The reopening of the Strait of Hormuz is unlikely to trigger a major U.S. shale drilling surge, as operators remain focused on capital discipline and shareholder returns rather than chasing short-term oil price movements. Oilfield service companies should prepare for a highly competitive market where efficiency, technology, and cost-saving solutions matter more than production growth.
Zarvona Energy LLC drilled its first well of 2026, the Gran Torino SN 1H, in Jasper County, Texas, targeting the Austin Chalk within the Magnolia Springs field using Big E 6. The well continues the Houston-based operator’s selective development strategy and adds to a drilling program that has included 42 wells since 2016 across the Permian Basin and East Texas.
Shell has temporarily suspended its $3 billion share buyback program until July 14, 2026, as it works through regulatory and technical requirements related to its $16.4 billion acquisition of ARC Resources. The deal will add approximately 370,000 boe/d of production from ARC’s Montney assets in Alberta and British Columbia, strengthening Shell’s long-term natural gas and LNG growth strategy.
Admiral Permian Resources has permitted nine new horizontal Bone Spring wells at its Red Ryder Unit in Loving County, Texas, expanding development activity after drilling three initial wells in 2025 and securing approval for a new Central Tank Battery facility in May 2026. The project now includes two new multi-well pads targeting multiple reservoir intervals, signaling a transition toward larger-scale manufacturing-style development within the Delaware Basin.
Lakewood Energy drilled its first well of 2026 in Loving County, Texas, utilizing Helmerich & Payne Rig 486 as the operator continues to expand its Delaware Basin development program. Since 2022, Lakewood has drilled or permitted 16 wells across Reeves and Loving Counties, targeting the prolific Wolfcamp formation in the Permian Basin.
Fossil Petroleum LLC has drilled 13 wells in Texas since 2017, with most activity concentrated in Irion County before shifting to Cass County in East Texas. After a pause in drilling between 2021 and 2023, the company resumed operations and has drilled three new wells in Cass County since 2024.
LOGAS ENERGY, LLC has drilled a new well in the La Gloria (Atlee-F Zone) Field of the South Texas Conventional Play, with Price Drilling Rig 4 assigned to the project in Brooks County, Texas. The privately held operator continues its strategy of selectively developing mature South Texas assets, recording two new wells since 2022 while maintaining a focus on production optimization and disciplined growth.
Red Highland Resources LLC has expanded its Permian Basin footprint through the acquisition of multiple Howard County production facilities from OXY USA Inc., strengthening its strategy of operating and optimizing mature, cash-flow-generating oil and gas assets. The divestment aligns with Occidental’s portfolio optimization strategy of selling non-core facilities while concentrating capital and development efforts on higher-return core assets and large-scale Permian drilling programs.
BP is simplifying its operations by reorganizing into two core business segments—Upstream and Downstream—effective July 1, 2026, to improve performance, reduce complexity, and drive shareholder value. The move consolidates oil, gas, carbon capture, and renewable natural gas activities under Upstream, while refining, fuels, mobility, hydrogen, and Castrol operations will be managed under Downstream.
APA Corporation is acquiring Savant Alaska for approximately $70 million, gaining strategic North Slope infrastructure including the Badami production facility, the Nutaaq pipeline, and 104,000 gross acres. The acquisition expands APA’s eastern North Slope position to approximately 487,000 gross acres and supports a planned two-well exploration and appraisal drilling program during the 2026-2027 winter season.
