March 17, 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’s oversupply spiral: can prices stay above $60?
- Summary: The IEA reports that global crude supply is exceeding demand by 600,000 bpd, pushing oil prices toward the $60-$80 per barrel range, with U.S. production expected to rise by 400,000 bpd to 13.6 million bpd in 2025. Overproduction by OPEC+ members, including Kazakhstan exceeding its quota by 299,000 bpd, and planned U.S. refinery shutdowns of 400,000 bpd are contributing to the surplus. While some analysts predict a prolonged price slump, others caution that demand surprises and inaccurate forecasts could trigger a market correction.
- Read more
- U.S. natural gas hits 2-week low on record output
- Summary: U.S. natural gas futures fell to a two-week low at $4.076 per mmBtu due to record production of 105.9 bcfd, negative Waha Hub prices caused by pipeline maintenance, and mild weather forecasts through April. Despite this, gas stockpiles remain 12% below normal after extreme winter demand, while LNG exports hit a new high of 15.7 bcfd in March. Gas prices at the Dutch TTF and Japan Korea Marker stand at $13 and $14 per mmBtu, respectively, as the U.S. remains the world’s top LNG supplier.
- Read more
- Oil prices rise after U.S. vows ‘unrelenting’ attacks on Houthis
- Summary: Oil prices rose on Monday as U.S. strikes on Yemen’s Houthi rebels heightened supply risks, with WTI crude gaining 1% to $67.84 per barrel and Brent crude rising 1% to $71.30 per barrel. The U.S. pledged continued attacks until Houthi aggression ceases, while China’s new economic stimulus plan further supported crude prices. However, gains were limited by expectations of a Russia-Ukraine ceasefire, which could bring more Russian oil back to the market.
- Read more
- Goldman Sachs cuts oil price outlook amid oversupply fears
- Summary: Goldman Sachs cut its Brent crude forecast for December 2025 by $5 to $71 per barrel, citing slower U.S. economic growth and increasing OPEC+ supply. Analysts warned that tariffs from President Trump’s trade policies could further weaken demand, while OPEC+ may reverse its planned 138,000 bpd supply increase if prices decline. The bank joins other major commodity traders and the IEA in predicting an oversupplied market, despite recent calls for more oil and gas investment.
- Read more
- U.S. oil, gas rig count unchanged this week
- Summary: The U.S. oil and gas rig count remained steady at 592 for the week ending March 14, down 37 rigs (6%) from a year ago, with oil rigs increasing by one to 487 and gas rigs decreasing by one to 100. Despite a projected 73% rise in gas prices in 2025, analysts expect crude prices to remain stable, while the EIA forecasts record-breaking U.S. oil and gas production through 2026. Industry executives at CERAWeek highlighted growing LNG and power demand but warned that infrastructure constraints could challenge future expansion.
- Read more
- AI to fuel bumper year for M&A in US power sector
- Summary: Mergers and acquisitions in the U.S. power sector have surged in 2025, with 27 deals worth $36.4 billion in the first two months, led by Constellation Energy’s $16.4 billion acquisition of Calpine. The boom is driven by soaring electricity demand from AI data centers, with power companies’ stocks rising between 82% and 220% since early 2024, enabling larger deals. Despite regulatory uncertainties, supply chain constraints, and potential labor shortages, institutional investors and private equity firms continue to invest heavily in power infrastructure, with $334 billion in undeployed capital at the end of 2024.
- Read more
Contact Valor Today
Contact us today if you need help outsourcing your oil and gas operations.
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.
