Newsletter No. 128
Good afternoon,
Let's jump right in this week and take a look at what’s happening in the oil and gas industry, along with some updates from King.
This Week's Headlines
- Energy Transfer Plans $5.3B Pipeline to Send More Gas West
- Russia Sends More Oil Abroad After Drone Strikes Shut Refineries
- Trump Doubles Tariffs on India for Buying Russian Oil
- Diamondback Wants to Stay the Top Buyer in the Permian
- Exxon Ready for More Deals After Pioneer Buy—But Only If They Add Value
- ConocoPhillips is Selling Anadarko Basin Assets for $1.3B
Oil and Gas News
Energy Transfer Plans $5.3B Pipeline to Send More Gas West
Energy Transfer is spending $5.3 billion to build a new 516-mile pipeline that will carry more natural gas from the Permian Basin to Arizona, New Mexico, and West Texas. The project will add enough capacity to power growing cities and energy-hungry data centers. It’s set to be finished by the end of 2029 and could get even bigger if demand keeps rising. The project will create up to 5,000 construction jobs and use U.S.-made steel.
Russia Sends More Oil Abroad After Drone Strikes Shut Refineries
Ukraine’s drone attacks damaged two major Russian refineries, leaving Russia with too much crude oil it can’t process at home. To deal with the excess, Russia plans to ship about 200,000 extra barrels per day from its western ports this month, reaching 2 million barrels daily. This has caused gasoline prices in Russia to hit record highs, while oil traders rush to book more tankers to move the surplus oil overseas.
Trump Doubles Tariffs on India for Buying Russian Oil
President Trump is doubling tariffs on Indian goods to 50% because India keeps buying oil from Russia. The new tariffs start in 21 days and could hurt major Indian industries like clothing, jewelry, and electronics, worth about $64 billion in trade. India called the move unfair, saying it only bought Russian oil after other suppliers shifted to Europe. At the same time, the U.S. signed a new energy deal with Pakistan, adding more pressure on India.
Diamondback Wants to Stay the Top Buyer in the Permian
Diamondback Energy’s CEO says the company plans to stay a leading buyer of oil and gas assets in the Permian Basin but will be picky about new deals. The company is selling $1.5 billion worth of non-core assets to cut debt and just increased its stock buyback program to $8 billion. Diamondback is also working on ways to get more oil from older wells and expects production to keep growing. Its subsidiary, Viper Energy, is finalizing a $4.1 billion purchase of Sitio Royalties.
Moves to Watch
Exxon Ready for More Deals After Pioneer Buy—But Only If They Add Value
Exxon Mobil has finished merging with Pioneer and is open to buying more companies—but only if the deals create extra value, not just more oil. CEO Darren Woods said Exxon wants acquisitions where its technology and expertise can make the combined company stronger than either could be alone. The company is looking for partners with talent and good assets across all parts of its business, not just cutting costs. Future deals will focus on long-term growth and benefits for shareholders.
ConocoPhillips is Selling Anadarko Basin Assets for $1.3B
ConocoPhillips is selling some of its oil and gas land in Oklahoma—originally bought in its Marathon Oil deal—for $1.3 billion. The land produced about 39,000 barrels of oil and gas per day, with about half being natural gas.
The sale is part of ConocoPhillips’ plan to sell off non-essential assets to help pay down debt. The company originally aimed to sell $2 billion worth, but it's now raised that goal to $5 billion by 2026.
Although Oklahoma's Anadarko Basin hasn't been a hot spot in recent years, rising natural gas prices and fewer drilling options elsewhere are bringing new interest—especially from private energy companies.
Happening at King
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All the best,
Jay
