Sadly, one of my college friends and Houston alumni soccer teammates passed away suddenly this weekend. He was not even 60 yet—so young, with so much life in front of him. It reminded me that we really should take good care of our health and cherish the people around us and the precious time we spend with each other.
In the meantime, let’s dig into two pieces of energy news from the past week.
Shangyou Nie
Editor, Well Read
Repsol Evaluates Its Next Move for Its Upstream Business
The latest: During its Q3 analyst meeting on 30 October, Repsol CEO said that the company is preparing a “liquidation event” for its upstream business in 2026, which could take the form of:
An IPO in the United States
A merger with a U.S.-listed company
The introduction of a new private investor
Repsol held talks with APA and other companies, according to Bloomberg.
APA’s (market cap $9 billion) share prices increased 7 percent upon the news of a potential merger with Repsol.
About Repsol:
Repsol has a market cap of $22 billion.
Its share price has grown by 30 percent in 2025.
Repsol has four business divisions: Upstream, Industrial, Customer, and Low Carbon.
According to Repsol, it is present in 21 countries, with oil and gas production in 11 of them.
Repsol has a gas-focused portfolio with a 35:65 oil/gas production ratio.
All four divisions turned profits in Q3, including $36 million for the Low Carbon division.
Repsol Upstream produced 551,000 barrels of oil equivalent per day in Q3 2025.
In July, Repsol U.K. assets combined with NEO Energy to become the largest oil and gas producer in the region, with 130,000 boepd in 2025.
In 2022, private equity firm EIG bought 25 percent of Repsol for $4.7 billon, valuing Repsol at $19 billion.
According to one person familiar with the 2022 transaction, Repsol and EIG initially planned to focus on upstream business in a handful of key countries/regions, including the United States and Brazil, while exiting most other geographies in preparation for an IPO in 2026.
The initial plan might have been changed, similar to what its European peers BP and Shell have done to re-focus on oil and gas businesses.
Repsol CEO Josu Jon Imaz San Miguel said during the company’s Q3 analyst meeting that Repsol is not considering selling any other upstream country’s assets.
Repsol will have its Capital Market Day in March 2026. By then, the Spanish major will likely announce the exact strategic path it will take for its upstream business.
What will Repsol do with its Venezuela businesses?
Sponsored
Webinar Tomorrow: Discover Accel, the World's First Drop Node
Join our experts as they demonstrate how Accel enables you to seamlessly manage thousands of nodes—from field to base camp—using powerful hardware and intuitive software that enhance productivity and deliver peace of mind.
Pennsylvania’s Governor Josh Shapiro (D) signed a bill into law last week to exit the Regional Greenhouse Gas Initiative. This is seen as a step back on climate change, as Pennsylvania tries to position itself as a major hub for AI and data centers by leveraging its fossil fuel resources.
The latest:
The cap-and-trade initiative is meant to help reduce greenhouse emissions.
According to Bloomberg, the state Senate and House of Representatives both voted to end the climate initiative.
Background:
RGGI was set up in 2008 by 11 states in the U.S. Northeast, including: Connecticut, Delaware, Massachusetts, Maine, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.
Pennsylvania joined the RGGI in 2019.
RGGI has set up a regional cap on CO2 emissions for power plants within each participating state
The emissions cap is meant to decrease over time.
Power plants within RGGI must acquire one RGGI CO2 allowance for every ton of CO2 they emit.
According to RGGI, the states have reduced emissions by 50 percent since 2005, much faster than the rest of the country.
It also raised over $8.6 billion to invest into local communities.
Pennsylvania in the bigger picture:
Pennsylvania is where the modern oil industry started when Colonel Edwin Drake drilled the first oil discovery well in 1859.
Pennsylvania is part of the Appalachian basins with both Marcellus and Utica shale plays.
Shapiro has been suggested by some as a potential presidential candidate for 2028.
In the United States, two of the biggest states—California and Texas—represent two bookends on the energy transition and climate change.
California’s governor Gavin Newson was in Brazil attending part of the activity for COP30.
Pennsylvania is also a key part for the U.S. coal industry. It has 14 coal-fired power plants, the most in the United States.
According to the EIA, Pennsylvania is United States’ second largest gas producer in 2023, producing about 20 percent of the country total. Only Texas produced more.
The recent boom in AI and data centers near Philadelphia, Pittsburgh, and Lehigh are leading to job creation and a dramatic increase in demand for power, especially gas-fired plants.
What they’re saying: “I am looking forward to aggressively pushing for policies that create more jobs in the energy sector, bring more clean energy onto our grid, and reduce the cost of energy for all Pennsylvanians,” said Shapiro.
What to watch: Will the other 10 states in RGGI stay or exit?
Sponsored
Ready to Elevate How You Explore and Evaluate?
AI/ML tools integrate with our interpretation software and upstream data, supporting consistent, iterative workflows from data preparation through analysis.
👍 If you enjoyed this edition of Well Read, consider supporting AAPG's brand of newsletters by forwarding to a friend or colleague and signing up for our other newsletters here.
➡️ Was this newsletter forwarded to you? Sign up for Well Read here.
AAPG thanks our advertisers for their support. Sponsorship has no influence on editorial content. If you're interested in supporting AAPG digital products, reach out to Melissa Roberts.
.png?upscale=true&width=220&upscale=true&name=Shangyou-Nie-Headshot-Signature%20(1).png)
