Category: Industry Newsletter

December 9, 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.

• Oil Prices Mixed as Rising Mideast Tensions Offset Demand Concerns
• Summary: Oil prices fluctuated as Middle East tensions balanced weak demand concerns, influenced by China’s stimulus measures, Saudi price cuts, and upcoming U.S. inflation data.
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1. California Tackles Fuel Price Volatility Amid Refinery Closure Challenges
2. Summary: California’s new fuel inventory law seeks to reduce price volatility, but Phillips 66’s refinery closure highlights ongoing supply challenges and increasing reliance on imports.
3. Read more

1. Goldman Sachs Maintains 2025 Brent Oil Price Forecast at $76 Per Barrel
2. Summary: Goldman Sachs holds its 2025 Brent oil forecast at $76 per barrel, citing balanced supply from lower OPEC+ output and rising non-OPEC production, with short-term risks from potential Iran supply disruption.
3. Read more

• BP Looks to Sell a Minority Stake in Its U.S. Natural Gas Pipelines
• Summary: BP is considering selling a 49% stake in its U.S. natural gas pipeline network for up to $3 billion to reduce debt, while also exploring a minority stake sale in its offshore wind business amid industry-wide midstream consolidation.
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1. US Drillers Add Oil and Gas Rigs for First Time in 8 Weeks
2. Summary: U.S. energy firms added seven oil and gas rigs this week, the first increase in eight weeks, bringing the total to 589, though still 6% below last year’s count, according to Baker Hughes.
3. Read more

• US to Offer Oil, Gas Leases in Alaska Wildlife Refuge on Jan. 9
• Summary: The Biden administration will auction 400,000 acres in Alaska’s Arctic National Wildlife Refuge for oil and gas drilling on January 9, balancing legal requirements with environmental considerations, while facing opposition from conservation groups.
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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.

December 2, 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.

• Thanksgiving Perspective – What a Difference a Decade Makes
• Summary: A decade after Saudi Arabia’s attempt to dominate the oil market, advanced U.S. extraction techniques have driven a significant resurgence, making the U.S. the world’s leading oil producer for six consecutive years.
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1. Oil Gains on Chinese Data and Gears of Israel-Lebanon Ceasefire Collapse
2. Summary: Oil prices rose over 1% due to strong factory activity in China and Middle East tensions, with Brent and WTI climbing amid expectations for OPEC+ discussions on oil policy adjustments.
3. Read more

1. Impact of Trump’s Tariffs on Canada on U.S. Gas Prices
2. Summary: President-elect Donald Trump’s proposed tariffs on Canadian imports, including oil, could increase U.S. fuel prices due to the heavy reliance on Canadian crude, particularly affecting Midwest refineries and ultimately leading to higher pump prices.
3. Read more

1. Chinese Oil Giant Launches Another Project
2. Summary: CNOOC has launched its Huizhou 26-6 oilfield project in the South China Sea, featuring China’s first intelligent offshore drilling platform, with expectations of peak production reaching 20,600 barrels of oil equivalent per day by 2027.
3. Read more

• US Drillers Cut Oil and Gas Rigs for Third Week in a Row
• Summary: U.S. energy firms reduced oil and gas rigs for the third consecutive week, bringing the rig count to its lowest since September (582) amid declining prices, higher costs, and a focus on debt reduction and shareholder returns.
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• Trump Plans Energy Push to Boost Gas Exports, Oil Drilling
• Summary: President-elect Donald Trump plans to prioritize energy policies by expanding LNG exports, accelerating federal and offshore drilling, repealing climate regulations, and reviving projects like the Keystone Pipeline.
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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.

November 25, 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.

• Trump Prepares Wide-Ranging Energy Plan to Boost Gas Exports, Oil Drilling
• Summary: Donald Trump’s incoming administration plans to boost U.S. energy production by approving LNG export permits, expediting drilling permits, and increasing offshore oil lease sales, while also repealing key climate policies of the previous administration.
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1. U.S. Natgas Producers Target AI-Driven Power Demand Surge
2. Summary: S&P Global Ratings estimates that U.S. data center power demand will increase by 12% annually until 2030, potentially boosting natural gas demand as energy needs expand.
3. Read more

1. US Natural Gas Drillers to Lift 2025 Output, Reversing Year of Cuts
2. Summary: U.S. natural gas production is expected to decline in 2024 for the first time since 2020, with a rebound anticipated in 2025 as rising LNG exports drive a significant increase in gas prices.
3. Read more

1. Global Oil, Gas Contract Activity Sees Decrease
2. Summary: Global oil and gas contract activity declined 35 percent quarter-on-quarter to $35.7 billion in Q3, though volumes remained stable, supported by major projects in the Middle East.
3. Read more

• US Drillers Cut Oil and Gas Rigs for Second Week in a Row 
• Summary: U.S. oil rigs fell week-over-week and saw a year-over-year decrease of 39 rigs, or 6%, as the industry focused on reducing costs and prioritizing financial stability over output expansion.
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• ConocoPhillips completes acquisition of Marathon Oil Corporation
• Summary: ConocoPhillips has completed its acquisition of Marathon Oil, enhancing its portfolio with high-quality, low-cost inventory and expecting to deliver over $1 billion in synergies within the next 12 months.
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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.

November 18, 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.

• European Oil Giants Step Back From Renewables Path
• Summary: BP and its rivals, Shell and Equinor, are scaling back their low-carbon initiatives to refocus on oil and gas due to profitability challenges and market conditions.
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1. Liberty Energy stock jumps after Trump picks CEO Chris Wright as energy secretary
2. Summary: Shares of Liberty Energy and Oklo rose after President-elect Donald Trump appointed Chris Wright, CEO of Liberty and board member of Oklo, as the next U.S. Secretary of Energy.
3. Read more

1. US Drillers Cut Oil and Gas Rigs for First Time in Four Weeks
2. Summary: U.S. energy firms reduced the number of operating oil and natural gas rigs for the first time in four weeks, bringing the total rig count to 584, a 6% decrease from last year and the lowest since early September, according to Baker Hughes.
3. Read more

1. Oil Prices Tick Higher as Russia-Ukraine Tensions Escalate
2. Summary: Oil prices increased due to intensified conflict between Russia and Ukraine, despite concerns about Chinese fuel demand and predictions of a global oil surplus affecting market sentiment.
3. Read more

• USA EIA Reveals Latest Henry Hub Gas Price Forecast
• Summary: The U.S. Energy Information Administration has adjusted its Henry Hub natural gas price forecast, predicting an average of $2.17 per MMBtu for 2024 and $2.90 for 2025, with prices expected to rise due to increased LNG exports and strong international demand.
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• EPA Finalizes Methane Tax for Oil and Gas Producers Under Inflation Reduction Act
• Summary: The Biden-Harris EPA has implemented a methane fee targeting oil and gas producers who exceed emission thresholds, with penalties ranging from $900 to $1,500 per ton from 2024 to 2026, as mandated by the Inflation Reduction Act.
• 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.

November 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.

• UAE Summit Eyes Energy Expansion Amid Global Uncertainty
• Summary: The UAE’s oil-and-gas summit focuses on increasing energy output despite global volatility and recent calls for reducing fossil fuels, with officials emphasizing diverse energy strategies and avoiding U.S. political discussions as they maintain close ties with Russia.
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1. OPEC+ Delays Planned Oil Output Increase Amid Weak Demand and Rising Supply
2. Summary: Citing weak demand and rising supply, OPEC+ postponed a December output increase by one month, extending existing cuts of 2.2 million barrels per day through December to support the oil market.
3. Read more

1. Exxon and Chevron Face Profit Dip as Oil Prices Drop
2. Summary: Exxon and Chevron reported lower third-quarter profits as oil prices decline amid rising global supply and weaker demand, but both companies remain committed to investor payouts, relying on cost-cutting and cash reserves to weather potential long-term price pressures.
3. Read more

1. Canada Unveils Emissions Cap for Oil and Gas Sector to Boost Cleaner Production
2. Summary: Today, Canada officially released draft regulations to cap oil and gas emissions, targeting a 35% reduction by 2030 and encouraging reinvestment into alternative technologies for global competitiveness.
3. Read more

• US Oil and Gas Rig Count Unchanged this Week
• Summary: The U.S. rig count remained at 585 as of Nov. 1, down 5% from last year, with oil rigs dropping to 479 and gas rigs rising to 102, according to Baker Hughes.
• Read more

• Europe Faces Volatile Gas Prices Despite High Storage Levels
• Summary: Despite full gas storage, Europe’s reliance on Russian supply and limited alternative sources have led to volatile prices and concerns that gas supply issues may worsen in 2025, especially if winter demand surges.
• 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.

October 28, 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.

• Oil falls 5% on Reduced Risk of Wider Middle East War
• Summary: Oil prices fell by $4 a barrel after Israel’s airstrikes on Iranian facilities did not target oil or nuclear sites, reducing geopolitical risks affecting energy supplies.
• Read more

1. China’s Steel Mills and Oil Refiners Bear Brunt of Tepid Economy
2. Summary: Chinese oil refiners are facing deepening losses due to weak fuel demand and an economic slowdown, with recent stimulus measures expected to have a limited impact on boosting consumption.
3. Read more

1. Renewable Energy Pullback By BP Continues To Gather Pace
2. Summary: BP has shifted focus back to high-margin oil and gas, scaling back renewable investments, including wind and solar, while aiming to maintain its net zero targets amid investor concerns and a declining share price.
3. Read more

1. US Oil/Gas Rig Count Steady This Week
2. Summary: U.S. energy firms kept the rig count steady this week, though the total remains 6% lower than the same time last year, as companies focus on managing costs and shareholder returns amid lower oil and gas prices.
3. Read more

• New Mexico Weighs Proposed Drilling Restrictions Impact
• Summary: A New Mexico study on proposed drilling restrictions to protect public health suggests these measures could reduce crude output by 12.5 million barrels in the first year, though environmental advocates argue health benefits outweigh the potential revenue loss.
• Read more

• Uncertainty Dominates Oil, Gas Prices
• Summary: Oil prices remain uncertain amid Middle East tensions and OPEC+ production capacity, while natural gas demand may stay low in the near term due to mild weather and high storage levels.
• 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.

October 7, 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.

• Oil Prices Extend Gains, Lifting Brent Crude Towards $80 on Fears of Wider Middle East Conflict
• Summary: Oil prices continued to rise with Brent nearing $80, fueled by increased market concerns over potential Middle East conflicts and disruptions to oil exports from the region.
• Read more

1. BP Abandons Goal to Cut Oil Output, Resets Strategy
2. Summary: BP has abandoned its target to cut oil and gas output by 2030, as CEO Murray Auchincloss refocuses on profitable investments in oil and gas to restore investor confidence and reposition the company for higher returns.
3. Read more

1. What’s the Outlook for Oil and Gas Prices as Middle Eastern Tensions Heat Up?
2. Summary: Despite escalating Middle East tensions and rising oil prices due to potential supply disruptions, the long-term outlook suggests oil prices might decline as global oil supply continues to exceed demand.
3. Read more

1. US Drillers Cut Oil and Gas Rigs for Third Week in a Row
2. Summary: U.S. energy firms reduced operational oil and natural gas rigs for the third consecutive week, signaling a future output decline due to lower prices, higher costs, and a focus on financial health.
3. Read more

• Shell Sees Strong Natural-Gas Production in Third Quarter
• Summary: Shell Plc experienced strong performance in its natural gas and upstream businesses during the third quarter, although oil-refining margins fell and the company anticipates a loss in its chemicals segment.
• Read more

• US Supreme Court Declines to Pause EPA Mercury, Methane Rules
• Summary: The U.S. Supreme Court refused to block new EPA rules aimed at reducing mercury and methane emissions, despite challenges from Republican-led states and industry groups.
• Read more

Contact Valor Today

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 23, 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.

• Oil Settles Lower on Weak Euro Zone Business Activity
• Summary: Oil prices fell due to disappointing business activity in the euro zone and concerns over weak demand, with additional downward pressure from economic challenges in China and a slowdown in European manufacturing.
• Read more

1. US Drillers Cut Oil, Gas Rigs for Fifth Time in Six Weeks
2. Summary: U.S. energy firms reduced the number of operating oil and natural gas rigs for the fifth time in six weeks, indicating a cautious approach amid fluctuating fuel prices and economic pressures, as reported by Baker Hughes.
3. Read more

1. GlobalData: Oil and gas industry slows its energy transition
2. Summary: The GlobalData report indicates that the global oil and gas industry is refocusing on fossil fuels due to heightened energy security concerns from the Ukraine war, slowing down but not abandoning the shift towards low-carbon energy transitions.
3. Read more

1. Oil, Gas Operators Monitor Tropical Disturbance Headed Toward Gulf of Mexico
2. Summary: As a tropical disturbance approaches the US Gulf of Mexico, oil and gas operators like Shell and Chevron are taking precautionary measures, including evacuating personnel and pausing operations, though Chevron reports no current impact on production.
3. Read more

• Artificial Intelligence could unlock efficiency and safety gains for oil and gas sector
• Summary: The adoption of Artifical Intelligence (AI) in the oil and gas sector, although slower due to its complex business models and digital demands, is advancing as companies partner with AI startups and Big Tech for pilot projects and adapt risk management to harness AI’s potential for enhancing process efficiency, predictive accuracy, and real-time monitoring, despite facing challenges like cybersecurity and talent competition.
• Read more

• Texas Oil and Gas Jobs Show Three Months of Jobs Growth
• Summary: Texas continues to lead U.S. job growth, with the oil and natural gas industry adding jobs for the third consecutive month, reflecting its crucial role in meeting both local and global energy demands.
• 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.

September 16, 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.

• Viper Energy Strikes $1.1 Billion in Deals to Expand Midland Basin Footprint
• Summary: Viper Energy Partners LLC has agreed to acquire mineral and royalty interests from Tumbleweed Royalty IV LLC for $461 million in cash and 10.1 million Viper units, with the deal expected to significantly boost Viper’s production in the Midland Basin, driven by Diamondback Energy’s development plans.
• Read more

1. Brent Crude Rises Amid Unusual Investor Pessimism and Tight Supply
2. Summary: Brent crude prices rose slightly per barrel, but market sentiment is unusual, with a record low in investor confidence and more bets on falling prices, despite declining global oil inventories, signaling potential volatility ahead.
3. Read more

1. U.S. Oil and Gas Rig Count Jumps
2. Summary: The U.S. rig count rose by 8 to 590 this week, reversing a recent decline, with oil rigs up by 5 and gas rigs up by 3, while crude production held steady and oil prices saw a slight increase.
3. Read more

1. Fifth of US Gulf of Mexico Crude Oil and 28% of Gas Offline
2. Summary: Nearly 20% of crude oil and 28% of natural gas production in the U.S. Gulf of Mexico remains offline due to Hurricane Francine, with cumulative losses reaching 2.16 million barrels of oil and 4.635 billion cubic feet of gas.
3. Read more

• Federal Judge Temporarily Blocks Biden Administration Rule to Limit Flaring of Gas at Oil Wells
• Summary: A federal judge in North Dakota has temporarily blocked a Biden administration rule aimed at reducing gas flaring at oil wells, citing concerns that the rule may overstep regulatory authority and hinder oil and gas production.
• Read more

• DOE Announces $15 Million to Reduce Methane Emissions From the Oil and Gas Sector
• Summary: The U.S. Department of Energy announced $15 million in funding for research to reduce methane emissions from undocumented orphaned oil and gas wells, supporting the Biden administration’s 2030 methane reduction goals.
• 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.

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.
3. Read more

• 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.
• Read more

• 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.
• Read more

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.
• Read more

• 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.
• 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.