Oil Prices Rise on Strong U.S. Economy

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

Silhouette Oil Pump On Field Against Sky During Sunset

Newsletter No. 98

Good afternoon,

It is Thursday, January 9, 2025, and this is a brand new edition of The Upside. As this update is being written, our hearts are heavy with the news coming from California. Our thoughts and prayers are with the people facing unimaginable hardship due to the ongoing wildfires. A state of emergency remains in effect for Los Angeles, where at least four fires are burning uncontrollably, causing widespread devastation. We extend our deepest sympathy and support to those who have lost loved ones, first responders, and communities affected, and we pray for the safety of everyone in harm's way. We pray for containment and that strength and resilience carry them through this crisis, and that help continues to reach those who need it most.

This Week's Headlines

2025 Vision: Goals, Oil & Gas, and Presidential Transitions on The Jay Young Show
Upcoming Webinar on the Future of Energy with John Mauldin
Oil Prices Rise on OPEC Cuts and Strong U.S. Economy
Oil Executives Expect Higher Natural Gas Prices in 2025
Alaska Sues Biden Over Oil Drilling Restrictions in Arctic Refuge
Kimbell Royalty Partners Buys $231M in Permian Basin Assets

HAPPENING AT KING

2025 Vision: Goals, Oil & Gas, and Presidential Transitions on The Jay Young Show

In this episode of The Jay Young Show, my co-host Jordan Soto and I reflected on our goals and vision boards for 2025. We shared insights on how we set actionable, meaningful objectives for both personal and professional growth. We also discussed the key steps for anyone looking to start building a business, including how to create a compelling business plan and, most importantly, how to ask for investment money. We broke down the process of pitching to potential investors, explaining what they look for in a business proposal and how to position ideas for success. Looking at current events, we jumped into some news of the day such as the ongoing California wildfires and the potential impact of presidential transitions on oil prices and policies. Watch on YouTube, Rumble, or directly on our website.

Episodes you might have missed
Here are some recent episodes to watch:

Jehangir Raja, a Wall Street veteran, hedge fund manager, and successful entrepreneur. WATCH
Floyd McLendon, former U.S. Navy Seal, a published author, and a sought-after motivational speaker. WATCH
Jason Morgan, a U.S. Air Force veteran whose incredible story of overcoming adversity has touched the lives of many. WATCH
Holiday episode: Memorable guests, Christmas favorites, and holiday memories. WATCH

Upcoming Webinar on the Future of Energy with John Mauldin
We are hosting an upcoming webinar on the Future of Energy: 2025 Energy Outlook, featuring King’s Chief Economist, John Mauldin, on Wednesday, January 15 at 2:30 PM CST. This webinar will discuss key trends and developments in the energy industry. If you’re interested in gaining insights into the future of energy or exploring potential partnership opportunities, this session could provide valuable information.

Register now to secure your spot: Register Here

Oil & Gas News

Oil Prices Rise on OPEC Cuts and Strong U.S. Economy

Oil prices went up after OPEC and Russia reported lower oil production in December. Brent crude hit $77.34 per barrel, and West Texas Intermediate rose to $74.65. Strong U.S. job market data, showing fewer layoffs and more job openings, also raised expectations for higher oil demand. While cold weather and worries about tougher U.S. sanctions on Iran helped support prices, some experts think oil may be too expensive right now and could drop if investors start selling. You can see the up-to-the-minute commodities numbers here.

Oil Executives Expect Higher Natural Gas Prices in 2025

Oil and gas executives predict the Henry Hub natural gas price will average $3.19 per MMBtu by the end of 2025, which is up from $2.62 per MMBtu expected for 2024. The prices are expected to rise gradually over the next few years, with some reaching around $4.16 per MMBtu by 2030.

Alaska Sues Biden Over Oil Drilling Restrictions in Arctic Refuge
Alaska is suing the Biden administration over limits on oil drilling in the Arctic National Wildlife Refuge. The state argues that new restrictions make it too hard to develop the land and will cut expected revenue. Governor Mike Dunleavy says the limits prevent Alaska from using its resources and keep the U.S. dependent on foreign oil. Alaska wants the court to block the government’s plans to auction the land for drilling.

Move to Watch

Kimbell Royalty Partners Buys $231M in Permian Basin Assets
Kimbell Royalty Partners is purchasing oil and gas rights in the Permian Basin for $231 million. The deal includes $207 million in cash and $24 million in company stock. The assets, located in West Texas, include 875 producing wells and cover 68,000 acres. These wells are expected to bring in nearly $31 million in cash flow next year. This acquisition helps Kimbell strengthen its position in the Permian, which is a key area for oil and gas production. The deal is expected to close in early 2025.

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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