Newsletter No. 117
Good evening,
It’s Thursday, May 22, 2025. In this edition of The Upside, we’ll cover the latest news from the oil and gas industry, along with important updates from King.
Before we begin, I want to take a moment to acknowledge the tragic loss of two Israeli diplomats, Yaron Lischinsky and Sarah Milgrim, who were fatally shot last night outside the Capital Jewish Museum in Washington, D.C. Our hearts are with their families, loved ones, and colleagues during this incredibly painful time.
We continue to pray for peace and calm in our country. No one should ever feel unsafe — not at work, not at worship, not in their community.
As always, my goal is to keep you informed on the trends shaping our industry. Thanks for reading.
This Week's Headlines
- Natural Gas Futures Steady as Traders Watch Weather and Exports
- Woodside Predicts 50% Surge in Global Gas Demand by 2030
- Oil Prices Surge on Threat of Israeli Strike on Iran
- Occidental Drills Deeper in the Permian to Find More Oil and Gas
- Tallgrass Secures Key Partner for New Permian Natural Gas Pipeline
- Last Chance to Register for This Upcoming Webinar
- Exxon, Shell, and BP May Team Up with ONGC on $5B Offshore Project
- Chevron Eyes Major Oil and Gas Blocks in Indonesia
Oil & Gas News
Natural Gas Futures Steady as Traders Watch Weather and Exports
Natural gas futures are holding near $3.44 as traders weigh rising U.S. exports to Mexico, mixed weather forecasts, and technical signals. While cooler temperatures in much of the U.S. are limiting current demand, hotter conditions expected by early June could boost air conditioning use and power demand. Exports and stronger regional cash prices support the market, but high gas production and lower electricity use are keeping gains in check. A price breakout depends on sustained heat and a move above key resistance levels.
Woodside Predicts 50% Surge in Global Gas Demand by 2030
Woodside Energy, Australia's top gas producer, expects global demand for natural gas to grow by 50% by 2030. CEO Meg O’Neill said many countries see gas as a key part of their energy mix while transitioning to cleaner fuels. To meet this demand, Woodside is investing in projects like the Louisiana LNG plant in the U.S., which recently got the green light for construction. The company is also working with Saudi Aramco and advancing its Scarborough gas project in Australia, aiming to ship its first LNG cargo by late 2026.
Occidental Drills Deeper in the Permian to Find More Oil and Gas
Occidental Petroleum is looking for more oil and gas in new, deeper underground layers of the Permian Basin in West Texas. Instead of sticking to the usual areas, they're now drilling into lesser-known zones called Strawn, Atoka, Wichita-Albany, and Barnett. They’ve already drilled some new wells, including ones they got through a recent company purchase. Early results show these deeper wells are producing solid amounts of oil and gas. This move could help them find more fuel and keep production strong in the future.
Tallgrass has finalized agreements with an anchor shipper to support the construction of a new natural gas pipeline from the Permian Basin to the Rockies Express and other delivery points. With enough financial backing now in place, the Denver-based company plans to have the pipeline operational by late 2028. The line is designed to carry up to 2.4 billion cubic feet of gas per day, depending on final shipper demand.
Exxon, Shell, and BP May Team Up with ONGC on $5B Offshore Project
Oil giants ExxonMobil, Shell, and BP are in early talks to help India’s state-run ONGC develop a major $5 billion offshore oil and gas project off India’s east coast. The site, called the KG Basin, has had lower production than expected and is difficult and expensive to drill. ONGC is looking for a partner with the money and technology to boost output. Exxon is currently seen as the top contender. Any deal would likely require a big investment and careful planning due to government rules and past legal issues.
Chevron Eyes Major Oil and Gas Blocks in Indonesia
Chevron is looking to return to Indonesia by exploring large oil and gas blocks with big reserves, according to the country’s energy regulator. The company is interested in areas with around 15 trillion cubic feet of gas and is still in the early stages of evaluation. Chevron had previously left Indonesia in 2023 after delays in a major offshore project but is now considering new opportunities, including in Bali and eastern Indonesia.
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All the best,
Jay
