Category: Industry Newsletter

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.

January 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.

• Exxon sees 20% gas demand growth by 2050, U.S. nearing records in 2025
• Summary: Exxon projects global natural gas demand will rise over 20% by 2050 from 2024 levels, while oil demand will plateau after 2030 but stay above 100 million barrels per day. By 2050, oil and gas are expected to hold around 55% of the global energy mix, with energy-related CO₂ emissions projected at 27 billion metric tons, a ~25% decline from current levels. In the near term, Exxon sees U.S. gas demand hitting new records in 2025, a forecast underpinning its plan for an 18% production increase over the next five years.
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1. Chevron CEO disputes forecasts of an oil demand collapse
2. Summary: In a New York Times interview, Chevron CEO Mike Wirth rejected IEA predictions of an oil demand collapse, arguing that even after peaking, demand will likely remain on a high plateau. He stated that because oil is a “depletion business,” continued investment in new supply is necessary even when demand is flat, just to replace the barrels that have been produced. Wirth warned that stopping production prematurely risks energy shortages, a view backed by Chevron’s recent acquisition of Hess Corp. and its key stake in Guyana’s Stabroek block.
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1. US rig count falls for second straight week, Baker Hughes says
2. Summary: For the second straight week, the U.S. oil and gas rig count fell, dropping by two to 536 as of August 29, its lowest level since August 2021 and down 8.1% from the previous year. The overall decline was driven by natural gas rigs, which fell by three to 119, a move that more than offset a one-rig increase in the total oil rig count to a new total of 412. Despite this drilling slowdown, 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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• U.S. shale bets on efficiency gains amid budget cuts
• Summary: Amid WTI crude prices in the low to mid-$60s (about 13% below year-ago levels), U.S. shale producers are cutting capital expenditure and reducing their drilling activity. Companies like Devon, Occidental, and Diamondback are each trimming their 2025 capital budgets by $100 million, relying on efficiency gains from AI and faster drilling to maintain output. While some CEOs believe production has peaked, the EIA forecasts efficiency will push U.S. crude output to a record 13.6 million bpd in December 2025 before it then declines.
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• Oil prices dip but stay on track to extend last week’s gains
• Summary: Oil prices were set for a weekly gain but dipped slightly Friday, with Brent crude trading at $68.17 a barrel and West Texas Intermediate at $64.20. The weekly rise was driven by supply uncertainty after new 25% U.S. tariffs on Indian exports kicked in, even as India plans to boost its Russian crude imports by 10-20% in September. However, prices were capped by the end of the U.S. driving season, with one analyst forecasting that Brent could fall to $63 a barrel in Q4 2025 as OPEC+ continues to increase its supply.
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1. Upstream oil sector cuts nearly 3,000 jobs this summer
2. Summary: The Texas upstream oil and gas sector shed nearly 3,000 jobs over the summer, a 1.5% workforce reduction tied to WTI crude prices hovering near $63 per barrel, abundant global supplies, and a decline in active rigs from 280 in January to 253 by July’s end. Industry consolidation, including Chevron’s integration of Hess and related layoffs, also contributed. Analysts note these developments reflect near-term market pressures but emphasize that long-term fundamentals remain anchored to global demand and production needs.
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1. California regulators halt plan to penalize oil companies for high profits
2. Summary: The California Energy Commission postponed until 2030 a plan to penalize oil companies for high profits, following the announced closure of two refineries that account for 18% of the state’s capacity. The penalty, authorized by a 2023 law, had not been implemented, and the delay comes as California’s gas prices stood at $4.59 a gallon, far above the $3.20 national average. The move was praised by the Western States Petroleum Association as a “needed step” but was criticized by the group Consumer Watchdog as a “giveaway to the industry.”
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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.

August 26, 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.

• Interior Department updates commingling policy to strengthen energy production and safety
• Summary: In alignment with the “One Big Beautiful Bill Act,” the Department of the Interior has updated its oil and gas commingling rules to clarify standards and enhance operational safety and efficiency. The Bureau of Safety and Environmental Enforcement has finalized offshore guidelines to ensure well integrity and optimal resource recovery. Simultaneously, the Bureau of Land Management issued interim guidance expanding commingling authority on public and tribal lands until updated regulations are in place.
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1. U.S. oil drillers continue to play it safe
2. Summary: The U.S. total rig count fell by one to 538 for the week ending August 22, down 47 rigs from a year ago and hovering near a four-year low, according to the Baker Hughes report. The overall drop was due to oil rigs falling by one to 411 (a 72-rig decline year-over-year), while gas rigs held steady at 122, and the key Permian Basin rig count also held at 255. Despite this drilling slowdown, weekly U.S. crude production for the week ending August 15 rose slightly to 13.382 million bpd, with WTI trading near $63.60 a barrel.
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1. Equinor uncovers new oil and gas in North Sea
2. Summary: On August 25, Norwegian energy major Equinor announced a new oil and gas discovery at a prospect named F-South, located 9 kilometers (5.6 miles) north of the Troll field in the North Sea. Total resources in the new discovery are estimated at between 0.1 and 1.1 million standard cubic meters, which is equivalent to between 0.6 and 6.9 million barrels of recoverable oil equivalent. The “near-field” find is significant as it can be tied to existing infrastructure, which lowers development costs and helps maintain Norway’s hydrocarbon output.
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• Why the IEA reinstated its “Business as Usual” scenario
• Summary: The International Energy Agency (IEA) will reintroduce its “Current Policies Scenario” in its upcoming World Energy Outlook, a modeling approach last used in 2019. This model, which does not assume the renewal of expiring policies, was replaced in 2019 by a “Stated Policies Scenario” that resulted in faster peak fossil fuel demand forecasts. The reversal follows industry arguments that removing the baseline discouraged oil and gas investment and government requests for a clearer reference for long-term planning.
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• Oil and gas sector key to renewable energy growth – IEA
• Summary: A new IEA report warns that renewable energy cannot scale at the needed rate without greater investment and expertise from the oil and gas sector. The report highlights a major investment gap, stating that low-carbon fuels need to be 15% of fuel supply investment within a decade, but current spending by oil and gas firms is only about 1%. The IEA also identifies reducing methane leaks as a key action, as the industry accounts for 15% of energy emissions, but notes investment is still needed to prevent an 8% annual output decline.
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1. UBS sees Brent oil prices staying in the high $60s in tight market
2. Summary: Investment bank UBS forecasts Brent crude will stay at the upper end of the $60-$70 per barrel range in the near term due to a tight market during the peak summer demand season. However, UBS expects prices to moderately drop toward the lower end of the $60-$70 range later in the year as supply from South America continues to rise and demand weakens in the fourth quarter. As of Friday, Brent was trading above $67 and WTI above $63, but a narrowing backwardation signals traders believe supply will soon become plentiful after summer.
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1. EIA expects record U.S. natural gas consumption in 2025
2. Summary: The U.S. Energy Information Administration (EIA) forecasts that U.S. natural gas consumption will increase by 1% to a record 91.4 billion cubic feet per day (Bcf/d) in 2025. This record is driven by high consumption early in the year, with January at 126.8 Bcf/d (up 5% from Jan 2024) and February at 115.9 Bcf/d (up 5% from the previous February record). The 2025 growth comes from residential and commercial sectors, offsetting a decline in electric power use, while the EIA projects a slight decrease in consumption for 2026.
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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.

August 18, 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.

• Trump moves to open 82% of Alaska’s petroleum reserve for drilling
• Summary: The Trump administration plans to open 82% of the 23-million-acre National Petroleum Reserve–Alaska for oil and gas development, the Interior Department confirmed. The plan would make about 18.5 million acres available for leasing to boost Alaska’s oil output, a key source of state revenue and annual dividends for residents. Managed by the Bureau of Land Management, the reserve is the largest federally controlled land block designated for energy development.
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1. Oil markets seen bearish after Trump-Putin Alaska meeting
2. Summary: Following a meeting between the U.S. and Russian presidents in Alaska, analysts observed a bearish tone in oil markets, with Brent settling at $65.85 and WTI at $62.80 on Friday. The market reaction was influenced by reduced expectations for immediate sanctions on Russian crude, which eased concerns about supply disruptions. Traders now turn their attention to a follow-up meeting in Washington with Ukrainian and European leaders, where additional developments could shape near-term energy market sentiment.
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1. Global oil markets will face record surplus in 2026, says IEA
2. Summary: The International Energy Agency (IEA) forecasts a record global oil surplus in 2026, with inventories projected to accumulate at a rate of 2.96 million barrels per day (bpd). This surplus is driven by slowing demand, with 2025 consumption growth at its weakest since 2019 (680,000 bpd), while non-OPEC+ supplies are set to grow by 1 million bpd in 2026. The forecast comes as crude prices have already declined roughly 12% this year to near $66 a barrel, with global oil inventories having already reached a 46-month high in June.
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• EIA: Brent crude oil prices expected to decline significantly in coming months
• Summary: The U.S. Energy Information Administration (EIA) expects Brent crude prices to fall significantly, from an average of $71 per barrel in July to $58 in Q4 2025 and about $50 in early 2026. This drop is driven by expected global oil inventory builds averaging over 2 million barrels per day (b/d) in late 2025 and early 2026, following recent OPEC+ production hikes. The EIA also projects U.S. crude output will hit a record 13.6 million b/d in December 2025 before declining to 13.1 million b/d by Q4 2026 due to the lower prices.
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• Where are natural gas prices heading?
• Summary: U.S. natural gas futures saw a sharp drop in late summer, declining over 32% from a high of nearly $4.20 per MMBtu on June 20 to a recent low of $2.764 on August 13. As of August 8, U.S. gas inventories stood at 3.186 trillion cubic feet, which is 2.4% below the previous year’s level but 6.6% above the five-year average for this time of year. Despite the recent drop, lower year-over-year inventories, rising U.S. LNG export demand, and approaching peak-season seasonality suggest limited downside risk for prices ahead.
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1. U.S. LNG: Record exports, rising prices, and a looming problem
2. Summary: U.S. LNG exports hit a record 69 million tons in the first eight months of 2025, a 22% increase from 2024, with exports to Europe alone soaring by 61% year-over-year. Despite record U.S. gas production of 108.1 Bcf/d, industry leaders warn that future export growth is threatened by insufficient pipeline capacity to transport gas to liquefaction facilities. A new U.S. mandate requiring 1% of exports on U.S.-built vessels from 2029 is an added challenge, as these ships are estimated to cost 2-4 times more than foreign-built ones.
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1. U.S. oil and gas rig count holds steady this week, Baker Hughes says
2. Summary: For the week ending August 15, the U.S. oil and gas rig count held steady at 539, though the Permian Basin and Texas each saw a one-rig drop to new lows since September 2021. The steady national total was due to a one-rig increase in the oil count to 412, which was offset by a one-rig decrease in the natural gas rig count to a new total of 122. Despite a planned 4% capex cut for 2025, the EIA projects crude output will rise to 13.4 million bpd 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.

August 11, 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 steadies on reports of US-Russia deal, ends week about 5% lower
• Summary: On August 8, oil prices ended the week with their steepest losses since late June, as Brent crude fell 4.4% to settle at $66.59 a barrel and WTI crude dropped 5.1% to $63.88. The weekly drop was driven by concerns over the economic impact of new U.S. tariffs which took effect, while Friday’s prices held steady on reports of a potential U.S.-Russia summit. Adding to supply pressure, OPEC+ agreed to a 547,000 barrels per day production hike for September, and the U.S. oil rig count increased by one to a total of 411.
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1. U.S. rig count falls for third straight week, Baker Hughes says
2. Summary: For the third straight week, the U.S. oil and gas rig count fell, dropping by one to 539 as of August 8, with the key Permian Basin rig count declining by three to a low of 256. The overall drop was due to gas and miscellaneous rigs each falling by one, which offset a one-rig increase in the oil rig count to 411, while the Texas rig count fell by two to 243. Despite a planned 4% capex cut in 2025, the EIA projects crude output will rise to 13.4 million bpd and a 68% gas price hike will boost gas output to 105.9 bcfd.
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1. Oil prices slump as China, U.S. trade tensions continue
2. Summary: Oil prices fell Friday due to escalating U.S.-China trade tensions, with crude futures down 0.38% to $63.30 and Brent crude futures down 0.37% to $68.08 a barrel. The drop was fueled by a U.S. threat of an additional $100 billion in tariffs on China, but losses were limited by a surprise 4.617 million barrel draw in U.S. crude inventories. This occurs as OPEC and its allies continue to curb their production by 1.8 million barrels per day to end a global supply glut, with a pact set to expire at the end of 2018.
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• U.S. majors pump profits while BP and Shell stall
• Summary: In Q2, U.S. oil majors Exxon and Chevron reported record production, while European rivals BP and Shell saw their output decline amid a strategic refocus on their core business. Exxon’s output hit 4.6 million boe/d and Chevron’s reached 3.4 million bpd, while BP’s production fell 3.3% to 2.3 million bpd and Shell’s dropped 4.2% to a low of 2.65 million bpd. All four reported lower profits due to weaker prices, but the European majors’ lagging output is attributed to recent asset sales and lower investment in oil and gas.
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• Targa beats profit estimates, expands buyback by $1 billion
• Summary: Targa Resources beat Q2 profit estimates due to record natural gas and NGL volumes, causing its shares to rise 2.6% in premarket trading. The company’s adjusted core profit rose 18% to $1.16 billion as Permian gas volumes grew 11% to a record 6.28 billion cubic feet per day and NGL transport volumes surged 23% to a record 961,200 bpd. This strong performance prompted Targa to expand its buyback plan by announcing a new $1.0 billion share repurchase program, in addition to its previous $1 billion plan.
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1. Nymex natural gas fell 3.02% this week, settling at $2.99
2. Summary: Front Month Nymex Natural Gas for September delivery fell 3.02% for the week ending August 8, losing 9.30 cents to settle at $2.9900 per million British thermal units. This marks the third consecutive weekly decline, with the price dropping 57.50 cents, or 16.13%, over the last three weeks—the largest three-week percentage loss since late April 2025. Year-to-date, the price is now down 17.70%; while up 57.04% from its 52-week low, it remains off 33.42% from its 52-week high of $4.491 set in March 2025.
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1. LNG industry warns new U.S.-built ship mandate threatens exports
2. Summary: U.S. energy groups are asking the Trump administration to exempt LNG tankers from a new rule requiring an escalating share of exports on U.S.-built vessels, starting at 1% in 2028. Industry groups argue compliance is impossible as only five U.S.-built LNG carriers exist (none in use) out of a global fleet of 792, and building a single new ship can take up to five years. The 1% mandate alone would require up to five new U.S.-built ships, and failure to comply could result in exporters losing their licenses for the $34 billion annual industry.
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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/webs

August 4, 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.

• BP boosted by biggest oil discovery in 25 years
• Summary: On August 4, BP announced its biggest oil and gas discovery in 25 years offshore Brazil, its tenth find in 2025, causing its shares to rise 1.7% to 405.5p. The find aligns with BP’s renewed focus on hydrocarbons and its plan to grow global upstream production to 2.3 to 2.5 million barrels of oil equivalent per day by 2030. This news comes just before its August 5 Q2 results, where a $300 million to $500 million benefit from refining margins is expected to be offset by the negative impact of lower oil prices.
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1. OPEC+ agrees to another large oil output hike, sources say
2. Summary: On August 3, sources said OPEC+ reached a preliminary deal to increase its oil production by 548,000 barrels per day (bpd) for September, amid supply concerns linked to Russia. If agreed, this 548,000-bpd hike would mark a full reversal of the group’s largest output cut tranche of 2.2 million bpd and allow the UAE to raise output by 300,000 bpd. This follows large hikes in previous months, but a separate voluntary cut of about 1.65 million bpd from eight key members remains in place until the end of the year 2026.
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1. Chevron, Exxon earnings highlight shift from rivals to allies
2. Summary: U.S. oil supermajors Chevron and Exxon Mobil both reported over 20% profit declines in Q2 2025, with Chevron’s EPS down 30.6% to $1.77 and Exxon’s down 23% to $1.64. Despite lower oil prices, Exxon’s production hit a 25-year Q2 high of 4.63 million boe/d, returning $9.2B to shareholders, while Chevron produced 3.39 million bpd and returned $5.5B. The reports highlight a new era of cooperation, with the rivals now partners in Guyana’s Stabroek block after Chevron finalized its Hess acquisition for a key 30% stake.
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1. Oil prices rise for fourth day on Trump tariff supply fears
2. Summary: Oil prices climbed for the fourth straight session at the end of July, supported by concerns over potential supply disruptions. Market sentiment was influenced by newly proposed tariffs on countries importing Russian crude, along with broader trade-related risks. Brent and WTI posted modest gains, despite U.S. crude inventories rising by 7.7 million barrels, as tightening supply expectations continued to support prices.
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• EPA pushes back rollout of methane emission rule for oil and gas
• Summary: The EPA has issued an interim final rule granting oil and gas operators an 18-month extension to comply with methane emission standards originally finalized in 2024. The agency also extended deadlines for states to submit emissions plans. The delay stems from concerns about operational readiness and overlaps between federal performance standards. Critics have raised questions about environmental and public health implications.
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1. Nat-Gas prices recover on forecasts for hotter U.S. weather
2. Summary: U.S. natural gas prices recovered from a 3.25-month low on July 31, with the September Nymex contract closing up 2.00% on forecasts for hotter weather in early August. The recovery followed a price drop caused by a bearish EIA report, which showed that inventories for the week ended July 25 rose by 48 bcf, higher than the expected 41 bcf. This bearish supply outlook is further supported by total inventories standing 6.7% above their 5-year average and the active gas rig count rising by five to a nearly 2-year high of 122 rigs.
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• U.S. weekly Baker Hughes oil rig count actual 410, previous 415
• Summary: For the week of July 25, the U.S. total rig count stood at 540, down 46 from a year ago, as the oil rig count fell by five to a new low of 410 while gas rigs rose by two to 124. The oil rig count hit its lowest since September 2021 due to lower prices, while the gas rig count reached its highest since August 2023, driven by strong export demand and higher spot prices. Despite this, the EIA projects crude output will rise to 13.4 million bpd in 2025, and a projected 68% gas price hike will boost gas output to 105.9 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.

July 28, 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.

• Interior proposes easing oil and gas commingling rules
• Summary: The Interior Department has proposed rule updates allowing oil and gas operators to commingle production from multiple leases, even those with different ownership and royalty rates. Enabled by modern metering technology ensuring accurate royalty allocation, the change could generate up to $1.8 billion in annual industry savings for reinvestment in new production. The rule is intended to improve operational efficiency, reduce surface disturbance, and support increased domestic energy production.
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1. EIA revises oil price forecast but still expects prices to decrease
2. Summary: In its July Short-Term Energy Outlook, the EIA revised its 2025 Brent crude oil price forecast up by $3 to an average of $69 per barrel, citing geopolitical risk from the Israel-Iran conflict. However, the agency still expects prices to decrease to about $58 per barrel in 2026 as global supply growth outpaces demand. Consequently, EIA projects U.S. crude production will dip from a high of 13.5 million bpd in Q2 2025 to 13.3 million bpd by Q4 2026, averaging 13.4 million bpd for both years.
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1. US rig count falls for 12th time in 13 weeks, says Baker Hughes
2. Summary: For the 12th time in 13 weeks, the U.S. oil and gas rig count fell, dropping two to 542 as of July 25, down 8% year-over-year and marking a fifth consecutive monthly decline. This drop was driven by oil rigs, which fell by seven to a low of 415, while gas rigs rose by five to 122; the Permian Basin rig count also fell by three to a new low of 260. Despite this drilling slowdown, the EIA projects crude output will still rise to 13.4 million bpd in 2025, and a 68% gas price hike will boost gas output to 105.9 bcfd.
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• First-half 2025 natural gas price volatility down in U.S.
• Summary: U.S. natural gas price volatility declined in the first half of 2025, with quarterly volatility falling from a high of 81% in Q4 2024 to 69% by mid-2025, according to the EIA. This stability reflects a major inventory swing, as storage went from 4% below the 5-year average in Q1 to 6% above average by the end of Q2 (a 173 bcf surplus) due to robust injections. The recovery was driven by a seven-consecutive-week stretch of storage injections over 100 bcf, the longest such period since 2014, easing supply concerns.
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• New Mexico lawmakers approve oil royalty rate hike for prime land
• Summary: By a 37-31 vote, the New Mexico Legislature passed a bill to increase the top royalty rate for new oil and gas development on prime state trust lands from 20% to 25%. The proposal, now awaiting the governor’s signature, aims to maximize returns from the Permian Basin and match the 25% royalty rate already charged in neighboring Texas. Royalty payments from the nation’s No. 2 oil-producing state go into a trust that distributes about $1.2 billion annually to the state’s public schools, universities, and hospitals.
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1. S&P Global: Permian methane intensity drops by half in two years
2. Summary: The methane emissions intensity of oil and gas production in the Permian Basin declined by more than 50% from 2022 to 2024, according to a new S&P Global Commodity Insights analysis. In 2024 alone, methane intensity fell 29% to 0.44% per barrel of oil equivalent as absolute annual emissions dropped 21.3 billion cubic feet (bcf), a 22% decline from the year prior. The analysis, based on 500+ aerial surveys covering 90% of basin production, attributes this reduction to better equipment and using AI for advanced leak detection.
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1. Oil prices settle at 3-week low on US and China economic worries
2. Summary: On July 25, oil prices hit a three-week low as Brent crude settled down 1.1% at $68.44 and WTI crude fell 1.3% to $65.16, marking weekly losses of about 1% and 3% respectively. The decline was driven by concerns over weak U.S. economic data and China’s 0.3% dip in fiscal revenue, coupled with signs of growing supply from OPEC+ and potentially Venezuela. The U.S. is preparing to allow firms like Chevron to operate in Venezuela, a move that could boost the nation’s oil exports by more than 200,000 barrels per day.
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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.