Newsletter No. 26
Good evening!
Hope everyone had a great week last week and hope everyone is doing well and staying out of the heat as best as they can. So, let’s jump right in to the news of the week.
Today’s Headlines
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This Week’s Installment of The Rice Report
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California Supreme Court Blocks Ban on Drilling in Monterey County
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Permian Basin is Attracting A Lot of Investment
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Deal of the Week: Kimbell Adds to Portfolio with Asset Acquisition
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Well of the Week: Daisy Bradford No. 3
This Week’s Installment of The Rice Report
King Operating’s Chief Growth Officer Eric Rice is back for another week, this time talking about how the S&P and Fitch have downgraded the U.S.’s credit rating, how other countries continue to move away from using the U.S. dollar, and other economic concerns for the country.
This week, he includes information on the upcoming BRICS Summit 2023 that will be held in South Africa, the tracking of things like cardboard boxes and how the decrease or increase of products like that can help in tracking the status of the economy, and many other interesting things about the state of this country and across the globe.
California Supreme Court Blocks Ban on Drilling in Monterey County
The California Supreme Court recently ruled against Monterey County’s ban on new oil wells.
The court found that the county didn’t have the authority to enforce such a ban, following a legal challenge from the oil industry. This decision comes amidst ongoing discussions in the state about the role of fossil fuels and their impact on the environment.
While the ruling allows for continued oil exploration in the county, it doesn’t end the statewide debate over fossil fuels’ future.
Environmental advocates and citizens are still pushing for stronger environmental protections and the promotion of renewable energy solutions.
This case’s outcome could influence future decisions on fossil fuel regulation in California as the state seeks to balance economic interests with environmental concerns.
Permian Basin is Attracting A Lot of Investment
Companies are continuing to ramp up production plans for the Permian Basin, across both New Mexico and Texas. This is an area that, of course, King Operating knows well.
The Believers Project, which you may have read about in previous newsletters or heard about from a King team member, is located in the Permian Basin, Borden County, TX, to be more specific.
With increasing demand and favorable market conditions, the region is proving to be a hotbed for energy exploration and extraction.
Oil and gas companies seem to be capitalizing on the resources and money-making opportunities presented by the Permian Basin. The area’s rich reserves have attracted significant investments, prompting operators to expand their operations and production capacities.
This surge in activity is driving the need for advanced technologies and infrastructure to support efficient exploration and drilling operations. As companies gear up to meet the growing demand, the region is witnessing an upswing in job opportunities, further boosting the local economy.
With an eye on maximizing profits and securing energy independence, oil and gas companies are pushing forward with ambitious plans to enhance production in the Permian Basin. The industry’s dynamic growth in this region is set to make a significant impact on the energy landscape, both regionally and globally.
As the sector continues to evolve and expand, stakeholders and investors are keeping a close watch on the developments in the Permian Basin, eager to capitalize on the potential for substantial returns.
Deal of the Week: Kimbell Adds to Portfolio with Asset Acquisition
Kimbell Oil & Gas recently made a significant move to expand its portfolio through the acquisition of valuable assets.
While the financial details and parties involved remain undisclosed, the acquisition includes strategically located oil and gas properties, expected to enhance the company’s operational efficiency and boost its overall production capacity.
The strategic decision aligns with Kimbell’s long-term growth strategy, allowing the company to capitalize on emerging market opportunities and strengthen its financial position. The move also aims to mitigate risks associated with market volatility and fluctuations in oil and gas prices.
Kimbell’s expansion signifies renewed investor interest in the oil and gas industry, potentially stimulating further mergers and acquisitions activity.
Well of the Week: Daisy Bradford No. 3
This significant discovery happened in the East Texas oil field back in 1930. It all started when a determined 69-year-old “wildcatter” named Columbus Joiner bought several oil leases and sought help from a self-proclaimed geologist, Doc Lloyd, to find a promising well site.
Joiner faced challenges and financial strains after drilling two unsuccessful wells on the property of widow Daisy Bradford. But he didn’t give up and, in May 1929, began drilling his third well on the same farm with a makeshift rig and a crew of farm hands, even though experts said there was no oil there.
The breakthrough came on September 5, 1930, when they extracted an oil-soaked core from the Woodbine Sand at a depth of 3,536 feet. However, Joiner, known for his flair, delayed further drilling until October 3, when a crowd of 8,000 people gathered to witness the big moment. It took until the evening, but finally, at 3,592 feet, the Daisy Bradford No. 3 erupted with oil, gushing at a rate of 300 barrels a day.
Despite the success of the six-billion barrel oil field, Joiner faced legal issues due to overselling shares to finance his venture. Eventually, he had to sell his interests to H.L. Hunt of Hunt Oil. While the discovery made many wealthy, Dad Joiner himself didn’t benefit financially from it.
The Daisy Bradford No. 3 remains a part of oil exploration history in the largest oil field in the contiguous United States.
Recommended Reads
Biden blocks more than 1.5M acres from drilling after eco groups’ legal challenges
Occidental Petroleum misses on quarterly profit, raises full-year output
Ambitious Canada player snaps up rival to create US$8.7B oil and gas company
Lastly, if you have a subject you would like me to discuss, please do not hesitate to reply to this email. I will do my best to include it as soon as I can.
All the best,
Jay
