2026 Archives

Valor | Energy Connection – Jan. 12, 2026

Posted on January 12, 2026January 12, 2026 by Valor

January 12, 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.

Goldman warns oil prices may ease further in 2026 as oversupply deepens
Summary: Goldman Sachs analysts forecast that oil prices will decline in 2026 due to a “continuing supply wave,” with Brent averaging $56 per barrel and WTI $52. A projected surplus of 2.3 million barrels per day—driven by robust output from the U.S., Russia, and Venezuela—is expected to push inventories higher and outweigh geopolitical risks. The bank anticipates prices will bottom in Q4 2026 before a gradual recovery begins in 2027 as the market rebalances.
Read more

Oil market dynamics: factors that will drive prices in 2026
Summary: Crude oil posted its sharpest decline since 2020 in 2025, with Brent dropping 19% to near $60.85 and WTI falling 20% to $57.42 amid persistent oversupply. While the January 2026 capture of Venezuelan President Maduro creates political uncertainty, immediate supply impacts are limited given production is under 1 mb/d. Forecasts for 2026 remain bearish with Brent expected between $54–$62, as a potential 2–4 mb/d surplus outweighs a modest 1.2 mb/d demand growth projection.
Read more

Baker Hughes reports first rig count drop in three weeks
Summary: U.S. energy firms cut the total rig count by two to 544, with oil rigs falling by three to 409 and gas rigs dropping to 124, marking the first decline in three weeks. The Permian Basin count hit its lowest level since August 2021 at 244, contributing to a 7% year-over-year decline in total rigs. Meanwhile, the EIA projects 2026 crude output will dip to 13.5 million bpd amid falling prices, while gas production is forecast to rise to 109.1 bcfd on a 13% price increase.
Read more

Texas oil and gas pours $27 billion into public budgets
Summary: The Texas oil and gas industry paid $27 billion in state and local taxes in 2025, a 1% dip from the prior record, with $2.6 billion going to school districts. Employment rose to 495,500 and average wages hit $133,095, while July crude production set a record of 5.9 million barrels per day despite global oversupply. TXOGA President Todd Staples emphasized the industry is adjusting to market conditions while preparing for rising natural gas demand from AI data centers.
Read more

Venezuela oil sector fragile as companies seek changes
Summary: Oil firms demand reforms before investing in Venezuela, where the interim government agreed to transfer 30-50 million barrels of crude to the US after Maduro’s capture. Production dropped to 1.1 million barrels per day from a 3.5 million peak, prompting the US to supply naphtha diluent while seizing three sanctioned vessels. ExxonMobil CEO Darren Woods called the sector uninvestable without changes, leading President Trump to suggest excluding the company despite its offer to assist.
Read more

In 2025, U.S. natural gas spot prices increased from 2024’s record low
Summary: U.S. natural gas spot prices at Henry Hub averaged $3.52 per MMBtu in 2025, a 56% increase from 2024’s inflation-adjusted record low. While record production and lower power sector demand softened summer prices, winter heating needs and a 3 Bcf/d rise in LNG exports drove the annual average higher. Regionally, Northeast prices surged due to pipeline constraints and cold weather, whereas the Northwest saw declines driven by abundant Canadian supply.
Read more

U.S.A. crude oil stocks drop nearly 4MM barrels WoW
Summary: U.S. commercial crude oil inventories (excluding the SPR) fell by 3.8 million barrels to 419.1 million in the week ending January 2, placing levels about 3% below the five-year average. Conversely, total motor gasoline inventories rose by 7.7 million barrels and distillate stocks increased by 5.6 million barrels. Refinery utilization remained steady at 94.7%, while crude imports jumped by 1.4 million barrels per day.
Read more

Contact Valor Today

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.

Energy Tech Priorities for 2026: Where Leaders Should Focus Now

Posted on January 7, 2026January 8, 2026 by Valor

As the energy sector heads into 2026, technology decisions are becoming less about experimentation and more about operational clarity. Operators, mineral rights owners, and finance teams are under pressure to move faster, operate leaner, and make decisions with incomplete information — all while market complexity continues to increase.

The real challenge isn’t market volatility; it’s the operational friction created by legacy systems and fragmented data. Technology that centralizes information and reduces manual processes is becoming essential for scale.

Based on what we’re seeing across the industry and broader benchmarks, these five priorities are shaping the next phase of energy technology adoption.

1. From Automation to Insight

For years, the focus has been on automating simple workflows. In 2026, the differentiator is insight quality. Automation is now table stakes — clarity is the advantage.

Energy leaders are prioritizing platforms that don’t just “run” but actually surface the right information at the right time. This is where oil and gas outsourcing is evolving; it’s no longer just about offloading tasks, but about gaining access to AI-driven systems that flag risks in mineral management before they impact the balance sheet.

• Priority: Real-time visibility into assets and revenue.
• Goal: Reducing reconciliation gaps across owners, operators, and partners.

2. Transparency as a Competitive Requirement

Transparency is no longer a “nice to have.” Mineral rights and royalty stakeholders now expect clear, auditable views into ownership, payments, and performance.

In an increasingly complex and highly scrutinized energy landscape, technology that enables direct visibility into data helps build trust. When stakeholders can see the data themselves, the support burden on your team drops, and long-term relationships are strengthened.

3. Purpose-Built Beats One-Size-Fits-All

Many organizations are reassessing broad, monolithic software suites that promise everything but deliver limited flexibility.

We’re seeing a shift toward purpose-built solutions designed specifically for minerals and royalties — tools that reflect how the business actually operates, rather than forcing teams to adapt to generic systems.

In 2026, specialization increasingly outperforms scale. This has contributed to growth in oil and gas back-office outsourcing models that combine specialized technology with operational execution, helping firms reduce total cost of ownership while maintaining accuracy and control.

4. AI That Supports Decisions (Not Just Dashboards)

AI is moving from experimentation to application. The most valuable use cases aren’t flashy — they’re practical:

• Identifying anomalies in revenue and tax reporting before they become liabilities.
• Flagging risks and infrastructure opportunities earlier in the cycle.
• Supporting faster decision-making through AI-driven pattern recognition embedded directly in operational systems

Non-technical, explainable AI will win over black-box solutions.

5. Owner Engagement as a Strategic Advantage

Engaged owners are informed owners. Platforms that improve communication and visibility for mineral rights owners don’t just reduce support burdens—they improve operational efficiency and strengthen reputation.

As ownership structures become more complex, specialized mineral management technology is playing a larger role in operational efficiency, allowing for seamless interactions between owners and operators.

Looking Ahead

The energy companies that succeed in 2026 won’t be the ones with the most technology — they’ll be the ones with the right technology, aligned to how their business actually works.

The coming year presents an opportunity to simplify complexity, reduce friction, and invest in systems that deliver reliable, decision-ready information.

That’s what Valor’s platform is built to do.

Contact Valor Today

Contact us today if you need help see how our mineral management solutions can help you organize, optimize, and monitor your assets.

Valor | Energy Connection – Jan. 5, 2026

Posted on January 5, 2026January 5, 2026 by Valor

January 5, 2026 Edition

Big oil prepares for leaner prices and harder choices in 2026
Summary: The IEA forecasts a 3.84 million bpd supply surplus in 2026, while Goldman Sachs predicts LNG exports will surge over 50% through 2030. Wood Mackenzie projects the Permian Basin will account for more than 50% of U.S. onshore production, even as broader Lower 48 output stalls and companies defend maintenance levels at roughly $60 WTI. Facing this glut, firms may trim buybacks and shift M&A focus toward gas assets to meet rising AI and export demand.
Read more

U.S. oil drilling activity ends down for 2025, but production still near highs
Summary: The total U.S. rig count rose by one to 546, as oil rigs increased by three to 412 while gas rigs fell by two to 125, leaving the total down 43 from last year. Weekly crude production increased slightly to 13.827 million bpd, remaining just 26,000 bpd shy of the all-time high reached three weeks prior. Permian Basin activity held steady at 247 rigs, down 57 year-over-year, while the Eagle Ford slipped by one to 40, indicating that output remains robust despite reduced drilling activity.
Read more

OPEC+ reaffirms output pause as eight producers cite market stability
Summary: Eight OPEC+ producers confirmed a production pause through Q1 2026, citing healthy fundamentals despite an 18% price drop in 2025, the steepest annual decline since the pandemic. The group emphasized flexibility regarding the return of 1.65 million bpd in voluntary cuts, pledging to fully compensate for overproduction recorded since January 2024. Saudi Arabia, Russia, and others will continue monthly reviews to monitor market stability, with the next virtual meeting scheduled for February 1, 2026.
Read more

Venezuela’s political climate to drive oil markets after Maduro capture
Summary: Oil futures fluctuated as experts forecast a potential short-term price increase of $2-$3 per barrel, contingent on how Venezuela’s political and economic conditions evolve. Despite holding massive reserves, the country currently produces less than 1 million barrels per day, or under 1% of global supply, with 80% of exports previously flowing to China. Analysts warn that due to chronic underinvestment, it will take three to five years to recover to 2 million barrels daily.
Read more

Venezuelan oil policy shakes energy markets
Summary: The U.S. administration revoked Chevron’s license, impacting 240,000 bpd of Venezuelan crude exports, though unexpected U.S. inventory builds suggest weakening demand. Natural Gas trades at $3.94 with immediate support at $3.75, while WTI sits at $68.75, remaining bearish below its $69.25 pivot. Brent holds at $72.26, forming a Triple Bottom pattern that could target resistance at $73.
Read more

U.S. natural gas futures fall ahead of warmer weather, slow demand
Summary: U.S. natural gas futures for February delivery fell 9.6 cents, or 2.6%, to $3.59 per mmBtu as forecasts for warmer weather reduced expected heating demand, with Heating Degree Days dropping from 413 to 369. Production in the lower 48 states reached a record 110 bcfd in December, while LNG export flows also hit a record high of 18.5 bcfd. Meanwhile, storage saw a withdrawal of just 38 bcf for the week ended December 26, missing the 50 bcf analyst forecast.
Read more

U.S. LNG exports break 100 million tons in record 2025
Summary: The U.S. set a global record by exporting 111 million metric tons of LNG in 2025, exceeding 2024 levels by 23 million tons and surpassing Qatar by nearly 20 million. New capacity at Plaquemines LNG added 16.4 million tons, fueling a December record of 11.5 million tons as Europe remained the top destination with 9 million tons imported. Turkey purchased more U.S. LNG in December than all of Asia combined, while 2026 outlooks see further growth as Golden Pass begins production.
Read more