February 23, 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.
- Brazos starts up new gas processing plant in Midland Basin
- Summary: Brazos Midstream has commissioned Sundance II, a 300 MMcfd cryogenic plant in Martin County, expanding its Midland Basin footprint across seven Texas counties. The company also began construction on the 300 MMcfd Cassidy I facility in Glasscock County, which will increase total Midland processing capacity to 800 MMcfd by late 2026. These projects, supported by 375,000 dedicated acres, aim to raise Brazos’ total Permian capacity from 1 billion cfd to approximately 1.3 billion cfd this year.
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- U.S. oil drilling activity still going nowhere
- Summary: The total number of active U.S. drilling rigs remained stagnant at 551 this week, representing a year-over-year decrease of 41 units according to Baker Hughes data. While oil and gas rig counts held steady at 409 and 133 respectively, weekly domestic crude production rose by 22,000 bpd to reach an average of 13.735 million bpd. Despite the flat rig count, Frac Spread crews increased by 8, and the Permian Basin saw a slight rise of 1 rig as Brent and WTI futures traded lower at $71.40 and $66.15.
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- Oil holds near six-month high
- Summary: WTI and Brent settled at $66.48 and $71.76 respectively as Middle East supply tensions and a 9-million-barrel drop in US crude stockpiles supported prices near six-month highs. Escalating geopolitical risk in the region, which produces over 3 million barrels daily, raised concerns over potential supply disruptions through the Strait of Hormuz. Despite a 5.6% weekly gain, market indicators like wide backwardation and bullish options skews signal expectations for further tightening, as regional tensions show little sign of easing near-term.
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- After years of buybacks, big oil is drilling again
- Summary: Oil supermajors are shifting strategy from shareholder distributions and low-carbon ventures toward expanding oil and gas reserves due to sustained global demand and slower-than-expected electric vehicle adoption. This pivot follows the International Energy Agency walking back its pre-2030 peak oil demand prediction, prompting companies like Shell and BP to prioritize growth and acquisitions to ensure long-term dividend sustainability. Despite a 20% drop in oil prices last year, investors are encouraging this refocus on core upstream operations as Rystad Energy forecasts a year of energy abundance in 2026.
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- U.S. natural gas pipeline capacity set for biggest buildout since 2008
- Summary: The U.S. natural gas industry is projected to add between 18 and 22 Bcf/d of pipeline capacity in 2026, marking the largest annual expansion since 31 Bcf/d was added in 2008. This massive buildout includes 12 to 22 new projects across Texas, Louisiana, and Oklahoma, driven by a 20% compound annual growth rate in Permian associated gas and rising LNG export demand. Regulatory shifts, including the 2025 One Big Beautiful Bill Act and expedited NEPA reviews as short as 14 days, are accelerating infrastructure meant to relieve Permian price volatility that saw Waha spot prices hit negative $8.790/MMBtu.
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- Natural gas price nears $3.05 as bomb cyclone and supply stress collide
- Summary: Natural gas futures rose to $3.05 per MMBtu as a severe bomb cyclone threatens the U.S. East Coast with heavy snow and 50 mph winds. While domestic production remains resilient, a record storage withdrawal of 360 Bcf during Winter Storm Fern in January has left inventories 5.6% below the five-year average. Globally, Turkish spot prices at 14,583 lira ($9–$10/MMBtu equivalent) and Colombia’s 23% year-over-year production drop highlight a structural supply squeeze. Despite these bullish indicators, European TTF and UK gas prices fell roughly 5% today, reflecting a stabilized medium-term equilibrium compared to the high-beta volatility currently impacting Henry Hub.
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- Japan’s $36 billion bet on U.S. energy dominance
- Summary: Japan has committed $36 billion as the first tranche of a $550-billion investment pledge, headlined by plans to build a 9.2 GW natural gas power plant in Ohio. Operated by SB Energy, this facility aims to meet surging AI-driven data center demand, which contributed to a 2.1% rise in U.S. electricity use in 2025. The funding also supports the Texas GulfLink deepwater port, designed to export 1 million barrels of crude daily and generate up to $30 billion in annual revenue.
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