Newsletter No. 144
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
- AI-Driven Power Demand Creates New Opportunities for U.S. Oil & Gas
- WTI Pushes Back Toward $60; Natural Gas Goes Over $5
- Trump Moves to Roll Back Fuel-Efficiency Standards
- U.S. Natural Gas Producers Poised to Benefit as LNG Demand Surges
- Private Equity Buying Big Oil’s Pipelines Boosts Opportunity for U.S. Producers
- Upcoming Webinar Featuring Chief Economist John Mauldin
- New Podcast: Raising $2 Billion with Brad Blazar
- Diversified and Carlyle Make $550 Million Move in Oklahoma’s Anadarko Basin
Oil and Gas News
AI-Driven Power Demand Creates New Opportunities for U.S. Oil & Gas
The surge in electricity prices, driven by AI, cloud computing and explosive data-center growth, is creating a major upside for U.S. oil and gas producers. As Big Tech, retailers and even companies like Disney scramble to secure reliable, around-the-clock power, natural gas is emerging as the most dependable and scalable solution. Big Tech’s shift into energy trading highlights a simple reality: intermittent renewables alone can’t meet 24/7 high-load data-center demand. This opens the door for long-term gas supply agreements, new gas-fired power plant development and premium pricing in regions with tight capacity. With more companies entering sophisticated energy markets, the value of stable, dispatchable fossil-fuel generation is rising. This, I believe, is positioning U.S. oil and gas producers to benefit from stronger demand, longer-term contracts and increased investment across the power sector.
WTI Pushes Back Toward $60; Natural Gas Goes Over $5
WTI crude rose 1% to $59.20, inching back toward the key $60 mark after Moscow confirmed that its peace talks with U.S. officials failed to produce any compromise that might ease sanctions on Russian oil. The breakdown kept geopolitical risk elevated, reinforcing support for crude prices. At the same time, natural gas futures continued their upward momentum, hovering above the $5 level as winter demand expectations and supply concerns tightened the market. Gains in oil were partially capped by rising U.S. crude and fuel inventories, with official EIA stockpile data due later today.
Trump Moves to Roll Back Fuel-Efficiency Standards
President Trump plans to loosen the Biden-era fuel-efficiency rules that required a 2% yearly mileage increase for vehicles made from 2027–2031, a move the White House says will save Americans up to $109 billion. Major automakers support the rollback, arguing it better fits market realities, while critics warn it will increase oil use, raise long-term fuel costs and slow climate progress. For U.S. oil and gas operators, this shift likely means higher gasoline demand, slower EV adoption, and a longer runway for hydrocarbon consumption, overall a supportive signal for domestic producers, refiners and the broader energy sector.
U.S. Natural Gas Producers Poised to Benefit as LNG Demand Surges
U.S. LNG demand is set to nearly double by 2029 as major export terminals along the Gulf Coast come online, creating one of the biggest growth opportunities the natural gas industry has seen in years. LNG developers plan to add almost 14 Bcf/d of new capacity, on top of the roughly 15 Bcf/d the U.S. already exports, meaning producers across every major gas basin will be needed to meet this surge. Rising prices and stronger long-term demand have already pushed drilling activity higher nationwide. While basins like the Permian and Appalachia face pipeline bottlenecks, new infrastructure projects are in motion, and all regions stand to benefit from tighter markets and increasing export pull. As global buyers seek reliable U.S. supply, natural gas producers from Texas to Pennsylvania are well positioned to grow production, secure long-term contracts and capitalize on America’s expanding role as the world’s top LNG supplier.
 |
Private Equity Buying Big Oil’s Pipelines Boosts Opportunity for U.S. Producers
Private equity firms are buying pieces of Big Oil’s pipelines, giving major companies fast cash while investors gain steady, low-risk returns. BP and Shell are already selling minority stakes in key pipeline systems, freeing up billions they can reinvest directly into drilling and production.
For smaller Texas oil and gas producers, this is a positive trend: more capital in the system means more drilling activity, more infrastructure investment, and more pipeline capacity, ultimately creating better market access and stronger demand for their production.
Happening at King
 |
New Podcast: Raising $2 Billion with Brad Blazar
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 sit down with capital-raising expert Brad Blazar, who has helped raise over $2 billion for businesses, real estate and major investment projects. Brad breaks down the mindset, strategies and systems behind successful capital formation. Don't miss this informative, interesting episode.
Watch it on LinkedIn, Rumble and YouTube (@JayRYoungOfficial).
Move to Watch
Diversified and Carlyle Make $550 Million Move in Oklahoma’s Anadarko Basin
Diversified Energy and investment firm Carlyle just bought Oklahoma oil and gas producer Canvas Energy for $550 million. Canvas brings solid production, about 24,000 barrels of oil equivalent per day, and 250,000 acres in the STACK play, boosting Diversified’s total Oklahoma footprint to 1.6 million acres. The deal also includes undeveloped land with room for future drilling if needed. This purchase is part of a much bigger plan: Diversified and Carlyle have committed up to $2 billion to buy dependable, already-producing wells across the U.S. Earlier this year, Diversified bought Maverick Natural Resources for $1.3 billion. Diversified’s strategy is simple but effective: buy large numbers of low-decline wells, collect steady cash flow and avoid the cost and risk of drilling new wells.
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.
All the best,
Jay
