count fell by 1 to 554, marking a continued decline and sitting 34 rigs below the count from the same time last year. The number of oil rigs specifically decreased by 1 to 438, a total that is now 47 rigs lower than the previous year, following a 3-rig drop in the week prior. In contrast, gas rigs fell by 2 to 111, which is still a gain of 13 rigs year-over-year, while the miscellaneous rig count increased by 2, bringing its total count up to 5 active rigs.
  3. Read more

  • Iran has an oil card to play. So does the U.S.
  • Summary: While an Iranian closure of the Strait of Hormuz, where 20% of world petroleum passes, could push oil to triple digits, the U.S. holds a key weapon in its massive shale energy output. U.S. resilience stems from shifting from importing 14 barrels per capita in 1977 to net exporting 2.5 barrels per capita today, making the nation the world’s largest seller of LNG. Shale’s ability to add 4.2 million barrels a day from 2016-2019 has spurred a 9% rally in a basket of related U.S. oil-and-gas exploration stocks amid the recent tensions.
  • Read more

  • Chevron enters U.S. lithium sector with leasehold acquisitions
  • Summary: Chevron entered the U.S. lithium sector by acquiring a 125,000-net-acre leasehold across northeast Texas and southwest Arkansas from two companies. The acquisitions from TerraVolta Resources (providing 100,000 net acres) and East Texas Natural Resources grant access to the high-lithium Smackover formation for a new domestic business. To expand US critical mineral supplies, Chevron will leverage its drilling expertise and utilize advanced direct lithium extraction (DLE) technologies for future production.
  • Read more

  1. Democrats, Independents cool on solar and wind energy, poll says
  2. Summary: An AP-NORC poll shows U.S. support for renewable energy has fallen since 2022, with backing for offshore wind expansion dropping from 59% to 44% and for solar farms from about 66% to 50%. This decline is driven by Democrats and independents, with support for EV tax credits falling among Democrats from ~70% to 58% and plunging among independents from 49% to a mere 28%. However, this has not increased support for fossil fuels, as only one-third of adults favor expanding offshore oil drilling and just one-quarter support expanding domestic coal mining.
  3. Read more

  1. Texas creating task forces to target Permian Basin oil field thefts
  2. Summary: To combat oil field thefts in the Permian Basin, Texas enacted new laws costing nearly $5 million to create task forces under the DPS and the state’s Railroad Commission. This addresses a billion-dollar problem, with one operator losing $1.1 million in 2023-24 and an FBI task force estimating $300,000 is lost monthly in stolen tools and pipes. The laws authorize DPS to inspect cargo tanks and increase theft penalties, with fines reaching up to $100,000 for the illegal transport or purchase of petroleum.
  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 16, 2025

Posted on by Valor

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

Posted on by Valor

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

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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

Posted on by Valor

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

Posted on by Valor

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

Posted on by Valor

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

Posted on by Valor

May 19, 2025 Edition

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

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

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

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

Valor | Energy Connection – May 12, 2025

Posted on by Valor

May 12, 2025 Edition

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

  • Oil prices jump about 4% on US-China tariff reductions
  • Summary: Oil prices surged about 4% as Brent rose $2.08 to $65.99 and WTI climbed $2.05 to $63.07 after the U.S. and China agreed to a 90-day pause on tariffs and cut rates to a 10% baseline. The move raised hopes of ending the trade war and boosted the demand outlook for crude. Talks in Geneva marked the first high-level meeting since the U.S. reimposed global tariffs.
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  1. Natural gas futures rally on warmer weather forecast
  2. Summary: U.S. natural gas futures rose 4.55% to $3.795, hitting a four-week high as forecasts predicted above-normal temperatures through May 18, boosting power sector demand. Despite this rally, strong supply—105.4 Bcf/d, up 5.1% YoY—and a 104 Bcf storage injection, 32% above the five-year average, kept bearish pressure intact. Total gas demand fell 6.4% YoY to 66.0 Bcf/d.
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  1. U.S. oil and gas rig count drops to lowest since January
  2. Summary: U.S. oil and gas rig count fell by 6 to 578—the lowest since January—with oil rigs down 5 to 474, according to Baker Hughes. The total rig count is now 4% lower year-over-year, with the Permian down to 285 rigs and Gulf of Mexico rigs at their lowest since September 2021. Despite lower prices, the EIA still projects crude output to rise to 13.4 million bpd in 2025.
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  • Senate reviews Trump EIA pick as agency faces data risk from staff cuts
  • Summary: The Senate Energy and Natural Resources Committee is reviewing Tristan Abbey’s nomination to lead the U.S. Energy Information Administration (EIA), which employs 350 staff. The EIA may lose up to 100 staff due to layoffs, resignations, and buyouts, raising concerns about the reliability of key energy reports. Analysts warn that cuts could impact vital data on petroleum, natural gas, and renewables.
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  • Is shell sizing up oil’s biggest power grab yet?
  • Summary: Speculation of a Shell-BP megamerger has intensified after BP’s Q1 results disappointed and its shares fell nearly 30% in the past year. A potential deal could create the world’s largest investor-owned oil producer at nearly 5 million boepd, surpassing ExxonMobil. However, analysts warn of major regulatory risks and BP’s liabilities possibly deterring Shell.
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  1. Oil and gas industry embraces AI and tech advancements
  2. Summary: Imperial Oil has embraced AI and robotics, boosting its bottom line by $700 million in 2024, aiming for $1.2 billion by 2027. The company uses self-driving haul trucks and Boston Dynamics’ Spot robots for inspections, while also adopting generative AI for real-time operational insights. AI is enhancing productivity, reducing downtime, and improving maintenance in the oil and gas sector.
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  1. NRG Energy bets on growing power demand with $12 billion assets deal
  2. Summary: NRG Energy will acquire LS Power’s assets in a $12 billion deal to double its power generation capacity to 25 GW, including 13 GW from 18 natural gas plants. The deal, funded with $6.4 billion in cash, $2.8 billion in stock, and $3.2 billion in assumed debt, is expected to close in Q1 2026. NRG raised its EPS growth outlook to 14% and reported Q1 net income of $750 million, up from $511 million.
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Contact Valor Today

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

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

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