Billionaire Buffett…he’s doing it again.

Newsletter No. 25

Today’s Headlines

  • The Rice Report

  • Biden Administration Quietly Settles with Eco Groups

  • Warren Buffett is Upping His Bet on Energy Infrastructure

  • Deal of the Week: Warrenton Completes Purchase of Struttman Oil 

  • Well of the Week: Believers #2

The Rice Report

King Operating’s Chief Growth Officer Eric Rice talks about some using fear-mongering about things that, in the grand scheme of things, don’t really matter to distract from the things that do.


He covers everything from the economy, including the GDP, digital currency, “The Green New Deal,” and the Nord Stream Pipeline.


Watch the video here.


The Biden Administration Quietly Settles with Eco Groups

In a recent development, the Biden administration quietly settled with a coalition of environmental groups seeking increased wildlife protections from offshore oil development in the Gulf of Mexico.


The National Marine Fisheries Service (NMFS) entered into a stipulated stay agreement with the environmental group, led by the Sierra Club.


Under the terms of the settlement, the administration has agreed to expand protection areas for the Rice’s whale species, pacifying environmental groups about insufficient protection in previous assessments.


The legacy energy industry explains that this settlement will hinder domestic energy production.


About 11 million acres with rich oil resources will be excluded from future lease sales in the Gulf of Mexico. This will impact future lease sales mandated by the Inflation Reduction Act.


The settlement also imposes new restrictions on oil and gas vessels, leading to reduced operating speeds and potential impact on transit windows.


Environmentalists, of course, have praised the settlement, but industry groups have raised concerns about the impact on America’s energy independence and economic growth.


The settlement’s implications on energy production in the Gulf of Mexico will undoubtedly continue to be a subject of significant debate and scrutiny.


Warren Buffett is Upping His Bet on Energy Infrastructure

Berkshire Hathaway, through Warren Buffet’s big energy and utility division, has made a significant move in the energy sector by acquiring a controlling stake in a liquefied natural gas (LNG) facility from Dominion Energy.


The deal, valued at an impressive $3.3 billion in cash, gives Berkshire Hathaway Energy a 50% ownership in the Cove Point LNG facility.


The Cove Point terminal, located in Lusby, Maryland, has substantial storage capacity, up to 14.6 billion cubic feet of LNG and a send-out capacity of 1.8 billion cubic feet. Yes, folks, that’s billion with a “B.”


This acquisition further cements Berkshire Hathaway’s commitment to energy infrastructure.


By taking control of one of the few functional LNG export facilities in the United States, Berkshire Hathaway is positioning itself in the growing LNG market. This move aligns with Buffett’s interest in energy investments and marks a step in the company’s long-term strategy in the energy sector.


In an effort to strengthen their presence in the global energy landscape, Berkshire Hathaway Energy has also secured a long-term contract with Sumitomo Corp. Sumitomo is a Japanese trading company with ties to Buffett’s investment portfolio.


Deal of the Week: Warrenton Oil Completes Purchase of Struttman Oil

In a notable move within the energy sector, Warrenton Oil, a well-established family-owned company located in Truesdale, Missouri, has recently completed the purchase of Struttman Oil, another family-owned company based in Hermann, Missouri.


This significant business deal represents a milestone for both companies, known for their deep community roots and dedication to excellence in service and customer satisfaction. By joining forces, Warrenton Oil and Struttman Oil will leverage their combined expertise, resources, and infrastructure to expand their reach and enhance capabilities in the competitive oil industry.


The details of the deal have not been fully disclosed in the initial report, but it signifies a notable development in the oil industry.


By combining their resources and expertise, the two companies aim to strengthen their positions in the competitive oil industry and continue providing outstanding services to their communities.


Well of the Week: Believers #2

Believers #2 is a well that is near and dear to King Operating Corporation, as we developed it.


This remarkable well has been flowing freely with oil for more than an unbelievable 35 straight days, boasting a daily average of 118 barrels.


At nearly 9,000 feet in depth, this vertical well landed in the Ellenberger formation. And while it may be considered small in size, its impact is undeniably mighty.


In today’s world, wells like Believers #2 are a rarity. What sets it apart is its ability to produce without the need for stimulation, which is typically required by most wells.


The impressive “first day” production for 35 days in a row is uncommon, making this well truly exceptional.


While its production will eventually decline over time, the potential for future stimulation opens up exciting possibilities. 


The success of Believers #2 provides King with a foundation for repeatability of this remarkable story in the near future.


If you would like to learn more about the Believers Project and King Operating, and are accredited, it’s a good time to have a conversation! You can schedule a Zoom conversation here

Exxon Expects Record Oil Demand Through 2024

Watch Jay Young discuss Exxon Mobil’s (XOM) production in the Permian is up because of the tech used for drilling and competing wells with TD Ameritrade. He and Dryden Pence discuss XOM 2Q earnings report.

Watch Interview

Recommended Reads

Supreme Court Reinstates Major Gas Pipeline in Blow to Environmental Groups

Global Energy Investments Rekindle Interest In Oil And Gas

What Would Happen to Russia’s Oil and Gas Industry if the Government Fell?

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,