Newsletter No. 143
Good afternoon,
Let's jump right in this week and take a look at what’s happening in the oil and gas industry.
This Week's Headlines
- Oil Use is on the Rise
- AI Needs More Gas, But LNG Is Still in Charge
- Huge Demand for Gas Turbines Leaves the U.S. Short on Supply
- Tax Webinar, Part 3: "Don't Overpay the IRS This Year"
- New Podcast: Outsmarting the IRS with Ed Lyon + This Week’s Big Oil & Gas Market Movers
- Devon and Permian Resources Keep Buying Up Land in the Delaware Basin
Oil and Gas News
Oil Use is on the Rise
Global oil demand rose sharply in September, up 1.4 million barrels per day from August, mainly because the U.S. and Indonesia used more fuel. Countries also increased oil exports as OPEC+ eased its production cuts and the U.S., Brazil, Guyana, and Canada pumped more. But even with higher demand, oil stockpiles grew, adding millions of barrels of crude and refined products.
Natural Gas Prices Jump as Cold Weather Sparks First Seasonal Draw
U.S. natural gas futures climbed this week as traders reacted to colder weather forecasts and expectations of the season’s first storage withdrawal. December contracts moved solidly above the key $4.455 technical support level, trading near $4.53. Strong production continues, but demand is rising fast with higher U.S. consumption and steady LNG exports. With colder temperatures ahead and prices regaining technical strength, short-term momentum is turning bullish.
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AI Needs More Gas, But LNG Is Still in Charge
Experts say AI data centers want a lot of natural gas, but they’re not the biggest customer, LNG exports are. LNG companies locked in long-term deals years ago, giving them first claim on future gas supplies. By 2030, LNG demand is expected to double, far outpacing data centers.
On top of that, factories, chemical plants, steel mills, hydrogen projects and even big new developments like Elon Musk’s “Space City” also need huge amounts of natural gas. Many of these projects are being built in the same areas as LNG terminals and future data centers, making the competition for gas even tighter.
The U.S. can supply more gas, but only if drilling and pipeline construction keep up. If not, shortages and higher prices could hit quickly.
Bottom line: AI will get the gas it needs eventually, but not as fast as many tech developers think.
Huge Demand for Gas Turbines Leaves the U.S. Short on Supply
The U.S. is rushing to build a massive amount of new gas-fired power plants, mainly to keep up with electricity needs from AI data centers, factories, and other growing industries, but there aren’t enough gas turbines to go around. Turbines take years to build, only a few companies make them, and orders have piled up to record levels. Utilities, industrial companies, and tech firms are all competing for the same equipment, and some buyers are even purchasing used turbines just to get power faster. With huge backlogs and long wait times, turbine shortages are becoming a major bottleneck for powering the country’s rapid digital and industrial growth.
Happening at King
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New Podcast: Outsmarting the IRS with Ed Lyon + This Week’s Big Oil & Gas Market Movers
In this week’s episode of The Jay Young Show, my co-host Jordan Soto and I kick things off with the latest oil and gas headlines, market shifts, drilling updates, and what investors need to know right now. Then, I sat down with the IRS’s “biggest nightmare” and America’s funniest tax strategist, Ed Lyon, for a high-energy conversation on how small businesses and investors can legally beat the tax code at its own game.
Watch it on LinkedIn, Rumble and YouTube (@JayRYoungOfficial).
Move to Watch
Devon and Permian Resources Keep Buying Up Land in the Delaware Basin
Permian Resources and Devon Energy continued to grow their presence in the Delaware Basin by buying more land and production during the third quarter. Permian Resources alone made about 250 small deals, spending $180 million to add new acreage and about 800 barrels of oil equivalent per day. Earlier this year, they also bought a large block of land from APA for $608 million. Altogether, the company has spent over $800 million on Permian deals this year and now controls a huge footprint in the region. Leadership says they’re still reviewing dozens of new opportunities to keep expanding.
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All the best,
Jay
