Reflecting on the Tragic Events of the Week

Newsletter No. 36

Good morning,

Hope everyone is doing well. As this week comes to a close, I want to ensure you are well-informed about the latest developments around the oil and gas industry, and at King Operating Corporation.

This Week’s Headlines

Tragic Events This Week in Israel
The Rice Report is Back
The Upside of the Exxon-Pioneer Deal
Ask Jay

Tragic Events This Week in Israel

It’s been a heart-wrenching week on the global stage. Our hearts go out to all those affected by the ongoing tragedy resulting from the war in Israel. We are praying for the lives lost and their families and we continue to hope for the restoration of peace and stability in the region as soon as possible.

This war has had far-reaching consequences, impacting various industries, including oil and gas. For safety reasons, Israel has temporarily suspended operations at the offshore Tamar gas field and is exploring alternative fuel sources. This decision also affects Israel’s trading partners, particularly Egypt, which has already experienced a 20 percent reduction in imports of Israeli gas.

The war has also impacted Israeli commercial ports. The port of Ashkelon has been closed, with substantial risks of Palestinian strikes targeting port infrastructure in Ashdod and Ashkelon.

In response to these developments, Chevron Mediterranean Limited, instructed by Israel’s Ministry of Energy, has temporarily shut down production at the Tamar Production Platform and will continue supplying its customers in Israel and the region from the Leviathan Production Platform, prioritizing safety.

The Rice Report is Back

King’s Chief Growth Officer Eric Rice talks about rising prices, inflation numbers and government spending in this week’s installment of The Rice Report. Watch it here.

The Upside of the Exxon-Pioneer Deal

In oil and gas news on the home front, the New York Times had an interesting story this week about the Exxon and Pioneer deal. The deal itself resonates with many of the principles I’ve discussed in my book, “The Upside of Oil and Gas Investing,” and closely aligns with the strategies we implement here at King Operating Corporation.

In the book I present the investment model for the oil and gas industry that’s a change from the traditional model. I also dissect the industry and talk about the pitfalls that investors could face when using the traditional model.

Exxon and Pioneer’s deal demonstrates a belief in the ongoing significance of fossil fuels and the opportunities for growth within the oil and gas sector. We acknowledge the demand for oil and gas and the potential for long-term profitability.

You can listen to my book here. Or, if you’d like for us to send you an autographed copy of my book, send your name and address to info@kingoperating.com.

Ask Jay

Recently, someone wrote in asking about the goal of an oil and gas fund. I give my thoughts in this week’s video.

A Fresh New Look

You may have noticed a new banner at the top of the newsletter this week. I’m excited to share our team has been hard at work, focusing on creating refreshed, more engaging designs. This new look is just the beginning of a comprehensive rebranding as we are working on more enhancements throughout King in our newsletters, on our website, in our emails, and more.

This makeover underscores our commitment to provide you with the most effective communication in a user-friendly format. We appreciate your support and look forward to your feedback as we continue to evolve and 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 SVP’s here and someone will reach out.