John Williamson

𝙀𝙭𝙭𝙤𝙣 𝙈𝙤𝙗𝙞𝙡 𝙎𝙚𝙩 𝙩𝙤 𝙎𝙚𝙘𝙪𝙧𝙚 𝙁𝙏𝘾 𝘼𝙥𝙥𝙧𝙤𝙫𝙖𝙡 𝙛𝙤𝙧 𝙋𝙞𝙤𝙣𝙚𝙚𝙧 𝙉𝙖𝙩𝙪𝙧𝙖𝙡 𝙍𝙚𝙨𝙤𝙪𝙧𝙘𝙚𝙨 𝘼𝙘𝙦𝙪𝙞𝙨𝙞𝙩𝙞𝙤𝙣 ExxonMobil's impending $60 billion acquisition of Pioneer Natural Resources Company, making it the largest oil and gas producer in the Permian Basin, is expected to receive approval from the U.S. Federal Trade Commission (FTC). The approval comes with the condition that Pioneer’s co-founder, Scott Sheffield, will not join Exxon's board due to concerns about his previous attempts to influence oil pricing and output. The decision, likely announced soon, follows scrutiny over Sheffield's advocacy for Texas oil production caps and his indirect involvement in a lawsuit alleging collusion with OPEC. Despite this, Exxon aims to boost its production in the Permian Basin significantly, from 600,000 barrels last year to about 2 million by 2027. This deal is part of a broader industry consolidation that the FTC is monitoring closely, especially under the leadership of Lina Khan and amidst political pressures related to energy prices and environmental impacts. Exxon plans to reduce Pioneer's emissions to net zero by 2035, enhancing its sustainability commitments. https://lnkd.in/gVWKJ7CD

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𝙊𝙞𝙡 𝙀𝙭𝙚𝙘𝙪𝙩𝙞𝙫𝙚𝙨 𝙋𝙧𝙚𝙙𝙞𝙘𝙩 𝙐𝙎 𝙋𝙧𝙤𝙙𝙪𝙘𝙩𝙞𝙤𝙣 𝘿𝙞𝙥 𝙄𝙛 𝘼𝙘𝙦𝙪𝙞𝙨𝙞𝙩𝙞𝙤𝙣 𝙎𝙥𝙧𝙚𝙚 𝘾𝙤𝙣𝙩𝙞𝙣𝙪𝙚𝙨 Energy executives are sounding the alarm on the future of US oil production. The latest quarterly survey by the Federal Reserve Bank of Dallas, which polls around 140 energy firm executives in Texas, northern Louisiana, and southern New Mexico, reveals a growing concern about the impact of mergers and acquisitions (M&A) on oil output. 𝑲𝒆𝒚 𝑰𝒏𝒔𝒊𝒈𝒉𝒕𝒔:  1. 𝑪𝒓𝒖𝒅𝒆 𝑪𝒐𝒏𝒔𝒐𝒍𝒊𝒅𝒂𝒕𝒊𝒐𝒏 𝑪𝒐𝒏𝒄𝒆𝒓𝒏𝒔:    ↳ Over half of the surveyed US oil executives believe that the ongoing wave of M&A could lead to a decline in US oil production if the trend continues.    ↳ The first quarter of 2024 alone saw more than $50 billion in M&A deals, following last year’s $192 billion in deals, including ExxonMobil’s $60 billion takeover of Pioneer Natural Resources Company. The majority of these deals involved assets in the Permian Basin, the highest-producing oil field in the US.  2. 𝑷𝒓𝒆𝒅𝒊𝒄𝒕𝒆𝒅 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑰𝒎𝒑𝒂𝒄𝒕:    ↳ 48% of executives surveyed expect US oil output to be “slightly lower” over the next five years due to continued industry consolidation, while 6% foresee a “significantly lower” production.    ↳ One executive commented, “The last few years of mergers and acquisitions have decreased activity in the oil patch. The majors will not exhaust reserves to raise domestic production until supply and demand curves meet their goals.”  3. 𝑽𝒆𝒏𝒅𝒐𝒓 𝑴𝒂𝒓𝒌𝒆𝒕 𝑺𝒒𝒖𝒆𝒆𝒛𝒆:    ↳ Another executive predicted that consolidation among oil and gas operators is squeezing the over-supplied vendor market for services, potentially leading to consolidation or extensive bankruptcies among vendors to rightsize the market.  𝑺𝒕𝒂𝒍𝒆 𝑺𝒉𝒂𝒍𝒆: ↳ Despite these concerns, oil and gas production remained essentially unchanged in the second quarter. The U.S. Energy Information Administration expects oil output to grow by around 310,000 barrels per day to 13.2 million this year, significantly less than the 1 million per day increase last year. 𝑾𝒉𝒂𝒕’𝒔 𝒏𝒆𝒙𝒕? If the M&A spree continues, the US oil industry could face reduced production levels, impacting supply and potentially leading to higher prices. The market dynamics are shifting, and the next few years will be critical for the industry’s future. 𝐏.𝐒. What are your thoughts on the impact of mergers and acquisitions on the oil and gas sector? Comment below! https://lnkd.in/g4je2c2h

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𝙏𝙚𝙭𝙖𝙨 𝘼𝙙𝙫𝙖𝙣𝙘𝙚𝙨 𝙀𝙣𝙚𝙧𝙜𝙮 𝙎𝙚𝙘𝙪𝙧𝙞𝙩𝙮 𝙬𝙞𝙩𝙝 $10 𝘽𝙞𝙡𝙡𝙞𝙤𝙣 𝙀𝙣𝙚𝙧𝙜𝙮 𝙁𝙪𝙣𝙙 The Public Utility Commission of Texas has finalized regulations for the Texas Energy Fund, a $10 billion initiative designed to promote the development of new natural gas power plants. This move aims to bolster on-demand electricity generation capacity in response to the state's rapidly increasing energy demands, projected to nearly double by 2030. Under the new rules, projects completed before June 1, 2026, are eligible for a reimbursement of approximately 10% of construction costs, with a slightly lower rate of 6.7% for projects completed by June 1, 2029. The program also includes government-backed, low-interest loans to further incentivize investment, with major developers like NRG Energy, Vistra Corp., and Calpine indicating their participation. This strategic policy shift underscores Texas’ commitment to ensuring a reliable energy supply while balancing its growing reliance on renewable resources. The fund, however, has sparked debate regarding its focus on fossil fuels and the exclusion of solar and wind projects, highlighting the ongoing discussion about the best path forward for energy policy in Texas. #EnergyPolicy #NaturalGas #RenewableEnergy #Texas #PublicUtilityCommission https://lnkd.in/gDwZNq4t

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𝙏𝙚𝙭𝙖𝙨 𝙇𝙉𝙂 𝘽𝙧𝙤𝙬𝙣𝙨𝙫𝙞𝙡𝙡𝙚 𝙇𝙇𝘾 𝘼𝙙𝙫𝙖𝙣𝙘𝙚𝙨 𝙬𝙞𝙩𝙝 𝙎𝙞𝙜𝙣𝙞𝙛𝙞𝙘𝙖𝙣𝙩 𝙊𝙛𝙛𝙩𝙖𝙠𝙚 𝘼𝙜𝙧𝙚𝙚𝙢𝙚𝙣𝙩 𝙛𝙤𝙧 𝙇𝙉𝙂 𝙀𝙭𝙥𝙤𝙧𝙩 𝙏𝙚𝙧𝙢𝙞𝙣𝙖𝙡 Texas LNG Brownsville LLC, a subsidiary of Glenfarne Energy Transition, LLC, has reached a pivotal milestone by securing another off-take agreement, reinforcing its path to a final investment decision (FID) for its 4 MTPA LNG export facility at the Port of Brownsville, Texas. This latest agreement, coupled with prior commitments from leading entities like EQT Corporation, Gunvor Group, and Macquarie Group, highlights Texas LNG's role in the global energy transition and marks it as the lowest emitting LNG facility in the U.S. Brendan Duval, CEO of Glenfarne Energy Transition, expressed gratitude for the diverse and robust customer base, which bolsters the project's finance ability. With a commitment to environmental stewardship, Texas LNG continues to attract significant global investment, supporting the broader energy transition movement. #EnergyTransition #LNG #Sustainability #InvestmentInEnergy https://lnkd.in/gfqYa_ng

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Energy Transfer is set to expand its presence in the Permian Basin by acquiring WTG Midstream Holdings for $3.25 billion. This acquisition, announced on May 28, is part of a broader trend in the midstream sector aimed at reducing costs and gaining access to key oil and gas regions, including the U.S. Gulf Coast export facilities. The deal, which is expected to close in the third quarter of 2024, includes $2.45 billion in cash and 50.8 million newly issued Energy Transfer shares. Diamondback Energy, which holds a 25% stake in WTG, will receive about $375 million from this transaction. WTG's assets include a 6,000-mile pipeline network, eight processing plants with a total capacity of 1.3 billion cubic feet per day, and two additional plants under construction. The acquisition also encompasses a 20% interest in the 425-mile BANGL Pipeline, enhancing connectivity from the Permian Basin to the Texas Gulf Coast. Energy Transfer expects the WTG assets to boost distributable cash flow per share by nearly $0.04 in 2025, growing to $0.07 per share by 2027. This acquisition follows Energy Transfer's recent purchases of Crestwood Equity Partners, Lotus Midstream, and NuStar Energy L.P., further solidifying its position in the industry. The company is also one of three considering building a deepwater port along the Texas coast and anticipates receiving a draft Environmental Impact Statement for its offshore terminal this quarter. https://lnkd.in/gqB93vaF

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𝘿𝙚𝙫𝙤𝙣 𝙀𝙣𝙚𝙧𝙜𝙮 𝙎𝙚𝙖𝙡𝙨 $5 𝘽𝙞𝙡𝙡𝙞𝙤𝙣 𝘿𝙚𝙖𝙡 𝙛𝙤𝙧 𝘽𝙖𝙠𝙠𝙚𝙣 𝙊𝙞𝙡 𝘼𝙨𝙨𝙚𝙩𝙨 𝙞𝙣 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙞𝙘 𝙈𝙤𝙫𝙚 Devon Energy has entered a significant phase of expansion with its recent $5 billion acquisition of Bakken oil assets from Grayson Mill Energy, highlighting a strategic shift in the energy sector. This deal, comprising $3.25 billion in cash and $1.75 billion in stock, marks Devon's commitment to enhancing its asset base amidst a wave of mergers and acquisitions sweeping across the US shale landscape. The purchase comes at a crucial time for Devon, who had faced pressures to make a substantial acquisition or risk becoming a takeover target. Analysts emphasize the necessity of this move to safeguard the company's future as industry consolidation continues to accelerate. This strategic acquisition positions Devon Energy robustly within the competitive market, ensuring its growth trajectory amid evolving industry dynamics. #Energy #OilAndGas #MergersAndAcquisitions #DevonEnergy #Bakken #USShale #IndustryNews #BusinessStrategy #EnergySector https://lnkd.in/ghmDFVbH

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𝘿𝙚𝙘𝙡𝙞𝙣𝙚 𝙞𝙣 𝙉𝙖𝙩𝙪𝙧𝙖𝙡 𝙂𝙖𝙨 𝙁𝙡𝙤𝙬𝙨 𝙩𝙤 𝙎𝙖𝙗𝙞𝙣𝙚 𝙋𝙖𝙨𝙨: 𝙄𝙢𝙥𝙖𝙘𝙩 𝙤𝙣 𝙐.𝙎. 𝙂𝙖𝙨 𝙋𝙧𝙞𝙘𝙚𝙨 Natural gas flows to Cheniere Energy, Inc., Sabine Pass LNG L.P. export facility in Louisiana are poised to hit an 11-month low, significantly impacting U.S. benchmark gas prices. According to LSEG data, flows are expected to decrease to 3.4 billion cubic feet per day, down from recent highs. This reduction is primarily due to decreased demand rather than planned maintenance, which is next scheduled for June 25. This decrease in export volumes has contributed to a 6% drop in Henry Hub gas prices this week. The higher domestic availability of natural gas is linked to the lower export flows. Additionally, natural gas-fired electricity generation in the U.S. has increased this year due to higher temperatures and rising power demand from data centers. Regionally, natural gas deliveries to LNG terminals in South Louisiana declined by 5.4%, while those in South Texas increased by 3.6%. The fluctuating supply levels are likely to influence international LNG prices, though Asia's spot LNG prices have remained stable this week. https://lnkd.in/g2y8k6sP

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𝙕𝙖𝙘𝙝𝙧𝙮 𝙃𝙤𝙡𝙙𝙞𝙣𝙜𝙨 𝙁𝙞𝙡𝙚𝙨 𝙛𝙤𝙧 𝘽𝙖𝙣𝙠𝙧𝙪𝙥𝙩𝙘𝙮 𝘼𝙢𝙞𝙙 𝘾𝙝𝙖𝙡𝙡𝙚𝙣𝙜𝙚𝙨 𝙖𝙩 𝙂𝙤𝙡𝙙𝙚𝙣 𝙋𝙖𝙨𝙨 𝙇𝙉𝙂 𝙋𝙧𝙤𝙟𝙚𝙘𝙩 Zachry Holdings, the lead contractor for QatarEnergy and ExxonMobil's jointly owned $10 billion Golden Pass LNG project in Texas, has filed for Chapter 11 bankruptcy protection. This decision follows significant cost challenges and payment disputes at the site, which is crucial for expanding U.S. LNG exports. Exxon, holding a 30% stake, plans to review the construction timeline and ensure project completion. Originally set for initial LNG production in the first half of 2025, the project's future faces uncertainty. The U.S. remains the largest LNG exporter, with Golden Pass LNG being one of the major projects expected to bolster this position. Zachry Holdings faced cost overruns and funding issues. Exxon committed to supporting project completion. The project's initial LNG production was targeted for early 2025. #LNG #EnergyTransition #Bankruptcy #ProjectManagement #NaturalGas #ExxonMobil #QatarEnergy https://lnkd.in/gfRUCZD2

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𝙁𝙀𝙍𝘾 𝙎𝙪𝙥𝙥𝙤𝙧𝙩𝙨 𝙑𝙚𝙣𝙩𝙪𝙧𝙚 𝙂𝙡𝙤𝙗𝙖𝙡 𝙇𝙉𝙂 𝘼𝙢𝙞𝙙 𝙀𝙦𝙪𝙞𝙥𝙢𝙚𝙣𝙩 𝙄𝙨𝙨𝙪𝙚𝙨 In a recent report, the Federal Energy Regulatory Commission (FERC) confirmed that Venture Global LNG has effectively addressed equipment issues at its Louisiana gas-processing plant, Calcasieu Pass. This affirmation supports the company's stance that it has not yet completed plant commissioning, which has delayed LNG deliveries to long-term customers for two years. Venture Global is involved in several arbitration cases with major customers like Shell, bp, and ORLEN S.A., who argue the company has financially benefited while citing the plant's non-operational status as a reason for withholding LNG cargoes. Despite the controversy, Venture Global is poised to become the second-largest LNG exporter in the U.S. by the end of the year as it ramps up production at another facility in Louisiana. #EnergySector #LNG #FERC #VentureGlobalLNG #BusinessNews https://lnkd.in/grd6EMd7

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“Woodside Energy Seeks Strategic Partners for Driftwood LNG Project, Eyeing Upstream Gas Expertise” Insights: 1. Strategic Acquisition of Tellurian: • Woodside Energy’s planned acquisition of Tellurian for $1.2 billion positions the company to take over the Driftwood LNG project in Louisiana, enhancing its footprint in the U.S. LNG market. 2. Focus on Partner Selection: • CEO Meg O’Neill emphasizes the importance of selecting the right partners for the Driftwood project, stating that Woodside has received significant interest from potential partners, allowing them to be selective in their collaborations. 3. LNG Project Overview: • Driftwood LNG is a fully permitted project aiming for a final investment decision (FID) by Q1 2025. The development plan includes five trains with a total capacity of 27.6 million tonnes per annum, significantly boosting Woodside’s LNG portfolio. 4. Understanding the U.S. Gas Market: • Woodside is particularly interested in partners that can provide insights into the U.S. onshore gas market to ensure a reliable and affordable supply of gas for the LNG plants, recognizing the complexities of the shale gas landscape. 5. Cautious Approach to Upstream Investment: • While Woodside acknowledges the importance of upstream connections, O’Neill stated that the company has no immediate plans to enter the upstream sector, citing the distinct skills required for U.S. shale gas operations compared to their existing capabilities. 6. Capital Allocation and Returns: • Woodside is confident that Driftwood LNG can meet its capital allocation framework returns, leveraging its strengths in project execution and operations to optimize asset value. 7. Environmental Considerations: • The Driftwood project is expected to contribute to reducing the average emissions intensity of Woodside’s LNG portfolio, aligning with broader sustainability goals. 8. Project Advantages: • O’Neill describes Driftwood LNG as a “truly advantaged” opportunity due to its fully permitted status and the involvement of Bechtel as the engineering, procurement, and construction contractor, which adds credibility to the project’s execution. 9. Market Positioning: • If successful, the Driftwood project will position Woodside as a key independent player in the global LNG market, with strategic exposure to both the Atlantic and Pacific basins, enhancing its competitive advantage. 10. Potential for Future Cash Generation: • The project is anticipated to generate significant future cash flow, contributing to Woodside’s financial health and supporting its growth strategy.

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𝘽𝙋 𝙖𝙣𝙙 𝘽𝙞𝙜 𝙊𝙞𝙡'𝙨 𝙍𝙚𝙩𝙪𝙧𝙣 𝙩𝙤 𝙂𝙪𝙡𝙛 𝙤𝙛 𝙈𝙚𝙭𝙞𝙘𝙤 𝙀𝙭𝙥𝙡𝙤𝙧𝙖𝙩𝙞𝙤𝙣 Over a decade after the Deepwater Horizon disaster, bp is poised to resume its pioneering role in the Gulf of Mexico, planning to develop the Kaskida oilfield, among others. This move signals a bold return to deepwater drilling in an area that still haunts the environmental record of the industry. BP's initiative comes at a time when technological advancements have overcome previous barriers, enabling the exploitation of high-pressure, high-temperature oil reservoirs that were once deemed untouchable. The resurgence in Gulf oil exploration by major players like BP, Chevron, and Shell is set to boost the region's output significantly, potentially adding 500,000 barrels per day. However, this revival occurs amidst a complex backdrop of global climate policy pressures and the U.S.'s ongoing high oil production, which complicates the transition to renewable energy. The developments carry both immense economic potential and environmental risk, demanding stringent oversight to ensure that past mistakes are not repeated. This scenario reflects the broader tension between continuing fossil fuel reliance and the urgent need for sustainable energy solutions. #EnergySector #OilAndGas #SustainableEnergy #EnvironmentalImpact #GulfOfMexico https://lnkd.in/g89mDyVS

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𝙏𝙚𝙭𝙖𝙨 𝙎𝙩𝙚𝙥𝙨 𝙐𝙥 𝙉𝙖𝙩𝙪𝙧𝙖𝙡 𝙂𝙖𝙨 𝙋𝙤𝙬𝙚𝙧 𝙋𝙡𝙖𝙣𝙩 𝘿𝙚𝙫𝙚𝙡𝙤𝙥𝙢𝙚𝙣𝙩 In response to the heightened demand for reliable energy, Texas is significantly ramping up its infrastructure with a strong push toward natural gas power plants. Fueled by a $10 billion Texas Energy Fund initiative, developers are proposing over 55 gigawatts of new capacity, potentially doubling the state’s existing gas-fired resources. Municipalities and educational institutions are actively participating, with places like Sugar Land and Texas A&M offering lands for these strategic developments. These efforts are bolstered by industry giants forming the Powering Texans group, aiming to add thousands of megawatts to the grid, addressing the surge from data centers and other heavy electricity consumers. As Texas grows, so does its energy strategy, balancing increased gas power with rising investments in solar and battery storage. This dynamic shift highlights Texas' multifaceted approach to meeting future energy demands while also stirring debates on environmental impacts. #EnergyDevelopment #TexasPower #NaturalGas #ERCOT #SustainableEnergy #BusinessDevelopment https://lnkd.in/gfkZdub3

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$1.2 𝘽𝙞𝙡𝙡𝙞𝙤𝙣 𝙉𝙖𝙩𝙪𝙧𝙖𝙡 𝙂𝙖𝙨 𝙋𝙞𝙥𝙚𝙡𝙞𝙣𝙚 𝘿𝙚𝙖𝙡: 𝘿𝙏 𝙈𝙞𝙙𝙨𝙩𝙧𝙚𝙖𝙢 𝘼𝙘𝙦𝙪𝙞𝙧𝙚𝙨 𝙛𝙧𝙤𝙢 𝙊𝙉𝙀𝙊𝙆 DT Midstream is expanding its footprint by acquiring three interstate natural gas pipelines from ONEOK for $1.2 billion in cash. The purchase includes Guardian Pipeline LLC, Midwestern Gas Transmission Co, and VIKING GAS TRANSMISSION C, adding 1,300 miles of pipeline with a total capacity of over 3.7 Bcf/d across seven Midwest states. Financed with $900 million in debt and $300 million in equity, the deal strengthens DT Midstream's natural gas strategy. Completion is expected by early 2025. The move aligns with ongoing consolidation in the U.S. midstream sector, with significant recent deals, including Sunoco LP's acquisition of NuStar Energy L.P.. #NaturalGas #PipelineAcquisition #MidstreamDeal #EnergyInfrastructure #GasPipelines #DTMidstream #ONEOK #MergersAndAcquisitions #EnergyIndustry https://lnkd.in/gdFD8Z_E

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