Brent reached $87.97 per barrel and WTI climbed to $82.16 as an extended U.S. naval blockade of Iran increased concerns about global crude supplies. Reduced Strait of Hormuz traffic, attacks on ADNOC vessels and disruption risks at Russia’s Ust-Luga export hub are keeping geopolitical supply concerns elevated.
ConocoPhillips has started production from its approximately $800 million Coyote 3SX development in Alaska’s Kuparuk River Unit, with gross peak output expected to reach 12,000 barrels per day. OilGasLeads data shows 81 Alaska wells spud in 2026, including 25 associated with ConocoPhillips, highlighting continued upstream activity across the state.
The latest U.S. Gulf oil and gas lease sale generated $82.7 million in high bids, while drilling data shows 84 well records across 15 operators, led by Shell and Chevron. Mississippi Canyon, Green Canyon, and Walker Ridge account for 50% of the drilling activity, highlighting key areas for offshore oilfield service opportunities.
U.S. marketed natural gas production is forecast to reach a record 122.5 Bcf/d in 2026, with the Permian and Haynesville providing major sources of growth. OilGasLeads YTD data identifies 7,435 gas-related wells drilled, including 3,519 in the Permian, with Exxon (XTO), Devon Energy and OXY USA leading operator activity.
U.S. operators across multiple mature oil and gas regions issued their first new well permits in at least 12 months, signaling renewed investment from conventional producers, shale operators and infrastructure companies. The activity highlights the geographic and operational diversity supporting North America’s position as a secure and flexible source of energy supply.
Phillips 66, Kinder Morgan and HF Sinclair have approved the $5 billion Western Gateway Pipeline, a 1,300-mile system designed to transport up to 230,000 barrels per day of refined products to western U.S. markets. The project includes approximately 900 miles of new pipeline from Borger, Texas, to Phoenix, Arizona, with completion targeted for 2029.
Oman says a spill from the Caroline Bezengi, carrying nearly 1 million barrels of Russian crude, has spread across approximately 390 km² near the Hallaniyat Islands. The incident highlights growing environmental, shipping, insurance and sanctions-related risks surrounding the international movement of Russian oil.
Pickton Gas Storage LLC is a Dallas-based natural gas storage and midstream company redeveloping the Pickton field in northeast Texas into a 35-Bcf high-deliverability storage facility with more than 700 MMcf/d of targeted deliverability. The company reached FID in July 2026 and plans new horizontal storage wells, compressor stations and a 45-mile pipeline connecting the facility to five major pipeline systems at the new Paris Hub, making it a significant near-term infrastructure development account.
The Strait of Hormuz disruption could strengthen U.S. shale economics by supporting higher oil and natural gas prices, improving operator cash flow, and increasing the strategic value of North American production. For OFS companies, the key is watching for that strength to translate into higher rig counts, well permits, completions, and pipeline and facility spending.
Oxy says its Permian strategy is increasingly about “doing more with less”: drilling efficiency is nearly 50% better in wells delivered per rig, allowing the company to plan for three fewer rigs while still bringing 15 more wells online. The 2026 permit file supports that efficiency story with 565 total records, heavily concentrated in Texas and New Mexico, including 197 records across core Delaware Basin counties and 88 across key Midland Basin counties.
