Oil production looks to dip lower toward end of 2023!

Newsletter No. 22

Good morning!

Hope everyone had a great week last week. 


Today’s Headlines

  • Volleyball and a Quick Trip to Chicago

  • Alzheimer’s Fundraiser in September

  • U.S. Oil Production Set to Decrease in the 2nd Half of 2023

  • Deal of the Week: Ovintiv Closes Midland Basin Deal for Over $4B

  • Well of the Week: The Willow Project


Volleyball and a Quick Trip to Chicago

Hope everyone had a great 4th of July week and that all were able to see what could be accomplished over a nice holiday.


My family took a trip to Chicago and had a great time. We went for a volleyball tournament, but were able to get in some of the sights of Chicago as well.


My youngest daughter, Mikala, played in her volleyball team’s final club tournament for the year in the 17-year-old division. 


They came up a little short, tying for fifth place, but they played hard and there was some great competition. Even the teams that weren’t on our radar turned out to be some of the teams that provided the fiercest competition. As a matter of fact, the team that won was ranked twelfth going into the tournament.  


We then had time to go to the famous Wrigley Field for a Cubs game. We rode the subway to the game and after a five-hour rain delay, the game finally started.


What a great history Wrigley Field has as one of America’s most storied major league ballparks. Seeing the field for the first time is absolutely breathtaking. It was a great experience and I understand why baseball lovers enjoy that stadium so much.  


Have you been to any historic baseball fields? If so, what were some of the things you remember the most about them? What made them special? 


We planned to go to a White Sox game, too, but it was raining and after being rained on during the Cubs game on Sunday, we decided we should wait until the weather would hopefully be clearer on our next trip. It was also a little chilly, not like the Texas heat we are currently experiencing here in the Dallas area. 



Alzheimer’s Fundraiser in September

So, there was some great news in medical research, according to the Alzheimer’s Association. It was announced that the FDA has granted full approval of the drug, Leqembi, the first Alzheimer’s drug to slow the disease. This comes after an accelerated approval was granted earlier this year. 


This is quite the breakthrough in the fight against Alzheimer’s. This type of drug trial and research is made possible by the wonderful generosity and dedication of so many people. I have been lucky to be a part of the Alzheimer’s Association here in Dallas.


I am lucky to be a member of the Alzheimer’s Association Committee and we have our great annual golf event coming up.


This year’s golf event will be September 17-18, 2023, and will be celebrating its 35th year.


Golf broadcasters Jim Nantz and David Faherty will be on hand for the event, with all money raised going toward Alzheimer’s research and family support. There will be amazing auction items to bid on! The event has consistently raised over $200,000 for the last 10 years.


To learn more or to get involved with a sponsorship, click here.



U.S. Oil Production Set to Decrease in the 2nd Half of 2023

Oil and gas production trended higher in April in a delayed response to the high prices in the middle of 2022 after Russia invaded Ukraine.


The fall in prices and drilling rates in late 2022, some say, look to reduce production in the second half of 2023. This could tighten markets for both oil and gas into 2024. U.S. production historically responds to a change in prices with an average lag of around 12 months, so the April 2023 prices are more a reflection of high prices in mid-2022. 


On the oil price side, prices rose about 3% to a nine-week high this week. This is likely over supply concerns and fears that more interest rate hikes could reduce the demand for oil as economic growth is slowed. 


If history stays true, that will mean a rise in production in mid-2024.



Deal of the Week: Ovintiv Closes Midland Basin Deal for Over $4B

North American E&P company, Ovintiv Inc., closed the purchase of core Midland Basin assets. This purchase added close to 1,050 net 10,000-foot well locations and 65,000 net acres of undeveloped land near the company’s existing Permian operations.

Ovintiv purchased the leasehold interest and related assets of Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources in a cash and stock transaction valued at a whopping $4.275 billion.



Well of the Week: The Willow Project

ConocoPhillips won a huge victory this week against the Alaska Oil and Gas Conservation Commission. A judge ruled that the company could keep oil well data from its Willow discovery secret from its competitors.


The Willow Project is a drilling project in the National Petroleum Reserve in Alaska. Oil was discovered in 2016 in the prospect area west of Alpine, Alaska and in 2020, the Bureau of Land Management approved the company’s roughly $7 billion development project. The project allows ConocoPhillips to drill for oil on public land in Alaska.


The full project had been initially approved by the Trump Administration, but a federal judge in Alaska reversed that decision in 2021. In March of this year the project got new life when the Interior Department approved a version of the project including three drill sites instead of the five the company originally wanted and less surface infrastructure.


The project has faced several legal challenges, including a lawsuit filed earlier this year by the environmentalist organization, Earthjustice, to stop the project. In April, a federal judge denied Earthjustice’s request for a preliminary injunction, ruling in favor of ConocoPhillips.


The Willow Project area is believed to hold up to 600 million barrels of oil. It would still take years to reach the market considering it still needs to be construct, but the company believes this project could deliver up to $17 billion in revenue for the federal and state government, and local communities in Alaska. That’s a nice bit of revenue!

Recommended Reads

Shell CEO calls it ‘irresponsible’ to cut oil production now

Big Oil Revives Offshore Exploration

Climate groups accept millions from charity linked to fossil fuel investments

There are some outstanding results developing in the current program… KOPX Program 4. If you are not in it, and you are accredited, it’s a good time to have a conversation! You can schedule a Zoom here.

 All the best,