Valor | Energy Connection – Jan. 26, 2026

January 26, 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.

• Natural-gas prices see ‘historic’ surge as U.S. braces for winter storm
• Summary: U.S. energy firms added one rig this week, bringing the total to 544—the first increase in three weeks—as oil rigs rose by one to 411 while gas rigs held steady at 122. Despite this uptick, the total count remains down 32 rigs, or 5.6%, compared to last year. Meanwhile, the EIA projects 2026 crude output will dip slightly to 13.59 million bpd amid falling prices, while natural gas production is forecast to rise to 108.8 bcfd even as Henry Hub prices are expected to ease by 2%.
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1. Permian wells grow gassier, boosting midstream investment
2. Summary: Permian Basin operators are encountering rising gas-to-oil ratios (GOR) as they target deeper zones and migrate toward the gassier Delaware Basin, a trend East Daley Analytics calls a frustration for upstream investors but an opportunity for midstream companies. This shift, driven by geological factors and aging wells that release more methane as pressure declines, has spurred new investment in processing plants and pipelines. Consequently, Morningstar DBRS forecasts positive growth for natural gas infrastructure in 2026, contrasting with a more muted outlook for crude oil projects.
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1. U.S. drillers add rigs for first time in three weeks
2. Summary: U.S. energy firms added one rig this week, bringing the total to 544—the first increase in three weeks—as oil rigs rose by one to 411 while gas rigs held steady at 122. Despite this uptick, the total count remains down 32 rigs, or 5.6%, compared to last year. Meanwhile, the EIA projects 2026 crude output will dip slightly to 13.59 million bpd amid falling prices, while natural gas production is forecast to rise to 108.8 bcfd even as Henry Hub prices are expected to ease by 2%.
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• IEA Raises Forecast of Global Oil Demand Growth in 2026
• Summary: The International Energy Agency (IEA) raised its 2026 global oil demand growth forecast by 70,000 bpd to 930,000 bpd, citing lower prices and a recovery in the petrochemical sector following the stabilization of economies after 2025’s tariff disruptions. Despite this uptick, the agency projects global supply will surge by 2.5 million bpd to 108.7 million bpd, resulting in a massive implied surplus of 3.69 million bpd. Consequently, benchmark prices remain roughly $16/bbl lower than a year ago, as bloated global inventories—visible in surging oil on water and Chinese stocks—continue to weigh on the market.
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• Oil climbs as weak dollar and risk-on mood counter glut worries
• Summary: Oil prices climbed as a weak dollar—down 0.8% this week, the most since June—and a risk-on market mood offset concerns regarding a global supply glut. Brent crude rose 0.9% to $64.65 a barrel while WTI hovered near $60, positioning the benchmarks for a fifth consecutive weekly gain. Despite the rally, fundamentals remain bearish: U.S. crude inventories swelled by 3.6 million barrels to their highest level since November, and the IEA reiterated that supply is expected to significantly outpace demand this year as flows increase from the Mediterranean, Black Sea, and Venezuela.
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1. Orphaned oil and gas wells in Texas broke a 20-year record in December
2. Summary: The number of orphaned oil and gas wells in Texas reached a 20-year high of 11,123 by the end of 2025, with roughly 2,000 added in the last year alone due to industry consolidation, rising costs, and a 20% drop in crude prices. These ownerless wells pose significant environmental risks and financial burdens on the state, with standard plugging costs around $30,000—though complex leaks can cost ten times that amount. While legislation passed in May attempts to force active plugging, critics argue the lack of deadlines allows companies to pocket profits and dissolve before addressing the cleanup.
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• U.S. crude and gasoline inventories see large gains
• Summary: The American Petroleum Institute (API) estimated a 3.04 million barrel build in U.S. crude oil inventories for the week ending January 16, alongside an 800,000-barrel increase in the Strategic Petroleum Reserve to 414.5 million barrels. Gasoline inventories continued to surge, adding 6.2 million barrels to sit 4% above the five-year average, while distillate stocks dipped slightly by 33,000 barrels. Despite the inventory builds and a slight dip in U.S. production to 13.753 million bpd, oil prices trended higher, with WTI trading at $60.63.
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