This week’s energy headlines spotlight Appalachian outperformance, rapid shale growth, strategic portfolio reshaping, expanded midstream control, and momentum toward a new U.S. LNG export build. Here are five stories that stood out:
Top Stories
EQT logs record D&C pace as compression lifts output EQT set new drilling and completion records, cut well costs by 13% year-over-year and exceeded sales expectations with compression upgrades that boosted base production. The performance reinforces EQT’s position as the region’s productivity leader.
Infinity to hike output 70% in 2026 after 46% growth in 2025 Infinity expects production to rise about 70% in 2026 after a nearly 50% jump last year, driven by extendedreach laterals and rapid cycle times across the Marcellus and Utica. Recent acquisitions from Antero support the program, with management emphasizing efficiency as the key enabler.
TXO & Exxon selling Permian-San Juan JV Cross Timbers for $200MM TXO’s Permian–San Juan joint venture, Cross Timbers Energy, agreed to sell assets for $200 million to multiple private buyers. TXO anticipates roughly $100 million in net proceeds, allowing it to retire a deferred payment tied to its Williston acquisition and refocus drilling on core basins.
EQT increases MVP stake, upsizes Clarington Connector EQT increased its stake in MVP and the MVP Boost expansion, strengthening its position in a transmission corridor that moved more than 2.1 Bcf/d during peak January storm demand. The company also upsized its Clarington Connector to serve rising Midwestern and datacenterdriven gas markets.
Glenfarne brings in Kiewit for EPC of 4 mtpa Texas LNG Glenfarne executed a lumpsum turnkey EPC agreement with Kiewit for its 4 mtpa Texas LNG project. Backed by a $5.7 billion financing package and fully contracted capacity, the project moves closer to FID and further positions Brownsville as a growing U.S. LNG export hub.
Additional Stories
Also this week: SLB OneSubsea agreed to acquire Envirex Group, Baker Hughes issued notes to support its Chart Industries acquisition, Hydrostor partnered with Hatch on the Willow Rock storage project, Energean entered Angola through a Chevron deal, and TotalEnergies brought its Lapa South West tieback online in Brazil.
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The recent escalation in the Middle East has triggered the most significant disruption to energy flows in decades. With key shipping lanes facing near complete interruptions, the global market is grappling with a massive supply shock that fundamentally changes expectations. We aim to quantify the scale of these outages and evaluate the potential economic consequences for global markets. Our team at Enverus Intelligence® Research (EIR) is monitoring how this conflict reshapes the view of oil and gas availability. This post examines the constraints on strategic reserves and the limitations of North American production responses in the face of historic volatility. Here, you will gain a clearer understanding of why this event is significant and what it means for long-term energy security.
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Current reports suggest that approximately 6 million barrels per day of production are offline due to damage and force majeure. The impact on the Strait of Hormuz is even more pronounced, as flows have dropped from the usual 15 – 20 million barrels per day to only 5 million barrels. We observe that some tankers are attempting to bypass detection by turning off transponders during night transits to move oil through the region. Meanwhile, the complete shut-in of LNG has caused gas prices to surge between 60% and 70% compared to pre-war levels. Brent price volatility has been unprecedented, with prices holding near $90 as the market struggles to assess the true impact of a 15–20 MMbbl/d transportation outage and a 6–7 MMbbl/d supply outage. The uncertainty is compounded by the fact that there is little clarity in how long these disruptions will persist.
Moreover, market analysts typically scrutinize annual supply shifts on the order of 1 million barrels per day, so a disruption of this magnitude is several times more impactful by comparison.
Economic Implications and Price Sensitivity
We can size up the potential impact on the global economy by looking at historical analogs like the invasion of Ukraine. That event took one percentage point off global GDP growth. The current situation depends heavily on duration, but the price sensitivity is clear. We estimate that a 10-day outage of 15 million barrels per day is worth roughly $10 on the price of oil. If the outage extends to 20 days, the impact could reach $20 on the price. This creates a high level of uncertainty for global markets and emerging economies in particular.
Strategic Reserves and Supply Constraints
Geographic Mismatch of Strategic Reserves
G7 leaders are evaluating the use of strategic oil reserves, but the decision making calculus is complex. We note that most Strategic Petroleum Reserves easily serve the Atlantic Basin, while the current shortages are primarily a Pacific Basin problem affecting Asian refiners. It would likely take 30 to 45 days for released reserves to reach those markets, meaning they cannot provide an immediate fix for shortages in Asia. This geographic mismatch limits the effectiveness of strategic releases in the short term. The problem is not necessarily a North American supply issue but a delivery issue for emerging markets.
North American Production Constraints
North American producers face significant hurdles in ramping up production to fill the global gap. Transportation constraints and a new era of capital discipline among public companies mean that production cannot surge overnight. Even if companies invest in new wells today, it takes at least six months before that production turns around. We do not expect US shale or Canadian producers to change the global supply situation in the immediate future.
Industry Adaptation and the New Normal
The Alberta energy sector remains heavily focused on securing revenue through strategic hedging amid the current volatility. Producers are increasingly inclined to lock in forward prices, which today offer roughly a $20/bbl uplift compared with pre‑war levels. This dynamic likely contributed to the rapid pullback from prices above $100/bbl at the start of the week, as increased hedging activity and profit‑taking placed downward pressure on the market.
Long Term Energy Dynamics
Looking ahead, we expect this crisis to refocus global attention on energy security and the resilience of domestic supply chains. For Asian markets, many of which faced severe LNG shortages during the disruption, this could even prompt a renewed reliance on coal, given its availability and lower vulnerability to geopolitical chokepoints. At the same time, persistently elevated gasoline prices may accelerate consumer interest in electric vehicles, particularly in regions seeking insulation from oil‑price volatility.
A return to normal market conditions remains challenging. Security risks continue to undermine confidence in long‑haul energy transportation. Such risks could embed a structural risk premium into oil and gas prices for the next five to ten years.
Ultimately, consumers and governments that have experienced interruptions to reliable energy flows are likely to prioritize energy sources they can control domestically, reinforcing a broader global shift toward localized and resilient supply options.
Key Takeaways
What is the current impact on oil flows through the Strait of Hormuz?
Daily flows have dropped from a typical range of 15 to 20 million barrels to just 5 million barrels.
Why can’t North American producers immediately fill the supply gap?
Logistics constraints and an approximate six-month lag from investment to production lag prevent an immediate increase in supply.
How does this conflict affect long term energy dynamics?
The Middle East energy disruptions intensify the global focus on energy security and domestic resource development.
This blog post is based on an episode from the “Calgary Eyeopener” radio series, hosted by Loren McGinnis, featuring an interview with Al. You can check out the full episode here.
About Enverus Intelligence® | Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. See additional disclosures here.
CALGARY, Alberta (Mar. 11, 2026) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the leading energy data analytics platform, has released an International M&A Review examining how global resource scarcity is reshaping upstream deal activity outside the U.S. and Canada.
International upstream mergers and acquisitions remained subdued for the second year, totaling $18 billion in 2025, essentially flat year over year and well off the historical annual average of $60 billion. Limited transactable high-quality resource and lower oil prices in 2025 are factors constraining deal flow. Despite subdued activity, select regions including Latin America continued to attract buyers.
“International M&A is being shaped less by appetite and more by availability,” said Andrew Dittmar, principal analyst at Enverus Intelligence® Research. “With opportunities to buy into high-quality and scalable development projects scarce, majors have pulled back significantly from the M&A market and focused on organic expansion. Independent and private buyers have stepped in to acquire the mature assets and smaller interests these firms are meanwhile shedding.”
Latin America accounted for half of announced international deal value in 2025, led by continued consolidation in Argentina’s Vaca Muerta shale and ongoing portfolio repositioning in Brazil. Argentina recorded its most active year for upstream M&A since 2014 as regional specialists expanded positions following exits by international oil companies. Despite economic inventory, the scale of the interests held by departing IOCs were likely viewed as too small for a core holding in their global portfolios. In Brazil, majors and national oil companies continued to divest mature offshore assets to domestic operators while selectively increasing exposure to high-quality deepwater developments. Africa also remained a meaningful contributor to global activity, often involving E&Ps cycling out of mature assets to fund higher impact development programs in the Atlantic Margin.
Since early 2024, public independents and private E&Ps like key Vaca Muerta consolidator Vista Energy have accounted for more than 70% of acquisition value internationally. Rare examples of majors stepping into deal markets during the last few years include Chevron’s purchase of Hess in 2023, which focused on its Guyana interests and TotalEnergies asset swap in Namibia’s Orange Basin late last year.
Private equity participation in non-North American upstream M&A has also retreated with European investors pivoting toward power and low-carbon investments. That dynamic has further concentrated international dealmaking among regionally focused operators. A possible return of private equity money could come from U.S. based firms pursuing deals abroad as attractive acquisition opportunities domestically have dwindled and high competition raises asset prices.
Valuation metrics disclosed a two-speed market where weaker near-term crude pricing during 2025 and more deals focused on mature assets or situations involving distressed sellers reduced production and cash flow metrics. That was particularly true for oil-weighted assets. Buyers have been cautious about near-term cash flow quality, focusing closely on operating costs and end-of-life liabilities.
At the same time, reserve-based valuations have shown greater resilience. Despite wide dispersion across regions and asset types, pricing for quality reserves has generally held up better than flowing production metrics would suggest. This highlights a market that continues to value duration and development optionality, even as it discounts late-life barrels.
Looking forward, international upstream M&A is likely to remain subdued unless additional development-stage resources come to market through farm-downs, partial stake sales or broader portfolio reshaping. Regulatory clarity will be a key swing factor. Jurisdictions that improve fiscal stability, streamline approvals and provide greater certainty around transferability are more likely to convert policy reform into transactions and additional invested capital.
The recent geopolitical-driven run-up in oil prices has also injected both potential momentum and volatility into the market. Higher crude prices improve near-term cash flow to fund M&A and make a wider range of assets economically attractive as acquisition targets. However, price uncertainty can widen bid-ask spreads and lead to a downturn in transactions until stability returns.
“The current injection of massive supply uncertainty into crude markets complicates negotiations by widening the bid-ask spread,” said Dittmar. “That is particularly true in the current market, where the duration of supply disruptions and longer-term impact on crude is opaque. But if higher prices prove durable it will cause a resurgence of interest in expanding global supply, unlocking more development projects and broadening buyer appetite. That ultimately supports stronger and more sustained deal flow.”
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About Enverus Intelligence® Research Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
Building on a recent downward revision to its load forecast, PJM capacity market is now extending the price collar. Originally scheduled to expire in 2028, the collar remains between $175/MW and $325/MW but will stay in place until 2030. With the extension, PJM hopes to continue incentivizing new capacity to come online, as the ISO continues to forecast high load growth.
In addition to the extension, PJM implemented Expedited Interconnect Track Procedures, offering a new pathway for shovel-ready requests to come online. The process sunsets at the close of 2027 and allows for up to 10 projects of at least 250 MW to be considered. Enverus Intelligence® Research (EIR) considers these policies good temporary solutions, but not robust enough to solve long-term supply-demand mismatches.
While the measures favor new capacity additions, PJM’s load forecast still calls for an unprecedented 11 GW of new capacity post-2030 to address demand. EIR’s outlook indicates a more moderate path, our estimate of 6 GW of new capacity after 2030 is about half of the ISO’s projection (Figure 1). Until long-term load forecasts align with realized demand and substantial new capacity comes online, such policies will not ensure reliability, and the price collar and short-term queue measures will persist.
This blog offers just a glimpse of the powerful analysis Energy Transition Research delivers on the trending themes, don’t miss the full picture.
CO2-EOR – Path to Profitable Carbon Storage – Using anthropogenic carbon dioxide in place of natural supply allows 45Q credits to transform CO2 from a sunk operating cost into a source of revenue for permanently stored volumes. This report leverages EIR’s CO2-EOR cost model to analyze how converting an existing operation from natural to anthropogenic CO2 impacts financial returns.
Clean Fuels Fundamentals – Discipline Over Hype – The 2026 Clean Fuels Fundamentals analyzes how evolving policy frameworks, investment shifts and feedstock dynamics are shaping today’s clean fuels landscape. We review updates across major federal and global programs, trends in pathway selection and CCS integration and how producers are approaching transportation and export markets.
IPP NAV Compass – Underappreciated PPA Upside – We examine the relative value of public independent power producers based on our latest NAV analyses and how this impacts long and short trading strategies.
DID YOU KNOW?
PJM failed to meet its reserve margin target by about 5 percentage points in the latest round of the capacity market auction.
Key Takeaways
Why is the PJM capacity market extending its price collar?
PJM extended the $175–$325/MW price collar through 2030 to maintain investment incentives as it continues to forecast strong load growth. The move supports near-term reliability but doesn’t solve long-term supply challenges.
What is the Expedited Interconnect Track in the PJM capacity market?
It’s a temporary process allowing up to 10 large (250+ MW) shovel-ready projects to fast-track interconnection through 2027, helping bring new capacity online faster.
Do these changes fix PJM’s long-term capacity needs?
Not fully. PJM projects 11 GW of new capacity post-2030, while EIR estimates about 6 GW. Short-term reforms may persist until demand and new supply better align.
About Enverus Intelligence® | Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. See additional disclosures here.
This week’s energy headlines spotlight U.S. drilling efficiency gains, longer-lateral development trends, improving gas-sector productivity, strategic upstream acquisitions, and new offshore project momentum. Here are five stories that stood out:
Top Stories
Diamondback cuts cycle times, trims costs across D&C program Diamondback posted quicker drilling and completion performance, with average spud-to-total-depth approaching eight days and Midland Basin well costs trending lower year-over-year. The company plans to grow volumes under a disciplined capital program and secured additional takeaway to manage rising associated gas as second-bench development expands.
Chord leans into 4-mile program as costs drop double digits Chord increased its use of four-mile laterals following double-digit cost reductions and strong tracer results along the full well-bore. Roughly 40% of this year’s turn-inline wells will be four-milers, supported by expanded simul-frac activity, dual-fuel operations and continuous pumping strategies.
Expand trims well costs, boosts Haynesville productivity into 2026 Expand Energy said Haynesville breakevens have fallen about 15% since late 2024 as vertical integration across sand, water and rigs boosts efficiency. The company plans to run seven rigs in the Haynesville and expand activity in Appalachia to support a constructive multi-year gas demand outlook.
Diversified grows East Texas footprint with $245MM Sheridan deal Diversified agreed to purchase East Texas gas assets for $245 million in cash, adding low-decline production, meaningful reserves and contiguous acreage. The company expects to transition financing to asset-backed structures following the close.
Equinor-BP agreement advances Bay du Nord toward 2027 FID Equinor and BP signed a benefits agreement with Newfoundland and Labrador, moving the Bay du Nord deepwater project closer to a possible final investment decision next year. The partners are targeting a phased approach using a high-efficiency floating production, storage and offloading vessel.
Additional Stories
Also this week: Conrad sanctioned the Mako gas development in Indonesia, QatarEnergy temporarily shut in LNG operations after regional attacks, Targa announced new Permian and Mont Belvieu expansions, Flowco acquired Valiant Artificial Lift Solutions, and a GIPEQT consortium agreed to take AES private.
CALGARY, Alberta (Mar. 10, 2026) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the leading energy data analytics platform, is releasing a new analysis examining the global natural gas market implications of a full shutdown of Qatari liquefied natural gas (LNG) production following recent U.S. military attacks on Iran.
The closure removes approximately 10.2 billion cubic feet per day of LNG supply, representing nearly 20% of global LNG trade, creating one of the largest global gas supply shocks the market has faced since the 2022 Russia‑Ukraine crisis and sharply increasing price volatility across global gas benchmarks.
The scale of the disruption rivals the most severe gas market shocks of the past decade. Enverus Intelligence® Research compares the Qatari LNG shutdown to the Russia‑Ukraine crisis, when Europe lost roughly 8 Bcf per day of pipeline gas supply and Dutch Title Transfer Facility (TTF) prices surged from about $15 per million British thermal units in 2021 to an annual average near $40 per million British thermal units in 2022. Early market signals suggest a sharp response, with prices across global gas hubs rising approximately 55% as of March 5, underscoring how quickly LNG markets react to large supply disruptions.
“A disruption of this magnitude exposes how little flexibility exists in global LNG markets,” said Josephine Mills, senior analyst at EIR. “With short‑run LNG supply elasticity extremely limited, price rather than volume must absorb the adjustment, leaving global gas prices highly vulnerable if the outage is prolonged.”
The analysis highlights how limited short‑run LNG supply elasticity amplifies gas price risk during major disruptions. With few producers able to materially increase output in the near term, Enverus Intelligence® Research expects global gas prices could roughly double from Enverus Intelligence Research’s pre-war forecast if the Qatar LNG outage persists. The impact is expected to be most acute in Asia, which receives about 80% of Qatar’s LNG exports, while North America could see secondary effects through higher utilization at U.S. LNG export facilities and supportive conditions for Henry Hub natural gas prices as global coal and power markets tighten.
Key takeaways:
The shutdown affects roughly 10.2 Bcf per day of LNG exports, equivalent to about one‑fifth of global LNG trade, a shock comparable in scale to the loss of Russian pipeline gas to Europe in 2022.
Global LNG markets have limited short‑run supply elasticity, increasing the risk that benchmark natural gas prices could roughly double if the outage persists beyond the near term.
Asia bears the greatest exposure, receiving about 80% of Qatar’s LNG exports, with several countries relying on Qatari volumes for more than one‑third of total gas imports.
Elevated international gas prices could incentivize higher utilization at U.S. LNG facilities, potentially adding 1–2 Bcf per day of LNG exports if winter‑level utilization rates are sustained.
European gas markets face heightened vulnerability due to storage inventories roughly 550 Bcf below the five‑year average, limiting buffers against further natural gas supply disruption.
This EIR analysis leverages proprietary data and modeling from a variety of products including Enverus Global Research and Enverus AI.
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About Enverus Intelligence® Research Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
Artificial Intelligence (AI) has become a constant topic in enterprise software conversations. For finance and supply chain leaders in oil and gas companies, however, many of those conversations feel disconnected from reality. Promises are big, terminology is vague, and outcomes are often unclear.
The result is understandable skepticism. Not because leaders doubt the potential of AI, but because it is rarely explained in a way that aligns with how finance in oil and gas companies actually works.
To make sense of where AI is headed, it helps to step back and focus on what finance and supply chain organizations truly care about. Control. Predictability. Accountability. Any meaningful application of AI has to support those goals, not distract from them.
Key Takeaways
Why do finance and supply chain leaders in oil and gas struggle to gain value from most enterprise AI conversations?
Because typical AI narratives overlook the operational realities of field‑driven work, leaders rarely see a clear connection between AI claims and the controls they depend on.
What makes agentic AI meaningful in a source‑to‑pay environment?
Agentic AI creates value when it understands contracts, orders, field execution, and invoices together, allowing teams to act earlier with clearer insight.
Why does agentic AI matter specifically for oil and gas operations?
Oil and gas workflows rely on distributed field activity, complex pricing structures, and rapid execution, and agentic AI helps surface issues sooner so finance can reduce surprises and improve predictability.
Agentic AI breaks a goal into smaller steps. It carries them out across connected systems. For finance teams in oil and gas, this means clearer visibility into field activity so they can control spend earlier and reduce surprises.
Why AI Conversations Often Miss the Mark
Many enterprise AI discussions focus on novelty rather than usefulness. AI is frequently positioned as a standalone capability, something layered on top of existing systems, or even as a replacement for human decision making. Finance and supply chain leaders, particularly in oil and gas, care less about novelty and more about how technology reduces variance, improves visibility, and enforces commercial terms throughout field activity.
When AI feels like a black box, trust erodes. When it operates outside established workflows, adoption stalls. When it ignores policy, contracts, or approvals, it introduces risk rather than reducing it. This disconnect becomes even sharper in oil and gas, where an error in pricing, cost coding, or approval routing can cascade into significant financial impact across dozens of field locations.
Skepticism in this context is not resistance to innovation. It is a signal that the conversation needs to change.
Defining Agentic AI in Plain Terms
Agentic AI is often misunderstood, so clarity matters. In practical terms, agentic AI takes a desired outcome, breaks it into smaller steps, and completes those steps across the systems involved without needing step by step instructions. It does this by understanding the full context of work. In our case this might include the contracts we have in place, the pricing and service terms, the orders issued, and the activity happening in the field. Agentic AI gives us a way of connecting and automating the workflows in each of these factors and then surfacing the right information when teams need it. This approach is especially valuable in oil and gas, where commercial terms, field conditions, and operating requirements change frequently and demand precise adherence.
The purpose of agentic AI then is not to replace human judgment, but to strengthen it. It gives finance, supply chain, and field teams earlier awareness of potential issues, clearer understanding of what is happening, and more confidence in the actions they take. This is particularly important in field-based environments where timing, accuracy, and clarity have direct impact on financial control and operational performance.
Why Context Matters More Than Intelligence
In source‑to‑pay for oil and gas, context comes from the full lifecycle of work and spend. This includes pricing agreements, orders, field execution, verification, invoices, and settlement.
When AI can only see one part of that lifecycle, its value is limited. It may detect anomalies, but it cannot explain root causes. It may automate a task, but it does not strengthen financial control. Oil and gas workflows demand context because spend originates in the field, often before formal documentation catches up. Without lifecycle awareness, AI stays reactive instead of useful.
When AI has visibility across the lifecycle, the dynamic changes. Risks surface earlier. Mismatches appear before invoices arrive. Unapproved work becomes visible during execution.
This closes a long‑standing gap in oil and gas operations, where disconnected systems often hide issues until they create financial or operational friction. In this sense, AI is only as effective as the system it operates within.
Where Agentic AI Delivers Early Value
The earliest impact of agentic AI in finance and supply chain comes from awareness and guidance, not heavy automation.
Examples include:
Identifying potential pricing inconsistencies before they escalate
Noticing activity that falls outside approved scope
Surfacing patterns of supplier risk based on field conditions and historical performance
Guiding users toward faster, cleaner resolution paths based on contract rules
These examples are grounded in the day‑to‑day challenges of oil and gas, where field execution often moves faster than back‑office validation. The aim is to help teams act sooner and with greater confidence, especially when spend originates in remote or unsupervised environments.
Why Platform and Trust Matter
For agentic AI to work, it must operate inside systems teams already trust. That means strong security, reliable data, and broad adoption. Fragmented tools make this nearly impossible. When data sits in silos, AI has limited context and becomes less accurate.
Oil and gas operations amplify this problem because field data, pricing, dispatch information, and cost coding often originate in different systems or formats. Platforms that unify these workflows give AI the foundation it needs. Shared context across finance, supply chain, and field operations creates alignment. In oil and gas, where supplier scale, field activity, and regulatory oversight add extra complexity, this alignment is essential for financial integrity.
At Enverus, this perspective shapes how agentic AI is being integrated into our Source‑to‑Pay platform. Instead of building isolated features, we focus on creating situational awareness across pricing, orders, execution, invoicing, and settlement. The goal is to help teams prevent issues rather than correct them after the fact.
AI as an Evolution of Control
Agentic AI is not a departure from strong finance and supply chain fundamentals. It is an extension of them. Strong processes, clear policies, and connected workflows remain essential. AI strengthens their effectiveness by helping teams see important signals earlier.
For oil and gas leaders, this means fewer invoice disputes, fewer budget surprises, more timely visibility into field activity, and smoother financial close cycles. The promise of agentic AI is simple: better outcomes, fewer surprises, and more predictable execution.
That is a future worth building toward.
About the Author
Ian Elchitz is Vice President of Product Management at Enverus, where he leads the Source to Pay and Order to Cash platforms within the Energy Network Applications business, formerly known to many customers as Business Automation. With over 20 years of experience at the intersection of supply chain, finance, and enterprise software, Ian focuses on building platforms that improve execution visibility, strengthen control, and prepare organizations for AI driven operating models.
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AUSTIN, Texas (Mar. 4, 2026) —Enverus, the leading energy data analytics platform, announced today that it has entered into a definitive agreement to acquire Spatial Business Systems (SBS), an AI-enabled intelligent design automation platform for electric and gas utilities, telecommunications providers, and engineering teams.
To keep pace with load growth, reliability mandates, and grid modernization targets, utilities must deliver complex capital projects with speed and precision. The acquisition of SBS brings to Enverus a portfolio of design automation solutions and AI-powered reporting that streamlines utility engineering workflows with ready-made and fully customizable engineering templates, automated bills of materials and connected data across design, enterprise planning systems, and GIS environments.
“Utilities are projected to spend over $1 trillion by the end of 2029 to modernize aging infrastructure, integrate new generation, and meet rising demand,” said Manuj Nikhanj, CEO of Enverus. “The team at SBS has built mission-critical engineering tools that sit at the heart of utility capital programs. By combining their engineering design automation platform with Enverus’ planning intelligence and AI-driven analytics, we are building the operating platform for risk-adjusted utility capital deployment.”
Founded in 2002, SBS provides products across energy transmission, distribution, and substation design and telecommunications design: Automated Utility Design (AUD), Substation Design Suite (SDS), BIM Substation Designer (BSD), and Automated Broadband Designer (ABD). SBS solutions improve design cycle times by up to 90% and are widely adopted across utilities and engineering firms in North America, Europe, and Australia.
“We are proud of the trust our customers have placed in our products to automate and accelerate engineering design and improve project consistency,” said Al Eliasen, President and CEO of SBS. “Joining Enverus allows us to scale our innovation, expand our enterprise capabilities and embed richer data and analytics into the design process, just as utilities are being asked to do more with greater complexity than ever before.”
Enverus has expanded its power and energy transition solutions through rapid organic innovation and strategic acquisitions. The addition of SBS deepens Enverus’ role in utility capital programs and expands its ability to connect planning, design, market intelligence and asset optimization across the power ecosystem.
The transaction is expected to close in Q2, subject to customary closing conditions and regulatory approvals. Evercore and Barclays served as financial advisors to Enverus.
About Enverus Enverus is the energy industry’s most trusted source for decision intelligence and operational efficiencies. With petabytes of proprietary data, deep domain expertise and AI-native technology, Enverus empowers customers to invest smarter, operate more efficiently, and scale faster — across upstream, midstream, minerals, power and renewables — all while navigating the most complex energy market in history. Learn more at www.enverus.com.
About SBS Spatial Business Systems (SBS) is a provider of intelligent design tools for electric and gas utilities telecommunications providers. Its solutions enable utilities, telecoms, and engineering firms to automate detailed engineering design workflows, generate Bill of Materials, enforce standards and connect design to enterprise asset systems and GIS. SBS serves utilities, telecoms, and engineering partners globally and was backed by Peak Rock Capital.
Want to learn more about the impact of shut in production in the Middle East? About OPEC’s response to try and balance the market? Or about what this could mean for North American oil producers? Click here to learn more about Enverus Intelligence® Research (EIR) or to schedule a call with our analyst team if you’re already a customer.
Recent joint U.S.- Israeli military strikes in Iran and the ongoing geopolitical tensions in the region cast a significant shadow over global energy markets. As the world watches closely, the potential for regime change and the implications for oil and gas supply chains are paramount. This analysis from EIR delves into how these events could influence global energy balances, pricing, and market stability.
The Immediate Impact on Middle East Oil Production: Chokeholds and Premiums
The Strait of Hormuz, a critical artery for global energy trade, is at the forefront of concerns. Roughly one-third of global seaborne crude, about 14 MMbbl/d, passes through this vital waterway. Current market pricing appears to reflect a geopolitical premium of $10-$15/bbl. However, the potential for a prolonged disruption, even for just one month, could see Brent crude prices surge into triple digits.
Adding to this uncertainty, reported damage to Iran’s Kharg Island facility raises questions about the export capacity of roughly 2.0 MMbbl/d of Iranian crude. Should Kharg Island remain offline for an entire year, our 2026 Brent price forecast could see an additional $10-$15/bbl increase to our current $63/bbl projection.
History, however, offers a degree of perspective: conflict-driven price surges often prove temporary as governments and producers intervene to stabilize markets and offset supply losses. OPEC’s signaled incremental April increase in production is one such intervention, though it may not fully offset potential Iranian export disruptions, keeping focus on OPEC’s spare capacity.
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While the immediate price reaction can be sharp, the global oil market’s somewhat tempered response is partly supported by current inventory levels. OECD crude and product stocks around 50 MMbbl above the five-year average, with about 40 MMbbl recently added to floating storage. However, the U.S. Strategic Petroleum Reserve (SPR) remains significantly below its historical levels, down roughly 200 MMbbl from 2018. This buffer helps offset some supply risk, but not all.
The increased transit risk and insurance costs associated with the current tensions are already driving up oil time spreads, particularly at the front of the curve. Asian importers, including China, which recorded a record 13 MMbbl/d in December, may be increasing precautionary stock builds, further tightening prompt markets and amplifying volatility.
Global Gas Markets Face New Pressures
The global energy market volatility implications extend beyond crude oil. The closure of QatarEnergy’s LNG facilities impacts 10-11 Bcf/d, about 20% of global LNG trade, and presents a significant challenge. The historically inelastic nature of LNG supply means that immediate market adjustments are likely to manifest through price rather than volume. Indeed, the JKM benchmark has already seen a sharp increase, reaching $20.01/MMBtu. This situation draws parallels to 2022 after Russia’s invasion of Ukraine cut gas flows and drove TTF prices to about $40/MMBtu, underscoring how sensitive global gas markets are to multi-Bcf/d supply disruptions. International gas inventories, unlike crude, are below their five-year norms, leaving less room for market participants to absorb such a shock.
U.S. Domestic Gas Markets and Producer Outlook
Closer to home, U.S. domestic gas markets could experience significant price movements. Henry Hub prices may see substantial increases, mirroring the response observed during the Russian supply shock. In the short term, this would translate into expanded margins and stronger cash flows for existing U.S. gas producers. However, a sustained period of higher prices could eventually incentivize increased supply activity, potentially weighing on long-term demand fundamentals.
Iran’s Instability and China’s Energy Security
Iran’s role as a significant crude producer, accounting for roughly 4 MMbbl/d, means that political transitions introduce considerable supply risk. While economic incentives may encourage continued output, the certainty of supply is diminished. A regime shift in Iran could directly impact China’s marginal energy import costs, potentially accelerating its strategic push for greater energy security through diversification and domestic investment.
Conclusion
The geopolitical landscape surrounding Iran presents a complex and dynamic challenge for global energy markets. While historical patterns suggest price surges may be temporary, the scale of potential disruptions to critical chokepoints like the Strait of Hormuz and key export infrastructure cannot be underestimated. Businesses and policymakers must monitor inventory levels, OPEC’s response and evolving demand from major importers like China. Understanding these interconnected factors is crucial for navigating the inherent volatility and ensuring a stable energy future.
Key Takeaways
What is the potential impact of disruptions to the Strait of Hormuz and Kharg Island on global oil prices?
Disruptions to the Strait of Hormuz, a critical chokepoint for 14 MMbbl/d of crude, could lead to significant price surges. A month-long closure could push Brent crude into triple digits. Damage to Kharg Island, affecting ~2.0 MMbbl/d of Iranian exports, could add $10-$15/bbl to our 2026 forecast if offline for a year.
How do historical trends and current market conditions influence oil price volatility following geopolitical events?
Historically, conflict-driven price spikes tend to fade within months as governments and producers intervene. While OPEC has signaled incremental production increases, current global gas inventories are below normal and U.S. SPR levels are lower than in previous years, potentially limiting buffers against sustained volatility.
Beyond crude oil, how do geopolitical tensions in Iran affect global natural gas markets and China’s energy strategy?
Potential disruptions to LNG supply, such as from QatarEnergy, can significantly impact global gas prices like JKM, which has already seen a sharp rise. For China, Iran’s energy instability may reinforce its drive for greater energy security through diversification and domestic investment.
About Enverus Intelligence® | Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. See additional disclosures here.
Oilfield service companies have seen this pattern before: a new growth opportunity emerges, capital flows and early movers reshape their business models. You’ve lived through the shale revolution, through consolidation waves, through efficiency cycles. Some pivots worked. Some didn’t. What makes this moment different is the structural shift in electricity demand.
Data center power consumption is accelerating at a pace regional grids were not designed to accommodate. AI-driven workloads are pushing load forecasts higher. Developers are securing gigawatts of capacity at a time. Interconnection timelines are stretching into years in some markets. Behind-the-meter (BTM) generation is increasingly being discussed not as a workaround, but as part of the broader supply solution.
For OFS executives, the strategic question is straightforward: Does data center power represent a viable business opportunity or is it a capital-intensive distraction?
The Structural Drivers Behind the Opportunity
The underlying demand trends are difficult to ignore. Analysts project nearly 29 GW of additional data center load growth through 2028, with a meaningful portion of incremental demand will be met through BTM solutions. Announced BTM capacity has already surpassed 6 GW as developers explore supplemental generation where grid buildout lags demand.
At the same time, transmission development remains slow and interconnection queues remain lengthy. Hyperscalers are under pressure to bring capacity online quickly, often in markets where utility infrastructure cannot immediately respond.
That mismatch between load growth and grid readiness creates potential openings for supplemental power providers.
And if you run an oilfield service business, the operational side of this probably feels familiar. Pressure pumpers already manage large generator fleets. Rental companies deploy mobile power into remote locations. Coordinating fuel, logistics and high-load operations isn’t new.
Market Signals: Capital Is Already Moving
Beyond projected demand growth, equity markets are beginning to reflect this shift. Recent performance data shows that OFS companies with visible power exposure have outperformed peers without power-linked revenue streams. Investors appear to be assigning higher multiples to businesses with infrastructure-style earnings tied to data center demand. This suggests capital markets view power exposure as strategically meaningful.
Figure 1: EV/Forward EBITDA Multiple Response to Power Announcements
Source | Enverus Intelligence® Research, Factset
Why This Isn’t a Simple Extension of Oilfield Services
Despite the synergies, data center power operates under different economic and operational constraints than traditional oilfield services. Oilfield services reward flexibility and speed. Contracts often turn quickly. Cycles compress and expand.
Data center power requires longer visibility. It demands alignment across fuel access, interconnections, contractual commitments and construction timelines. Capital commitments are typically larger and project miscalculations can result in underutilized equipment or long-duration exposure to markets that evolve differently than expected.
It is also unlikely that every OFS segment will be equally positioned to compete. Pressure pumping companies may have a more natural pathway into larger-scale deployments due to generator scale and operational expertise. Smaller rental businesses might find success in shorter-term bridging opportunities. Others may find that meaningful participation requires a level of specialization and capital intensity that does not align with their core model.
How Some Companies Are Approaching the Shift
A handful of oilfield service companies have already begun carving out dedicated power divisions, leveraging existing generator fleets and operational expertise. Others are experimenting more cautiously, screening projects region by region, prioritizing markets where grid constraints are persistent rather than temporary. What’s notable is that few are making sweeping, company-wide pivots. Instead, most are treating data center power as an extension of capability, not a replacement for their core business.
A More Strategic Way to Approach the Market
Rather than framing the decision as “enter or don’t enter”, it may be more productive to treat this as a validation phase. This includes:
Monitoring where large-load demand is emerging
Assessing where grid constraints are structural rather than cyclical
Confirming fuel and infrastructure alignment at the project level
Evaluating competitive saturation in targeted regions
Piloting opportunities before scaling capital commitments
The distinction between market excitement and investable opportunity often lies in project-level feasibility. For some, behind-the-meter power may become a durable extension of their platform. For others, it may prove capital-intensive and operationally complex. As with previous cycles, success will likely depend less on speed and more on discipline to understand where existing capabilities intersect with demand and the right project economics. And as this market evolves, the companies that stay closest to the data and the fundamentals will be the ones best positioned to make the right call.
About Enverus Intelligence® | Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. See additional disclosures here.
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