Oil Prices Continue to Rise

Newsletter No. 74

Good morning,

It is Thursday, July 18, 2024, and I am bringing you up to speed on all the recent developments in the oil and gas sector. Here we go with the latest developments.

This Week’s Headlines

  • Exxon Mobil Plans Major Oil Expansion in Guyana
  • U.S. Eases Venezuela Sanctions, PdVSA Still Restricted
  • Ukraine Sanctions Halt Russion Oil Supply to Hungary
  • Oil Prices Rise as EIA Reports Crude Draw and Mixed Fuel Inventories
  • UAE Considers New Nuclear Power Plant to Meet Growing Energy Demands
  • Featured in USA Today
  • The Rice Report: Inflation Isn’t What You Think

global oil & gas news

Exxon Mobil Plans Major Oil Expansion in Guyana

Exxon Mobil Corp intends to drill up to 30 wells for its new Hammerhead oil project in Guyana, which is expected to start production in 2029. This project will increase the country’s oil production capacity to over 1.4 million barrels per day. The Hammerhead project, pending government approval, will have a floating production unit and aim for a daily output of 120,000-180,000 barrels of crude oil.

U.S. Eases Venezuela Sanctions, PdVSA Still Restricted

The U.S. has relaxed some sanctions on Venezuela, allowing LPG exports until July 2025, but continues to block transactions with state oil company Petróleos de Venezuela, S.A. (PdVSA). This move comes after the previous license expired and amid ongoing tensions between Venezuela and Argentina.

Ukraine Sanctions Halt Russian Oil Supply to Hungary

Ukraine’s new sanctions on Russian oil company Lukoil have stopped Russian crude deliveries to Hungary, which were previously transported via the Druzhba pipeline. Hungary is working with Lukoil and Russia to resolve the issue and resume oil supplies for energy security. Despite EU regulations allowing Russian oil imports, current restrictions affect Hungary’s access to this energy source.

Oil Prices Rise as EIA Reports Crude Draw and Mixed Fuel Inventories

Oil prices increased after the U.S. Energy Information Administration (EIA) reported a 4.9 million-barrel draw in crude oil inventories for the week ending July 12. Gasoline inventories rose by 3.3 million barrels, while middle distillates saw a 3.5 million-barrel increase. Despite mixed results in fuel inventories, oil prices climbed over 1% with WTI up $1.32 per barrel and Brent up $0.93. You can see the up-to-the-minute numbers here.

move to watch

UAE Considers New Nuclear Power Plant to Meet Growing Energy Demands

The United Arab Emirates is exploring the possibility of building a second nuclear power plant to address increasing electricity demands driven by population growth and industrial expansion. The UAE’s first Barakah Nuclear Energy Plant, completed in 2023, cost nearly $25 billion and is set to begin commercial operations this year. The proposed new plant could feature two to four reactors, though no final decision has been made yet.

HAPPENING AT KING

Featured in USA Today

I wanted to share a recent USA Today feature on my journey from Sulphur Springs, Texas, to the energy industry. Growing up in a family grounded in hard work, I learned resilience from my great-grandfather’s old pickup truck rides and working multiple jobs under the Texas sun.

When I chose to stay in Sulphur Springs and take over my grandfather’s hardware store instead of chasing a big offer in San Angelo, it was a pivotal decision. That choice, along with my diverse career experiences, eventually led me to start King Operating Corporation in 1996.

You can read the article here or read more about my story and the lessons I’ve learned in my book, The Upside of Oil and Gas Investing. You can also request a signed copy of the book at the website popup here.

Thanks for following along on this journey!

macro-economic look

The Rice Report: Inflation Isn’t What You Think 

In the latest episode of The Rice Report, Eric Rice lays out his case for how central banks and giant corporations use inflation to manipulate the economy and devalue your currency. You can watch this and more episodes of The Rice Report on YouTube and Rumble.

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. 

Also, please let us know how we are doing at King Operating Corporation. Leave a review here.

Recommended Reads

Oil and Gas Exports Are Increasingly Important for Canada’s Economy

Judge pauses Wyoming oil and gas drilling leases pending review

S&P 500 Gains and Losses Today: Oil and Gas Stocks Power Up, Renewables Lose Steam

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