Rob Stevens

The acquisition of the clean ammonia project in Texas by Woodside Energy Group Ltd. for $2.35 billion, following its recent $900 million purchase of liquefied natural gas (LNG) developer Tellurian Inc., signifies several strategic insights and implications: Strategic Positioning and Market Expansion 1. Entry into the Clean Ammonia Market: • Woodside’s acquisition of OCI Clean Ammonia Holding BV positions the company in the burgeoning clean ammonia sector, which is expected to see significant growth. The forecast that global ammonia demand will double by 2050, with lower-carbon ammonia comprising nearly two-thirds of this demand, highlights the strategic foresight in this investment. 2. Diversification: • By diversifying into clean ammonia, Woodside is reducing its reliance on traditional fossil fuels and aligning with global trends toward decarbonization and sustainable energy sources. This move can help mitigate risks associated with fluctuating oil and gas prices and regulatory pressures on carbon emissions. Financial and Operational Insights 1. Capital Allocation: • The all-cash transaction for the clean ammonia project suggests Woodside’s strong financial position and its commitment to investing in growth areas. The significant capital deployment indicates confidence in the long-term returns from the clean ammonia market. 2. Synergies and Integration: • The integration of carbon capture and storage (CCS) technology, in collaboration with Linde Plc and Exxon Mobil Corp., is a strategic move to enhance the project’s sustainability and reduce emissions. This partnership could also lead to operational efficiencies and technological synergies. Market Reaction and Competitor Landscape 1. Positive Market Response: • The 11% jump in OCI NV’s shares following the announcement reflects investor confidence in the transaction. It also suggests positive market sentiment towards the strategic direction of both companies involved. 2. Competitive Advantage: • Woodside’s dual acquisitions in the U.S. energy market within a short period underscore its aggressive expansion strategy. This positions Woodside as a key player in both the LNG and clean ammonia markets, potentially giving it a competitive advantage over peers who are slower to diversify. Environmental and Regulatory Implications 1. Sustainability Goals: • The move aligns with global sustainability goals and regulatory frameworks aimed at reducing carbon emissions. By investing in lower-carbon ammonia production, Woodside is proactively addressing environmental concerns and positioning itself as a leader in the transition to cleaner energy. 2. Regulatory Compliance: • The integration of CCS technology not only enhances the project’s environmental credentials but also ensures compliance with increasingly stringent emission regulations. This can facilitate smoother project approvals and operational continuity.

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📈 Highlights from TXOGA’s Monthly Energy Economics Review (MEER) – November 2024 The Monthly Energy Economics Review (MEER) bridges gaps in public data across the entire oil and natural gas value chain, offering timely insights and comprehensive estimates for Texas' production, trade, and consumption. The November edition shows that Texas maintained near-record production levels, with TXOGA estimating 5.7 million barrels per day (mb/d) of crude oil, a record 33.8 billion cubic feet per day (bcf/d) of natural gas marketed production, and 3.8 mb/d of natural gas liquids (NGLs) in October. Year-to-date, Texas has accounted for 43.0% of U.S. crude oil and 29.0% of U.S. natural gas marketed production, increasing its share of national and global output. The EIA’s October 31 release of August 2024 data aligns closely with TXOGA’s September 16 projections, with only minor differences across oil, natural gas, and NGL production volumes. August 2024 Highlights: 🔹 Record-high crude oil production of 5.8 mb/d and sustained NGL production at 3.85 mb/d. 🔹 Highest recorded exports of refined products, reaching 4.5 mb/d. 🔹 Texas produced 28.1 bcf/d of dry natural gas; 16.5 bcf/d was consumed in-state, primarily for industrial and electricity use, while 11.4 bcf/d was exported (7.6 bcf/d as LNG and 3.8 bcf/d via pipelines to Mexico). 🔹From January to August 2024, Texas exported $154.3 billion in energy products, based on U.S. International Trade Commission (USITC) data. ERCOT Update 🔹In October, ERCOT relied on thermal and dispatchable generation for up to 93.2% of its electricity needs, averaging 62.9% throughout the month. For details, check out the MEER! https://lnkd.in/g8tSBmUm #TexasOilAndGas #RecordBreaking #EnergyProduction #TXOGA #IndustryLeadership #Energy #Oilindustry #Productivity #NaturalGas #QuantitativeAnalysis #Strategy #Innovation #Markets #Data

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📈 Highlights from TXOGA’s Monthly Energy Economics Review (MEER) – December 2024 TXOGA’s Monthly Energy Economics Review (MEER) provides a unique perspective on the oil and natural gas industry, bridging gaps in public data to deliver timely insights and comprehensive estimates across Texas’ production, trade, and consumption. Highlights from the December edition: 🔹 Texas production remains robust, with 5.8 mb/d of crude oil, 33.2 bcf/d of natural gas, and 4.0 mb/d of natural gas liquids (NGLs), maintaining near-record levels. 🔹 Market share gains. Year-to-date through November, Texas has accounted for 43.0% of U.S. crude oil and 29.1% of U.S. natural gas production, increasing the state’s market shares. 🔹 Texas natural gas dynamics. September 2024 saw 27.8 bcf/d of dry natural gas production, with 15.0 bcf/d consumed in-state and 12.4 bcf/d exported, including 8.2 bcf/d of LNG and 4.2 bcf/d via pipelines to Mexico. The remainder represents net storage changes and interstate flows. 🔹 Strong exports. Energy exports from Texas totaled $172 billion for the first three quarters of 2024. 🔹 Across the Electric Reliability Council of Texas (ERCOT), thermal and dispatchable sources supplied up to 97.4% of electricity during peak periods in November, averaging 60.5% throughout the month. TXOGA’s MEER continues to provide the data and context needed to understand Texas’ essential role in U.S. and global energy. Check out the full report for more insights! https://lnkd.in/g8tSBmUm #TexasOilAndGas #EnergyEconomics #TexasEnergy #NaturalGas #CrudeOil #EnergyLeadership #Oilindustry #Productivity #NaturalGas #QuantitativeAnalysis #Strategy #Innovation #Markets #Data

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America's oil industry has transformed from a marginal player to a competitive force against OPEC, now acting as a net exporter of petroleum and significantly contributing to the economy. After a period of investor skepticism due to a global oil glut, the U.S. has improved productivity through the continuous drilling of wells and learning from each operation. Projections indicate that U.S. oil production is set to increase by 600,000 barrels per day in 2025, driven by enhanced well productivity. Over the past decade, productivity in the oil and gas extraction sector has nearly tripled, outpacing growth in many tech industries. This surge in productivity has sparked debates among economists about the role of technological advancements, including artificial intelligence, in driving these gains. US productivity growth has been a big topic of debate among economists, many of whom wonder how much the recent jump is being driven by artificial intelligence and to what extent AI will affect it in the future. America’s oil resurgence over the past decade was a different kind of technological breakthrough, the combination of drilling horizontally through layers of shale and then fracturing, or fracking, the rock with blasts of water, sand and chemicals to extract hydrocarbons. Initially, shale drilling was considered more expensive and less sustainable than conventional methods, but advancements have challenged these assumptions, leading to robust output from regions like the Permian Basin. https://lnkd.in/gmKcGETV

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🎙️ Excited to share that I recently joined Grayson Brulte on The Road to Autonomy® podcast! We had an insightful discussion about key political and economic events impacting the oil markets, including the upcoming U.S. Presidential election, FED rate decisions, and geopolitical factors. We also delved into Texas' significant contribution to oil production and exports, the global demand for oil and natural gas, and the economic impact on Texas' economy. Tune in to hear our thoughts on how these factors could affect consumers and shape the future of the oil and gas industry! #RoadToAutonomy #OilAndGas #Economy #Podcast #EnergyMarkets #Texas #OilProduction #TXOGA

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This morning's EIA data revealed a significant injection of 78 Bcf of natural gas into U.S. storage facilities for the week ending October 25th, surpassing the five-year average of 67 Bcf. The higher-than-average injection has influenced NYMEX natural gas prices, with the December contract currently at $2.73 per MMBtu, down $0.115, with the downside carrying out through June 2027. In California, indicative natural gas basis prices have decreased at the PG&E Citygate (-$0.05 to $1.78/MMBtu) and SoCal Border (-$0.06 at $1.08) for 1-year beginning December 1st. Day Ahead Power prices are lower at NP15 and SP15. #EIA #NaturalGas #EnergyMarket #PowerPrices #TradingActivity

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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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BP’s decision to sell up to 49% of its U.S. natural gas pipeline network, potentially raising $3 billion, reflects CEO Murray Auchincloss’s strategy to address rising debt, which reached $24.3 billion in Q3 2024, and restore investor confidence. With its share price down 18% YTD, BP is pressured to streamline its portfolio and strengthen cash flow. The growing value of U.S. pipeline infrastructure, driven by production increases and regulatory bottlenecks, positions BP’s 1,500 miles network as a compelling buyer asset. Coupled with plans to divest stakes in renewables, the February strategy update will be critical for redefining BP’s path in energy transition and financial performance.

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US #upstream #oil production is reaching new heights, surpassing 13 million b/d of crude and condensate in 2023, with 14 million b/d forecast by 2026. Innovation, operational efficiency, and data-driven strategies are driving this growth, supported by regulatory frameworks and cutting-edge AI technology. Learn more about how the US is leading the global supply chain and what’s next for the sector in Simon Flowers’ in-depth analysis. Read The Edge now. https://okt.to/IfE1Ro

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The US is sometimes thought to be immune to the impact of a steep rise in crude prices, because of the strength of its oil industry. But that view is an oversimplification. How might US E&Ps respond to disruption to global oil supplies? Read this week's Energy Pulse to find out. https://okt.to/levjbk In other news: - Equinor takes a near-10% stake in Ørsted - Chevron sells oil sands and shale assets in Canada - The window for limiting global warming to 2 °C is closing

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+Transform Your Natural Gas Operations with BlackRock Resources Training+ At BlackRock Resources, we are thrilled to roll out our dedicated training team, composed of industry-leading Subject Matter Experts (SMEs). With over 350 years of collective experience in the natural gas sector, our team is primed to address your most pressing technical challenges through customized training solutions. What We Offer: -Comprehensive Training Topics: From Compression to Gas Handling and Metering to Regulatory Compliance and Pipeline Repairs, our training covers a wide range of critical areas. We also specialize in new employee training, pipeline and facility maintenance and innovative methods for mine subsidence mitigation. -Customizable Training Modules: Whether you prefer to use your training materials or ours, we tailor each session to fit your specific needs, ensuring your team gains practical and impactful knowledge. -Experienced SMEs: Our trainers aren’t just experts—they're seasoned professionals who have worked in the trenches and understand the nuances of the industry. Are you ready to elevate your team's expertise and operational efficiency? For a full list of the training programs we offer, or to discuss a particular need, please reach out to Tara Cooper at [email protected]. We are excited to hear from you and would like to explore how we can contribute to your success. Let's set your team up for excellence in the natural gas industry! #NaturalGas #Training #IndustryExperts #EngineeringExcellence #BlackRockResources

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Oilfield capital expenditures' expectations for 2025 are less bullish than they were earlier this year. Oil prices are down about 5% year to date and 20% over the past 12 months. According to a report from Morgan Stanley. Every $10-a-barrel decline in oil prices causes a roughly 5% to 10% reduction in capital expenditures for short-cycle production (such as U.S. Shale), while the same move causes just a 1% to 2% fall in spending for long-cycle resources (i.e. Offshore) https://lnkd.in/gDuCFm6Z

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Honored to be quoted in Bob Campbell's latest article in the Odessa American, which highlights the pivotal roles that service companies play in driving the oil and natural gas industry’s innovation and efficiency—enabling the sector to thrive. Their contributions are key to the evolving energy landscape and serve as primary drivers of energy abundance. If you’re curious about how service companies keep the industry running, please check out the article! #EnergyIndustry #ServiceCompanies #Innovation #OilAndGas #IndustryLeadership

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Here's a very important piece written by CBIA CEO Chris DiPentima on the short-medium term solution to reduce energy costs in New England. Remember to call us first for help in managing your electricity and gas costs!

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The potential re-entry of National Oil Companies (NOCs) into the merger and acquisition (M&A) landscape represents a significant shift in the global energy sector. Here are some key insights and implications based on the information provided: Strategic Context 1. Historical Context: • M&A Activity Decline: NOCs’ spending on international M&A has significantly declined from over $30 billion annually between 2009 and 2013 to less than $5 billion annually since 2019. Their share of global M&A spending has dropped from nearly 50% at its peak to less than 5% today. • Market Dynamics: This decline can be attributed to various factors, including market volatility, geopolitical risks, and a strategic shift towards domestic investments and cost management. 2. Current Market Conditions: • Attractive Valuations: The current market presents attractive valuations for potential acquisition targets, making it a favorable time for NOCs to consider M&A activities. • Financial Strength: NOCs’ financial ratings are at all-time highs, providing them with the financial capability to pursue strategic acquisitions. Motivations for Re-Entry 1. Portfolio Diversification: • Diversification Needs: Middle Eastern NOCs, in particular, have portfolios heavily concentrated in domestic oil or gas. Diversification through international acquisitions can mitigate risks associated with over-reliance on a single resource or geography. • Examples: Saudi Aramco and ADNOC’s ventures into the international LNG market, and QatarEnergy’s exploration efforts, highlight a strategic move towards diversification. 2. Energy Security: • Geopolitical Considerations: For countries like China, energy security remains a critical concern. Acquiring international assets can enhance energy security by ensuring stable and diversified supply sources. • Strategic Gaps: Filling strategic gaps through international acquisitions can strengthen NOCs’ competitive positioning and long-term sustainability. 3. Competitive and Sustainable Portfolios: • Alignment with IOCs: NOCs are increasingly aligning their motivations with those of International Oil Companies (IOCs), focusing on portfolio competitiveness and sustainability. • Sustainability Goals: Acquisitions that align with sustainability goals, such as investments in renewable energy or low-carbon technologies, can enhance NOCs’ long-term viability. Opportunities and Challenges 1. Opportunities: • Uncrowded Markets: While North America has seen a recent M&A frenzy, other regions remain less crowded, presenting opportunities for NOCs to acquire high-quality assets. • Strategic Acquisitions: Identifying and acquiring material, high-quality opportunities can provide NOCs with strategic advantages and growth potential. 2. Challenges: • Geopolitical Risks: International acquisitions come with geopolitical risks, including regulatory hurdles, political instability, and potential conflicts.

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TDW continues to lead in transformative innovation. Check out the recap below for some highlights we showed at IPC2024.

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