Newsletter No. 119
Good afternoon,
It’s Thursday, June 5, 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.
As always, my goal is to keep you informed on the trends shaping our industry. Thanks for reading.
This Week's Headlines
- AI, Oil, and Global Power Plays on The Jay Young Show
- EOG's Big Buy in Ohio Could Trigger More Oil and Gas Deals
- Trump Invokes Emergency Powers to Boost U.S. Critical Minerals Industry
- Oil Prices Keep Climbing as Global Tensions Grow
- Russia’s Oil Money Drops Big as Prices Fall and They Are Hit by Sanctions
- Viper Energy to Buy Sitio Royalties in $4.1B Deal
Happening at King
AI, Oil, and Global Power Plays on The Jay Young Show
In the latest episode of The Jay Young Show, my co-host Jordan Soto and I explore how artificial intelligence and machine learning are reshaping the oil and gas industry. We also look at global energy topics like U.S. sanctions, Russia’s gas dependence, and recent oil price swings. It’s a timely, insightful conversation you won’t want to miss. You can watch the episode below or on YouTube at The Jay Young Show.
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Oil and Gas News
EOG's Big Buy in Ohio Could Trigger More Oil and Gas Deals
EOG Resources is buying Encino Energy for $5.6 billion, giving it control of over half of Ohio’s oil production from horizontal wells and a big chunk of natural gas output. This leaves a lot of oil and gas still available in the state, making other companies potential takeover targets. Firms like Ascent, Infinity, and Gulfport might be next in line for deals. With high interest in the area and investors looking for good value, more buying and selling in Ohio’s oil and gas industry could be coming soon.
Trump Invokes Emergency Powers to Boost U.S. Critical Minerals Industry
President Donald Trump plans to use emergency powers under the Defense Production Act to strengthen domestic production and processing of critical minerals, aiming to reduce U.S. reliance on China. An executive order will waive certain legal requirements, streamlining efforts to revitalize the American supply chain for minerals vital to energy, electronics, and defense. The move reflects broader efforts by the Trump Administration to prioritize mineral independence, citing national security and economic resilience.
Oil Prices Climb as Global Tensions Grow
Oil prices are rising as worries grow about getting enough supply. Fighting between Russia and Ukraine might affect Russian oil, and Iran rejected a U.S. deal that could have lifted sanctions on its oil. In Canada, wildfires have stopped a bit of their oil production. OPEC didn’t increase output as much as some expected, which also pushed prices higher. Below is a look at WTI prices as of early Wednesday.
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Russia’s Oil Money Drops Big as Prices Fall and They Are Hit by Sanctions
Russia made 35% less money from oil and gas in May compared to last year, bringing in about $6.55 billion. Lower oil prices, Western sanctions, and a stronger ruble are hurting its economy. This drop in income is making it harder for Russia to cover its budget and fund its war in Ukraine. The government now expects a bigger budget shortfall in 2025 and has cut its forecast for oil and gas earnings.
Moves to Watch
Viper Energy to Buy Sitio Royalties in $4.1B Deal
Viper Energy is buying Sitio Royalties for $4.1 billion in a stock deal to become a bigger player in the oil and gas royalty business. The move will give Viper more land in the oil-rich Permian Basin and other areas, helping it produce oil more cheaply. The deal has been approved by both companies and key shareholders, and it's expected to be finalized later this year. Viper also expects to save over $50 million by combining the two companies.
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All the best,
Jay
