Newsletter No. 76
Good morning,
It is Thursday, August 1, 2024, and I am bringing you up to speed on all the recent news in the oil and gas sector. Here we go with the latest developments.
This Week’s Headlines
- U.S. Oil and Gas Mergers Exceed $30B in Q2
- U.S. Oil and Gas Rig Count Hits Highest Monthly Rise Since 2022
- BP to Return $7B to Investors as It Expands Oil Operations
- Oil Prices Surge After Israel Strikes Kill Hamas and Hezbollah Leaders
- Ceres Power to Mass Produce Fuel Cell Tech Through New Partnership
- The Jay Young Show: Economist Tim Snyder Discusses Energy and Economic Trends
- The Rice Report: Debt Crisis and Global Unrest
global oil & gas news
U.S. Oil and Gas Mergers Exceed $30B in Q2
U.S. oil and gas mergers surged in the second quarter, exceeding $30 billion, driven by major deals like ConocoPhillips’ $22.5 billion bid for Marathon Oil. The average price for undeveloped properties rose by 68% this year. Exxon Mobil’s $60 billion offer for Pioneer Natural last fall started the latest wave of mergers, affecting producers and pipeline operators across Texas and North Dakota. Despite a drop from Q1’s $51 billion record, notable deals like Devon Energy’s $5 billion bid for Grayson Mills show the trend continues.
U.S. Oil and Gas Rig Count Hits Highest Monthly Rise Since 2022
The U.S. oil and gas rig count saw its largest monthly increase since November 2022, according to Baker Hughes. The total number of rigs rose by three to 589 in the week ending July 26, with oil rigs increasing by five to 482 and gas rigs decreasing by two to 101. This marks the second consecutive weekly rise, indicating a potential boost in near-term production. The rig count in North Dakota and Montana reached its highest level since June 2023 at 36.
BP to Return $7B to Investors as It Expands Oil Operations
BP will return $7 billion to investors in 2024 through increased dividends and stock buybacks following better-than-expected quarterly profits of nearly $2.8 billion. The company plans to develop a new oil hub in the Gulf of Mexico, despite criticism from green groups for reducing its green investments. BP will raise its dividend by 10% and buy back $1.75 billion in stock over the next three months. The company also plans to build green hydrogen projects while continuing major oil projects.
Oil Prices Surge After Israel Strikes Kill Hamas and Hezbollah Leaders
Oil prices surged early Wednesday, with Brent exceeding $80 and WTI nearing $77, following Israeli strikes that killed Hamas leader Ismail Haniyeh in Tehran and Hezbollah commander Fuad Shukr in Beirut. These attacks marked a major escalation in the regional conflict, heightening geopolitical tensions and causing immediate spikes in oil prices. The strikes have drawn widespread condemnation and threaten to derail Gaza ceasefire negotiations, significantly impacting the stability of the region. You can see the up-to-the-minute numbers here.
MOVE TO WATCH
Ceres Power to Mass Produce Fuel Cell Tech Through New Partnership
Ceres Power has increased its revenue forecast after signing a major manufacturing deal with an Asian company. This partnership will boost Ceres’s revenue significantly. First-half revenue is projected to more than double from last year. CEO Phil Caldwell highlighted the progress in their SOEC electrolyser technology, now being adopted by leading global firms. This deal aims to establish Ceres’s technology as the industry standard for industrial decarbonization.
HAPPENING AT KING
The Jay Young Show: Economist Tim Snyder Discusses Energy and Economic Trends
In this episode of the Forbes podcast The Jay Young Show, co-host Jordan Soto and I welcome Tim Snyder, an applied economist with over three decades of experience. As the founder of Matador Economics, Tim shares his insights on current oil and gas trends, the effects of political changes on the energy sector, and economic challenges such as national debt. With his deep industry knowledge, Tim offers valuable perspectives on the future of energy markets and the broader economy.
Subscribe to The Jay Young Show on Apple or Spotify, and you can watch many of the episodes on YouTube. You can also watch episodes on our website.
macro-economic look
The Rice Report: Debt Crisis and Global Unrest
In the latest episode of The Rice Report, Eric Rice gives his comprehensive analysis of economic, political, and social dynamics shaping today’s world. 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.
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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
