April 20, 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.
- U.S. oil, gas drilling activity slows
- Summary: The U.S. total rig count fell to 543 this week, with oil rigs slipping by one to 410 and gas rigs decreasing by two to 125, according to Baker Hughes. While weekly crude production remained steady at 13.596 million bpd, the Frac Spread Count grew by five crews following a previous seven-crew gain. Oil prices plummeted on news that Iran reopened the Strait of Hormuz, with Brent dropping 10.46% to $88.99 and WTI falling to $83.24 as the market reacted to the potential easing of shipping logistics.
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Big oil plows billions into far-flung drilling sites to escape Iran turmoil - Summary: ExxonMobil and Chevron are redirecting billions toward global exploration in Nigeria, Venezuela, and Greece to mitigate revenue losses and supply risks. Wood Mackenzie estimates major firms could create $120 billion in value from these ventures, following Exxon’s 6% production hit and $5 billion revenue loss due to damaged facilities in Qatar. While U.S. oil futures trade near $88, companies are utilizing windfall cash to secure reserves for the 2030s.
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- Permian constraints keep Waha gas prices negative for record stretch as U.S. markets weaken
- Summary: Permian pipeline constraints have kept Waha Hub natural gas prices negative for a record 47 consecutive days due to trapped associated gas and limited takeaway capacity. On April 14, mild weather and strong renewable output pushed spot power and gas prices below zero in Texas and California, including the SP-15 hub. While hydropower generation remains above normal at The Dalles Dam, high production and infrastructure bottlenecks continue to pressure domestic pricing despite global volatility.
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- Middle East oil output may take two years to recover
- Summary: ICE Brent fell below $90 per barrel as markets assess near-term supply expectations and potential changes in global shipping flows. OPEC crude output declined significantly last month, while China’s domestic production reached a record level in March. Amid these shifts, ExxonMobil adjusted initial LNG cargo activity at Golden Pass, as analysts warn regional supply recovery could take an extended period.
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Trading desks boom while big oil output stalls - Summary: European supermajors Shell, BP, and TotalEnergies expect exceptional Q1 2026 earnings driven by oil and gas trading profits amid extreme volatility where Brent for immediate delivery spiked to $150. While TotalEnergies saw 15% of its global production shut in due to Middle East conflict, a 10% increase in LNG production and new startups in Brazil and Libya helped offset these losses. Conversely, U.S. majors Exxon and Chevron face mixed results, with combined hedging and refining losses.
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Weather-driven demand supports natural gas market today - Summary: May Nymex natural gas rose for a fourth straight session, recovering from a low of $2.561 as above-average heat forecasts for April 22–26 boost cooling demand in the Southeast and Midwest. Despite this rally, a steep three-month downtrend persists, capped by record U.S. production exceeding 111 bcf/day and inventories sitting nearly 6% above the five-year average. While damage to Qatar’s Ras Laffan facility tightens global LNG supply, domestic oversupply remains a ceiling for near-term gains.
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Oil slides but the real test comes this weekend - Summary: ICE Brent fell below $90 per barrel as markets anticipate U.S.-Iran talks in Islamabad to end a 45-day blockade of the Strait of Hormuz. OPEC crude output plunged by a record 7.88 million bpd last month to 20.79 million bpd, while China’s domestic production hit an all-time high of 4.51 million bpd in March. Amid these shifts, ExxonMobil withdrew its first two Golden Pass LNG cargoes despite the plant taking in 290 million cf/day, as the IEA warns regional recovery could take at least two years.
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