Valor | Energy Connection – Feb. 3, 2025

February 3, 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 ease as US tariffs on Mexico paused for a month
  • Summary: Oil prices edged lower after initially rising by more than $1, as the U.S. and Mexico paused tariffs that had been set to take effect. Brent crude futures were down 0.2%, while U.S. West Texas Intermediate crude fell slightly by 0.01%. The tariffs, which threatened supply disruptions, would have impacted U.S. crude imports, especially from Canada and Mexico, raising concerns over rising gasoline prices and energy costs.
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  1. Vitol expects oil demand to remain robust until 2040
  2. Summary: Vitol expects global oil demand to stay robust until 2040, primarily fueled by rising consumption in emerging markets. While the transition to renewable energy sources is underway, oil will continue to play a vital role, especially in sectors like transportation, petrochemicals, and heavy industries. The company anticipates that oil demand will remain resilient, even amid challenges posed by energy transitions and environmental considerations.
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  1. Judge blocks major North Sea oil and gas projects in victory for activists
  2. Summary: A UK judge temporarily halted a major oil and gas development in the North Sea, ruling that the government’s environmental impact assessment was insufficient. The ruling affects the Sea Lion field, potentially delaying the project led by Harbour Energy, which aims to unlock substantial oil reserves. This decision highlights the ongoing tension between energy expansion and environmental concerns in the UK.
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  • US oil refiners look to Latin America, Iraq after Trump tariffs
  • Summary: Following the imposition of tariffs on Canadian and Mexican crude oil imports by President Donald Trump, U.S. refiners are seeking alternative heavy crude sources from Latin America and the Middle East. Traders indicate that refiners may turn to countries like Brazil, Guyana, and Iraq to replace the now more expensive neighboring supplies. This shift could lead to longer transportation times and increased costs, potentially affecting fuel prices for consumers.
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  • US drilling activity rises, led by Permian Basin surge
  • Summary: The U.S. oil rig count increased by 6 to 582 in late January, driven by growth in the Permian Basin, which saw a gain of 5 rigs, reaching 303. Despite the increase, Texas and New Mexico experienced modest growth, with 277 rigs in Texas and 106 in New Mexico. The Permian Basin’s rise is crucial to the nation’s oil output, with the region’s increased drilling activity signaling a recovery after a downturn in recent years.
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  1. Elk Range Royalties acquires mineral assets in Permian and Eagle Ford
  2. Summary: Elk Range Royalties has expanded its portfolio by acquiring mineral assets in the Permian and Eagle Ford basins, strengthening its position in key U.S. oil regions. The acquisition, valued at $400 million, adds over 5,000 net royalty acres to its holdings, enhancing future revenue potential. This strategic move is expected to provide stable cash flow and increase Elk Range’s exposure to long-term oil and gas production.
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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.

Valor | Energy Connection – Jan. 27, 2025

January 27, 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.

  • President Trump’s Executive Orders to Unleash American Energy
  • Summary: President Trump signed the “Unleashing American Energy” executive order on January 20, 2025, declaring a national energy emergency to accelerate U.S. fossil fuel production. The order seeks to streamline permitting, revoke specific environmental regulations, and remove the electric vehicle mandate. These measures aim to boost energy independence, economic growth, and domestic energy security.
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  1. Will Trump’s executive order revive the Keystone XL pipeline?
  2. Summary: President Trump’s recent executive order reverses the cancellation of the Keystone XL pipeline permit, opening the door for its potential revival. However, the pipeline’s developer, South Bow Corp., has stated that it has no plans to restart the multibillion-dollar project. With permits expired and sections of the pipeline dismantled, any attempt to move forward would require starting the process from scratch.
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  1. U.S. oil and gas rig count hits lowest since 2021
  2. Summary: U.S. energy firms reduced the number of oil and gas rigs by four to 576, marking the third consecutive week of declines, with the rig count at its lowest since December 2021. Oil rigs fell by six to 472, while gas rigs rose by one. Despite ongoing declines in rig activity, U.S. crude output is projected to increase in 2025, and a rise in natural gas prices is expected to boost drilling activity.
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  • Geothermal energy recognized as key resource in new U.S. order
  • Summary: President Trump issued an executive order declaring an energy emergency and designating geothermal energy as a key domestic resource. This move aims to promote reliable, climate-friendly electricity by using technologies similar to oil and gas. The administration hopes this will encourage bipartisan support and boost geothermal energy growth.
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  • Trump urges OPEC to lower oil prices amid Russia tensions
  • Summary: Oil prices dropped following Donald Trump’s call for OPEC to lower prices in an effort to reduce Russia’s oil revenues and accelerate the end of the war in Ukraine. Despite Trump’s threats of sanctions, OPEC has not reacted yet, continuing its plans to increase output in April. Analysts have differing views on the impact of sanctions on Russian oil production, with some expecting a limited effect due to high freight rates and discounted Russian oil.
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  1. Diversified energy to acquire Maverick Natural Resources for $1.3 billion
  2. Summary: Diversified Energy has agreed to acquire Maverick Natural Resources for approximately $1.3 billion, including debt, marking its largest acquisition to date. This deal will enhance Diversified’s presence in the Permian Basin, a leading U.S. oil-producing region, by adding Maverick’s operations in Texas and Oklahoma. The combined company is expected to produce substantial amounts of oil equivalent daily, with Diversified’s CEO, Rusty Hutson Jr., continuing to lead the merged entity.
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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.

DUCs Explained: A Guide for Mineral Management

Quick Answer: DUC stands for “Drilled but Uncompleted” well – a well that has been drilled but not yet hydraulically fractured (fracked) to begin production. Operators create DUC inventory to complete wells when commodity prices are favorable. For mineral owners, DUCs represent future royalty income potential.

In the realm of oil and gas exploration and production, industry insiders often refer to “DUCs,” an acronym that stands for Drilled but Uncompleted wells. These are wells where the initial drilling phase has been finished, but they have not yet been made ready for production. This concept is crucial for understanding the strategic operations of oil and gas companies.

Why do DUCs Exist?

Primarily, DUCs reflect a company’s financial strategy and market response tactics. Common reasons for maintaining a DUC inventory include:

• Market Conditions: Operators may delay completion due to fluctuating oil prices, waiting for more favorable rates to maximize returns.
• Logistical Challenges: Shortages of equipment (like frac crews) or skilled labor can lead to delays.
• Infrastructure: Waiting for pipeline connections or processing facilities to be completed.

The Strategic Importance of DUCs

DUCs serve as a sort of “inventory.” When oil prices rise, companies can quickly complete these wells to increase production and capitalize on higher market rates. This allows operators to efficiently manage cash flow and maintain a flexible response to market volatility.

From an investment perspective, the number of DUCs is a significant indicator of future production. A high number of DUCs suggests an operator expects to increase output soon, anticipating better pricing or improved extraction technology.

Why DUCs Matter to Mineral Owners

For those who own mineral rights, DUCs represent potential future income that isn’t yet being realized.

• Financial Planning: DUCs can lead to unpredictable cash flows for owners who rely on steady production for their income.
• Timing of Income: The presence of DUCs on your land impacts when royalties will begin. When operators decide to complete these wells, production commences and royalty payments follow.
• Revenue Delays: Conversely, if wells remain uncompleted for long periods, it can delay the revenue you expect from your holdings.

The Role of Mineral Management

This is where oil and gas outsourcing becomes invaluable. Professional management provides the foresight needed to navigate these production complexities.

Valor’s proprietary mineral.tech® software platform enables detailed asset tracking, offering owners real-time insights into their holdings. This helps you:

• Monitor Status: Stay updated on DUCs and potential completion dates
• Plan Financially: Gain a clearer understanding of when royalties might increase
• Optimize Assets: Ensure your interests are being managed with the latest data and analytics

Partnering with a seasoned mineral management company like Valor ensures that you stay informed about the status of your land, helping you maximize your returns and manage your resources effectively.

Contact

Ready to uncover the full potential of your mineral assets? Contact Valor today to learn how we can support and simplify your mineral management needs.

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 – Oct. 21, 2024

October 21, 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 Regain Some Ground After 7% Loss Last Week
  • Summary: Oil prices rebounded on Monday, recovering some of last week’s over 7% drop amid concerns about slowing demand in China and easing Middle East supply risks, with support from Saudi Aramco’s bullish outlook on China’s oil demand and geopolitical tensions.
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  1. Texas Natural-Gas Pipeline Eases Bottlenecks, Paves Way for Higher Shale Output
  2. Summary: The new Matterhorn pipeline has eased Permian gas bottlenecks, raising prices and boosting oil production, but may reach capacity within 12 to 18 months, causing renewed constraints in 2026.
  3. Read more

  1. Supreme Court to Review Challenges to EPA Pollution Rules
  2. Summary: The U.S. Supreme Court will hear appeals from Republican-led states and energy companies contesting whether lawsuits against the EPA’s smog control and biofuel waiver policies should be heard in local or national courts.
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  1. Oil, Gas Companies Set To Spend More in 2025
  2. Summary: Global investments in oil and gas by the 23 largest producers are set to rise over 60% by next year, driven by a slower-than-expected energy transition, with companies focusing on upstream production and consolidation while continuing to invest in low-carbon projects.
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  • Another Major Oil Company Plans to Relocate from California
  • Summary: Phillips 66 is planning to relocate, following Chevron’s move, potentially as as result of California’s increased regulations that have led to higher fuel costs and operational challenges, highlighting the tension between the state’s ambitious climate goals and their economic impact on the energy sector.
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  • JP Morgan Says Peak Oil Demand Is Nowhere In Sight
  • Summary: JP Morgan’s Christyan Malek dismissed predictions of peak oil demand, arguing that emerging market consumption will continue to drive global demand growth beyond 2024, while supply struggles to keep pace, leading to a tightening market and sustained higher oil prices throughout the decade.
  • 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.

Valor | Energy Connection – Sep. 30, 2024

September 30, 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 and Gas Fields Offshore U.S. Gulf of Mexico Come Back Online Following Hurricane Helene
  • Summary: The Bureau of Safety and Environmental Enforcement (BSEE) is overseeing the return of oil and gas production in the Gulf of Mexico, with minimal facility evacuations and a temporary shutdown affecting a small fraction of production following Hurricane Helene.
  • Read more

  1. Oil Prices Set to Fall for Third Month Despite Middle East Conflict
  2. Summary: Oil prices declined for the third consecutive month, influenced more by strong supply and weak demand concerns than fears of regional conflict escalation due to Israeli strikes in Lebanon and Yemen.
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  1. Chesapeake to Rebrand as Expand Energy Upon Close of Southwestern Merger
  2. Summary: The merger between Chesapeake Energy Corporation and Southwestern Energy, creating the largest U.S. natural gas producer named Expand Energy Corporation, is set to close in early October after clearing regulatory hurdles.
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  1. US Drillers Cut Oil and Gas Rigs for Second Week in a Row
  2. Summary: U.S. energy firms reduced the number of operating oil and natural gas rigs for a second consecutive week, indicating a potential slowdown in future output despite a quarterly increase in rig counts.
  3. Read more

  • Colorado Proposes Groundbreaking Ban on Oil Drilling, Sparking National Debate
  • Summary: Colorado lawmakers have introduced legislation to ban new oil drilling permits by 2028 and require existing wells to pause production annually for five months, potentially setting a precedent for other states. This initiative, part of a broader effort to address environmental and public health concerns, faces significant opposition from the oil and gas industry but could inspire similar measures nationwide as discussions about sustainable energy practices and the environmental impact of fossil fuels intensify.
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  • California Gov. Gavin Newsom Signs Laws to Curb Oil and Gas Pollution Near Neighborhoods
  • Summary: California Governor Gavin Newsom signed new laws to curb oil and gas pollution, granting local governments more power to regulate the industry and aiming for carbon neutrality by 2045.
  • 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.

Valor Employee Spotlight | Jennifer Dodgen, CPLTA

Welcome to our Valor Employee Spotlight series! In this edition, we’re thrilled to introduce Jennifer Dodgen, CPLTA, our Senior Manager of Division Orders. Jennifer is a vital member of the Valor family and we can’t wait for you to learn more about her!

Background and Experience

Jennifer Dodgen is a Certified Professional Lease and Title Analyst (CPLTA) with 19 years of experience in land management within the oil and gas industry. She began her career running title during the Barnett Shale boom in 2005. She later went on to work at XTO as a Division Order analyst, with a focus on releasing suspended funds and developing a strong foundation in owner relations.

Jennifer has served in various land management roles for several prominent Texas operators, including smaller family-owned companies, where she played a hands-on role in operations, land, and accounting. Her extensive experience is further enhanced by her academic achievements, including an associate’s degree in Business Administration, as well as the completion of the Education Program in Petroleum Land Management at Texas Christian University in 2008. Jennifer went on to receive her CPLTA designation in 2012. She has also been a member and board-level director of both the Dallas-Fort Worth Association of Lease and Title Analysts (DFW-ALTA) and the DALWORTH Association of Division Order Analysts.

Role at Valor

Given Jennifer’s vast experience, she is an incredible asset to the Valor team, supporting both our mineral and operator clients. Her day-to-day responsibilities typically involve land administration, division orders, owner relations, regulatory reporting for operators, and other land obligations. Jennifer’s expertise ensures that our clients receive top-tier service, and her dedication significantly contributes to the success of our operations. Jennifer has also played a huge role in helping discover large amounts of suspended funds for Valor’s mineral owner clients.

Jennifer’s Favorites

Outside the Office

Outside the office, Jennifer loves spending time with her husband at their cabin in Jacksboro and doing jigsaw puzzles nightly to wind down. With her daughter, being a senior this year, she is cherishing as much time with her as possible.

What Jennifer Loves Most About Valor

Jennifer loves the people at Valor, noting that having great colleagues creates a wonderful atmosphere. Even when the workload increases, the stress doesn’t, thanks to the strong collaboration within the team.

Jennifer is a remarkable example of the talent we have here at Valor. Stay tuned for more employee spotlights to learn about the incredible individuals who make Valor a great place to work!