Venezuela has signed oil-sector agreements with SLB and Hunt Oil aimed at supporting field development, production enhancement and reservoir studies. The agreements come as Venezuelan crude production averages about 1.25 million bbl/d, with more than 500,000 bbl/d recently flowing to U.S. refiners.
Diamondback Energy has taken ownership of six Zarvona Energy air-permitted facilities across Crane, Ector, and Upton counties, expanding its presence within its core Permian Basin footprint. The transfers reflect a broader shift in Permian M&A from transformational mergers focused on scale toward portfolio optimization, bolt-on assets, and improving the efficiency and quality of existing acreage positions.
Major North American drilling contractors are reporting stronger U.S. rig demand, higher reactivation activity and tightening supplies of high-spec equipment. The Permian Basin remains a key growth market, with additional rigs, upgrades and longer-term drilling programs expected through late 2026 and into 2027.
Targa Resources signed 20-year midstream agreements with ExxonMobil and plans three Delaware Basin gas processing plants totaling approximately 825 MMcf/d of capacity. The company will also build the 70-mile Bull Run II pipeline to Waha, with the new infrastructure targeted to enter service in the first half of 2028.
Seven operators recorded their first new well permit of 2026 last week, signaling new or renewed development activity across several U.S. basins. Desert Eagle Operating, Paladin Petroleum III, and RCK Oil and Gas stand out as the strongest near-term drilling and oilfield-service opportunities, while Validus Water represents a notable water-infrastructure opportunity.
Maintenance Plus is emerging as a key U.S. oil and gas strategy, with operators using workovers, artificial lift, chemicals, AI, automation, and enhanced recovery to unlock incremental production from existing wells. By increasing uptime, slowing decline rates, and controlling LOE per BOE, operators can generate high-return barrels while reducing the capital required to sustain production.
Smaller, steady-state oil and gas operators create consistent sales opportunities by maintaining large producing asset bases while selectively investing in new wells, multi-well pads, and facilities. Tracking block-level development, facility permits, and M&A activity helps service companies identify when these maintenance-plus accounts are entering their next cycle of increased spending.
Global refinery and shipping disruptions are tightening gasoline, diesel and jet fuel supplies, driving refined product prices significantly faster than crude oil. North American oilfield operators and service companies could continue facing elevated fuel and transportation costs even if crude prices retreat.
Devon Energy and WhiteWater have reached FID on the Solitude Pipeline System, which is planned to provide up to 4.5 Bcf/d of natural gas transportation capacity from the Permian Basin to Katy, Texas. Initial service is expected in the second half of 2029, followed by an additional 2.25 Bcf/d of capacity in 2030.
Patterson-UTI’s Permian Basin activity shows 1,189 wells drilled across 56 rigs YTD, with roughly 71% of activity concentrated in New Mexico and the balance in Texas. Mewbourne, Chevron, and Matador account for about 76% of the wells, while most Patterson rigs appear dedicated to a single operator.
