Industry Newsletter Archives

Valor | Energy Connection – Apr. 7, 2025

Posted on April 7, 2025 by Valor

April 7, 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 continue to fall
Summary: Oil prices dropped significantly, with WTI briefly falling below $60 per barrel amid escalating U.S.-China trade tensions. Analysts warn that Trump’s tariffs could lead to industrial slowdowns, further depressing oil demand and potentially lowering prices. Major banks, including Goldman Sachs, have downgraded oil price forecasts, with WTI now projected to average $55 in 2026, reflecting growing recession risks and increasing supply from OPEC+.
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China halts U.S. LNG imports for longest since last trade war
Summary: China has not imported U.S. liquefied natural gas (LNG) for 60 days—the longest pause since the 400-day halt during the last U.S.-China trade war in 2020—amid escalating geopolitical tensions. As of now, no U.S. LNG shipments are en route to China, with analysts expecting the freeze to continue through 2025 due to China’s tariff hike from 15% to 49% on U.S. LNG. With ample inventories after a mild winter, Chinese buyers under long-term contracts are reselling U.S. LNG to Europe and Asia.
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ExxonMobil projects $900M Q1 boost, but crude prices threaten gains
Summary: ExxonMobil expects to report a $900 million profit increase in Q1 2025, reaching about $8.3 billion, driven by higher oil and gas prices and improved refining margins. However, falling crude prices—Brent dropping over 10% to around $65 per barrel—and weaker natural gas prices in Q2 could impact future earnings. To mitigate volatility, Exxon plans to invest $140 billion by 2030 into high-margin assets and achieve $7 billion in cost savings, aiming for an additional $20 billion in annual earnings and $30 billion in cash flow.
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BP CEO outlines strategy shift to boost oil, gas investment
Summary: BP’s CEO, Murray Auchincloss, announced a shift to prioritize oil and gas, increasing fossil fuel investments by 20% to $10 billion while reducing renewable energy funding by over $5 billion. This strategy aims to boost annual adjusted free cash flow by over 20% and achieve returns on average capital employed above 16% by 2027. The move is part of BP’s effort to reset its approach and drive higher shareholder value while managing energy transition risks.
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U.S. oil rig count jumps as gas rig count slides
Summary: The total U.S. oil and gas rig count fell by 2 to 590, down 30 from last year, with oil rigs increasing by 5 to 489, and gas rigs dropping by 7 to 96. Weekly U.S. crude production rose slightly to 13.580 million bpd, nearing the all-time high. Drilling activity in the Permian Basin fell by 3 rigs to 294, 23 fewer than last year, while the Eagle Ford count remained at 48. Oil prices slid sharply due to President Trump’s tariffs and OPEC+’s production hike, with WTI dropping 7.69% to $61.80 per barrel.
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Trump administration to hold oil, gas lease sale in Gulf of Mexico
Summary: The Trump administration will hold an oil and gas lease sale in the Gulf of Mexico, releasing a notice in June. This sale is part of a five-year leasing plan under Biden, which planned just three Gulf sales, angering the oil industry. The last sale in 2023 raised $382 million, but sales have been delayed by litigation over drilling’s impact on the Rice’s whale. Oil prices recently fell to $65 per barrel due to tariff concerns, further complicating energy companies’ decision to bid on the leases.
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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 – Mar. 31, 2025

Posted on March 31, 2025 by Valor

March 31, 2025 Edition

Oil inches up as investors await Trump’s actions on Russian oil, Iran
Summary: Oil prices edged up on Monday, with Brent crude rising 0.59% to $73.19 per barrel and WTI gaining 0.68% to $69.83, as investors reacted to President Trump’s threats of 25%-50% secondary tariffs on Russian oil buyers and possible military action against Iran over its nuclear program. Despite initial declines, prices stabilized as analysts debated whether Trump would act on his threats, with UBS noting rising supply risks while IG suggested market skepticism was capping gains. Meanwhile, negotiations to restart Kurdish oil exports through the Iraq-Turkey pipeline stalled due to unresolved payment and contract issues.
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Oil and gas execs reveal where they expect WTI oil price to be in the future
Summary: The first-quarter 2025 Dallas Fed Energy Survey found that executives from 124 oil and gas firms expect WTI crude oil prices to average $68 per barrel in six months, $70 in a year, $74 in two years, and $82 in five years. The survey also revealed that firms require an average of $41 per barrel to cover operating expenses for existing wells, up from $39 last year, while the breakeven price to profitably drill new wells is $65 per barrel, ranging from $61 to $70 depending on the region. Large firms need $31 per barrel to cover operating expenses and $61 to profitably drill, while small firms require $44 and $66, respectively.
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US oil, gas rig count drops first time in 3 weeks – Baker Hughes
Summary: U.S. energy firms reduced the total oil and gas rig count by one to 592 for the first time in three weeks, according to Baker Hughes. Oil rigs fell by two to 484, while gas rigs increased by one to 103, bringing the total rig count 5% lower than the same period last year. The Permian Basin saw the largest decline, losing three rigs and dropping to 297, the lowest level since February 2022.
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Peak Permian? Geology and water say we’re close
Summary: Some Permian Basin areas have hit geological limits, with the gas-to-oil ratio rising from 34% in 2014 to 40% in 2024, signaling production constraints. U.S. crude output is expected to reach 13.61 million bpd in 2025, but experts foresee a peak between 2027 and 2030. A high water-to-oil ratio—four barrels per barrel of oil—is also driving up costs, challenging long-term output.
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Trump’s 1st 2025 oil, gas leases net $40M from 34 parcels
Summary: The U.S. Interior Department reported nearly $40 million in revenue from oil and gas lease sales on public land during the first quarter of 2025, with 34 parcels covering 25,038 acres leased. The sales align with Trump’s Executive Order 14154, promoting American energy dominance, and revenue will be shared between the federal government and states including Montana, North Dakota, New Mexico, Wyoming, and Nevada. These leases, governed by the National Environmental Policy Act, have a 10-year term with a 16.67% federal royalty rate.
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BP, Shell, and Exxon signal one thing: Oil isn’t going anywhere
Summary: BP, Shell, and Exxon are ramping up oil and gas investments, with BP increasing spending by 25% and Shell targeting 4-5% annual LNG sales growth through 2030. U.S. supermajors like Exxon and Chevron never pivoted away from hydrocarbons—Exxon plans an 18% production boost in five years, while Chevron expands in Kazakhstan and acquires Hess’s Guyana assets. Despite energy transition talks, major oil firms remain focused on fossil fuels, with TotalEnergies balancing diversification while achieving a 14.8% return on capital.
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Valor | Energy Connection – Mar. 24, 2025

Posted on March 24, 2025 by Valor

March 24, 2025 Edition

Oil prices start the week with a dip
Summary: Crude oil prices declined at the start of the week, with Brent at $71.92 and WTI at $68.06 per barrel, despite two prior weekly gains fueled by U.S. sanctions on Iran and OPEC+ production quota compliance efforts. OPEC+ plans to proceed with a modest April output rollback of 138,000 barrels daily, amid concerns that a potential Ukraine-Russia ceasefire could boost Russian exports and pressure prices further, despite lingering doubts about member compliance with compensation cuts. Speculators increased Brent crude net long positions by nearly 53,000 lots to 206,138, driven by U.S. sanctions on Iran and short covering, according to ING analysts.
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New oil projects set to flood market in 2025
Summary: Global oil supply is set to rise by nearly 3 million barrels per day (bpd) in 2025, the largest increase in a decade, driven by major projects in Kazakhstan, Brazil, and Saudi Arabia, provided oil prices remain above $50 per barrel. However, demand uncertainty persists, with supply overhang projections ranging from 100,000 bpd (EIA) to 600,000 bpd (IEA), as China’s post-pandemic import normalization and sluggish global demand growth raise concerns. Despite this, IEA head Fatih Birol stressed the ongoing need for oil and gas investments to counter field declines and maintain energy security, signaling a shift from previous transition-focused narratives.
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Natural gas continues to see overhead resistance
Summary: Natural gas prices have seen a slight increase but continue to face strong resistance near the key $4 level, which has historically served as both support and resistance. If prices drop below Friday’s lows, they could decline further toward $3.50, signaling a bearish trend, whereas a breakout above $4 may push prices toward $4.20. Market volatility remains high, and seasonal factors such as rising temperatures and increasing storage levels are expected to reduce demand, contributing to further downward pressure. Given the cyclical nature of the market, traders should closely monitor storage reports and demand trends in the coming weeks.
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US oil and gas rigs rise for first time in three weeks, Baker Hughes says
Summary: U.S. energy firms added one oil and gas rig this week, bringing the total to 593, though the count remains 31 rigs (5%) lower than a year ago, according to Baker Hughes. Oil rigs fell by one to 486, while gas rigs increased by two to 102, with Oklahoma’s rig count reaching 53, the highest since May 2023. Despite forecasts of lower crude prices in 2025, the EIA projects U.S. crude output to rise to 13.6 million barrels per day and gas production to increase to 105.2 billion cubic feet per day, driven by a projected 91% increase in gas prices.
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AI boom favors natural gas over coal
Summary: The AI-driven surge in electricity demand is prolonging the operation of some U.S. coal plants, but natural gas remains the primary beneficiary of this growth. Despite President Trump’s efforts to boost coal power, analysts expect natural gas to capture most of the increasing energy needs due to its flexibility and reliability. The EIA projects a 6% rise in U.S. coal generation in 2025 due to higher natural gas prices but anticipates an 8% decline in 2026, while natural gas is expected to maintain steady growth amid rising AI-related power consumption.
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Trump open to extending Chevron’s oil license in Venezuela
Summary: President Trump is considering extending Chevron’s license to produce oil in Venezuela, despite previously stating he would reverse a Biden-era decision allowing its operations there. The Treasury Department had given Chevron until April 3 to wind down activities, but during a White House meeting with CEO Mike Wirth and other oil executives, Trump showed openness to an extension. The administration is also exploring financial penalties for countries engaging in business with Venezuela, while Chevron maintains compliance with U.S. laws and sanctions in its operations.
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Valor | Energy Connection – Mar. 17, 2025

Posted on March 17, 2025March 17, 2025 by Valor

March 17, 2025 Edition

Oil’s oversupply spiral: can prices stay above $60?
Summary: The IEA reports that global crude supply is exceeding demand by 600,000 bpd, pushing oil prices toward the $60-$80 per barrel range, with U.S. production expected to rise by 400,000 bpd to 13.6 million bpd in 2025. Overproduction by OPEC+ members, including Kazakhstan exceeding its quota by 299,000 bpd, and planned U.S. refinery shutdowns of 400,000 bpd are contributing to the surplus. While some analysts predict a prolonged price slump, others caution that demand surprises and inaccurate forecasts could trigger a market correction.
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U.S. natural gas hits 2-week low on record output
Summary: U.S. natural gas futures fell to a two-week low at $4.076 per mmBtu due to record production of 105.9 bcfd, negative Waha Hub prices caused by pipeline maintenance, and mild weather forecasts through April. Despite this, gas stockpiles remain 12% below normal after extreme winter demand, while LNG exports hit a new high of 15.7 bcfd in March. Gas prices at the Dutch TTF and Japan Korea Marker stand at $13 and $14 per mmBtu, respectively, as the U.S. remains the world’s top LNG supplier.
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Oil prices rise after U.S. vows ‘unrelenting’ attacks on Houthis
Summary: Oil prices rose on Monday as U.S. strikes on Yemen’s Houthi rebels heightened supply risks, with WTI crude gaining 1% to $67.84 per barrel and Brent crude rising 1% to $71.30 per barrel. The U.S. pledged continued attacks until Houthi aggression ceases, while China’s new economic stimulus plan further supported crude prices. However, gains were limited by expectations of a Russia-Ukraine ceasefire, which could bring more Russian oil back to the market.
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Goldman Sachs cuts oil price outlook amid oversupply fears
Summary: Goldman Sachs cut its Brent crude forecast for December 2025 by $5 to $71 per barrel, citing slower U.S. economic growth and increasing OPEC+ supply. Analysts warned that tariffs from President Trump’s trade policies could further weaken demand, while OPEC+ may reverse its planned 138,000 bpd supply increase if prices decline. The bank joins other major commodity traders and the IEA in predicting an oversupplied market, despite recent calls for more oil and gas investment.
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U.S. oil, gas rig count unchanged this week
Summary: The U.S. oil and gas rig count remained steady at 592 for the week ending March 14, down 37 rigs (6%) from a year ago, with oil rigs increasing by one to 487 and gas rigs decreasing by one to 100. Despite a projected 73% rise in gas prices in 2025, analysts expect crude prices to remain stable, while the EIA forecasts record-breaking U.S. oil and gas production through 2026. Industry executives at CERAWeek highlighted growing LNG and power demand but warned that infrastructure constraints could challenge future expansion.
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AI to fuel bumper year for M&A in US power sector
Summary: Mergers and acquisitions in the U.S. power sector have surged in 2025, with 27 deals worth $36.4 billion in the first two months, led by Constellation Energy’s $16.4 billion acquisition of Calpine. The boom is driven by soaring electricity demand from AI data centers, with power companies’ stocks rising between 82% and 220% since early 2024, enabling larger deals. Despite regulatory uncertainties, supply chain constraints, and potential labor shortages, institutional investors and private equity firms continue to invest heavily in power infrastructure, with $334 billion in undeployed capital at the end of 2024.
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Valor | Energy Connection – Mar. 10, 2025

Posted on March 10, 2025March 10, 2025 by Valor

March 10, 2025 Edition

Oil prices dip as tariff uncertainty keeps investors on edge
Summary: Oil prices declined on Monday, with Brent crude falling 44 cents to $69.92 per barrel and WTI dropping 40 cents to $66.64, marking WTI’s seventh consecutive weekly loss—the longest streak since November 2023. Market uncertainty stems from U.S. tariff policies affecting major oil suppliers like Canada, Mexico, and China, while potential sanctions on Iranian and Russian oil add volatility. Investors await monthly reports from the International Energy Agency and OPEC for demand and supply forecasts amid ongoing geopolitical tensions.
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States ease laws, offer incentives to attract power plants
Summary: U.S. states are accelerating efforts to build new power plants amid surging electricity demand driven by AI data centers and manufacturing incentives, with some offering financial incentives and deregulating approval processes. Pennsylvania is considering leaving the PJM regional grid to expedite projects, while states like Indiana, Michigan, and Louisiana explore nuclear energy, and Missouri and Kansas compete to attract investments in natural gas plants. Lawmakers and consumer advocates warn that shifting financial risks to ratepayers and deregulating utilities could lead to higher costs and inefficiencies.
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U.S. oil, gas rig count falls
Summary: The US oil and gas rig count fell by 1 to 592 this week, down 30 from the same time last year, with oil rigs remaining at 486 (down 18) and gas rigs decreasing to 101 (down 14). In the Permian Basin, rig count declined by 1 to 304—9 fewer than last year—while Eagle Ford added 1 rig to reach 49, though that’s still 3 less than the previous year. Meanwhile, US crude production averaged 13.508 million barrels per day for the week ending February 28, 2025, with WTI trading at $67.17 per barrel (up 1.22%) and Brent at $70.41 per barrel (up 1.37%).
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“Drill, baby, drill”: natural gas producers eye a boom
Summary: Rising U.S. natural gas prices, up 160% in a year to $4.26 per MMBtu, are driving producers to increase output after months of curtailments in 2024. Depleted inventories—now 25% lower than last year and 11% below the five-year average—along with surging LNG exports and new export facilities like Venture Global’s Plaquemines LNG, are fueling demand. In response, U.S. dry gas production rose 2.1% to 106.2 Bcf/d, and the gas rig count increased by three to 102 rigs as producers capitalize on higher prices.
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U.S. energy chief to seek $20 billion to refill oil reserve, Bloomberg reports
Summary: U.S. Energy Secretary Chris Wright estimates it will take $20 billion and several years to refill the Strategic Petroleum Reserve (SPR) to near capacity, following the sale of nearly 300 million barrels under the Biden administration, which pushed reserves to a 40-year low of 395 million barrels. The SPR, created in 1975 and capable of storing 727 million barrels, would still fall short of full capacity even if the full amount were allocated, as current oil prices would only allow the purchase of about 301 million barrels. While no formal budget request has been made to Congress, the Energy Department acknowledges the challenge of securing such funding amid other priorities.
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New report shows U.S.A oil and gas wages by industry
Summary: TIPRO’s latest State of Energy report shows that in 2024, Crude Petroleum Extraction paid the highest average wage at $227,080—up $4,389 from 2023—while Natural Gas Extraction and Petroleum Refineries paid $176,800 and $172,191 respectively. The national average wage across the U.S. oil and gas industry reached $81,808 in 2024, and direct employment grew to 2,055,516 jobs, an increase of 10,694 from 2023. The report, now in its 10th edition, provides a detailed analysis of wage growth and employment trends across key sectors in the U.S. energy industry.
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Valor | Energy Connection – Feb. 24, 2025

Posted on February 24, 2025February 24, 2025 by Valor

February 24, 2025 Edition

Oil dips on pending Kurdistan supply resumption
Summary: Oil prices declined on Monday, extending last week’s losses, as markets anticipated the resumption of crude exports from Iraq’s Kurdistan region. Brent crude fell 20 cents to $74.23 per barrel, while WTI dropped 28 cents to $70.12 per barrel, following a $2 decline on Friday. Meanwhile, global supply concerns persist as the U.S. and Russia prepare for peace talks on Ukraine, with potential impacts on oil sanctions and seaborne shipments.
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BP to abandon green energy target and ramp up oil
Summary: BP will abandon its plan to expand renewable energy generation 20-fold by 2030, scrapping its target of reaching 50 gigawatts (GW) and maintaining its current 8.2 GW capacity. Under pressure from activist investor Elliott Management, which holds a 5% stake, BP is shifting focus back to fossil fuels, selling 10 U.S. onshore wind farms and spinning off offshore wind assets. The company’s profits fell to $8.2 billion in 2024 from $13.4 billion in 2023, prompting cost-cutting measures, a 5% staff reduction, and slashed executive bonuses.
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US oil and gas rig count hits highest since June, says Baker Hughes
Summary: U.S. oil and gas rigs rose by four to 592 this week, the highest since June, with oil rigs increasing by seven to 488, while gas rigs fell by two to 99, according to Baker Hughes. Despite the rise, the total rig count remains 34 rigs (5%) below last year’s level. The EIA forecasts U.S. crude output to grow from 13.2 million barrels per day (bpd) in 2024 to 13.6 million bpd in 2025, while gas production is expected to rise to 104.6 billion cubic feet per day (bcfd) in 2025.
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25% royalty rate cap on prime oil and gas land heads to the House
Summary: The New Mexico Senate passed Senate Bill 23 in a 21-15 vote, advancing legislation to raise the maximum royalty rate on prime oil and gas land in the Permian Basin from 20% to 25%. Supporters argue the increase aligns with industry standards for high-value resources, while opponents claim it could harm an industry crucial to New Mexico’s economy. The State Land Office halted leasing top-tier tracts last year in anticipation of the rate hike, and the bill now moves to the House for further debate.
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Feds approve another deepwater oil export terminal off Texas coast
Summary: The U.S. government has approved the GulfLink deepwater oil export terminal off the Texas coast, marking another step in expanding American crude export infrastructure. The terminal will load up to 1 million barrels per day onto the world’s largest tankers, boosting U.S. energy exports. It is part of a broader buildout, including two new pipelines and a 319-acre tank farm. Supporters argue it enhances energy security and economic growth, while critics warn of increased greenhouse gas emissions—estimated at 355,000 to 710,000 tons annually—and potential environmental risks to coastal communities.
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U.S. crude oil inventories increase by 4.6 million barrels
Summary: U.S. crude oil inventories rose by 4.6 million barrels to 432.5 million barrels as of February 14, 2025, 3% below the five-year average, according to EIA data. Refinery inputs averaged 15.4 million barrels per day (bpd) at 84.9% capacity, while gasoline and distillate fuel production stood at 9.2 million bpd and 4.7 million bpd, respectively. Total petroleum inventories increased by 0.2 million barrels, with motor gasoline inventories down by 0.2 million barrels and distillate fuel inventories up by 2.1 million barrels, 12% below the five-year average.
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Valor | Energy Connection – Feb. 17, 2025

Posted on February 17, 2025February 17, 2025 by Valor

February 17, 2025 Edition

WTI holds above $70 amid Russia-Ukraine peace talks
Summary: WTI crude oil remains cautiously above $70 as investors await further developments in the Russia-Ukraine peace talks, which could potentially flood the market with more Russian oil and negatively affect prices. Despite President Trump’s efforts to mediate, analysts foresee a decline in prices if the conflict resolves. Additionally, OPEC is reportedly delaying its planned supply increase, offering temporary relief to the market.
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Diamondback nears Permian deal to buy shale producer Double Eagle
Summary: Diamondback Energy is in advanced discussions to acquire Double Eagle Energy IV, a private West Texas oil producer, in a deal potentially exceeding $5 billion. Double Eagle controls over 95,000 net acres in the Midland Basin portion of the Permian Basin, making it one of the largest private equity holdings in the region. This move follows Diamondback’s recent $26 billion acquisition of Endeavor Energy Resources, reflecting its strategy to expand its presence in the Permian Basin.
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US rig count inches up but still trails last year
Summary: U.S. oil rigs have increased by 1, totaling 768 rigs for the week ending February 16, 2025, yet this figure is still lower than the 785 rigs recorded at the same time last year. The Permian Basin shows continued growth, but companies are exercising caution due to economic uncertainties. This slight uptick in rig count comes amid an ongoing recovery effort within the industry, facing challenges in meeting the output seen in the previous years.
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Texas House Bill 838 aims to make power grid interconnections easier
Summary: Texas House Bill 838 aims to facilitate power grid interconnections by requiring facilities under ERCOT to connect with grids in neighboring states. This bill, which follows the power grid failures of February 2021, would allow Texas power generation facilities to purchase wholesale power outside ERCOT, addressing grid reliability issues. However, critics argue that even with these interconnections, extreme weather may still lead to load shedding, as neighboring grids could face their own power shortages.
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Chevron to lay off 20% of workforce as it boosts crude output with fewer rigs
Summary: Chevron is set to lay off up to 20% of its workforce as part of cost-cutting measures to reduce $2-3 billion in expenses by 2026. Despite the cuts, U.S. oil production continues to rise, with a 55% increase since 2014, and Chevron’s Permian Basin output hitting new highs through efficiency improvements. New technologies, like optimized drilling and electric pumps, enable higher output with fewer rigs, while Chevron expects a 9-10% production increase in 2025.
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Trump forms energy council, expands LNG exports, and lifts offshore drilling ban
Summary: President Trump signed an executive order creating the National Energy Dominance Council to boost domestic oil and gas production. The administration also approved a major LNG export project in Louisiana, the first such approval under his administration. Additionally, Trump directed the reversal of Biden’s offshore drilling ban and vowed to revive a canceled pipeline to reduce Northeast energy prices by up to 70%.
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Valor | Energy Connection – Feb. 11, 2025

Posted on February 11, 2025February 17, 2025 by Valor

February 11, 2025 Edition

Oil nears 3-day winning streak as traders assess tariffs and sanctions
Summary: Oil prices are on track for a third consecutive daily gain, with U.S. crude futures poised to settle at their highest level in two weeks. This upward trend comes as traders assess the implications of President Trump’s tariff policies and the impact of sanctions on Iran and Russia. Analysts suggest that the market may have overreacted to tariff concerns, noting that the actual effect on oil demand could be limited.
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Europe’s oil demand may rise as gas hits $100 per barrel
Summary: Europe’s oil demand may increase as natural gas prices surge to an oil-equivalent of $100 per barrel, making oil a more cost-effective alternative. The spike in gas prices is driven by supply constraints and higher demand, especially in winter. As industries and power generators seek cheaper fuel options, oil consumption in Europe could see significant growth.
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ConocoPhillips Q4 earnings surpass expectations, driven by the Permian
Summary: ConocoPhillips reported fourth-quarter 2024 adjusted earnings per share of $1.98, surpassing analysts’ expectations of $1.89, though down from $2.40 the previous year. The company’s revenue for the quarter was $14.74 billion, a slight decrease from $15.31 billion in the same period last year. The improved earnings were primarily due to increased oil equivalent production volumes, which averaged 2,183 thousand barrels of oil equivalent per day, up from 1,902 MBoe/d in the prior year.
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House passes bill restricting presidential oil drilling bans
Summary: The U.S. House passed a bill requiring congressional approval before any president can ban oil and gas leasing on federal lands and waters. The bill, which passed with a 225-204 vote, aims to prevent future executive actions like those taken by the Biden administration to limit drilling. Supporters argue it ensures energy security, while opponents claim it undermines environmental protections and presidential authority.
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U.S. drillers add oil and gas rigs for second week in a row
Summary: U.S. drillers increased oil and gas rig counts by 4, reaching a total of 630 rigs, marking the second consecutive week of growth, according to Baker Hughes. The Permian Basin saw the largest increase, adding four rigs, highlighting the resilience of U.S. shale producers. Despite ongoing oil price fluctuations, the uptick reflects sustained investments in exploration and production capacity, with drillers continuing to expand operations in key shale regions like the Permian.
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BP vows ‘fundamental reset’ in strategy as profit plunges
Summary: BP CEO Murray Auchincloss announced a “fundamental reset” in the company’s strategy, likely shifting focus from renewable energy to increased investment in oil and natural gas production. BP’s 2024 earnings showed a significant drop, with adjusted profit falling by 60% in Q4 and annual profit dropping to $8.9 billion. Analysts believe BP’s previous green strategy, initiated under former CEO Bernard Looney, led to underperformance, and the company is now under pressure from investors, including Elliott Investment Management.
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Valor | Energy Connection – Jan. 20, 2025

Posted on January 20, 2025 by Valor

January 20, 2025 Edition

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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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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