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Complements and enhances APA’s asset base in the Permian Basin; expected to be accretive to key financial metrics;
Adds to APA’s high-quality, short-cycle development inventory and increases oil mix; and
Strengthens APA’s position as a leading, diversified independent E&P with pro forma production of more than 500,000 barrels of oil equivalent (BOE) per day and pro forma enterprise value in excess of $21 billion.*

HOUSTON, Jan. 04, 2024 (GLOBE NEWSWIRE) —  APA Corporation (“APA” or the “Company”) (NASDAQ: APA) and Callon Petroleum Company (“Callon”) (NYSE: CPE) have entered into a definitive agreement under which APA will acquire Callon in an all-stock transaction valued at approximately $4.5 billion, inclusive of Callon’s net debt. Under the terms of the transaction, each share of Callon common stock will be exchanged for a fixed ratio of 1.0425 shares of APA common stock. The transaction is expected to be accretive to all key financial metrics and add to APA’s inventory of high quality, short-cycle opportunities. Callon’s assets provide additional scale to APA’s operations across the Permian Basin, most notably in the Delaware Basin, where Callon has nearly 120,000 acres. On a pro forma basis, total company production exceeds 500,000 BOE per day and enterprise value increases to more than $21 billion.*

Key Highlights

Combination of Callon’s Delaware-focused footprint with APA’s Midland-focused footprint provides scale and balance in the Permian Basin;
APA’s oil-prone acreage in the Midland and Delaware Basin combined will increase by more than 50% following the transaction;
Expected to be accretive on key financial and value metrics;
Estimated overhead, operational and cost-of-capital synergies to exceed $150 million annually; and
Additional scale anticipated to improve credit profile; pro forma balance sheet will remain strong with leverage at 1.1x net debt / adjusted EBITDAX.**

Management Commentary

“This transaction is aligned with APA’s overall portfolio strategy and fits all the criteria of our disciplined approach to evaluating external growth opportunities. Callon has built a strong portfolio in the Permian Basin that is complementary to our existing Permian assets and rounds out our opportunity set in the Delaware,” said John J. Christmann IV, APA’s CEO and president. “The acquisition is accretive and unlocks value for both shareholder bases, as increased scale will enable us to realize significant overhead and cost-of-capital synergies. The pro forma footprint in the Permian will also create opportunities to capture meaningful operating synergies.”

“We are very proud of the significant steps we have taken to enhance Callon’s asset base, operational performance and balance sheet over the past several years,” said Joe Gatto, Callon’s president and CEO. “This combination with APA now provides for an enhanced value proposition for our shareholders built on their depth of experience and strong execution in the Permian Basin, flexibility for increased capital allocation, and ongoing delineation and optimization efforts. Importantly, I would like to personally thank each and every Callon employee for their role in building this company. I am very proud of this team and what we have achieved together.”

Combined Permian Asset Position and Preliminary 2024 Planned Activity

Pro forma average daily Permian Basin production was 311 Mboe/d in 3Q 2023, which represents a 48% increase from APA’s Permian Basin production on a standalone basis. APA’s oil production as a percentage of BOE’s in the Permian increases from approximately 37% to 43% in 3Q 2023, on a pro forma basis.

APA will provide additional activity plans and details post closing.

Transaction Details

In this all-stock transaction, each outstanding share of Callon common stock will be exchanged for 1.0425 shares of APA common stock, representing an implied value to each Callon share of $38.31 per share based on the closing price of APA common stock on Jan. 3, 2024. APA is expected to issue approximately 70 million shares of common stock in the transaction. After closing, existing APA shareholders are expected to own approximately 81% of the combined company and existing Callon shareholders are expected to own approximately 19% of the combined company. APA expects to retire the existing debt at Callon and replace it with APA term loan facilities totaling $2.0 billion. The term loan facilities are expected to offer improved optionality for near-term debt reduction. JPMorgan Chase Bank, N.A., Citigroup Global Markets Inc. and Wells Fargo Bank, National Association have jointly provided $2.0 billion of committed financing for the deal.

The transaction has been unanimously approved by the Boards of Directors of both APA and Callon and is expected to close during the second quarter of 2024, subject to customary closing conditions, termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and approval of the transaction by shareholders of both APA and Callon. Upon the closing of the transaction, a representative from Callon will join the APA board. APA’s executive management team will lead the combined company with the headquarters remaining in Houston, Texas.

Pro Forma APA Positioning

“APA has a proven ability to deliver strong results from its unconventional assets in the Permian Basin, and we look forward to building on the progress that the team at Callon has made within its asset base. This transaction is aligned with our strategy of maintaining and growing a diversified portfolio, underpinned by large-scale core areas of operation while continuing to build a portfolio of medium and longer-term exploration-driven development opportunities,” Christmann said.

Following the closing, the company’s worldwide pro forma production mix will be approximately 64% U.S. / 36% international.

APA’s global portfolio includes ongoing development on large-scale legacy assets in the U.S. and Egypt. The company is also advancing a FEED process for a large-scale FPSO development offshore Suriname. In addition to current production and development activities across the globe, APA maintains a differentiated exploration portfolio, which includes newly acquired large-scale blocks offshore Uruguay and onshore state-land leases in Alaska.

Advisors

Citi and Wells Fargo Securities LLC are acting as financial advisors to APA, and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to APA. Morgan Stanley & Co. LLC is acting as lead advisor to Callon, and RBC Capital Markets, LLC is also acting as financial advisor to Callon. Kirkland & Ellis LLP is serving as legal advisor to Callon.

Conference Call

APA and Callon will host a joint conference call on Thursday Jan. 4, 2024, to discuss the transaction at 7:30 a.m. Central (8:30 a.m. Eastern). The conference call will be webcast from APA’s website at www.apacorp.com.

About APA

APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com. Additional details regarding Suriname, ESG performance and other investor-related topics are posted at investor.apacorp.com.

About Callon Petroleum

Callon Petroleum Company is an independent oil and natural gas company focused on the acquisition, exploration and sustainable development of high-quality assets in the Permian Basin in West Texas.

* Pro forma enterprise value is derived from the addition of each company’s market capitalization based on closing stock prices on 1/3/24, plus the net debt of each company as of 9/30/23.

** Net debt is as of 9/30/23, and adjusted EBITDAX is measured over the four quarters ended 9/30/23.

Forward-Looking Statements

This press release relates to a proposed business combination transaction between APA and Callon and contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on the combined company’s business and future financial and operating results, the expected amount and timing of synergies from the proposed transaction, the anticipated closing date for the proposed transaction, and other aspects of our operations or operating results. Words and phrases such as “anticipate,” “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “might,” “plan,” “potential,” “possibly,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “prospect,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. All such forward-looking statements are based upon current plans, estimates, expectations, and ambitions that are subject to risks, uncertainties, and assumptions, many of which are beyond the control of APA and Callon, that could cause actual results to differ materially from those expressed or forecast in such forward-looking statements.

The following important factors and uncertainties, among others, could cause actual results or events to differ materially from those described in these forward-looking statements: the risk that the approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 is not obtained or is obtained subject to conditions that are not anticipated by APA and Callon; uncertainties as to whether the potential transaction will be consummated on the expected time period or at all, or if consummated, will achieve its anticipated benefits and projected synergies within the expected time period or at all; APA’s ability to integrate Callon’s operations in a successful manner and in the expected time period; the occurrence of any event, change, or other circumstance that could give rise to the termination of the transaction, including receipt a competing acquisition proposal; risks that the anticipated tax treatment of the potential transaction is not obtained; unforeseen or unknown liabilities; customer, shareholder, regulatory, and other stakeholder approvals and support; unexpected future capital expenditures; potential litigation relating to the potential transaction that could be instituted against APA and Callon or their respective directors; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the effect of the announcement, pendency, or completion of the potential transaction on the parties’ business relationships and business generally; risks that the potential transaction disrupts current plans and operations of APA or Callon and their respective management teams and potential difficulties in Callon’s ability to retain employees as a result of the transaction; negative effects of this announcement and the pendency or completion of the proposed acquisition on the market price of APA’s or Callon’s common stock and/or operating results; rating agency actions and APA’s and Callon’s ability to access short- and long-term debt markets on a timely and affordable basis; various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches, and earthquakes, and cybersecurity attacks, as well as security threats and governmental response to them, and technological changes; labor disputes; changes in labor costs and labor difficulties; the effects of industry, market, economic, political, or regulatory conditions outside of APA’s or Callon’s control; legislative, regulatory, and economic developments targeting public companies in the oil and gas industry; and the risks described in APA’s and Callon’s respective periodic and other filings with the U.S. Securities and Exchange Commission (“SEC”), including their most recent Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.

Forward-looking statements represent management’s current expectations and are inherently uncertain and are made only as of the date hereof. Except as required by law, neither APA nor Callon undertakes or assumes any obligation to update any forward-looking statements, whether as a result of new information or to reflect subsequent events or circumstances or otherwise.

Cautionary note to investors

The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC’s definitions for such terms. This press release may use certain terms, such as “resources,” “potential resources,” “resource potential,” “estimated net reserves,” “recoverable reserves,” and other similar terms that the SEC guidelines strictly prohibit oil and gas companies from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in APA’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and Callon’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. A copy of APA’s Annual Report on Form 10-K is available free of charge on APA’s website at https://investor.apacorp.com. A copy of Callon’s Annual Report on Form 10-K is available free of charge on Callon’s website at https://callon.com/investors. You may also obtain these reports from the SEC by calling 1-800-SEC-0330 or from the SEC’s website at www.sec.gov.

Non-GAAP Financial Measures
This press release includes information not prepared in conformity with generally accepted accounting principles (GAAP). Net debt and adjusted EBITDAX are non-GAAP measures. The non-GAAP information should be considered by the reader in addition to, but not instead of, financial information prepared in accordance with GAAP. A reconciliation of the differences between these non-GAAP financial measures and the most directly comparable GAAP financial measures can be found in the companies’ quarterly results posted on APA’s website at https://investor.apacorp.com and on Callon’s website at https://callon.com/investors.

No Offer or Solicitation
This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Additional Information about the Merger and Where to Find It
In connection with the proposed transaction, APA intends to file with the SEC a registration statement on Form S-4 that will include a joint proxy statement of APA and Callon and that also constitutes a prospectus of APA common stock. Each of APA and Callon may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the joint proxy statement/prospectus or registration statement or any other document that APA or Callon may file with the SEC. The definitive joint proxy statement/prospectus (if and when available) will be mailed to shareholders of APA and Callon. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS, AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the registration statement and joint proxy statement/prospectus (if and when available) and other documents containing important information about APA, Callon, and the proposed transaction, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by APA will be available free of charge on APA’s website at https://investor.apacorp.com. Copies of the documents filed with the SEC by Callon will be available free of charge on Callon’s website at https://callon.com/investors.

Participants in the Solicitation
APA, Callon, and certain of their respective directors, executive officers, and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of APA, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in APA’s proxy statement for its 2023 Annual Meeting of Shareholders, which was filed with the SEC on April 11, 2023, and APA’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 23, 2023. Information about the directors and executive officers of Callon, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Callon’s proxy statement for its 2023 Annual Meeting of Shareholders, which was filed with the SEC on March 13, 2023, and Callon’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 23, 2023. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available. Investors should read the joint proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from APA or Callon using the sources indicated above.

Source: Investor.apacorp.com

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It will take some time until the official figures are available, but last year the German economy likely shrank. Looking back, economists and industry associations have rarely been so unanimous in their views: 2023 was a year of stagnation.

The signs for 2024 don’t look encouraging either.

Or as Moritz Kraemer, the chief economist at Landesbank Baden-Württemberg, put it more pointedly in a recent TV interview about quarterly figures: “I don’t want to argue about whether it’s plus 0.2% or minus 0.2%. The fact is, we are stagnating.”

Kraemer compared the ongoing sluggish growth of the German economy to the waves of a corrugated sheet of metal. “We are moving in a kind of ‘corrugated economy.’ It goes up and down a little bit, but actually we are lying flat on the ground.”

How did Germany get here?

The reasons why Germany is suffering are well known. Consumers are holding back due to inflation and rising prices. Plus the sluggish global economy is putting a strain on exporters, which used to be a driving force of the economy.

In addition, due to unstable energy prices, numerous international corporations are putting their investment plans on hold. Or worse, they are building new production capacities abroad — in the United States or China, far away from the European Union.

Finally, the ambitious green transformation of Europe’s largest economy, driven by economy and climate minister, Robert Habeck, is costing a lot of money.

Germany’s climate and industrial projects are in jeopardy after a major court decision about the federal budget cut fundingImage: Sebastian Gollnow/dpa/picture alliance

A balanced budget and a big hole

Last year in mid-November, just when it seemed things couldn’t get worse, the Constitutional Court rejected the government’s reallocation of €60 billion ($65 billion) in COVID-19 loans for climate protection and the modernization of the economy.

The government’s plans relied heavily on using this money in the coming years, and the court’s decision created a giant hole in the budget.

You’d think that parliament could simply approve new loans — this time not for COVID measures, but for the energy transition and other purposes.

But Germany’s “debt brake” won’t allow this. The fiscal rule, added to the constitution in 2009, forces the government to keep its books balanced and strictly limits new borrowing. Approving additional debt of €60 billion had only been allowed by declaring the pandemic an emergency, which in turn made it possible to temporarily suspend the debt brake.

Less spending, less growth

The ruling threw the government’s budget calculations out of the window and caused major uncertainty among businesses and consumers. And it forced the government to look for savings options.

At the end of November, after rounds of hard negotiations, the government agreed on a supplementary budget for 2023 and suspended the debt brake for that year.

The budget for 2024 was slashed considerably. Some fear that the planned cost cutting, fewer subsidies and higher energy prices could slow the economy further, and even rekindle inflation.

As a result of the ruling, Habeck’s climate and industrial policy projects are in jeopardy, too. His ministry estimated that this could result in up to half a percentage point less economic growth.

According to ING chief economist Carsten Brzeski, the ruling has revealed two new risk factors for the German economy: fiscal austerity and political uncertainty.

“Things are going really bad for Germany right now,” said Thomas Gitzel, chief economist at VP Bank. The government must act urgently. “But the Constitutional Court’s ruling could force austerity measures on the government that could lead to an additional dampening of growth.”

Looking at the numbers from different sides

Even before the court ruling, the European Commission had seen Germany as bringing up the rear in terms of growth in the eurozone next year, with an expected increase of 0.8%.

The German government’s current economic forecast still assumes an increase in gross domestic product (GDP) of 1.3% for 2024.

But nearly all of the most respected economic researchers expect German GDP growth of well below 1% for 2024.

The Organization for Economic Cooperation and Development (OECD) predicts an increase of 0.6%. In contrast, the average growth of all the 38 OECD member countries is estimated at 1.4% according to numbers released on November 29.

Crisis in seemingly every direction

“The energy crisis hit Germany more than other countries because industry plays a more important role in this country and dependence on Russian gas was much higher than in other countries,” said OECD economist Isabell Koske, summarizing the reasons for the economic weakness.

High inflation reduced the purchasing power of households and thus affected consumption. “The government budget crisis is also unsettling companies and consumers,” she said.

It’s crucial to “solve the budget crisis as quickly as possible in order to give companies and households planning security and confidence in the future,” said Koske. A solution should include cuts in expenditure, increases in revenue and a reform of the debt brake.

No growth at all in the end?

The experts at Deutsche Bank are even more pessimistic. Stefan Schneider from DB Research thinks Germany’s economy will shrink in 2024.

Moritz Schularick, president of the Kiel Institute for the World Economy, summed up the stress factors for the German economy in a speech at a Bundesbank reception in Berlin in mid-October. Germany has made three big bets in the past decades that are currently causing problems for the country.

“A bet on Russian gas as a cheap energy source for industry. A bet on the Chinese economic miracle as a driver for German exports. And a bet on Pax Americana, on the outsourcing of national security to America,” he said. On all three points, the country has come to the end of the road.

Source: Dw.com

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At the meeting of the Standing Committee of the State Council, chaired by Chinese Premier Li Qiang, approval was granted for units 3 and 4 at China General Nuclear’s (CGN’s) existing Taipingling nuclear power plant in Guangdong province, as well as units 1 and 2 at China National Nuclear Corporation’s (CNNC’s) new Jinqimen nuclear power plant in Zhejiang province.

The Taipingling plant will eventually have six Hualong One reactors. The construction of the first and second units began in 2019 and 2020, respectively. Unit 1 is scheduled to start up in 2025, with unit 2 following in 2026.

Cold functional tests began at Taipingling 1 on 22 December, CGN announced. The tests mark the first time the reactor systems are operated together with the auxiliary systems. Cold functional tests are carried out to confirm whether components and systems important to safety are properly installed and ready to operate in a cold condition. The main purpose of these tests is to verify the leak-tightness of the primary circuit and components – such as pressure vessels, pipelines and valves of both the nuclear and conventional islands – and to clean the main circulation pipes.

Units 1 and 2 of the Jinqimen plant – which CNNC notes have been included in the national plan and have undergone a comprehensive safety assessment review – have also been approved. CNNC subsidiary CNNC Zhejiang Energy Co Ltd will be responsible for project investment, construction and operations management of the new plant.

On 31 July last year, China’s State Council approved the construction of six nuclear power units: units 5 and 6 of the Ningde plant in Fujian Province; units 1 and 2 of the Shidaowan plant in Shandong Province; and units 1 and 2 of the Xudabao plant in Liaoning Province. The latest approvals bring the total number of nuclear power projects approved in 2023 to ten, the same number approved in 2022.

Construction milestones

The Hualong One design features a double-layered containment structure. The main function of the containment building is to ensure the integrity and leak tightness of the reactor building, and it plays a key role in the containment of radioactive substances.

Installation of the inner dome at Changjiang 4 (Image: CNNC)

CNNC announced that the inner dome of the containment building of unit 4 at the Changjiang plant in Hainan province and the outer dome of unit 2 at the Zhangzhou plant in Fujian province were hoisted into place on 27 and 28 December, respectively.

Hoisting of the outer dome at Zhangzhou 2 (Image: CNNC)

Meanwhile, the reactor pressure vessel of unit 3 of the Sanmen plant in Zhejiang province was hoisted into place on 25 December. The “open-top method” was used, which involved using a 2600-tonne crane to install the vessel – weighing more than 271 tonnes – prior to the dome of the containment building being hoisted into place.

The reactor pressure vessel is move into place at Sanmen 3 (Image: SNERDI)

The first safety-related concrete was poured for the nuclear island of Sanmen 3 on 28 June, marking the official start of its construction. Phase II (units 3 and 4) of the Sanmen plant – which already houses two operating Westinghouse AP1000 units – will comprise two CAP1000 reactors, the Chinese version of the AP1000. The units are scheduled to start up in 2027 and 2028, respectively.

Source: World-nuclear-news.org

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One of the frequent boasts then-candidate Joe Biden made during his 2020 run for the presidency was that his administration would mount a frontal assault on the domestic oil and gas business, outlaw hydraulic fracturing and put policies in place that would assure the industry was out of business within a decade. The President and his energy secretary, Jennifer Granholm, made a habit of repeating that gone-within-a-decade promise throughout 2021 and 2022 as they aggressively worked to cement their Green New Deal agenda into place.

Funny thing, though: A number of months have passed since we heard either Biden or Granholm repeat that pledge. In fact, I was unable to find a single instance of either making the statement in 2023 at all. Granholm had a prime opportunity to do that when she participated in a December 12 meeting of the National Petroleum Council, a DOE advisory committee made up largely of oil executives that serves at her pleasure. But rather than go there one more time, the Secretary talked about her belief that the industry has a “trust gap” with the public related to climate issues, and urged the executives to do more to rein in their emissions.

“People on both sides of this are not going to hold hands and sing Kumbaya,” Granholm said. “But I do think there is an opportunity for those represented in this room to continue to amplify what you all are doing in investing and curbing emissions.”

This noticeable moderation in the administration’s anti-oil and gas rhetoric could be a tacit admission of defeat in its initial goals to do away with the prosperity-creating industry. The proof of that failure comes in the form of current data from DOE’s own Energy Information Administration noting that the US industry will finish 2023 by producing all-time record volumes of both oil and natural gas during the year. Mind you, these are not just records for the United States, but higher volumes than have ever been produced by any nation on earth in a single year.

Oh.

Not that Granholm and fellow cabinet member Deb Haaland, the life-long anti-oil and gas activist who Biden appointed as his Interior Secretary, haven’t been trying. While Granholm’s Energy Department has invested absurd amounts of time and taxpayer money on efforts to ban gas stoves and other natural gas appliances, Haaland and her staff have spent an amazing amount of their own time and energy devising excuses for refusing to hold federal lease sales and issue permits for energy development on federal lands and waters in a timely fashion.

Efforts at those two departments have been complemented by EPA Administrator Michael Regan and his staff at the EPA, who have worked overtime to target the oil, gas, and coal industries with an array of emissions and other regulations designed to drive up costs and delay projects for precious little environmental benefit. At the same time, the Federal Energy Regulatory Commission (FERC) has also worked to delay and obstruct the building of much-needed new interstate pipelines over which it has permitting authority.

Despite this multi-pronged regulatory and permitting assault on its ability to get its business done, the domestic industry managed to not only keep growing and meeting consumer demand, but to set new production records. It’s quite an amazing achievement.

What it all shows is just how limited any president’s or congress’s power really is to override the fundamental workings of the free market. U.S. consumers demand oil and natural gas because they and their related products are so interwoven into the fabric of modern society and prosperity. Try as Biden officials might to force a transition to hand-picked rent seeking industries like wind, solar and electric vehicles, the markets will always make the final determinations related to which products and energy sources succeed or fail.

Until Biden and his fellow Democrat central planners find a way to basically destroy America’s free market system and replace it with one featuring EU-style authoritarian command-and-control, their efforts to put America’s oil and gas industry out of business will always be doomed to fail.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.

Source: Dailycaller.com

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The post DAVID BLACKMON: There’s Only So Much Joe Biden Can Do To Kill Oil And Gas — And Thank Goodness For That appeared first on Energy News Beat.

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Copper is headed for a price spurt over the next two years, as mining supply disruptions coincide with higher demand for the metal.
Rising demand driven by the green energy transition and a decline in the U.S. dollar strength come the second half of 2024 will fuel support for copper prices.
Copper prices on the London Metal Exchange last saw an all-time record high of $10,730 per ton in March last year.

Copper prices are set to soar more than 75% over the next two years amid mining supply disruptions and higher demand for the metal, fueled by the push for renewable energy.

Rising demand driven by the green energy transition and a likely decline in the U.S. dollar in the second half of 2024 will push copper prices higher, according to a report by BMI, a Fitch Solutions research unit.

Markets are banking on the U.S. Federal Reserve to cut rates this year which will weaken the dollar and in turn make the greenback-priced copper more attractive to foreign buyers.

“The positive view for copper is more on macro factors,” Bank of America Securities’ head of Asia -Pacific basic materials, Matty Zhao, told CNBC, citing likely Fed rate cuts and a weaker U.S. dollar.

Additionally, at the recent COP28 climate change conference, more than 60 countries backed a plan to triple global renewable energy capacity by 2030, a move that Citibank says “would be extremely bullish for copper.”

In a December report, the investment bank forecast that the higher renewable energy targets would boost copper demand by extra 4.2 million tons by 2030.

This would potentially push copper prices to $15,000 a ton in 2025, the report added, way higher than the record peak of $10,730 per ton scaled in March last year.

“This assumes a very soft landing in the U.S. and Europe, an earlier global growth recovery, significant China easing,” Citi analysts said, while also emphasizing on continued investments in the energy transition sector.

A growing economy tends to boost demand for copper, which is used in electrical equipment and industrial machinery. The metal’s demand is considered a proxy for economic health.

Low supply, high demand

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