Industry News Archives

Valor | Energy Connection – August 24, 2026

Posted on August 24, 2026 by Valor

August 24, 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.

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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Valor | Energy Connection – August 3, 2026

Posted on August 3, 2026August 4, 2026 by Valor

August 3, 2026 Edition

$2.2 billion merger creates major Permian land and minerals platform
Summary: SoftVest and Blackbeard signed an agreement to combine Permian Basin Royalty Trust with Blackbeard’s assets to create PBT Land and Minerals in a $2.24 billion deal. Existing PBT unitholders will own 59% of the new entity, while Blackbeard holds 41% after contributing 80,000 net royalty acres and 68,000 surface acres. Blackbeard Operating has increased Waddell Ranch production from 3,000 bpd to over 35,000 bpd, and the new company will assume a $500 million credit facility with leverage below 0.4x EBITDA.
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U.S. natural gas prices fall 4% to 11-week low on record output
Summary: U.S. gas futures fell 3.6% to settle at $2.767 per mmBtu, marking an 11-week low driven by record daily output of 112.3 bcfd and ample storage. Average Lower 48 output rose to 110.6 bcfd in July, while storage levels sat 6.6% above normal for the week ending July 24. Meanwhile, average gas flows to major U.S. LNG export plants eased to 17.2 bcfd in July due to plant maintenance, contrasting with higher international prices of $20 per mmBtu in Europe and $22 in Asia.
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Oil prices settle more than 1% higher, log strongest month since March
Summary: Oil prices closed higher on Friday as Brent rose 1.2% to $90.12 a barrel and WTI gained 1.3% to $84.67, bringing July gains to 24% and 21%, respectively. Market data showed 29 commodity vessels transited the Bab el-Mandeb strait on Thursday, while U.S. crude output dropped 2% in May from April’s record high. Concurrently, U.S. demand for crude and petroleum products fell over 3.5% in May to 20.07 million barrels per day, as analysts projected Brent crude to average $85.22 per barrel in 2026.
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Counts decline last week of drilling rigs in Texas, Permian Basin, U.S.
Summary: Baker Hughes reported that U.S. drilling rigs dropped by 1 to 587, which remains up 45 rigs or 8.30 percent from 542 a year ago. Texas experienced its first decline after 14 weeks, dropping 2 rigs to 272, though its count remains up 23 rigs or 9.24 percent year-over-year. The Permian Basin count fell by 1 rig to 258, New Mexico held steady at 96, and Haynesville retained second place among basins with 56 rigs, while Eagle Ford held at 47, Oklahoma at 50, Louisiana at 37, and North Dakota at 24.
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Strategic petroleum reserve now below half capacity of crude oil
Summary: The Bipartisan Policy Center reported that the Strategic Petroleum Reserve held 308 million barrels of crude oil as of July 24, which is less than half its 714 million barrel capacity and the lowest since 1983. Inventory fell following a 180 million barrel release in 2022 during the Russia-Ukraine war and a 172 million barrel release in 2026 after the Strait of Hormuz closed. Although below the 726 million barrel peak of 2009, the SPR volumes helped bridge gaps alongside reduced customer demand.
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Exxonmobil, Chevron steer windfall profits into debt reduction
Summary: ExxonMobil and Chevron directed Q2 blowout profits toward debt reduction rather than major buyback increases, with ExxonMobil lowering net debt by over $7 billion. Chevron allocated $8.4 billion to debt reduction and lifted output 20% to 4.07 million barrels per day, while Shell reduced net debt by $10.8 billion to lower its net debt-to-equity ratio under 19%. ExxonMobil posted $14.7 billion in overall profit, while Chevron achieved record quarterly profits supported by U.S. refinery utilization above 97%.
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OPEC+ is about to pause oil output hikes
Summary: OPEC+ plans to pause phased output increases after September, following a final target increase of about 188,000 barrels per day. The move concludes the rollback of a 1.65 million barrels per day supply cut agreed upon in 2023, even as Iraq’s output fell from 4 million to 1.4 million barrels per day. With Goldman Sachs warning oil could reach $120 per barrel, companies like Chevron and ConocoPhillips hold significant stakes in Iraqi fields, including West Qurna 2 and Kirkuk assets.
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Valor | Energy Connection – July 27, 2026

Posted on July 27, 2026July 27, 2026 by Valor

July 27, 2026 Edition

Expand Energy to acquire Twin Eagle in $1.25 billion natural gas marketing deal
Summary: Expand Energy agreed to acquire natural gas marketer Twin Eagle Holdings for $1.25 billion in a transaction expected to close in the third quarter of 2026. Twin Eagle markets over 5 Bcf per day of natural gas and manages 44 Bcf of storage capacity alongside 2 Bcf per day of firm transportation. Upon closing, the combined entity expects to market about 14 Bcf per day of natural gas, while generating $200 million in initial annual EBITDA and $150 million in annual synergies by the end of 2028.
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Oil market’s glut narrative just blew up
Summary: Brent crude topped $100 per barrel as supply disruptions struck multiple global chokepoints simultaneously, tightening markets. Concurrent strikes suspended 1.7 million barrels daily in Kazakh flows at Novorossiysk, while Strait of Hormuz flows fell from 20 million barrels daily. Global crude demand dropped nearly 5% in Q2, with European diesel consumption down 5.7% in May and China’s diesel and gasoline demand falling 10% and 5% respectively.
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Matador Resources acquires Paloma Permian, Ridge Runner in Delaware
Summary: Matador Resources agreed to acquire Delaware Basin assets from Paloma Permian and Ridge Runner Resources, expanding its total position to approximately 240,000 net acres. A subsidiary will buy Paloma Permian for $1.275 billion, acquiring 16,235 net undeveloped acres in Eddy and Lea counties, 156 net locations, and estimated third-quarter production of 10,600 to 11,600 boed (57 percent oil). The Ridge Runner deal adds at least 150 net operated locations in the Woodford play of west Texas and southeast New Mexico.
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U.S. oil drillers take a break as oil prices hover near $100
Summary: The total number of active U.S. drilling rigs fell to 587, as oil rigs decreased by 2 to 450, gas rigs rose by 1 to 127, and miscellaneous rigs held at 10. Weekly U.S. crude oil production averaged 13.798 million bpd for the week ending July 17, down from 13.861 million bpd the prior week but up 525,000 bpd year-over-year. Frac spread crews fell by 4 to 196, while Permian Basin rigs dropped by 1 to 258 as Brent crude traded down to $95.96 (-4.70%) and WTI dropped to $88.30 (-4.22%).
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Energy Transfer, Sunoco, two others announce move to Texas
Summary: Four oil and gas companies, including Energy Transfer, Sunoco LP, SunocoCorp LLC, and USA Compression Partners, jointly announced their move from Delaware to Texas. The redomiciliations took effect on July 6, becoming effective on July 13 for market purposes, with all four companies now based in Dallas. Energy Transfer operates 140,000 miles of pipelines across 44 states, while Sunoco operates 14,000 miles of pipelines and at least 160 terminals as USA Compression Partners serves as a gas provider.
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Oil near $100 puts Fed and peers in interest-rate spotlight
Summary: Central bankers across the Group of Seven are evaluating potential interest rate responses as crude oil approaches $100 per barrel, threatening to reignite energy-driven inflation. Ahead of the Federal Reserve’s July 29 decision, U.S. gross domestic product is projected to show an annualized 2.1% expansion in the second quarter. Globally, euro-zone inflation picked up to 2.9% in July, South Korean exports surged over 50% year-on-year in early July, and Colombia faces a 12.5% rate consensus.
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EQT misses quarterly profit estimates on weak gas prices, raises production forecast
Summary: EQT posted an adjusted second-quarter profit of 39 cents per share, missing estimates of 40 cents as natural gas futures dropped 17.5% to $3.020 per mmBtu. Despite its realized price dropping to $2.65 per thousand cubic feet equivalent, the company’s total sales volume rose 11% to 634 bcfe while capital expenditures grew 20.2% to $666 million. EQT raised its full-year 2026 production forecast to between 2.38 tcfe and 2.45 tcfe and expects third-quarter total sales volume of 570 bcfe to 620 bcfe.
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Valor | Energy Connection – July 20, 2026

Posted on July 20, 2026 by Valor

July 20, 2026 Edition

Magnolia buys WildFire Energy in $4.06 billion deal, adds 500 miles of pipelines
Summary: Magnolia Oil & Gas agreed to acquire WildFire Energy for $4.06 billion, adding 500 miles of pipelines and expanding its position to over 1.25 million net acres. The transaction includes assets producing about 53,000 boe/d with 70% oil, $600 million in assumed notes, and 32.2 million common shares issued to WildFire owners. Magnolia expects at least $100 million in annual cost savings and operational synergies from the purchase, while also boosting its quarterly dividend by 9% to $0.18 per share.
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Oil’s oversupply narrative just died
Summary: Renewed geopolitical hostilities pushed Brent above $85 per barrel as the oversupply narrative flipped into fears of global shortages. Meanwhile, Asian LNG buying set a July record of 23 million tonnes due to extreme heat, driving Asia’s benchmark JKM price to $19.5 per MMBtu while European imports dropped to 6.90 million tonnes. Oil market data also revealed that China’s June crude imports fell 41% year-over-year to 7.12 million b/d, while Nigerian production surged to 1.56 million b/d.
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US energy firms boost rig count to highest since April 2025, Baker Hughes says
Summary: U.S. energy firms increased the total rig count by seven to 588 for the week ending July 17, marking a fifth consecutive weekly gain and placing the count 44 rigs or 8% above last year’s level. Baker Hughes reported that oil rigs rose by seven to 452, gas rigs held at 126, and miscellaneous rigs stayed at 10. Statewide counts rose by two to 50 in Oklahoma and by two to 274 in Texas, as the EIA projected crude output will reach 13.8 million bpd and gas output will reach 111.3 bcfd in 2026.
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U.S. crude oil, gasoline inventories still falling
Summary: The American Petroleum Institute reported that U.S. crude oil inventories fell by 564,000 barrels for the week ending July 10, while gasoline stocks dropped by 1.664 million barrels. Another 2.99 million barrels left the Strategic Petroleum Reserve to reach 316.5 million barrels, leaving the reserve 415 million barrels below maximum capacity. U.S. crude production rose to 13.860 million bpd, up 475,000 bpd from last year, as Brent crude rose 2.24% to $85.17 and WTI gained 1.92% to hit $79.64.
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USA LNG growth exceeding all expectations, Yergin says
Summary: U.S. LNG exports are poised to become the nation’s second largest net export by 2031, with feedgas demand projected to double to 36 billion cubic feet per day over the next five years. An S&P Global study projects that the sector will support 555,000 annual jobs, contribute $1.4 trillion to GDP, and raise household gas costs by just 1.6 percent. Concurrently, the EIA forecasts U.S. LNG gross exports to rise from 15.1 billion cubic feet per day in 2025 to 17.4 billion in 2026 and 18.6 billion in 2027.
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NOG maintains 2026 production outlook as Permian volumes recover
Summary: NOG reaffirmed its 2026 guidance despite Q2 curtailments of roughly 7,000 boed due to negative Waha gas pricing and the deferral of three net wells. Stronger basin performance helped NOG project Q2 oil production between 67.5 Mboed and 68.25 Mboed, with Williston exceeding forecasts by 4% and Uinta by 11.5%. Capital spending for Q2 reached $190 million to $200 million, while NOG deployed $45 million into 30 acquisitions and completed its Duvernay deal for CA$237 million and 3.7 million shares.
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Why gasoline prices don’t always move in lockstep with crude oil prices
Summary: Crude oil usually accounts for over half the cost of gasoline, with the remainder determined by refining, transportation, distribution, and taxes. Gasoline markets face tighter global conditions as Russian refinery processing rates hit 21-year lows, Middle Eastern refining facilities face disruptions, and Asian exports remain constrained. To help meet fuel demand, U.S. refineries operated at 95.8% of capacity for the week ending July 3, producing 9.7 million barrels per day of finished gasoline.
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Valor | Energy Connection – July 13, 2026

Posted on July 13, 2026 by Valor

July 13, 2026 Edition

EIA: Crude oil inventories in U.S. see rare build
Summary: According to the EIA, U.S. crude oil inventories increased by 3.0 million barrels to 411.4 million barrels for the week ending July 3, placing commercial stockpiles 6% below the five-year average. Meanwhile, gasoline inventories decreased by 1.9 million barrels with daily production at 9.7 million barrels, and distillate stocks fell by 5.0 million barrels to leave them 12% below the five-year average. On Wednesday morning, Brent crude futures rose 4.33% to $77.37 per barrel, while WTI gained 4.22% to settle at $73.41.
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U.S. oil, gas drillers hang back in volatile market
Summary: The total active U.S. drilling rig count rose to 581, up 44 from last year, as oil rigs held at 445, gas rigs remained at 126, and miscellaneous rigs grew to 10. Meanwhile, weekly U.S. crude oil production rose to an average of 13.860 million bpd, up from 13.810 million bpd the prior week, while the frac spread count rose by 5 to 205 crews. Regionally, the Permian Basin rig count dropped by 5 to 256 while Eagle Ford rose by 3 to 47, as Brent oil fell to $75.72 per barrel and WTI dropped to $71.26.
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Marubeni acquires Barnett shale operator EagleRidge Energy
Summary: Marubeni Corporation has completed its acquisition of EagleRidge Energy to expand its North American natural gas portfolio. As the third-largest producer in the Barnett Shale, the Dallas-based company operates more than 3,500 wells across around 450,000 gross acres in North Texas and produces around 300 MMcfe/d. This transaction expanded the position through a series of acquisitions completed since September 2024, appointing Tom Ashton and Sam Miller as co-presidents alongside vice chairman Michael Ronca.
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Permian growth leads U.S. to record oil production
Summary: U.S. crude oil production reached a record 13.6 million barrels a day in 2025, breaking the 2024 record of 13.2 million barrels a day. Driven by the Permian Basin, which grew 4% to 6.6 million barrels a day, domestic output was roughly 40% higher than Russia’s 9.9 million barrels and Saudi Arabia’s 9.6 million barrels. These 2025 gains occurred despite a 5% drop in active rigs and a decline in WTI prices to $65 a barrel, though the EIA forecasts production will hit 14.2 million barrels a day by 2027.
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U.S. Strategic Petroleum Reserve is 56 percent empty
Summary: U.S. Strategic Petroleum Reserve stocks fell to 319.48 million barrels for the week ending July 3, leaving the authorized 714 million barrel capacity about 44 percent full and 56 percent empty. This volume dropped by 6.2 million barrels, or 1.9 percent, week on week and 83.5 million barrels, or 20.7 percent, year on year. The drawdown is a 172 million barrel domestic contribution to a broader 400 million barrel international release, which will be replaced with 200 million barrels very soon.
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U.S. natural gas futures held back by adequate supply
Summary: U.S. natural gas futures are lower as ample supply and above-average storage keep weather-driven rally attempts at bay, leaving Nymex natural gas off 2.3% at $3.139/mmBtu. Bank of America Global Research raised its Henry Hub price forecast for the second half of the year to $3.80/mmBtu from $3.60/mmBtu while keeping its 2027 price estimate at $4/mmBtu. While production continues to grow, it has been offset by LNG feedgas demand, power sector factors, and Canadian imports since the April lows.
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Texas oil and gas exploration and production jobs rise for third straight month
Summary: Texas upstream oil and natural gas employment grew by 4,100 jobs in May, marking the third consecutive month of gains for the sector. The upstream oil and natural gas industry currently sustains over 850,000 total positions, supporting an additional 232,000 indirect supply chain jobs and 421,000 induced jobs across the economy. From a longer-term perspective, employment has expanded by 40,500 jobs since the pandemic-era low point in September 2020, representing an increase of nearly 26 percent.
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Valor | Energy Connection – July 6, 2026

Posted on July 6, 2026 by Valor

July 6, 2026 Edition

OPEC+ approves further oil output increase as Hormuz exports start to recover
Summary: OPEC+ agreed to raise production quotas by 188,000 barrels per day from August, adding to prior hikes that increased targets by nearly 800,000 bpd from April through July. Total group output had fallen from 42.77 million bpd in February to 33.13 million bpd in May before beginning a partial recovery in June. Meanwhile, Brent crude traded near $72 per barrel, down from peaks over $120, as the seven core members work to unwind the remaining 379,000 bpd of a 1.65 million bpd cut enacted in 2023.
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Citi: Oil could sink to $60 as Hormuz traffic normalizes
Summary: Citigroup projects Brent crude prices could plunge to $60 or $65 a barrel by the end of the year as shipping through the Strait of Hormuz normalizes. Other Wall Street firms have also adjusted their forecasts downward following the signing of the U.S.-Iran memorandum of understanding. Goldman Sachs predicts a global oil surplus of roughly 3 million barrels per day next year, noting that a projected global SPR rebuilding of just over 1 million barrels per day would still leave a 2 million barrel surplus.
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Execs predict where Henry Hub price will land in future
Summary: In the second quarter Dallas Fed Energy Survey, executives from 97 firms projected mean Henry Hub gas prices of $3.35 per MMBtu in six months, $3.45 in one year, $3.75 in two years, and $4.14 in five years. For the end of 2026, 123 executives forecasted an average price of $3.36 per MMBtu, within a range of $2.00 to $4.65, while the average spot price during the survey period was $3.15. Meanwhile, reports noted the August contract closed at $3.275 on Tuesday, up 9.4 cents or 3.0 percent.
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U.S. energy firms add rigs for third week in a row, says Baker Hughes
Summary: The total U.S. oil and gas rig count increased by seven to 580 for the week ending July 2, a figure that is 41 rigs or 7.6% higher than last year’s level. Baker Hughes reported that oil rigs climbed by five to 445, gas rigs rose by one to 126, and miscellaneous rigs grew by one to nine. This activity follows consecutive annual rig count declines of 20% in 2023, 5% in 2024, and 7% in 2025, though the EIA projects 2026 crude output will reach 13.7 million bpd and gas output will hit 111.0 bcfd.
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OPEC oil production jumps, but Gulf supply is still far from normal
Summary: OPEC oil production rebounded sharply in June as 11 member nations produced 19.43 million barrels per day, marking a monthly increase of 3.3 million bpd. This rise followed the lifting of a naval blockade under a 60-day agreement, though output remained well below quotas and pre-war tanker traffic levels. Meanwhile, global supply pressures persist as the United States posted record crude production of nearly 14 million barrels per day, and the UAE exported record volumes from its own storage.
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Shell offloads stake in U.S. Gulf production hub
Summary: Shell is selling its 50 percent ownership in the Na Kika platform and 100 percent in the Coulomb tieback to Ridgewood Energy and Talos Energy for $1.7 billion. In 2025, the Na Kika platform contributed 37,000 boe a day to Shell’s production and accounted for 4.3 million boe of proven reserves, while Coulomb accounted for 7.2 million boe. In a separate U.S. divestment, Shell completed the transfer of Jiffy Lube International, which comprised 6.5 percent of its regional footprint, for $1.3 billion.
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XRG expands rio Grande LNG stake, now invested across all five trains
Summary: XRG acquired an additional 7.6% equity interest in Trains 4 and 5 of the Rio Grande LNG project in Texas from Global Infrastructure Partners. This expands on its prior purchase of an indirect 11.7% stake in Phase 1, which includes Trains 1 through 3. The NextDecade-operated facility has roughly 30 MMtpa of liquefaction capacity under construction, with Trains 4 and 5 adding 12 MMtpa, and it is expected to receive first gas in the second half of 2026 before production begins in 2027.
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Valor | Energy Connection – Mar. 30, 2026

Posted on March 30, 2026March 30, 2026 by Valor

March 30, 2026 Edition

Waha prices will remain weak until fall, analysts say
Summary: Natural gas prices at the West Texas Waha hub averaged negative $3.80 per MMBtu in March, driven by pipeline maintenance and crude-focused production growth. Analysts from East Daley Analytics noted that U.S. gas remains dislocated from surging global benchmarks like JKM and TTF because domestic LNG export facilities are already operating at maximum capacity. Relief is expected by September 2026, when the Blackcomb pipeline and Gulf Coast Express expansion are slated to come online, potentially lifting Waha futures to $3.35 per MMBtu.
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U.S. drillers cut oil and gas rigs for second week in a row, Baker Hughes says
Summary: U.S. energy firms reduced the total oil and gas rig count by nine to 543 for the week ending March 27, marking the first back-to-back weekly decline since January. Oil rigs dropped by five to 409, while gas rigs fell by four to 127, leaving the total count 8.3% below last year’s levels. Despite fewer active rigs, the EIA projects 2026 crude output will rise to 13.61 million bpd and gas production will reach 109.5 bcfd as the Iran War drives the first WTI price increase in four years.
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Oil execs forecast higher near-term WTI prices in Q1 Dallas fed energy survey
Summary: Executives from 116 oil and gas firms have significantly revised their price expectations upward in the first quarter 2026 Dallas Fed Energy Survey. Amid heightened geopolitical volatility and supply disruptions in the Middle East, the mean forecast for WTI crude oil at the end of 2026 jumped to $74.04 per barrel, up from just $62.41 in the previous quarter’s survey.
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“The cushion is gone”: Rystad Energy warns of structurally fragile oil market
Summary: Rystad Energy reports that the global oil market has reached a critical tipping point. After four weeks of absorbing the 17.8 million bpd disruption from the Strait of Hormuz via surplus inventories and floating storage, those buffers are now largely depleted. The market has shifted from “buffered” to “structurally fragile,” meaning even minor secondary shocks could now trigger disproportionate and violent price spikes.
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Fed survey finds texas oil and gas activity rebounds, uncertainty remains high
Summary: The Q1 2026 Dallas Fed Energy Survey reveals a significant turnaround for the Texas energy sector. The Business Activity Index surged 27 points to 21, marking the first expansionary reading in nearly a year. While oilfield services are driving this recovery, the “rebound” is complicated by a stark divide between large and small producers and a “jobless” recovery.
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Kodiak Gas Services acquires large compression assets
Summary: Kodiak Gas Services has significantly expanded its Permian Basin footprint through a $24 million acquisition of 20,000 horsepower (HP) in large-scale compression assets. This deal includes a seven-year service agreement expected to generate $7 million in annualized revenue. Beyond this acquisition, Kodiak is scaling its infrastructure with new facilities in Pecos and Midland to support a total projected addition of 170,000 HP in 2026.
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Why natural gas bills aren’t rising like prices at the pump
Summary: While U.S. gasoline prices have surged nearly $1 in a month to almost $4 per gallon, domestic natural gas remains an “energy island.” Prices at the Henry Hub in Erath, Louisiana, have held steady near $3 per MMBtu, even easing slightly in recent weeks. This stability is driven by the fact that U.S. LNG export terminals are already running at maximum capacity; because no additional gas can physically leave the country to capture higher global prices, the domestic surplus remains trapped at home, keeping prices subdued.
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Valor | Energy Connection – Mar. 23, 2026

Posted on March 23, 2026March 23, 2026 by Valor

March 23, 2026 Edition

The fallout from oil’s surge is spreading as forecasts for crude keep rising
Summary: Brent and WTI crude have soared over 40% in a month, with Brent trading at $108.87 and WTI at $99.20 as Middle East conflict disrupts 20% of global seaborne refined products. Delta and American Airlines each anticipate a $400 million increase in first-quarter fuel costs, as jet fuel swap prices nearly doubled to over $4.23 per gallon. While national diesel averages crossed $5 per gallon, analysts from Citi and Saudi officials warn that prolonged disruptions through June could push crude prices as high as $180 to $200 per barrel.
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The oil prices you see do not tell market’s real story
Summary: While Brent futures hover around $110, physical oil prices have disconnected from “paper” markets, with the Oman benchmark soaring to $162 and Murban crude topping $145. This gap persists as the U.S. exhausts its “arsenal” to curb futures through emergency stockpile releases and potential sanctions relief, even as 17 million barrels of daily Middle Eastern flows remain disrupted. Consequently, the global economy faces an inflationary shock larger than futures suggest, with jet fuel exceeding $200 a barrel and U.S. diesel prices surpassing $5.
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U.S drillers add oil rigs for second week in a row as prices soar
Summary: The U.S. oil rig count rose for the second consecutive week to 414, even as the total rig count fell by one to 552 following a decline in gas and miscellaneous units. While domestic crude production dipped by 10,000 bpd to 13.668 million bpd, Permian Basin activity increased to 243 active rigs amid extreme market volatility. Despite policy interventions and potential SPR releases, Brent holds near $110 and WTI near $97 as the Strait of Hormuz remains only partially operational with long-term infrastructure damage.
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EIA refines estimates for Permian tight oil and shale gas production
Summary: The EIA updated its Permian Basin geologic estimates in March 2026, adding the Avalon, Barnett, Dean, and Woodford plays while removing the Delaware and Yeso-Glorieta formations. These adjustments resulted in a net increase of 0.2 million b/d for tight oil and 0.8 Bcf/d for shale gas production in 2025, with total December outputs reaching 6.0 million b/d and 22.2 Bcf/d respectively. While the newly added unconventional plays have doubled oil production since 2022, the Spraberry, Bone Spring, and Wolfcamp formations continue to drive the majority of the region’s record-breaking supply.
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Natural gas prices in Texas plunge deep into negative territory
Summary: West Texas Waha spot prices plummeted to a record low of -$9.75 per MMBtu, forcing Permian producers to pay for gas removal while flaring events reached five-year highs. This regional glut contrasts sharply with a global energy crisis where European futures jumped 35% to €70/MWh and Asian spot prices reached $26 per MMBtu due to the Iran war. With Iranian strikes on Qatar’s Ras Laffan sidelining 17% of its LNG exports for up to five years, Asia has begun energy rationing and a shift toward coal to manage the critical supply shortfall.
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Vision Oil and Gas expands with the acquisition of 320 wells in the Anadarko Basin
Summary: Vision Oil and Gas acquired 320 gas wells in the Anadarko Basin and 114 oil wells across five Permian counties, marking its 14th acquisition since June 2025. The company expects to stabilize production at 10,000 to 15,000 MCFE daily from the Mid-Continent wells and increase Permian output to 200 BOPD through intervention efforts. Supported by high WTI prices amid the U.S.-Iran conflict, the firm projected $14.2 million in 2026 sales and targeted a 1,000 BOPD production goal and an NYSE uplist by year-end.
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Texas leads nation in oil, gas jobs
Summary: Texas led the U.S. in energy employment with 476,777 direct jobs in 2025, accounting for nearly a quarter of the 2,043,859 industry professionals nationwide. The sector supported 36% of the state’s economy through a $385 billion Gross Regional Product and paid a record $27 billion in state taxes and royalties. Despite a slight dip in year-over-year employment, Texas hit record production levels of 2.1 billion barrels of oil and 13.5 trillion cubic feet of gas while offering average annual wages of $133,439.
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