Good morning team - this is Both Barrels. Your daily dose of all things oil, gas, and energy, without the hot air.

Here’s what hit the wires today:

• Permian Resources splashes out on Earthstone Energy

• Strikes threaten Australian LNG supply

• Using wind to power cargo ships?

• plus much more

Let’s get to it…

📈 The numbers

European gas prices shot up at the prospect of strike-impacted supply cuts from Australia.

🗞️ Well-headlines

 🇺🇸 North America

• Permian Resources has agreed to acquire Earthstone Energy in an all-stock deal valued at $4.5 billion. The assets in the Delaware and Midland basins include 223k net acres and take PR’s production to over 300 kboe/d (BW).

• Ring Energy has completed its $65m acquisition of assets in the Permian Basin from Founders Oil & Gas (EP).

🇪🇺 Europe

• Poland’s Orlen has signed a deal to secure the regas capacity of a planned new 6.1mtpa FSRU terminal in the Gulf of Gdansk as it seeks to ween itself of Russian gas (RE).

• Equinor’s North Sea discovery hot streak continues. It announced a new discovery in the Troll/Farm area of 9-35 mmboe. It has struck lucky with 9 out of 12 discovery wells in the area since 2019 (RZ).

🇸🇦 The Middle East

• DNO has restarted production at its ~40 kbbl/d Tawke field in Kurdistan, Iraq after a four-month shut-in caused by the closure of the Iraq-Turkey pipeline export route (RE).

• ADNOC has reached an agreement with Japex to supply the Japanese company with LNG over a five-year period in a deal worth $550m. Volumes weren’t disclosed (RZ).

🇨🇳 Asia

• TotalEnergies and INPEX have acquired 100% of the the AC-RL7 permit in the Timor Sea from PTTEP for an undisclosed sum. The gas and condensate field will supply the partners’ mega Ichthys LNG liquefaction plant in Western Australia (EV).

• Unions at Woodside’s North West Shelf offshore gas platforms have announced plans to strike in a dispute over pay and conditions. Chevron’s Wheatstone and Gorgon LNG facilities are facing the same fate (RE).

📍Everywhere else

• Apache has announced plans to invest $1.4bn in Egypt’s energy sector. The US indy is one of the largest investors into Egypt with over 150 kboe/d of production in the country built over 27 years of activity (OP).

🌍 Geopolitics

• Left leaning Luisa Gonzalez is leading in Ecuador's presidential election. Electoral officials say she has 33%, while her closest rival Daniel Noboa, a businessman, is on 24%. The top two candidates will now go into a run-off on 15 October (BBC).

• Russia’s unmanned exploration craft has crashed into the moon. It was the country’s first lunar mission decades. Ooops. (CNN)

💨 Carbon, Climate & other energy stuff

• Several Saudi firms, including Aramco, have secured financing for a ~$2.4 billion solar project due to start operations in 2025 with a capacity of ~2.6GW. (OP)

• A Cargill cargo ship fitted with giant rigid sails has set off on it’s maiden journey. The company hopes the use of sails will help it save money on fuel…(BBC)

🛢️Bottom of the barrel

A friendly reminder that increasing renewable energy penetration generally leads to rising power prices.

Despite the green lobby claims, wind and solar make electricity more expensive by adding additional, hidden costs onto the system for back-up, curtailment, and transmission. These costs make their way directly into your monthly bills.

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Thanks for reading. Have a day out there. 🛢️🛢️