Newsletter No. 60
Hello,
It is Thursday, April 4, 2024. We have a jam-packed edition of oil and gas news, including insights into what is happening at King. So, join me as I go through some of the latest developments.
This Week’s Headlines
- The Jay Young Show Interview with Carlton Dixon, Founder/CEO of Reveal Suits
- If You Missed Our Future of Energy Webinar
- Brent Nears $90, WTI Prices Surge in the Midst of Rising Geopolitical Tensions
- NM Oil and Gas Industry Condemns Biden’s Proposed “Tax” on Air Emissions
- Ukrainian Drones Target Russia’s Taneco Refinery
- Chevron Begins Oil Drilling in Venezuela with PDVSA Partnership
- SLB to Bolster Oil and Gas Portfolio with $7.8 Billion ChampionX Acquisition
Happening at King
The Jay Young Show Interview with Carlton Dixon, Founder/CEO of Reveal Suits
We just released this amazing episode of The Jay Young Show featuring entrepreneur Carlton Dixon, Founder and CEO of Reveal Suits.
A former high school basketball coach from South Dallas, Carlton shares his inspiring journey teaching himself the fashion industry after a vision to create custom suit linings representing players’ schools. From overcoming immense challenges with no prior experience, to landing major contracts with teams like Florida State and Baylor football, Dixon has collaborated with legends like Dirk Nowitzki on designs, and has dressed icons like Bill Russell for the Hall of Fame.
Carlton shares insights for other aspiring entrepreneurs and his vision for Reveal Suits’ future, helping clients “reveal” their stories.
You can also subscribe to The Jay Young Show on Apple or Spotify, and you can watch many of the episodes on YouTube.
If You Missed Our Future of Energy Webinar
King’s Chief Economist, John Mauldin, and Chief Growth Officer, Eric Rice conducted another “Future of Energy” webinar yesterday. If you missed it and are an accredited investor {current net worth of $1 million (not including primary residence) or who have made $200,000 ($300,000 if filing jointly) in the last two years and expect to make the same this year}, schedule a Zoom conversation with one of our SVPs here and we will also send you a recording of the webinar.
GLOBAL OIL & GAS NEWS
Brent Nears $90, WTI Prices Surge in the Midst of Rising Geopolitical Tensions
Oil prices reached a five-month peak, driven by concerns over Middle East tensions and OPEC’s decision to maintain production cuts. Geopolitical unrest in the region, coupled with supply disruptions from attacks on Russian refineries, contributed to the bullish outlook. Despite mixed U.S. inventory reports, with unexpected crude stockpile increases offset by strong fuel demand, both Brent (nearing $90 per barrel) and West Texas Intermediate (WTI) crude futures rose, indicating a tight market supporting the surge in oil prices. You can see the up-to-date numbers here.
NM Oil and Gas Industry Condemns Biden’s Proposed “Tax” on Air Emissions
The oil and gas industry in New Mexico criticized recent federal air pollution restrictions proposed by the Environmental Protection Agency, labeling them as a burdensome tax on energy producers. The proposed rule, aimed at charging high-emitting oil and gas facilities, drew opposition from industry leaders who argue it could jeopardize energy production and innovation. Meanwhile, the Bureau of Land Management finalized its methane waste rule, drawing support from conservation groups but raising similar concerns from the energy sector. Despite ongoing debates and regulatory changes, the industry defends its commitment to reducing emissions and maintaining rigorous environmental standards in oil and gas production on federal lands.
Ukrainian Drones Target Russia’s Taneco Refinery
Ukrainian drones struck Russia’s third-largest oil refinery, Taneco, located southeast of Moscow in Tatarstan. The attack targeted the primary refining unit of the refinery, with a capacity of 155,000 barrels per day, causing a fire that was quickly extinguished. Despite the attack, there were no reported injuries or significant damage, according to local officials. The ongoing drone attacks by Ukraine on Russian refineries have led to concerns about global oil prices, with estimates suggesting that these strikes have taken offline 14% of Russia’s total refining capacity, impacting around 900,000 barrels per day.
MOVES TO WATCH
Chevron Begins Oil Drilling in Venezuela with PDVSA Partnership
Chevron, in collaboration with Venezuela’s national oil company PDVSA, has launched its 2024 drilling campaign in Venezuela. The joint venture, known as Petroindependencia, has started drilling the first of 17 planned wells to increase production. This initiative is expected to raise Chevron’s output by 35% to about 250,000 barrels per day by next year. Despite political tensions, Chevron has U.S. authorization to operate in Venezuela, and crude oil trade is permitted until April 18.
SLB to Bolster Oil and Gas Portfolio with $7.8 Billion ChampionX Acquisition
Schlumberger (SLB) has agreed to acquire rival oilfield service provider ChampionX Corp. for $7.8 billion in an all-stock deal, aiming to enhance its portfolio amid aging shale fields in the U.S. The acquisition will strengthen SLB’s position in oil and gas production and recovery, particularly in emerging technologies like AI. The deal, expected to close by the end of 2024, will see ChampionX shareholders owning approximately 9% of SLB’s outstanding common stock. Additionally, SLB plans to return $7 billion to shareholders over the next two years.
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
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Digital Twin in Oil & Gas Market is Poised to Reach USD 912.1 Million by 2032
AI needs a lot of electricity — oil and gas will help
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
