Oilfield News Weekly Brief

Reporting Period: August 10–16, 2026
This week’s confirmed oilfield developments included a rise in U.S. and Canadian drilling activity, a new Gulf of Mexico offshore lease sale, the approval of a $5 billion U.S. pipeline system, $8.2 billion of ADNOC Gas EPC awards, continued disruption around the Strait of Hormuz, and the effective date of updated U.S. offshore technical standards.

 

Weekly Summary

 

U.S. Shale and Drilling Activity

The U.S. active rig count increased by five rigs to 593 for the week ending August 14, according to Baker Hughes. The total was 54 rigs above the comparable week in 2025 and represented the highest level reported since March 2025. (Baker Hughes Rig Count)

Oil-directed rigs increased by one to 455, while natural-gas rigs increased by four to 128. Miscellaneous rigs remained at 10.

Baker Hughes describes its active rig count as a leading indicator of demand for equipment and services used in drilling, completing, producing and processing hydrocarbons.

 

Gulf of Mexico Offshore

The U.S. Department of the Interior held another Gulf of Mexico oil and gas lease sale on August 12. The auction generated approximately $82.7 million in high bids, compared with about $47 million in the previous March sale.

The government offered about 81 million acres covering 15,100 blocks, with water depths ranging from approximately 9 feet to more than 11,100 feet. Sixteen companies submitted 69 bids covering about 330,000 acres.

Winning companies included affiliates of BP, Chevron and Shell. Reuters reported that offshore production currently accounts for roughly 15% of total U.S. oil production.

 

Canada

Canada’s active rig count increased by three to 219 rigs on August 14. The total was 36 rigs higher year on year, according to Baker Hughes.

The combined U.S. and Canadian active rig fleet therefore reached 812 rigs during the reporting week.

 

 

 

$5 Billion Western Gateway Pipeline Approved

Phillips 66, Kinder Morgan and HF Sinclair confirmed on August 11 that they will proceed with the Western Gateway Pipeline, with an estimated enterprise value of approximately $5 billion.

The proposed system will extend approximately 1,300 miles and have design capacity of 230,000 barrels per day, connecting product supply from St. Louis and Gulf Coast origins with Arizona and California. Completion is targeted for 2029.

Phillips 66 will hold 49.9% of the venture, Kinder Morgan 35.1% and HF Sinclair 15%. Existing pipelines will be reversed or incorporated into the system, and the project is primarily supported by 10-year take-or-pay contracts.

 

UAE: ADNOC Gas Confirms $8.2 Billion EPC Program

ADNOC Gas confirmed $8.2 billion of EPC contracts for phases two and three of its Rich Gas Development program.

Wison Engineering will execute Phase 2, including a new natural-gas processing unit at the Habshan complex. Tecnimont, part of Maire, will execute Phase 3, including a new natural-gas-liquids fractionation unit at Ruwais.

ADNOC Gas stated that it expects to invest approximately $28 billion between 2026 and 2030 in its expansion program.

The company reported second-quarter net income of $665 million, down 52% year on year, following sales and transportation disruption associated with the Strait of Hormuz.

 

UAE and Qatar-Linked Offshore Gas Development

On August 13, BP, ADNOC-owned XRG and Qatar-based UCC Holding secured rights to develop the second phase of Venezuela’s offshore Loran gas field.

BP will operate the development, with the three partners holding equal working interests. The Phase 2 license covers resources of up to 4 trillion cubic feet of gas, while total Loran reserves are estimated at approximately 7.3 Tcf.

Loran extends toward the Shell-operated Manatee field in Trinidad and Tobago. Together, the fields contain approximately 10 Tcf of recoverable gas resources.

 

Saudi Arabia

Saudi Aramco’s 400,000-bpd Jazan refinery restart was postponed to August 30 following attacks on the facility.

No new material Aramco ESP, OCTG, drilling or completion contract was publicly confirmed during August 10–16. Previously awarded Jafurah unconventional gas, Zuluf oil and Fadhili gas expansion programs remained under execution.

 

Qatar and Regional Energy Transportation

No new material North Field EPC or drilling award was identified during the reporting week.

Shipping through the Strait of Hormuz remained disrupted through August 16 as diplomatic negotiations remained unresolved.

On August 14, the UAE reported another attack on an ADNOC-operated vessel transiting the Strait. No injuries were reported. UAE authorities described it as the third attack involving ADNOC vessels within approximately one week.

 

Key Weekly Indicators