Newsletter No. 78
Good morning,
It is Thursday, August 15, 2024, and I am bringing you up to speed on all the recent news in the oil and gas sector, including some things happening here at King. Here we go with the latest developments.
This Week’s Headlines
- Chevron Pioneers Ultra-High Pressure Oil Production in Gulf of Mexico
- Elon Musk Urges a Balanced View on Oil and Gas Industry
- Oil Prices Jump on Inventory Drop and Possible Rate Cut
- U.S. Oil Deals Set to Outpace Last Year
- Intern Drives Innovation with Production Visualization Tool
- Alzheimer’s Pro-Am Supporting Research
- The Jay Young Show: Inside the World of Oil and Gas Royalties
- The Rice Report: Corporations, Government and Your Wallet
global oil & gas news
Chevron Pioneers Ultra-High Pressure Oil Production in Gulf of Mexico
Chevron has made a significant breakthrough by producing oil from the Anchor field in the Gulf of Mexico under extreme subsea pressures of up to 20,000 psi. This $5.7 billion project unlocks deepwater resources previously out of reach, with the platform expected to produce up to 75,000 barrels of oil and 28 million cubic feet of natural gas daily for the next 30 years. This milestone sets the stage for future high-pressure developments in the industry.
Elon Musk Urges a Balanced View on Oil and Gas Industry
In a recent interview with Donald Trump on X, Elon Musk emphasized the importance of not vilifying the oil and gas industry, acknowledging its crucial role in supporting the current economy. Musk suggested that a global transition to a sustainable economy could take 50 to 100 years, while Trump proposed a longer timeline of 100 to 500 years. Musk, who has been a vocal advocate for a pragmatic approach to fossil fuels, reinforced the need for a sensible transition without causing short-term hardship. This discussion sparked an idea for a new blog, so keep an eye out for it soon at kingoperating.com/blog.
Oil Prices Jump on Inventory Drop and Possible Rate Cut
Oil prices shot up after a report showed U.S. oil inventories dropped significantly, and lower-than-expected inflation raised hopes for a potential interest rate cut by the Federal Reserve. This comes after prices had fallen due to concerns about slowing demand next year. With these new developments, oil prices are climbing back up. You can see the up-to-the-minute numbers here.
MOVE TO WATCH
U.S. Oil Deals Set to Outpace Last Year
The U.S. oil industry is seeing a surge in mergers and acquisitions, with $30.2 billion in deals announced in the second quarter of 2024 alone. Major transactions include ConocoPhillips buying Marathon Oil for $22.5 billion and Devon Energy’s $5 billion deal for Grayson Mills. As companies consolidate and expand beyond the Permian Basin, this trend is likely to continue, impacting oil production and global prices.
HAPPENING AT KING
Intern Streamlined Operations with Production Visualization Tool
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Joshua Pena (pictured above), our summer intern and a current student at Texas A&M, made a significant impact during his time at King. Instead of spending his internship behind a desk, Joshua gained valuable hands-on experience by working directly in the field. His primary project was assisting the operations team by developing production visualization tools. His contributions not only streamlined our operations but also showcased his ability to translate academic knowledge into practical, real-world solutions. I want to thank Joshua and give him kudos for doing such an amazing job for us this summer.
Alzheimer’s Pro-Am Supporting Research
It is time again for the Alzheimer’s Pro-Am Golf Tournament, coming up September 8-9, 2024. It is an honor to be a part of this amazing event. It is a great way to support the Alzheimer’s Association here in Dallas. Recently, researchers at UCLA discovered a new molecule that helped restore memory and brain function in mice with Alzheimer’s, which could lead to new treatments for Alzheimer’s. Events like this tournament are important for funding research and making progress in the fight against Alzheimer’s. You can find out more about this tournament here.
The Jay Young Show: Inside the World of Oil and Gas Royalties
In this episode of The Jay Young Show, co-host Jordan Soto and I chat with Beth Good, CEO of Resource Royalty, about her shift from accounting to the energy sector. Beth explains how the royalty business works, contrasts it with traditional oil and gas investments, and covers mineral rights, 1031 exchanges, and investment risks. She also shares her insights on commodity prices, drilling trends, and the impact of renewables on fossil fuels. This episode is a must-listen for anyone looking to diversify their investments or understand the energy industry better.
Watch the podcast here.
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: Corporations, Government and Your Wallet
In a recent episode of The Rice Report, Eric Rice discusses the complex world of economics and politics, exploring the subtle yet profound impact of bitcoin on the middle class. You can watch this and more episodes of The Rice Report on YouTube and Rumble.
Also, please let us know how we are doing at King Operating Corporation. Leave a review here.
Recommended Reads
China finishes work on mega oil and gas platform destined for the Gulf
Russia Extends Gasoline Export Ban Until the End of 2024
Europe’s gas surplus has mostly been eliminated
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
