Valor | Energy Connection – Jan. 19, 2026

January 19, 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.

• ‘Massive’ untapped oil and gas reserves discovered beneath the Permian
• Summary: The U.S. Geological Survey (USGS) has discovered 1.6 billion barrels of oil and 28.3 trillion cubic feet of gas in the Permian Basin’s Woodford and Barnett formations, resources potentially critical as traditional shale reserves decline. While experts describe the potential as “massive,” tapping these deeper, hotter formations presents technical hurdles—such as higher gas content and clay-related drilling hazards—that require favorable oil prices to be economically viable.
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1. Natural gas demand to keep rising as LNG exports, AI drive growth
2. Summary: U.S. natural gas demand continues to rise, driven by LNG exports, AI data centers, and manufacturing, having already grown 50% since 2006. It now powers 43% of U.S. electricity and accounted for 37% of total energy consumption in 2024. Producers are responding to this growth with a 23% year-over-year increase in rig counts. Despite the rising demand and exports, the EIA forecasts declining commodity prices in 2026, maintaining affordability.
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1. Pipeline construction reaches an 18-year high on natural gas demand
2. Summary: Natural gas pipeline construction is projected to reach an 18-year high in 2026, adding approximately 18 Bcf/d of capacity across Texas, Louisiana, and Oklahoma—a level unmatched since 2008. Driven by LNG exports and data center power needs, 65% of this expansion targets the Permian Basin to accommodate soaring associated gas production. With natural gas now comprising 40% of output in major tight-oil plays, Morningstar DBRS considers the risk of overbuilding low due to the robust long-term demand outlook.
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• Mitsubishi buys Aethon Energy assets for $7.5 billion
• Summary: Mitsubishi Corporation announced a $7.5 billion deal to acquire all U.S. gas and pipeline assets from Dallas-based Aethon Energy, comprising $5.2 billion in cash and $2.3 billion in assumed debt. The acquisition focuses on the Haynesville Shale in Northeast Texas and Northwest Louisiana, assets producing approximately 15 million tons of LNG equivalent annually. This move integrates with Mitsubishi’s existing North American infrastructure to feed Gulf Coast export terminals, aiming to meet surging global power demand from data centers and technology sectors.
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• U.S. oil drillers add 1 rig as total count dips
• Summary: The U.S. total rig count fell by one to 543 this week, though oil drillers added a single rig, bringing the oil count to 410. This remains 68 fewer than last year, while gas rigs dropped by two to 122, still up 24 year-over-year. The Permian Basin held steady at 244 rigs, with the only regional gain seen in the Haynesville. Meanwhile, U.S. crude production dipped by 58,000 bpd to 13.753 million bpd, just below all-time highs. Completion crews rose slightly to 156. Oil prices climbed on geopolitical risks, with Brent reaching $64.30 and WTI trading at $59.66 per barrel.
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1. BP eyes $5bn green energy writedown as it pivots to oil
2. Summary: BP expects a writedown of up to $5 billion on its “transition businesses”—including gas and low-carbon energy—as it refocuses on fossil fuels under incoming CEO Meg O’Neill. The company reported weaker Q4 oil trading, with Brent prices falling to an average of $63.73 amid a 20% annual slump in 2025. Despite the hit, BP reduced net debt to roughly $22 billion. This comes as Shell and Exxon abandoned their North Sea gas asset sale to Viaro Energy, citing changed commercial conditions.
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• Oil to average $55/bbl in 2026 ‘reset,’ says Enverus
• Summary: Enverus projects 2026 as a “reset year,” forecasting Brent crude to average roughly $55/bbl with tightening balances expected later in the year due to geopolitical risks involving Venezuela, Iran, and Russia. Conversely, natural gas remains constructive, with Henry Hub averaging $3.80/MMBtu this winter and Permian output rising 1.1 Bcf/d on new takeaway capacity. Power markets face strain from AI-driven demand, prompting data centers to seek behind-the-meter generation and driving sustained M&A in gas-fired assets.
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The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.