Valor | Energy Connection – Dec. 22, 2025

December 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.

• Dallas Fed survey shows oil and gas activity decline
• Summary: Oil and gas sector activity edged lower in Q4 2025, with the business activity index negative at -6.2 and the outlook uncertainty index remaining elevated at 43.4. Oil production improved to -3.4 while gas production rose to 0.0; meanwhile, input costs for oilfield services firms slowed, with the index falling from 34.8 to 24.4. The aggregate employment index declined from -1.5 to -10.8, and employee hours fell to -9.3, though the wages and benefits index remained positive but fell to 6.2.
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1. North America rig count remains flat
2. Summary: North America’s rig count remained flat at 740, with the U.S. dropping one rig to 548 while Canada added one to reach 192. The U.S. tally includes 414 oil rigs and 127 gas rigs, showing a weekly decline of two offshore rigs despite a gain of four in the Haynesville basin. Year-over-year data indicates the total North American count is down by 40 rigs, driven by a 41-rig decrease in the U.S. offset slightly by Canada adding one rig, while Texas added two rigs week-on-week in the latest update.
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1. Oil set to close lower for second straight week
2. Summary: Oil prices are set for a second weekly decline, with Brent down 2.3% and WTI dropping 2.5%, as Russia-Ukraine peace hopes outweigh concerns over a Venezuelan blockade. Brent fell to $59.73 and WTI to $56.02 as traders balanced the risk to Venezuela’s 1% global supply share against reports that peace talks are progressing. Analysts warn that a break below support at $54.98 could target $50.00, though Bank of America expects reduced supply to eventually stem the price fall.
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1. Oil prices rise as US ramps up action against Venezuela tankers
2. Summary: Oil prices rose over 2% Monday after the U.S. intercepted a Venezuelan tanker, sparking supply fears regarding the nation’s 1% share of global crude. Brent futures gained $1.31 to $61.78 per barrel and West Texas Intermediate climbed $1.25 to $57.77, reversing the previous week’s 1% decline. The rebound followed tighter enforcement actions and reports of a Ukrainian drone strike on a Russian vessel, despite lingering oversupply concerns in the market.
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1. U.S. natural gas futures climb 2% on near-record LNG export flows
2. Summary: U.S. natural gas futures for January rose 1.9% to settle at $3.984 per mmBtu, driven by near-record LNG export flows averaging 18.5 bcfd this month. Despite record production of 109.6 bcfd and mild weather forecasts reducing demand to 127.5 bcfd, the front-month contract climbed out of oversold territory. Meanwhile, Energy Transfer suspended development of its Lake Charles LNG plant to prioritize pipeline investments, while calendar 2026 futures fell to a 13-month low of $3.73.
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• Energy Transfer scraps development of Lake Charles LNG export project
• Summary: Energy Transfer suspended its 16.45 mtpa Lake Charles LNG project in Louisiana due to rising costs and oversupply fears, becoming the first to halt operations since January’s expedited permits. The company will instead prioritize the Desert Southwest pipeline expansion, where costs rose to $5.6 billion to increase capacity to 2.3 bcfd by Q4 2029. This shift impacts partners like Chevron, which contracted 3 mtpa, as the firm reallocates capital to assets offering superior risk and return profiles.
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• JAPEX secures DJ basin tight oil assets in $1.3 billion Verdad deal
• Summary: JAPEX approved the $1.3 billion acquisition of Verdad Resources, securing tight oil assets in the Denver-Julesburg basin that will double its net production and triple proved reserves. The transaction is expected to close in February 2026, with subsidiary Peoria Resources assuming operatorship and employing approximately 50 personnel to manage development through the early 2030s. This move establishes a U.S. operator-led business while supporting potential future LNG and carbon capture collaborations.
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