Texas Oil & Gas Association

📊 TXOGA Chartbook Update - Week of November 4, 2024 🔹U.S. economic indicators showed resilience, although uncertainties linger as the country awaits election results. Financial markets are closely monitoring the presidential election's potential effects on inflation, interest rates, monetary policy, and the U.S. dollar. Meanwhile, consumer sentiment was revised upwards in the University of Michigan’s final October survey, shifting to a 0.6% month-over-month (m/m) increase from an initial 1.7% m/m decrease. This reflects optimism that aligns with steady consumer spending growth, which rose by 3.0% year-over-year (y/y) in Q3, per the Bureau of Economic Analysis. Additionally, the yield premium on low-grade corporate bonds narrowed, and the Philadelphia Fed's ADS Index continued to indicate favorable business conditions, supporting GDP growth for Q4 2024. 🔹Oil market fundamentals tightened, yet political and economic uncertainties tempered price movements. Global oil prices lacked clear direction as stronger supply-demand fundamentals were overshadowed by election-related concerns. West Texas Intermediate (WTI) crude oil prices decreased by 2.8% week-over-week (w/w) to under $70 per barrel as of November 1, despite the latest weekly data from the Energy Information Administration (EIA) showing strong U.S. demand (21.6 million barrels per day, mb/d), net petroleum exports of 3.2 mb/d, and lower crude oil inventories. 🔹U.S. natural gas futures prices for winter delivery fell by over 10% w/w due to increased inventories and warmer weather, erasing seasonal price effects. Natural gas inventories rose by 2.1% w/w to 3.86 trillion cubic feet (tcf) as of October 25, placing them in the top 20% of the five-year range. 🔹The Chart of the Week highlights record-breaking oil and natural gas production levels in EIA reports for August and TXOGA’s estimation for October. For detailed insights and analysis, please visit the TXOGA Chartbook at: https://lnkd.in/g8tSBmUm #TexasOilAndGas #EconomicOutlook #OilMarket #NaturalGas #EnergyTrends #MarketInsights #Business #Economics #Productivity #QuantitativeAnalysis #Strategy #Innovation #Inflation #Prices #Markets #Data

Check out our Month in Review for October below to see how TXOGA was busy advocating for the Texas oil and natural gas industry: https://lnkd.in/g7m7XRbc

The Permian Basin is stepping up to the plate to meet record high oil demand. Listen to the full conversation: https://lnkd.in/gzmR4hPy

Congratulations to the Permian Road Safety Coalition on winning D CEO's Excellence in Safety Award! This well deserved recognition is a continued testament to their work to keep our roads and residents safe and ensure that everyone goes home, and nobody gets hurt.

To effectively mitigate cyber risks, the oil and natural gas industry seeks to adopt comprehensive cybersecurity measures. Implementing security systems that work across the company’s infrastructure is essential for ensuring a strong defense against cyber threats. Using new asset tracking technologies can help monitor systems and identify potential security incidents in real time. Continuously developing training programs to show employees how to recognize and respond to cyber threats will reinforce the security within organizations, including efforts that are particularly crucial in Texas, where a skilled workforce is essential to the industry’s resilience. Read more: https://lnkd.in/e2yXsJwN

Friends, there are only a few more days of early voting--get a fun reminder from your favorite podcast--TXOGA Talks! Texas Oil & Gas Association

Congressman August Pfluger recently sent a letter to Secretary Jennifer Granholm, signed by 44 fellow members of Congress, raising serious concerns about transparency and accountability within the Department of Energy (DOE). The Congressman demanded answers regarding studies allegedly conducted by the DOE on the economic and environmental impacts of LNG, findings that, according to recent reports, may have been withheld from the public because they highlighted the positive impacts of U.S. LNG on the global energy landscape. In a statement to the Odessa American, TXOGA President Todd Staples said the following: “In addition to the immediate economic consequences and job losses for Texans, the Biden Administration’s decision to halt approvals of LNG export permits hamstrings America’s ability to meet the world’s ever-growing energy demands, bolsters hostile nations and sets back environmental progress around the world. ‘With so much uncertainty in the world, the need for reliable, responsibly produced energy from a stable trading partner has never been more crucial. Texas is that trade partner and TXOGA applauds Congressman Pfluger and the signatories of the letter to Secretary Granholm and the DOE for shining a light on the essential role that LNG objectively plays in the success of our communities, the nation’s economy and energy security around the world.” Read more: https://lnkd.in/eJGaYCxM

Listen to the latest episode of TXOGA Talks for a deep dive on load growth and electricity demand in the Permian Basin: https://lnkd.in/gzmR4hPy

📊 TXOGA Chartbook Update - Week of October 28, 2024 🔹U.S. economic indicators remained stable. Federal Funds 30-day futures held at 4.8%, indicating no expected rate changes in November, while yields on long-term bonds, particularly lower-quality corporate bonds, edged higher during the week ending October 25. Business conditions remain favorable for GDP growth in Q4 2024, as indicated by the Philadelphia Fed's ADS Index and the University of Michigan’s consumer sentiment survey, which recorded its highest business conditions reading in six months. 🔹Oil market fundamentals loosened slightly, but prices flattened as geopolitical tensions in the Middle East eased. West Texas Intermediate (WTI) crude oil prices rose 3.6% week-over-week (w/w) to nearly $72 per barrel as of October 25. U.S. crude oil production remained at a record-high 13.5 million barrels per day (mb/d), while domestic demand (20.3 mb/d) and net petroleum exports (2.5 mb/d) declined, leading to a 5.5 million-barrel increase in crude oil inventories, according to the Energy Information Administration’s (EIA) data as for the week ended October 18. 🔹U.S. natural gas prices rose by 12.2% w/w amid strong consumption, exports, and winter weather forecasts. U.S. natural gas consumption exceeded 80 billion cubic feet per day (bcf/d) in October, and net exports reached a record 13.8 bcf/d, per EIA projections. Updated weather projections from NOAA and AccuWeather predict below-average temperatures in the Pacific Northwest, above-average temperatures in the Southeast, and increased storm activity. 🔹The Chart of the Week highlights how mean reversion analysis has recently been effective in both oil and natural gas markets. For detailed insights and analysis, please visit the TXOGA Chartbook at: https://lnkd.in/g8tSBmUm #TexasOilAndGas #EconomicOutlook #OilMarket #NaturalGas #EnergyTrends #MarketInsights #Business #Economics #Productivity #QuantitativeAnalysis #Strategy #Innovation #Inflation #Prices #Markets #Data

The oil and natural gas industry is constantly innovating! Listen to the full episode of TXOGA Talks: https://lnkd.in/gzmR4hPy