Global Demand Keeps Oil & Gas Dominant

by Jay Young | Investing, Oil & Gas, Tax Savings, Taxes, The Upside

Newsletter No. 142

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

    • Fossil-fuel Demand Set to Keep Climbing Until 2050, Says IEA
    • Global Demand Keeps Oil and Gas in the Driver’s Seat
    • ConocoPhillips Targets $7B Cash Surge by 2029
    • Strong Early Flowback from Bivins Wells Shows Promising Production
    • Mauldin Webinar: Strong Assets in an Uncertain Market
    • Forbes.com Article: Simple Guide to Oil & Gas Tax Deductions 
    • New Podcast: The Doctor Leading the Shift from Sick Care to True Health Care
    • Baytex Sells Its Texas Oil Fields for About $2.3B, Refocuses on Canada

    Oil and Gas News

    Fossil-fuel Demand Set to Keep Climbing Until 2050, Says IEA
    According to the International Energy Agency’s (IEA) latest outlook, under current government policy the world’s demand for oil and gas is set to keep increasing through 2050 rather than peak early. They estimate oil demand could rise from around 100 million barrels per day now to about 113 million bpd by 2050. The shift reflects weaker climate-policy commitments and slower adoption of electric vehicles. 

    Global Demand Keeps Oil and Gas in the Driver’s Seat
    At a major energy forum in London, top oil and gas leaders emphasized that global demand for oil and gas remains strong, and continues to grow despite efforts to move toward cleaner energy. Even the International Energy Agency now acknowledges that new drilling and investment are needed to meet rising consumption and keep energy supplies stable. Executives from Saudi Aramco, TotalEnergies, and Occidental Petroleum noted that the world still depends on reliable, affordable energy to power economies, industries, and daily life. Most now agree the realistic path forward is a balanced mix of traditional fuels and emerging technologies like carbon capture, rather than a rapid or complete shift to renewables.

    ConocoPhillips Targets $7B Cash Surge by 2029
    ConocoPhillips projects a $7 billion boost in free cash flow by 2029, underscoring the strength and staying power of America’s energy sector. The company is trimming spending by $500 million in 2026 while maintaining steady production across top U.S. plays like the Permian, Eagle Ford, and Alaska’s North Slope. CEO Ryan Lance said the U.S. continues to lead the world in efficient, high-quality energy production, with the Willow project in Alaska expected to drive major growth starting in 2029. Backed by robust LNG investments and a deep inventory of drilling opportunities, ConocoPhillips’ outlook highlights how U.S. oil and gas companies are positioned for decades of reliable growth and energy leadership.

    Happening at King

    Strong Early Flowback from Bivins Wells Shows Promising Production
    Both Bivins wells began flowback operations in mid-October following successful completion activities, and the results are looking very positive. During the fracking of each well, over 260,000 barrels of fluid were pumped, a strong indication of robust reservoir stimulation. The two Bivins wells that are currently online are producing approximately 743 BOEPD combined.

    Both wells are expected to continue cleaning up and improving in production as more fluid is recovered over the coming weeks. Oil sales have already commenced, with first revenue expected in January or February, marking another milestone for this project. Gas is currently being flared until midstream facilities are completed, anticipated by early first quarter next year.

    If you’d like to learn more about these results, or discuss increasing your investment in this exciting opportunity, book a meeting with our team today.

    New Forbes.com Article: Simple Guide to Oil & Gas Tax Deductions
    Recent policy updates are creating major new opportunities for investors to reduce taxes and grow their portfolios through oil and gas.

    From 100% equipment write-offs and 85% first-year drilling deductions to faster permits, lower royalties, and delayed methane fees, the latest rules make energy investing more attractive than ever.

    If you’re comparing real estate vs. oil and gas for tax savings, or just want to understand how these changes impact high-income investors, this Forbes' article breaks it down.

    Read the full article on Forbes.com: Simple Guide to Oil & Gas Tax Deductions

    New Podcast: The Doctor Leading the Shift from Sick Care to True Health Care
    In this week’s episode of The Jay Young Show, my co-host Jordan Soto and I sat down with Dr. Erik Lundquist, a board-certified physician and pioneer in personalized, integrative medicine. Dr. Lundquist shares how combining conventional medical science with functional health strategies can help people reach their optimal state, not just treat disease after it strikes. From individualized nutrition and movement plans to stress-management tools, he breaks down what “whole-person health” really means. 

    Plus, my co-host Jordan Soto and I discuss the latest oil and gas news shaping the energy sector, and then wrap up the show with my Weekly Five.

    Watch it on LinkedIn, Rumble and YouTube (@JayRYoungOfficial).

    Moves to Watch

    Baytex Sells Its Texas Oil Fields, Refocuses on Canada
    Baytex Energy is selling all of its oil and gas wells in South Texas’ Eagle Ford Shale for about $2.3 billion. The buyer hasn’t been named yet.

    With the money from the deal, Baytex plans to pay off debt, buy back some of its own stock, and return cash to shareholders through dividends. The deal should close by early 2026, once regulators sign off.

    Have questions about oil and gas, alternative investing or tax strategies in oil and gas? Please include your question on the form and we will do our best to get them answered in a weekly market update.
       

    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.

     

    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 to us.

    All the best,
    Jay


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