April 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.
- Oil prices dip amid U.S.-Iran talks and tariff concerns
- Summary: Oil prices fell 1.5% on April 21, 2025, with Brent at $66.81 and WTI at $63.58, amid progress in U.S.-Iran nuclear talks that could bring Iranian crude back to the market. Investor sentiment weakened due to tariff-related economic concerns, with a Reuters poll indicating a 50% chance of a U.S. recession in the next 12 months. OPEC+ plans to increase output by 411,000 bpd in May, but rising global supplies and potential quota adjustments are influencing market outlook.
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- Natural gas market struggles to find its footing: here’s why
- Summary: U.S. natural gas prices fell nearly 8% last week to $3.249/MMBtu, their lowest since January, despite a smaller-than-expected storage build of 16 Bcf, which was below the five-year average of 50 Bcf. Total gas supply averaged 112.3 Bcf/day, while consumption dropped to 103 Bcf/day due to warmer weather reducing residential and power demand. Record-breaking production and soft near-term demand continue to pressure prices, although strong LNG export demand offers longer-term support.
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- U.S. natural gas production remained flat in 2024
- Summary: In 2024, U.S. marketed natural gas production remained nearly flat at 113 Bcf/d, with Permian output rising 12% to 25.4 Bcf/d, offsetting declines in Haynesville and stagnant Appalachia production. Haynesville’s output fell 11% to 14.6 Bcf/d due to reduced drilling amid low prices, while Appalachia’s growth was limited by pipeline constraints. The Henry Hub spot price averaged $2.21/MMBtu in 2024, the lowest on record and 16% below the 2023 average.
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- New offshore leasing program boosts gulf of america energy sector
- Summary: On April 18, 2025, the U.S. Department of the Interior initiated the 11th National Outer Continental Shelf Oil and Gas Leasing Program, launching a 45-day public comment period to shape future offshore lease sales. The Gulf of America contributes nearly $33 billion annually to the U.S. economy and supports approximately 400,000 jobs. This program aims to bolster American energy security and sustain investment in offshore energy production.
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- Chevron starts oil production from Ballymore in Gulf of America
- Summary: Chevron has commenced oil and gas production from the Ballymore subsea tieback project in the deepwater Gulf of America. The project is expected to produce up to 75,000 barrels of oil per day through three wells tied back to the existing Chevron-operated Blind Faith facility. Chevron aims to produce 300,000 net barrels per day of oil equivalent from the Gulf by 2026.
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- U.S. rig count increases by two as oil prices climb
- Summary: The U.S. oil and gas rig count rose by two to 585 rigs, with 481 targeting oil and 98 exploring for natural gas. The Permian Basin remained at 289 rigs, down from 318 a year ago. Oil prices also saw an increase, with the regional benchmark ending at $61.16 per barrel and the national benchmark at $64.68 per barrel, both up by $3.18.
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