Newsletter No. 85
Good afternoon,
It is Thursday, October 3, 2024 and here is another edition of The Upside where I bring you the latest updates on the oil and gas industry, including what’s happening here at King.
This Week’s Headlines
- Chevron-Hess Merger Passes FTC Review
- Texas Approves Plan to Enhance Oil and Gas Production While Electricity Demand Rises
- Oil Prices Climb as Tensions Rise Between Israel and Iran
- TotalEnergies Increases Dividend by 5%
- Steven Matsumoto Shares His Inspiring Journey on The Jay Young Show
- The Rice Report: Global Insights on China, Japan, and Economic Trends
Global Oil & Gas News
Chevron-Hess Merger Passes FTC Review
Chevron’s merger with Hess has cleared the Federal Trade Commission’s antitrust review, marking a significant step toward finalizing the deal. Chevron’s CEO, Mike Wirth, expressed optimism about the merger’s benefits for shareholders and its impact in Guyana. As part of the agreement, Hess CEO John Hess will serve as an advisor rather than joining Chevron’s Board. The merger still awaits resolution of ongoing arbitration concerning rights in the Stabroek Block.
Texas Approves Plan to Enhance Oil and Gas Production While Electricity Demand Rises
The Public Utility Commission of Texas (PUCT) has endorsed the Permian Basin Reliability Plan, aiming to expand the largest U.S. oilfield to meet increasing electricity demands. This initiative follows a report highlighting the region’s rising energy needs, exacerbated by factors like population growth and industrial activities. While the plan promotes electrification and emission reductions in oilfield operations, it also intensifies pressure on Texas’ power grid. ERCOT forecasts a 27GW demand surge by 2027, necessitating $12.95 billion to $15.32 billion in infrastructure upgrades.
Oil Prices Climb as Tensions Rise Between Israel and Iran
Crude oil prices increased due to escalating geopolitical tensions following Iran’s missile attack on Israel. The situation intensified after Israel’s military actions against Hezbollah in Lebanon and the deaths of Israeli troops. Brent crude rose 1.56% to $74.71 per barrel, while West Texas Intermediate (WTI) increased 1.66% to $70.99. Analysts warn that prices could spike further if Israel proceeds with threats to target Iran’s oil and gas infrastructure in retaliation, potentially destabilizing oil markets significantly.You can see the up-to-the-minute commodities numbers here.
Move to Watch
TotalEnergies Increases Dividend by 5%
TotalEnergies announced a 5% increase in its dividend per share for 2025, along with $2 billion in quarterly buybacks, as part of its strategy to prioritize cost-effective upstream production. The company aims for 4% annual production growth from 2024 to 2030 and expects to generate over $10 billion in underlying free cash flow. CEO Patrick Pouyanne highlighted the company’s low breakeven oil price of under $50 per barrel, positioning it well despite recent market fluctuations. TotalEnergies also plans to invest in major projects, including a $10.5 billion offshore development in Suriname.
HAPPENING AT KING
Steven Matsumoto Shares His Inspiring Journey on The Jay Young Show
The Jay Young Show co-host Jordan Soto and I interview Steven Matsumoto, exploring his remarkable journey from military service to entrepreneurship, including his experiences in marketing and banking, his co-founding of Juno’s Liquor, and the lessons learned from his challenges and successes. If you missed our live episode with him, you can catch the replay on YouTube, Rumble, or directly on our website.
Virtual Summit Next Week
King is sponsoring the Oil & Gas Investor Summit. It is a virtual summit running live every day from 3:30 pm to 6 pm CST October 7-11 and will feature best-selling authors, investment and estate planning professionals, attorneys, CPA and more, focusing on the different aspects of oil and gas investing. Register for free today.
Join other accredited investors interested in learning the fundamentals and advanced practices of seasoned professionals and industry leaders who give advice on investing in oil and gas assets as well as diversifying and expanding portfolios. Don’t miss this opportunity to learn the strategies that help generate passive income, and take advantage of tax benefits, all while gaining insights into a market with long-term potential.
macro-economic look
The Rice Report: Global Insights on China, Japan, and Economic Trends
In a recent special episode of The Rice Report, Eric Rice provides an in-depth analysis of recent developments in China and Japan, the challenges of fiat currency and inflation, and significant global events impacting the economy. You can watch this and more episodes of The Rice Report on YouTube and Rumble.
Also, please let us know how we are doing at King Operating Corporation. Leave a review here.
Recommended Reads
Chevron Restarts Gas Production in Israel After Brief Halt During Iran’s Attack
Prolonged port strike could shake up the oil and gas industry
Report: Malaysia defies China’s patrols to expand South China Sea drilling
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
