On a disappointing note, Argentina’s September 2025 natural gas production plummeted. Ministry of Economy data shows the country pumped 4.9 billion cubic feet of natural gas for the month, which was 6% less than a month prior and 12% lower year on year. This was primarily driven by a sharp decline in shale gas production, which for September 2025 was 3.1 billion cubic feet per day, a 7.5% decrease month on month and a 15.6% drop compared to the same period a year earlier.Those numbers confirm Argentina’s pl ...

It is interesting to note at this point the circularity of history here, albeit with a twist. Prior to 1973/74, the global oil industry had effectively been run by a small group of Western oil firms known as the ‘Seven Sisters’, as detailed in my latest book on the new global oil market order . These firms – comprised of the Anglo-Persian Oil Company (which changed its name in 1935 to the Anglo-Iranian Oil Company, and is now BP), Royal Dutch Shell, three iterations of Standard Oil (Standard Oil of Californ ...

Core Insights - JERA Co. Inc. is acquiring full ownership of the South Mansfield shale gas asset in Louisiana for $1.5 billion, enhancing its role in the U.S. energy sector and strengthening its global LNG value chain [1][3]. Group 1: Acquisition Details - The Haynesville acquisition includes assets producing over 500 million cubic feet of gas per day (MMscfd) across 210 square kilometers, with plans to double output to 1 billion cubic feet per day (Bscfd) through future investments [2]. - The asset has 200 undeveloped drilling locations and established infrastructure for gathering and transportation, leveraging proximity to Gulf Coast LNG terminals [2]. Group 2: Strategic Expansion - JERA is strategically expanding in the U.S., holding interests in ten power generation assets and committing to energy transition projects, including a significant low-carbon ammonia development [3]. - Earlier this year, JERA signed a major LNG offtake agreement for 5.5 million tonnes per year over 20 years, solidifying its position as a leading LNG buyer [3]. Group 3: Leadership Perspectives - The acquisition is described as a "strategic addition" by JERA Americas' CEO, enhancing the upstream portfolio and commitment to America's energy future [4]. - JERA's Chief Low Carbon Fuel Officer emphasized that the investment diversifies and mitigates market risk while aligning with the goal of providing stable, secure, and lower-carbon energy [4]. Group 4: Company Background - Founded in 2015 as a joint venture between Tokyo Electric Power and Chubu Electric Power, JERA supplies about one-third of Japan's electricity and aims for net-zero CO2 emissions by 2050 [5]. - The Haynesville deal is part of a trend among Asian energy firms expanding upstream in North America to secure long-term gas supply amid volatile global markets [5].

Core Insights - China's subsea pipeline network has reached a total length of 10,000 kilometers, marking a significant milestone in offshore oil and gas development as the country aims to reduce its reliance on energy imports [1][2] - The pipeline network is expected to exceed 13,000 kilometers by 2030, enhancing the offshore energy transport infrastructure and potentially accommodating future energy sources like hydrogen and shale gas [3] - CNOOC's recent projects in the Bohai Sea, including the Kenli 10-2 field, are set to boost production significantly, with expected peak output of 19,400 barrels of oil equivalent per day by 2026 [5] Pipeline Network Development - The densest part of the pipeline network is located in the Bohai Sea, specifically in Bohai Bay, which contains 3,200 miles of pipelines [4] - The pipeline network is part of China's broader strategy to increase domestic oil and gas production and transition to alternative energy sources [2][3] Production Initiatives - CNOOC has initiated several production projects in the South China Sea, including the Wenchang 16-2 Oilfield Development Project, which aims for a peak production of 11,200 barrels daily by 2027 [6] - The Deep-Sea No. 1 natural gas project has reached full capacity, contributing an additional 4.5 billion cubic meters of natural gas per year to domestic output [6] Financial Performance - CNOOC reported a record net oil and gas production of approximately 720 million barrels of oil equivalent for 2024, marking the sixth consecutive year of record production [7] - The company also anticipates an 11.4% increase in profit for 2024, reaching $19 billion, driven by the record production rates [7]

Core Insights - Argentina's federal government has focused on the Vaca Muerta shale formation for over a decade, which has become a key driver for the country's hydrocarbon production [1] - The nationalization of YPF in 2011 was a pivotal moment that allowed the company to lead the development of Vaca Muerta, despite initial backlash from financial markets [1] Production Growth - Shale oil and gas production in Argentina has reached record highs, with August 2025 data showing crude oil production at 816,144 barrels per day, 65% of which was shale oil [2] - Natural gas production for the same month was 5.5 billion cubic feet, with 67% attributed to shale gas [2] - Year-over-year, oil output increased by nearly 15%, while natural gas production saw a modest 3% rise [2] Shale Oil and Gas Performance - Shale oil production surged by 30% year-over-year to 530,057 barrels per day, marking a new record and comprising 65% of all crude oil lifted in Argentina [3] - Shale gas production, however, declined by 1.6% month-over-month to 3.7 billion cubic feet per day, although it was still 3% higher year-over-year [3] Comparison with U.S. Shale Plays - Vaca Muerta's characteristics are more similar to the Permian Basin than the Eagle Ford Shale, with well productivity believed to surpass that of major U.S. shale plays [4] - A typical well in Vaca Muerta yields around 30 barrels per foot drilled, which is double the production of the Permian and other U.S. shales [4] - The average breakeven price in Vaca Muerta is estimated at $36 per barrel, comparable to U.S. shale basins despite higher drilling costs [4]

Core Insights - Chevron Corporation aims to increase its oil output in Argentina's Vaca Muerta shale formation to 30,000 barrels per day (bpd) by the end of 2025, reflecting confidence in this significant energy resource [1][2] Company Expansion - Chevron has been investing in Vaca Muerta for years, currently producing approximately 25,000 bpd and planning to ramp up to 30,000 bpd by year-end 2025 [2] - The company’s Argentina country manager highlights the growth potential of Vaca Muerta, emphasizing its strong unconventional resource base and the ability to scale quickly under favorable conditions [2][8] Industry Impacts - Vaca Muerta is recognized as the world's second-largest shale gas reserve and fourth-largest for shale oil, playing a crucial role in Argentina's energy strategy to reduce reliance on imports amid an economic crisis [3][4] - Increased production from Vaca Muerta is expected to enhance Argentina's energy independence and economic prospects, with analysts estimating crude production could reach 1 million bpd by 2030 [4] Market Pressures - Despite its potential, Vaca Muerta faces challenges from global oil market pressures, including lower oil prices and reduced spending, which have led to a slowdown in drilling activities [5] - Other companies, such as TotalEnergies and GeoPark, have scaled back their involvement in the region, indicating a cautious approach to investment in Vaca Muerta [6][7] Regulatory Environment - Chevron emphasizes the need for a stable investment climate in Argentina, calling for competitive costs and predictable regulatory frameworks to support its expansion plans [8][9] - The company’s executives stress that uncertainties in capital movement and government policy could hinder the formation's potential [9] Future Outlook - Chevron's plans for increased output come amid mixed signals for shale development globally, but Vaca Muerta continues to show momentum with ongoing investments [10] - The anticipated Vaca Muerta South pipeline, expected to be operational by 2027, will further support production and export capabilities [10][11]

Core Viewpoint - Falcon Oil & Gas Ltd has secured approval from the Northern Territory Government for the Beneficial Use of Gas agreement, enabling the sale of appraisal gas from the Shenandoah South Pilot Project, marking a significant step in the company's operations in the Beetaloo sub-basin [2][6]. Company Developments - The approval allows the joint venture partners to sell appraisal gas of up to 60 terajoules (TJ) per day from the Pilot Project over a three-year period [6]. - An initial contract has been established to supply 40 million cubic feet per day (MMcf/d) of gas to the Northern Territory Government until mid-2041, aimed at enhancing energy security for the region [6]. - Construction of the A$140 million Sturt Plateau Compression Facility is set to commence, with Falcon having no cost exposure in this project [6]. - Gas sales to the Northern Territory Government via the Sturt Plateau Compression Facility are expected to begin in mid-2026, contingent on weather conditions and final stakeholder approvals [6]. Drilling Campaign - The 2025 drilling campaign is progressing with the successful drilling of the intermediate section of three new wells, and the horizontal section of the S2-5H well is currently being drilled [5][6]. - This campaign represents the first multi-well drilling program utilizing batch drilling in the Beetaloo Basin [6]. - Falcon has opted to reduce its participating interest in the three wells to 0%, thus incurring no cost exposure for their drilling [6]. - Stimulation of the S2-4H well, in which Falcon holds a 5% interest, is planned for the fourth quarter of 2025 [6]. Joint Venture Structure - Falcon Oil & Gas Australia Limited holds a 22.5% interest in the Beetaloo joint venture, while Tamboran (B2) Pty Limited holds a 77.5% interest [8]. - In the Shenandoah South Pilot Project, Falcon has a 5% interest, with Tamboran holding the remaining 95% [9]. Industry Context - The approval from the Northern Territory Government is the first granted under the new Beneficial Use of Gas legislation, indicating a regulatory shift that may facilitate further gas development in the region [6]. - The Beetaloo sub-basin is recognized for its significant low CO2 gas resources, which are being developed to support the global energy transition towards a lower carbon future [11].

Core Insights - Chevron Corporation and Exxon Mobil Corporation are nearing a significant agreement with Algeria to develop its vast natural gas reserves, including shale gas, marking a strategic entry into a major unconventional gas basin [1][7][8] - Algeria's shale gas reserves are estimated at 3,419 trillion cubic feet, with 707 trillion cubic feet technically recoverable, positioning it as the third-largest reserve globally, which could enhance Algeria's production and export capabilities [2][4] Group 1: Strategic Developments - Both companies have established partnerships, with Chevron signing a memorandum of understanding with Sonatrach in June 2024 and formalizing cooperation with ALNAFT in January 2025, indicating a commitment to develop hydrocarbon resources [3][6] - The anticipated agreements are expected to help Algeria increase its production target from 137 to 200 billion cubic meters, aligning with Europe's urgent need for alternative gas sources [4][6] Group 2: Market Positioning - The deal represents an opportunity for Chevron and Exxon to solidify their roles as reliable suppliers in the European market, which is seeking to diversify its energy sources away from Russian gas [4][8] - Success in Algeria would not only provide immediate returns but also establish a long-term presence in the energy sector, with potential for further expansion into both onshore and offshore resources [6][8] Group 3: Environmental Considerations - Developing shale gas in Algeria poses environmental challenges, including water resource demands and pollution risks, but both companies have extensive experience in managing such issues globally [5][6] - The companies aim to introduce advanced technologies and best practices to mitigate environmental impacts and gain local community support [5][6]

Core Viewpoint - Falcon Oil & Gas Ltd announced a record average 90-day initial production flow rate of 6.7 million cubic feet per day from the Shenandoah South 2H Sidetrack well in the Beetaloo Sub-basin, indicating significant commercial potential for the area [2][6]. Production Results - The SS-2H ST1 well achieved an average IP90 flow rate of 6.7 MMcf/d over 1,671 meters, setting a record in the Beetaloo Basin [2]. - The flow rate increased from 6.4 MMcf/d to 6.5 MMcf/d over the last 30 days, with a wellhead pressure of approximately 700 psi, reflecting a 3% decline in pressure from Day 60 [7][8]. Drilling Campaign - The 2025 drilling campaign is progressing, with the intermediate sections of the first two wells successfully drilled and the rig currently drilling the third well [8]. - The campaign is the first multi-well drilling program utilizing batch drilling in the Beetaloo Basin, aiming to complete the drilling phase of the five-well Shenandoah South pilot program [8]. Future Plans - The SS-2H ST1 well has been suspended in preparation for gas sales to the Northern Territory Government via the Sturt Plateau Compression Facility, expected to commence in mid-2026 [8]. - Falcon Oil & Gas Australia Limited has reduced its participating interest in the three wells to 0%, resulting in no cost exposure for the drilling of these wells [8].

Core Insights - Falcon Oil & Gas Ltd announced that the Shenandoah South 2H Sidetrack (SS-2H ST1) achieved an average 90-day initial production (IP90) flow rate of 6.7 million cubic feet per day (MMcf/d), setting a record in the Beetaloo Basin [2][6][17] - The well's production rate increased from 6.4 MMcf/d to 6.5 MMcf/d over the last 30 days, indicating potential for further optimization [7][8] - The company is progressing with its 2025 drilling campaign, which includes the drilling of three additional wells in the Beetaloo Basin [8][17] Company Overview - Falcon Oil & Gas Ltd is an international oil and gas company focused on the exploration and development of unconventional oil and gas assets, primarily in Australia [10] - Falcon Oil & Gas Australia Limited is a subsidiary of Falcon Oil & Gas Ltd, holding a 22.5% interest in the Beetaloo Joint Venture [11] Drilling Campaign - The 2025 drilling campaign is the first multi-well program utilizing batch drilling in the Beetaloo Basin, with the rig currently drilling the intermediate section of the third well (S2-5H) [8][17] - The completion of the intermediate section of the S2-5H well will lead to the drilling of the horizontal sections of three wells, completing the five-well Shenandoah South pilot program [8][17] Production and Sales - The SS-2H ST1 well has been suspended in preparation for gas sales to the Northern Territory Government via the Sturt Plateau Compression Facility, expected to commence in mid-2026 [8][17] - The wellhead pressure at the end of the 90-day period was approximately 700 psi, reflecting a 3% decline from Day 60 [8]