Valor | Energy Connection – Oct. 27, 2025

October 27, 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.

• Oil and gas industry layoffs accelerate with lower prices
• Summary: Oil and gas industry layoffs accelerate due to lower prices and M&A integration, impacting firms like Chevron, Exxon, ConocoPhillips, BP, Halliburton, and SLB. These companies are cutting thousands of roles through reorganization and restructuring to improve efficiency. Chevron plans a 20% workforce reduction by end-2026, ConocoPhillips up to 25%, and BP targets 6,200 office roles by end-2025 after cutting 3,200 contractors and planning another 1,200 contractor cuts this year.
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1. Oil spikes as U.S. sanctions Russian producers
2. Summary: New U.S. sanctions froze assets of Russia’s top oil producers, Rosneft and Lukoil, and blocked U.S. entities from dealing with them, causing oil prices to leap over 5%. Intended to pressure Russia over the Ukraine war, the sanctions led major buyers like India (taking 1.6-1.8M bpd) and China (17% of imports) to prepare massive cuts in Russian crude. This disruption pushed Brent crude above $65/barrel, boosting Shell and BP shares by ~3%, while Exxon and Chevron saw smaller gains of 1.1% and 0.6% respectively.
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1. U.S. rig count rises for second straight week, Baker Hughes says
2. Summary: For the second straight week, the U.S. oil and gas rig count rose, climbing by two to 550 as of October 24, its highest level since June, though it remains down 6% year-over-year. This increase was driven entirely by oil rigs, which rose by two to a new total of 420, while gas rigs held steady at 121; the Texas rig count fell one to a low of 236. Despite a planned 3% capex cut for 2025, the EIA projects crude output will rise to 13.5 million bpd and a 56% gas price hike will boost gas output to 107.1 bcfd.
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• Oil prices head for weekly gain after U.S. sanctions spark rally
• Summary: New U.S. sanctions targeting Russia’s Rosneft and Lukoil pushed oil prices higher, putting benchmarks on track for a weekly gain after recent losses, with Brent near $65.63 and WTI near $61.43 after adding ~$4/bbl. The rally was sparked by reports that major buyers China and India are pausing new orders for Russian crude, which totals over 2 million barrels per day (bpd), as they assess sanction risks. Despite the pause, analysts believe the impact may be limited as replacing this volume is challenging, and Russia might circumvent the sanctions.
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• LNG buildout needs both Permian and Haynesville gas
• Summary: Growth in U.S. LNG exports, set to add 15 Bcf/d of capacity to the current 17.5 Bcf/d, necessitates increased gas supply from both the Permian and Haynesville basins due to Appalachian takeaway limits. The EIA forecasts Permian output reaching 28 Bcf/d and Haynesville 15.6 Bcf/d by 2026, though bottlenecks like the Katy hub (with <3 Bcf/d to Gillis) require more Haynesville output. Pipeline expansions totaling 8 Bcf/d are planned, while higher prices above Haynesville’s ~$3.50/MMBtu breakeven will spur drilling.
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1. Water shortage threatens Texas refining hub
2. Summary: Corpus Christi, a major Texas refining hub processing >900,000 bpd, faces its worst water shortage, with storage at ~11.7% capacity, potentially reaching a Level 1 emergency late next year. This threatens the industrial sector, which used >1.1 billion gallons in September (more than residents/businesses), while a $1.2B desalination plant is uncertain. The city’s new plan uses surcharges ($12/1000 gal over 12M gal/month) and potential 5% cuts for industry, as manufacturing water use grew to 23.1B gal/yr by 2023.
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1. Natural gas holds $3.30 on record LNG exports and rising winter demand
2. Summary: U.S. natural gas prices settled near $3.30/MMBtu, holding a 10% weekly gain despite a 1.2% daily drop, balancing high storage against rising heating demand and record LNG exports. Storage sits at 3,878 Bcf (~5% above the 5-year average), while LNG export flows surged to an all-time high of 17.29 Bcf/d, exceeding April’s record, and production remains high near 106.7 Bcf/d. Technically, prices hold support above $3.20-$3.27, with a potential technical rally targeting $3.71–$3.80 if bullish momentum sustains.
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