Valor | Energy Connection – July 21, 2025

July 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.

• Chevron wins Exxon case but loses time, oil and billions
• Summary: On July 18, Chevron won its arbitration case against Exxon Mobil, allowing its $55 billion acquisition of Hess and its 30% stake in Guyana’s 11-billion-barrel Stabroek block to finally close. The year-long delay caused by Exxon’s challenge cost Chevron an estimated $3 billion in lost 2024 profit, $50-$100 million in legal fees, and contributed to a 9% drop in its share price. With the deal now closed, Chevron expects to realize $1 billion in cost synergies by the end of 2025, securing a key asset for its future growth.
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1. US drillers add oil/gas rigs for first time in 12 weeks, Baker Hughes says
2. Summary: For the first time in 12 weeks, the U.S. oil and gas rig count rose, climbing seven to 544 as of July 18, the largest weekly gain since December but still down 7% year-over-year. The increase was driven entirely by natural gas rigs, which rose by nine to 117 (their biggest jump since July 2023), while oil rigs actually fell by two to a low of 422. Despite a planned 3% capex cut for 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. Interior Department eases rules to speed up plugging of orphaned wells
2. Summary: The Interior Department has revised guidelines for its $780 million State Matching Grant and $1.93 billion State Formula Grant programs to accelerate plugging orphaned oil and gas wells. The updated guidance cuts federal red tape by removing methane measurement requirements, eliminating the department’s post-award environmental review, and giving states more discretion. The revisions are intended to allow states to accelerate the process of plugging orphaned wells, in line with the administration’s regulatory reduction efforts.
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• Concerns of a global crude oil glut undercut prices
• Summary: Concerns of a global crude glut are undercutting oil prices, highlighted by Iraq’s plan to resume exports from its Kurdish region, which could add 230,000 barrels per day to supply. This bearish sentiment is amplified by OPEC+’s larger-than-expected 548,000 bpd production hike for August and an IEA warning of inventories accumulating at a rate of 1 million bpd. These factors were offset by new EU sanctions on 105 Russian ships, strong US economic data, and the US oil rig count falling to a 3.75-year low of 422.
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• Natural gas dominance unchallenged in global energy landscape
• Summary: According to the 2025 Statistical Review of World Energy, global natural gas production hit a record 398 Bcf/d in 2024, with the U.S. leading all nations, producing 25% of the total. Global consumption also reached a record 398 Bcf/d, as 74% of demand growth in the last decade came from non-OECD nations, with China’s consumption doubling to 42 Bcf/d. The liquefied natural gas (LNG) market has been a key driver, tripling since 2010, with the U.S. now leading the world in LNG exports with over 11 Bcf/d in 2024.
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1. How fossil fuels could boost geothermal energy
2. Summary: North Dakota has greenlit a $250,000 feasibility study to explore pairing geothermal with active oil and gas sites and using captured carbon dioxide (CO2) for geothermal power production. Driven by bipartisan support and federal tax incentives like the 45Q credit, this research aims to expand on geothermal’s current 0.4% share of the nation’s total power generation. The new study will assess using CO2 as a heat transfer fluid and co-locating with oil wells to produce both power and additional oil that would otherwise be uneconomical.
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1. ISG launches oil and gas study to address industry challenges
2. Summary: Tech research firm ISG has launched a study evaluating nearly 130 service and solution providers to help oil and gas companies navigate volatility and sustainability challenges. The research will analyze providers across four key quadrants: AI and cloud, enterprise asset management (EAM) services, new energy transition solutions, and digital consulting. The resulting ISG Provider Lens® report, set for release in January 2026, will provide insights with a specific focus on the Americas to help guide enterprise sourcing partners.
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