Texas Energy Report NewsClips
Tuesday May 5, 2026
Asterisk (*) denotes news stories that may be inaccessible because portions are behind a paywall
Good morning! Here are today’s Texas Energy Report NewsClips
Oil prices eased more than 1% on Tuesday after climbing by as much as 6% in the previous session on signs the U.S. Navy is loosening Iran’s grip on the Strait of Hormuz, potentially opening up supply from the Middle East.
U.S. West Texas Intermediate (WTI) crude fell $2.02, or 1.9%, to $104.40, after gaining 4.4% in the previous session.
Brent oil futures for July fell $1.22, or 1.1%, to $113.22 per barrel at 0323 GMT after settling up 5.8% on Monday.
The U.S. on Monday launched a new operation aimed at reopening the strait to shipping. Maersk (MAERSKb.CO), opens new tab later said the Alliance Fairfax, a U.S.-flagged vehicle carrier, exited the Gulf via the strait accompanied by the U.S. military, easing some supply disruption fears.
“The successful escorted exit of the Maersk-operated vessel has helped ease some immediate supply disruption fears,” said Tim Waterer, chief market analyst at KCM Trade.
“It shows that limited safe passage is possible under current conditions and helps chip away at some of the worst-case supply disruption fears. However, it’s still very much a one-off event rather than a full reopening,” he said in an email.
Top Stories
E&E News By Politico – May 4, 2026
AI boom sparks rare warning of ‘significant risks’ to grid
Related: Utilities pledge affordability while spending billions on grid upgrades — E&E News By Politico*
North America’s grid watchdog is slated to issue its highest level of warning Monday about threats to the power system from large data centers, underscoring the challenges facing utilities and grid operators grappling with a surge in electricity demand. The move signals a new chapter where major technology companies like Amazon and Microsoft may face stricter rules on how they use power. The Level 3 alert from the North American Electric Reliability Corp., the grid’s not-for-profit security monitor, was developed after reports of data centers abruptly going offline in Virginia and Texas, raising concerns about blackouts.
“Computational loads, such as data centers, could increase exponentially in the next four years,” NERC said in a draft of the alert, adding that “significant risks” to the bulk power system “need to be addressed through immediate industry action.” Lee Shaver, a senior energy analyst at the Union of Concerned Scientists, called NERC’s action a “big deal,” noting it is only the third time in history that the organization has issued a Level 3 alert.
________________________________
Yahoo! News – May 4, 2026
ConocoPhillips Q1 2026 earnings fall 21% to $2.2bn
ConocoPhillips has reported first-quarter 2026 (Q1 2026) earnings of $2.2bn, a 21% decline compared to $2.8bn in the same quarter of the previous year. Earnings per share (EPS) for the US-based oil and gas major in the reported quarter ended 31 March were $1.78, down 20% compared to $2.23 in Q1 2025.
Adjusted earnings for Q1, excluding special items mainly related to pending claims, settlements, and a loss on a contingent liability measurement, were $2.3bn, or $1.89 per share. This compares with $2.7bn, or $2.09 per share, in the same period last year. ConocoPhillips’ total production for the reported quarter was 2.31 million barrels of oil equivalent per day (mboe/d), 80,000 barrels of oil equivalent per day (boepd) less than in Q1 the previous year.
________________________________
Oil Price – May 2, 2026
Inside BP’s Dramatic Pivot Back to Oil and Gas
As she sat down to pen her first email to BP’s 100,000 staff, Meg O’Neill opted against sparing the radical rhetoric. To the American oil and gas thoroughbred, who had just become the first ever female chief executive of a British energy major, there was only one course available to her new employer should it wish to avoid extending its more-than-decade-long spell of financial mediocrity.
“Right now, we’re operating in an environment of significant complexity: geopolitical tension; conflict; rapid technological change; and shifting global energy demand,” she told BP employees. “I’m committed to providing clear direction and consistency so we can move forward together with confidence.”
________________________________
Wired – April 22, 2026
New Gas-Powered Data Centers Could Emit More Greenhouse Gases Than Entire Nations
New gas projects linked to just 11 data center campuses around the US have the potential to create more greenhouse gases than the country of Morocco emitted in 2024. Emissions estimates from air permit documents examined by WIRED show that these natural gas projects—which are being built to power data centers to serve some of the US’s most powerful AI companies, including OpenAI, Meta, Microsoft, and xAI—have the potential to emit more than 129 million tons of greenhouse gases per year.
As tech companies race to secure massive power deals to build out hundreds of data centers across the country, these projects represent just the tip of the iceberg when it comes to the potential climate cost of the AI boom. The infrastructure on this list of large natural gas projects reviewed by WIRED is being developed to largely bypass the grid and provide power solely for data centers, a trend known as behind-the-meter power. As data center developers face long waits for connections to traditional utilities, and amid mounting public resistance to the possibility of higher energy bills, making their own power is becoming an increasingly popular option. These projects have either been announced or are under construction, with companies already submitting air permit application materials with state agencies.
The Latest TERse Tips
An oil terminal in the United Arab Emirates city of Fujairah was hit in an aerial attack amid an up-tick of Iranian strikes on Monday in the vicinity of the Strait of Hormuz — the strike on the VTTI facility — jointly owned by IFM Global Infrastructure Fund, Vitol Group and Abu Dhabi National Energy Co. — was confirmed by people familiar with the matter, who asked not to be identified — Bloomberg*
Bulk carrier attacked near Strait of Hormuz, UK military reports — the U.K. military’s Maritime Trade Operations center said the crew was believed to be safe, and no environmental damage was reported — WBIR
Israel is on high alert with Ben Gurion Airport preparing for potential closures and the relocation of civilian aircraft due to escalating regional conflicts, several sources reported late Monday night
ONE Gas, Inc. on Monday announced its first quarter 2026 financial results, affirmed its 2026 financial guidance and declared its quarterly dividend — see the press release
S&P Global Ratings lowered its rating two notches to ‘A’ from ‘AA-‘ on Corpus Christi, Texas’ outstanding utility system revenue debt and placed the rating on CreditWatch with negative implications — S&P Global
ExxonMobil expects the next two trains at Golden Pass LNG to reach key construction milestones over the next year, positioning the Texas export project to add substantial US supply as global natural gas markets tighten — Natural Gas Intelligence*
Entergy Corporation is considering expanding its use of nuclear energy in Arkansas, Chairman and CEO Drew Marsh said Monday, while Entergy Arkansas President and CEO Laura Landreaux pledged that new data centers will pay for their fair share of the costs — TB&P
A Russian hacker accused of damaging critical oil and gas infrastructure in multiple countries, cinluding the US, has agreed to plead guilty in a U.S. federal case that could carry a sentence of up to 27 years in prison — Kyiv Independent
Crescent Energy Company on Monday announced financial and operating results for the first quarter 2026 — see the press release
The PJM Interconnection Board of Managers has appointed David Mills to serve as PJM’s fifth permanent president and CEO effective May 1, 2026 — Mills has served on the PJM Board of Managers since 2021 and as chair of the PJM Board since May 2025 — he has also served as Interim President and CEO of PJM since January 2026 — American Public Power Association
EagleRock Land, which collects royalties and fees from energy production on land owned in the Permian Basin, announced terms for its IPO on Monday — the Houston-based company plans to raise $320 million by offering 17.3 million shares at a price range of $17 to $20 — Renaissance Capital
Fervo Energy, which is developing next-generation geothermal energy projects, announced terms for its IPO on Monday — the Houston-based company plans to raise $1.2 billion by offering 55.6 million shares at a price range of $21 to $24. Cornerstone investors intend to purchase $350 million worth of shares in the offering (28% of the deal) — Renaissance Capital
Oil & Gas Texas
Reuters – May 4, 2026
US extends protection of Venezuela-owned Citgo from creditors*
The United States has extended a license that protects Venezuela-owned refiner Citgo Petroleum from creditors through June 19, according to a statement on the U.S. Treasury Department’s website on Monday. The general license, issued by the Office of Foreign Assets Control, is meant to encourage investment and boost oil output in Venezuela. It also reinforces U.S. protection of Houston-based Citgo and its parent companies overseas, which are the crown jewels of Venezuela’s foreign assets. Citgo is the eighth-largest U.S. refiner.
________________________________
Zacks/Yahoo! News – May 4, 2026
Viper Energy (VNOM) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended March 2026, Viper Energy Partners (VNOM) reported revenue of $511 million, up 108.6% over the same period last year. EPS came in at $0.55, compared to $0.54 in the year-ago quarter. The reported revenue represents a surprise of +0.92% over the Zacks Consensus Estimate of $506.33 million. With the consensus EPS estimate being $0.43, the EPS surprise was +27.91%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company’s financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock’s price performance more accurately.
________________________________
Reuters – May 4, 2026
Williams beats quarterly profit estimates on higher natural gas demand*
U.S. pipeline operator Williams Companies surpassed Wall Street expectations for first-quarter profit on Monday, helped by higher service revenue as the company expanded capacity amid increasing demand for natural gas. The Tulsa, Oklahoma-based firm has spent the last year positioning itself as a leading energy provider to companies building out artificial intelligence infrastructure, supplementing its traditional pipeline business with new power-generation capabilities.
During the quarter, the company upsized the Power Express project on the Transco pipeline, increasing its capacity to 750 million cubic feet per day, a major expansion of the network to address energy demands from the growing data center market in Virginia. Williams’ service revenue rose to $2.21 billion during the first quarter from $2 billion a year earlier, also benefiting from Transco’s higher net rates.
________________________________
Reuters – May 4, 2026
Chevron CEO says shortages in oil supply will begin appearing*
Chevron Chairman and CEO Mike Wirth said on Monday that physical shortages in oil supply would begin appearing around the world because of the closure of the Strait of Hormuz, through which 20% of global crude supply passes. Economies will begin shrinking, first in Asia, as demand adjusts to reduced supply with the strait still closed because of the U.S.-Israeli war with Iran, Wirth said during a discussion sponsored by the Milken Institute.
“We will start to see physical shortages,” Wirth said, noting that surplus supply in commercial markets, tankers in so-called shadow fleets avoiding sanctions, and national strategic reserves were being absorbed. “Demand needs to move to meet supply,” he said. “Economies are going to have to slow.” Asia is most heavily dependent on the Gulf’s oil production and refineries, with Europe likely to be affected next, Wirth said.
________________________________
Bloomberg – May 4, 2026
Diamondback Lifting Shale Oil Output Immediately on Rally*
Diamondback Energy Inc., one of the biggest shale oil producers, is boosting crude output in response to rising prices caused by the Iran war. The company that operates in the Permian Basin of West Texas and New Mexico is pumping more than 520,000 barrels a day, 3% more than its original full-year guidance, and plans to sustains those levels, Chief Executive Officer Kaes Van’t Hof wrote in a letter to shareholders on Monday.
“We believe there is a legitimate supply-demand imbalance and that the associated price signal is the catalyst to begin to grow production,” he wrote. “Because of our positioning, our preparation and this price signal, we are bringing incremental barrels to the market immediately.” Van’t Hof’s comments come just days after supermajors Exxon Mobil Corp. and Chevron Corp. told investors they wouldn’t significantly alter production plans in response to the unprecedented war-drive disruption to Persian Gulf energy supplies. Diamondback isn’t the first shale specialist to see the Middle East conflict as an opportunity to bolster production. Billionaire Harold Hamm’s Continental Resources Inc. made a similar pledge last month.
________________________________
Marketplace – May 1, 2026
Amid war, business booms at America’s biggest energy port
Both dolphins and ships carrying crude oil, jet fuel and other oil and gas products cut through the turquoise waters of the Corpus Christi ship channel. The port has never been busier. “March was the busiest month in the history of the Port of Corpus Christi,” said CEO Kent Britton. “And by all accounts, April is actually going to be even busier.” This deepwater ship channel connects the Permian Basin, the engine of the U.S. oil and gas industry, to the global energy marketplace. And business is booming.
“So our customers here have overproduced to fill a gap for what’s not being allowed to flow through the Strait of Hormuz,” Britton said. During the most significant oil and gas supply disruption in history, the flurry of activity at this port matters. Corpus Christi ships out about 2.5 million barrels a day, roughly half of all U.S. crude oil exports.
Oil & Gas National & International
Reuters – May 4, 2026
Goldman says global oil stocks approaching eight-year low, depletion speed a concern*
Global oil stocks are approaching their lowest level in eight years, Goldman Sachs said on Monday, warning that the speed of depletion was becoming a concern as supplies through the Strait of Hormuz remained restricted. Oil prices jumped about 6% on Monday after Iran hit several ships in the Strait of Hormuz and set a UAE oil port ablaze, as President Donald Trump’s attempt to use the U.S. Navy to free up shipping provoked the biggest escalation since a ceasefire was declared four weeks ago.
The bank estimated total global oil stocks stood at 101 days of global demand and could fall to 98 days by the end of May. Goldman added that while total global stocks are “unlikely to hit minimum operational levels this summer, the speed of depletion and supply losses in some regions and products is concerning.”
________________________________
S&P Global Platts – May 4, 2026
Mexico’s upstream sector shows managed decline amid falling drilling activity
Mexico’s upstream sector is entering a phase of managed decline, as a sharp drop in drilling activity, weaker exploration outcomes and a shrinking well base point to mounting pressure on future production capacity, according to newly released operational data. Total wells initiated in 2025 fell to 78, down from 138 in 2024 and 217 in 2023, with both development and exploratory drilling contracting sharply, Pemex said in its 2025 annual filing to the US Securities and Exchange Commission.
Only 18 exploratory wells were initiated in 2025, down from 61 two years earlier, while discovered fields dropped to just two from eight in 2024, Pemex said in the filing. Although the exploratory success rate rose to 39%, the improvement reflects a smaller number of wells rather than a step-change in geological outcomes, with productive exploratory wells declining to seven from 17 in 2023, the report said.
________________________________
Fortune – May 4, 2026
Call it the FedEx of energy. Calgary-based Enbridge has grown into the largest oil and gas pipeline company in the world by market cap—$120 billion—delivering vital energy supplies across the globe. Just don’t simplify Enbridge to only putting pipe in the ground. With assets that span renewables to utilities, Enbridge boasts a broad array of businesses that’s matched by the lofty role it sees itself playing on the world stage. Enbridge—whose name is a contraction of energy bridge—is committed to keeping the economic and cultural bonds between North America’s neighbors strong and healthy; it doesn’t hurt that CEO Greg Ebel, a dual citizen, is an unofficial diplomatic whisperer to the White House and Canadian Prime Minister Mark Carney helping to ease tensions between the two.
Enbridge is positioning itself to help power the AI data center boom and to lead oil and gas exports for the world as the war in the Middle East places more emphasis on secure American supplies—capturing all the key facets of the industry’s growth. For good measure, Enbridge even develops offshore wind farms in Europe. Apart from becoming the preeminent pipeline player, Enbridge is the fourth-largest Canadian company by market cap, trailing Shopify. Enbridge ranks one spot above Netflix in the Fortune Global 500. And, to complete the delivery circle, Enbridge exceeds both FedEx and UPS in market cap. In fact, its market value is on par with Big Oil giant BP. Splitting his time between Calgary and Houston, Ebel has helped Enbridge expand to 43 U.S. states and eight of the 10 Canadian provinces. Enbridge also pipes U.S. natural gas directly to Mexico. Enbridge moves nearly one-third of North American oil and 20% of U.S. natural gas.
Oil Price – May 2, 2026
Pemex Faces a Reckoning After Major Oil Spill
Following a recent oil spill, Mexico’s state-owned oil firm Pemex has come under fire again, particularly due to its poor health and safety track record. The highly indebted oil firm has been repeatedly criticised over the years for not doing enough to improve safety standards, and the latest spill has, once again, drawn attention to its practices.
During the first half of February, Pemex repaired a pipeline running from one of the oil platforms in the Cantarell field to the Dos Bocas plant, after identifying a slick of suspected oil covering 19 square miles. After its detection, the oil slick spread more than 370 miles along the Gulf of Mexico coast, from Tabasco through Veracruz to its northern border with Tamaulipas. Coastal communities that depend on fishing and tourism said the spill negatively affected their earnings and caused extensive environmental damage.
________________________________
Reuters – April 28, 2026
Oil executives’ real battle is terminal decline: Yawen Chen*
Meg O’Neill has taken charge of BP at a time when her strategy looks unusually straightforward. Surging oil prices and a strong set of results have handed the $125 billion oil major’s new chief executive a supportive backdrop. The catch is that markets are not convinced it will last. A geopolitical jolt has lifted crude prices and energy stocks alike. BP’s shares have risen about 40% this year, alongside peers like TotalEnergies and it beat expectations by a wide margin: net income of $3.2 billion came in about a fifth ahead of forecasts. Refining and trading led the way, benefitting BP from huge commodity price swings triggered by the Iran conflict.
The future playbook looks simple from here. BP is focusing investment on upstream production, trimming costs and starting to reduce hybrid debt. Jefferies analysts expect its troubled balance sheet to improve notably by year-end, possibly overshooting the company’s own debt reduction target. In a tight market, pumping more oil and returning cash to shareholders looks like the obvious call. Yet the share price reflects a different question: what happens after this cycle? In a standard discounted cash flow model, much of a company’s worth sits in its “terminal value” — the free cash flows expected beyond the next few years. Run that logic in reverse, starting from today’s valuation, and it reveals what sort of long-term growth investors are implicitly assuming. For BP, things look underwhelming. Breakingviews calculations suggest the value today of the group’s free cash flows to 2030, using analyst estimates compiled by Visible Alpha and a 7% discount rate that reflects the wider sector’s weighted average cost of capital, is $75 billion. Given the group’s overall value including debt is $175 billion, that implies BP’s terminal value is worth $100 billion today, or $142 billion in five years’ time. Making the numbers work implies that free cash flows after 2030 shrink 4% a year.
Utilities, Electricity & Renewables
KUT – May 4, 2026
Does not compute: 4 Austin-area community leaders consider the future of data centers
Across Hays and Williamson counties, community activists like [Carrie D’Anna, a Taylor resident and community organizer] have effectively ended some data center projects over such water and electricity concerns. D’Anna said she’s noticed data center projects “strategically” planned out of the public eye. She created a Facebook group to keep people informed about the BPP data center proposal in Taylor, and with the help of other plugged-in community members, passed out flyers protesting a data center development in Hutto.
D’Anna said people in her neighborhood are “terrified” of how data centers could reshape Taylor. “People who are building data centers, union workers, electricians, they want to sign our petition because they see the value in guidelines,” D’Anna said. “They love the technology. We don’t like how it’s being capitalized. We don’t like how it’s replacing us.”
________________________________
Oil Price – April 26, 2026
The Green Hydrogen Dream Is Slipping Further Out of Reach
Green hydrogen gained significant traction during the post-pandemic period, as governments worldwide pledged to decarbonise their economies and energy companies looked to diversify their portfolios. Hydrogen produced using renewable energy as an input looked like the best way to provide a clean alternative to traditional fuels, as it can be used for a range of applications, including decarbonising hard-to-abate industries. However, many green hydrogen projects are now lagging behind as energy companies scale back their climate plans and governments fail to achieve decarbonisation goals.
Green hydrogen is produced using renewable electricity to power an electrolyser, which splits water into hydrogen and oxygen. The gas is then burned to produce power, emitting only water vapour and warm air, making it carbon-free. This contrasts with grey and blue hydrogen production, which are powered by natural gas.
________________________________
Politico – May 4, 2026
A grid spending spree — with no hangover?
Utilities are pledging to keep power bills from rising — even as they spend billions of dollars on grid upgrades. The new era of affordability politics was apparent in a series of earnings calls last week, as utility CEOs laid out plans to build new power plants, poles and wires — some to accommodate the boom in energy-hungry data centers. Such costs are often passed on to consumers — in the form of higher power bills — but that’s not the message utilities are sending to Wall Street analysts, writes Jeffrey Tomich.
Take DTE, a utility that serves Detroit and the surrounding area. The utility plans to invest $30 billion over the rest of the decade on more power generation and transmission. CEO Joi Harris told analysts and investors last week that the move would actually keep prices lower for residential customers because it would allow the grid to accommodate more data centers.
________________________________
Louisiana Illuminator – April 30, 2026
Data centers, pricey power await candidates for Public Service Commission
This year’s elections for two replacements on the state Public Service Commission unfold as utility regulation in Louisiana approaches a crossroads. The rapid development of artificial intelligence data centers and their high demand for electricity have put a spotlight on the regulatory board. The current commissioners attempted to strike a balance between granting utilities approval to meet the immense power needs of AI infrastructure while ensuring the cost of building new power plants isn’t eventually borne by household and small business ratepayers.
This data center dilemma awaits the election winners, as does the perennial quest for lower utility bills and the pressing need for more resilient and reliable power transmission networks. These issues have prompted increased discussion of utility deregulation in Louisiana, where Entergy and Cleco, both stockholder-owned utility corporations, provide power to the large majority of customers. The alternative would be to open the door to more utility competition, with Texas as an example of an open marketplace.
________________________________
ProPublica – April 24, 2026
Unfounded Health Concerns Are Powering a Solar Backlash
Kevin Heath had hoped there would be solar panels by now on his family farm in southeastern Michigan, roughly 50 miles outside Detroit. About six years ago, he agreed to lease part of his land for a solar project. It would help him pay off debt and keep the farm in the family, he said. But the opportunity was thwarted when, in 2023, following pushback from some local residents, his township passed an ordinance that banned large solar projects from land zoned for agriculture.
In the fight over solar development, Heath said he was bombarded by just about every argument from critics — including claims that solar fields are a health hazard. “I’ve heard them say that, but I’ve never heard anybody prove that,” Heath said. “The health and safety issue,” he added, “that is just a joke.”
Regulatory
JD Supra – April 29, 2026
After decades of relatively static consumption, U.S. electricity demand is sharply rising. The scale of this demand is hard to overstate: In Texas, the Electric Reliability Council of Texas (“ERCOT”) estimated in 2025 that 205 gigawatts of “Large Load”—defined as customers with a demand threshold of 75 MW —are currently in the ERCOT interconnection queue, of which approximately 70% is attributable to data centers alone. The queue held just 56 gigawatts only one year prior, representing an increase of more than 227% in a single year.
This rapid load growth is placing pressure on both the transmission system and resource adequacy. In some instances, new Large Loads outpace available transmission capacity, requiring customers to wait for transmission system upgrades. In others, demand growth is exceeding anticipated additions of generation Co-locating Large Loads with generation has emerged as one approach to mitigate both transmission constraints and resource adequacy challenges. Consistent with this trend, natural gas is forecasted to become “the major source of generation and the fuel of choice for data centers and manufacturers, supplying around 40% in both 2026 and 2027[.]” Texas alone has an estimated 58 gigawatts of natural gas generation in various stages of planning and construction, with nearly half of those projects dedicated exclusively to data center campuses rather than serving the broader ERCOT system.