Newsletter No. 123
Good afternoon,
It’s Thursday, July 3, 2025. Just in time for the 4th of July holiday weekend!
In this edition of The Upside, we’ll cover the latest news from the oil and gas industry, along with important updates from King. As always, my goal is to keep you informed on the trends shaping our industry.
This Week's Headlines
- Upcoming Webinar with King's Chief Economist John Mauldin
- O&G News Across the Globe, and Industry Insights on The Jay Young Show
- India Plans to Store More Oil as Demand Grows
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U.S. Oil Production Hits New High in April, Led by Texas
- Bill Weakens Renewables, Boosts Prospects for U.S. O&G Producers
- Oil Prices Rise Even as U.S. Stockpiles Grow
- New Era Helium and Sharon AI Team Up for Big AI Data Center in Texas
Happening at King
O&G News Across the Globe, and Industry Insights on The Jay Young Show
In the most recent episode of The Jay Young Show, my co-host Jordan Soto and I break down the biggest oil and gas stories of the week—including India’s sharp increase in U.S. crude imports, the latest on OPEC+ production plans, and how the growing demand from data centers is impacting the U.S. power grid and natural gas markets.
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We also sat down with Kelly Duncan, EVP of Operations at King, to talk about how strong planning and cost control are helping his team navigate a volatile market. We also cover changes in drilling technology, leadership in the field, and his advice for young professionals entering the industry.
Oil and Gas News
India Plans to Store More Oil as Demand Grows
India relies on imports for about 85% of its oil and just opened three more storage sites to boost its emergency reserves. They currently have enough oil to last about 75 days, but want to reach a 90-day buffer—especially to align with International Energy Agency rules. As fuel demand grows, they're considering new sites in Mangalore, Rajasthan, and Madhya Pradesh.
What’s changed? India has also more than doubled its oil imports from the U.S., boosting American crude to around 7% of its total oil imports—up from just 2% last year . That means they’re not only filling storage tanks at home but also reshaping where their oil comes from.
U.S. Oil Production Hits New High in April, Led by Texas
U.S. crude oil output set a new monthly record in April at 13.47 million barrels per day, edging past the previous high in March, according to the latest EIA data. Texas led the surge, increasing production by 1.8% to 5.77 million b/d, its highest since November 2024. Meanwhile, New Mexico saw a 3.4% dip to 2.19 million b/d. On the gas side, lower 48 states hit a record 120.31 billion cubic feet per day, with Texas also setting a new high at 37 billion cfd.
Bill Weakens Renewables, Boosts Prospects for U.S. O&G Producers
The budget bill passed in the House today and is now on its way to President Trump to be signed. It’s expected to slow down the growth of clean energy by phasing out important tax credits for wind and solar—even though a new tax on those projects was dropped. Meanwhile, the bill is a big win for oil and gas companies. It rolls back some environmental rules and gives major tax breaks and government support. That includes opening up more public land for drilling, possibly lowering the fees companies pay to drill there, and adding more tax incentives for fossil fuel production—costing the government billions.
Oil Prices Rise Even as U.S. Stockpiles Grow
U.S. oil and gasoline supplies increased more than expected last week, with crude inventories up 3.8 million barrels and gasoline up 4.2 million barrels, according to government data. Normally, a big increase in supply might push prices down—but instead, oil prices went up, with WTI hitting $66.11 and Brent at $67.73.
Even though supply is growing, diesel fuel (distillates) remains in short supply, sitting 21% below normal levels, which is helping keep prices steady. Demand is slightly lower than last year, but the market is still holding strong.
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Moves to Watch
New Era Helium and Sharon AI Team Up for Big AI Data Center in Texas
New Era Helium and Sharon AI are working together to build a large data center in Texas’s Permian Basin. They’ve made a deal with a major AI cloud company that wants to expand its operations. The project will include buying land and securing a big power supply—enough electricity to run powerful computers used for AI. The goal is to support the growing energy needs of tech companies in the area. They expect to finalize the land purchase by July 10 and are planning how to connect the site to natural gas and the electric grid.
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All the best,
Jay
