November 17, 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.
- U.S. oil drilling picks up: Baker Hughes
- Summary: The U.S. total rig count rose by one to 549 for the week ending November 14, as oil rigs increased by three to 417 while gas rigs fell by three to 125, according to Baker Hughes data. Meanwhile, U.S. crude oil production for the week ending November 7 set a new record high, rising to 13.862 million bpd from 13.651 million bpd, even as the frac spread count fell by two to 173. Regionally, the Permian Basin rig count rose by two to 253, and oil prices rose, with WTI set to close above $60 a barrel and Brent trading up $1.48 to $64.49.
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- Floating oil storage surge puts market balance on edge
- Summary: A surge of sanctioned oil from Russia, Iran, and Venezuela is idling in floating storage, threatening market balance. Kpler data shows Iranian floating storage doubled to >36 million barrels since August, while Vortexa calculates 161 million barrels of Iranian crude (storage/transit) are at sea. Oil in Asia floating storage alone jumped by 20 million barrels in just 14 days to 70 million barrels (OilX), with sanctioned oil accounting for 20-40% of the total build since August, a glut which could deepen oversupply.
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- Milder forecast and storage build pressure natural gas futures
- Summary: U.S. natural gas futures fell 1.72% on Friday to settle at $4.566, retreating as bearish news weighed on the market. The EIA reported an unexpected storage build of +45 Bcf for the week ending November 7, which was significantly higher than the +34 Bcf consensus and the +35 Bcf five-year average. This surprise build pushed total inventories to 4.5% above the five-year average, while high production at 109.9 Bcf/day (+7.1% y/y) and forecasts for mild weather through Nov 28 continue to pressure prices.
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- Chevron picks Texas for first AI data center power project
- Summary: Chevron selected West Texas for its first natural gas-fired power project to support the AI boom, planning a final investment decision in early 2026 for a 2027 operational start date. The facility is expected to ramp up to 2,500 MW (with 5,000 MW future capacity) and supports a strategy to increase free cash flow 14% annually, reaching $30B by 2030 (at $70/bbl Brent). Chevron also reduced its annual capital budget to $18-$21 billion, raised its annual production growth target to 2-3%, and plans $10-$20 billion in yearly stock buybacks.
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- U.S. government puts 80 million acres of Gulf of Mexico up for lease
- Summary: The Bureau of Ocean Energy Management (BOEM) announced Monday that leases for nearly 80 million acres of the Gulf of Mexico will soon hit the market. This is the first of 30 planned sales mandated by the “One Big Beautiful Bill Act” and aligns with the “Unleashing American Energy” executive order. The Gulf’s 160 million acres are estimated to hold 29.59 billion barrels of undiscovered oil and almost 55 trillion cubic feet of natural gas, and the royalty rate for the new leases will be 12.5 percent, the minimum allowed by law.
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- Goldman revises oil demand forecast after IEA U-Turn
- Summary: Goldman Sachs has revised its oil demand forecast higher, following the IEA’s U-turn, and now sees demand expanding to 113 million b/d by 2040 (from 103.5 million b/d in 2024), abandoning its 2034 peak projection. The IEA itself also departed from its <2030 peak forecast, now projecting 113 million b/d by 2050. Both revisions are attributed to slower net-zero policy progress, infrastructure obstacles for renewables, and slower-than-expected EV adoption, signaling a government priority shift to energy security.
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- Adnoc buy of Covestro wins conditional EU approval
- Summary: TAbu Dhabi National Oil Co. (Adnoc) secured conditional EU approval for its EUR 12 billion ($14 billion) takeover of Covestro AG, a key step in its push to build a global gas and chemicals leader. The approval hinges on 10-year commitments from Adnoc, including maintaining Covestro’s intellectual property in Europe, to allay concerns about state subsidies under new EU foreign subsidy rules. This deal, the largest of its kind, gives Adnoc control of the German supplier and advances its international expansion through its investment unit XRG.
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