August 13, 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.
- US Drillers Add Oil & Gas Rigs for Third Time in Four Weeks
- Summary: The oil and gas rig count, an early indicator of future output, rose by two to 588 in the week to Aug. 9. Despite the week’s rig increase, Baker Hughes said the total count was still down 66 rigs, or 10% below this time last year.
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- U.S. Oil Industry Pumps Record Volumes with Fewer Workers
- Summary: Upstream and oilfield services jobs are declining, not due to falling production, but likely because of increased efficiency, technological advances, and ongoing industry consolidation.
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- U.S. Crude Oil Posts More Than 4% Weekly Gain
- Summary: U.S. crude oil gained more than 4% this week as recession fears eased and the risk of a wider war in the Middle East that could disrupt production and transportation loomed over the market. Oil advanced as the S&P 500 traded higher Friday, erasing most of its losses from a steep sell-off earlier in the week.
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- Texas Sees More Negative Prices as Natural Gas Markets Flip
- Summary: Natural gas prices in West Texas have turned negative on 57 trading days this year, a record high potentially driven by an oversupply from the Permian Basin. Energy companies have signaled recently that they are curbing gas production.
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- OPEC Cuts Oil Demand Growth Forecast, Highlighting Dilemma Over Oct Hike
- Summary: OPEC has reduced its 2024 global oil demand growth forecast due to weaker expectations for China, highlighting challenges for OPEC+ in increasing production from October, despite ongoing output cuts since 2022.
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- Houston Positioned to Become Crude Oil Export Leader as U.S. Production Grows
- Summary: As U.S. crude oil production peaks, the Port of Houston is poised to become a major export hub, benefiting from increased oil flows from the Permian Basin and the ongoing expansion of the Houston Ship Channel.
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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.
Key Takeaways
- Rig Count Rises: The U.S. oil and gas rig count rose by two to 588 in the week ending Aug. 9, though still 10% below last year.
- Fewer Workers, More Output: Upstream and oilfield services employment is declining despite record U.S. production, driven by efficiency gains, technology, and industry consolidation.
- Crude Posts Weekly Gain: U.S. crude oil gained more than 4% for the week as recession fears eased and Middle East war risks pressured supply concerns.
- Negative Texas Gas Prices: West Texas natural gas prices turned negative on 57 trading days in 2024, a record driven by Permian Basin oversupply.
- OPEC Lowers Forecast: OPEC cut its 2024 global oil demand growth forecast on weaker China expectations, complicating plans to increase production starting in October.
Read more from Valor
- Permian Basin — Stacked-pay Spraberry/Wolfcamp/Bone Spring with PUD upside.
- Oil Gas Prices — Live WTI, Brent, Henry Hub; basis differentials by basin.
- Texas Mineral Rights — Texas-specific royalty audit, RRC compliance, and lease management.
