Week In Review: Energy Industry News Jan. 19-25, 2026

• Jan 21 – IEA warns of deep first‑quarter surplus:

  • The International Energy Agency projected a massive 4.25 million barrels per day surplus in Q1 2026 due to strong OPEC+ output and sluggish demand.

  • With supply likely outpacing consumption, prices may remain capped unless geopolitical disruptions cut production; operators should expect looser fundamentals when planning hedging and procurement.

• Jan 21 – Force majeure at Kazakhstan’s Tengiz & Korolev fields lifts prices:

  • Brent and WTI futures rose about 0.5% after output at Kazakhstan’s Tengiz and Korolev fields was halted for 7–10 days, and Venezuelan exports remained slow to recover.

  • Even small supply interruptions can support prices in an otherwise soft market; contingency planning for remote camps and logistics should factor in intermittent supply shocks.

• Jan 21 – Renewables overtake fossil fuels in EU power mix: 

  • Data from Ember showed wind and solar supplied 30% of EU electricity in 2025, surpassing fossil fuels at 29%; solar generation expanded more than 20% for the fourth year.

  •  Europe’s accelerating energy transition will shape global demand for oil and gas; suppliers should anticipate long‑term structural decline in EU fossil‑fuel consumption.

• Jan 22 – Trading houses accelerate Venezuelan exports:

  • Trafigura and Vitol ramped up crude and fuel‑oil shipments under a U.S.-backed supply deal, selling cargoes to Spain’s Repsol and preparing deliveries to U.S. refiners. They are paying about $15 per barrel below Brent, half the previous sanction discount.

  • Fast‑tracked exports may help Venezuela restore output and ease heavy‑crude shortages, while improved pricing underscores the advantage of U.S. marketing—midstream operators should monitor volumes as more barrels hit the market.

• Jan 22 – U.S. Energy Secretary calls for doubling oil supply:

  • At Davos, U.S. Energy Secretary Chris Wright said the world needs to more than double oil output to meet growing demand and criticized European and Californian energy policies; he touted U.S. natural gas as a replacement for Russian supplies.

  • The rhetoric underscores U.S. ambitions to expand fossil‑fuel dominance despite energy‑transition headwinds; policy support could encourage upstream investment and LNG export infrastructure.

• Jan 23 – Winter Storm Fern threatens U.S. output:

  • A severe cold front sweeping the Midwest and Northeast could trim U.S. crude output by 300 kbd and cut natural‑gas supply by up to 86 bcf over two weeks. Grid operators scrambled for extra power as snow and ice threatened infrastructure.

  • Weather‑driven disruptions highlight the need for flexible supply chains and resilient workforce housing; energy firms should expect volatility in gas prices and higher diesel demand.

• Jan 23 – Russia shifts crude sales toward China:

  • Russia is set to export nearly 1.5 million bpd of crude to China in January, up from 1.1 million bpd in December, as India and Turkey cut back. Discounts widened to $10–12 per barrel, making Urals attractive to Chinese refiners.

  • Changing trade flows signal that sanctions continue to redirect Russian barrels eastward; midstream and logistics planners should adapt to evolving crude streams and monitor discount trends.

• Jan 23 – California sues over pipeline restart:

  • California’s attorney general filed suit challenging the Trump administration’s emergency permit allowing Sable Offshore to restart two pipelines, arguing it undermines state climate rules.

  • State‑federal conflicts over pipeline authority can delay infrastructure projects; operators must navigate regulatory risk when planning expansions in environmentally sensitive states.

• Jan 24 – Libya inks a $20 billion production deal:

  • Libya’s Waha Oil Co. signed a 25‑year deal with TotalEnergies and Conoco Phillips to increase capacity by 850 kbd and generate $376 billion in net revenue; MOUs were also signed with Chevron and Egypt’s oil ministry.

  • The deal could boost North African supply mid‑decade, creating opportunities for service firms but adding competition for other heavy‑crude exporters.

• Jan 24 – U.S. moves to repair Venezuelan wells: 

  • Washington opened talks with Chevron, Halliburton, SLB, and Baker Hughes to quickly restore Venezuela’s production by repairing wells and equipment.

  • Rapid intervention could add several hundred thousand barrels per day of supply in the medium term; investors should watch for service‑company contracts and consider how a sudden Venezuelan rebound could weigh on heavy‑crude margins.

Check back daily for updates on the latest news for the energy industry and insider insights.