Texas Break O&G Production Records

It is Thursday, August 22, 2024, and I am bringing you up to speed on all the recent news in the oil and gas sector, including some things happening here at King. Here we go with the latest developments.

Will Buffett Keep Supporting Occidental Petroleum?

Occidental Petroleum’s stock has dropped below $56, leading to questions about whether Warren Buffett’s company, Berkshire Hathaway, will step in to help like it has in the past. Berkshire, which owns nearly 30% of Occidental, usually buys more shares when the price dips below $60—a move that often boosts the stock. However, this time, Berkshire hasn’t made any new purchases, which is making some people wonder if Buffett is satisfied with what he already owns or if he’s changing his strategy. Investors are watching closely to see if Buffett will continue to back Occidental or if this signals a shift in his usual approach.

Texas Breaks Oil and Gas Production Records in July

In July, Texas set new records for oil and gas production, reaching all-time highs. The state pumped out 5.76 million barrels of oil per day and produced 32.8 billion cubic feet of natural gas daily. Texas also led in exporting energy products. This success is credited to Texas’s favorable rules and industry improvements, despite federal policies that some believe hinder oil and gas production.

Two Big U.S. Coal Companies to Merge in $5.2B Deal

Arch Resources and Consol Energy, two large U.S. coal companies, are merging to form a new company called Core Natural Resources in a deal worth $5.2 billion. Arch shareholders will get Consol stock in the exchange. Together, they’ll own 11 coal mines across six states, making them one of the biggest coal producers in North America. The merger is expected to save money and improve operations, but it comes as both companies are dealing with lower revenues due to the U.S. moving away from coal toward cleaner energy sources.

Surprise Oil Inventory Increase Puts Pressure on Prices

U.S. crude oil inventories unexpectedly rose by 347,000 barrels last week, surprising experts who expected a big drop. This has added pressure on oil prices, which had already fallen over the past week. Gasoline and distillate stocks, such as diesel fuel, heating oil and jet fuel, also decreased, with gasoline supplies now 3% below average for this time of year. Despite these changes, oil prices went up slightly on Tuesday but are still lower than they were a week ago. You can see the up-to-the-minute numbers here.

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