2025 Archives

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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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 – Jan. 6, 2025

Posted on January 6, 2025February 3, 2025 by JR Gelpe

January 6, 2025 Edition

Biden bans offshore drilling, Trump vows reversal
Summary: President Joe Biden has banned new offshore oil and gas drilling in most U.S. coastal waters, including the East and West coasts, parts of Alaska, and the eastern Gulf of Mexico, to protect over 625 million acres and promote clean energy. President-elect Donald Trump plans to challenge the ban, emphasizing the economic importance of domestic oil and gas production.
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New York to charge fossil fuel companies $75B under climate law
Summary: New York has enacted a climate cost recovery law that requires fossil fuel companies to pay $75 billion over the next 25 years to cover the costs of environmental damage caused by climate change. This law aims to fund climate-related infrastructure and help mitigate the impacts of global warming in the state.
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Natural gas demand to surge in US amid extreme cold weather conditions
Summary: Natural gas demand in the U.S. is expected to surge due to forecasts of extreme cold weather and snowstorms, which may lead to widespread power outages. This anticipated increase in demand has already caused natural gas prices to rise nearly 25% over the past month.
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US oil and gas rigs unchanged for fourth straight week
Summary: According to Baker Hughes, the U.S. oil and gas rig count remained unchanged at 589 for the fourth consecutive week as of January 3, 2025. This total is 5% lower than the same period last year, reflecting a continued industry focus on debt reduction and shareholder returns over increased production.
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Dallas Fed Energy Survey reveals an improving outlook for oil and gas
Summary: The Dallas Federal Reserve’s latest energy survey indicates that 57% of oil and gas executives plan to increase capital spending in 2025, reflecting optimism about the industry’s future. This positive outlook is influenced by expectations of favorable regulatory changes under the incoming Trump administration.
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As Asia’s crude oil imports drop, China demand weakens
Summary: Asia’s crude oil imports declined for the first time in three years in 2024, mainly due to weaker demand from China, the world’s largest importer. While India’s imports grew, China’s and other countries like Japan and South Korea saw declines, influenced by slower economic growth and a shift to alternative fuels.
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