Newsletter No. 45
Good morning,
I want to start off by wishing all of you a Merry Christmas! May your days be filled with joy, laughter, and the warmth of spending time with family and friends.
Explore this newest edition of The Upside including some of the latest news in the oil and gas industry.
On another note, please be aware that The Rundown will be taking a short hiatus through the holidays, and it will return to its regular Monday spot on January 8, 2024.
This Week’s Headlines
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Tax Guy Ed Lyon Talks About Tax Loopholes on The Jay Young Show
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“Ask Jay” on Risk Management in Oil and Gas
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Gulf of Mexico Drilling Auction Raises $382M in Last Sale Until 2025
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Middle East Tensions, Including Attacks on Ships, Spark Oil Market Concerns
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Tax Guy Ed Lyon Talks About Tax Loopholes on The Jay Young Show
With a knack for outsmarting tax codes and a touch of humor, Ed Lyon, dubbed “the funniest tax guy in America” by CNN, joined me on the latest episode of The Jay Young Show to share his wisdom on helping small businesses retain more of their hard-earned money. He gives insights on many of the tax loopholes people don’t think about. This advice is especially crucial for the end of the year, so don’t miss this episode. You can listen to it on Apple, Spotify, iHeart, Amazon, and all podcast platforms.
Ask Jay
In this week’s ‘Ask Jay,” I was asked about risk management in oil and gas. For my insight on that subject, watch the video here.
Gulf of Mexico Drilling Auction Raises $382 Million in Last Sale Until 2025
The recent auction of Gulf of Mexico drilling rights by the Biden administration raised $382 million, marking the highest total for a federal offshore oil and gas lease sale since 2015. Notable participants included Shell, Hess, Anadarko, BP, Chevron, Repsol, and Equinor. Anadarko secured the highest bid of over $25 million for a block in the deepwater Mississippi Canyon area. This auction will likely be the last opportunity for oil and gas companies to bid on Gulf of Mexico acreage until 2025, according to the administration’s five-year schedule. The sale covered over 72.7 million acres, including contested areas related to habitat protection. The results prompted calls for increased leasing from industry groups, while environmentalists criticized the prioritization of profits over environmental concerns. Approximately 2.4% of the offered acreage received bids, with the majority in water depths exceeding 800 meters. President Biden, who aims to limit new oil and gas leasing as part of his climate change agenda, faces complexities as federal law links offshore wind leasing to oil and gas drilling rights.
Middle East Tensions, Including Attacks on Ships, Spark Oil Market Concerns
BP’s decision to temporarily reroute tankers from their usual Red Sea route due to Houthi rebel attacks has raised concerns in the oil markets. While other shipping companies follow suit, tensions in the Red Sea initially spiked Brent crude and TTF natural-gas benchmark prices, only to fall after the announcement of a multinational naval force protection. The Red Sea, important for energy exports, sees 12% of global seaborne oil trade and 8% of LNG shipments. The war in Ukraine has heightened Suez Canal traffic, impacting oil markets as sanctioned Russian oil finds new markets. A prolonged disruption could force markets onto alternative routes, raising transportation prices and potentially impacting global inflation trends. Despite these concerns, most oil shipments continue through the Suez Canal, with weak demand being the primary worry in the energy markets.
As always, 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.
You can also get a signed copy of my book, “The Upside of Oil and Gas Investing” Just send your name and address to info@kingoperating.com.
In the News
Interview with “Stacy on the Right” with Stacy Washington on Sirius XM Patriot Radio discussing the fluctuating gas prices.
Recommended Reads
Angola leaves OPEC, in blow to producer group
Oil & Gas Stock Roundup: Pembina’s Asset Buy, Transocean’s Rig Deal & More
US and UK tighten enforcement of Russian oil price cap
Thank you for your continued support, and if you have any questions for myself or any member of the King team, please don’t hesitate to reach out.
All the best,
Jay
