Newsletter No. 70
Hello,
It is Thursday, June 13, 2024. Check out our latest oil and gas news, with a little focus on what’s happening at King. Let’s dive into the highlights together.
This Week’s Headlines
- Oil and Gas Industry Adopts Generative AI for Efficiency and Safety
- U.S. Gas Prices Drop Due to Mild Demand Ahead of Summer Travel
- Europe’s Natural Gas Prices Surge Due to Russian Supply Concerns
- Oil Prices Rise 3% on Summer Demand Hopes
- Insights on Energy M&A: Steve Gill & Andrew Dittmar Analyze the Latest Deals
- The Rice Report: How to Navigate America’s Economic Crisis
- Matador Resources Buys Permian Assets for $1.9B
GLOBAL OIL & GAS NEWS
Oil and Gas Industry Adopts Generative AI for Efficiency and Safety
The oil and gas industry seems to be embracing generative AI to improve efficiency and safety. By processing vast amounts of data, this technology can help reduce costs, minimize accidents, and lower emissions. It supports both programmers and field workers, offering quick solutions to operational issues and aiding in maintenance tasks. While generative AI offers many benefits, it also requires a significant amount of energy, which presents a challenge for sustainability.
U.S. Gas Prices Drop Due to Mild Demand Ahead of Summer Travel
U.S. gas prices are falling, with the national average dropping to around $3.44 per gallon, down 9 cents from last week. Experts attribute this decline to mild demand and strong supply. Seasonal factors, such as increased refinery capacity, also play a role. The Biden administration’s release of 1 million barrels from the Northeast reserve aims to further lower prices.
Europe’s Natural Gas Prices Surge Due to Russian Supply Concerns
While U.S. gas prices are falling, Europe’s natural gas prices are rising. Europe saw prices rise by 3% on Wednesday after Uniper ended its gas supply contracts with Russia’s Gazprom. This decision, supported by an arbitration ruling, awarded Uniper over $14 billion for undelivered gas since mid-2022. The move has increased worries about Russian gas supplies to Europe, pushing Dutch TTF Natural Gas Futures to $38 per megawatt-hour.
Oil Prices Rise 3% on Summer Demand Hopes
Oil prices climbed around 3% to a one-week peak, with Brent settling at $81.63 and WTI at $77.74. This increase is fueled by optimism for higher summer fuel demand despite a stronger U.S. dollar and expectations of prolonged higher interest rates by the U.S. Federal Reserve. Goldman Sachs predicts Brent to reach $86 in the third quarter due to anticipated solid summer transport demand. Despite concerns about rising supply from plans to unwind OPEC+ production cuts, analysts expect the market to tighten, with oil inventories showing signs of increase. You can see the up-to-the-minute numbers here.
HAPPENING AT KING
Insights on Energy M&A: Steve Gill & Andrew Dittmar Analyze the Latest Deals
The latest episode of The Jay Young Show features expert insights on energy mergers and acquisitions. Steve Gill, M&A attorney at Vinson & Elkins, shared legal perspectives when guest co-host Jordan Soto and I caught up with him at Super DUG 2024. As an added bonus, we were able to talk with Andrew Dittmar from Enverus to discuss recent industry trends and market outlooks. Whether you’re interested in energy markets or M&A activities, this episode is packed with valuable information. Tune in now to stay informed! You can subscribe to The Jay Young Show on Apple or Spotify, and you can watch many of the episodes on YouTube. You can also watch episodes on our website.
macro-economic look
The Rice Report: How to Navigate America’s Economic Crisis
In this episode of The Rice Report, Eric Rice discusses America’s economic and spiritual struggles. Topics include high national debt, inflation risks, potential market crashes, and real estate issues. He also explores the role of faith during tough times. Eric gives insight and advice on adapting your financial plans in light of global economic changes. You can watch more episodes of The Rice Report on YouTube and Rumble.
MOVE TO WATCH
Matador Resources Buys Permian Assets for $1.9B
Matador Resources is acquiring EnCap Investments’ oil and gas properties in the Permian Basin for $1.9 billion. The deal includes assets in New Mexico and West Texas, plus a 19% stake in Piñon Midstream’s pipeline. This move is part of a trend in the shale industry as companies prepare for potential peak production in the 2030s. The deal is expected to close in the third quarter of 2024.
Check out today’s episode of The Jay Young Show above to learn more about this very active season of deals in the oil and gas industry as we talked with a couple of people in the M&A field, Steve Gill of Vinson & Elkins and Andrew Dittmar of Enverus.
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
Biden Drains Entire Northeast Gasoline Reserve In Bid To Lower Gas Prices
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
