Rana Basu

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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𝙀𝙭𝙭𝙤𝙣 𝙖𝙣𝙙 𝘾𝙝𝙚𝙫𝙧𝙤𝙣 𝙋𝙧𝙤𝙥𝙚𝙡 𝙂𝙧𝙤𝙬𝙩𝙝 𝙬𝙞𝙩𝙝 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙞𝙘 𝘼𝙘𝙦𝙪𝙞𝙨𝙞𝙩𝙞𝙤𝙣𝙨 𝙖𝙣𝙙 𝙄𝙣𝙘𝙧𝙚𝙖𝙨𝙚𝙙 𝙋𝙧𝙤𝙙𝙪𝙘𝙩𝙞𝙤𝙣 ExxonMobil and Chevron, two of the largest U.S. oil companies, are witnessing significant growth in crude production, particularly from the #PermianBasin and #Guyana, two of the world's most productive oil fields. This surge is underpinned by their strategic investments exceeding $100 billion in acquisitions. Exxon's first-quarter production in Guyana saw a remarkable 70% increase, contributing significantly to global demand. Simultaneously, both companies anticipate a 10% increase in Permian production this year. Exxon is poised to become the largest producer in the Permian following its $64 billion acquisition of Pioneer Natural Resources, while Chevron is expanding its stake in Guyana's Stabroek Block with a $52 billion investment in Hess Corporation. This aggressive expansion positions them ahead of European competitors and underscores their commitment to bolstering oil and gas production amid global supply concerns. Despite shifting market dynamics and increased interest in renewable energy, Exxon and Chevron remain focused on fossil fuels. They leverage their robust positions in low-cost, high-yield regions to ensure profitable production and meet rising energy demands. https://lnkd.in/gGNm-3Pz

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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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#US_pipeline US pipeline operator ONEOK Inc. agreed to buy a Permian Basin rival and a controlling stake in another company in two transactions valued at a combined $5.9 billion. ONEOK will acquire Global Infrastructure Partners’ entire interest in EnLink Midstream LLC and also buy GIP’s equity interests in Medallion Midstream, the largest closely held crude gathering and transportation system in the Permian, it said in a statement late Wednesday. The move expands ONEOK’s presence in the most prolific US oil and gas basin. It’s the latest in a spate of deals in the industry as private equity firms offload assets to corporate buyers. Operators of oil and gas assets are looking to scale up as cash-flush fossil fuel companies consolidate and look to refresh their drilling inventory. New York-based Global Infrastructure Partners is a private equity firm specializing in energy, transportation, water and waste management. ONEOK shares gained 0.8% in New York. EnLink surged 11%. https://lnkd.in/dCFiT6nS

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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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On OPEC+ & the oil market: ▪️Market sentiment, often narrative-driven rather than factual, influences pricing & investor decisions. ▪️The paper market, designed to stabilize the physical market is now heavily impacted by sentiment, distorting prices. ▪️OPEC+ has consistently provided supply-side certainty since COVID-19. ▪️Diverging views on fundamentals, particularly demand, complicate accurate market assessments. https://lnkd.in/etGN2ahu

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The recent wave of M&A activity could point to a resurgence in the oil & #gasindustry. Matador Resources' $1.9bn acquisition of Permian Basin properties and Noble Corp.'s $1.6bn acquisition of Diamond #OffshoreDrilling are examples of companies taking bold steps to expand their operations. With their strong asset bases and solid financial prospects that can capitalize on the #oil industry's recovery, these companies could attract investors. But as always, it's still important to conduct thorough research before making any decisions. https://loom.ly/95l4g6k

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AI proliferation depends on Permian Basin #gas: Chevron CEO ◾ CEO sees peak power demand rising ◾ Executives see #LNG benefitting from AI rush Full story: https://okt.to/DOp5aw #AI #artificialintelligence #Permian

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Is Barrel Hub's data analytics platform poised to transform Texas oil and gas pricing? This data has the potential to significantly alter market dynamics in several key ways: • Market maturation: Currently, oil prices in Texas can vary widely, with swings of up to $8/bbl observed in some counties. As Barrel Hub's comparative data becomes more widely adopted, we anticipate a gradual narrowing of this price range. The cause of this compression will likely be due to market participants gaining access to more accurate pricing information. • Emerging pricing benchmark: The detailed nature of Barrel Hub's data, which incorporates a broader range of pricing factors than traditional pricing contracts, may position it as a new industry standard for pricing benchmarks. • Potential market restructuring: Purchasers may face increased financial pressure as they adjust to more equitable pricing structures. Informed investors could leverage the comparative data to identify and acquire undervalued oil leases, potentially increasing revenue through renegotiated contracts or changes in purchasers. Investors may also gain earlier insights into the performance of oil-producers, allowing for more timely investment decisions. These changes suggest a shift towards a more data-driven, efficient market in the Texas oil and gas industry. While this transformation may present challenges for some current market participants, it also offers opportunities for those ready to adapt to a more transparent pricing environment.

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💥 BIG MOVES IN Q2: We saw just shy of $40 billion in new mergers and acquisitions agreed worldwide for upstream oil and gas assets over the last six months. Dive deep into the M&A world with Evaluate Energy’s robust database, your go-to resource for tracking every deal in the energy sector. With data continuously updated from 2008 to today, we’ve got you covered from oil and gas to nuclear and renewables like wind, solar, hydrogen, tidal, and biomass. 👉 For more on our M&A data, click here: https://lnkd.in/g4MBMVX6 #oilandgas #energy #oil #mergersandacquisitions #mergers Mark Young

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Gas Producers, Midstreamers, Welcome to the Machine(s) The growing population of AI-driven data centers and their voracious appetite for electrical power haven’t been lost on natural gas players exploring new market opportunities. Not when most of the nation’s power is generated by natural gas (42%) with another 133 gas-fired plants in the works. Not when tech companies are in a race to build more powerful machines that will burn even more energy while also competing to lock down stable, massive power supplies. Reese Energy Consulting today is following the latest on the AI boom driving demand for electrical power where the U.S. lays claim to the most data centers in the world—2,800 across the country—and more are ramping up. This, in addition to more crypto mining companies and tech-intensive manufacturing that already have grid operators on notice. Large midstream operators like Williams and Energy Transfer are working with data center operators to build natural gas pipelines tied directly to their facilities that will generate power on site. Co-location between power plants and data centers is set to become a big thang to privatize all this electrical consumption. As a producer, perhaps no one knows this better than CEO Toby Rice, whose Pa.-based EQT Corporation operates the nation’s largest natural gas basin and where neighbor state Va., is home to the “Data Center Capital of the World.” Rice sees AI as the largest new source of natural gas demand. We agree. The AI boom could well trigger a new natural gas boom. Here at home, REC is attracting interest from AI developers to help with physical gas connections and commercial gas supply consulting. Something tells us we’re just getting started. What do you think? Learn more about our natural gas expertise at https://lnkd.in/ebXT2mS. #AI #naturalgas #power #generation #future #reeseenergyconsulting

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Our new data shows how the oil and gas industry’s recent strong performance has influenced CEO compensation. https://lnkd.in/dYqjv3q9 #oilandgas #oilfield #energyindustry #csuite #executivecompensation #executivepay #compensation #compensationplanning #corpgov #corporategovernance #boardofdirectors #boardsofdirectors #peergroup

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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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𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐆𝐥𝐨𝐛𝐚𝐥 𝐓𝐚𝐫𝐠𝐞𝐭𝐬 $110𝐁 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐋𝐚𝐧𝐝𝐦𝐚𝐫𝐤 𝐔.𝐒. 𝐈𝐏𝐎 Venture Global LNG, a leading U.S. liquefied natural gas (LNG) exporter, aims for a valuation of up to $110.38 billion in its upcoming IPO, marking the first major U.S. stock market debut of 2025. The company plans to raise $2.3 billion by offering 50 million shares priced between $40 and $46 each. If successful, this would be one of the largest energy IPOs in U.S. history, rivaling ConocoPhillips’s $4.4 billion offering in 1998 and Kinder Morgan, Inc. $3.3 billion in 2011. 𝑲𝒆𝒚 𝑫𝒓𝒊𝒗𝒆𝒓𝒔 𝑩𝒆𝒉𝒊𝒏𝒅 𝒕𝒉𝒆 𝑰𝑷𝑶: 𝑮𝒍𝒐𝒃𝒂𝒍 𝑳𝑵𝑮 𝑫𝒆𝒎𝒂𝒏𝒅 𝑺𝒖𝒓𝒈𝒆: Rising global demand for LNG, especially in Europe and Asia, is fueling Venture Global's growth. 𝑴𝒂𝒔𝒔𝒊𝒗𝒆 𝑬𝒙𝒑𝒂𝒏𝒔𝒊𝒐𝒏 𝑷𝒍𝒂𝒏𝒔: Venture Global operates five LNG projects in Louisiana, with a projected peak production capacity of 143.8 million tonnes per annum. 𝑺𝒕𝒓𝒐𝒏𝒈 𝑭𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝑩𝒂𝒄𝒌𝒊𝒏𝒈: The company has secured $54 billion in capital and generated $19.6 billion in LNG sales as of September 2023. 𝑺𝒕𝒓𝒂𝒕𝒆𝒈𝒊𝒄 𝑮𝒖𝒍𝒇 𝑪𝒐𝒂𝒔𝒕 𝑷𝒐𝒔𝒊𝒕𝒊𝒐𝒏: U.S. LNG export capacity is forecasted to more than double by 2028, positioning the company for significant growth. Founders Michael Sabel and 𝑹𝒐𝒃𝒆𝒓𝒕 𝑷𝒆𝒏𝒅𝒆𝒓 will retain over 50% voting control post-IPO. The company will trade on the NYSE under the symbol "VG." What impact will this IPO have on the global energy market and LNG exports? #EnergyMarkets #LNG #IPO #BusinessGrowth #NaturalGas #GlobalEnergy #VentureGlobal #Leadership #InvestmentOpportunities https://lnkd.in/gEXMe-vK

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Energy Transfer LP announced that it has reached a positive final investment decision (FID) for the construction of an intrastate natural gas pipeline connecting Permian Basin production to premier markets and trading hubs. Read the full story here: https://lnkd.in/gHf73Hbw #BICMagazine #Pipeline #Permian

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