Newsletter No. 89
Good afternoon,
It is Thursday, October 31, 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
- Ford Loses $1.2 Billion on EVs in Q3, Totaling $3.7 Billion for 2024
- Hess Beats Q3 Earnings Expectations Thanks to Guyana Oil
- Oil Prices Rise on U.S. Stockpile Decline
- Investment Giants Team Up for $50 Billion AI and Power Project
- Courtney Stephens on Empowering Women in Energy on The Jay Young Show
- The Rice Report: 7 Warning Signs of Economic Change
Global Oil & Gas News
Ford Loses $1.2 Billion on EVs in Q3, Totaling $3.7 Billion for 2024
Ford Motor Company reported a significant loss of $1.224 billion in its electric vehicle (EV) business during the third quarter of 2024, equating to a loss of $58,391 for each EV sold. Despite a 14.8% increase in EV sales, the company is struggling with high costs, demand issues, and charging infrastructure problems. This brings Ford's total EV losses for 2024 to $3.7 billion, matching the profit made from its traditional vehicle division. The ongoing financial challenges reflect broader difficulties in the EV market, leading Ford to rethink its strategies and cut prices to boost sales.
Hess Beats Q3 Earnings Expectations Thanks to Guyana Oil
Hess Corp., a leading U.S. shale oil company, reported strong earnings for the third quarter of 2024, largely due to its growing oil production in Guyana. The company posted earnings of $2.14 per share, beating Wall Street's estimate by $0.37, and had revenues of $3.2 billion, up 12.7% from last year.
Hess saw a 57% increase in oil output from Guyana, reaching 170,000 barrels per day. Looking ahead, Hess expects to keep increasing production in the fourth quarter, forecasting between 475,000 and 485,000 barrels of oil equivalent per day. The company also plans to spend about $4.9 billion this year to speed up the purchase of key equipment.
Oil Prices Rise on U.S. Stockpile Decline
Oil prices jumped more than 2% on October 30 after U.S. crude and gasoline inventories fell unexpectedly, indicating stronger demand. Brent crude futures increased by $1.43 to $72.55 per barrel, while U.S. West Texas Intermediate crude rose $1.40 to $68.61.
The Energy Information Administration reported that U.S. gasoline stockpiles hit a two-year low, driven by lower imports from Saudi Arabia and other countries. This increase in oil prices comes as market sentiment shifts due to the unexpected drop in inventories. You can see the up-to-the-minute commodities numbers here.
Move to Watch
Investment Giants Team Up for $50 Billion AI and Power Project
KKR, a major global investment firm, and Energy Capital Partners (ECP), a leading private-equity company, are joining forces to invest $50 billion in building data centers and power plants to support the growing demand for artificial intelligence (AI). ECP, the biggest private owner of power generation in the U.S., will work with KKR to speed up the development of the infrastructure needed for AI and cloud computing.
This investment highlights how much AI has surged in popularity and the increasing need for electricity to power it. ECP believes that new natural gas power plants could help meet this demand. They are focusing on collaborating with utility companies and developers to ensure there’s enough reliable electricity as the U.S. works to stay competitive in the AI space.
HAPPENING AT KING
Courtney Stephens on Empowering Women in Energy on The Jay Young Show
The Jay Young Show co-host Jordan Soto and I recently interviewed Courtney Stephens, CEO of QED Energy Associates. Courtney discusses her journey from petroleum analyst to entrepreneur, the creation of her company that trains reservoir engineering technicians, and the challenges women face in the energy sector. If you missed our conversation, you can watch the replay now, along with other podcasts on YouTube, Rumble, or directly on our website.
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macro-economic look
The Rice Report: 7 Warning Signs of Economic Change
In a recent special episode of The Rice Report, Eric Rice analyzes the warning signs of an impending economic crisis, such as rising inflation and government spending, discuss the potential impact on the U.S. election and market volatility, and explore gold's role as a hedge against uncertainty. 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.
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
