Industry News Archives

Valor | Energy Connection – October 26, 2026

Posted on October 26, 2026October 26, 2026 by Valor

October 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.

EnCap closes continuation vehicle with $3.5 billion for core of Permian Basin
Summary: EnCap Investments closed a continuation vehicle for EnCap Minerals and Rock River Minerals with $3.5 billion in capital commitments, which the firm describes as the largest upstream energy continuation vehicle to date. The portfolio covers 134,000 net royalty acres in the Permian Basin and produces 37,000 barrels of oil equivalent per day. ExxonMobil, Diamondback, Occidental, and ConocoPhillips account for 48 percent of activity across the acreage.
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Brent Tops $116 as Middle East Risks Grow
Summary: Brent crude for December delivery settled at $116.72 per barrel on October 23, up 3.1 percent on the day and more than 6 percent for the week, according to Bloomberg reporting published by Rigzone. West Texas Intermediate for December settled at $103.27, up 3.8 percent on the day. The report attributes the move to continued supply concerns tied to Middle East security and disruptions affecting shipping and refinery operations.
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U.S. Rig Count Holds at 603 as Oil Drilling Rises and Natural Gas Activity Slips
Summary: The U.S. rig count held at 603 for the week ended October 23, according to Baker Hughes, up 53 rigs, or about 10 percent, from a year earlier. Oil rigs rose by one to 460, while gas rigs slipped by one to 132 and miscellaneous rigs stayed at 11. The Permian Basin was unchanged at 272, up 22 from 250 a year ago, and Texas fell by one rig to 277.
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What Direction Will the Henry Hub Gas Price Take in 2026, 2027?
Summary: The EIA’s October Short-Term Energy Outlook, as summarized by Rigzone, projects a Henry Hub average of $3.48 per MMBtu for 2026, compared with $3.53 in 2025. The agency forecasts $3.16 for 2027, down 32 cents, or nine percent, from 2026. Inventories were estimated at 3,523 Bcf at the end of September, with the EIA projecting 3,850 Bcf by the end of October, about two percent above the five-year average.
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Kinder Morgan to invest $1.6 billion in Permian Link pipeline
Summary: Kinder Morgan plans to invest $4.7 billion in two joint venture natural gas pipeline projects, including $1.6 billion in Permian Link through its Natural Gas Pipeline Company of America subsidiary. Permian Link is a 434-mile pipeline with 2.8 Bcfd of capacity, supported by long-term transportation agreements, with a total project cost of $4.2 billion and operations scheduled for the third quarter of 2030. The second project, Southeast Connector, is a 470-mile line designed to carry 2.6 Bcfd.
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Top LNG exporter QatarEnergy in talks to buy US LNG from Woodside’s Louisiana plant
Summary: QatarEnergy is reportedly negotiating to buy up to 3 million metric tons per year of LNG from Woodside Energy’s Louisiana LNG plant, according to Reuters sources, with a final deal potentially running 15 to 20 years. The plant is slated for 16.5 million tons per year of export capacity. Cheniere separately reported a long-term deal to supply QatarEnergy with 4 million tons per year, and Reuters reported advanced talks with Venture Global for at least 3 million.
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US crude and gasoline stocks fall, distillates rise, EIA says
Summary: U.S. crude inventories fell 3.06 million barrels to 412.5 million barrels in the week ended October 16, versus a Reuters poll expectation of an 820,000-barrel draw, according to the EIA. Gasoline stocks fell 2.95 million barrels to 205.3 million, while distillate stocks rose 1.68 million barrels to 104.3 million. Crude stocks at Cushing, Oklahoma rose 987,000 barrels, and refinery utilization slipped 0.1 percentage points to 93.4 percent.
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Valor | Energy Connection – October 19, 2026

Posted on October 19, 2026October 19, 2026 by Valor

October 19, 2026 Edition

U.S. Rig Count Holds at 603 as Oil Drilling Slips and Natural Gas Activity Rises
Summary: The U.S. rig count held steady at 603 for the week ended October 16, according to Baker Hughes, compared with 548 a year earlier. Oil rigs slipped by three to 459 while natural gas rigs rose by one to 133. The Permian Basin declined by two to 272 rigs and Texas fell by three to 278, with the Permian still 21 rigs above its level from a year ago.
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Oil Surges as Middle East Supply Fears Push Brent Near $110 and WTI Above $100 – Both Post Strong Weekly Gains
Summary: WTI for November delivery settled at $101.41 per barrel on October 16, up $9.56 or 10.41% for the week, while December Brent settled at $109.86, up $5.14 or 4.91%. Brent briefly touched $110, its highest level since May, as supply disruptions remained in focus. EIA data showed U.S. crude inventories fell 8.6 million barrels to 415.6 million for the week ending October 9, while distillate inventories fell 2.5 million barrels.
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Crescent to acquire assets in Eagle Ford from Devon Energy for $4.2 billion
Summary: Crescent Energy agreed to acquire Eagle Ford assets from Devon Energy for an estimated $4.2 billion. The assets produce about 68,000 barrels of oil equivalent per day net, with 55 to 60 percent oil, across roughly 90,000 net acres in DeWitt, Gonzales, and Karnes counties. Crescent expects total production of about 400,000 boe per day after the transaction, including about 170,000 barrels per day of oil.
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Natural Gas Market Indicators – October 16, 2026
Summary: The November Henry Hub futures contract settled at $3.24 per MMBtu on October 15, up 7.6% from $3.01 on September 29, according to the American Gas Association. Lower 48 working gas in storage rose 67 Bcf to 3,567 Bcf for the week ending October 9, 23 Bcf below the five-year average injection. LNG feedgas averaged 2.4 Bcf/d higher year to date through October 14, a 15.7% increase over 2025.
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U.S. Offers Another 17 Million SPR Barrels as Fuel Crisis Deepens
Summary: The Department of Energy issued a request for proposals on October 16 for an exchange of up to 17 million barrels from the Strategic Petroleum Reserve, part of 172 million barrels committed under the IEA’s 400 million barrel emergency action. The reserve stands at about 283 million barrels, and the article estimates it would fall to roughly 266 million if the full volume is taken. A similar June offer, with premiums of up to 24%, drew only about 500,000 barrels.
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Dallas Fed Examines Theft in the Oil Field
Summary: The Dallas Fed’s third quarter Energy Survey asked exploration and production firms about oil field theft, with 75 firms responding, including 26 focused primarily on the Permian. Among Permian-focused respondents, 46% reported theft in the past year, compared with 14% of those focused elsewhere. Of the 19 firms affected by theft, over 45% said its extent was unchanged, over 30% said it had increased, and about 85% rated the financial impact as low.
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ET Needs Other Levers to Make $2.625B Vaquero Deal Work
Summary: East Daley Analytics reviewed Energy Transfer’s agreement to buy Vaquero Midstream for $2.625 billion, which it estimates implies 7 to 10 times EBITDA. The Caymus plant runs about 500 MMcf/d against 675 MMcf/d of capacity, with about 100,000 dedicated acres and customer contracts averaging roughly 10 years of remaining life. Two added trains could lift capacity to about 1.2 Bcf/d, while rigs on the system fell from five to three in late September, according to the analysis.
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Valor | Energy Connection – October 12, 2026

Posted on October 12, 2026October 12, 2026 by Valor

October 12, 2026 Edition

ONEOK completes acquisition of assets in Midland Basin from Brazos Midstream
Summary: Tulsa-based ONEOK completed its acquisition of Brazos Midstream’s natural gas gathering and processing assets in the Midland Basin for approximately $4.425 billion, more than doubling its Midland Basin processing capacity to about 2.3 billion cubic feet per day including facilities under construction. The deal strengthens ONEOK’s position with a premier gathering and processing platform supported by high-quality acreage and long-term contracts with some of the basin’s leading producers. The transaction represents one of the largest Permian Basin midstream deals of 2026.
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U.S. rig count climbs above 600 as oil drilling leads weekly increase
Summary: The U.S. rig count rose by five to 603 for the week ended October 9, according to the latest Baker Hughes North America Rig Count Report, leaving the United States with 56 more rigs than the 547 operating during the comparable week last year, an increase of more than 10%. Oil drilling accounted for the increase, with oil rigs climbing by six to 462, while the Permian Basin led this week’s gains adding four rigs to reach 274. The U.S. fleet has grown from 588 rigs on September 4 to 603 as of the latest report, a gain of 15 rigs over five weeks.
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Oil ends week higher as Hurricane Isaias disrupts U.S. Gulf production
Summary: WTI crude closed at $91.85 per barrel on Friday, up $0.36 or 0.39%, while Brent closed at $104.72, up $0.44 or 0.42%, as hurricane-related supply disruptions outweighed easing concerns about Middle East oil shipments. Hurricane Isaias disrupted approximately 72% of U.S. Gulf of Mexico offshore oil production, equivalent to nearly 1.5 million barrels per day. The Brent-WTI premium widened to approximately $12.87 per barrel as Western Canadian Select’s discount to WTI hit its widest level since 2023 at $25.55 per barrel.
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ConocoPhillips expands LNG portfolio with 20-year Venture Global agreement
Summary: ConocoPhillips signed a 20-year LNG supply agreement with Venture Global, significantly expanding its long-term exposure to U.S. liquefied natural gas exports and diversifying its portfolio across multiple global supply sources. The agreement adds to ConocoPhillips’ existing LNG commitments and positions the company to benefit from growing international demand for U.S. natural gas through the early 2050s. The deal signals continued confidence in long-term LNG demand from one of the world’s largest independent oil and gas producers.
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Tanker rates soar to record as oil crisis becomes shipping crisis
Summary: The cost of shipping crude oil soared to record highs as the Iran war reshuffled global trade routes and tied up more tankers in inefficient and lengthy voyages, with the price of chartering a very large crude carrier from the Gulf Coast to China reaching $634,974 per day according to Baltic Exchange data. The shipping squeeze has added a significant cost premium on top of already elevated crude prices, with supertanker rates only recently slipping from their all-time highs. The tanker crunch reflects how supply disruptions are cascading beyond crude prices into the broader global energy logistics system.
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Hurricane Isaias shuts in 71% of U.S. Gulf oil production
Summary: Hurricane Isaias forced the shut-in of approximately 71% of U.S. Gulf of Mexico oil production as the storm tracked toward the Gulf Coast, affecting offshore platforms and disrupting crude supply from one of the country’s most productive offshore regions. The Bureau of Safety and Environmental Enforcement reported significant production curtailments across multiple deepwater and shelf operations as operators evacuated personnel and secured facilities ahead of the storm’s landfall. The shut-ins are expected to be temporary but add near-term upward pressure to domestic crude supply concerns.
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Execs predict future Henry Hub NatGas prices
Summary: Executives from 98 oil and gas firms participating in the third quarter Dallas Fed Energy Survey projected mean Henry Hub natural gas prices of $3.29 per MMBtu at the six-month mark, $3.46 at one year, $3.82 at two years, and $4.28 at five years. The average daily spot price during the survey period was $4.84 per MMBtu, and the November natural gas contract was found probing support near the $3.00 psychological mark before closing narrowly above resistance. Analysts note that soft winter gas contracts continue to suppress near-term upside despite production weakness and late-season heat providing some support.
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Valor | Energy Connection – October 5, 2026

Posted on October 5, 2026October 5, 2026 by Valor

October 5, 2026 Edition

Comstock, SOCAR advance $1.65-billion Haynesville partnership with framework agreement
Summary: Comstock Resources and Azerbaijan’s SOCAR executed a framework agreement to advance a $1.65 billion strategic partnership in the Haynesville shale. The agreement commits both companies to finalize a definitive purchase and sale agreement by October 31, aiming to close the transaction by the end of 2026. Under the deal, SOCAR will invest $1.65 billion in Comstock’s natural gas assets, while both firms evaluate international marketing opportunities to export attributable gas as LNG.
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U.S. rig count slips to 598 as gas drilling pulls back
Summary: The Baker Hughes North America Rig Count Report shows the U.S. rig count fell by one to 598 for the week ended October 2, though total rigs remain 49 higher than a year ago. Oil rigs rose by one to 456, gas rigs fell by two to 133, and miscellaneous rigs held at nine. Texas lost three rigs to fall to 278, while offshore activity added two rigs to reach 10, the Haynesville basin held 56 rigs (up over 40% year-over-year), and crude oil traded around $90.85 for WTI and $100.50 for Brent.
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Oil ends volatile week mixed as emergency reserve release knocks WTI lower but Brent holds above $102
Summary: WTI crude fell $1.76 to settle at $91.11 per barrel, dropping 1.41% for the week, while Brent crude dropped $0.06 to settle at $102.25 per barrel, rising 0.11% on a front-month basis. Friday’s market weakness followed a G7/IEA announcement to release 100 million barrels of diesel and emergency reserves over several months, including 50 million barrels from European governments. The Brent-WTI spread finished at approximately $11.14 per barrel as global refined product supplies remain tight.
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Diesel margins slide as G7 announces 100 million barrel stocks release
Summary: The G7 announced a four-month release of 100 million barrels of crude oil and diesel, pressuring middle distillate refinery margins that hit record highs last month. ING noted the ICE gasoil crack dropped to about $70 per barrel from $85 per barrel mid-last week, influenced by stock releases and reduced risk of a U.S. diesel export ban. Meanwhile, UK Maritime Trade Operations reported seven vessel strikes near the Strait of Hormuz since September 28 amid continued Persian Gulf tensions.
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US natgas futures fall as West Virginia pipe returns, Northeast spot drops to multi-year lows
Summary: NYMEX October natural gas futures fell 10.1 cents, or 3.2%, to $3.095 per mmBtu as TC Energy lifted force majeure on the Mountaineer XPress pipeline, which had affected 1.4 to 1.8 bcfd of flows. Northeast next-day spot gas prices dropped below $1 per mmBtu following a weekend nor’easter. While Lower 48 average production tied a record high 112.3 bcfd in September, gas storage surpluses are projected to narrow to 2.4% above normal as daily LNG feedgas flows averaged 18.0 bcfd during the month.
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OPEC+ holds November quota at 31.01 million barrels daily
Summary: OPEC+ agreed to maintain its monthly production quota at 31.01 million barrels per day for October and November across eight covered members. Despite this ceiling, the group produced only 25 million barrels daily in August, leaving actual output well below its official target. Kpler data showed Middle East oil export flows across key shipping points averaged 18.5 million barrels daily in the week to October 1, even as global markets remain tight amid disrupted production capacity.
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Oil’s new normal is higher prices
Summary: Middle Eastern crude exports recovered to 15.5 million barrels per day in September, with Saudi Arabian exports doubling to 5.4 million bpd after partial restoration of its East-West pipeline. Standard Chartered raised its 2026 average Brent forecast to $92.00/bbl from $85.50/bbl and WTI to $86.00/bbl from $80.25/bbl due to ongoing regional instability. For 2027, the bank expects both Brent and WTI to average $89.50/bbl, up from $77.50/bbl, as Brent traded down 1.5% to $103.72 and WTI fell 2.2% to $90.62.
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Valor | Energy Connection – September 28, 2026

Posted on September 28, 2026September 28, 2026 by Valor

September 28, 2026 Edition

Evolution Petroleum eyes cash-flow growth with Midland Basin royalty deal
Summary: Enbridge launched a non-binding open season for its proposed 2-bcfd West Texas Express natural gas pipeline project to transport Permian basin supply west from Waha to El Paso area markets. The project is currently expected to include over 150 miles of new 42-inch OD pipeline, with potential laterals serving Hudspeth County, Texas, and delivery points at the U.S.-Mexico border. Pending commercial support and approvals, Enbridge targets a Q4 2029 in-service date, with the open season closing on September 25, 2026.
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A volatile week for crude ends with lower prices
Summary: Crude prices experienced volatility as October WTI ranged between $88.70 and $101.10/bbl, while October Brent hit $108.25/bbl before settling with an $11.70 spread over WTI. An estimated 5.5 million b/d of crude is moving out of Yanbu and Fujairah, down from 7.8 million b/d in June, as global inventories fell 507 million bbl. EIA reports show SPR stocks down 400,000 bbl to 284.5 million bbl, while gas storage rose 53 bcf to 3.351 tcf, 2.9% above the five-year average.
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U.S. oil, gas drilling perks up as pressure mounts
Summary: Baker Hughes data shows total active U.S. drilling rigs increased to 599, rising 50 from a year ago as oil rigs grew by three to 455 and gas rigs gained one to 135. Weekly U.S. crude oil production averaged 13.939 million bpd, down slightly week-over-week but up 438,000 bpd year-over-year. Additionally, Primary Vision’s Frac Spread Count added three completion crews to hit 187, while Permian Basin active rigs increased by one to 270, standing 17 rigs higher than the same period last year.
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BP eyes bigger U.S. shale footprint after Devon deal talks
Summary: BP evaluated Devon Energy’s South Texas Eagle Ford position—covering roughly 90,000 net acres and 77,000 boepd of Q2 production—before ultimately walking away from a deal. Valued between $3.5 billion and $4.5 billion, Devon’s acreage is on the market alongside its Powder River Basin assets following a $58 billion merger with Coterra. Meanwhile, BP reported $5.7 billion in underlying replacement cost profit for Q2 as its BPX unit aims for over 650,000 boepd by 2030.
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Double E expansion advances Permian takeaway to Waha
Summary: Summit Midstream sanctioned a 900 MMcf/d expansion of the 135-mile Double E Pipeline after securing 550 MMcf/d in long-term commitments, bringing total contracted capacity to roughly 2.2 Bcf/d. The 70%-owned system expansion targets a Q4 2028 startup and expects Summit’s project share to total $100 million while 450 MMcf/d remains available. Meanwhile, Waha spot prices averaged $1.840/MMBtu, trading $1.055 below the $2.895 Henry Hub benchmark as the region eyes data center demand.
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Why record heat failed to lift U.S. natural gas prices
Summary: Henry Hub natural gas averaged $2.93 per MMBtu from June through August, 6% below last year’s period, despite record July temperatures reaching 77°F across the Lower 48. Solar and wind added 28.7 BkWh of generation, quadrupling the 7.5 BkWh increase from gas-fired power, while dry gas output rose 2.7 Bcf/d toward a record 111.2 Bcf/d full-year average. Working gas inventories entered spring 4% above the five-year average and are expected to hit 3.985 Tcf by late October.
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EIA: US crude oil inventories up 3 million bbl
Summary: U.S. commercial crude oil inventories rose by 3.0 million bbl for the week ended Sept. 18 to 426.4 million bbl, placing stocks roughly 2% above the five-year average. Refinery inputs dropped by 519,000 b/d to average 16.8 million b/d with operations at 94% capacity, while crude imports fell 1.2 million b/d to 5.9 million b/d. Product inventories saw gasoline decline 1.7 million bbl and distillates drop 400,000 bbl, as total product supplied averaged 20.6 million b/d over four weeks.
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Valor | Energy Connection – September 21, 2026

Posted on September 21, 2026September 21, 2026 by Valor

September 21, 2026 Edition

Enbridge launches open season for West Texas Express natural gas pipeline
Summary: Enbridge launched a non-binding open season for its proposed 2-bcfd West Texas Express natural gas pipeline project to transport Permian basin supply west from Waha to El Paso area markets. The project is currently expected to include over 150 miles of new 42-inch OD pipeline, with potential laterals serving Hudspeth County, Texas, and delivery points at the U.S.-Mexico border. Pending commercial support and approvals, Enbridge targets a Q4 2029 in-service date, with the open season closing on September 25, 2026.
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U.S. oil, gas rig count creeps up with strong prices
Summary: Baker Hughes reported that active U.S. drilling rigs increased to 595, reflecting a 53-rig gain from last year as oil and gas rigs both rose by two to 452 and 134, respectively. EIA data showed weekly domestic crude production averaged 13.944 million bpd, down slightly week-over-week but up 462,000 bpd from last year. Additionally, Primary Vision’s Frac Spread Count added six crews to reach 184, while Permian Basin active rigs rose by one to 269, standing 15 rigs above year-ago levels.
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Oil falls as supply fears ease
Summary: Global crude oil prices fell for a third straight session, with Brent edging 0.9% lower to $103.87 a barrel and WTI dropping 1.6% to $100.30 per barrel. Easing supply concerns followed reports that Saudi Aramco plans to partially restart its 7-million-barrel-per-day East-West pipeline within days and achieve full capacity within six weeks. Despite the price decline, money managers increased their net-long positions across Brent and WTI by 18,254 lots to 429,413 lots through September 15.
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EIA forecasts continued growth in U.S. crude oil production through 2026
Summary: U.S. crude oil production is projected to reach a record 13.8 million b/d in 2026, up from 13.7 million b/d in 2025, after averaging 13.7 million b/d in the first half of 2026. Permian production is forecast to average 6.8 million b/d in 2026, a 3% increase over 2025 supported by WTI prices averaging $84/bbl through August compared to $65/bbl in 2025. Federal Gulf of Mexico output rose 10% or 0.2 million b/d in first-half 2026, driven by four projects including Shenandoah at 70,000 b/d.
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U.S. natural gas market verging on record growth
Summary: The EIA projects U.S. natural gas production to reach record highs of 111.7 bcfd in 2026 and 115.9 bcfd in 2027, up from 107.6 bcfd in 2025. Domestic consumption and average LNG exports are also set to expand, with LNG exports forecast to rise from 15.1 bcfd in 2025 to 17.4 bcfd in 2026 and 18.6 bcfd in 2027. An EY benchmark study noted that natural gas production rose 18% and reserves increased 14%, even as industry capital expenditures fell 49% and overall M&A spending dropped 70% year over year.
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U.S. shale producer HighPeak Energy is exploring a sale
Summary: HighPeak Energy is exploring a potential sale after receiving an acquisition offer from an unnamed foreign party for its Permian Basin operations. The Fort Worth-based firm has engaged investment banks Evercore and Texas Capital Securities to solicit prospective buyers. According to LSEG data and company presentations, HighPeak had a $1 billion market capitalization with $1.1 billion in long-term debt at the end of June, and produced about 45,500 boepd across 140,000 acres in the first half of the year.
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U.S. oil inventories jump as Cushing stocks keep falling
Summary: The American Petroleum Institute estimated that U.S. crude oil inventories increased by 7.14 million barrels for the week ending September 11, while Cushing stocks fell by 246,000 barrels. Meanwhile, SPR inventories declined by 400,000 barrels to 285 million barrels, and U.S. production for the week ending September 4 rose to 13.947 million bpd. Gasoline and distillate inventories gained 1.46 million barrels and 1.61 million barrels respectively, as Brent crude reached $108.68 and WTI hit $107.38.
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Valor | Energy Connection – September 14, 2026

Posted on September 14, 2026September 14, 2026 by Valor

September 14, 2026 Edition

Brent oil passes $108 per barrel
Summary: Brent crude spiked to $108.49 per barrel and WTI reached $106.60 after Saudi Arabia closed its East-West pipeline, putting about 4% of global supply at risk. Global supply projections indicate 100.7 million bpd in 2026, down 5.7 million bpd year-over-year, as inventories dropped by 507 million barrels since February. Additionally, U.S. August headline CPI rose 3.4% year-over-year and final-demand PPI advanced 5.4%, creating an 86% market-implied probability of a 25-basis-point interest-rate increase.
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Summit Petroleum reports success in Upton County with U-turn lateral wells
Summary: Summit Petroleum completed five U-turn lateral wells in Upton County, achieving an average initial production rate of 1,584 barrels per day in the southern Midland Basin. The company’s 10-well development plan includes seven U-turn laterals and three straight laterals, with targets in the Jo Mill, Wolfcamp B, and Spraberry formations. Operations averaged 20 days from drill to rig release versus an estimated 23 days for the 21,000-foot measured depth wells across Summit’s single section of land.
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U.S. rig count rises to 591 as oil and gas drilling both increase
Summary: The U.S. rig count increased by three to 591 for the week ending September 11, standing 52 rigs or nearly 10% above the 539 operating a year ago. Oil rigs rose by one to 450 while natural gas rigs increased by two to 132, reflecting year-over-year gains of 34 oil rigs and 14 gas rigs. Regional activity showed the Williston Basin adding five rigs to reach 32 and North Dakota gaining four to reach 28, while New Mexico lost three rigs to drop to 92 and the Permian remained unchanged at 268 rigs.
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Summit Midstream confirms expansion of Double E pipeline in Delaware Basin
Summary: Summit Midstream made a final investment decision to expand the Double E pipeline by installing a compressor station to increase forward haul capacity to the Waha hub by about 900 million cfd. The company signed a new long-term transportation agreement for 200 million cfd, raising total contracted capacity on Double E to roughly 2.2 billion cfd. Supported by 550 million cfd of binding commitments, the expansion project targets an in-service date in Q4 2028 with discussions ongoing for 450 million cfd.
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U.S. natural gas market verging on record growth
Summary: The EIA projects U.S. natural gas production to reach record highs of 111.7 bcfd in 2026 and 115.9 bcfd in 2027, up from 107.6 bcfd in 2025. Domestic consumption and average LNG exports are also set to expand, with LNG exports forecast to rise from 15.1 bcfd in 2025 to 17.4 bcfd in 2026 and 18.6 bcfd in 2027. An EY benchmark study noted that natural gas production rose 18% and reserves increased 14%, even as industry capital expenditures fell 49% and overall M&A spending dropped 70% year over year.
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Soaring oil prices put Fed on track for September rate hike
Summary: Data from CME Group indicates 90% of trading respondents expect a 25-basis-point Fed rate hike following crude’s rise above $100 per barrel, an 8% gain last week, and Brent briefly topping $108. ING analysts highlighted that the August inflation reading of 3.4% remains well above target, with monthly core consumer prices up 0.29%. Meanwhile, AAA data shows U.S. national average fuel costs reaching $4.3120 per gallon for gasoline and rising to $6.2040 for diesel after diesel touched a $6 record.
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Debunking the viral claim that America has only 14 days of oil left
Summary: A viral claim misleads by comparing the 286.6 million barrels in the Strategic Petroleum Reserve with 20.7 million barrels per day of petroleum product demand, ignoring continuous domestic crude output of 13.9 million barrels per day and commercial stocks of 424.5 million barrels. The SPR, which held 638 million barrels in 2020, stands at its lowest level since November 1982 after a 180-million-barrel Biden release and a 172-million-barrel Trump exchange commitment. Recent DOE releases saw SPR stocks decline by 650,000 barrels daily over four weeks.
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Valor | Energy Connection – August 24, 2026

Posted on August 24, 2026 by Valor

August 24, 2026 Edition

Continental resources significantly expands Permian Basin position with acquisition of FireBird Energy II
Summary: Continental Resources agreed to acquire FireBird Energy II, adding about 54,000 net acres in the Midland Basin and expanding its Permian acreage by over 40% in 14 months. The acquired assets encompass 147,000 net resource acres across more than six stacked-pay reservoirs with 307 gross operated locations. Current production from the 95% operated assets is approximately 32,000 boepd (69% oil), and the deal is scheduled to close in September 2026 subject to customary conditions.
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Devon Energy reaches final investment decision on Solitude Pipeline System
Summary: Devon Energy reached a positive Final Investment Decision on the WhiteWater-led Solitude Pipeline System, taking a 25% equity interest alongside WhiteWater (50%), MPLX (10%), Diamondback Energy (7.5%), and Western Midstream Partners (7.5%). The system features two 48-inch natural gas pipelines with a phase-one capacity of 2.25 Bcf per day targeted for mid-2029, followed by a second phase in 2030. Devon has also secured LNG-linked pricing for 100 MMcf per day in 2027 and 150 MMcf per day in 2028.
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U.S. energy firms cut rigs for first time in four weeks, says Baker Hughes
Summary: Baker Hughes reported that U.S. energy firms reduced the total oil and gas rig count by five to 588 for the week ending August 21, marking the first decline in four weeks. Oil rigs fell by three to 452, gas rigs dropped by one to 127, and miscellaneous rigs decreased by one to nine, though the total count remains up 50 rigs or 9.3% year-over-year. Texas added four rigs to reach 281, while regional counts rose by two to 267 in the Permian basin and by one to 50 in the Eagle Ford shale.
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U.S. shale majors cut spending despite higher oil prices
Summary: U.S. shale companies are trimming spending to reduce debt and boost shareholder returns, with Chevron and ConocoPhillips cutting spending by 10% in the first half of the year. The spending cuts come as the International Energy Agency projects a global oil deficit of 1.8 million barrels daily. Meanwhile, EIA data shows U.S. crude production reached 13.714 million barrels daily in May, with full-year average daily production expected to rise by a modest 200,000 barrels per day to 13.8 million.
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EIA shows crude oil inventories still rising
Summary: U.S. crude oil inventories increased by 4.4 million barrels to reach 428.8 million barrels during the week ending August 14, placing commercial stockpiles right at the five-year average. Gasoline inventories rose by 700,000 barrels as daily production grew to 9.7 million barrels, while middle distillate stocks dropped by 1.5 million barrels to sit 13% below the five-year average. Over the last four weeks, total product demand averaged 20.5 million barrels per day, down 2.9% year-over-year.
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Enverus unveils top U.S. drillers of 2026
Summary: Helmerich & Payne led U.S. land drilling contractors in 1Q26 with 15.85 million feet of total drilled measured depth across 776 wells, followed by Patterson-UTI with 9.51 million feet across 442 wells. Exxon led drilling customers with 5.44 million feet drilled across 229 wells, while EOG moved up two spots to second with 3.39 million feet, ahead of Devon’s 3.30 million feet. U.S. active rigs averaged 637.6 for the week ending July 31, 2026, marking a 13% increase year over year.
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Exxon eyes Shell’s $8 billion U.S. chemicals business
Summary: Exxon is competing with LyondellBasell, Apollo Global Management, and Kuwait Petroleum Corporation to acquire Shell’s U.S. chemicals business, which could fetch $8 billion. Shell’s U.S. chemicals division comprises four production facilities across Louisiana, Texas, and Pennsylvania. Recent Shell divestments include selling a European renewable power business with 500 megawatts of capacity to TotalEnergies and a 35% stake in Cyprus Offshore Block 12 to MOL for $720 million.
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Valor | Energy Connection – August 17, 2026

Posted on August 17, 2026August 17, 2026 by Valor

August 17, 2026 Edition

Peregrine Energy Partners acquires producing position in Eddy County
Summary: Peregrine Energy Partners completed three acquisitions that added 3,680 net mineral and royalty acres across New Mexico, Colorado, Pennsylvania, and West Virginia. The acquired assets include interests in over 1,240 producing wells, with the Eddy County acquisition comprising roughly 40 net mineral wells in New Mexico. The New Mexico position currently produces across all depths from 5 wells targeting Yeso intervals operated by Riley Exploration Permian, though financial terms were not disclosed.
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Oil prices fall as OPEC and IEA slash 2026 demand outlooks
Summary: Brent Crude fell 0.5% to $88.56 per barrel and WTI Crude dropped 0.60% to $82.77 after OPEC and the IEA slashed 2026 demand forecasts. The IEA expects global oil demand to slump by 1.6 million bpd this year, a 510,000 bpd decline from July estimates, while OPEC lowered its growth forecast to 580,000 bpd from 780,000 bpd. Prices were further pressured by a 17.4 million barrel build in U.S. crude inventories for the week ending August 7, bringing commercial stockpiles to 424.4 million barrels.
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Permian Basin, Texas lead gains in drilling rig counts last week
Summary: Baker Hughes reported that the Permian Basin added 3 rigs to reach 263, while Texas added 2 rigs to reach 275, representing a 13.17 percent increase from 243 a year ago. The U.S. total held steady for a second straight week at 588 rigs, up 49 rigs or 9.09 percent year-over-year, supported by 3 additional oil-directed rigs. Regional counts remained unchanged in New Mexico at 96, Haynesville at 56, Eagle Ford at 49, Oklahoma at 50, and Louisiana at 38, while Marcellus fell by 1 rig to 24.
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U.S. fuel prices will stay painfully high for a while
Summary: Gasoline currently sells for over $4 a gallon while diesel reaches around $5.40, up from $3.16 and $3.72 twelve months ago, respectively. The U.S. Department of Energy updated its forecasts on Tuesday, projecting third-quarter gasoline to average $4 a gallon before falling to $3.72 in the fourth quarter. Meanwhile, diesel prices are projected to remain high and fall just shy of $5 a gallon by the end of the year, keeping fuel costs elevated well into the fall.
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U.S. natural gas output, demand to hit record highs in 2026, EIA says
Summary: The EIA projects U.S. dry gas production will rise from 107.6 bcfd in 2025 to 111.2 bcfd in 2026 and 116.0 bcfd in 2027, while domestic consumption increases to 92.0 bcfd in 2026 and 94.8 bcfd in 2027. Average LNG exports are forecast to grow from 15.1 bcfd in 2025 to 17.4 bcfd in 2026, helping lift October gas inventories to a decade high of around four trillion cubic feet. Meanwhile, coal production is expected to drop to 514.4 million tons in 2026, as fossil fuel carbon dioxide emissions fall to 4.818 billion metric tons.
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Oracle’s $165 billion data center plan hits a gas pipeline delay
Summary: Energy Transfer subsidiary Transwestern Pipeline pushed the in-service date for its Green Chile Project from August 15 to February 1, 2027, creating a six-month delay for Oracle’s Project Jupiter in New Mexico. The pipeline is designed to supply up to 400 million cubic feet of natural gas per day, which represents about 0.4% of total Lower 48 U.S. gas production, to power up to 2.5 gigawatts of Bloom Energy fuel cells. Following the filing, shares of Oracle dropped 4% while Energy Transfer gained 1.4%.
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Net Power says it is focusing on gas to ride data center demand
Summary: Net Power Inc. has indefinitely shelved its Oxy-Combustion Cycle emission-capturing technology to prioritize unabated natural gas generation for data center demand. The Houston-based company is pursuing a West Texas gas-fired generation project with an expected capacity of one gigawatt, having contracted two gas turbine generator sets with a nominal gross power of approximately 68 megawatts. Net Power reported $312.91 million in current assets and $17.58 million in current liabilities at the end of Q2.
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Valor | Energy Connection – August 10, 2026

Posted on August 10, 2026August 10, 2026 by Valor

August 10, 2026 Edition

Diamondback reports first production of one million barrels of oil equivalent
Summary: Midland-based Diamondback Energy reported Q2 production of 1.018 million boed, the first time the company has reached at least one million boed. Oil production rose to 525,000 b/d while CEO Kaes Van’t Hof confirmed the company is holding capital spending at $3.9 billion this year, relying on technical innovation to improve recovery across nearly 9,000 locations on 902,000 Permian Basin acres.
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San Mateo Midstream closes $752M acquisition of Cardinal Midstream
Summary: San Mateo Midstream, a joint venture between Matador Resources and Five Point Infrastructure, completed its $752 million acquisition of Cardinal Midstream in the northern Delaware Basin. The deal adds a gas processing plant in Loving County, Texas with roughly 320 MMcf/d of inlet capacity and approximately 145 miles of gathering pipelines, bringing San Mateo’s total processing capacity above one billion cubic feet per day. The acquisition makes San Mateo the largest private natural gas processor in the area and adds nine new gas customers to the system.
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U.S. energy firms leave rig count unchanged in latest week, Baker Hughes says
Summary: U.S. energy firms left the total rig count unchanged this week as oil rigs fell by three to 409 while gas rigs rose by three to 133, their highest level since July 2023. The count remains 45 rigs or 8.3% above last year, and the EIA projects 2026 crude output will reach 13.7 million bpd with gas output hitting 111.0 bcfd. Despite the pause, the sustained year-over-year growth reflects continued operator confidence in current price levels.
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Natural gas producers head into winter promising restraint
Summary: Natural gas producers are heading into winter 2026/27 deferring wells and tying drilling plans to stronger prices, even as new Permian Basin pipelines open the market’s next wave of supply. The Hugh Brinson Pipeline is expected to reach its full 1.5 Bcf/d capacity by September 1, directing more Permian gas to Henry Hub as the summer cooling season winds down. Storage inventories remain 6.7% above the five-year average following a larger-than-expected 33 Bcf build for the week ending July 31.
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Oil price uncertainty as negotiations continue
Summary: WTI crude futures were trading near $84.12 late in the week, down approximately 7%, as conflicting signals from ongoing Hormuz negotiations created uncertainty about the near-term supply outlook. Vessel traffic through the Strait declined from the prior week as Iran weighed terms for a potential permanent shipping arrangement. Analysts noted that limited spare capacity and low commercial inventories leave prices exposed to significant volatility in either direction.
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U.S. upstream M&A declines in Q2, but Permian demand remains robust
Summary: U.S. upstream M&A fell to $9.1 billion in Q2, down 76% from Q1 and the third-lowest quarterly total since 2020, as crude price volatility complicated deal valuations. Despite slower deal flow, Enverus reports that pricing for top-tier Permian acreage keeps climbing as high-quality drilling locations become scarce. The firm expects activity to accelerate in H2 2026 as higher oil prices improve free cash flow for buyers and encourage private operators to bring assets to market.
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How Chevron became the AI darling of Big Oil
Summary: Chevron signed a 20-year agreement with Microsoft to supply 2.67 gigawatts of natural gas-fired power for data centers in Reeves County, Texas, in a project dubbed Project Kilby slated to come online in 2028. CEO Mike Wirth confirmed the Permian Basin can grow production to support additional hyperscaler agreements, positioning Chevron as the leading energy company in AI data center power. SpaceX and Amazon are also building private gas power plants in Texas, with Amazon’s proposed GW Ranch project potentially generating 7.65 gigawatts from 35 turbines.
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