Newsletter No. 86
Good afternoon,
It is Thursday, October 10, 2024 and here is another edition of The Upside where I bring you the latest updates on the oil and gas industry, including what’s happening here at King.
This Week’s Headlines
- Natural Gas Power Generation Reaches Record High in the U.S.
- Chevron and Kinder Morgan Close Tampa Terminals as Hurricane Milton Makes Landfall
- Top 10 Oil and Gas Stocks Thriving in 2024
- Rio Tinto to Buy Arcadium Lithium for $6.7 Billion
- Empowering Energy Entrepreneurship: Leslie Armentrout’s Journey on The Jay Young Show
- The Rice Report: Navigating Global Dynamics
Global Oil & Gas News
Natural Gas Power Generation Reaches Record High in the U.S.
This summer, the U.S. set a new record for natural gas power generation, thanks to low prices and hot weather. On August 2, natural gas plants produced over 7 million megawatt hours of electricity, beating last year’s record by 6.8%. The days with the highest natural gas output occurred this summer, with a 3% overall increase in electricity generation compared to last year. As more renewable energy sources come online, natural gas is becoming essential for meeting growing energy demands, especially for cooling and powering data centers.
Chevron and Kinder Morgan Close Tampa Terminals as Hurricane Milton Makes Landfall
As Hurricane Milton makes landfall in Florida, Kinder Morgan has shut down its terminals in the Tampa area due to the severe threat posed by the storm, including catastrophic storm surges. Chevron has also closed its Tampa bulk terminal, and other energy companies are suspending operations in preparation for the hurricane’s impact.
Hurricane Milton, which made landfall near Siesta Key as a damaging Category 3 storm, has since weakened to a Category 1 but continues to batter Florida’s eastern coastline. As of Thursday morning, more than 3.3 million people across Florida are without power, with significant flooding and destruction reported in numerous counties. Hurricane Milton comes on the heels of Hurricane Helene, which has continued to devastate people in several states including Florida, Georgia, North Carolina and Tennessee. We are praying for all those affected by these storms and hope for their safety and swift recovery.
Top 10 Oil and Gas Stocks Thriving in 2024
Rising oil prices, driven by tensions between Israel and Iran, have boosted oil and gas stocks in 2024. Brent crude oil hit $80.71 per barrel, helping the Energy Select Sector SPDR Fund increase by nearly 10% in the last month. Leading the pack is Sintana Energy, with an impressive 274.8% gain this year, followed by CES Energy Solutions at 125.6% and Targa Resources at 82.4%. Other strong performers include The Williams Companies, Topaz Energy, and Exxon Mobil, showing high demand for energy despite broader market trends. You can see the up-to-the-minute commodities numbers here.
Move to Watch
Rio Tinto to Buy Arcadium Lithium for $6.7 Billion
Rio Tinto is buying Arcadium Lithium for $6.7 billion, offering $5.85 per share, which is 90% more than its recent price. This purchase will strengthen Rio Tinto’s position in the lithium market, which is expected to grow significantly in the coming years. The deal is expected to finalize by mid-2025, pending approvals from shareholders and regulators.
HAPPENING AT KING
Empowering Energy Entrepreneurship: Leslie Armentrout’s Journey on The Jay Young Show
The Jay Young Show co-host Jordan Soto and I interview Leslie Armentrout, President and CEO of Silver Cross Energy Partners, as she shares her inspiring journey into energy entrepreneurship, discussing her extensive experience in the industry, the challenges of founding her company, and her vision for the future of sustainable energy. You can catch this interview, along with other podcasts on YouTube, Rumble, or directly on our website.
macro-economic look
The Rice Report: Navigating Global Dynamics
In a recent special episode of The Rice Report, Eric Rice provided a comprehensive look at global news and events, examining developments in China and Japan, the challenges of fiat currency and inflation, and significant international trends shaping the world stage. 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
Baker Hughes secures major order for ICL units with Dubai Petroleum Establishment
API data reveals huge rise in US crude oil inventories
BP Abandoning Oil, Gas Output Cut Target, Report Says
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