Oil & Gas Briefing - January 31, 2026

📈 Exxon & Chevron Close Out January with Best Month Since 2022

ExxonMobil shares up 15% in January — best monthly performance since October 2022 (Energy Connects)
Chevron on pace for 14% January gain, also its best month since October 2022 (TTNews)
Rally driven by rising crude prices, geopolitical tensions, and improving fundamentals
Both companies reported all-time record production in Q4 2025 from Permian Basin and Guyana offshore (Financial Content)
Exxon full-year production hit 40-year high at 4.7 million boepd; targeting 4.9 million in 2026 (Reuters)
Chevron benefited from $53 billion Hess acquisition integration, gaining partnership stake in prolific Guyana offshore (Fortune)
Exxon plans $27-29 billion CapEx in 2026; $20 billion in planned share buybacks

ExxonMobil CEO Darren Woods says company has technology to extract Venezuela's heavy crude at lower cost, but needs democratic transition before investing (CNBC)
Chevron CEO Mike Wirth says company prepared to increase Venezuela production 50% over next two years under right conditions (NY Times)
Both companies declining new spending in Venezuela while taking wait-and-see approach (Fortune)
Chevron is the only U.S. oil major currently operating in Venezuela under special license
Woods says Exxon has recovered "substantial amount" of money owed after 2007 nationalization (Reuters)

ConocoPhillips executives called toppling of Doyon Rig 26 "The Beast" a "sad day" but expect no material impact to production (Alaska News Source)
Cleanup now in critical phase as crews face extreme Arctic conditions — high winds, near-zero visibility
Estimated spill: ~4,000 gallons diesel and 600 gallons hydraulic oil absorbed by snow-covered tundra
The 9.5-million-pound rig — largest mobile land drilling rig in North America — landed less than 500 feet from tributary to Colville River
8 workers treated and released from local clinics with minor injuries
Unified command established including Doyon Drilling, DEC, EPA, North Slope Borough, and Inupiat Community
ConocoPhillips VP Barry Romberg: "I don't expect any material change to our long-term production forecast"
Doyon 142 identified as substitute rig; all 4 planned exploration wells still on track

Imperial Oil announces it will end production at Norman Wells, NWT in Q3 2026 — closing over a century of oil operations (CBC News)
Closure driven by declining production as facility reaches end of lifespan
Imperial also operates power plant supplying electricity to Norman Wells community — transition plans underway
N.W.T. Premier R.J. Simpson: "Not a surprise given age of facility" and oil prices around $60/barrel
Senior VP Cheryl Gomez-Smith: "Today marks the first of many milestones in our closure journey"
Final reclamation work not expected to start until after 2030
Analyst Doug Matthews: Field was "small potatoes" in Imperial's total production, economically unviable at current prices

Enbridge and State of Michigan agree to let federal cases play out before state court arguments in Line 5 pipeline dispute (Interlochen Public Radio)
Key question — whether case belongs in Michigan or federal courts — will be argued next month before U.S. Supreme Court
Separate case on Michigan's standing to sue Enbridge pending before U.S. Sixth Circuit Court of Appeals
Federal judge decision last month ensures Line 5 can keep moving oil and natural gas liquids during litigation (Law360)
Enbridge argues international pipeline safety regulated solely by federal government
Michigan wants Line 5 shut down or moved from environmentally sensitive Straits of Mackinac
Enbridge proposes encasing pipeline in tunnel beneath the straits

President Trump signed executive order threatening tariffs on any country selling oil to Cuba, declaring national security emergency (ABC News)
Move primarily targets Mexico, the only nation sending meaningful fuel shipments to the island (NY Times)
Commerce, State, Treasury, Homeland Security secretaries to determine specific tariff levels
Order cites Cuba's alliances with Russia, China, Iran, Hamas and Hezbollah
Trump: "Cuba is a failing nation... I think Cuba will not be able to survive"
Comes as Supreme Court may rule on administration's use of emergency powers for tariffs

U.S. drilling activity continues to decline — Permian Basin rig count slipped by 2 to 242 rigs, down 61 from year-ago levels (OilPrice.com)
Occidental Petroleum shares rallied 10.5% YTD in 2026 after declining 7% over past 52 weeks (Yahoo Finance)
Texas RRC released latest production figures showing continued Permian dominance (Rigzone)
EIA projects U.S., Brazil, and Guyana production will exceed demand growth in 2026, potentially pushing Brent to mid-$50s
U.S. supplied 60% of Europe's LNG imports in January, confirming dominant supplier role (Reuters)
Standard Chartered forecasts Brent averaging $62-64/barrel through mid-2026