6-23-26

Texas Energy Report NewsClips

Tuesday June 23, 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 rose slightly early Tuesday, fluctuating as investors show cautious optimism about an end to the conflict in the Middle East.

International benchmark Brent crude futures for August gained 0.36% to $78.18 a barrel. 

West Texas Intermediate futures for August added 0.45% to $74.19 per barrel.

The price of the commodity fell overnight after the U.S. Treasury issued a 60-day license that authorizes the production, delivery and sale of oil from Iran. It allows the importation of Iranian crude to the U.S., and payment for the oil to be made in dollars. The license expires Aug. 21.

However, there were concerns that Iran may use the profits from oil sales to rebuild its military. President Donald Trump was asked on Monday if he could ensure that such a scenario would not play out.

“Well, they’re not supposed to be doing that, so we’ll see,” Trump said at the White House during an executive order signing event. “They’re supposed to use money to buy food for their people, because right now their people are very hungry, and they’re buying it exclusively from us: corn, soybeans,” he added.

 

Top Stories

 

Grist – June 22, 2026

America’s data center backlash is bipartisan — can it stay that way?

This month, Texas Governor Greg Abbott, a staunch supporter of President Donald Trump, unveiled a set of sweeping recommendations to rein in rampant data center development, urging Texas lawmakers to aggressively regulate the tech industry in a state that has a reputation for welcoming new development with open arms. At the same time, New York Governor Kathy Hochul, the Democratic leader of a state known for regulatory restrictions, has declined to say whether she will sign a first-of-its-kind bill passed by her state legislature imposing a one-year moratorium on large-scale data centers.

Welcome to the weird world of data center politics, where the usual partisan scripts around energy and natural resources don’t apply — yet. Facilities housing massive amounts of computing equipment are springing up across the U.S. to quench the tech industry’s unslakable thirst for artificial intelligence. These AI-ready data centers, which consume more energy than the traditional cloud-computing centers that already exist to host and store various aspects of modern digital life, have become a political flashpoint at lightning speed — reshaping local and state politics from coast to coast as Americans grapple with high energy costs, natural resource depletion, and the repercussions of megadevelopment.

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Oil Price – June 22, 2026

Energy Security, Not Climate Goals, Is Now Driving the Clean Power Boom

While ships are beginning to trickle through the Strait of Hormuz after months of near-total closure, it will be a very long time before the effects of this year’s energy crisis fade from the global economy – if they ever do. This latest round of turmoil in global oil and gas markets has catalyzed clean energy adoption to a degree that may permanently alter the global energy landscape, as well as the way that we conceive of energy security and geopolitical strategy.

It is extremely telling that, against the backdrop of the United States and Israel’s war in Iran, demand for solar energy, electric vehicles, and battery-powered energy systems and storage have skyrocketed in the United States and abroad. In the past, energy insecurities have driven a return to fossil fuels as the stalwart, round-the-clock energy sources that we felt we could best depend on. But with three energy crises in four years, global leaders are starting to get wise and change their strategy. This year’s rush for renewable energy infrastructure in the face of market volatility therefore marks a historic sea change in geopolitics and a tipping point for the global energy transition.

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CNBC – June 22, 2026

Chevron to fuel massive Microsoft data center in Texas using natural gas

Chevron will fuel a massive Microsoft data center in West Texas with natural gas under a 20-year agreement, the oil major announced Monday. The data center, called Project Kilby, is expected to consume nearly 2.7 gigawatts of electricity, equivalent to the power needed to run about 2 million homes. Most of the electricity will come from large gas turbines supplied by Chevron’s partner, GE Vernova. Caterpillar will

“There’s really no competition with local electricity consumers,” Jeff Gustavson, president of Chevron new energies, told CNBC. “In fact, over time, as we have excess power, we plan to push that into the grid to help stabilize it.” Project Kilby has not started construction in Reeves County yet. Chevron expects to make a final investment decision on the project later this year. The data center would start receiving power in 2028. Microsoft’s partnership with Chevron comes as it undertakes a massive buildout of data centers to power artificial intelligence applications. It plans $190 billion in capital expenditures this year, 61% more than in 2025.

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Inside Climate News – June 22, 2026

How a Tiny Texas River Agency Plans to Build the Largest Desalination Plant in the Country

Something moved John Byrum. He believed he could succeed where others had not.  The executive director of the Nueces River Authority (NRA)—a small, rural agency based 200 miles from the coast—decided to take up the banner, in 2024, of a desalination plant on Corpus Christi Bay.  Plans to build seawater desalination plants had floundered for years near Corpus Christi, which provides water to a major complex of chemical plants and refineries, and the likelihood of water shortages was growing.

“Texas needed a sustainable supply of water in that area to protect the industry,” said Byrum, a veteran water manager with silver hair and a charming drawl. “This was the way to do it.” The Port of Corpus Christi never secured financing for the multi-billion-dollar project, so Byrum would fund it one piece at a time. He took up collection, not from the region’s large industrial water users like ExxonMobil, OxyChemical and Valero, but from small towns and rural utilities in the hinterlands of San Antonio, 150 miles from the coast, that could theoretically be connected by pipeline to the desalination plant, according to records obtained by Inside Climate News.  The agency collected $6.4 million from 18 cities, towns and utilities since March of last year, records show, while it doled out lobbying and engineering contracts for the Harbor Island desalination project near Corpus Christi.

 

The Latest TERse Tips

Fitch Ratings has assigned an ‘A’ rating to Oncor Electric Delivery Company LLC’s issuance of senior secured notes — Fitch

S&P Global Ratings today assigned its ‘BBB-‘ issue-level rating to Texas-based Western Midstream Operating L.P.’s proposed senior unsecured note — S&P Global

S&P Global Ratings assigned its ‘BBB-‘ preliminary rating to Rio Grande LNG LLC’s proposed senior notes — S&P Global

Kimbell Royalty Partners, LP Monday announced that it has closed the previously announced purchase of mineral and royalty interests held by Mesa Royalties, in a cash and unit transaction valued at approximately $145.9 million — the purchase price for the Acquisition was comprised of $44.0 million in cash and approximately 6.9 million newly issued common units of Kimbell Royalty Operating, LLC valued at $101.9 million — see the press release 

Terrestrial Energy Inc, a developer of small modular nuclear power plants using its Generation IV Integral Molten Salt Reactor, and The Texas A&M University System have signed ground lease and R&D agreements, providing exclusive access and rights to approximately 77 acres at the Texas A&M-RELLIS campus in Bryan, Texas, facilitate testing activities, and cover multiple projects, including the planned commercial IMSR Plant at A&M-RELLIS — see the press release

Devon Energy Provides Updated 2026 Outlook — see the press release

 

Oil & Gas Texas

 

Fort Worth Inc. – June 22, 2026

Permian Basin Leaders Say AI, Technology Will Drive Next Era of Oil Production

The Permian Basin has long been the engine of America’s oil production growth, but industry leaders say the next chapter could be driven as much by artificial intelligence and advanced technology as by drilling rigs and frack crews. Executives representing Texas oil and gas producers point to a wave of innovations — including machine learning, digital twins, advanced reservoir modeling, automation, robotics, and enhanced recovery techniques — that are helping operators produce more oil and natural gas with fewer assets.

According to Texas Oil & Gas Association President Todd Staples, Permian oil production increased 430% between 2015 and 2025, a surge he attributes to both workforce expertise and technology-driven efficiency gains. Industry leaders argue there remains significant upside, noting that only a fraction of oil and gas resources in shale formations are currently recovered.

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Pipeline & Gas Journal – June 21, 2026

Plains Adds Funding for Permian, Canadian Gathering Projects

Plains All American Pipeline and Plains GP Holdings have increased their 2026 growth capital spending forecast, citing continued expansion opportunities across their Permian Basin and Canadian pipeline systems. The company now expects 2026 growth capital expenditures of $400 million to $450 million, up from its previous estimate of approximately $350 million. Maintenance capital spending remains unchanged at roughly $185 million.

Plains said the higher budget will support multiple projects across its Permian long-haul pipeline network, Permian gathering systems and Canadian gathering operations. Additional investments are also planned across the company’s broader Permian footprint, particularly in New Mexico’s Delaware Basin, where gathering volumes continue to increase.

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Santa Barbara Independent – June 17, 2026

California Coastal Commission and Sable Offshore Butt Heads Again

The California Coastal Commission served legal notice on Sable Offshore that unless the embattled oil company sought a coastal development permit for its recently resumed oil production off the coast of Gaviota, the commission would file a cease-and-desist order to force the company to shut down production. This marks a significant escalation in the commission’s ongoing legal and rhetorical warfare with Sable, which restarted oil production off the Gaviota Coast this March after a 10-year production shutdown because of the Refugio Oil Spill of May 2015.

In its letter of notice, commission lawyers used unusually hospitable language, encouraging Sable to take a more cooperative and conciliatory approach in securing the necessary state permits than it has during its past 18 months of legal head-butting with various state agencies — or else. As characterized by the New York Post, Sable responded with a wave of its middle finger to the commission, insisting that the state agency has even less jurisdictional authority now than when the company first started shining it on a year and a half ago. Sable contends the federal government, not the commission or any state agency, now has the first and last word over any oil it pumps from federal waters off the coast of California. That’s because late last December, Sable asked the federal agency in charge of pipeline safety to say just that. That agency did and then issued Sable an emergency permit to allow it to begin pumping.

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Globe and Mail – June 22, 2026

Can Energy Transfer Leverage Its Pipeline Network for Lasting Growth?

Energy Transfer LP is well-positioned to capitalize on growing energy demand through its extensive and diversified midstream infrastructure network, which includes nearly 140,000 miles of pipelines across North America. Its integrated asset base spans natural gas, natural gas liquids (NGLs), crude oil and refined products, creating a significant competitive advantage. The breadth and connectivity of this network enable Energy Transfer to capture production volumes from major basins such as the Permian, Eagle Ford and Marcellus, while efficiently transporting them to key consumption markets and export facilities.

Energy Transfer will benefit from the sustained growth in U.S. energy exports. Its strategically located Gulf Coast infrastructure, including LNG and NGL export terminals, provides direct access to expanding global markets. These assets enhance the firm’s ability to capture international pricing opportunities, support volume growth and improve margins. Currently, Energy Transfer exports energy products to more than 80 countries and territories worldwide, underscoring the global reach of its network.

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Pipeline & Gas Journal – June 22, 2026

Freeport LNG Restarts Gas Intake After Texas Train Outage

Freeport LNG’s export plant in Texas was on track to take in more natural gas on Sunday and Monday after one of its three liquefaction trains shut down on June 19, according to a company report and data from financial firm LSEG. Freeport is one of the world’s most closely watched liquefied natural gas export plants because the shutdown and startup of the facility previously caused massive price swings in global gas markets.

When Freeport shuts, U.S. gas prices usually drop because the plant’s demand for the fuel declines, and when liquefaction trains at Freeport restart, U.S. gas prices usually rise as demand for the fuel increases. That is what happened so far on Monday with U.S. gas futures NGc1 trading up around 2% near a two-week high due in part to rising intake at LNG export plants.

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The New York Times – June 22, 2026

U.S. Oil Is Skipping the Chance to Grab Market Share From the Gulf*

The war with Iran has pulled the American oil industry out of a slump, raising corporate profits and spurring some companies to drill more wells. U.S. oil production is now forecast to grow modestly next year, topping 14 million barrels a day for the first time, according to the Energy Information Administration. The federal agency previously expected output to contract. But the war, paused for now by a preliminary deal, is unlikely to provide enough of a lift for the United States to take significant business from Persian Gulf countries that have been hobbled by the conflict, oil executives and investors said.

There are many reasons for that. The U.S. oil industry, the world’s largest, is dominated by giant companies whose shareholders want steady profits, not the boom-to-bust cycles the business has long been known for. Many executives are also worried about running out of places to drill new wells profitably. And last year’s very low oil prices led companies to shed employees and equipment, making it harder for them to quickly ramp up now. “I am skeptical that the U.S. really has the means or the wherewithal to actually gain share,” J. David Anderson, a Barclays analyst, said. “It’s a combination of: Can they grow? Do investors want them to grow?”

 

Oil & Gas National & International

 

Bloomberg/Yahoo! News – June 22, 2026

US Waives Iran Oil Sanctions as Peace Deal Brings Huge Shift

The US has authorized the sale of Iranian oil and fuels as part of an agreement to end the war against Tehran, a sweeping change after years of economic sanctions. The US Treasury Department issued a wide-ranging 60-day license that allows Iran to sell crude and petroleum products through Aug. 21. The license, which allows payments to be made in US dollars, comes as both sides are engaged in fragile discussions for a lasting peace deal.

The waiver even allows the US to import Iranian crude oil and other petrochemical and petroleum products, opening the door for the first such shipments in decades. The stunning reversal comes after almost a decade of sanctions including a “maximum pressure” campaign to cripple Iran’s economy, implemented by President Donald Trump after he pulled out of the 2015 nuclear deal with Tehran in his first term.

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The Wall Street Journal – June 22, 2026

Iran Can Now Sell Oil. How Fast Can It Ramp Up?*

President Trump’s deal with Iran will allow the Islamic Republic to sell its crude and fuels like diesel on the open market for the first time since 2018. The pact—signed by Trump and by Iran’s President Masoud Pezeshkian this week—would let Iran immediately begin selling its oil, waiving sanctions and paving the way for services such as banking, transportation and insurance to facilitate transactions. Implementation of the deal remains shaky. Continued clashes between Israel and Hezbollah in Lebanon prompted Iran to postpone talks scheduled for Friday, and then to say it was again closing the Strait of Hormuz. The two sides continued, however, to make plans for technical-level talks over the weekend.

The U.S. military confirmed that it lifted a two-month blockade that brought Iran’s loadings down to a trickle, roughly 260,000 barrels a day last month, according to Kpler, a commodities and shipping data provider. In the prior three months that ended in April, Iran was about to load 1.85 million barrels a day on tankers, even if those vessels were trapped inside the Persian Gulf.

Iran has a long way to go to rebuilding its oil sector, parts of which were pounded by U.S. and Israeli forces. A decade ago, when a nuclear pact with the U.S. lifted restrictions on Iran’s oil sales, it was the world’s fifth-largest producer, pumping nearly 4 million barrels a day in 2016. That level was well below what Iran pumped in its oil heyday, before the Islamic revolution in 1979. Crude output peaked at more than 6 million barrels a day for a few years in the 1970s when Western oil companies, including BP and Total, operated there. Sanctions in the 1980s—and the ensuing brain drain from Iran—caused a long decline in its oil output that the industry has never fully recovered from.

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Reuters – June 22, 2026

US proposes to slash costs for energy drillers on federal lands*

The Trump administration on Monday proposed looser rules for oil and gas drilling operations on federal ​lands, including a dramatic cut to clean-up costs ‌for abandoned wells. The moves are aligned with President Donald Trump’s goal to reduce regulations for businesses and make it easier to ​invest in production of domestic fossil fuels.

“These targeted updates ​cut through the red tape that has historically ⁠deterred investment, ensuring our public lands remain a ​reliable engine for economic growth and innovation,” Interior Secretary ​Doug Burgum said in a statement. The Department of the Interior said it would lower the cost of statewide bonds for wells ​to $25,000 per state from $500,000, a level implemented during the Biden ​era.

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The Hill – June 22, 2026

A flawed Iran deal could give investors second thoughts: Nicholas Sargen

News that the U.S. and Iran were about to sign a memorandum of understanding to end their conflict was greeted favorably by investors. The price of oil for West Texas Intermediate tumbled below $80 a barrel, and the U.S. stock market surged to a record high. But it remains to be seen whether investors will remain upbeat amid widespread criticism of the subsequent deal. In announcing it, President Trump said he authorized the toll-free opening of the Strait of Hormuz, as well as the immediate removal of the U.S. naval blockade. Trump then declared: “Ships of the World, start your engines. Let the oil flow!”

The deal will extend a ceasefire for 60 days, during which the two parties will negotiate a final agreement. It creates a phased step-by-step approach that begins with the opening of the strait and postpones issues related to ending Iran’s nuclear capability.  Although it creates incentives for Iran to comply, there are also many ways the deal could unravel. The Wall Street Journal published an annotated analysis of the U.S. proposal that was presented at the G7 meeting in Paris. It reports that many conservatives who supported the war fear Trump is losing at the negotiating table by offering concessions up front.

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Oil Price – June 22, 2026

Hormuz Crisis Sparks a Middle East Pipeline Boom

The blockading of the Strait of Hormuz was something that was never going to happen—until it did, paralyzing a fifth of global LNG and crude oil flows and causing quite a bit of economic pain to both producers and consumers of energy commodities. Now, they are taking care to never let a disruption of that scale happen again.

The most immediate response to Iran’s closure of the strait was switching to alternative pipeline routes for those that had them. Saudi Arabia demonstrated foresight with its East-West pipeline that it used to reroute its export flows from the Persian Gulf to the Red Sea, ramping up to some 7 million barrels of crude daily along the pipe that had previously handled much lower volumes. The only major constraint in that rerouting was the capacity of the loading facilities at Yanbu Port, an issue Aramco will no doubt address soon.

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Associated Press – June 22, 2026

Explosion as Qatar restarts gas export terminal hurts 54 and leaves 18 missing

 

Utilities, Electricity & Renewables

 

KUHF NPR – June 22, 2026

Houston law firm says it plans to sue Tesla over a fatal crash involving a car reportedly on autopilot

The family of a woman who died after a Tesla crashed into her Houston-area home plans to sue the electric car company as well as the driver — who reportedly told authorities the vehicle was in autopilot mode — according to a spokesperson for the law firm hired by the family. A lawsuit had not been filed as of Monday afternoon, but a spokesperson for Houston-based Zehl & Associates said its attorneys were attempting to have it filed by Tuesday. The firm announced Monday that it was enlisted by the family of Martha Avila, 76, who died after the Tesla crashed into her Katy home on Friday night.

The crash occurred in the 21300 block of Rose Hollow Lane, according to a social media post by the Harris County Precinct 5 Constable’s Office. The driver told authorities he was using Tesla’s autopilot mode at the time of the crash, according to the constable’s office.

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Dallas Morning News – June 22, 2026

Judge orders Atmos to preserve evidence from Oak Cliff explosion as survivor sues utility*

A judge on Monday ordered Atmos Energy to preserve evidence from a deadly Oak Cliff gas explosion, hours after a survivor blamed the utility in court filings of multiple failures leading up to the blast. The filings, part of a lawsuit first filed in late May, allege the company failed to repair repeated gas leaks, replace an aging plastic pipeline long linked to leaks and explosions and properly mark underground gas lines before drilling was to take place at the site. In a statement, Atmos disputed that one of the types of pipe material highlighted in the filing as problematic was present at the site, and said it hired a professional line locator to find the gas line before the explosion. The utility did not respond to questions about the restraining order, but had previously said in emails included in court documents that it was abiding by its “preservation obligations.”

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E&E News By Politico – June 22, 2026

House panel sets vote on data center, grid bills

The House Energy and Commerce Committee will take initial steps this week to advance legislation that would make sure ratepayers don’t foot the bill for data center expansion along with measures to address the need to transmit more power across the country to meet rising demand. The Energy Subcommittee, chaired by Rep. Bob Latta (R-Ohio), will vote on a suite of bills including the bipartisan “Ratepayer Protection Act” on Wednesday as part of an electricity policy focused markup, the details of which were shared first with POLITICO.

That headlining bill would codify the principle behind President Donald Trump’s “Ratepayer Protection Pledge,” where Big Tech companies committed to covering their own data center energy costs. Together, the action marks the first time Republican leaders have rallied around concrete proposals to address electricity rate hikes tied to surging data center demand. “This markup will give us the opportunity to advance bipartisan legislation to modernize our grid and lower costs for hardworking American families,” Energy and Commerce Chair Brett Guthrie (R-Ky.) said in a statement.

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Industrial Info – June 17, 2026

North America Could See 53 Utility-Scale Power Kickoffs in June

Industrial Info Resources is tracking 53 utility-scale power-generation projects, valued at more than $19.23 billion, with a target kickoff of June this year in North America. Not every one of these projects will actually begin construction in June, but this analysis narrows down to those projects more likely to kick off in the near term or some months later, resulting in a steady stream of contracting requests for proposals (RFPs). These projects (see list and details here) are considered to have a medium or high probability of kicking off, based on IIR Energy’s analysis of verified project metrics. Dozens more low-probability projects are excluded.

According to Industrial Info Resources data, 56% of the generation (6.8 GW) is attributed to natural gas, followed by solar at 26% (3.1 GW) and wind at 17% (2.1 GW). Most of the power projects are in the power regions of ERCOT covering Texas and MISO in the Midwest. See accompanying charts here and at the end of this article. This IIR Energy analysis focuses on capital investment and excludes maintenance. The average investment per project is $357 million. The portfolio skews toward new developments, with grassroot projects making up the largest portion.

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The Conversation – June 17, 2026

Energy costs are high and unaffordable – what utilities, governments, communities and you can do to help save consumers money

For many Americans, energy bills are becoming increasingly unaffordable. Energy prices increased approximately 30% on average from 2021 to 2026. In some places, the rates of increase have been much steeper. In the Mid-Atlantic and eastern Midwest region where several of us live, the regional electricity grid is run by PJM Interconnection, and power prices in the first quarter of 2026 were 76% higher than the same period in 2025.

These rising utility costs are a shock to many people, including those already having a hard time paying for the energy they need. In 2024, 1 in 3 American households reported struggling to pay their energy bills, and 15.1 million homes were disconnected from their electricity or gas services because the residents couldn’t pay their bill. Energy insecurity is a pervasive and potentially dangerous predicament for these millions of households, and a growing challenge for America as energy bills rise.

 

Regulatory

 

JD Supra – May 27, 2026

Data Center Growth Brings Water Use into Sharper Focus in Texas: Pillsbury

As data center development continues to expand—driven by demand for artificial intelligence, cloud computing and other digital infrastructure—the use and availability of water have emerged as a key consideration. As discussed in our prior article, the scale of water use associated with large data center operations is drawing increasing scrutiny as a primary policy concern for data centers.

While factors such as the size of the facility, the design of its cooling system and local climate conditions will affect the water volumes necessary for operations, large data centers may require as much as five million gallons a day, comparable to the municipal demand of smaller cities. As a result, water sourcing and reuse are becoming central to both operators and local, state and federal government officials tasked with regulating and legislating on these issues.