Valor | Energy Connection – Nov. 24, 2025

November 24, 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. drillers pick up the pace
• Summary: The total U.S. rig count rose by five to 554 for the week ending November 21, driven by two-rig increases in both oil and gas counts to reach 419 and 127, respectively. While weekly U.S. crude production dipped slightly to 13.834 million bpd, Primary Vision’s frac spread count broke a losing streak by gaining two crews to hit 175. Despite increased drilling activity, oil prices trended downward on Friday, with the WTI benchmark trading at $57.89 and Brent falling to $62.37 per barrel.
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1. ExxonMobil to acquire 40 percent of Bahia NGL pipeline
2. Summary: Enterprise Products Partners will sell a 40% stake in its 550-mile Bahia NGL pipeline to ExxonMobil, with the deal expected to close in early 2026 pending regulatory approval. The pipeline will initially transport 600,000 barrels per day (bpd) of natural gas liquids from the Permian Basin to Mont Belvieu. The partners plan to boost capacity to 1 million bpd by Q4 2027 via a 92-mile extension to Exxon’s Cowboy plant, capitalizing on a projected 30% rise in Permian NGL production.
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1. Natural gas prices surge toward $5.00 on U.S. cold snap and LNG exports
2. Summary: Natural gas prices stabilized near $4.70/MMBtu, with futures settling at $4.58 after a 50% gain since mid-October, supported by forecasts of sustained cold weather across the U.S. Midwest and Northeast. The bullish sentiment is reinforced by U.S. working gas stocks at 2.44 Tcf (~47 bcf below the five-year average) and rising LNG exports, even as European TTF benchmarks fell to €30.31/MWh on milder weather and reduced geopolitical risk. Technically, a close above $4.81 could push prices toward $5.00, while support holds firm at $4.51–$4.65 amid record production near 104 bcf/d.
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• U.S. Gulf output set to rise as Beacon Offshore starts new wells
• Summary: Beacon Offshore Energy brought four wells online in the U.S. Gulf averaging 25,000 bpd, using technology to handle 20,000 psi pressure at depths exceeding six miles. This project revives the Shenandoah prospect to counter plateauing shale output, with Beacon planning to add roughly two wells annually to its floating production hub. Wood Mackenzie forecasts U.S. Gulf production will increase by 300,000 barrels per day this year and 250,000 in 2026, signaling a drilling renaissance in the region.
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• Refining margins soar as oil product markets tighten
• Summary: Refining margins across the U.S., Europe, and Asia hit two-year highs as fuel markets tighten due to refinery closures, maintenance, and attacks on Russian infrastructure. Supply constraints are acute, with U.S. crude throughput falling to 15.6 million bpd from 17.5 million bpd, while global refinery runs dropped 2.9 million bpd in October. Strong diesel demand and depleted stocks are offsetting bearish crude signals, incentivizing refiners to maximize production ahead of impending sanctions.
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1. Oil prices on edge as peace talks progress
2. Summary: Oil prices remain under pressure after a ~3% decline last week — with West Texas Intermediate (WTI) trading near $58.05/barrel and Brent Crude around $62.58/barrel. The slide comes as negotiators in Geneva make progress toward a potential peace framework in Eastern Europe, raising the possibility of previously sanctioned Russian crude returning to global markets. At the same time, a stronger U.S. dollar and increasing output from OPEC+ are adding further headwinds for oil prices.
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1. IEA: Oil demand to keep rising until 2050
2. Summary: The International Energy Agency (IEA) has reversed its previous prediction of peak oil demand by 2030, now projecting demand could rise to 113 million barrels per day by 2050, a 13% increase from 2024 consumption. This shift stems from using a “current policies scenario” that reflects governments prioritizing energy security over climate goals and rising power needs from tech industries like AI. Consequently, the IEA warns the world will likely fail to meet the Paris Agreement’s 1.5°C target.
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