April 13, 2026 Edition
At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.
- Operators rethink ‘stay the course’ as sustained $100 oil more probable
- Summary: Permian Basin producers are shifting away from initial 2026 plans as sustained $100 WTI prices become more probable, with some operators drilling six wells compared to zero previously. Analysts predict the rig count could surge from 241 to 300 by late 2027, potentially lifting crude production by 500,000 barrels per day to reach 7.3 million. While rig reactivation is fast, labor and pipeline constraints remain, as key systems like Cactus II and Longhorn already operate at or near capacity.
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U.S. gas drops on storage build, Permian bottlenecks keep Waha negative - Summary: U.S. natural gas futures fell 0.5% to $2.711/MMBtu, a seven-month low, after the EIA reported a 50 billion cubic foot storage build for the week ending April 3. Prices at the Waha Hub in West Texas remained negative for a record 44 consecutive days, averaging -$1.37/MMBtu so far in 2026 due to Permian pipeline constraints. While Lower 48 output rose to 111.1 bcfd in April, total gas demand is projected to drop to 100.1 bcfd this week as mild weather keeps heating and cooling requirements low.
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- Oil prices tumble as traders unwind geopolitical bets
- Summary: Crude oil markets reversed sharply between April 5 and April 9, 2026, as traders shifted from aggressive risk pricing to rapid liquidation following a prior 12% rally. May WTI reached a weekly high of $117.73 before collapsing to a low of $91.05, eventually trading at $98.39 by Thursday. This -11.79% weekly decline represents a $13.15 drop driven by aggressive profit-taking and the absence of immediate supply disruptions, causing large funds to quickly unwind long positions as momentum slowed.
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- U.S. drillers cut oil and gas rigs for third time in four weeks, Baker Hughes says
- Summary: U.S. energy firms reduced the total oil and gas rig count by three to 545 for the week ending April 10, marking a 7% decline from the previous year. While oil rigs held steady at 411, gas rigs dropped by three to 127, their lowest since late March, despite a rise in Gulf of Mexico activity to 13 rigs. The EIA projects 2026 crude output will slide to 13.5 million bpd from a record 13.6 million in 2025, even as natural gas production is forecast to reach 109.6 bcfd with prices rising about 4%.
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Mild U.S. weather weighs on Nat-Gas prices - Summary: Natural gas futures fell to a 7.5-month low as mild spring temperatures across the eastern U.S. reduced heating demand, while a larger-than-expected storage build of 50 bcf added further downward pressure. U.S. dry gas production held near record highs at 111.3 bcfd, keeping supply well above its five-year seasonal average. Some medium-term support remains on the outlook for tighter global LNG supplies following damage to Qatar’s Ras Laffan export facility.
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Goldman warns of a natural gas shock that could rival the oil crisis - Summary: Goldman Sachs warns of a painful global gas squeeze as Qatari infrastructure damage at Ras Laffan may take three to five years to repair, potentially requiring a total rebuild. Natural gas prices have already surged 50% to 70%, with analyst Samantha Dart projecting another 50% to 100% increase if supply remains tight ahead of the October inventory deadline. While China’s redirected surplus currently provides relief, the lack of spare U.S. capacity could soon force aggressive demand rationing.
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Record oil production in West Texas helps stabilize U.S. supply amid Iran war - Summary: Texas produced nearly half of all U.S. oil in 2025, reaching 6.6 million barrels daily from the Permian Basin despite operating with significantly fewer rigs than a decade ago. This record output contributed to total U.S. production of 13.6 million barrels per day, helping support domestic supply during a period of global market disruption. While efficiency gains continue to drive higher output, analysts note that lower rig counts could contribute to a modest production decline in the coming years.
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