U.S. Sanctions on Iran Could Drive Oil Prices Up

by Jay Young | Investing, Oil & Gas, Tax Savings, Taxes, The Upside

Usa and iran flags symbolizing international relations

Newsletter No. 105

Good afternoon,

It’s Thursday, February 27, 2025, and in this edition of The Upside we’ll cover the latest updates from the oil and gas industry, along with important news from King. As always, I hope to keep you up to date on the trends shaping our industry. Thanks for reading.

This Week's Headlines

50 Years in Oil & Gas: Doug Sandridge's Industry Insights on The Jay Young Show
Trafigura: U.S. Sanctions on Iran Could Drive Up Oil Prices
BP Shifts Focus, Cuts Renewable Investments and Boosts Oil and Gas Spending
Trump’s EPA Chief Wants to Change Key Climate Rule
Ring Energy Buys $100 Million in Oil Assets from Lime Rock

Ep. 161: 50 Years in Oil & Gas: Doug Sandridge's Industry Insights | The Jay Young Show

HAPPENING AT KING

50 Years in Oil & Gas: Doug Sandridge's Industry Insights
Catch this episode of The Jay Young Show from NAPE Expo, where my co-host Jordan Soto and I sat down with Doug Sandridge, a true industry veteran with 50 years of experience in oil and gas. Doug reflects on the monumental changes he's witnessed throughout his career, offering expert insights into the evolution of technology, market dynamics, and the challenges facing the industry today. With a deep understanding of both the historical and future trends, Doug shares his thoughts on innovation, sustainability, and navigating the energy transition. Don’t miss this chance to hear from one of the industry's most respected voices! Subscribe to us on YouTube or Rumble. You can also listen on Spotify, iTunes or wherever you listen to podcasts.

Oil & Gas News

Trafigura: U.S. Sanctions on Iran Could Drive Up Oil Prices

Trafigura's top oil trader, Ben Luckock, says U.S. sanctions on Iran could push oil prices higher. He believes the uncertainty around how the U.S. will handle its relationship with Iran is the biggest risk to the oil market. Recently, the Trump administration imposed more sanctions on over 30 people and ships involved in transporting Iranian oil. These actions aim to reduce Iran's oil exports, and Trafigura warns that increasing pressure on Iran could lead to disruptions in oil supply, driving prices up.

BP Shifts Focus, Cuts Renewable Investments and Boosts Oil and Gas Spending

BP has made a big change in its strategy. Instead of spending heavily on renewable energy, the company is cutting its investment in green energy by more than $5 billion each year. Instead, it will focus more on oil and gas, planning to spend $10 billion a year in that area. BP's goal is to increase its oil and gas production by 2030. This shift comes after the company realized the move to renewable energy is happening slower than expected due to events like the war in Ukraine and changes in energy markets. BP is also planning to raise its dividend and make some big sales to increase profits.

Trump’s EPA Chief Wants to Change Key Climate Rule

Lee Zeldin, the head of the U.S. Environmental Protection Agency (EPA), is suggesting that the Trump Administration rewrite a key climate rule from 2009. This rule links greenhouse gases to climate change and has been the basis for many U.S. environmental laws. Changing this rule could undo many climate policies. The Trump Administration has already started rolling back some climate rules, including cutting support for renewable energy and electric vehicles. Environmental groups are strongly against this, saying it would harm the country and break the law.

Move to Watch

Ring Energy Buys $100 Million in Oil Assets from Lime Rock
Ring Energy has purchased oil assets from Lime Rock Resources for $100 million. These assets are located in Texas, right next to Ring's current operations. The deal includes 17,700 acres of land with an average oil production of 2,300 barrels per day. Ring will pay $80 million in cash now, another $10 million later, plus 7.4 million shares of its stock. This acquisition is part of Ring's ongoing strategy to expand and improve its business, including cutting costs and reducing debt.

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.

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 to us.

All the best,

Jay