Newsletter No. 67
Hello,
It is Thursday, May 23, 2024. We have another jam-packed edition of oil and gas news, including insights into what is happening right here at King. So, join me as I go through some of the highlights.
This Week’s Headlines
- A Brand New Rice Report
- King Launches Newly Designed Website
- EIA Warns Severe Hurricane Season Could Disrupt U.S. Oil & Gas
- Chesapeake Energy Cuts Jobs After Selling Oil Assets
- Guyana Emerges as Key Player in Global Crude Oil Supply
- Oil Prices Drop as Inflation Concerns Are on the Rise
- Kinder Morgan Targets Texas Oil Field for Carbon Capture Benefits
Happening at King
A Brand New Rice Report
In this recent installment of The Rice Report, King’s Chief Growth Officer Eric Rice provides insight on government spending, debt, banking, geopolitics and more. Watch it here.
King Launches Newly Designed Website
King Operating Corporation has recently revamped its website, introducing a cleaner and more user-friendly design. The updated site aims to enhance user experience with intuitive navigation and a modern aesthetic. Visitors can easily access comprehensive information about the company’s history and strategic approach.
This redesign reflects King’s commitment to user engagement, providing both current and potential partners with the resources they need to understand the company’s operations and investment opportunities. Visit kingoperating.com to explore the new features and learn more about King.
GLOBAL OIL & GAS NEWS
EIA Warns Severe Hurricane Season Could Disrupt U.S. Oil & Gas
The Energy Information Administration (EIA) warns that this year’s hurricane season, with up to 25 named storms expected, could heavily disrupt the U.S. oil and gas industry. Starting June 1st, the season could impact offshore oil production, refineries, and LNG exports in the Gulf of Mexico. The EIA highlights a heightened risk of weather-related outages and significant disruptions to operations.
Chesapeake Energy Cuts Jobs After Selling Oil Assets
Chesapeake Energy, a top U.S. natural gas producer, has started laying off employees following the sale of its oil assets last year. These layoffs are separate from its upcoming $7.4 billion merger with Southwestern Energy. The company didn’t specify how many jobs were cut. Chesapeake, now focused solely on natural gas, sold its Eagle Ford assets in 2023. The merger is expected to be completed later this year.
Guyana Emerges as Key Player in Global Crude Oil Supply
Guyana has become a significant player in global crude oil supply, with production reaching 645,000 barrels per day from the Stabroek block since 2019. This growth has driven substantial economic development, with a GDP increase of 62.3% in 2022. With over 11 billion barrels of recoverable oil and gas, and plans to expand production to 1.3 million barrels per day by 2027, Guyana is poised to become a major oil producer in Central and South America. However, challenges such as corporate partnerships and territorial disputes with Venezuela may affect future operations.
Oil Prices Drop as Inflation Concerns Are on the Rise
With U.S. crude oil (WTI) falling below $80 per barrel and Brent crude slipping to around $82 per barrel, oil prices are on a downward trend due to inflation uncertainties. The Federal Reserve’s indication of delaying rate cuts and mixed economic data, which include conflicting signals from the producer price index (PPI) and consumer price index (CPI), are contributing to the volatility. You can see the up-to-the-minute numbers here.
MOVE TO WATCH
Kinder Morgan Targets Texas Oil Field for Carbon Capture Benefits
Kinder Morgan has acquired 12,000 acres of Texas oil and gas assets to benefit from U.S. carbon capture incentives. The $60 per metric ton tax credit from the Inflation Reduction Act makes older fields more attractive. The deal with Avad Energy Partners includes 265 wells and will use Kinder Morgan’s CO2 injection technology to boost production. The company already produces 50,000 barrels per day this way and expects natural gas demand to grow significantly in the next six years.
If you’d like to talk to someone about King and are an accredited investor, you can fill out your information here or schedule a Zoom conversation with one of our SVPs here and someone will reach out.
Also, please let us know how we are doing at King Operating Corporation. Leave a review here.
Recommended Reads
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Shell Plans Major Work at Its Largest German Oil-Processing Complex
Will Iran President’s Death Affect Israel Conflict, Oil and Gas?
Thank you for your continued support, and if you have any questions for myself or any member of the King team, please don’t hesitate to reach out.
All the best,
Jay
