June 8, 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.
- Oil prices are up; whither the Texas boom?
- Summary: Texas benefits from higher energy costs as it produced 5.8 mb/d of oil in 2025, accounting for 43% of total U.S. output. However, due to conflict-driven duration uncertainty, 73% of Dallas Fed Energy Survey respondents anticipate no more than 0.25 mb/d of additional production this year. While the average WTI spot price rose from $63 per barrel in early February 2026 to $106 by April 3, the oil and gas sector’s impact is muted by limited pipeline capacity and deep negative Waha natural gas prices.
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U.S. crude oil inventories in freefall: EIA - Summary: U.S. commercial crude oil inventories fell by 8.0 million barrels for the week ending May 29 to 433.7 million barrels, placing stockpiles 3% below the five-year average. Concurrently, total motor gasoline inventories rose by 3.4 million barrels while middle distillates increased by 1.5 million barrels. Driven by tightening supplies, Brent crude rose 2.30% to $98.24 per barrel and WTI climbed 2.27% to $95.99, while overall product demand averaged 20.4 million bpd, up 3.0% from last year.
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- The three reasons why oil is staying below $100 a barrel
- Summary: Oil prices remain in the mid-$90s due to optimism over a U.S.-Iran settlement and a sharp decline in Chinese oil demand, which JPMorgan reported fell by up to 9% or 1.5 mbd. Furthermore, global supply continues to expand as Saudi Arabia pumps through the East-West pipeline, the UAE fast-tracks a bypass line, and U.S. production grinds higher. This comes despite May marking crude’s largest monthly drop ever and the emergency Strategic Petroleum Reserve draining by 8 to 9 million barrels per week.
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- U.S. drillers continue to add oil rigs
- Summary: The total active U.S. drilling rig count rose to 563, with oil rigs increasing by two to 431 while gas rigs fell by one to 124, according to Baker Hughes. Weekly U.S. crude oil production fell to an average of 13.707 million bpd, though this remains 299,000 bpd higher than last year, as completion crews grew by three to 192. Additionally, the Permian Basin rig count increased by two to 257 while oil prices declined, with Brent trading down 1.06% at $94.02 and WTI dropping 1.69% to $91.47.
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Natural Gas News: Forecast turns cautious as supply glut pressures futures - Summary: July Nymex natural gas futures settled 4.28% lower at $3.021 on Friday after failing to break past resistance between $3.387 and $3.396. The drop occurred as domestic production reached 110.4 bcf/d—1.7% above last year—and total inventories remained 5.7% above the five-year seasonal average. Meanwhile, weekly LNG export flows dropped 5.8% to 17.2 bcf/d due to terminal maintenance, offsetting an 8.4% increase in electricity output and a lighter-than-average weekly storage injection of 95 bcf.
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Delfin approves $5 billion FID for first U.S. floating LNG export vessel - Summary: Delfin Midstream sanctioned a $5 billion final investment decision for its first floating LNG vessel, Delfin FLNG 1, marking the first of its kind in the U.S. and the largest globally. The offshore vessel will export up to 4.4 million metric tons of LNG annually from Louisiana and is scheduled to begin production in 2030. Backed by Global Infrastructure Partners, the project holds broader U.S. energy authorization to ultimately export up to 13.2 million tonnes of LNG per year.
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War, gas prices, and AI are fueling a Texas pipeline boom - Summary: Driven by elevated oil prices and surging global gas demand, Permian Basin natural gas production has outpaced takeaway infrastructure, sinking spot prices below negative $9 per thousand cubic feet. To bridge this gap, three new pipeline projects will expand regional export capacity by 20% this year, with three more planned by 2029 to feed Gulf Coast LNG facilities and domestic AI data centers. These data centers are projected by ERCOT to add up to 360,000 megawatts of grid power demand by 2030.
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