Oil Daily | EOG Resources Expands in Utica Shale with $5.6 Billion Deal for Encino Acquisition Partners
Market BriefSaturday, May 31, 2025 8:01 am ET
1min read【Company News】
EOG Resources is expanding its presence in the Utica shale by acquiring Encino Acquisition Partners for $5.6 billion. With this acquisition, EOG gains 1.1 million net acres and 275,000 boe/d in production. The deal, funded by new debt and cash, positions EOG alongside its holdings in the Delaware Basin and Eagle Ford. 【Global Oil Supply and Demand】
U.S. gasoline consumption over Memorial Day weekend increased by 2% from last year, driven by lower gasoline prices. With prices averaging $3.162 per gallon, the rise in demand suggests profitable outcomes for U.S. oil refiners this summer. A record 45.1 million people traveled, benefiting from the lower prices and increasing demand. 【Oil-Producing Countries Dynamics】
A supertanker carrying Russia's ESPO crude is anchored near China, indicating potential weaker demand in Asia. The unusual floating storage of ESPO, favored by Chinese refiners, suggests a lack of buyers within the typical sales window. Chinese refiners are cautious due to potential sanctions, while independent refiners purchase cheaper Russian oil. 【Latest Oil Policies】
The European Commission may propose more flexible climate targets, allowing EU countries some leeway in achieving a 90% emissions cut by 2040. The plan could involve buying carbon credits or easing targets for certain industries. The EU aims for carbon neutrality by 2050, but stringent climate goals face backlash over potential economic impacts. 【Industry News】
China has removed a 125% tariff on U.S. ethane imports, but U.S. exporters must now obtain licenses to ship ethane and butane to China. The tariff removal may boost U.S. ethane production and exports, yet the new licensing requirement could delay trade. U.S. ethane exports benefit as Asian petrochemical firms shift feedstock preferences.
EOG Resources is expanding its presence in the Utica shale by acquiring Encino Acquisition Partners for $5.6 billion. With this acquisition, EOG gains 1.1 million net acres and 275,000 boe/d in production. The deal, funded by new debt and cash, positions EOG alongside its holdings in the Delaware Basin and Eagle Ford. 【Global Oil Supply and Demand】
U.S. gasoline consumption over Memorial Day weekend increased by 2% from last year, driven by lower gasoline prices. With prices averaging $3.162 per gallon, the rise in demand suggests profitable outcomes for U.S. oil refiners this summer. A record 45.1 million people traveled, benefiting from the lower prices and increasing demand. 【Oil-Producing Countries Dynamics】
A supertanker carrying Russia's ESPO crude is anchored near China, indicating potential weaker demand in Asia. The unusual floating storage of ESPO, favored by Chinese refiners, suggests a lack of buyers within the typical sales window. Chinese refiners are cautious due to potential sanctions, while independent refiners purchase cheaper Russian oil. 【Latest Oil Policies】
The European Commission may propose more flexible climate targets, allowing EU countries some leeway in achieving a 90% emissions cut by 2040. The plan could involve buying carbon credits or easing targets for certain industries. The EU aims for carbon neutrality by 2050, but stringent climate goals face backlash over potential economic impacts. 【Industry News】
China has removed a 125% tariff on U.S. ethane imports, but U.S. exporters must now obtain licenses to ship ethane and butane to China. The tariff removal may boost U.S. ethane production and exports, yet the new licensing requirement could delay trade. U.S. ethane exports benefit as Asian petrochemical firms shift feedstock preferences.
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