Category: Industry Newsletter

July 1, 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.
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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.
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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.
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• 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.
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• 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.
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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.
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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%.
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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.

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.
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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.
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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.
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• 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.
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• 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.
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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.
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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.
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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.

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.
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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.
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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.
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• 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.
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• 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.
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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.
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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.
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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.

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.
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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.
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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.
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• 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.
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• 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.
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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.
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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.
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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.

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.

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.

May 5, 2025 Edition

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

• Oil prices drop as OPEC+ accelerates output hikes, surplus looms
• Summary: Oil prices dropped over 1% Monday, with Brent at $60.39 and WTI at $57.31 per barrel, after OPEC+ announced a June output hike of 411,000 bpd. This brings total increases for April–June to 960,000 bpd, unwinding 44% of prior cuts. Barclays cut its 2025 Brent forecast by $4 to $66, citing surplus concerns and weak demand.
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1. US drillers cut rigs for first time in three weeks, Baker Hughes says
2. Summary: U.S. drillers cut three oil and gas rigs this week, bringing the total to 584, down 21 rigs or 3% from a year ago, according to Baker Hughes. Oil rigs fell by four to 479, while gas rigs rose by two to 101; the Permian basin dropped to 287 rigs, its lowest since December 2021. Crude prices have slumped 20% in 2025, fueling concerns over capital spending and investor returns.
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1. Trump moves to expand offshore drilling, including Gulf of Maine
2. Summary: The Trump administration plans to expand offshore oil and gas drilling, including in the Gulf of Maine, and accelerate permitting by cutting review times from years to weeks. Environmental groups and Maine lawmakers opposed the move, citing threats to fisheries and tourism, while Senators Collins and King proposed a drilling ban. Despite the push, experts note the Gulf has low oil and gas potential due to its geology.
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• Shell is studying merits of BP deal as rival’s stock slumps
• Summary: Shell is evaluating a potential acquisition of BP as BP’s stock has dropped nearly 33% over the past year, reducing its market value to £56 billion — less than half of Shell’s £149 billion. The deal, still in early stages, could become one of the largest in oil industry history but depends on further declines in BP’s stock and oil prices. Shell is also considering smaller acquisitions or share buybacks instead.
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• ExxonMobil continues to prove it’s the best-run company in the oil patch
• Summary: ExxonMobil posted $7.7B in Q1 earnings and $13B in operating cash flow, driven by 4.6M BOE/day production—up 20% from last year. It returned $9.1B to shareholders, including $4.8B in buybacks and $4.3B in dividends, marking its 42nd consecutive annual dividend increase. With $12.7B in annual cost savings and 10 new projects planned, Exxon expects $20B more in earnings by 2030.
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1. New budget cuts clean energy, boosts fossil fuel research
2. Summary: President Trump’s 2026 budget proposal aims to cut over $15 billion in funding for carbon capture and renewable energy programs, shifting focus toward fossil fuels and nuclear energy. It also proposes eliminating $6 billion for electric vehicle chargers and reducing funding for climate programs, including NOAA grants and EPA climate research. The budget signals a major pivot away from climate-focused policies and towards fossil fuel R&D.
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1. U.S. natural gas futures hold onto gains
2. Summary: U.S. natural gas futures rose 0.1% to $3.634/mmBtu as bullish traders returned to the market despite falling oil prices. OPEC+ plans to add 411,000 barrels per day in June, which could pressure U.S. shale and support gas prices long term. However, EBW Analytics warns the short-term rally may falter due to weak seasonal fundamentals.
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Contact Valor Today

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

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

April 28, 2025 Edition

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

• Crude oil prices drop on demand fears
• Summary: Crude oil prices fell over $1 per barrel on Monday, with Brent down 1.63% to $65.78 and WTI down 1.82% to $61.87, amid U.S.-China trade war demand fears. Brent crude posted a weekly decline of over 1% despite slight gains earlier. OPEC+ may propose accelerating output hikes on May 5 as bearish sentiment grows.
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1. Big oil and mining giants join the white hydrogen rush
2. Summary: Major companies like Rio Tinto, Fortescue, Gazprom, and BP Ventures are investing in natural hydrogen, with Fortescue funding $21.9 million for expanded exploration. Analysts expect 2025 to be pivotal, though progress remains slow. Critics warn extraction may take decades and be economically challenging.
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1. Trump fast-tracks oil and mining projects
2. Summary: The Trump administration will fast-track oil, gas, and mining permits on public lands, cutting review times from up to two years to just 28 days under emergency powers. The U.S., producing 20 million barrels of oil daily, aims to expand energy projects but faces backlash and lawsuits from environmental groups. Workforce cuts at the Department of the Interior, which employs about 70,000, could hamper oversight.
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• ConocoPhillips plans layoffs after Marathon Oil acquisition
• Summary: ConocoPhillips plans workforce reductions following its $23 billion acquisition of Marathon Oil, aiming to cut costs and streamline operations through its ‘Competitive Edge’ project. The company, which employed about 11,800 people by end-2024, will reveal specific layoff details in Q4. ConocoPhillips is also considering asset sales in Oklahoma to optimize its portfolio.
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• Amazon and Nvidia weigh fossil fuels for AI power
• Summary: Amazon and Nvidia executives stated that all energy options, including fossil fuels like natural gas, are under consideration to meet the growing energy demands of AI. While Amazon focuses on renewable energy, it acknowledges the need for thermal generation in the short term. Nvidia also emphasizes the need for power, though both companies express unease about using coal.
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1. US rig count up slightly amid oil market turbulence
2. Summary: The U.S. rig count increased by three in the week ending April 25, marking a small victory for the Trump administration’s “Drill, Baby, Drill” agenda. Despite this, industry experts warn that oil prices under $60 per barrel and rising steel tariffs may harm profitability. U.S. oil producers face pressure, with production costs rising by up to 14%, and global oil demand growth projections have been revised down to just 730,000 barrels per day.
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1. Canadian drillers pivot to gas as trade war impacts oil prices
2. Summary: Amid ongoing trade tensions, Canadian drillers have shifted focus from oil to natural gas, with drilling licenses for gas wells up 26% in Q1 2025, while oil well licenses dropped by 24%. The move is driven by stable returns from natural gas amid volatile oil prices, trade disputes, and OPEC+ production increases. This shift is expected to continue through 2025-2026, as natural gas presents more favorable investment conditions.
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Contact Valor Today

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

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

April 21, 2025 Edition

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

• Oil prices dip amid U.S.-Iran talks and tariff concerns
• Summary: Oil prices fell 1.5% on April 21, 2025, with Brent at $66.81 and WTI at $63.58, amid progress in U.S.-Iran nuclear talks that could bring Iranian crude back to the market. Investor sentiment weakened due to tariff-related economic concerns, with a Reuters poll indicating a 50% chance of a U.S. recession in the next 12 months. OPEC+ plans to increase output by 411,000 bpd in May, but rising global supplies and potential quota adjustments are influencing market outlook.​
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1. Natural gas market struggles to find its footing: here’s why
2. Summary: ​U.S. natural gas prices fell nearly 8% last week to $3.249/MMBtu, their lowest since January, despite a smaller-than-expected storage build of 16 Bcf, which was below the five-year average of 50 Bcf. Total gas supply averaged 112.3 Bcf/day, while consumption dropped to 103 Bcf/day due to warmer weather reducing residential and power demand. Record-breaking production and soft near-term demand continue to pressure prices, although strong LNG export demand offers longer-term support.
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1. U.S. natural gas production remained flat in 2024
2. Summary: In 2024, U.S. marketed natural gas production remained nearly flat at 113 Bcf/d, with Permian output rising 12% to 25.4 Bcf/d, offsetting declines in Haynesville and stagnant Appalachia production. Haynesville’s output fell 11% to 14.6 Bcf/d due to reduced drilling amid low prices, while Appalachia’s growth was limited by pipeline constraints. The Henry Hub spot price averaged $2.21/MMBtu in 2024, the lowest on record and 16% below the 2023 average.​
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• ​New offshore leasing program boosts gulf of america energy sector​
• Summary: On April 18, 2025, the U.S. Department of the Interior initiated the 11th National Outer Continental Shelf Oil and Gas Leasing Program, launching a 45-day public comment period to shape future offshore lease sales. The Gulf of America contributes nearly $33 billion annually to the U.S. economy and supports approximately 400,000 jobs. This program aims to bolster American energy security and sustain investment in offshore energy production.​
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• Chevron starts oil production from Ballymore in Gulf of America
• Summary: Chevron has commenced oil and gas production from the Ballymore subsea tieback project in the deepwater Gulf of America. The project is expected to produce up to 75,000 barrels of oil per day through three wells tied back to the existing Chevron-operated Blind Faith facility. Chevron aims to produce 300,000 net barrels per day of oil equivalent from the Gulf by 2026. 
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1. U.S. rig count increases by two as oil prices climb
2. Summary: The U.S. oil and gas rig count rose by two to 585 rigs, with 481 targeting oil and 98 exploring for natural gas. The Permian Basin remained at 289 rigs, down from 318 a year ago. Oil prices also saw an increase, with the regional benchmark ending at $61.16 per barrel and the national benchmark at $64.68 per barrel, both up by $3.18.
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Contact Valor Today

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

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

April 14, 2025 Edition

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

• Goldman Sachs expects oil prices to decline through 2026
• Summary: Goldman Sachs expects oil prices to decline through 2026 due to recession risks and rising OPEC+ supply. Brent and WTI are forecast to average $63 and $59 per barrel for the rest of 2025, and $58 and $55 in 2026. Demand growth is projected at only 300,000 bpd by end-2025, while global surpluses may reach 800,000 bpd in 2025 and 1.4 million bpd in 2026. In a slowdown or full OPEC+ reversal scenario, Brent could fall into the $40 range or lower. Beijing’s new 125% tariff on U.S. imports further escalates trade tensions impacting demand.
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1. Russia targets major surge in natural gas exports by 2050
2. Summary: Russia aims to double its natural gas exports by 2030 and triple them by 2050 under its new energy strategy. The country’s gas exports are expected to increase from 146 bcm in 2023 to 293 bcm by 2030, and up to 438 bcm by 2050. Crude oil production is projected to rise slightly, from 531 million metric tons in 2023 to 540 million by 2050, with oil exports remaining steady at around 235 million tons per year. The strategy includes expanding exports to “friendly countries” and boosting Arctic energy development.
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1. Oil rig count slides amid oil price turbulence
2. Summary: The total U.S. rig count fell by 7 to 583 this week, down 34 from last year, with oil rigs dropping by 9 to 480 and gas rigs rising by 1 to 97. U.S. crude production decreased slightly to 13.458 million bpd, 173,000 bpd below the record high in December 2024, while the Permian Basin rig count fell by 5 to 289—27 fewer than last year. Amid OPEC+ output increases and trade tensions, WTI fell to $60.54 and Brent to $63.93, both more than $1 lower than the previous week’s prices.
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1. BP makes deepwater oil discovery in gulf of america
2. Summary: BP has made an oil discovery at the Far South prospect in the deepwater U.S. Gulf of America, 120 miles off Louisiana’s coast, in 4,092 feet of water. The discovery, drilled to 23,830 feet, is co-owned by BP (57.5%) and Chevron (42.5%), with preliminary data indicating a potentially commercial volume. This discovery supports BP’s strategy to increase Gulf of America production to over 400,000 barrels of oil equivalent per day by 2030, as part of its broader plan to reach 2.3-2.5 million boepd global production by 2030.
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• Debate flares over texas’ proposed oil and gas waste rule
• Summary: Texas is updating its oil and gas waste rules for the first time since 1984, proposing new requirements for pits and commercial facilities that manage drilling waste like produced water and cuttings. The Railroad Commission’s draft includes stricter standards for liners, groundwater monitoring, and registration, but critics argue it lacks adequate protections—especially since Texas recorded 712 water contamination violations since 2015 and 3.9 billion barrels of produced water are generated annually in the Permian Basin alone. Industry groups support revisions to reduce costs, while environmental advocates push for stronger safeguards and extended public input.
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• Trump dumps Biden environmental review for 3,244 oil and gas leases
• Summary: The Trump administration will cancel a Biden-era environmental review for 3,244 federal oil and gas leases across seven western states, including Wyoming, issued between 2015 and 2020. This decision follows a decade-long legal and political battle over climate and health implications of drilling, with the Bureau of Land Management (BLM) opting for alternative review processes to meet legal requirements. Industry groups argue the leases’ impacts have been adequately analyzed, while conservationists criticize the rollback, citing ongoing environmental and health concerns.
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Contact Valor Today

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

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