Newsletter No. 72
Hello,
It’s June 27, 2024. Check out the latest oil and gas news, including some updates from King. Just a quick note: In observance of the July 4th holiday, there won’t be an edition of The Upside next week. I’ll be back after the holiday weekend to keep you informed on all the latest happenings in the oil and gas world.
This Week’s Headlines
- The Jay Young Show: An Ex-NFL Player’s Path to Oil and Gas Success
- The Rice Report: Federal Reserve Hack, Assange is Free, and Global Issues
- Oil Prices Edge Up as Middle East Tensions Rise
- Gazprom and Iran Sign Gas Supply Agreement
- Kenya Halts Finance Bill Amid Protests
- Saudi Aramco Expands Presence with Stake in Port Arthur LNG
- Quantum Capital Group Acquires Caerus Oil and Gas for $1.8 Billion
- SM Energy to Buy XCL’s Uinta Assets for $2 Billion, Shares Fall
happening at king
The Jay Young Show: An Ex-NFL Player’s Path to Oil and Gas Success
In the latest episode of The Jay Young Show, guest co-host Jordan Soto and I interview John McLaughlin, a former NFL player turned oil and gas professional. John shares his journey from playing for Notre Dame and the Tampa Bay Buccaneers to his current role at Momentum Drilling Fluids, highlighting the importance of integrity and technical support in the industry. He also discusses his side job as a DJ and his passion for the oil and gas business. To watch the entire interview, see below. 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: Federal Reserve Hack, Assange is Free, and Global Issues
In the latest episode of The Rice Report, Eric Rice discusses the Federal Reserve hack, Julian Assange’s release, and NPR’s fundraising. You can watch this and more episodes of The Rice Report on YouTube and Rumble.
global oil & gas news
Oil Prices Edge Up as Middle East Tensions Rise
Oil prices rose slightly on Wednesday as WTI prices hovered around $80 a barrel. Despite an unexpected increase in U.S. gasoline supplies, concerns about escalating tensions between Israel and Lebanon’s Hezbollah potentially disrupting Middle East oil supplies drove prices up. Turkey’s support for Lebanon and Houthi attacks on shipping added to supply worries. United Bank of Switzerland (UBS) expects oil prices to rise in the coming weeks. You can see the up-to-the-minute numbers here.
Gazprom and Iran Sign Gas Supply Agreement
Russian energy giant Gazprom has signed an agreement with the National Iranian Gas Company (NIGC) to supply Russian gas to Iran. The agreement was made during a visit by Gazprom’s head, Alexei Miller, and attended by Iran’s interim president, Mohammad Mokhber. This deal follows Gazprom’s search for new markets after a significant drop in its gas sales to Europe due to the Ukraine conflict.
Kenya Halts Finance Bill Amid Protests
President William Ruto of Kenya has announced the withdrawal of Finance Bill 2024, which included controversial tax increases, after widespread protests led to 22 deaths and significant unrest. The bill, aimed at reducing Kenya’s substantial debt, proposed raising fuel taxes, contributing to already soaring fuel prices. The decision follows violent demonstrations that saw parliament attacked and parts set ablaze by protesters opposing the bill’s measures.
MOVES TO WATCH
Saudi Aramco Expands Presence with Stake in Port Arthur LNG
Saudi Aramco has entered into an agreement to procure LNG from Sempra’s Port Arthur LNG project and is considering acquiring a 25% stake in its Phase 2 expansion. This agreement underscores Aramco’s strategic expansion into the global LNG market, complementing its efforts to bolster natural gas production and trading on a global scale. The Port Arthur LNG project, located in Southeast Texas, includes ongoing construction of initial facilities and plans for future expansions to meet growing global demand for liquefied natural gas.
Quantum Capital Group Acquires Caerus Oil and Gas for $1.8 Billion
U.S.-based private equity firm Quantum Capital Group has purchased Caerus Oil and Gas for $1.8 billion from investors including Oaktree, Anschutz, and Old Ironsides Energy. Caerus operates over 7,400 wells in Colorado’s Piceance Basin and Utah’s Uinta Basin, with extensive infrastructure. This transaction reflects growing private equity interest in the oil and gas industry post-pandemic.
SM Energy to Buy XCL’s Uinta Assets for $2 Billion, Shares Fall
SM Energy is buying some oil and gas assets from XCL Resources for $2 billion. This deal will expand SM Energy’s operations in Utah. The company’s stock dropped by 10% after the announcement. SM Energy will use a mix of borrowed money and cash to pay for the deal. The purchase will increase the company’s oil production. Another company, Northern Oil and Gas, is also buying 20% of XCL’s assets for $510 million, making the total deal worth $2.55 billion.
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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
