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Valor | Energy Connection – Mar. 16, 2026

Posted on by Valor

March 16, 2026 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

  • Waha gas prices turn negative for record 25th straight day
  • Summary: Natural gas prices at the Waha Hub in West Texas hit a record 25th consecutive day in negative territory, with cash prices falling as low as minus $7.15/MMBtu, as insufficient pipeline takeaway capacity continues to strand associated gas in the basin. Analysts at EBW Analytics expect negative pricing to persist through much of spring, with near-term production curtailments possible. Relief is anticipated when new pipelines, including the Blackcomb system, come online in the second half of 2026.
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  • Goldman Sachs hikes Brent oil forecast to over $100 for March
  • Summary: Goldman Sachs raised its Brent Crude forecast to an average above $100 per barrel for March, citing ongoing supply disruptions tied to the Middle East conflict. The bank warned that if Strait of Hormuz disruptions extend from weeks to months, Q4 Brent could average as high as $93 per barrel with near-term spikes above $100. A coordinated IEA emergency release of 400 million barrels and a U.S. waiver on stranded Russian crude have so far failed to meaningfully rein in prices.
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  • U.S. drillers add oil and gas rigs for second week in a row
  • Summary: The U.S. oil and gas rig count rose by two to 553 for the week ending March 13 — its highest level since November 2025 — marking the first back-to-back weekly gain since early February, according to Baker Hughes. Oil rigs climbed to 412 and gas rigs to 133, with the Haynesville reaching a count not seen since May 2023. Despite the uptick, the total rig count remains roughly 7% below year-ago levels.
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  • U.S. natural gas production reached a new record in 2025
  • Summary: U.S. marketed natural gas production averaged a record 118.5 Bcf/d in 2025, a gain of 5.3 Bcf/d from the prior year, according to the EIA. The Appalachia, Permian, and Haynesville regions drove 81% of that growth, with Permian output rising 11% to 27.7 Bcf/d as associated gas from oil-directed drilling continued to climb. A 60% rise in Henry Hub spot prices in 2025 to $3.52/MMBtu contributed to production growth across all regions.
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  • Annual U.S. crude oil exports decrease for first time since 2021
  • Summary: U.S. crude oil exports fell approximately 3% in 2025 to 4.0 million barrels per day — the first annual decrease since 2021 — despite domestic production hitting a record 13.6 million bpd. Exports declined to both Europe and the Asia-Oceania region, with volumes to China dropping sharply, while shipments to Nigeria, India, and Japan increased. A larger drop in imports brought net U.S. crude oil imports down from 2.5 million b/d in 2024 to 2.2 million b/d in 2025.
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  • BOEM releases updated assessment of undiscovered U.S. offshore resources
  • Summary: The Bureau of Ocean Energy Management released its 2026 National Assessment of Undiscovered Oil and Gas Resources, estimating a mean of 65.80 billion barrels of oil and 218.43 trillion cubic feet of natural gas in technically recoverable resources across the U.S. Outer Continental Shelf — representing roughly 100 or more years of offshore production at current rates. The Gulf of America leads with 26.9 billion barrels of undiscovered oil, followed by Alaska at 24.1 billion barrels. The figures represent a modest decrease of approximately 4% for oil and 5% for gas from the 2021 assessment.
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  • BP wins key approval for Kaskida deepwater project in U.S. Gulf
  • Summary: BP received federal approval for its Kaskida deepwater project in the Gulf — the company’s first full-scale new field development in the region since the 2010 Deepwater Horizon disaster. The $5 billion project targets a section of seafloor estimated to hold up to 10 billion barrels and is expected to begin initial crude production in 2029. The field had remained undeveloped since its discovery nearly 20 years ago due to extreme pressure and geological complexity that required technological advances to unlock.
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Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

The Biggest AI Opportunity for Mineral Owners Isn’t in the Field

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The energy industry’s AI conversation has a blind spot.

Every headline in 2026 points to the same story: autonomous rigs, predictive maintenance, AI-optimized reservoirs. Field-level innovation is real, and it’s delivering results. But for mineral rights owners, royalty interest holders, family offices, banks, and institutions with energy assets, the biggest AI opportunity isn’t at the wellhead.

It’s in the workflows that connect everything else.

The Back Office Has Been the Bottleneck

Managing mineral and working interests means reconciling revenue from dozens of operators, tracking lease terms across multiple states, monitoring regulatory deadlines, and ensuring every royalty payment is accurate and defensible. For most of the industry’s history, that meant manual effort — and manual effort means risk.

The AI in oil and gas market is projected to grow from $4 billion in 2025 to over $7.5 billion by 2030, according to a March 2026 report from Research and Markets. Much of that growth isn’t coming from drilling floors. It’s coming from organizations that recognize back-office transformation is just as strategically important as what happens in the field.

Mineral management is overdue for this shift.

Automation Where It Actually Matters

The best AI implementations don’t start with the hardest problems. They start with the high-volume, detail-intensive work that consumes the most time and creates the most exposure — lease expirations, revenue discrepancies, regulatory deadlines, owner reporting. Automating these workflows doesn’t just save time. It changes the quality of decisions mineral owners can make and how quickly they can make them.

That’s the difference between managing assets reactively and managing them with complete visibility.

Why Most Internal Efforts Stall

Here’s the honest reality: deploying AI well is harder than buying it.

Successful automation in mineral management requires clean, consolidated data before anything else. Ownership records, lease documentation, revenue history — if those foundations aren’t in place, even sophisticated tools produce results you can’t trust. Most organizations that try to build this internally hit that wall. What looks like a technology problem turns out to be an organizational one.

For many organizations, the more practical path is working with a mineral management partner that has already built the data and workflow infrastructure required for reliable automation.

The Infrastructure Is Already Here

Mineral owners don’t have to start from scratch. Purpose-built platforms that combine automated workflows, integrated data environments, and professional oversight are already delivering measurable results.

At Valor, our mineral.tech® software brings production data, revenue tracking, lease documentation, ownership records, and regulatory information into a single audit-ready environment. Our certified land and accounting team provides the professional oversight that turns platform outputs into defensible decisions — particularly for institutional clients who answer to boards, beneficiaries, and regulators alike.

The result is what mineral management should look like in 2026: faster decisions, greater accuracy, and full visibility into asset performance.

The Bottom Line

AI in the field gets the headlines. AI in the back office is where mineral owners actually capture the value.

The foundation to do it right already exists. The question is whether you’re using it.

Contact Valor Today

Contact us today to learn how AI-powered mineral management solutions can protect and grow your assets.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – Mar. 9, 2026

Posted on by Valor

March 9, 2026 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

  • Crude oil prices surpass $100 a barrel as Middle East conflict disrupts supply
  • Summary: Oil prices eclipsed $100 per barrel for the first time since 2022 as Brent surged 16.5% to $107.97 and WTI reached $106.22 following intensified conflict in the Middle East. The disruption of the Strait of Hormuz has stranded 15 million barrels of daily supply, forcing producers like Iraq and Kuwait to cut output as storage capacities hit their limits. Domestic energy costs spiked alongside futures, with U.S. gas prices rising 47 cents to $3.45 a gallon while natural gas rose to $3.33 per 1,000 cubic feet.
  • Read more
  • U.S drillers add oil rigs as WTI jumps 14%
  • Summary: The U.S. rig count rose by one to 551 this week as oil rigs increased by four to 411, their highest level since February. While gas rigs fell by two to 132, WTI and Brent crude prices surged over 20% weekly to $92.22 and $94.10 respectively, driven by the effective closure of the Strait of Hormuz. Despite the price spike, weekly domestic crude production edged down by 6,000 bpd to 13.696 million bpd, though Frac Spread completions rose by seven crews as the Permian Basin reached 241 active rigs.
  • Read more
  • Permian Resources forecasts 2026 oil production of up to 192,000 barrels per day
  • Summary: Permian Resources forecast 2026 oil production between 186,000 and 192,000 bpd following a fourth quarter average of 188,633 bpd and a 14% reduction in costs to $700 per foot. The company plans to spend $1.75 billion to $1.95 billion in capital expenditures to turn in line 250 gross wells, with 65% of activity focused in New Mexico. As the second largest Permian pure-play, the firm holds 480,000 net acres and has the financial capacity to pursue up to $3 billion in additional acquisitions through 2027 without significant debt.
  • Read more
  • G7 finance ministers meet to discuss releasing emergency oil reserves
  • Summary: G7 finance ministers held emergency talks on March 9, 2026, to discuss a coordinated release of 300 to 400 million barrels of oil from IEA strategic reserves. The meeting followed a 25% surge in Brent crude to a high of $119.50 per barrel, triggered by the closure of the Strait of Hormuz and strikes on Gulf energy infrastructure. While the proposed release represents roughly 30% of global reserves, markets remained volatile as Japan’s Nikkei 225 plummeted 5% and European indexes fell over 1.4% amid fears of an unprecedented global energy crisis.
  • Read more
  • OPEC+ agrees to modest oil output boost amid shipping disruptions
  • Summary: OPEC+ agreed to a modest 206,000 bpd production increase for April, ending a three-month pause even as disruptions to key shipping routes have constrained crude flows. Although some members have spare capacity, limited transit through the Strait of Hormuz, a corridor for about 20% of global oil, has reduced Gulf shipments and lifted Brent crude toward $80 per barrel. Analysts say that this roughly 0.2% supply boost is unlikely to stabilize markets if navigation challenges persist, with prices potentially rising above $100 per barrel if disruptions continue.
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  • Texas leads nation again as oil and natural gas output hits all-time high
  • Summary: Texas dominated the U.S. energy sector in 2025, producing a record 2.1 billion barrels of oil and 13.5 trillion cubic feet of natural gas while supporting 476,777 direct jobs. The industry’s $385 billion direct Gross Regional Product accounted for 36% of the state’s economy, with average annual oil and gas wages reaching $133,439. Nationally, the sector sustained over 2 million direct jobs and purchased $722 billion in goods and services, as U.S. LNG exports reached 89.1 million metric tons to support global allies.
  • Read more
  • LNG futures climb 7% for the week as Middle East crisis continues
  • Summary: U.S. LNG futures rose 3.5% on Friday to $3.05 per MMBtu, marking a 7% weekly gain as conflict in the Middle East disrupted global energy markets. While the shutdown of Qatar’s Ras Laffan plant triggered massive price spikes in Europe and Asia, U.S. prices remained relatively stable due to domestic energy independence and high production levels. Despite geopolitical “war premiums” and cooler weather driving recent demand, warmer forecasts for the coming week are expected to limit further domestic price increases.
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  • Crude oil prices pressured by bearish EIA inventory report
  • Summary: WTI crude fell 0.74% to $90.35 following an EIA report showing U.S. crude inventories rose by 3.48 million barrels to a nine-month high, exceeding the 3.0-million-barrel build expected by analysts. Despite the bearish domestic data, gasoline reached a 19.5-month high as Iranian threats to “set fire” to ships in the Strait of Hormuz drove a $18 per barrel geopolitical risk premium. Global supply remains constrained by the closure of the Ju’aymah terminal and a major fire at the UAE’s Fujairah hub, even as OPEC+ agreed to a larger-than-expected 206,000 bpd output boost for April.
  • Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – Mar. 2, 2026

Posted on by Valor

March 2, 2026 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

  • Oil markets brace for volatility amid Middle East supply instability risks
  • Summary: Oil prices climbed after escalating geopolitical tensions in the Middle East disrupted key supply routes and heightened concerns about regional stability. Brent and WTI crude jumped roughly 9% to $79.41 and $72.79 respectively on Monday, following the effective closure of the Strait of Hormuz, a corridor that carries about 20% of global oil flows. While OPEC+ signaled a 206,000 bpd output increase to help offset potential shortfalls, analysts caution that prolonged disruption to the 15 million barrels per day moving through the chokepoint could push prices toward $100 per barrel.
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  • Conocophillips considers selling Permian assets worth $2B
  • Summary: ConocoPhillips is exploring the sale of Delaware Basin assets valued at approximately $2 billion as part of a strategy to streamline its portfolio following the $22.5 billion acquisition of Marathon Oil. The company, which has already closed $3.2 billion in divestitures during 2025, aims to reach a total asset-sale target of $5 billion by the end of 2026 to optimize its core high-return operations. While interest is expected from both strategic and private equity suitors, deliberations remain in the early stages with no guarantee that the Houston-based producer will proceed with the transaction.
  • Read more
  • Global gas markets shocked as Qatar ceases LNG production
  • Summary: Global gas markets surged after LNG production was suspended at a major export hub amid regional security concerns, removing roughly 20% of global supply from the market. The halt triggered a 50% spike in European Dutch TTF gas prices to over €46/MWh, while Asian JKM benchmarks rose 39% to $15.068 per MMBtu. Brent crude also climbed 13% to $82 per barrel as traders reacted to the effective closure of the Strait of Hormuz and precautionary shutdowns affecting multiple production facilities. The disruption leaves global buyers facing a significant supply gap with no confirmed timeline for full operations to resume.
  • Read more
  • U.S. drillers cut oil and gas rigs for first time in six weeks, says Baker Hughes
  • Summary: U.S. energy firms reduced the total oil and gas rig count by one to 550 for the week ending February 27, the first decline in six weeks. Oil rigs fell by two to 407—the lowest since December—while gas rigs rose by one to 134, marking their highest level since July 2023. Despite this 7% year-over-year drop in activity, the EIA projects 2026 crude output will hold at 13.6 million bpd, while natural gas production is expected to reach a record 110.0 bcfd amid a forecast 22% jump in spot prices.
  • Read more
  • OPEC+ agrees to modest oil output boost amid shipping disruptions
  • Summary: OPEC+ agreed to a modest 206,000 bpd production increase for April, ending a three-month pause even as disruptions to key shipping routes have constrained crude flows. Although some members have spare capacity, limited transit through the Strait of Hormuz, a corridor for about 20% of global oil, has reduced Gulf shipments and lifted Brent crude toward $80 per barrel. Analysts say that this roughly 0.2% supply boost is unlikely to stabilize markets if navigation challenges persist, with prices potentially rising above $100 per barrel if disruptions continue.
  • Read more
  • Cheniere’s profit soars by 64% in 2025 as LNG demand jumps
  • Summary: Cheniere Energy reported a 64% surge in 2025 net income to $5.33 billion, driven by record exports of 670 LNG cargoes and a 27% revenue increase to $19.98 billion. The company reached a milestone of 4,610 total cargoes on its 10th anniversary while completing four of seven trains at its Corpus Christi Stage 3 expansion. For 2026, Cheniere projects adjusted EBITDA between $6.75 billion and $7.25 billion as it anticipates finishing the remaining three trains to meet sustained demand from Europe and Asia.
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  • infinity completes $1.2B Utica acquisition from Antero
  • Summary: Infinity Natural Resources finalized the $1.2 billion purchase of 71,000 net acres and 141 miles of midstream assets in the Ohio Utica Shale from Antero. The deal, funded partly by a $350 million equity investment from Quantum and Carnelian, increases Infinity’s basin footprint to 102,000 net acres and 575 total drilling locations. While Infinity plans a two-rig program for 2026, Antero is utilizing the proceeds to high-grade its Marcellus portfolio through a $2.8 billion acquisition of HG Energy, targeting a 2026 production average of 4.1 Bcfe/d.
  • Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – Feb. 23, 2026

Posted on by Valor

February 23, 2026 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

  • Brazos starts up new gas processing plant in Midland Basin
  • Summary: Brazos Midstream has commissioned Sundance II, a 300 MMcfd cryogenic plant in Martin County, expanding its Midland Basin footprint across seven Texas counties. The company also began construction on the 300 MMcfd Cassidy I facility in Glasscock County, which will increase total Midland processing capacity to 800 MMcfd by late 2026. These projects, supported by 375,000 dedicated acres, aim to raise Brazos’ total Permian capacity from 1 billion cfd to approximately 1.3 billion cfd this year.
  • Read more
  • U.S. oil drilling activity still going nowhere
  • Summary: The total number of active U.S. drilling rigs remained stagnant at 551 this week, representing a year-over-year decrease of 41 units according to Baker Hughes data. While oil and gas rig counts held steady at 409 and 133 respectively, weekly domestic crude production rose by 22,000 bpd to reach an average of 13.735 million bpd. Despite the flat rig count, Frac Spread crews increased by 8, and the Permian Basin saw a slight rise of 1 rig as Brent and WTI futures traded lower at $71.40 and $66.15.
  • Read more
  • Oil holds near six-month high
  • Summary: WTI and Brent settled at $66.48 and $71.76 respectively as Middle East supply tensions and a 9-million-barrel drop in US crude stockpiles supported prices near six-month highs. Escalating geopolitical risk in the region, which produces over 3 million barrels daily, raised concerns over potential supply disruptions through the Strait of Hormuz. Despite a 5.6% weekly gain, market indicators like wide backwardation and bullish options skews signal expectations for further tightening, as regional tensions show little sign of easing near-term.
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  • After years of buybacks, big oil is drilling again
  • Summary: Oil supermajors are shifting strategy from shareholder distributions and low-carbon ventures toward expanding oil and gas reserves due to sustained global demand and slower-than-expected electric vehicle adoption. This pivot follows the International Energy Agency walking back its pre-2030 peak oil demand prediction, prompting companies like Shell and BP to prioritize growth and acquisitions to ensure long-term dividend sustainability. Despite a 20% drop in oil prices last year, investors are encouraging this refocus on core upstream operations as Rystad Energy forecasts a year of energy abundance in 2026.
  • Read more
  • U.S. natural gas pipeline capacity set for biggest buildout since 2008
  • Summary: The U.S. natural gas industry is projected to add between 18 and 22 Bcf/d of pipeline capacity in 2026, marking the largest annual expansion since 31 Bcf/d was added in 2008. This massive buildout includes 12 to 22 new projects across Texas, Louisiana, and Oklahoma, driven by a 20% compound annual growth rate in Permian associated gas and rising LNG export demand. Regulatory shifts, including the 2025 One Big Beautiful Bill Act and expedited NEPA reviews as short as 14 days, are accelerating infrastructure meant to relieve Permian price volatility that saw Waha spot prices hit negative $8.790/MMBtu.
  • Read more
  • Natural gas price nears $3.05 as bomb cyclone and supply stress collide
  • Summary: Natural gas futures rose to $3.05 per MMBtu as a severe bomb cyclone threatens the U.S. East Coast with heavy snow and 50 mph winds. While domestic production remains resilient, a record storage withdrawal of 360 Bcf during Winter Storm Fern in January has left inventories 5.6% below the five-year average. Globally, Turkish spot prices at 14,583 lira ($9–$10/MMBtu equivalent) and Colombia’s 23% year-over-year production drop highlight a structural supply squeeze. Despite these bullish indicators, European TTF and UK gas prices fell roughly 5% today, reflecting a stabilized medium-term equilibrium compared to the high-beta volatility currently impacting Henry Hub.
  • Read more
  • Japan’s $36 billion bet on U.S. energy dominance
  • Summary: Japan has committed $36 billion as the first tranche of a $550-billion investment pledge, headlined by plans to build a 9.2 GW natural gas power plant in Ohio. Operated by SB Energy, this facility aims to meet surging AI-driven data center demand, which contributed to a 2.1% rise in U.S. electricity use in 2025. The funding also supports the Texas GulfLink deepwater port, designed to export 1 million barrels of crude daily and generate up to $30 billion in annual revenue.
  • Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – Feb. 16, 2026

Posted on by Valor

February 16, 2026 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

  • U.S. natural gas production to reach record highs in 2026 and 2027
  • Summary: The EIA forecasts U.S. marketed natural gas production will rise 2% to average 120.8 Bcf/d in 2026 before hitting a record high of 122.3 Bcf/d in 2027. Growth is primarily driven by the Haynesville and Permian regions, with Haynesville output supported by proximity to LNG terminals and prices rising to $4.31/MMBtu. Meanwhile, Permian production is expected to grow by 1.4 Bcf/d in 2026 despite falling oil prices (WTI $53/b), fueled by a rising gas-to-oil ratio (GOR) in associated gas wells.
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  • Natural gas hits 4 month low of $ 3.02 on warm forecast
  • Summary: U.S. natural gas futures slumped to roughly $3.02 per MMBtu, marking a four-month low as forecasts for warmer weather across the central and southern U.S. reduced expectations for heating demand. This decline reverses a recent spike to three-year highs driven by Winter Storm Fern and was exacerbated by thin liquidity during the President’s Day holiday. Despite the drop, market fundamentals remain supportive, with working gas inventories sitting roughly 130 Bcf below the five-year average and LNG exports sustaining near-record levels.
  • Read more

  • EIA sees flat crude output but rising gas production in 2026
  • Summary: U.S. energy firms kept the total rig count unchanged at 551 this week, as a reduction of three oil rigs (to 409) was offset by the addition of three natural gas rigs (to 133). While the total count remains down 37 rigs year-over-year, gas drilling has surged to its highest level since July 2023. The EIA projects U.S. crude output will remain flat at 13.6 million bpd in 2026 amid falling oil prices, whereas natural gas production is forecast to rise to 110.0 bcfd, supported by a predicted 22% jump in Henry Hub spot prices.
  • Read more

  • Oil prices set for second weekly loss as IEA cuts demand view
  • Summary: Oil prices are poised for a second consecutive weekly loss as fading fears of a U.S.-Iran escalation reduce the geopolitical risk premium, leaving Brent at $67.36 and WTI at $62.66. The International Energy Agency (IEA) triggered a 3% price drop by revising its 2026 demand growth forecast down to 850,000 bpd, contrasting with OPEC’s steady projection of 1.38 million bpd. Despite recent supply disruptions in North America and Kazakhstan, the IEA predicts a 2026 market surplus with global supply rising by 2.4 million bpd.
  • Read more

  • Oil edges higher on weak U.S. inflation data
  • Summary: Oil prices settled marginally higher Friday—with Brent at $67.75 and WTI at $62.89—as slowing U.S. inflation data fueled hopes for rate cuts, offsetting concerns that OPEC+ may resume output increases in April. Despite the daily uptick, both benchmarks posted weekly losses of roughly 0.5% and 1%, respectively. Geopolitical factors remain mixed: while the U.S. eased Venezuelan energy sanctions (eyeing $5 billion in future sales) and Russia scheduled peace talks, the Pentagon deployed a second aircraft carrier to the Middle East amid lingering tensions with Iran.
  • Read more

  • New Venezuela oil law a step forward says U.S. Energy Secretary
  • Summary: U.S. Energy Secretary Chris Wright said following a meeting with Venezuelan officials that the country’s new oil law could support a potential increase in oil, natural gas, and electricity production as early as this year. The revised framework caps royalties at 30% and allows for greater private-sector participation, which Wright described as a constructive step toward attracting investment. However, he noted that further clarity may be needed before large-scale capital commitments materialize. Any meaningful production growth from Venezuela could influence global crude supply balances and potentially affect pricing dynamics in international markets.
  • Read more

  • Americas oil firms accelerate AI adoption for efficiency
  • Summary: Oil and gas enterprises across the Americas are aggressively adopting AI, cloud platforms, and decarbonization technologies to modernize operations and cut costs, according to the 2025 ISG Provider Lens® report. U.S. shale operators in the Permian and Eagle Ford are leveraging AI and advanced analytics to optimize drilling accuracy and reservoir management, while Canadian firms focus on carbon capture and Brazilian companies scale biofuels. The report identifies major tech consultancies—including Accenture, Deloitte, and IBM—as leaders in guiding this transition, which prioritizes operational efficiency and resilience amid market volatility.
  • Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection — Feb. 9, 2026

Posted on by Valor

February 9, 2026 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

  • U.S. oil drillers add rigs even in price uncertainty
  • Summary: The total U.S. rig count rose by 5 this week to 551, with oil rigs gaining 1 to reach 412 and gas rigs jumping 5 to 130, according to Baker Hughes data. Despite the increase, the total count remains 35 rigs below year-ago levels. Weekly crude production fell 481,000 bpd to 13.215 million bpd, now 647,000 bpd under the all-time high. Primary Vision’s Frac Spread Count dropped sharply by 15 crews to 148—the lowest point in five years—as oil prices traded around $64.34 for WTI and $68.72 for Brent.
  • Read more

  • Natural gas futures retreat on warmer weather forecasts
  • Summary: Natural gas prices ended lower Friday after an early rally fizzled on forecasts of warmer U.S. temperatures trimming heating demand. March futures settled at $3.422, down 2.48%, despite a record 360 Bcf storage withdrawal that flipped inventories to 1.1% below the five-year average. The bearish 10-day outlook predicts above-normal temperatures across the Midwest and South through February 20, while the number of active gas rigs jumped to a 2.5-year high of 130—raising concerns about higher near-term production.
  • Read more

  • U.S. natural gas exporters brace for global glut
  • Summary: A surge of LNG supply could create oversupply as soon as 2027, with U.S. capacity expanding to 19 Bcf/d by year-end and Qatar adding major new terminals. Golden Pass in Texas and new production lines at Cheniere’s Corpus Christi are set to come online, while companies approved a record six new LNG projects in 2025. Federal forecasters predict the glut could drive down global prices while pushing U.S. benchmark gas above $4.50 per MMBtu in 2027—a 30% increase over 2025—as exports divert nearly one-fifth of domestic production overseas and data centers add 3–6 Bcf/d of new demand.
  • Read more

  • Cheniere submits application for massive Corpus Christi LNG expansion
  • Summary: Cheniere Energy filed an application with FERC to build a 24 million metric tonnes per annum LNG plant at its Corpus Christi facility in Texas—a Stage 4 expansion that would eventually boost total site capacity to 49 MMtpa. The project would add four new processing trains, each producing 6 MMtpa, and require 3.3 billion cubic feet of gas daily. Cheniere currently operates 52 MMtpa with another 8 MMtpa under construction, racing Venture Global to become the first U.S. exporter to surpass 100 MMtpa as the nation exported 111 MMt of LNG in 2025.
  • Read more

  • Williams eyes gas production assets to power AI data centers
  • Summary: Williams Companies is exploring buying natural gas production assets in the U.S.—a rare move for a midstream operator—as it positions itself as a one-stop energy partner for hyperscalers and AI data center clients. The Tulsa-based firm has spent the past year building power generation capabilities, including its $2 billion Socrates project in Ohio supplying 440 MW to Meta Platforms. Williams spun off most upstream operations in 2012 but now sees vertical integration as key to competing for AI infrastructure contracts requiring massive, consistent electricity and simplified energy procurement.
  • Read more

  • U.S. federal government approves deepwater Texas oil export terminal
  • Summary: The federal government greenlit Sentinel Midstream’s Texas GulfLink project, a deepwater oil terminal on the Texas coast with 1 million barrels per day export capacity. The approval marks a significant boost to U.S. energy infrastructure and is the second major offshore loading facility after the Louisiana Offshore Oil Port. Transport Secretary Sean Duffy said the project proves that slashing red tape creates jobs at home and stability abroad. The move comes as U.S. crude exports have surged from just over 100,000 bpd in 2013 to over 4.4 million bpd as of late 2025.
  • Read more

  • Oil prices locked in $60-$70 range as geopolitics battle oversupply
  • Summary: WTI trades around $63.55 and Brent near $68.05 as Iran–U.S. tensions provide a floor while oversupply fears cap gains. Saudi Arabia cut its official selling price for Arab Light to Asian buyers for the fourth consecutive month to near five-year lows, signaling weak demand rather than shortage. Regional spreads remain rational, with Azeri Light around $70.70 and the OPEC basket at $66.65, confirming a balanced but not overheated market. Analysts view the current band as range-bound, recommending buying dips into $60–$61 WTI with targets in the mid-$60s to low-$70s.
  • Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Valor | Energy Connection – Feb. 2, 2026

Posted on by Valor

February 2, 2026 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

  • Big freeze disrupts U.S. oil and gas production
  • Summary: Winter Storm Fern slashed U.S. oil production by up to 2 million bpd (15% of the total) and natural gas output by 11% over the weekend, with the Permian Basin bearing the brunt of the freeze. While Permian oil outages initially hit 1.5 million bpd, production is recovering and expected to be fully restored by month’s end. The supply shock triggered a historic 117% rally in natural gas prices—the strongest since the 1990s—before easing as traders took profits.
  • Read more

  • Devon and Coterra merge in $58 billion shale deal
  • Summary: Devon Energy and Coterra Energy have agreed to a $58 billion all-stock merger, creating a massive U.S. shale operator with production exceeding 1.6 million barrels of oil equivalent per day. The combined company, which will retain the Devon name and be headquartered in Houston, aims to generate $1 billion in annual synergies while consolidating top-tier assets in the Permian, Marcellus, and Anadarko basins. This strategic move responds to lower oil prices by securing the largest inventory of sub-$40 breakeven drilling locations in the Delaware Basin.
  • Read more

  • U.S. drillers add 2 rigs as crude output falls
  • Summary: The U.S. total rig count rose by two to 546 this week, as a gain of three gas rigs (totaling 125) offset a single-rig decline in miscellaneous drilling, while oil rigs remained flat at 411. Despite this slight weekly increase, the total count remains down 36 rigs year-over-year. U.S. crude production fell for another week, dropping 36,000 bpd to 13.696 million bpd—166,000 bpd below the all-time high. Meanwhile, the Permian Basin saw a decline of two rigs, though oil prices trended higher with Brent reaching $70.81.
  • Read more

  • Natural Gas surges as freeze offs cut 15 percent of supply
  • Summary: Natural Gas futures (NG=F) surged over 120% in a week—with the February Henry Hub contract briefly hitting a three-year high of ~$7.43 before settling near $4.42—as Winter Storm Fern drove record demand and froze off nearly 15% of U.S. production. While the storm triggered a massive 242 Bcf storage withdrawal, inventories remain roughly 143 Bcf above the five-year average, providing a buffer that prevented prices from holding the extreme $7+ highs. Technically, the market has shifted to a bullish trend, with support established around $3.82 and immediate upside targets near $4.55–$4.80.
  • Read more

  • Oil prices tumble 5% amid signs of U.S.-Iran de-escalation
  • Summary: Oil prices fell more than 5% on Monday, retreating from five-month highs, after comments signaled potential de-escalation in U.S.–Iran tensions. Brent crude slipped to $65.99 per barrel and WTI to $61.92 as the geopolitical risk premium eased. Analysts noted that broader market weakness and ongoing efforts to limit fuel price volatility could constrain the likelihood of further escalation.
  • Read more

  • Eagle Ford on the chopping block as Exxon refocuses drilling strategy
  • Summary: ExxonMobil’s subsidiary, XTO Energy, is marketing its Eagle Ford shale assets in South Texas for approximately $1 billion as the company doubles down on its highest-return projects. The potential sale includes over 1,000 wells spanning 168,000 net acres, consisting of both operated and non-operated interests. This move aligns with a broader industry trend of shedding non-core assets to counter rising production costs and softening oil prices. Exxon plans to redeploy capital into its “advantaged” assets, specifically its massive Permian Basin holdings—bolstered by the 2024 Pioneer acquisition—and its highly prolific offshore projects in Guyana.
  • Read more

  • 7.65 GW gas power project permitted in Texas for AI
  • Summary: Pacifico Energy has received approval for the GW Ranch project in Pecos County, Texas, the largest permitted power project in U.S. history. This 7.65 GW gas-fired campus includes 1.8 GW of battery storage and 750 MW of solar, specifically designed as a private-grid facility to support hyperscale AI data centers. Construction is scheduled to begin in Q1 2026, with initial power delivery by early 2027. By operating off-grid, the project avoids ERCOT interconnection queues and aims to protect local consumers from price hikes, though it has drawn attention for being authorized to release greenhouse gases equivalent to 5% of Canada’s total annual emissions.
  • Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Accuracy vs. Trust: Scaling AI in Oil and Gas Operations

Posted on by Valor

In the high-stakes world of energy operations, we have reached a critical tipping point. In many industries, an AI recommendation only needs to be “directionally correct” to be useful. Oil and gas is different.

Operational decisions in our field don’t just affect a digital dashboard; they impact safety, environmental compliance, complex partner relationships, and millions of dollars in capital. Whether you are managing mineral rights or optimizing oil and gas back-office workflows, the “what” is meaningless without the “why.”

The Requirement for Transparency

For many operators, AI can feel like a risk rather than a tool if the underlying logic is hidden. A recommendation that lacks transparency may look impressive in a meeting, but if it cannot be interrogated or defended during a joint venture audit or a regulatory review, it becomes a liability.

This is where adoption often breaks down. When operators can’t clearly explain how a system reached its conclusion, they hesitate to act—and AI stalls at the point of execution.

The Trust Gap: Why Energy AI Adoption Stalls

As the industry moves into 2026, a familiar pattern continues to prevent AI from becoming true operational infrastructure:

• Signals Without Context: Systems flag anomalies—such as issues in a drilling program—without showing the specific data patterns that triggered the alert.
• Experienced Teams Push Back: Engineers are understandably reluctant to override decades of judgment for outputs they cannot validate.
• Validation Challenges: Finance teams struggle to reconcile AI-generated forecasts with source data for mineral management and reporting.
• Governance Concerns: Leaders worry about recommendations they can’t confidently defend in front of regulators, partners, or auditors.

The result is inconsistent usage. AI insights are reviewed, discussed, and often sidelined. To close this gap, transparency must be built into system architecture from day one.

Why Explainability Matters: Scrutiny Beyond the Borehole

Energy operations function under layers of accountability that most tech sectors never face. Every decision must withstand intense scrutiny from:

• State and Federal Regulators — demonstrating compliance with emissions and safety standards
• Joint Venture Partners — defending capital allocation and operational decisions
• Royalty and Mineral Owners — ensuring accuracy in complex payment calculations
• Internal Audit Teams — validating alignment with governance and reporting requirements

The Valor Standard: Augmenting Expertise

At Valor, we believe effective AI doesn’t replace expertise — it reinforces it. Trustworthy systems are designed to guide professionals, not override them.

That means:

• Explainable Recommendations
AI outputs must be grounded in clearly identifiable data, allowing operators to understand why an issue was flagged — not just that it was.
• Traceability to Source Records
Every mineral management insight should be traceable back to original source documents, including leases, deeds, and division orders.
• Human-in-the-Loop Decisions
AI highlights patterns and risks, but final “go / no-go” decisions remain with engineers and managers.

Valor’s proprietary software, mineral.tech®, supports this approach by consolidating production, revenue, and ownership data into a unified platform—enabling audit-ready visibility without sacrificing human judgment.

From Pilots to Infrastructure: The 2026 Outlook

As AI deployments move from isolated pilots to enterprise-wide systems, transparency becomes non-negotiable. In an industry where a single recommendation can influence double-digit cost reductions or prevent millions in unplanned downtime, decisions must be defensible.

The operators who succeed won’t be those with the most complex algorithms. They’ll be the ones using specialized oil and gas software and outsourcing models to build systems their teams trust enough to use every day.

The Path Forward with Valor

Transparent AI doesn’t just improve performance—it accelerates adoption and preserves one of the industry’s most valuable assets: institutional knowledge.

At Valor, we combine governance, clarity, and explainable insights across our mineral management and back-office solutions so teams can act with confidence, not hesitation.

Contact Valor today to see how explainable insights can transform your operations.

Common Questions We Hear About AI in Oil & Gas

What is explainable AI (XAI) in oil and gas? XAI refers to AI systems where the internal mechanics and the reasoning behind each recommendation are transparent and understandable to human operators and regulators.

How does AI improve mineral management? AI automates the analysis of vast datasets, identifying patterns in production and revenue that help optimize mineral rights value and ensure audit-ready reporting.

Why should I outsource my oil and gas back-office? Oil and gas back-office outsourcing provides access to specialized expertise and advanced, transparent AI tools that most operators cannot build in-house, leading to higher efficiency and reduced overhead.

The information provided by Valor is for general informational purposes only and does not constitute legal, tax, or operational advice.

Valor | Energy Connection – Jan. 26, 2026

Posted on by Valor

January 26, 2026 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

  • Natural-gas prices see ‘historic’ surge as U.S. braces for winter storm
  • Summary: U.S. energy firms added one rig this week, bringing the total to 544—the first increase in three weeks—as oil rigs rose by one to 411 while gas rigs held steady at 122. Despite this uptick, the total count remains down 32 rigs, or 5.6%, compared to last year. Meanwhile, the EIA projects 2026 crude output will dip slightly to 13.59 million bpd amid falling prices, while natural gas production is forecast to rise to 108.8 bcfd even as Henry Hub prices are expected to ease by 2%.
  • Read more

  1. Permian wells grow gassier, boosting midstream investment
  2. Summary: Permian Basin operators are encountering rising gas-to-oil ratios (GOR) as they target deeper zones and migrate toward the gassier Delaware Basin, a trend East Daley Analytics calls a frustration for upstream investors but an opportunity for midstream companies. This shift, driven by geological factors and aging wells that release more methane as pressure declines, has spurred new investment in processing plants and pipelines. Consequently, Morningstar DBRS forecasts positive growth for natural gas infrastructure in 2026, contrasting with a more muted outlook for crude oil projects.
  3. Read more

  1. U.S. drillers add rigs for first time in three weeks
  2. Summary: U.S. energy firms added one rig this week, bringing the total to 544—the first increase in three weeks—as oil rigs rose by one to 411 while gas rigs held steady at 122. Despite this uptick, the total count remains down 32 rigs, or 5.6%, compared to last year. Meanwhile, the EIA projects 2026 crude output will dip slightly to 13.59 million bpd amid falling prices, while natural gas production is forecast to rise to 108.8 bcfd even as Henry Hub prices are expected to ease by 2%.
  3. Read more

  • IEA Raises Forecast of Global Oil Demand Growth in 2026
  • Summary: The International Energy Agency (IEA) raised its 2026 global oil demand growth forecast by 70,000 bpd to 930,000 bpd, citing lower prices and a recovery in the petrochemical sector following the stabilization of economies after 2025’s tariff disruptions. Despite this uptick, the agency projects global supply will surge by 2.5 million bpd to 108.7 million bpd, resulting in a massive implied surplus of 3.69 million bpd. Consequently, benchmark prices remain roughly $16/bbl lower than a year ago, as bloated global inventories—visible in surging oil on water and Chinese stocks—continue to weigh on the market.
  • Read more

  • Oil climbs as weak dollar and risk-on mood counter glut worries
  • Summary: Oil prices climbed as a weak dollar—down 0.8% this week, the most since June—and a risk-on market mood offset concerns regarding a global supply glut. Brent crude rose 0.9% to $64.65 a barrel while WTI hovered near $60, positioning the benchmarks for a fifth consecutive weekly gain. Despite the rally, fundamentals remain bearish: U.S. crude inventories swelled by 3.6 million barrels to their highest level since November, and the IEA reiterated that supply is expected to significantly outpace demand this year as flows increase from the Mediterranean, Black Sea, and Venezuela.
  • Read more

  1. Orphaned oil and gas wells in Texas broke a 20-year record in December
  2. Summary: The number of orphaned oil and gas wells in Texas reached a 20-year high of 11,123 by the end of 2025, with roughly 2,000 added in the last year alone due to industry consolidation, rising costs, and a 20% drop in crude prices. These ownerless wells pose significant environmental risks and financial burdens on the state, with standard plugging costs around $30,000—though complex leaks can cost ten times that amount. While legislation passed in May attempts to force active plugging, critics argue the lack of deadlines allows companies to pocket profits and dissolve before addressing the cleanup.
  3. Read more

  • U.S. crude and gasoline inventories see large gains
  • Summary: The American Petroleum Institute (API) estimated a 3.04 million barrel build in U.S. crude oil inventories for the week ending January 16, alongside an 800,000-barrel increase in the Strategic Petroleum Reserve to 414.5 million barrels. Gasoline inventories continued to surge, adding 6.2 million barrels to sit 4% above the five-year average, while distillate stocks dipped slightly by 33,000 barrels. Despite the inventory builds and a slight dip in U.S. production to 13.753 million bpd, oil prices trended higher, with WTI trading at $60.63.
  • Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.