Newsletter No. 136
Good afternoon,
Let's jump right in this week and take a look at what’s happening in the oil and gas industry.
This Week's Headlines
- Global Crude Exports Surge to Record Highs
- Government Shutdown, Weather Drive Natural Gas Price Rally
- Expand Energy May Buy Pipelines as Gas Demand Grows
- U.S. Will Keep Issuing Oil and Gas Permits During Shutdown
- TotalEnergies Buys Anadarko Gas Stake from Continental
- TotalEnergies Sells Stakes in Norwegian Oil Fields
- New Webinar: The Great Reset, Part 2 with Chief Economist John Mauldin
Oil and Gas News
Global Crude Exports Surge to Record Highs
Global crude oil exports are at an all-time high because countries like the U.S., Saudi Arabia, Iraq, Brazil, and Guyana are pumping and selling more oil than ever before. This means there is a lot of oil available for shipping to other countries, especially from the Atlantic region, which has driven up shipping costs for giant oil tankers to Asia, sometimes as high as $100,000 per day.
U.S. oil production also hit record levels this year, and will likely reach another new high next year before possibly slowing down.
Government Shutdown, Weather Drive Natural Gas Price Rally
Natural gas futures for November rose sharply amid uncertainty caused by the U.S. government shutdown after Congress failed to pass a funding bill. The Energy Information Administration (EIA) continues to operate for now, but some federal agencies have scaled back, creating market volatility. Weather trends combined with limited official data and delayed permits have led traders to bid up prices, fueling a rally in natural gas futures as demand predictions become harder to gauge.
 |
Expand Energy May Buy Pipelines as Gas Demand Grows
Expand Energy, America’s biggest natural gas producer, might buy more pipelines and gas storage if they’re in the right location and at the right price. The company expects U.S. gas exports, especially liquefied natural gas (LNG), to double by 2030. This will require more pipelines and could stretch current storage capacity, making prices jump during storms or supply disruptions. Demand for gas from new AI-powered data centers is also rising, but LNG exports are set to be a bigger driver of growth. Expand wants to make sure it can reliably deliver gas as these markets grow.
U.S. Will Keep Issuing Oil and Gas Permits During Shutdown
Despite the partial government shutdown that began yesterday (October 1, 2025), the Trump administration plans to continue issuing permits for oil and gas drilling on federal lands to address the declared national energy emergency. Key agencies like the Bureau of Land Management and Bureau of Ocean Energy Management will keep some staff working on oil, gas, and coal project approvals, while work on offshore wind and other renewable energy projects will be paused. However, many federal employees will be furloughed, and agencies like the EPA and Federal Energy Regulatory Commission will scale back operations, possibly delaying some environmental regulations and pipeline permits. The shutdown could disrupt parts of the energy sector, but drilling and leasing permits for oil and gas are prioritized to continue.
Moves to Watch
TotalEnergies Buys Anadarko Gas Stake from Continental
Continental Resources sold nearly half (49%) of its natural gas assets in the Anadarko Basin, Oklahoma, to French energy company TotalEnergies. This deal gives TotalEnergies access to a big supply of low-cost, long-lasting natural gas that it plans to use mainly for liquefied natural gas (LNG) exports. The gas fields could produce about 350 million cubic feet of gas per day by 2030, with TotalEnergies getting about 150 million cubic feet daily. This helps TotalEnergies grow its U.S. gas production and strengthens its role in the global LNG market, while Continental Resources benefits from partnering with a global energy leader. The financial details of the deal were not shared.
TotalEnergies Sells Stakes in Norwegian Oil Fields
TotalEnergies is not just buying, it is also selling its minority shares in three older oil and gas fields off Norway, West Ekofisk, Albuskjell, and Tommeliten Gamma, to local companies Vår Energi and Orlen Upstream Norway. These fields, which stopped production in 1998, are set for redevelopment under a new project expected to start producing again by late 2028. The sale is part of TotalEnergies’ plan to focus on more profitable assets and reduce its debt by raising $3.5 billion through sales by the end of 2025. Vår Energi will increase its ownership in the area to over 50%, gaining low-cost reserves with growth potential.
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.
All the best,
Jay
