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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