Newsletter No. 146
Good afternoon,
Let’s jump right in this week and take a look at what’s happening in the oil and gas industry. As we wrap up the year, I want to take a moment to wish you and your family a Merry Christmas and a happy, healthy New Year. In recognition of the holidays, this will be my final newsletter of 2025. We will be back in your inbox on January 8, 2026, with fresh insights and a strong start to the year ahead.
This Week's Headlines
- Steady Demand, Disciplined Supply Set the Backdrop for Producers in 2026
- Ohio’s Utica Shale Is Producing More Oil and Gas
- Baker Hughes and Hunt Oil Team Up to Extend Life of Aging Fields
- House Advances PERMIT Act to Streamline Energy Infrastructure Permitting
- Year-End Tax Strategies Investors Are Reviewing Now
- $6 Billion Bid Highlights Growing Value of U.S. Natural Gas Assets
Oil and Gas News
Steady Demand, Disciplined Supply Set the Backdrop for Producers in 2026
Entering 2026, oil and gas demand is expected to remain durable rather than speculative. Global oil consumption continues to grow modestly, supported by transportation, industrial use, and emerging markets, while years of capital discipline help limit oversupply. U.S. natural gas demand shows clearer upside, driven by LNG export growth, power generation, and rising electricity needs from data centers. With infrastructure expanding and supply growth measured, the demand outlook for 2026 provides a stable, fundamentally supported environment for well-positioned oil and gas producers.
 |
Ohio’s Utica Shale Is Producing More Oil and Gas
Ohio’s Utica Shale had a strong third quarter, with both oil and natural gas production increasing as more wells came online. Oil output jumped nearly 10%, and natural gas production also rose steadily. The growth is being supported by new drilling and major investment deals, including a large acquisition of Ohio assets by Infinity Natural Resources. Overall, the data shows the Utica is becoming a more productive and important energy region as we head into 2026.
Drone Attack Halts Lukoil Caspian Production
Ukraine says a drone strike on December 14 damaged an offshore drilling rig at Lukoil’s Grayfer field in the Caspian Sea, shutting down all 14 wells on the platform. The attack follows recent strikes on Lukoil’s Filanovsky and Korchagin fields, stopping production at several major offshore assets. The escalation shows Ukraine’s growing focus on Russian energy infrastructure in the strategically important Caspian region, even as peace talks are being explored.
Baker Hughes and Hunt Oil Team Up to Extend Life of Aging Fields
Baker Hughes and Hunt Oil Company have formed a partnership to evaluate and redevelop mature oil and gas fields around the world. By combining Baker Hughes’ advanced technologies and subsurface expertise with Hunt Oil’s global operating experience, the companies aim to extend the productive life of aging assets and unlock additional hydrocarbon value. With industry forecasts showing that the majority of global oil and gas production will soon come from mature fields, the collaboration highlights a growing focus on using technology and targeted investment to sustain production and improve recovery.
House Advances PERMIT Act to Streamline Energy Infrastructure Permitting
The U.S. House has passed the PERMIT Act, legislation aimed at speeding up energy and infrastructure projects by making federal permitting more predictable and less vulnerable to regulatory delays. The bill would clarify key Clean Water Act definitions, tighten review timelines, and limit prolonged legal challenges that can stall projects for years. Supporters say the reforms preserve water-quality protections while reducing uncertainty for developers. The measure now moves to the Senate for consideration, where its future will be debated as part of broader permitting reform efforts.
Happening at King
Year-End Tax Strategies Investors Are Reviewing Now
As the end of the year approaches, many investors are moving quickly to finalize their 2025 tax plans and consider last-minute investment decisions. Oil and gas investing remains a commonly used strategy due to its unique tax characteristics and potential tax benefits. In two recent articles I wrote for Forbes and Kiplinger, I outlined key year-end considerations for accredited investors, including recent policy updates tied to the One Big Beautiful Bill (OBBB). These updates expand planning opportunities around 100% equipment expensing, a permanent 20% Qualified Business Income (QBI) deduction and Section 179 provisions, all of which may play an important role as investors look to optimize their tax strategy before year-end.
Moves to Watch
$6 Billion Bid Highlights Growing Value of U.S. Natural Gas Assets
Energy investor Kimmeridge has submitted a $6 billion offer to acquire U.S. natural gas producer Ascent Resources, topping a contested $5.5 billion valuation tied to a proposed fund-to-fund transfer by its private equity backer, Energy & Minerals Group. The internal transaction has drawn legal challenges from fellow investors, including Abu Dhabi Investment Council and Mason Capital Management, who allege conflicts of interest and undervaluation. Kimmeridge’s bid introduces a higher-priced alternative, highlighting strong strategic interest in large-scale U.S. natural gas assets as demand fundamentals improve.
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.
All the best,
Jay
