Industry Newsletter Archives

Valor | Energy Connection – August 17, 2026

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

August 17, 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.

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

Valor | Energy Connection – 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 – June 29, 2026

Posted on June 29, 2026June 29, 2026 by Valor

June 29, 2026 Edition

Magnolia eyes $4 billion WildFire acquisition to expand Eagle Ford position
Summary: Magnolia Oil & Gas Corp. has emerged as the front-runner to acquire closely held WildFire Energy for more than $4 billion to boost its presence in the Eagle Ford shale basin. Following this development, Magnolia shares fell 1.5% to $26.78 in New York trading Friday, giving the company an overall market value of around $5.1 billion. WildFire operates more than 2,000 wells with an equivalent output of over 50,000 net barrels of oil per day, and its management sold a previous firm for $1.9 billion.
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Hormuz oil exodus sets stage for chaotic rebalancing act: Bousso
Summary: Brent crude fell to around $73 a barrel after a conflict of over 100 days, while Gulf shut-in production declined to 9.6 million bpd by mid-June from 11.7 million bpd. Iran’s output could reach 3.3 million bpd by year-end, and oil flows briefly exceeded 20 million bpd despite incoming traffic showing only one tanker entering for every four that left. Additionally, global supply is forecast to fall by 3.9 million bpd in 2026 before rebounding by about 8 million bpd to 110.3 million bpd in 2027.
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U.S. pipeline giant eyes $5.5 billion deal to expand LNG reach
Summary: Natural gas giant Williams is in late-stage talks to acquire pipeline operator Momentum Midstream from EnCap Flatrock Midstream for an estimated $5.5 billion. Momentum Midstream operates about 4,000 miles of pipelines with 6 Bcf/d of system capacity, which includes the 250-mile NG3 pipeline that has a total capacity of 2.3 Bcf/d. The acquisition would expand Williams’ reach, which currently handles about one-third of U.S. natural gas and achieved a 25% year-over-year net income increase.
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U.S. natural gas drops on cooler outlooks as July contract expires
Summary: U.S. natural gas futures for July delivery settled 11.2 cents, or 3.3% lower, at $3.231/mmbtu on Nymex as the contract expired amid cooler weather forecasts. The more-actively-traded August delivery contract also ended lower, settling 1.6 cents, or 0.5% down, at $3.279/mmbtu at the Henry Hub. Daily BNEF data showed Lower-48 dry gas production on Friday at 112.6 bcf/day, an increase of 4.9% year-over-year, while total gas demand dropped 6.9% year-over-year to approximately 71.3 bcf/day.
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U.S. energy firms add most rigs in a week since June 2022, Baker Hughes says
Summary: The total U.S. oil and gas rig count rose by 10 to 573 in the week to June 26, up 26 rigs or 5% above last year’s level. Baker Hughes reported that oil rigs climbed by seven to 440, gas rigs increased by three to 125, and miscellaneous rigs held at eight. After past rig count declines of 20% in 2023, 5% in 2024, and 7% in 2025, the U.S. Energy Information Administration projected that the total domestic crude output will expand to 13.7 million bpd while gas production jumps to 111.0 bcfd in 2026.
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ExxonMobil announces planned effective date for move to Texas
Summary: ExxonMobil announced that its planned move from New Jersey to Texas is expected to take effect on July 1, 2026. The company’s new publicly traded parent entity, ExxonMobil Holdings Corporation, will be incorporated in Texas, marking another major corporate relocation tied to the state’s growing role as a headquarters hub for the energy sector.
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Oil prices climb as U.S.-Iran flare-up shakes market complacency
Summary: Oil prices moved higher early Monday as renewed geopolitical uncertainty brought global supply risks back into focus, with Brent and WTI both posting gains. The shift reflected concern that disruptions to shipping routes, infrastructure, or export flows could tighten an already sensitive market. Analysts noted that low inventories and limited spare capacity may leave crude prices exposed to volatility as markets assess whether recent tensions will affect broader supply and demand expectations.
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Valor | Energy Connection – June 22, 2026

Posted on June 22, 2026June 22, 2026 by Valor

June 22, 2026 Edition

U.S. natural gas prices at Waha turn positive for first time since February as pipeline constraints ease
Summary: U.S. spot natural gas prices at the Waha Hub turned positive at 42 cents per mmBtu after remaining below zero for a record 90 days in a row. Previously, prices averaged negative $2.19 per mmBtu so far in 2026, dropping below zero a record 99 times this year compared to a positive $1.15 average in 2025. Driven by rising summer gas demand, the Permian region’s gas output is projected to reach 30.1 billion cubic feet per day by November, supplying about a third of all fuel consumed in the U.S.
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Texas upstream employment rises by 4,100 jobs in May, TIPRO says
Summary: Texas’ upstream sector added 4,100 jobs in May, raising total employment to 197,500 positions as oilfield services gained 4,400 jobs and extraction dropped by 300. Industry hiring activity included 10,409 unique job postings, an increase of 6% from April, with Houston leading cities at 2,698 listings. Additionally, oil producers paid $677 million in production taxes, which is 64% above May 2025 levels, while natural gas producers paid $217 million as U.S. net exports hit a record 5.8 MMbpd.
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Hormuz reopens, but obstacles remain as oil markets seek path to normalcy
Summary: The Strait of Hormuz handles roughly one-fifth of global oil trade and has reopened following a U.S.-Iran agreement, causing Brent crude to drop nearly 8% for the week to trade near $80/bbl. Kuwait expects its production to exceed 2 MMbpd within days, ADNOC instructed customers to resume loadings, and Iran began exporting millions of barrels of stranded crude oil. However, shipping traffic slowed Friday, and supertankers holding nearly 80 MMbbl of crude inside the Gulf await clearer conditions.
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Banks slash oil price forecasts after U.S.-Iran breakthrough
Summary: Following a U.S.-Iran peace deal to reopen Hormuz within 30 days, Morgan Stanley cut its third-quarter Brent price forecast to $90 per barrel from $100. Goldman Sachs lowered its fourth-quarter price forecast to $80 per barrel from $90 and its 2027 average to $75, predicting full tanker recovery by the end of July. Citi reduced its forecasts to $75 for the third quarter, $70 for the fourth quarter, and $65 for 2027, while Brent crude dropped to trade at $82.51 per barrel and WTI was at $80.23.
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U.S. energy firms add rigs for eighth time in nine weeks, says Baker Hughes
Summary: U.S. energy firms increased the total oil and gas rig count by one to 563 in the week ending June 18, representing a 2% rise of nine rigs compared to the same period last year. Baker Hughes reported that gas rigs grew by one to 122, while oil rigs remained steady at 433 and miscellaneous rigs held at eight. Following historical rig count drops of 20% in 2023, 5% in 2024, and 7% in 2025, the EIA projects 2026 U.S. crude output will rise to 13.7 million bpd and gas output will reach 111.0 bcfd.
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IEA sees massive oil surplus in 2027 as Middle East supply returns
Summary: The International Energy Agency reports the global oil market could see a surplus of over 5 million barrels per day in 2027 if Middle East production recovers. This forecast projects global supply growth of 8 million barrels per day, which far outpaces the expected demand growth of 2 million barrels per day. The conflict previously blocked more than 14 million barrels per day, causing oil inventories to drop by 3.8 million barrels per day since late February and by 4.6 million barrels per day in May.
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Technological advances keep driving oilfield production up
Summary: Driven by technological advances, Permian Basin oil production increased by 430 percent from 2015 to 2025, though current shale recovery is just 5-10 percent for oil and 10-20 percent for gas. While total U.S. crude output reached 13.6 million barrels per day in 2025, the U.S. EIA projects production easing to 13.5 million in 2026 and 13.3 million in 2027. Operators are deploying horizontal laterals extending three to four miles to raise unconventional oil recovery factors from 10 to 30 percent.
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Valor | Energy Connection – June 15, 2026

Posted on June 15, 2026June 22, 2026 by Valor

June 15, 2026 Edition

Oil prices plunge as U.S. and Iran reach deal to reopen Strait of Hormuz
Summary: Oil prices dropped in early Monday Asian trading after the U.S. and Iran reached an agreement to reopen the Strait of Hormuz after more than 100 days of closure. Brent crude dropped 3.95% to $83.88 per barrel, and WTI fell 4.62% to $80.96 per barrel following announcement of the deal. A finalized memorandum of understanding includes a 60-day ceasefire period, the release of $24 billion in frozen funds, suspended oil sanctions, and a halt to producing nuclear weapons.
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U.S. natural gas prices hit three-week low on U.S.–Iran peace deal
Summary: U.S. natural gas prices fell 2% to around $3.0 per MMBtu, hitting a nearly three-week low after a U.S.–Iran peace deal was confirmed. The agreement will lift the naval blockade of Iranian ports and reopen the Strait of Hormuz, a chokepoint handling one-fifth of global oil and LNG supplies, following its formal signing on June 19. Additional pressure stemmed from ample domestic supplies, with inventories rising to 2.686 trillion cubic feet, roughly 6% above the five-year average.
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Once an Arab oil embargo victim, US becomes world’s top oil exporter
Summary: The United States has become the world’s leading oil exporter for the third consecutive month, with crude and fuel shipments climbing to 10.5 million bpd in May. This ascendancy surpasses Russian exports of 7 million bpd and Saudi Arabian exports of 5.9 million bpd, a reversal from 2025 when Saudi Arabia led with 8.1 million bpd. The shift comes as U.S. output reaches 22 million bpd, allowing the country to supply 47% of its oil exports to Europe and 46% of its May exports to Asia this year.
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Pace of U.S. oil drilling inches up
Summary: The total active U.S. drilling rig count rose to 563, with oil rigs increasing by two to 433 while gas rigs fell by three to 121, according to Baker Hughes. Weekly U.S. crude oil production averaged 13.799 million bpd for the week ending June 5, representing an increase of 371,000 bpd from a year ago as the completions crew count fell by two to 190. Concurrently, oil prices declined on Friday, with Brent crude falling 3.55% to $87.17 per barrel and WTI dropping 3.87% to trade at $84.32.
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Permian partnership reports $2.3 billion in regional investment and expanding economic impact
Summary: The Permian Strategic Partnership released reports highlighting its investment of $215 million since 2019, which helped leverage over $2.3 billion in regional impact across 22 counties. The region currently supports more than 940,000 U.S. jobs, accounts for over 44% of all active domestic drilling rigs, and contributed $114 billion to the U.S. balance of trade in 2025. By 2027, the basin is projected to supply nearly 50% of U.S. oil production, with jobs expanding to 1.16 million by 2050.
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Shell pauses $3 billion share buyback ahead of ARC acquisition vote
Summary: Shell pauses its $3 billion share buyback until July 14 due to securities laws tied to its pending $16.4 billion acquisition of ARC Resources. In April, Shell announced buying ARC in a deal paid 25% in cash and 75% in shares at a 20% premium, which is its biggest since 2016. The transaction requires a minimum of 66% support at ARC’s shareholder vote on July 14, and the company’s output consists of about 60% natural gas and 40% oil liquids near Shell’s Canadian fields feeding the LNG Canada plant.
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BP starts process to sell stakes in two Gulf of Mexico projects
Summary: British oil major BP has begun a process to sell minority stakes in its multi-billion dollar Kaskida and Tiber projects in the Gulf of Mexico. This action represents one of the first major strategic moves by new CEO Meg O’Neill, who assumed her role in April after the company chose to refocus its investments back onto oil and gas. Both projects are expected to have production capacities of 80,000 barrels of oil per day, with Kaskida starting in 2029 and Tiber commencing production in 2030.
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