Category: Industry Newsletter

August 4, 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.

• BP boosted by biggest oil discovery in 25 years
• Summary: On August 4, BP announced its biggest oil and gas discovery in 25 years offshore Brazil, its tenth find in 2025, causing its shares to rise 1.7% to 405.5p. The find aligns with BP’s renewed focus on hydrocarbons and its plan to grow global upstream production to 2.3 to 2.5 million barrels of oil equivalent per day by 2030. This news comes just before its August 5 Q2 results, where a $300 million to $500 million benefit from refining margins is expected to be offset by the negative impact of lower oil prices.
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1. OPEC+ agrees to another large oil output hike, sources say
2. Summary: On August 3, sources said OPEC+ reached a preliminary deal to increase its oil production by 548,000 barrels per day (bpd) for September, amid supply concerns linked to Russia. If agreed, this 548,000-bpd hike would mark a full reversal of the group’s largest output cut tranche of 2.2 million bpd and allow the UAE to raise output by 300,000 bpd. This follows large hikes in previous months, but a separate voluntary cut of about 1.65 million bpd from eight key members remains in place until the end of the year 2026.
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1. Chevron, Exxon earnings highlight shift from rivals to allies
2. Summary: U.S. oil supermajors Chevron and Exxon Mobil both reported over 20% profit declines in Q2 2025, with Chevron’s EPS down 30.6% to $1.77 and Exxon’s down 23% to $1.64. Despite lower oil prices, Exxon’s production hit a 25-year Q2 high of 4.63 million boe/d, returning $9.2B to shareholders, while Chevron produced 3.39 million bpd and returned $5.5B. The reports highlight a new era of cooperation, with the rivals now partners in Guyana’s Stabroek block after Chevron finalized its Hess acquisition for a key 30% stake.
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1. Oil prices rise for fourth day on Trump tariff supply fears
2. Summary: Oil prices climbed for the fourth straight session at the end of July, supported by concerns over potential supply disruptions. Market sentiment was influenced by newly proposed tariffs on countries importing Russian crude, along with broader trade-related risks. Brent and WTI posted modest gains, despite U.S. crude inventories rising by 7.7 million barrels, as tightening supply expectations continued to support prices.
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• EPA pushes back rollout of methane emission rule for oil and gas
• Summary: The EPA has issued an interim final rule granting oil and gas operators an 18-month extension to comply with methane emission standards originally finalized in 2024. The agency also extended deadlines for states to submit emissions plans. The delay stems from concerns about operational readiness and overlaps between federal performance standards. Critics have raised questions about environmental and public health implications.
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1. Nat-Gas prices recover on forecasts for hotter U.S. weather
2. Summary: U.S. natural gas prices recovered from a 3.25-month low on July 31, with the September Nymex contract closing up 2.00% on forecasts for hotter weather in early August. The recovery followed a price drop caused by a bearish EIA report, which showed that inventories for the week ended July 25 rose by 48 bcf, higher than the expected 41 bcf. This bearish supply outlook is further supported by total inventories standing 6.7% above their 5-year average and the active gas rig count rising by five to a nearly 2-year high of 122 rigs.
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• U.S. weekly Baker Hughes oil rig count actual 410, previous 415
• Summary: For the week of July 25, the U.S. total rig count stood at 540, down 46 from a year ago, as the oil rig count fell by five to a new low of 410 while gas rigs rose by two to 124. The oil rig count hit its lowest since September 2021 due to lower prices, while the gas rig count reached its highest since August 2023, driven by strong export demand and higher spot prices. Despite this, the EIA projects crude output will rise to 13.4 million bpd in 2025, and a projected 68% gas price hike will boost gas output to 105.9 bcfd.
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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.

July 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.

• Interior proposes easing oil and gas commingling rules
• Summary: The Interior Department has proposed rule updates allowing oil and gas operators to commingle production from multiple leases, even those with different ownership and royalty rates. Enabled by modern metering technology ensuring accurate royalty allocation, the change could generate up to $1.8 billion in annual industry savings for reinvestment in new production. The rule is intended to improve operational efficiency, reduce surface disturbance, and support increased domestic energy production.
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1. EIA revises oil price forecast but still expects prices to decrease
2. Summary: In its July Short-Term Energy Outlook, the EIA revised its 2025 Brent crude oil price forecast up by $3 to an average of $69 per barrel, citing geopolitical risk from the Israel-Iran conflict. However, the agency still expects prices to decrease to about $58 per barrel in 2026 as global supply growth outpaces demand. Consequently, EIA projects U.S. crude production will dip from a high of 13.5 million bpd in Q2 2025 to 13.3 million bpd by Q4 2026, averaging 13.4 million bpd for both years.
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1. US rig count falls for 12th time in 13 weeks, says Baker Hughes
2. Summary: For the 12th time in 13 weeks, the U.S. oil and gas rig count fell, dropping two to 542 as of July 25, down 8% year-over-year and marking a fifth consecutive monthly decline. This drop was driven by oil rigs, which fell by seven to a low of 415, while gas rigs rose by five to 122; the Permian Basin rig count also fell by three to a new low of 260. Despite this drilling slowdown, the EIA projects crude output will still rise to 13.4 million bpd in 2025, and a 68% gas price hike will boost gas output to 105.9 bcfd.
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• First-half 2025 natural gas price volatility down in U.S.
• Summary: U.S. natural gas price volatility declined in the first half of 2025, with quarterly volatility falling from a high of 81% in Q4 2024 to 69% by mid-2025, according to the EIA. This stability reflects a major inventory swing, as storage went from 4% below the 5-year average in Q1 to 6% above average by the end of Q2 (a 173 bcf surplus) due to robust injections. The recovery was driven by a seven-consecutive-week stretch of storage injections over 100 bcf, the longest such period since 2014, easing supply concerns.
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• New Mexico lawmakers approve oil royalty rate hike for prime land
• Summary: By a 37-31 vote, the New Mexico Legislature passed a bill to increase the top royalty rate for new oil and gas development on prime state trust lands from 20% to 25%. The proposal, now awaiting the governor’s signature, aims to maximize returns from the Permian Basin and match the 25% royalty rate already charged in neighboring Texas. Royalty payments from the nation’s No. 2 oil-producing state go into a trust that distributes about $1.2 billion annually to the state’s public schools, universities, and hospitals.
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1. S&P Global: Permian methane intensity drops by half in two years
2. Summary: The methane emissions intensity of oil and gas production in the Permian Basin declined by more than 50% from 2022 to 2024, according to a new S&P Global Commodity Insights analysis. In 2024 alone, methane intensity fell 29% to 0.44% per barrel of oil equivalent as absolute annual emissions dropped 21.3 billion cubic feet (bcf), a 22% decline from the year prior. The analysis, based on 500+ aerial surveys covering 90% of basin production, attributes this reduction to better equipment and using AI for advanced leak detection.
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1. Oil prices settle at 3-week low on US and China economic worries
2. Summary: On July 25, oil prices hit a three-week low as Brent crude settled down 1.1% at $68.44 and WTI crude fell 1.3% to $65.16, marking weekly losses of about 1% and 3% respectively. The decline was driven by concerns over weak U.S. economic data and China’s 0.3% dip in fiscal revenue, coupled with signs of growing supply from OPEC+ and potentially Venezuela. The U.S. is preparing to allow firms like Chevron to operate in Venezuela, a move that could boost the nation’s oil exports by more than 200,000 barrels per day.
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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.

July 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.

• Chevron wins Exxon case but loses time, oil and billions
• Summary: On July 18, Chevron won its arbitration case against Exxon Mobil, allowing its $55 billion acquisition of Hess and its 30% stake in Guyana’s 11-billion-barrel Stabroek block to finally close. The year-long delay caused by Exxon’s challenge cost Chevron an estimated $3 billion in lost 2024 profit, $50-$100 million in legal fees, and contributed to a 9% drop in its share price. With the deal now closed, Chevron expects to realize $1 billion in cost synergies by the end of 2025, securing a key asset for its future growth.
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1. US drillers add oil/gas rigs for first time in 12 weeks, Baker Hughes says
2. Summary: For the first time in 12 weeks, the U.S. oil and gas rig count rose, climbing seven to 544 as of July 18, the largest weekly gain since December but still down 7% year-over-year. The increase was driven entirely by natural gas rigs, which rose by nine to 117 (their biggest jump since July 2023), while oil rigs actually fell by two to a low of 422. Despite a planned 3% capex cut for 2025, the EIA projects crude output will rise to 13.4 million bpd and a 68% gas price hike will boost gas output to 105.9 bcfd.
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1. Interior Department eases rules to speed up plugging of orphaned wells
2. Summary: The Interior Department has revised guidelines for its $780 million State Matching Grant and $1.93 billion State Formula Grant programs to accelerate plugging orphaned oil and gas wells. The updated guidance cuts federal red tape by removing methane measurement requirements, eliminating the department’s post-award environmental review, and giving states more discretion. The revisions are intended to allow states to accelerate the process of plugging orphaned wells, in line with the administration’s regulatory reduction efforts.
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• Concerns of a global crude oil glut undercut prices
• Summary: Concerns of a global crude glut are undercutting oil prices, highlighted by Iraq’s plan to resume exports from its Kurdish region, which could add 230,000 barrels per day to supply. This bearish sentiment is amplified by OPEC+’s larger-than-expected 548,000 bpd production hike for August and an IEA warning of inventories accumulating at a rate of 1 million bpd. These factors were offset by new EU sanctions on 105 Russian ships, strong US economic data, and the US oil rig count falling to a 3.75-year low of 422.
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• Natural gas dominance unchallenged in global energy landscape
• Summary: According to the 2025 Statistical Review of World Energy, global natural gas production hit a record 398 Bcf/d in 2024, with the U.S. leading all nations, producing 25% of the total. Global consumption also reached a record 398 Bcf/d, as 74% of demand growth in the last decade came from non-OECD nations, with China’s consumption doubling to 42 Bcf/d. The liquefied natural gas (LNG) market has been a key driver, tripling since 2010, with the U.S. now leading the world in LNG exports with over 11 Bcf/d in 2024.
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1. How fossil fuels could boost geothermal energy
2. Summary: North Dakota has greenlit a $250,000 feasibility study to explore pairing geothermal with active oil and gas sites and using captured carbon dioxide (CO2) for geothermal power production. Driven by bipartisan support and federal tax incentives like the 45Q credit, this research aims to expand on geothermal’s current 0.4% share of the nation’s total power generation. The new study will assess using CO2 as a heat transfer fluid and co-locating with oil wells to produce both power and additional oil that would otherwise be uneconomical.
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1. ISG launches oil and gas study to address industry challenges
2. Summary: Tech research firm ISG has launched a study evaluating nearly 130 service and solution providers to help oil and gas companies navigate volatility and sustainability challenges. The research will analyze providers across four key quadrants: AI and cloud, enterprise asset management (EAM) services, new energy transition solutions, and digital consulting. The resulting ISG Provider Lens® report, set for release in January 2026, will provide insights with a specific focus on the Americas to help guide enterprise sourcing partners.
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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.

July 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.

• Oil, gas activity contracted in Q2 on higher US steel tariffs, Dallas Fed survey shows
• Summary: A Dallas Fed survey showed oil and gas activity in Texas, Louisiana, and New Mexico contracted slightly in Q2 2025, largely due to President Trump doubling steel import tariffs to 50%. As a result, nearly half of executives expect to drill fewer wells in 2025, with 27% of firms citing the 50% tariff hike as a cause for drilling slightly fewer wells than planned. Looking ahead, over half expect less customer demand, while companies forecast a year-end 2025 WTI oil price of $68 a barrel and a Henry Hub gas price of $3.66 per MMBtu.
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1. North America adds more rigs week on week
2. Summary: According to a July 11 Baker Hughes report, North America’s total rig count rose by nine to 699 for the week, a gain driven entirely by a surge in Canadian drilling activity. Canada added 11 rigs (10 for oil, 1 for gas) to reach a total of 162, which more than offset a two-rig drop in the U.S., where the count fell to 537, with oil rigs down one to 424. Despite the weekly gain, the total North American count is down 74 rigs year-over-year, and J.P. Morgan analysts noted that U.S. supply growth has started to slow as a result.
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1. Mixed signals for crude prices
2. Summary: Conflicting signals caused oil prices to gyrate, with WTI consolidating between $64-$68.94 and Brent between $66.35-$70.70 for the past two weeks. Bearish factors included a 7.1 million barrel U.S. inventory gain, OPEC+’s larger-than-expected 548,000 b/d August output hike, and an IEA forecast that supply will outpace demand. These were offset by new geopolitical risks from Houthi attacks in the Red Sea and OPEC’s own increased global demand outlook, creating significant market volatility.
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1. US natural gas storage projected to hit three-year low in October
2. Summary: Analysts estimate U.S. natural gas storage will end the summer injection season on Oct 31, 2025, at a three-year low of 3.797 trillion cubic feet (tcf), compared to 2024’s eight-year high. This projected level of 3.797 tcf is down from 3.938 tcf at the end of the 2024 summer season but remains just slightly above the five-year average of 3.782 tcf. Looking ahead, these stockpiles are then forecast to continue falling to a four-year low of 1.509 tcf by the end of the winter withdrawal season on March 31, 2026.
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1. OPEC forecasts strong third-quarter demand and a tight market
2. Summary: OPEC’s Secretary General, Haitham Al Ghais, stated that OPEC expects “very strong” oil demand in Q3 2025, which will lead to a tight supply-demand balance for the rest of the year. This forecast, which anticipates 1.3 million barrels per day (bpd) of year-on-year demand growth for 2025, is why eight OPEC+ nations are bringing barrels back to the market. OPEC’s 2025 World Oil Outlook projects global demand averaging 105 million bpd this year, rising to 106.3 million bpd in 2026 and reaching a high of 111.6 million bpd by 2029.
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• BP forecasts stronger oil trading and refining for the second quarter
• Summary: For Q2 2025, BP projects stronger oil trading and higher refining margins, a forecast that contrasts with rival Shell, which expects “significantly lower” trading results. BP’s refining marker margin is projected to average $21.1 a barrel, up from $15.2 in Q1, and realized refining margins are expected to be between $300 million and $500 million. In comparison, Shell’s indicative margin is just $8.9 per barrel, though both giants expect higher upstream production quarter-on-quarter.
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• BP ratchets-up oil and gas output after renewables retreat
• Summary: BP expects slightly higher Q2 2025 oil and gas output as it refocuses on fossil fuels but warns that lower commodity prices will pressure profits for the quarter. The average Brent crude price fell to $67.88 a barrel from $75.73 in Q1, a drop expected to impact oil results by up to $800 million and its gas segment by up to $300 million. This negative impact is partly offset by its customers business, which expects a $300-$500 million benefit from higher refining margins, while net debt is seen falling from $27 billion.
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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.

July 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.

• OPEC+ members agree to larger-than-expected oil production hike in August
• Summary: An eight-nation OPEC+ group, including Russia and Saudi Arabia, agreed to a larger-than-expected 548,000 barrels per day (bpd) production hike for August. This decision, attributed to a steady global economic outlook and healthy market fundamentals, accelerates the unwinding of 2.2 million bpd of voluntary supply cuts. The move comes after oil prices, which rose during the recent Israel-Iran conflict, settled on Friday with Brent at $68.30 and WTI at $66.50 per barrel.
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1. Gas prices dropped to near 4-level lows for Fourth of July
2. Summary: U.S. gas prices are near a four-year summer low for the July 4th holiday, with the national average at $3.16 per gallon, a nearly 10% decline from a year ago, and twenty states boasting prices below $3. This relief for over 61 million travelers is driven by cheap crude oil, as the U.S. benchmark price has plummeted over 17% since January and OPEC+ increased its output, erasing a recent war-related spike. Analysts predict prices could fall below $3 by September, while GasBuddy refuted President Trump’s recent claim that gas was available for under $2.
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1. 4 oil giants invest billions to lead the low-carbon energy shift
2. Summary: Oil giants ExxonMobil, Shell, TotalEnergies, and Chevron are investing billions in low-carbon solutions including carbon capture, hydrogen, and renewables to lead the evolving energy market. Key commitments include ExxonMobil’s pledge of up to $30 billion for lower-emission projects by 2030 and Shell’s $10-$15 billion investment in low-carbon solutions for 2023-2025. This strategic shift is driven by regulatory pressure and a market for emission-reduction technologies that is projected to be worth up to an estimated $6 trillion by 2050.
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• US oil and gas rig count falls for 10th straight week, Baker Hughes says
• Summary: For the 10th straight week, the U.S. oil and gas rig count fell, dropping by eight to 539 as of July 3, its lowest level since October 2021 and down 8% from the previous year. The report shows oil rigs fell seven to 425 and gas rigs one to 108, continuing a trend from 2023-24 where firms cut drilling due to lower energy prices and shareholder focus. Despite this drilling slowdown, the EIA projects crude output will rise to 13.4 million bpd in 2025, and an 84% gas price hike will boost gas output to 105.9 bcfd.
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• Senate GOP passes sweeping ‘One Big Beautiful Bill Act’
• Summary: The U.S. Senate narrowly passed the “One Big Beautiful Bill Act” after a 50-50 tie vote was broken by the Vice President, advancing a sweeping overhaul of federal policy to the House. TThe legislation reinstates lower royalty rates, mandates expanded leasing on public lands and offshore areas—including the Gulf of Mexico and Alaska—and eliminates methane-related royalties and incentive program funding. The bill repeals key clean energy programs from the Inflation Reduction Act, boosts fossil fuel production, and makes the major Trump-era individual tax cuts permanent.
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1. Texas Supreme Court rules produced water belongs to mineral lessee
2. Summary: On June 27, the Texas Supreme Court affirmed a lower court ruling in Cactus Water Services v. COG Operating, establishing that produced water is the property of the mineral estate owner. This decision resolves a dispute over nearly 52 million barrels of produced water from 72 wells on 37,000 acres in Reeves County, confirming it as a byproduct of mineral extraction. The court clarified that unless expressly reserved, standard oil and gas leases convey ownership of produced water, which is legally distinct from groundwater.
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1. Chevron competing in Libya’s first oil and gas tender
2. Summary: On July 2, it was reported that Chevron is one of 37 global firms competing in Libya’s first oil and gas exploration tender since the 2011 conflict, a key milestone for its oil sector. Libya, which holds Africa’s largest proven oil reserves, aims to increase daily production to 2 million barrels by 2030, surpassing its 2006 peak of 1.75 million barrels. The tender offers rights for 22 offshore and onshore blocks, with contracts for successful bidders like Chevron, TotalEnergies, and Exxon expected by the end of 2025.
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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.

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.