U.S. Set to Break Production Records

Newsletter No. 48

Good morning,

It is Thursday, January 11, 2024, or as I was recently made aware, “National Milk Day.” I am bringing you your weekly dose of insights and updates straight from the pulse of the oil and gas industry. In this edition of The Upside, we will be navigating the changing landscapes, delivering a comprehensive roundup of the latest news, trends, and experienced perspectives. Whether you are a seasoned professional or new to the world of oil and gas, I hope The Upside will be your go-to source for staying in the know.

This Week’s Headlines

  • U.S. Set to Break Oil and Gas Production Records Despite Shale Slowdown

  • Oil Industry is on Alert as Middle East Violence Threatens Supply Disruptions

  • “Ask Jay” on Why Invest at King?

U.S. Set to Break Oil and Gas Production Records Despite Shale Slowdown

The U.S. government’s Energy Information Administration recently forecast record-breaking crude oil and natural gas production in 2024 and 2025, defying concerns over the shale revolution’s decline. Despite a drilling slowdown, average oil production is expected to reach 13.4 million barrels per day in 2025, highlighting the lasting impact of the shale boom. However, industry concerns arise over potential delays in export licenses and restrictions on leases, with accusations that the current administration is sowing the seeds of a future energy crisis. For oil and gas operating companies, the forecast record-breaking production levels could present some opportunities.

  1. Revenue and Profit Potential: Increased production levels mean potential for higher revenues and profits for oil and gas companies. 

  2. Export Growth: The growth in liquefied natural gas (LNG) exports, as forecasted, provides opportunities for oil and gas companies to expand their global market reach. This could lead to increased export-related business activities.

But, it also could pose some challenges.

  1. Slowdown in Production Growth: The forecast suggests a slowdown in the pace of oil production growth due to diminishing prime acreage and a focus on shareholder returns over new drilling campaigns.

  2. Administration Policies: The current administration’s policies, including restrictions on approving leases and a push for a transition from the oil industry, may lead to increased scrutiny and challenges for oil and gas companies. 

So, while there are opportunities for investors in the oil and gas sector, it’s essential to navigate the challenges posed by geopolitical uncertainties and changing energy landscapes. That’s why I want to do my best to keep you informed on all of this, because diversification and staying informed will be key strategies for investors to manage risks effectively.

Oil Industry is on Alert as Middle East Violence Threatens Supply Disruptions

CEO of the American Petroleum Institute, Mike Sommers, expresses concern over escalating violence in the Middle East impacting oil supplies, citing attacks on tankers and the Israel-Hamas conflict. Despite the turmoil, U.S. oil prices remain stable due to robust domestic production. This could mean opportunities for investors coming in the form of the stability in U.S. oil prices, continued production records, and potential increased global oil demand. 

Ask Jay

In this week’s “Ask Jay,” I wanted to start a 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 find out the first “Why?” 

As always, 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. 

Also, please let us know how we are doing at King Operating Corporation. Leave a review here.

In the News

Recent interview with WJR Detroit discussing how oil prices could reach $100 a barrel in 2024 if OPEC+ members fulfill pledges for voluntary cuts.


Recommended Reads

Russia’s Oil Drilling Boom Proves Moscow’s Resilience to Western Sanctions

US oil lobby launches eight-figure ad blitz amid record fossil fuel extraction

Biden’s Oil Policies Threaten the Next Energy Crisis, Trade Group Warns

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,