Valor | Energy Connection – July 7, 2025

July 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.

• OPEC+ members agree to larger-than-expected oil production hike in August
• Summary: An eight-nation OPEC+ group, including Russia and Saudi Arabia, agreed to a larger-than-expected 548,000 barrels per day (bpd) production hike for August. This decision, attributed to a steady global economic outlook and healthy market fundamentals, accelerates the unwinding of 2.2 million bpd of voluntary supply cuts. The move comes after oil prices, which rose during the recent Israel-Iran conflict, settled on Friday with Brent at $68.30 and WTI at $66.50 per barrel.
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1. Gas prices dropped to near 4-level lows for Fourth of July
2. Summary: U.S. gas prices are near a four-year summer low for the July 4th holiday, with the national average at $3.16 per gallon, a nearly 10% decline from a year ago, and twenty states boasting prices below $3. This relief for over 61 million travelers is driven by cheap crude oil, as the U.S. benchmark price has plummeted over 17% since January and OPEC+ increased its output, erasing a recent war-related spike. Analysts predict prices could fall below $3 by September, while GasBuddy refuted President Trump’s recent claim that gas was available for under $2.
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1. 4 oil giants invest billions to lead the low-carbon energy shift
2. Summary: Oil giants ExxonMobil, Shell, TotalEnergies, and Chevron are investing billions in low-carbon solutions including carbon capture, hydrogen, and renewables to lead the evolving energy market. Key commitments include ExxonMobil’s pledge of up to $30 billion for lower-emission projects by 2030 and Shell’s $10-$15 billion investment in low-carbon solutions for 2023-2025. This strategic shift is driven by regulatory pressure and a market for emission-reduction technologies that is projected to be worth up to an estimated $6 trillion by 2050.
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• US oil and gas rig count falls for 10th straight week, Baker Hughes says
• Summary: For the 10th straight week, the U.S. oil and gas rig count fell, dropping by eight to 539 as of July 3, its lowest level since October 2021 and down 8% from the previous year. The report shows oil rigs fell seven to 425 and gas rigs one to 108, continuing a trend from 2023-24 where firms cut drilling due to lower energy prices and shareholder focus. Despite this drilling slowdown, the EIA projects crude output will rise to 13.4 million bpd in 2025, and an 84% gas price hike will boost gas output to 105.9 bcfd.
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• Senate GOP passes sweeping ‘One Big Beautiful Bill Act’
• Summary: The U.S. Senate narrowly passed the “One Big Beautiful Bill Act” after a 50-50 tie vote was broken by the Vice President, advancing a sweeping overhaul of federal policy to the House. TThe legislation reinstates lower royalty rates, mandates expanded leasing on public lands and offshore areas—including the Gulf of Mexico and Alaska—and eliminates methane-related royalties and incentive program funding. The bill repeals key clean energy programs from the Inflation Reduction Act, boosts fossil fuel production, and makes the major Trump-era individual tax cuts permanent.
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1. Texas Supreme Court rules produced water belongs to mineral lessee
2. Summary: On June 27, the Texas Supreme Court affirmed a lower court ruling in Cactus Water Services v. COG Operating, establishing that produced water is the property of the mineral estate owner. This decision resolves a dispute over nearly 52 million barrels of produced water from 72 wells on 37,000 acres in Reeves County, confirming it as a byproduct of mineral extraction. The court clarified that unless expressly reserved, standard oil and gas leases convey ownership of produced water, which is legally distinct from groundwater.
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1. Chevron competing in Libya’s first oil and gas tender
2. Summary: On July 2, it was reported that Chevron is one of 37 global firms competing in Libya’s first oil and gas exploration tender since the 2011 conflict, a key milestone for its oil sector. Libya, which holds Africa’s largest proven oil reserves, aims to increase daily production to 2 million barrels by 2030, surpassing its 2006 peak of 1.75 million barrels. The tender offers rights for 22 offshore and onshore blocks, with contracts for successful bidders like Chevron, TotalEnergies, and Exxon expected by the end of 2025.
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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.