What's the Word in Oil & Gas for 6/30/24?

Late June, 2024 Update

Oil & Natural Gas News

• Prices are up, down, up, down, and up, or is it down?
• Rig counts are down; Demand is up; Supply is optimistic...
• And investors remain positive.

Get all the latest industry information from the last couple of weeks in today's edition of our newsletter.

Game Time - FACT or AI HALLUCINATION?

I searched Google for "big oil and gas headlines in June 2024" and read what the AI Overview had to say.

Here's how the game works:

1. Read through these AI search results and decide for yourself if they are either: FACT or AI HALLUCINATION
2. Then check under these AI Results to see if your guesses were right.

Ready? Here we go!

Prices

AI Says:

"Oil prices are up almost 6% for the month, with tensions in the Middle East preventing prices from falling despite a sluggish Chinese economy and rising stockpiles. US crude oil prices have seen two consecutive weekly gains, with gasoline demand increasing."

Production

AI Says:

"US oil production is expected to remain flat for the rest of 2024 and into 2025 if futures prices stay around current levels. However, the EIA predicts that US crude oil production will grow by 2% in 2024, reaching an annual average of 13.2 million barrels per day."

Supply

AI Says:

"A crack in a Norwegian pipeline caused prices in Britain to spike and raised concerns about supply shortages. In Ecuador, the state oil company declared force majeure over deliveries of Napo heavy crude due to a pipeline and oil well shutdown caused by heavy rains."

Demand

AI Says:

"The IEA has lowered its global demand growth forecast by 140,000 barrels per day to 1.1 million barrels per day, citing softened demand in developed economies."

FACT or AI HALLUCINATION Answers:

Prices = Almost FACT

WTI prices are up for the past two weeks, but 6% is not looking accurate. According to Statista, WTI is up almost 10% from June 3rd-24th and Brent is up just over 10%.

Production = Almost FACT

The trend is pretty flat, but there is minor upward trajectory and predictions are optimistic for 2025.

Supply = Partial AI Hallucination

According to Reuters, "Oil prices will not change much in the second half of 2024 as concerns around demand from China and prospects of higher supply from key producers counter risks from geopolitical tensions, a Reuters poll indicated on Friday."

The Norwegian pipeline crack did cause panic temporarily in Europe, but it was not this week; it was early in June.

FACT: Ecuador did declare force majeure over deliveries of Napo heavy crude due to heavy rains. (Marine Link)

Demand = TOSS UP (You Decide!)

I have found conflicting information on this, so you'll want to do your due diligence here.

CNN and AI agree on the forecast change, as of June 3rd.

EIA's web page, published June 11th, is showing a more optimistic forecast of 13.2

Thanks for playing FACT or AI Hallucination! How did you do?

Show Me the Numbers

Natural gas is low as expected because it is the summer season. WTI is up compared to last June and leveling out. Brent is up, but down slightly the last couple of weeks. Both WTI and Brent are still over $80/barrel, so this is encouraging for investors.

New Resources for Investors

Prospects are Even Brighter in Wyoming For investors partnering with EOG in Wyoming, especially drilling and exploration projects, the optimistic forecasts signal substantial growth potential.

Generative AI Discoveries in Oil & Gas Gen AI enhances these predictive models by providing context and explanations, thereby improving decision-making processes.

Best Hedge Amid Potential Geopolitical Risk These historical patterns suggest that oil can be a reliable hedge against the uncertainties surrounding the upcoming U.S. election.

4 Wells in the heart of the Powder River Basin DW Wyoming #7 offers investment in 4 EOG wells with high production potential and significant tax benefits. And all 4 wells are producing as of earlier this week!

OPEC Recommends More Fossil Fuel Investments Products derived from crude oil remain essential for daily life, making long-term investment in the oil industry crucial.

United States & Canada: Focus Area for O&G Investors in 2024 Under-invested North American shale presents more opportunities for investors.

Want to dig in deeper on this information?

Join me in my new LinkedIn Group, Profits by the Barrel

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Until next time...

Greg

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I’m Greg Hillman and I am a tenured veteran in the oil and gas industry, with more than 35 years of experience. I’ve been involved in almost every aspect of oil and gas, from developing future prospects, obtaining oil, gas, and mineral leases, drilling, completion, operation, 3-D Siesmic shoots and production. I promote energy independence by reducing the country’s reliance on? foreign oil by connecting you (qualified private capital) with the Oil & Gas Industry.

Office: 214.758.0880 Email: [email protected]