Newsletter No. 90
Good afternoon,
It is Thursday, November 7, 2024 and here is another edition of The Upside where I bring you the latest updates on the oil and gas industry, including what’s happening here at King.
This Week's Headlines
- Europe Faces Energy Crisis as Wind Power Drops, Prices Skyrocket
- Texas Adds 1,700 Oil & Gas Jobs in September, Boosting Industry Growth
- Hurricane Rafael Threatens Gulf Oil Production
- Trump's Energy Policies: More Drilling, Sanctions, and Uncertain Oil Market
- Diamondback Energy Trades Assets for TRP's Midland Basin Land
- Elizabeth Gerbel of EAG Services on Transforming Consulting in Oil & Gas on The Jay Young Show
- The Rice Report: Interview with Dinesh D'Sousa
Global Oil & Gas News
Europe Faces Energy Crisis as Wind Power Drops, Prices Skyrocket
A drop in wind power this week has led to a sharp rise in electricity prices across Europe. Countries like the UK and Germany had to rely more on natural gas to meet power needs, driving up costs. In Germany, power prices reached their highest levels since the 2022 energy crisis. The UK saw wind power supply just 4% of its electricity at peak times, while natural gas made up more than 60%. Poland even declared a power emergency as storage levels of natural gas started to drop.
Texas Adds 1,700 Oil & Gas Jobs in September, Boosting Industry Growth
Texas added 1,700 upstream oil and gas jobs in September, continuing strong industry growth with 14,300 jobs added so far in 2024. Since the pandemic’s low point in 2020, the state has regained 53,700 upstream jobs. The sector has seen job increases in 31 of the past 36 months. Oil and gas jobs in Texas are among the highest-paying, with an average salary of $115,000.
Hurricane Rafael Threatens Gulf Oil Production
Hurricane Rafael is heading toward the U.S. Gulf of Mexico, forcing oil companies to shut down production and evacuate workers from offshore platforms. The storm could disrupt up to 4.9 million barrels of oil per day. Companies like BP, Chevron, and Shell are moving workers to safety and pausing some operations. If it hits hard, Rafael could be one of the most disruptive storms of the year, following Hurricane Francine, which caused major damage earlier in the season. It is already impacting oil prices, with West Texas Intermediate rising nearly 1% to $72 a barrel.
Trump's Energy Policies: More Drilling, Sanctions, and Uncertain Oil Market
Under a second Trump presidency, U.S. oil producers anticipate fewer regulations, potentially increasing supply and lowering prices. However, Trump's plans to impose more sanctions on Iranian and Venezuelan oil could tighten global supply, possibly driving prices higher. The future of the oil market remains uncertain, with mixed predictions for both supply and demand. You can see the up-to-the-minute commodities numbers here.
Move to Watch
Diamondback Energy Trades Assets for TRP's Midland Basin Land
Diamondback Energy is swapping some of its land in the Delaware Basin and paying $238 million for TRP Energy's land in the Midland Basin. The new land includes 15,000 acres and drilling locations with more potential for development. The deal, expected to close in December, helps Diamondback focus on areas with quicker growth opportunities.
HAPPENING AT KING
Elizabeth Gerbel of EAG Services on Transforming Consulting in Oil & Gas on The Jay Young Show
The Jay Young Show co-host Jordan Soto and I recently sat down with Elizabeth Gerbel, Founder and CEO of EAG Services, Incorporated, as she shared her inspiring journey of building EAG from the ground up, her strategic vision for EAG OneSource, Inc., and the leadership qualities that have driven her success in the consulting industry. If you missed our conversation, you can watch the replay now, along with other podcasts on YouTube, Rumble, or directly on our website.
macro-economic look
The Rice Report: Interview with Dinesh D'Sousa
In a recent special episode of The Rice Report, Eric Rice had the opportunity to interview Dinesh D'Souza to discuss his new film and book, Vindicating Trump, and election integrity.You can watch this and more episodes of The Rice Report on YouTube and Rumble.
Also, please let us know how we are doing at King Operating Corporation. Leave a review here.
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
