Newsletter No. 145
Good afternoon,
Let's jump right in this week and take a look at what’s happening in the oil and gas industry.
This Week's Headlines
- U.S. Crude Inventories Drop Again, Giving Oil Prices a Lift
- Federal Freeze on Solar & Wind Permits Creates Tailwinds for U.S. Oil & Gas Producers
- EIA: Natural Gas Prices Could Jump This Winter as Cold Weather and LNG Demand Tighten Supply
- Upcoming Webinar: Year-End Tax Play: How Accredited Investors are Leveraging Oil & Gas
- New Podcast: Cole Green Talks Rig Life, Landman and Leading a Modern Oilfield Co.
- Inside the Oilfield: Talking Drilling Slowdowns, Supply and ‘Landman’ Accuracy on WILK
- Chevron Boosts 2026 Shale Spending, Doubling Down on the Permian
- Shell Nearing $3 Billion Deal to Buy LLOG, Boosting Its Gulf of America Power
Oil and Gas News
U.S. Crude Inventories Drop Again, Giving Oil Prices a Lift
U.S. crude inventories dropped by 4.8 million barrels, a sign of tightening supply that helped lift oil prices on Wednesday. The Strategic Petroleum Reserve saw a small increase while overall U.S. production stayed steady at 13.815 million barrels per day. Gasoline and distillate inventories rose, but storage at the key Cushing hub fell nearly 900,000 barrels, adding to the sense of tightening supply. These shifts contributed to an upward push in oil market sentiment.
Federal Freeze on Solar & Wind Permits Creates Tailwinds for U.S. Oil & Gas Producers
The Trump Administration has all but stopped approving new solar and wind projects on federal land this year, reversing Biden-era policies that fast-tracked clean energy. Since January, only one solar project has been approved, and none since July, when a new rule required the Interior Secretary to personally sign off on every wind and solar project.
For oil and gas producers, this slowdown in competing energy sources reduces near-term pressure from renewables and strengthens demand for traditional fossil fuels, especially as utilities and industries lean more heavily on reliable oil and natural gas. With renewable growth stalling, the energy market tilts more favorably toward oil and gas operators in the short to medium term.
EIA: Natural Gas Prices Could Jump This Winter as Cold Weather and LNG Demand Tighten Supply
Federal energy forecasters say natural gas prices at Henry Hub could rise well above $4 this winter, driven by stronger-than-expected cold weather and surging demand from U.S. LNG export facilities. Early December cold snaps already pushed spot prices above $5, and LNG shipments are running near record highs, helping support higher pricing. The EIA expects gas prices to stay firm into 2026 as exports grow and data centers add new long-term demand. While increased production and milder weather later in 2026 could help cool prices somewhat, the overall setup points to a strong winter market for natural gas.
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Happening at King
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New Podcast: Cole Green Talks Rig Life, Landman and Leading a Modern Oilfield Co.
In this week’s episode of The Jay Young Show, my co-host Jordan Soto and I sit down with Cole Green with MCG Drilling, a multi-generational Texas drilling company rooted in the 1970s. From building rigs as a kid to running operations across Texas, Louisiana, Oklahoma, New Mexico and Kentucky, Cole brings real-world oilfield experience and industry perspective. You may also recognize him from Season 2 of Paramount+’s Landman, where his crew and equipment helped bring the show’s rig scenes to life.
Watch it on LinkedIn, Rumble and YouTube (@JayRYoungOfficial).
Inside the Oilfield: Talking Drilling Slowdowns, Supply and ‘Landman’ Accuracy on WILK
I recently was interviewed by Bob Cordaro at WILK NewsRadio in Wilkes-Barres, PA for a look into today’s energy landscape. I also discussed the culture of the oilfield, how shows like Landman compare to real life, and what it was like growing up riding around with my grandfather checking pumping units.
Listen to the interview here: https://www.youtube.com/watch?v=B7SqgBnhbec
Move to Watch
Chevron Boosts 2026 Shale Spending, Doubling Down on the Permian
Chevron plans to spend nearly $6 billion next year on U.S. shale drilling, mostly in the Permian Basin, which already accounted for more than half of its U.S. activity in 2025. The company is directing about one-third of its entire $17 billion upstream budget toward shale, part of a strategy to focus on high-return and efficient projects that boost cash flow and earnings.
Overall U.S. spending will hit $10.5 billion, and Chevron expects to produce more than 2 million barrels of oil equivalent per day in 2026. Analysts say the plan reinforces Chevron’s long-term approach: disciplined spending, higher returns and prioritizing top-quality shale assets. With 210 Permian wells drilled in 2025, the region remains Chevron’s main growth engine heading into 2026
Shell Nearing $3 Billion Deal to Buy LLOG, Boosting Its Gulf of America Power
Shell is close to buying LLOG Exploration, a major private oil and gas company in the Gulf of America, for more than $3 billion. The deal isn’t final yet, but sources say it could be completed by the end of the year.
LLOG currently produces about 30,000 barrels of oil and gas per day, and that number is expected to grow in the coming years. Shell already has a big presence in the Gulf, and buying LLOG would strengthen its portfolio with valuable deepwater assets. Overall, Shell appears to be using strategic acquisitions like this one to expand its oil and gas production in the U.S. Gulf region.
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.
All the best,
Jay
