Category: Industry Newsletter

September 10, 2024 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.

1. Brent oil falls below $70 per barrel, lowest level since December 2021 as OPEC cuts forecast
2. Summary: Brent oil prices fell below $70 per barrel for the first time since December 2021, driven by OPEC’s second demand forecast cut in two months and concerns over weakening demand in China.
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• OPEC trims oil demand outlook further amid price slump
• Summary: OPEC slightly lowered its forecast for oil-demand growth in 2024 and 2025 after postponing planned output hikes to stabilize prices, while demand remains strong, particularly in non-OECD countries, and concerns over China’s economic outlook weigh on future price recovery.
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• Texas regulator plugs over 1,000 orphan oil and gas wells in 2024
• Summary: The Railroad Commission of Texas exceeded its goal of plugging 1,000 orphan wells in Fiscal Year 2024 by sealing 1,012 wells using state funds, continuing its national leadership in addressing orphaned wells.
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1. Residents flee, oil firms shut offshore production as Storm Francine intensifies
2. Summary: Tropical Storm Francine is rapidly intensifying and is expected to become a dangerous Category 2 hurricane, prompting evacuations in Louisiana, oil and gas production shutdowns in the Gulf of Mexico, and posing a significant threat to newly built LNG export plants in the region.
3. Read more

• North America posts another WoW rig loss
• Summary: North America’s rig count dropped by one to 802, driven by the U.S. cutting one rig, while Canada remained unchanged, with the total U.S. oil and gas rig count down 50 year-on-year.
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• Major oil and gas reserve found in Pakistan’s waters 
• Summary: A major oil and gas discovery in Pakistan’s territorial waters has the potential to significantly impact the country’s economy, though drilling and extraction could take several years and require substantial investment.
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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.

September 4, 2024 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.

1. Shell to cut 20% of workers in oil and gas exploration units
2. Summary: Shell plans to cut jobs in its oil and gas exploration divisions as part of a broader cost-cutting strategy under CEO Wael Sawan, focusing on efficiency and reducing operating expenses.
3. Read more

• Oil drops 5% with resolution to Libyan dispute in sight
• Summary: Oil prices dropped to their lowest in nearly nine months due to signs of a resolution in Libya’s oil production dispute and concerns over weak demand from China.
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• AI demand could strain electrical grid in coming decade
• Summary: U.S. data centers are expected to consume massive amounts of electricity by 2030, potentially straining the grid as coal plants retire faster than renewable energy sources can be developed.
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1. US drillers cut oil and gas rigs for third week in a row
2. Summary: U.S. energy firms reduced the number of active oil and gas rigs for the third consecutive week, with the total rig count hitting its lowest level since June amid declining gas prices and reduced capital spending.
3. Read more

• Oil and gas giants invest in energy transition
• Summary: Major oil and gas companies, including BP and ExxonMobil, are investing £600,000 ($788,000) in a University of Aberdeen initiative to reduce emissions and support energy transition research.
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• Marathon Oil shareholders vote in favor of $16 billion ConocoPhillips deal
• Summary: Marathon Oil has received stockholder approval for its pending merger with ConocoPhillips, with the transaction expected to close by late 2024, subject to regulatory clearance.
• 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

August 26, 2024 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.

1. Exxon Projects 2050 Oil Demand to Equal Current Levels, Surpassing BP’s Estimate by 25%
2. Summary: Exxon Mobil expects global crude demand to remain above 100 million barrels per day through 2050, a forecast 25% higher than BP’s, supporting its ambitious production growth plans.
3. Read more

• Texas Upstream Employment Shows Uptick Amid Record Permian Production
• Summary: Employment in Texas’ upstream oil and gas industry rose by 1,600 jobs in July versus June, according to the Texas Independent Producers and Royalty Owners Association (TIPRO).
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• New Zealand to Push Through Law to Reverse Ban on Oil and Gas Exploration
• Summary: New Zealand announced it will pass laws by year-end to lift the ban on offshore oil and gas exploration and quickly remove regulatory barriers to LNG imports amid energy shortages. The law would end the ban, in place since 2018, on exploration outside onshore Taranaki, an energy-rich region on the country’s North Island as the right-of-centre government plans to lure investment to the country’s oil and gas sector.
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1. Oil Prices Surge Nearly 3% Amid Middle East Tensions and Libyan Production Cuts
2. Summary: Oil prices surged nearly 3% on Monday due to escalating Middle East tensions and production cuts in Libya, raising concerns over global supply. Oil prices jumped after Libya’s eastern-based government announced the closure of all oil fields on Monday, halting production and exports.
3. Read more

• Billions Flow into U.S. Offshore Wind Despite Ongoing Setbacks
• Summary: The US aims to significantly expand its offshore wind capacity with strong government support, but the industry has faced setbacks like project delays and financial challenges for major players. Despite this, foreign investors such as Equinor and Vestas remain committed, drawn by the potential for growth and government incentives.
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• U.S. Oil and Gas Rig Count Falls for Second Week
• Summary: New data from Baker Hughes on Friday shows a decline in the total number of active oil and gas drilling rigs in the United States this week, dropping by 2 to 586. This is down from 642 rigs at the same time last year.
• 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.

August 13, 2024 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.

1. US Drillers Add Oil & Gas Rigs for Third Time in Four Weeks
2. Summary: The oil and gas rig count, an early indicator of future output, rose by two to 588 in the week to Aug. 9. Despite the week’s rig increase, Baker Hughes said the total count was still down 66 rigs, or 10% below this time last year.
3. Read more

• U.S. Oil Industry Pumps Record Volumes with Fewer Workers
• Summary: Upstream and oilfield services jobs are declining, not due to falling production, but likely because of increased efficiency, technological advances, and ongoing industry consolidation.
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• U.S. Crude Oil Posts More Than 4% Weekly Gain
• Summary: U.S. crude oil gained more than 4% this week as recession fears eased and the risk of a wider war in the Middle East that could disrupt production and transportation loomed over the market. Oil advanced as the S&P 500 traded higher Friday, erasing most of its losses from a steep sell-off earlier in the week.
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• Texas Sees More Negative Prices as Natural Gas Markets Flip
• Summary: Natural gas prices in West Texas have turned negative on 57 trading days this year, a record high potentially driven by an oversupply from the Permian Basin. Energy companies have signaled recently that they are curbing gas production.
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• OPEC Cuts Oil Demand Growth Forecast, Highlighting Dilemma Over Oct Hike
• Summary: OPEC has reduced its 2024 global oil demand growth forecast due to weaker expectations for China, highlighting challenges for OPEC+ in increasing production from October, despite ongoing output cuts since 2022.
• Read more

• Houston Positioned to Become Crude Oil Export Leader as U.S. Production Grows
• Summary: As U.S. crude oil production peaks, the Port of Houston is poised to become a major export hub, benefiting from increased oil flows from the Permian Basin and the ongoing expansion of the Houston Ship Channel.
• 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.