Valor | Energy Connection – Aug. 11, 2025

August 11, 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 steadies on reports of US-Russia deal, ends week about 5% lower
• Summary: On August 8, oil prices ended the week with their steepest losses since late June, as Brent crude fell 4.4% to settle at $66.59 a barrel and WTI crude dropped 5.1% to $63.88. The weekly drop was driven by concerns over the economic impact of new U.S. tariffs which took effect, while Friday’s prices held steady on reports of a potential U.S.-Russia summit. Adding to supply pressure, OPEC+ agreed to a 547,000 barrels per day production hike for September, and the U.S. oil rig count increased by one to a total of 411.
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1. U.S. rig count falls for third straight week, Baker Hughes says
2. Summary: For the third straight week, the U.S. oil and gas rig count fell, dropping by one to 539 as of August 8, with the key Permian Basin rig count declining by three to a low of 256. The overall drop was due to gas and miscellaneous rigs each falling by one, which offset a one-rig increase in the oil rig count to 411, while the Texas rig count fell by two to 243. Despite a planned 4% capex cut in 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. Oil prices slump as China, U.S. trade tensions continue
2. Summary: Oil prices fell Friday due to escalating U.S.-China trade tensions, with crude futures down 0.38% to $63.30 and Brent crude futures down 0.37% to $68.08 a barrel. The drop was fueled by a U.S. threat of an additional $100 billion in tariffs on China, but losses were limited by a surprise 4.617 million barrel draw in U.S. crude inventories. This occurs as OPEC and its allies continue to curb their production by 1.8 million barrels per day to end a global supply glut, with a pact set to expire at the end of 2018.
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• U.S. majors pump profits while BP and Shell stall
• Summary: In Q2, U.S. oil majors Exxon and Chevron reported record production, while European rivals BP and Shell saw their output decline amid a strategic refocus on their core business. Exxon’s output hit 4.6 million boe/d and Chevron’s reached 3.4 million bpd, while BP’s production fell 3.3% to 2.3 million bpd and Shell’s dropped 4.2% to a low of 2.65 million bpd. All four reported lower profits due to weaker prices, but the European majors’ lagging output is attributed to recent asset sales and lower investment in oil and gas.
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• Targa beats profit estimates, expands buyback by $1 billion
• Summary: Targa Resources beat Q2 profit estimates due to record natural gas and NGL volumes, causing its shares to rise 2.6% in premarket trading. The company’s adjusted core profit rose 18% to $1.16 billion as Permian gas volumes grew 11% to a record 6.28 billion cubic feet per day and NGL transport volumes surged 23% to a record 961,200 bpd. This strong performance prompted Targa to expand its buyback plan by announcing a new $1.0 billion share repurchase program, in addition to its previous $1 billion plan.
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1. Nymex natural gas fell 3.02% this week, settling at $2.99
2. Summary: Front Month Nymex Natural Gas for September delivery fell 3.02% for the week ending August 8, losing 9.30 cents to settle at $2.9900 per million British thermal units. This marks the third consecutive weekly decline, with the price dropping 57.50 cents, or 16.13%, over the last three weeks—the largest three-week percentage loss since late April 2025. Year-to-date, the price is now down 17.70%; while up 57.04% from its 52-week low, it remains off 33.42% from its 52-week high of $4.491 set in March 2025.
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1. LNG industry warns new U.S.-built ship mandate threatens exports
2. Summary: U.S. energy groups are asking the Trump administration to exempt LNG tankers from a new rule requiring an escalating share of exports on U.S.-built vessels, starting at 1% in 2028. Industry groups argue compliance is impossible as only five U.S.-built LNG carriers exist (none in use) out of a global fleet of 792, and building a single new ship can take up to five years. The 1% mandate alone would require up to five new U.S.-built ships, and failure to comply could result in exporters losing their licenses for the $34 billion annual industry.
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