Category: 2026

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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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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.

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.

• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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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.

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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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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.

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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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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.

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%.
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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.
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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%.
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• 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.
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• 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.
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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.
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• 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.
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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.

January 19, 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.

• ‘Massive’ untapped oil and gas reserves discovered beneath the Permian
• Summary: The U.S. Geological Survey (USGS) has discovered 1.6 billion barrels of oil and 28.3 trillion cubic feet of gas in the Permian Basin’s Woodford and Barnett formations, resources potentially critical as traditional shale reserves decline. While experts describe the potential as “massive,” tapping these deeper, hotter formations presents technical hurdles—such as higher gas content and clay-related drilling hazards—that require favorable oil prices to be economically viable.
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• Natural gas demand to keep rising as LNG exports, AI drive growth
• Summary: U.S. natural gas demand continues to rise, driven by LNG exports, AI data centers, and manufacturing, having already grown 50% since 2006. It now powers 43% of U.S. electricity and accounted for 37% of total energy consumption in 2024. Producers are responding to this growth with a 23% year-over-year increase in rig counts. Despite the rising demand and exports, the EIA forecasts declining commodity prices in 2026, maintaining affordability.
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• Pipeline construction reaches an 18-year high on natural gas demand
• Summary: Natural gas pipeline construction is projected to reach an 18-year high in 2026, adding approximately 18 Bcf/d of capacity across Texas, Louisiana, and Oklahoma—a level unmatched since 2008. Driven by LNG exports and data center power needs, 65% of this expansion targets the Permian Basin to accommodate soaring associated gas production. With natural gas now comprising 40% of output in major tight-oil plays, Morningstar DBRS considers the risk of overbuilding low due to the robust long-term demand outlook.
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• Mitsubishi buys Aethon Energy assets for $7.5 billion
• Summary: Mitsubishi Corporation announced a $7.5 billion deal to acquire all U.S. gas and pipeline assets from Dallas-based Aethon Energy, comprising $5.2 billion in cash and $2.3 billion in assumed debt. The acquisition focuses on the Haynesville Shale in Northeast Texas and Northwest Louisiana, assets producing approximately 15 million tons of LNG equivalent annually. This move integrates with Mitsubishi’s existing North American infrastructure to feed Gulf Coast export terminals, aiming to meet surging global power demand from data centers and technology sectors.
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• U.S. oil drillers add 1 rig as total count dips
• Summary: The U.S. total rig count fell by one to 543 this week, though oil drillers added a single rig, bringing the oil count to 410. This remains 68 fewer than last year, while gas rigs dropped by two to 122, still up 24 year-over-year. The Permian Basin held steady at 244 rigs, with the only regional gain seen in the Haynesville. Meanwhile, U.S. crude production dipped by 58,000 bpd to 13.753 million bpd, just below all-time highs. Completion crews rose slightly to 156. Oil prices climbed on geopolitical risks, with Brent reaching $64.30 and WTI trading at $59.66 per barrel.
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• BP eyes $5bn green energy writedown as it pivots to oil
• Summary: BP expects a writedown of up to $5 billion on its “transition businesses”—including gas and low-carbon energy—as it refocuses on fossil fuels under incoming CEO Meg O’Neill. The company reported weaker Q4 oil trading, with Brent prices falling to an average of $63.73 amid a 20% annual slump in 2025. Despite the hit, BP reduced net debt to roughly $22 billion. This comes as Shell and Exxon abandoned their North Sea gas asset sale to Viaro Energy, citing changed commercial conditions.
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• Oil to average $55/bbl in 2026 ‘reset,’ says Enverus
• Summary: Enverus projects 2026 as a “reset year,” forecasting Brent crude to average roughly $55/bbl with tightening balances expected later in the year due to geopolitical risks involving Venezuela, Iran, and Russia. Conversely, natural gas remains constructive, with Henry Hub averaging $3.80/MMBtu this winter and Permian output rising 1.1 Bcf/d on new takeaway capacity. Power markets face strain from AI-driven demand, prompting data centers to seek behind-the-meter generation and driving sustained M&A in gas-fired assets.
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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.

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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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• 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.
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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.

January 5, 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.

1. Big oil prepares for leaner prices and harder choices in 2026
2. 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.
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• 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.
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1. OPEC+ reaffirms output pause as eight producers cite market stability
2. 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.
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• 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.
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• 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.
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1. U.S. natural gas futures fall ahead of warmer weather, slow demand
2. 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.
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1. U.S. LNG exports break 100 million tons in record 2025
2. 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.
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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.