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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- U.S. oil drillers continue to play it safe
- 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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- Equinor uncovers new oil and gas in North Sea
- 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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- UBS sees Brent oil prices staying in the high $60s in tight market
- 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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- EIA expects record U.S. natural gas consumption in 2025
- 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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