Continued Growing Oil Demand

Newsletter No. 124

Good afternoon,

Before we turn to this week’s news in oil and gas, I want to take a moment to acknowledge the tragic flooding in the Texas Hill Country. The devastation unfolding across the region is heartbreaking, and our thoughts and prayers are with all those affected—families, first responders, and entire communities facing unimaginable loss and disruption.

If you feel moved to help, here are a few trusted organizations currently accepting donations:

• Central Texas Food Bank – www.centraltexasfoodbank.org

• Salvation Army Disaster Services – www.salarmyeds.org

• Flood Relief Fund – www.cftexashillcountry.fcsuite.com

• Austin Pets Alive – www.austinpetsalive.org
• Kerrville Pets Alive – www.kerrvilepetsalive.com

In this edition of The Upside, we’ll cover the latest news from the oil and gas industry, along with important updates from King. As always, my goal is to keep you informed on the trends shaping our industry.

This Week's Headlines

• Missed the Webinar with King's Chief Economist John Mauldin?
• Fossil Fuel Policy Shifts & the Future of Oil Prices on The Jay Young Show
• EnCap Can Make Uinta Basin Oil Deals Again—No FTC Approval Needed

• UAE Says the World Needs More Oil—But Can OPEC+ Keep Up?

• Gasoline Demand and Red Sea Attacks Push Oil Prices Higher
• Texas LNG Firms Merge to Target Small-Scale U.S. Market

Happening at King

Missed the Webinar with King's Chief Economist John Mauldin?
If you’re an accredited investor and weren’t able to attend our exclusive webinar with King’s Chief Economist John Mauldin, you can still catch the valuable insights he shared on oil and gas, the future of energy, and global economic trends. To request access to the recording, please fill out this short form.

Don't miss this opportunity to hear directly from one of the leading voices in the energy space. You can also follow Mauldin by subscribing to his newsletter, Thoughts from the Frontline by clicking here.

Fossil Fuel Policy Shifts & the Future of Oil Prices on The Jay Young Show
In the most recent episode of The Jay Young Show, my co-host Jordan Soto and I touch on the recent Texas Hill Country flooding and share how you can support relief efforts. Then we talked about major updates in oil and gas, including the OBBB's (One Big, Beautiful Bill) impact on methane taxes, expanded drilling in Alaska, changes to LNG export rules, and new tariffs tied to Venezuela and BRICS. We also preview the upcoming OPEC+ vote and share why I remain bullish on U.S. oil prices. Watch the full episode below. You can also subscribe to the channel on YouTube, Rumble, or your favorite podcast platform.

Oil and Gas News

EnCap Can Make Uinta Basin Oil Deals Again—No FTC Approval Needed
The FTC has removed a rule that used to block EnCap Investments and its companies, like XCL and Verdun, from making oil and gas deals in Utah’s Uinta Basin without getting permission first. Now, they just have to let the FTC know before doing a deal—no approval needed. The original restriction was put in place in 2022 but has now been relaxed, giving EnCap and its partners more freedom to explore new opportunities in the area without long delays.

UAE Says the World Needs More Oil—But Can OPEC+ Keep Up?
The UAE says global oil demand is strong and the market needs more barrels, even with OPEC+ planning big production increases in August and September. But there’s a catch—some OPEC+ countries may not be able to pump as much as they say due to aging equipment, lack of investment, or political issues. If too much oil hits the market while demand slows in the fall, prices could drop. But if production falls short, prices could stay high—especially with global tensions in places like the Red Sea. For now, OPEC+ is trying to balance between keeping oil prices stable and holding on to their share of the market.

Gasoline Demand and Red Sea Attacks Push Oil Prices Higher
Oil prices went up this week thanks to strong U.S. gasoline demand and new attacks on ships in the Red Sea. Americans are driving more—gas use jumped 6%—which is keeping demand high. At the same time, attacks by Houthi rebels in a key shipping route raised concerns about global supply. The U.S. also said oil production could slow next year as companies cut back due to lower prices. Even though OPEC+ is increasing output, the market is handling the extra oil without flooding supply—so prices are holding steady.