It was a week when oil prices logged their seventh straight decline while natural gas futures continued to shine.
The headlines revolved around energy biggie Shell’s SHEL first oil production from a deepwater project offshore Malaysia and Chevron’s (CVX) Venezuela setback. Developments associated with The Williams Companies WMB, Liberty Energy LBRT and VAALCO Energy EGY also grabbed attention.
Overall, it was a mixed seven-day period for the sector. West Texas Intermediate (WTI) crude futures decreased around 3.9% to close at $67.04 per barrel, but natural gas prices jumped some 15% to end at $4.40 per million British thermal units (MMBtu).
Crude price fell below $70 as tariff concerns, weakening consumer confidence and production increase by OPEC+ contributed to this downward pressure.
Meanwhile, the dramatic rise in natural gas prices was fueled by expectations of cold weather in the remainder of the winter withdrawal season.
1. Shell, one of the largest oil and gas supermajors, has announced the commencement of the first oil production from the Phase 4 expansion of its deepwater Gumusut-Kakap-Geronggong-Jagus East offshore project in Malaysia. This breakthrough highlights SHEL's continued commitment to bolstering upstream operations, particularly in deepwater oil exploration, as it adapts to the evolving global energy landscape.
The Gumusut-Kakap project, located off the coast of Sabah, Malaysia, represents one of SHEL’s most ambitious and successful offshore ventures. The recently launched Phase 4 is set to further solidify the company’s position in Malaysia’s rapidly growing offshore oil industry. For SHEL, this development is key to its broader strategy to boost output and support global energy demands.
The Phase 4 development’s contributions to global energy production are significant as SHEL continues to expand its portfolio of upstream projects. This expansion is in line with the company’s strategic goals for 2023-2025, which include bringing several major upstream projects online. By 2025, SHEL anticipates a peak production of an additional 500,000 barrels of oil equivalent per day (boe/d) from these new developments. (Shell Starts Oil Production From Gumusut-Kakap Phase 4 Project)
2. U.S. energy major Chevron has received a 30-day notice from the Trump administration to stop pumping and selling Venezuelan oil and wrap up its operations in the country. The deadline, set for April 3, provides the company only 30 days instead of the normal six-month wind-down period.
Since 2022, Chevron has been allowed to operate in Venezuela as an exception to U.S. sanctions, exporting crude to the United States and recovering billions in pending debt. However, with the new directive, the company must halt its operations.
A similar wind-down order was provided by Trump’s administration in 2020, which allowed Chevron to continue production in Venezuela but banned its exports or imports to the United States. (Chevron Gets Short 30 Days Notice to End Venezuela Operations)
3. Leading midstream operator The Williams Companies recently announced a significant $1.6 billion agreement to develop onsite natural gas and power generation infrastructure for an undisclosed investment-grade company. The project, anticipated to be completed in the second half of 2026, will enhance power availability in grid-constrained markets, ensuring a reliable energy supply. This venture marks Williams’ first major step into power innovation, reinforcing its commitment to delivering fast, efficient solutions to high-demand regions.
WMB is well-positioned to capitalize on the rising demand for natural gas, driven significantly by the increasing energy needs of artificial intelligence and data centers. With its existing network handling a third of the U.S. natural gas and significant expansion projects in the pipeline, the company is set to benefit from favorable industry dynamics and growth prospects.
Per the terms of the agreement, Williams has agreed to invest about $1.6 billion to provide natural gas and power pipeline infrastructure to an investment-grade company. The project is anticipated to be completed by the second half of 2026, provided the company receives all the required permits on time. (Williams Inks $1.6B Deal to Provide Natural Gas & Power Infrastructure)
4. Oilfield service provider Liberty Energy has announced the acquisition of IMG Energy Solutions (“IMG”), a well-established developer of distributed power systems. This strategic move enhances Liberty Power Innovation, a division of LBRT, by incorporating IMG’s expertise in engineering design, construction management, software control systems and power marketing. The acquisition allows LBRT to expand its energy solutions portfolio, particularly in the PJM market, where IMG has a strong presence.
With more than a decade of experience in power system deployment, IMG has developed a highly efficient modular power block design. This fourth-generation technology offers a standardized, scalable and pre-tested configuration, reducing installation complexities while maintaining reliability. Its self-contained nature ensures adaptability to various sites without the need for extensive redesign, making the technology ideal for data centers, industrial facilities and large-scale microgrids.
The modular power approach provides rapid deployment capabilities, minimizing downtime and ensuring an efficient, uninterrupted power supply. The design also supports lower emissions and optimized operational costs, aligning with Liberty’s commitment to sustainable energy solutions. By integrating this technology, LBRT strengthens its ability to meet growing energy demands with flexible and resilient power infrastructure. (Liberty Energy Acquires IMG Energy to Expand Power Solutions)
5. VAALCO Energy, a U.S.-based independent exploration and production firm, has announced that it has entered an agreement to acquire a 70% stake in the CI-705 block off the coast of Côte d’Ivoire. The company has assumed operatorship of the block alongside its partners Ivory Coast Exploration Oil & Gas and PETROCI, the national oil company of Côte d’Ivoire.
VAALCO has also mentioned that it will hold 100% paying interest in the block outlined via a commercial carry agreement. This implies that EGY would be responsible for taking over the costs related to exploration and production activities on the block. Block CI-705 is located near Eni’s Calao discovery in Côte d’Ivoire, which is deemed to be the second-largest hydrocarbon discovery in the country.
The CI-705 block is located in the Tano Basin, approximately 70 kilometers west of VAALCO’s CI-40 block. The block spans an area of approximately 2,300 sq. km. The water depth at the site varies between zero and 2,500 meters. (VAALCO Expands in West Africa, Acquires 70% Stake in Block CI-705)
The following table shows the price movement of some major oil and gas players over the past week and during the last six months.
Company Last Week Last 6 Months
XOM -2.1% -1.8%
CVX -1.4% +9.6%
COP -8.6% -7.8%
OXY -3.2% -9.3%
SLB -0.7% +0.3%
RIG +3% -28.9%
VLO -2.9% -8.3%
MPC -8.4% -17.6%
With oil and gas moving down for the week, stocks were mostly southbound. The Energy Select Sector SPDR — a popular way to track energy companies — edged down 3.9% last week. But over the past six months, the sector tracker has gone up 2.7%.
Market participants will keep a close eye on regular data releases to gauge the direction of commodities. U.S. government statistics on oil and natural gas, one of the most reliable indicators, will be a key focus for energy traders. Fuel demand and stock drawdowns in the coming weeks will shape commodity price trends. Additionally, Baker Hughes' rig count data, a critical indicator of U.S. crude and natural gas production trends, is also closely monitored.
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