Category: Industry Newsletter

November 24, 2025 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

• U.S. drillers pick up the pace
• Summary: The total U.S. rig count rose by five to 554 for the week ending November 21, driven by two-rig increases in both oil and gas counts to reach 419 and 127, respectively. While weekly U.S. crude production dipped slightly to 13.834 million bpd, Primary Vision’s frac spread count broke a losing streak by gaining two crews to hit 175. Despite increased drilling activity, oil prices trended downward on Friday, with the WTI benchmark trading at $57.89 and Brent falling to $62.37 per barrel.
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1. ExxonMobil to acquire 40 percent of Bahia NGL pipeline
2. Summary: Enterprise Products Partners will sell a 40% stake in its 550-mile Bahia NGL pipeline to ExxonMobil, with the deal expected to close in early 2026 pending regulatory approval. The pipeline will initially transport 600,000 barrels per day (bpd) of natural gas liquids from the Permian Basin to Mont Belvieu. The partners plan to boost capacity to 1 million bpd by Q4 2027 via a 92-mile extension to Exxon’s Cowboy plant, capitalizing on a projected 30% rise in Permian NGL production.
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1. Natural gas prices surge toward $5.00 on U.S. cold snap and LNG exports
2. Summary: Natural gas prices stabilized near $4.70/MMBtu, with futures settling at $4.58 after a 50% gain since mid-October, supported by forecasts of sustained cold weather across the U.S. Midwest and Northeast. The bullish sentiment is reinforced by U.S. working gas stocks at 2.44 Tcf (~47 bcf below the five-year average) and rising LNG exports, even as European TTF benchmarks fell to €30.31/MWh on milder weather and reduced geopolitical risk. Technically, a close above $4.81 could push prices toward $5.00, while support holds firm at $4.51–$4.65 amid record production near 104 bcf/d.
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• U.S. Gulf output set to rise as Beacon Offshore starts new wells
• Summary: Beacon Offshore Energy brought four wells online in the U.S. Gulf averaging 25,000 bpd, using technology to handle 20,000 psi pressure at depths exceeding six miles. This project revives the Shenandoah prospect to counter plateauing shale output, with Beacon planning to add roughly two wells annually to its floating production hub. Wood Mackenzie forecasts U.S. Gulf production will increase by 300,000 barrels per day this year and 250,000 in 2026, signaling a drilling renaissance in the region.
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• Refining margins soar as oil product markets tighten
• Summary: Refining margins across the U.S., Europe, and Asia hit two-year highs as fuel markets tighten due to refinery closures, maintenance, and attacks on Russian infrastructure. Supply constraints are acute, with U.S. crude throughput falling to 15.6 million bpd from 17.5 million bpd, while global refinery runs dropped 2.9 million bpd in October. Strong diesel demand and depleted stocks are offsetting bearish crude signals, incentivizing refiners to maximize production ahead of impending sanctions.
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1. Oil prices on edge as peace talks progress
2. Summary: Oil prices remain under pressure after a ~3% decline last week — with West Texas Intermediate (WTI) trading near $58.05/barrel and Brent Crude around $62.58/barrel. The slide comes as negotiators in Geneva make progress toward a potential peace framework in Eastern Europe, raising the possibility of previously sanctioned Russian crude returning to global markets. At the same time, a stronger U.S. dollar and increasing output from OPEC+ are adding further headwinds for oil prices.
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1. IEA: Oil demand to keep rising until 2050
2. Summary: The International Energy Agency (IEA) has reversed its previous prediction of peak oil demand by 2030, now projecting demand could rise to 113 million barrels per day by 2050, a 13% increase from 2024 consumption. This shift stems from using a “current policies scenario” that reflects governments prioritizing energy security over climate goals and rising power needs from tech industries like AI. Consequently, the IEA warns the world will likely fail to meet the Paris Agreement’s 1.5°C target.
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Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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

November 17, 2025 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

• U.S. oil drilling picks up: Baker Hughes
• Summary: The U.S. total rig count rose by one to 549 for the week ending November 14, as oil rigs increased by three to 417 while gas rigs fell by three to 125, according to Baker Hughes data. Meanwhile, U.S. crude oil production for the week ending November 7 set a new record high, rising to 13.862 million bpd from 13.651 million bpd, even as the frac spread count fell by two to 173. Regionally, the Permian Basin rig count rose by two to 253, and oil prices rose, with WTI set to close above $60 a barrel and Brent trading up $1.48 to $64.49.
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1. Floating oil storage surge puts market balance on edge
2. Summary: A surge of sanctioned oil from Russia, Iran, and Venezuela is idling in floating storage, threatening market balance. Kpler data shows Iranian floating storage doubled to >36 million barrels since August, while Vortexa calculates 161 million barrels of Iranian crude (storage/transit) are at sea. Oil in Asia floating storage alone jumped by 20 million barrels in just 14 days to 70 million barrels (OilX), with sanctioned oil accounting for 20-40% of the total build since August, a glut which could deepen oversupply.
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• Milder forecast and storage build pressure natural gas futures
• Summary: U.S. natural gas futures fell 1.72% on Friday to settle at $4.566, retreating as bearish news weighed on the market. The EIA reported an unexpected storage build of +45 Bcf for the week ending November 7, which was significantly higher than the +34 Bcf consensus and the +35 Bcf five-year average. This surprise build pushed total inventories to 4.5% above the five-year average, while high production at 109.9 Bcf/day (+7.1% y/y) and forecasts for mild weather through Nov 28 continue to pressure prices.
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• Chevron picks Texas for first AI data center power project
• Summary: Chevron selected West Texas for its first natural gas-fired power project to support the AI boom, planning a final investment decision in early 2026 for a 2027 operational start date. The facility is expected to ramp up to 2,500 MW (with 5,000 MW future capacity) and supports a strategy to increase free cash flow 14% annually, reaching $30B by 2030 (at $70/bbl Brent). Chevron also reduced its annual capital budget to $18-$21 billion, raised its annual production growth target to 2-3%, and plans $10-$20 billion in yearly stock buybacks.
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1. U.S. government puts 80 million acres of Gulf of Mexico up for lease
2. Summary: The Bureau of Ocean Energy Management (BOEM) announced Monday that leases for nearly 80 million acres of the Gulf of Mexico will soon hit the market. This is the first of 30 planned sales mandated by the “One Big Beautiful Bill Act” and aligns with the “Unleashing American Energy” executive order. The Gulf’s 160 million acres are estimated to hold 29.59 billion barrels of undiscovered oil and almost 55 trillion cubic feet of natural gas, and the royalty rate for the new leases will be 12.5 percent, the minimum allowed by law.
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1. Goldman revises oil demand forecast after IEA U-Turn
2. Summary: Goldman Sachs has revised its oil demand forecast higher, following the IEA’s U-turn, and now sees demand expanding to 113 million b/d by 2040 (from 103.5 million b/d in 2024), abandoning its 2034 peak projection. The IEA itself also departed from its <2030 peak forecast, now projecting 113 million b/d by 2050. Both revisions are attributed to slower net-zero policy progress, infrastructure obstacles for renewables, and slower-than-expected EV adoption, signaling a government priority shift to energy security.
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1. Adnoc buy of Covestro wins conditional EU approval
2. Summary: TAbu Dhabi National Oil Co. (Adnoc) secured conditional EU approval for its EUR 12 billion ($14 billion) takeover of Covestro AG, a key step in its push to build a global gas and chemicals leader. The approval hinges on 10-year commitments from Adnoc, including maintaining Covestro’s intellectual property in Europe, to allay concerns about state subsidies under new EU foreign subsidy rules. This deal, the largest of its kind, gives Adnoc control of the German supplier and advances its international expansion through its investment unit XRG.
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Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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

October 27, 2025 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.

• Oil and gas industry layoffs accelerate with lower prices
• Summary: Oil and gas industry layoffs accelerate due to lower prices and M&A integration, impacting firms like Chevron, Exxon, ConocoPhillips, BP, Halliburton, and SLB. These companies are cutting thousands of roles through reorganization and restructuring to improve efficiency. Chevron plans a 20% workforce reduction by end-2026, ConocoPhillips up to 25%, and BP targets 6,200 office roles by end-2025 after cutting 3,200 contractors and planning another 1,200 contractor cuts this year.
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1. Oil spikes as U.S. sanctions Russian producers
2. Summary: New U.S. sanctions froze assets of Russia’s top oil producers, Rosneft and Lukoil, and blocked U.S. entities from dealing with them, causing oil prices to leap over 5%. Intended to pressure Russia over the Ukraine war, the sanctions led major buyers like India (taking 1.6-1.8M bpd) and China (17% of imports) to prepare massive cuts in Russian crude. This disruption pushed Brent crude above $65/barrel, boosting Shell and BP shares by ~3%, while Exxon and Chevron saw smaller gains of 1.1% and 0.6% respectively.
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1. U.S. rig count rises for second straight week, Baker Hughes says
2. Summary: For the second straight week, the U.S. oil and gas rig count rose, climbing by two to 550 as of October 24, its highest level since June, though it remains down 6% year-over-year. This increase was driven entirely by oil rigs, which rose by two to a new total of 420, while gas rigs held steady at 121; the Texas rig count fell one to a low of 236. Despite a planned 3% capex cut for 2025, the EIA projects crude output will rise to 13.5 million bpd and a 56% gas price hike will boost gas output to 107.1 bcfd.
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• Oil prices head for weekly gain after U.S. sanctions spark rally
• Summary: New U.S. sanctions targeting Russia’s Rosneft and Lukoil pushed oil prices higher, putting benchmarks on track for a weekly gain after recent losses, with Brent near $65.63 and WTI near $61.43 after adding ~$4/bbl. The rally was sparked by reports that major buyers China and India are pausing new orders for Russian crude, which totals over 2 million barrels per day (bpd), as they assess sanction risks. Despite the pause, analysts believe the impact may be limited as replacing this volume is challenging, and Russia might circumvent the sanctions.
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• LNG buildout needs both Permian and Haynesville gas
• Summary: Growth in U.S. LNG exports, set to add 15 Bcf/d of capacity to the current 17.5 Bcf/d, necessitates increased gas supply from both the Permian and Haynesville basins due to Appalachian takeaway limits. The EIA forecasts Permian output reaching 28 Bcf/d and Haynesville 15.6 Bcf/d by 2026, though bottlenecks like the Katy hub (with <3 Bcf/d to Gillis) require more Haynesville output. Pipeline expansions totaling 8 Bcf/d are planned, while higher prices above Haynesville’s ~$3.50/MMBtu breakeven will spur drilling.
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1. Water shortage threatens Texas refining hub
2. Summary: Corpus Christi, a major Texas refining hub processing >900,000 bpd, faces its worst water shortage, with storage at ~11.7% capacity, potentially reaching a Level 1 emergency late next year. This threatens the industrial sector, which used >1.1 billion gallons in September (more than residents/businesses), while a $1.2B desalination plant is uncertain. The city’s new plan uses surcharges ($12/1000 gal over 12M gal/month) and potential 5% cuts for industry, as manufacturing water use grew to 23.1B gal/yr by 2023.
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1. Natural gas holds $3.30 on record LNG exports and rising winter demand
2. Summary: U.S. natural gas prices settled near $3.30/MMBtu, holding a 10% weekly gain despite a 1.2% daily drop, balancing high storage against rising heating demand and record LNG exports. Storage sits at 3,878 Bcf (~5% above the 5-year average), while LNG export flows surged to an all-time high of 17.29 Bcf/d, exceeding April’s record, and production remains high near 106.7 Bcf/d. Technically, prices hold support above $3.20-$3.27, with a potential technical rally targeting $3.71–$3.80 if bullish momentum sustains.
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Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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

October 20, 2025 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

• U.S. oil growth shifts from Shale to Gulf
• Summary: U.S. oil growth is shifting from maturing shale fields to the Gulf of Mexico, where output is projected to rise from 1.8 million barrels per day (bpd) to 2.4 million bpd by 2027. Driven by tech advances and lower breakevens (offshore as low as $20/bbl vs. $48/bbl shale average), deepwater projects like BP’s $5B Tiber-Guadalupe are gaining favor. The EIA forecasts Gulf output reaching 1.96 million bpd in 2026, offsetting slowing onshore growth and highlighting offshore’s rising importance under supportive federal policies.
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1. Texas’ orphaned well count hits highest level in nearly 20 years​
2. Summary: Texas’ orphaned oil and gas well count reached 10,029, the highest level since August 2006, according to watchdog group Commission Shift and confirmed by the Railroad Commission. Although the agency plugs about 1,300 wells annually, critics argue this pace is insufficient, leaving leaking wells unaddressed while the backlog continues to grow due to market conditions. In response, the legislature passed Senate Bill 1150 to tighten rules for inactive wells, scrutinize transfers, and require compliance plans, though calls for stricter bonding remain.
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1. Supply and demand fears drag oil prices lower
2. Summary: Oil prices fell in early Asian trade Monday, with Brent crude down 0.29% to $61.11 and WTI down 0.35% to $57.34, continuing a third consecutive weekly decline of over 2% for both. The drop is driven by supply concerns as OPEC+ unwinds cuts and the IEA forecasts a 2026 surplus, coupled with demand fears stemming from escalating U.S.-China trade tensions. Easing geopolitical risks and record-high U.S. oil production are also adding to the downward pressure on prices, according to analysts.
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• Kazakhstan monitors oil after Russian gas plant hit
• Summary: Kazakhstan’s energy ministry is monitoring its oil production after Ukrainian drones struck Russia’s Orenburg gas plant, over 1,000 km from the border, causing it to halt gas intake from Kazakhstan’s Karachaganak project. The drone attack, which Ukraine’s General Staff confirmed, may impact Karachaganak’s co-produced oil and gas output, highlighting Ukraine’s expanding long-range strike capabilities. Ukraine also claimed a strike on the 170,000 bpd Novokuibyshevsk refinery, damaging a primary crude processing unit.
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• NextDecade greenlights $6.7 billion LNG expansion
• Summary: U.S. LNG developer NextDecade announced a positive final investment decision (FID) on Train 5 at its Rio Grande LNG facility, committing $6.7 billion to the expansion project. Train 5 will add approximately 6 million tonnes per annum (MTPA) of capacity, bringing the total under construction to ~30 MTPA, supported by 4.5 MTPA in 20-year sales agreements with JERA, EQT, and ConocoPhillips. This FID follows Train 4’s approval and other U.S. LNG project sanctions this year, with Train 5’s completion and first commercial delivery expected in the first half of 2031.
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1. LNG boom impacts U.S. consumer prices
2. Summary: U.S. LNG exports hit record highs, reaching 9.4 million tons in September (up from 9.3 million in August), driven by strong global demand, particularly from Europe. This export boom is contributing to higher U.S. natural gas prices (up ~$1/MMBtu year-over-year), creating tension with the goal of cheap domestic energy. As shale basins mature, executives say prices must hit $5/MMBtu to incentivize drilling in costlier areas, with LNG exports potentially rising from 14 Bcf/d (July) to 27 Bcf/d according to analysts.
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1. U.S. rig count rebounds, showing industry resilience
2. Summary: According to Baker Hughes, the U.S. oil and gas rig count saw a minor increase for the week ending October 18, rising slightly to 547, though the total count is still down 37 rigs (6%) year-over-year. Oil rigs held steady at 418, while gas rigs rose by one to 121, their highest count since August; the Texas rig count fell by one to 237, its lowest since September 2021. Despite planned 4% capex cuts, the EIA projects 2025 crude output will rise to 13.5 million bpd and gas output will reach 107.1 bcfd amid a projected 56% gas price increase.
3. Read more

Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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

October 13, 2025 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.

• US drillers cut oil and gas rigs for first time in 6 weeks, Baker Hughes says
• Summary: For the first time in six weeks, the U.S. oil and gas rig count fell, dropping by two to 547 as of October 10, a total now 7% below the prior year. The decline was driven by oil rigs, which fell four to 418, while gas rigs rose two to 120; both the Texas and Permian rig counts also hit their lowest levels since September 2021. Despite this, the EIA projects 2025 crude output will rise to 13.5 million bpd and that gas output will increase to a new record of 107.1 billion cubic feet per day.
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1. US oil production growth is stalling
2. Summary: U.S. oil output is beginning to flatten as operators slow drilling and shift focus toward efficiency. With prices near $63 per barrel, producers are exercising capital discipline, causing rig counts to ease across the Lower 48. Analysts anticipate modest declines through Q4, which could tighten supply and support prices into 2025. This near-term slowdown reflects a cautious approach among operators seeking stability amid market uncertainty.
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1. EIA adjusts U.S. oil forecast after producers set a record in July
2. Summary: Following a record 13.6 million barrels per day (b/d) in July, the EIA increased its forecast to 13.5 million b/d for both 2025 and 2026. The report expects stable U.S. output and growing LNG exports to offset softer prices, helping maintain balance in global supply. Despite current drilling slowdowns, the outlook remains positive, with U.S. production positioned for consistent strength and long-term resilience across the energy sector.
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• Natural gas prices hinge on EIA report and 50-day average
• Summary: On October 9, U.S. natural gas futures stabilized near the 50-day moving average of $3.284, trading at $3.360 after a nearly 5% drop, as traders awaited the weekly EIA storage report. Analysts forecast a +77 Bcf injection, below the 94 Bcf 5-year average, but bearish factors include high production at 106.8 Bcf/d (+4.7% y/y) and U.S. inventories 5.0% above their five-year average. The outlook remains neutral to bearish, capped by warmer weather forecasts and flat LNG demand, with the market’s direction hinging on the EIA data.
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• Exxon restarts gasoline unit after brief Beaumont outage
• Summary: ExxonMobil restarted the 120,000-barrel-per-day gasoline-producing unit at its 612,000-bpd Beaumont refinery two days after a malfunction-induced shutdown. The brief outage at one of the largest U.S. refineries was watched closely, as an extended disruption could have impacted gasoline supplies with inventories near their five-year average. The market reaction was muted, suggesting traders expect a quick normalization, but the incident highlights the razor-thin margin for error in the U.S. refining system.
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1. Energy markets recover slightly on geopolitical calm
2. Summary: On Monday, October 13, energy markets saw a mild recovery as easing geopolitical tensions lifted sentiment, with WTI crude climbing to $59.81 and Natural Gas trading around $3.12. WTI remains in a bearish trend below its 50-day EMA of $61.55, while Brent crude struggles near $63.57, also below its 50-day EMA of $65.22. Natural Gas found support at $3.06 and is considered oversold, but a sustained rebound depends on bulls reclaiming the $3.20 level, with its 50-day EMA at $3.29 acting as overhead resistance.
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1. Chevron expands India hub to boost digital and AI capabilities
2. Summary: Chevron’s Engineering and Innovation Excellence Centre (ENGINE) in Bengaluru, its largest tech hub outside the U.S., supports global operations with a $1 billion investment over four to five years. The center has hired over 1,000 people, surpassing its initial goal of 600 professionals by the end of 2025, with over 10% being university hires. The ‘AI-first’ workforce uses technologies like AI and IoT to support global energy operations, reduce emissions, and cut down subsurface data processing from months to just weeks now.
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Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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

October 6, 2025 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.

• OPEC+ opts for modest oil output hike as supply glut fears mount
• Summary: On October 5, OPEC+ agreed to a modest oil output hike of 137,000 barrels per day (bpd) for November, the same pace of increase as in October, amid fears of a looming supply glut. The decision follows a week of heavy losses where Brent crude fell 8.1% to settle at $64.53 a barrel and West Texas Intermediate (WTI) tumbled 7.4% to settle at $60.88. This hike continues the unwinding of a second cut tranche of 1.65 million bpd, after the group has already raised its targets by more than 2.7 million bpd so far this year.
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1. U.S. oil, gas drillers pause amid oil price drop
2. Summary: For the week ending October 3, the U.S. total rig count held steady at 549, though it remains down 36 rigs from a year ago, according to the latest Baker Hughes report. The steady total was due to oil rigs falling by one to 422, a drop offset as gas and miscellaneous rigs each rose by one, while the key Permian Basin rig count also fell by two to 251. Despite this pause, U.S. weekly crude production for the week of Sept 26 rose to 13.505 million bpd, as WTI traded near $61.18, down $4.60 for the week.
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1. Execs predict where oil price will land in future
2. Summary: The Q3 Dallas Fed Energy Survey reveals a declining short-term outlook, with 136 oil executives expecting a year-end 2025 WTI price of $63.06, down from the $68.18 forecast in Q2. The executives also gave mean forecasts of $63 for six months, $64 for one year, $69 for two years, and a stable $77 for five years, reflecting a lower view than in prior surveys. Reflecting this price uncertainty, a combined 78% of exploration and production executives (36% “significantly” and 42% “slightly”) have reported delaying investment decisions.
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• APA trimmed Q2 natural gas, NGL production due to weak prices
• Summary: In Q2, APA Corp. curtailed its U.S. production by ~10 million cf/day of natural gas and 750 bbl/day of NGLs in response to weak or negative Waha hub prices. The company reported estimated average Q2 U.S. realized prices of $64.85/bbl for oil and just $1.00/Mcf for gas, well below its global average gas price of $4.00/Mcf. APA also completed the sale of its New Mexico assets in June for net proceeds of $575 million, a deal which reduced its Q2 U.S. production by ~1,800 boe/day, roughly 33% of which was oil.
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• U.S. to issue oil, gas permits during shutdown
• Summary: During a partial U.S. government shutdown affecting an estimated 750,000 workers, the administration plans to continue permitting oil and gas development while curtailing work on offshore wind. The Bureau of Land Management will continue onshore permitting, but the Bureau of Ocean Energy Management and the EPA plan to furlough 72% and 89% of their staff, respectively. Despite this, the Federal Energy Regulatory Commission will furlough 96% of its 1,500+ staffers, threatening to stall new natural gas pipeline and LNG export facility permits.
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1. European Union’s U.S. gas use set to soar, increasing price volatility
2. Summary: Due to lower storage and declining pipeline flows, Europe will need up to 160 additional LNG cargoes this winter, with total LNG imports for the year jumping from 660 to 820 tankers. LNG’s share of EU gas supply has soared to 48% from just 10% a decade ago, and analysts project the U.S. will supply around 70% of Europe’s LNG in 2026-2029, up from 58% this year. As of October 4, EU gas storage stood at a four-year low of 82.75% of capacity, with forecasts that it could drop to a seven-year low of 29% by the end of this winter.
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1. Expand Energy CEO expects U.S. LNG export capacity to double by 2030
2. Summary: The CEO of Expand Energy expects U.S. Gulf Coast LNG export capacity to double to about 28 billion cubic feet (bcf) a day by 2030, with AI and data centers adding 4-5 bcf per day of demand. Signaling high market volatility, the CEO also predicted that gas prices could average over $5.50 per million cubic feet (mcf) and also fall below $2.50 per mcf between now and 2027. He acknowledged that LNG markets will see periods of oversupply and noted that litigation and high costs are limiting factors for building the necessary new pipeline infrastructure.
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Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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

September 29, 2025 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.

• US oil and gas rig count rises to highest since June, Baker Hughes says
• Summary: For the fourth straight week, the U.S. oil and gas rig count rose, climbing by seven to 549 as of September 26, its highest since June, though it remains down 6% year-over-year. The increase was driven by oil rigs, which rose six to 424, while gas rigs fell one to 117; however, the key Permian Basin rig count actually fell by one to a new low of 253. Despite a planned 4% capex cut by E&P firms for 2025, the EIA projects crude output will rise to 13.4 million bpd and a 61% gas price hike will boost gas output to 106.6 bcfd.
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1. Wood Mackenzie: Oil and gas firms prep for downturn as capex tightens
2. Summary: Wood Mackenzie reports that oil and gas companies are preparing for a challenging 2026, with capital budgets expected to tighten as firms emphasize financial discipline over aggressive growth. Reinvestment rates are projected to average 50%, enabling about 45% of operating cash flow to be returned to shareholders, following nearly $349 billion already distributed in 2024. The analysis also notes reduced spending on low-carbon projects, with European majors at 30% of budgets and others allocating 10–20%.
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1. OPEC+ poised to fall further below its oil output target
2. Summary: OPEC+ has delivered only about 75% of its targeted oil output increases since April, resulting in a production shortfall of almost 500,000 barrels per day (bpd), or 0.5% of global demand. The deficit is due to members making compensation cuts and others hitting capacity limits, which has helped support Brent crude prices near a seven-week high of $69 per barrel. As OPEC+ plans further hikes of 547,000 bpd in September and 137,000 bpd in October, analysts predict the group may only deliver about half of these targeted increases.
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• Russian fuel cuts push oil toward biggest weekly gain in 3 months
• Summary: Oil prices were on track for their biggest weekly gain in three months (over 4%), with Brent crude rising to $69.65 a barrel and WTI crude to $65.31 on Friday, September 26. The gains were driven by Russia’s decision to introduce a partial ban on diesel exports and extend its gasoline export ban following Ukrainian attacks on its energy infrastructure. This bullish sentiment was also supported by strong U.S. economic data, which showed that U.S. GDP increased at an upwardly revised 3.8% annualized rate in the last quarter.
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• Natural gas struggles at $3.20 as U.S. storage swells toward 3.8 tcf
• Summary: U.S. natural gas futures are struggling below the $3.20/MMBtu level, pressured by a supply glut as U.S. production holds steady at a near-record 107 billion cubic feet per day (Bcf/d). A recent EIA storage injection of 75 Bcf has pushed inventories toward 3.5 trillion cubic feet (Tcf), with analysts projecting stocks could reach a high of 3.8 Tcf by the end of October. The oversupply is so severe that spot prices at Canada’s AECO hub have crashed into negative territory, plunging to between –$0.55 and –$0.80 per gigajoule.
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1. Energy secretary: Most coal plants to delay retirement for AI boom
2. Summary: Most U.S. coal-fired plants are expected to delay retirement to meet the sharp increase in electricity demand from the AI boom. Officials outlined a broader strategy that includes boosting nuclear energy, using emergency measures to keep existing plants running, and operating backup generators to increase output. To support this, federal land has been opened for new power plants and data centers, with more than 300 inquiries already submitted.
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1. Vistra to build new gas power plants in the Permian Basin
2. Summary: Vistra Corp. announced a final investment decision to build two new natural gas power units totaling 860 megawatts (MW) at its Permian Basin plant, tripling the site’s capacity to 1,185 MW. This is part of Vistra’s multi-year plan to add over 2,000 MW of new generation capacity in the Texas ERCOT market between 2024 and 2028 to meet the state’s growing power needs. Upon completing all projects, Vistra will have invested nearly $2 billion to add approximately 3,100 MW of new generation capacity in Texas since 2020.
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Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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

September 22, 2025 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

• Big oil returns to exploration with a bang
• Summary: Major oil firms like BP and Shell are shifting back to exploration in key areas like Guyana and Brazil, driven by energy security concerns and poor returns from renewable investments. A prime example is BP’s biggest discovery in 25 years in Brazil, a 500-meter hydrocarbon column with an estimated 2.0-2.5 billion barrels of recoverable oil equivalent. This strategic reset is backed by significant financial shifts, with BP increasing its annual upstream investment to $10 billion while cutting over $5 billion from its clean energy spending.
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1. US rig count rises for third straight week, Baker Hughes says
2. Summary: For the third straight week, the U.S. oil and gas rig count rose, climbing by three to 542 as of Sept 19, its highest level since July, though it remains down 8% year-over-year. This increase was driven entirely by oil rigs, which rose by two to a new total of 418, their highest since July, while the number of natural gas rigs held steady at 118 for the week. Despite a planned 4% capex cut in 2025, the EIA projects crude output will rise to 13.4 million bpd and a 61% gas price hike will boost gas output to 106.6 bcfd.
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1. Could US LNG become a victim of its own success?
2. Summary: U.S. LNG investment is booming despite the risk of an oversupply, driven by strong global demand as Europe plans to ban Russian imports from 2028 and Asian demand grows. Despite a potential near-term margin squeeze, the long-term (15-20 year) Free-on-Board contracts for U.S. LNG offer offtakers unrivaled trading optionality and arbitrage opportunities. This boom is supported by a deep pool of capital from infrastructure funds, strategic investors, and debt markets, as well as supportive U.S. government policies.
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• Natural gas price hits $2.88 as storage surplus pressures market
• Summary: U.S. natural gas futures extended losses to a three-week low, with the October contract settling down 1.74% on September 19 at $2.888 per MMBtu amid a growing storage surplus. A recent bearish EIA report revealed a weekly storage injection of 90 billion cubic feet (Bcf), higher than the expected 81 Bcf, pushing total U.S. inventories to 6.3% above their five-year average. The oversupply is compounded by U.S. dry gas production of 107.6 Bcf/day (+6.1% y/y) outpacing demand of 73.1 Bcf/day (-4.6% y/y), weighing heavily on the market.
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• Oversupply and demand fears push WTI to $62.68, Brent to $66.68
• Summary: On Friday, oil prices fell, with West Texas Intermediate crude settling down 1.40% at $62.68 a barrel and Brent crude dropping 1.13% to $66.68, capping a volatile week. The decline was driven by oversupply concerns as OPEC+ loosens its output cuts and weak demand signals, including a surprising 4 million barrel jump in U.S. distillate stockpiles. This bearish sentiment overshadowed the Federal Reserve’s first quarter-point rate cut of 2025, which failed to boost any demand amid signs of slowing U.S. economic activity.
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1. Natural gas: America’s secret weapon in the AI power race
2. Summary: Natural gas producers anticipate that rising electricity demand and consumer energy bills, which are up over 35%, will accelerate the approval of new U.S. gas infrastructure. This comes as U.S. power demand is projected to rise by 2.4% annually through 2030, with AI-related data centers accounting for about two-thirds of this incremental growth. Goldman Sachs forecasts that over $700 billion in grid investment is needed through 2030 and sees natural gas as best positioned to meet this demand due to its flexibility and abundance.
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1. Scientists find the invisible culprit behind dry oil wells
2. Summary: To understand why oil wells often run dry prematurely, Penn State researchers have used the Bridges-2 supercomputer to develop a new “4D” seismic imaging method for oil exploration. The method adds a time dimension and analyzes signal amplitude, revealing hidden rock formations that block access to untapped oil reserves, which standard 3D scans can miss. This technique, proven in a 9-square-mile area, can show that drilling deeper may unlock more oil, and the team is now expanding its work to analyze full-scale oil fields.
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Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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

September 15, 2025 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.

• ConocoPhillips to procure LNG from NextDecade’s Rio Grande project
• Summary: ConocoPhillips has signed a 20-year sales and purchase agreement to procure one million tonnes per annum (mtpa) of liquefied natural gas (LNG) from NextDecide’s Rio Grande LNG project in Texas. The LNG will be offtaken on a free-on-board basis with pricing indexed to the Henry Hub benchmark, a deal that advances ConocoPhillips’ global strategy and 10 to 15 mtpa offtake ambition. This deal makes ConocoPhillips a key foundation customer for Train 5, which is now fully commercialized, with a final investment decision expected in Q4 2025.
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1. California Resources to buy Berry Corp in $717 million deal
2. Summary: California Resources will buy Berry Corp in an all-stock deal valued at about $717 million, including debt, a move which sent Berry’s shares up 14.8% to $3.80 in early trading. Berry shareholders will receive 0.0718 California Resources shares for each share they own, with California Resources shareholders set to own about 94% of the combined company. On a pro forma basis, the new entity would have produced about 161,000 barrels of oil equivalent per day in Q2 and held about 652 million boe of proved reserves as of year-end 2024.
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1. U.S. rig count holds steady as Texas, Permian Basin hit 2021 lows
2. Summary: According to the Baker Hughes report for the week ending August 15, the U.S. rig count held steady at 539, though this total remains down 8% from a year ago. The steady total was due to oil rigs rising by one to 412, offsetting a one-rig drop in gas rigs to 122, while both Texas and the Permian rig counts fell to their lowest levels since September 2021. Meanwhile, Enverus data showed Permian drilling permits at 606, down from 699 a year ago, while active frac crews in the basin fell to 82 from 100 a year earlier.
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• Renewed concerns over Russian crude supplies
• Summary: The oil market weighed oversupply concerns against geopolitical risks on Friday, with October WTI settling up 32 cents at $62.69 and November Brent up 62 cents at $66.99. The market rallied from a low of $61.69 after a drone attack on Russia’s Primorsk oil port suspended loading, and the Kremlin announced a pause in peace negotiations with Ukraine. In the U.S., the total rig count rose for a second straight week to 539, and refinery offline capacity is expected to increase to 585,000 bpd for the week ending September 12.
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• Another week of indecision for oil prices
• Summary: Crude oil prices were indecisive this week, trading in a tight range with WTI between $61.70-$64.10 and Brent between $65.50-$68.15, before settling higher for the week. Bearish fundamentals, including an OPEC+ output hike of 137,000 b/d and a U.S. inventory build, were pitted against bullish geopolitical events like an Israeli attack in Qatar and a drone strike on a Russian oil port. U.S. economic data added to the market’s uncertainty, with August’s CPI rising to 2.9% while jobless claims hit their highest level since October of 2021.
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1. Natural gas struggles below $3.00 as storage surplus weighs on prices
2. Summary: U.S. natural gas futures are under pressure, with the October contract settling at $2.941/MMBtu and struggling below the $3.00 psychological barrier due to a growing storage surplus. A recent EIA storage injection of 71 billion cubic feet (Bcf), well above the 56 Bcf five-year average, has lifted total inventories to 3,343 Bcf, now 6% above the seasonal norm. With U.S. production at 112.3 Bcf/d outpacing demand of 99.5 Bcf/d, the market faces the risk of ending the injection season with its inventories near 4.0 trillion cubic feet.
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1. Big oil cuts spending as $60 oil bites
2. Summary: With Brent crude in the $60-$70 range, the U.S. shale patch has seen a 1.7% job loss, its fastest pace since 2022, while ConocoPhillips plans to cut up to 25% of its workforce. In response, 22 U.S. oil companies have cut a combined $2 billion in spending, and Wood Mackenzie forecasts a 4.3% decline in global capex this year, the first such drop since 2020. U.S. shale production has reversed, with late August output at 13.4 million bpd (down from 13.6 million in Dec), as the industry enters a “wait-and-see” mode.
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Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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

September 8, 2025 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.

• Permex signs $3 million option agreement to acquire producing wells
• Summary: Permex Petroleum has entered into a six-month option agreement to purchase oil and gas assets for a total of $3 million, including a minimum of $1.75 million in cash. The assets include over 50 producing wells and 20,000 net mineral acres and are considered “turn-key prepared” for in-field Bitcoin mining, producing approximately 4 megawatts of power. This move aligns with Permex’s recent non-binding letter of intent with 360 Energy to deploy off-grid, gas-powered Bitcoin mining operations to monetize otherwise stranded gas.
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1. Court rules produced water belongs to drillers, not surface owners
2. Summary: In Cactus Water Services v. COG Operating, the Texas Supreme Court ruled that produced water, a byproduct of oil and gas extraction, is owned by the mineral lessee unless the lease explicitly reserves it for the surface owner. The case involved more than 52 million barrels of produced water from 72 wells across 37,000 acres in Reeves County. The decision brings clarity to ownership rules and may encourage investment in treatment and reuse infrastructure.
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• OPEC+ set to raise oil output further from October, Iraq says
• Summary: OPEC+ is set to agree to another oil output hike from October, though likely at a slower pace than in recent months due to weakening global demand, according to sources. An Iraqi official suggested a hike of 130,000-140,000 barrels per day (bpd), a slowdown from September’s 547,000 bpd increase, as Brent crude closed Friday at $65.50 a barrel. This move would begin to unwind a second cut tranche of 1.65 million bpd over a year ahead of schedule, after the group already raised its quotas by about 2.5 million bpd since April.
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• Expectations of higher supply and an increase in U.S. crude
• Summary: On Friday, the crude market fell for a third straight session on supply concerns, with October WTI settling down $1.61 at $61.87 and November Brent down $1.49 at $65.50. The drop was driven by reports that Saudi Arabia wants OPEC+ to consider unwinding a 1.66 million barrels per day (bpd) tranche of halted supplies sooner than scheduled to reclaim market share. In the U.S., the total rig count rose for the first time in seven weeks to 537, while weak jobs data (only 22,000 new payrolls) added to concerns about demand.
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1. U.S. gas storage surplus creates shifts for energy sectors
2. Summary: A new EIA report reveals a structural U.S. natural gas oversupply, with storage as of August 29 at 3,272 billion cubic feet (Bcf), 173 Bcf above the five-year average. With inventories projected to hit 3,926 Bcf by Oct 31 and upstream investment down 34% since 2015, the report suggests an underweight for the oil and gas sector due to margin compression. Conversely, the report suggests an overweight for the logistics sector, which benefits from stable fuel costs (25-35% of expenses) as oversupply has cut gas price volatility from 102% to 69%.
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1. Natural gas prices are undercut by cooler weather forecasts
2. Summary: October Nymex natural gas prices closed down 0.85% on Friday, September 5, undercut by forecasts for cooler U.S. weather that are expected to reduce air-conditioning demand. The bearish sentiment was supported by U.S. electricity output falling 7.82% year-over-year for the week ended August 30 and a weekly EIA report showing a 55 bcf inventory build. While the 55 bcf build was above the 5-year average of +36 bcf, total U.S. gas inventories as of August 29 stood at 5.6% above their 5-year seasonal average, signaling adequate supply.
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1. U.S. rig count rises for the first time in seven weeks, says Baker Hughes
2. Summary: For the first time in seven weeks, the U.S. oil and gas rig count rose, climbing by one to 537 as of September 5, though the total count is still down 7.7% from the previous year. The slight overall increase was driven by oil rigs, which rose by two to a new total of 414, a move that was partially offset by a one-rig decrease in the gas rig count to a total of 118. Despite recent trends, the EIA projects U.S. crude output will rise to 13.4 million bpd in 2025 and a 65% gas price hike will boost gas output to 106.4 bcfd.
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Contact Valor Today

Contact us today if you need help outsourcing your oil and gas operations.

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