Valor | Energy Connection – September 21, 2026

September 21, 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.

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  Enbridge launches open season for West Texas Express natural gas pipeline
  Summary: Enbridge launched a non-binding open season for its proposed 2-bcfd West Texas Express natural gas pipeline project to transport Permian basin supply west from Waha to El Paso area markets. The project is currently expected to include over 150 miles of new 42-inch OD pipeline, with potential laterals serving Hudspeth County, Texas, and delivery points at the U.S.-Mexico border. Pending commercial support and approvals, Enbridge targets a Q4 2029 in-service date, with the open season closing on September 25, 2026.
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• U.S. oil, gas rig count creeps up with strong prices
• Summary: Baker Hughes reported that active U.S. drilling rigs increased to 595, reflecting a 53-rig gain from last year as oil and gas rigs both rose by two to 452 and 134, respectively. EIA data showed weekly domestic crude production averaged 13.944 million bpd, down slightly week-over-week but up 462,000 bpd from last year. Additionally, Primary Vision’s Frac Spread Count added six crews to reach 184, while Permian Basin active rigs rose by one to 269, standing 15 rigs above year-ago levels.
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• Oil falls as supply fears ease
• Summary: Global crude oil prices fell for a third straight session, with Brent edging 0.9% lower to $103.87 a barrel and WTI dropping 1.6% to $100.30 per barrel. Easing supply concerns followed reports that Saudi Aramco plans to partially restart its 7-million-barrel-per-day East-West pipeline within days and achieve full capacity within six weeks. Despite the price decline, money managers increased their net-long positions across Brent and WTI by 18,254 lots to 429,413 lots through September 15.
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• EIA forecasts continued growth in U.S. crude oil production through 2026
• Summary: U.S. crude oil production is projected to reach a record 13.8 million b/d in 2026, up from 13.7 million b/d in 2025, after averaging 13.7 million b/d in the first half of 2026. Permian production is forecast to average 6.8 million b/d in 2026, a 3% increase over 2025 supported by WTI prices averaging $84/bbl through August compared to $65/bbl in 2025. Federal Gulf of Mexico output rose 10% or 0.2 million b/d in first-half 2026, driven by four projects including Shenandoah at 70,000 b/d.
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• U.S. natural gas market verging on record growth
• Summary: The EIA projects U.S. natural gas production to reach record highs of 111.7 bcfd in 2026 and 115.9 bcfd in 2027, up from 107.6 bcfd in 2025. Domestic consumption and average LNG exports are also set to expand, with LNG exports forecast to rise from 15.1 bcfd in 2025 to 17.4 bcfd in 2026 and 18.6 bcfd in 2027. An EY benchmark study noted that natural gas production rose 18% and reserves increased 14%, even as industry capital expenditures fell 49% and overall M&A spending dropped 70% year over year.
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• U.S. oil inventories jump as Cushing stocks keep falling
• Summary: The American Petroleum Institute estimated that U.S. crude oil inventories increased by 7.14 million barrels for the week ending September 11, while Cushing stocks fell by 246,000 barrels. Meanwhile, SPR inventories declined by 400,000 barrels to 285 million barrels, and U.S. production for the week ending September 4 rose to 13.947 million bpd. Gasoline and distillate inventories gained 1.46 million barrels and 1.61 million barrels respectively, as Brent crude reached $108.68 and WTI hit $107.38.
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• EIA forecasts record production in 2026 in U.S., Permian Basin
• Summary: The U.S. Energy Information Administration forecast that domestic crude oil production will average a record 13.8 million barrels per day in 2026, surpassing 13.7 million b/d last year. During the first half of 2026, U.S. output averaged 13.7 million b/d, representing a 2% or 0.3 million b/d increase compared to the same period in 2025. Permian Basin production is expected to rise 3% to average 6.8 million b/d in 2026, supported by WTI crude prices averaging $84 per barrel through August versus $65 in 2025.
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