Valor | Energy Connection – September 28, 2026

September 28, 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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  Evolution Petroleum eyes cash-flow growth with Midland Basin royalty deal
  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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• A volatile week for crude ends with lower prices
• Summary: Crude prices experienced volatility as October WTI ranged between $88.70 and $101.10/bbl, while October Brent hit $108.25/bbl before settling with an $11.70 spread over WTI. An estimated 5.5 million b/d of crude is moving out of Yanbu and Fujairah, down from 7.8 million b/d in June, as global inventories fell 507 million bbl. EIA reports show SPR stocks down 400,000 bbl to 284.5 million bbl, while gas storage rose 53 bcf to 3.351 tcf, 2.9% above the five-year average.
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• U.S. oil, gas drilling perks up as pressure mounts
• Summary: Baker Hughes data shows total active U.S. drilling rigs increased to 599, rising 50 from a year ago as oil rigs grew by three to 455 and gas rigs gained one to 135. Weekly U.S. crude oil production averaged 13.939 million bpd, down slightly week-over-week but up 438,000 bpd year-over-year. Additionally, Primary Vision’s Frac Spread Count added three completion crews to hit 187, while Permian Basin active rigs increased by one to 270, standing 17 rigs higher than the same period last year.
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• BP eyes bigger U.S. shale footprint after Devon deal talks
• Summary: BP evaluated Devon Energy’s South Texas Eagle Ford position—covering roughly 90,000 net acres and 77,000 boepd of Q2 production—before ultimately walking away from a deal. Valued between $3.5 billion and $4.5 billion, Devon’s acreage is on the market alongside its Powder River Basin assets following a $58 billion merger with Coterra. Meanwhile, BP reported $5.7 billion in underlying replacement cost profit for Q2 as its BPX unit aims for over 650,000 boepd by 2030.
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• Double E expansion advances Permian takeaway to Waha
• Summary: Summit Midstream sanctioned a 900 MMcf/d expansion of the 135-mile Double E Pipeline after securing 550 MMcf/d in long-term commitments, bringing total contracted capacity to roughly 2.2 Bcf/d. The 70%-owned system expansion targets a Q4 2028 startup and expects Summit’s project share to total $100 million while 450 MMcf/d remains available. Meanwhile, Waha spot prices averaged $1.840/MMBtu, trading $1.055 below the $2.895 Henry Hub benchmark as the region eyes data center demand.
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• Why record heat failed to lift U.S. natural gas prices
• Summary: Henry Hub natural gas averaged $2.93 per MMBtu from June through August, 6% below last year’s period, despite record July temperatures reaching 77°F across the Lower 48. Solar and wind added 28.7 BkWh of generation, quadrupling the 7.5 BkWh increase from gas-fired power, while dry gas output rose 2.7 Bcf/d toward a record 111.2 Bcf/d full-year average. Working gas inventories entered spring 4% above the five-year average and are expected to hit 3.985 Tcf by late October.
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• EIA: US crude oil inventories up 3 million bbl
• Summary: U.S. commercial crude oil inventories rose by 3.0 million bbl for the week ended Sept. 18 to 426.4 million bbl, placing stocks roughly 2% above the five-year average. Refinery inputs dropped by 519,000 b/d to average 16.8 million b/d with operations at 94% capacity, while crude imports fell 1.2 million b/d to 5.9 million b/d. Product inventories saw gasoline decline 1.7 million bbl and distillates drop 400,000 bbl, as total product supplied averaged 20.6 million b/d over four weeks.
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