Texas Oil and Gas Production Hits Records
Newsletter No. 51
Good morning,
It is Thursday, February 1, 2024. For yet another week, there is a ton of interesting oil and gas news. While I'd love to cover it all, our newsletter space is limited, so I am just going to jump right in with some of the highlights.
This Week's Headlines
Oil Sanctions' Return Threatens Venezuela's Finances and Fuel Supply
"Ask Jay" on Why Invest With King?
Texas Oil and Gas Production Hits Records Amid Tougher Regulations
Harvard Economist Predicts Prolonged Recovery for Oil Market
U.S. Oil Sanctions' Return Threatens Venezuela's Finances and Fuel Supply
The reinstatement of U.S. sanctions on Venezuela's oil and gas sectors poses a significant threat to the country's finances and fuel supply. The U.S. has ordered a wind-down of transactions with Venezuela's state miner, and stricter energy sanctions may be reimposed in April unless the government complies with an election agreement.
While previously eased sanctions had allowed Venezuela to boost oil revenue, a potential reversal in April could jeopardize economic gains and impact election prospects. The risks of fuel scarcity are expected to rise, even with certain authorizations for debt repayment deals. Despite reassurances from Venezuela's oil minister, concerns persist among companies planning investments.
Ask Jay
In this week's 'Ask Jay,' I continue the series of videos answering the question 'Why Invest in Oil and Gas?' and, more specifically, 'Why Invest With King?' You can watch this video to discover the fourth 'Why?'.
I filmed this video outside our hotel at the Tiger 21 Conference in Arizona that I attended with a couple of our SVPs. We had the opportunity to meet and listen to some amazing individuals, including a couple of former U.S. Presidents who emphasized the importance of bipartisanship in addressing many hot-button issues facing the world today, and making progress.
Texas Oil and Gas Production Hits Records Amid Tougher Regulations
Texas achieved record crude oil production in 2023, defying federal environmental regulations, according to the Texas Oil and Gas Association. The industry paid $26.3 billion in state and local taxes, employing over 480,000 Texans with an average yearly income of $124,000.
Despite federal efforts to curb emissions and offshore drilling, Texas outpaced the nation in oil and gas extraction, producing 5.6 million barrels a day in 2023. The state supplied 42% of the nation's oil, largely from the Permian Basin, an area we know well. Industry success is attributed to efficiency gains, sparking debate over the need for stricter regulations.
Harvard Economist Predicts Prolonged Recovery for Oil Market
Harvard economist Kenneth Rogoff is expecting a prolonged recovery for the oil and gas market due to the lasting impact of the pandemic's unprecedented shock. Energy prices have been on a rollercoaster, and while recent stabilization is observed, Rogoff sees continued volatility. The industry's chronic undersupply issue is expected to take years to address, with U.S. oil producers benefiting from rising crude demand.
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Recommended Reads
‘Grossly irresponsible’: UK hands out 24 new North Sea oil and gas licenses
Methane Rule Pits Texas Oil, Gas Industry Against White House
Gov. Landry wants to speed up Louisiana coastal projects
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
