Energy Market Briefing

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Friday, May 29, 2026

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☀️Morning Wire7:00 AM CST

The Morning Take

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Oil Prices

** Crude Prices Drop Sharply as Geopolitical Risk Premium Evaporates

BODY: Oil prices fell sharply in Friday trading, continuing a significant weekly decline as traders rapidly pulled geopolitical risk premiums from the market. West Texas Intermediate (WTI) crude was trading at $87.75, down $1.15 (-1.29%), while Brent crude was at $91.30, down $1.40 (-1.51%). The Bakken differential stood at -$3.42 versus WTI. The selloff was triggered by growing optimism that diplomatic talks between Washington and Tehran could lead to a ceasefire, according to reports from OilPrice.com and Rigzone. This marks a reversal from most of the year, where headlines involving Iran consistently pushed prices higher on fears of regional escalation. OilPrice.com reported that July WTI crude suffered its largest weekly decline in months, trading between a high of $94.70 and a low of $87.11 before settling at $88.60 on Thursday, down 8.66% for the week. Traders are now looking beyond current tight supply conditions—including disrupted traffic in the Strait of...

☀️Morning Wire·May 29

Rig Report

North Dakota Rig Count Holds Steady at 28

The number of active drilling rigs in North Dakota's Bakken formation was unchanged at 28 on Friday, May 29, according to Bakken Wire live data. No rigs were added, removed, or moved location from the previous day. The current count represents a net increase of three rigs over the past week, up from 25 on May 22, and a gain of five rigs over the past month, rising from 23 on April 29. This steady, multi-week uptick in drilling activity has occurred against a backdrop of volatile global oil markets. Global crude futures experienced a significant selloff this week, driven by shifting geopolitical sentiment. According to OilPrice.com, July WTI crude oil suffered its largest weekly decline in months, settling at $88.60 on Thursday, May 28, down $8.40 or 8.66% for the week. The report attributed the drop to traders aggressively removing risk premium on growing hopes for successful diplomacy and...

☀️Morning Wire·May 29

Daily Activity

Burlington Resources Drives New Bakken Permit Activity

Burlington Resources Oil & Gas Company LP was the most active operator securing new drilling permits in North Dakota yesterday, according to the state's Department of Mineral Resources Daily Activity Report. The filings show Burlington received approval for five new permits, all targeting the same location in Dunn County. All five new permits—numbered 42978 through 42982—are for the "STATE DOLEZAL" wells (2B, 2A, 1B, 2C, 1C) at NW NE 12-145N-96W in Dunn County. The wells are designated for the 'CONFIDENTIAL' field, a status that restricts public release of certain well data. No other operators received new permit approvals in the report. Permit renewal activity was more widespread, with a total of 12 filings. XTO Energy Inc. accounted for the majority, with nine renewals. Seven of XTO's renewals are for wells in the Grinnell field of Williams County (GBU ZEUS FEDERAL 34X-8H, 8D, 8E, 8A, 8F, 8B, and 8G), all noted...

☀️Morning Wire·May 29

Global Markets

German Utility SEFE Secures First LNG Supply Deal from Canada

German state-owned utility SEFE has signed a preliminary agreement to offtake liquefied natural gas from a Canadian export project, according to a report from Rigzone. The deal marks SEFE's first LNG supply contract sourced from Canada. The agreement is with the Ksi Lisims LNG project for the supply of 1 million metric tons per annum of LNG for up to 20 years, Rigzone reported on May 28. For Bakken operators, this development underscores the expanding global market for North American natural gas. While the Bakken formation is primarily an oil play, it also produces significant associated natural gas. Long-term offtake agreements for LNG, like the one signed by SEFE, help solidify demand foundations that can support infrastructure investment and price stability for natural gas across the continent. The Ksi Lisims LNG project, a floating export facility proposed for British Columbia's northern coast, represents a new outlet for Western Canadian natural...

☀️Morning Wire·May 29

Global Markets

Global Roundup: Mid-East Tensions, LNG Deal, Investor Risk Outlook

Geopolitical tensions in the Middle East continue to simmer, with a proposed U.S. ceasefire plan for Iran facing resistance, according to a report from OilPrice.com. The source indicates the Trump administration is attempting to use normalization with Israel as leverage in Iran negotiations, aiming to expand the 2020 Abraham Accords. However, the report notes regional dynamics have shifted, with Saudi Arabia moving further away from Israel and deepening security coordination with Turkey, Pakistan, and Egypt. Saudi officials have stated they will not normalize ties with Israel without Palestinian statehood, according to the source. Such persistent instability underscores the ongoing geopolitical risk premium in global oil markets, a factor closely watched by Bakken producers for its impact on price volatility. In other global energy infrastructure news, South Africa is advancing a new liquefied natural gas import project. Rigzone reported that Transnet National Ports Authority has executed a 25-year terminal agreement with...

☀️Morning Wire·May 29

Operator News

Global Geopolitical Moves Create Mixed Signals for Oil Markets

Norway is pressuring the European Union to withdraw a moratorium on new oil and gas drilling in the Arctic, a region holding nearly two-thirds of the Scandinavian nation's petroleum resources, according to Rigzone. The push for increased Arctic access comes amid volatile global conditions that can impact the price competitiveness of Bakken crude. Meanwhile, U.S.-Iran relations are sending conflicting signals to energy markets. The U.S. and Iran have reached a tentative deal to extend a ceasefire by 60 days and launch further talks on Tehran's nuclear program, a person with knowledge of the matter told Rigzone. Such diplomatic progress can reduce the geopolitical risk premium in global oil prices. However, this tentative truce follows recent military action. The U.S. carried out airstrikes on an Iranian military site near the Strait of Hormuz on May 28 and imposed new sanctions aimed at preventing Tehran from profiting from vessels transiting the critical...

☀️Morning Wire·May 29

Pipeline & Infrastructure

Global Tensions, Midstream Investment Mark End of May

Geopolitical tensions flared this week as a second round of U.S. strikes against Iranian military targets caused ships to desert the Strait of Hormuz, according to a report from Rigzone. The development underscores the persistent risk to global oil flows and pricing, factors that directly influence the revenue environment for Bakken producers. In midstream news, Calgary-based Pembina Pipeline Corporation has approved a new straddle plant project to extract natural gas liquids, Rigzone reported. The project will utilize the company's existing rights on the Yellowhead Pipeline. Such midstream investments in processing infrastructure are critical for maximizing the value of natural gas produced alongside Bakken crude. Separately, Monumental Energy raised $2.2 million through a share offering, with part of the proceeds earmarked to fund additional oil and gas workover wells in New Zealand, according to Rigzone. While this specific capital is directed overseas, the activity highlights the ongoing search for capital to...

☀️Morning Wire·May 29

Regulatory

NOG Expands into Canada with Duvernay Shale Acquisition

Minnesota-based Northern Oil and Gas (NOG) has entered the Canadian market with a major acquisition in Alberta's Duvernay shale, according to a report from Rigzone. The company signed a deal to purchase a 25 percent stake in light-oil assets from Parallax for an initial price of approximately $259 million. The transaction represents a significant strategic expansion for NOG, a prominent non-operated acreage holder in the Bakken formation. While the company's core operations remain focused on the Williston Basin, this move diversifies its portfolio into another major North American light-oil play. The Duvernay formation in Alberta is often compared to the Bakken for its resource potential. For Bakken-focused investors and partners, NOG's Canadian entry signals the company's confidence in deploying capital outside its traditional region while maintaining its non-operated business model. The deal provides NOG with exposure to a different regulatory and market environment, potentially mitigating basin-specific risks. The acquisition was...

☀️Morning Wire·May 29

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Drop Over 1.5% on Ceasefire Hopes, Bakken Differential at -$3.42

Oil prices fell sharply in midday trading Friday, with Brent crude dropping 1.65% to $91.17 and West Texas Intermediate (WTI) down 1.48% to $87.58, according to live price data. The Bakken crude differential to WTI was $-3.42. The weekly decline is on track to be the largest in two months for Brent, according to OilPrice.com. The sell-off is driven by market speculation that a 60-day extension of the current U.S.-Iran ceasefire and a temporary deal to reopen the Strait of Hormuz are close to being finalized, OilPrice.com reported. The strategic waterway has been blocked for months, cutting off a major global oil chokepoint. However, this optimism contrasts with stark warnings from industry leaders about dangerously low global inventories. Chevron CEO Mike Wirth warned Thursday that oil prices are likely to rise over the next two months as near-record low crude inventories continue to decline due to the Iran war. He...

🔆Midday Wire·May 29

Global Markets

Global Shifts Impact Oil Markets, Supply Security

Recent international energy developments underscore global market pressures and supply chain vulnerabilities that could influence the trade environment for Bakken crude, according to reports published Friday. In the Caucasus, newly signed agreements between Georgia and Azerbaijan are raising concerns about energy security and transparency, OilPrice.com reported. The deals, finalized during a May 18 meeting, include a 20-year extension of a gas-purchase agreement and a framework for electricity supply and transit. The Georgian government stated the deal "guarantees the security of social gas supply." However, the lack of disclosed full texts has fueled criticism. Analyst Roman Gotsiridze argued Georgia may have "given up its share of transit capacity" in a key gas pipeline for 20 years. The report notes a shifting supply mix: Georgia's gas purchases from Azerbaijan fell by around 6 percent in 2025, while imports from Russia surged by roughly 23 percent, with Gazprom reporting a 40.4 percent increase...

🔆Midday Wire·May 29

Operator News

LNG Project Contracts Awarded, California Offshore Probe Launched

Major engineering and construction contracts for U.S. LNG export projects were announced Friday, while California lawmakers launched a probe into efforts to restart offshore oil production. CB&I has won a contract to build five large LNG storage tanks for the Commonwealth LNG project in Louisiana, according to a report from Rigzone. Each tank will have a capacity of 1.77 million cubic feet. Separately, Cheniere Partners has issued Bechtel a "limited notice to proceed" for early work on an expansion of the Sabine Pass LNG facility, Rigzone reported. The notice allows Bechtel to launch initial engineering and procurement activities for the project. In California, Democratic federal lawmakers are probing Sable Offshore Corp.'s campaign to restart oil production from the Santa Ynez Unit offshore California. In a letter, the legislators warned Sable's CEO about "the long-term legal and financial ramifications of collaborating with the Trump administration to circumvent California law," Rigzone reported....

🔆Midday Wire·May 29

Pipeline & Infrastructure

Global Energy Developments Signal Shifting Geopolitical, Market Landscape

International pipeline and energy infrastructure developments reported Friday highlight the shifting geopolitical and supply landscape that frames the global market for Bakken crude. In South Africa, the Transnet National Ports Authority has executed a 25-year terminal agreement with Ukwanda LNG for a regasification project at the Port of Ngqura, according to Rigzone. The development of new global LNG import capacity can influence long-term gas-to-oil switching dynamics and energy trade patterns relevant to all crude exporters, including those in North Dakota. Separately, Norway is campaigning for the European Union to withdraw a proposed moratorium on new oil and gas drilling in the Arctic, Rigzone reported. The report states that almost two-thirds of Norway's petroleum resources lie in the Arctic region. The outcome of this policy debate could affect long-term non-OPEC supply forecasts and the competitive positioning of other stable oil-producing regions like the Bakken. In geopolitical news, the United States and...

🔆Midday Wire·May 29

Regulatory

US Strikes on Iran Targets, Hormuz Tensions Create Market Uncertainty

The U.S. carried out airstrikes on an Iranian military site near the Strait of Hormuz this week, according to Rigzone. The strikes, a second round this week, were accompanied by new U.S. sanctions aimed at preventing Tehran from profiting from vessels transiting the critical waterway. The action highlights the fragility of recent diplomatic momentum in the region, Rigzone reported. The heightened tensions caused ships to desert the Hormuz area following the fresh U.S. strikes, according to a separate Rigzone report. The Strait of Hormuz is a vital maritime chokepoint for global oil shipments, and any disruption there can have immediate effects on international crude benchmarks that influence Bakken crude prices. Traders balanced this geopolitical risk against ongoing diplomatic efforts, leading to mixed crude price movements. Rigzone reported that crude was mixed as traders weighed Iran truce talk optimism against falling U.S. crude inventories. This creates a volatile pricing environment where...

🔆Midday Wire·May 29

Production Data

Bakken Rig Count Steady at 28 Amid Oil Price Retreat

North Dakota's active drilling rig count held at 28 on Friday, May 29, 2026, according to Bakken Wire live data. This steady level of activity, combined with current oil prices, suggests a stable near-term outlook for Bakken production. The benchmark WTI crude price was $87.58, down $1.32 or 1.48% for the day. The Brent crude price was $91.17, down $1.53 or 1.65%. The Bakken crude differential was $-3.42 versus WTI, putting local wellhead prices around $84.16. Natural gas was priced at $3.34. Historically, the rig count is a leading indicator for future oil production in the Bakken formation. A sustained rig count level typically translates into consistent drilling and completion activity, which supports maintaining or modestly growing production volumes after a lag of several months. The current count of 28 rigs represents a fraction of the peak activity seen during previous boom cycles but indicates a maintained baseline of operational...

🔆Midday Wire·May 29

Workforce & Community

Bakken Rig Count Holds at 28 Amid Price Dip, Workforce Stability Seen

The active rig count in North Dakota's Bakken formation held steady at 28 on Friday, May 29, 2026, according to Bakken Wire's live data. This level of drilling activity, combined with a midday dip in oil prices, points to a period of relative stability for the region's workforce and local economies. West Texas Intermediate (WTI) crude was trading at $87.58, down $1.32 (-1.48%), while Brent crude was at $91.17, down $1.53 (-1.65%). The Bakken differential, the discount for Bakken crude compared to WTI, was $-3.42. Natural gas was priced at $3.34. In the Bakken, the rig count is a direct indicator of upstream oilfield employment, as each operating rig supports a crew of drilling and service personnel. A count of 28 rigs represents a baseline of steady, but not booming, activity. This suggests that hiring in the drilling sector is likely stable, with less volatility compared to periods of rapid...

🔆Midday Wire·May 29

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Slide on Iran Deal Rumors, Fed Warns on Inflation

Oil prices fell sharply on Friday, with West Texas Intermediate (WTI) crude trading down 1.25% to $87.79 per barrel. The global benchmark Brent crude declined 1.15% to $91.63, according to live market data. The Bakken crude differential narrowed to a discount of $3.42 per barrel versus WTI. The immediate price pressure was attributed to market rumors of a potential truce deal between the United States and Iran, according to a Rigzone summary. Traders balanced this geopolitical optimism against supportive fundamentals like falling U.S. crude inventories. The weekly rig count data provided a mixed signal for domestic supply. Baker Hughes reported the total U.S. active rig count rose to 562, down just one from a year ago, according to OilPrice.com. The number of active oil rigs increased by four to 429, though this remains 22 rigs below the level seen at this time last year. The Permian Basin saw the largest...

🌅Afternoon Wire·May 29

Rig Report

North Dakota Rig Count Climbs to 30 With Two New Additions

North Dakota's active drilling rig count rose to 30 on Friday, May 29, with two new rigs reported and none removed, according to live data from Bakken Wire. The count is up by five rigs from one week ago and up by seven from the 23 rigs active a month ago on April 29. The new additions include Phoenix Operating LLC's T&S DRILLING 2, located at 162-95-27 in Divide County, and HESS BAKKEN INVESTMENTS II, LLC's NABORS X-10, located at 154-93-8 in Mountrail County. No rigs were reported as moving location on Friday. The state's upward trend mirrors a national increase in drilling activity this week. According to data from Baker Hughes published Friday and reported by OilPrice.com, the total number of active drilling rigs for oil and gas in the United States rose, with the number of active oil rigs increasing by 4 to 429. The broader Permian Basin...

🌅Afternoon Wire·May 29

Operator News

Chevron CEO Reveals New Strait of Hormuz Attacks, Warns on Shipping Recovery

Multiple commercial vessels in the Strait of Hormuz were attacked this week, Chevron Corp. CEO Mike Wirth revealed in a Bloomberg TV interview on Friday. These previously unreported incidents underscore persistent security risks in the critical waterway despite diplomatic talks, according to OilPrice.com. The strait, which normally carries 20% of the world's petroleum, remains paralyzed with shipping traffic at roughly 10% of its pre-war levels. Wirth stated that Chevron currently has six third-party-chartered vessels operating within the Persian Gulf. He was adamant that his company will not pay any toll or fee to Iran for safe passage, a burden that would fall on the shipowners. Iran began demanding upfront cash payments of up to $2 million per tanker from select operators in March, a move the U.S. warns violates sanctions. For Bakken operators, prolonged disruption in the Strait of Hormuz supports a firmer global crude price floor by constraining Middle...

🌅Afternoon Wire·May 29

Global Markets

Global Energy Shifts Impact Markets, Colombia's Election Looms Large

Brent crude oil settled at a six-week low Friday as traders bet on a potential reopening of the critical Strait of Hormuz amid ongoing truce negotiations, according to Rigzone. The price decline reflects shifting global risk premiums that can influence the pricing environment for Bakken crude. Meanwhile, Colombia's pivotal 2026 presidential election is generating concern for its oil industry, which faces a sharp production decline due to current government policies, OilPrice.com reported. Under left-wing President Gustavo Petro, elected in 2022, Colombia banned new exploration contracts, raised taxes, and attempted to outlaw hydraulic fracturing. Data from Colombia's National Hydrocarbon Agency (ANH) shows oil output in March 2026 was 740,497 barrels per day, well below the 917,210 barrels per day produced a decade earlier. The policy-driven decline is also hitting natural gas, Colombia's single largest export which earned $12.5 billion in 2025. ANH data shows March 2026 gas output of 700 million...

🌅Afternoon Wire·May 29

Operator News

LNG Contract Awards, California Probe Highlight Energy Policy Divide

Major engineering and construction firms with ties to the Bakken supply chain secured new contracts for U.S. liquefied natural gas (LNG) projects on Friday, according to industry reports. Simultaneously, a political probe into a California offshore project underscored the regulatory challenges facing oil and gas development. Bechtel has been awarded an engineering, procurement, and construction (EPC) contract for an expansion of the Sabine Pass LNG facility in Louisiana, Rigzone reported. Cheniere Partners also issued a 'limited notice to proceed' for Bechtel to begin early engineering and procurement work for the project. In a separate contract, CB&I won a deal to build five large LNG storage tanks for the Commonwealth LNG project, also in Louisiana, Rigzone reported. Each tank will have a capacity of 1.77 million cubic feet. These Gulf Coast LNG developments are significant for Bakken producers, as they represent long-term demand centers for natural gas, a key byproduct of...

🌅Afternoon Wire·May 29

Pipeline & Infrastructure

Global LNG, Geopolitical Developments Shape Energy Market Context for Bakken

A new liquefied natural gas (LNG) terminal agreement and tentative diplomatic moves in the Middle East are shaping the global energy landscape, providing context for Bakken producers who compete in international markets. Transnet National Ports Authority has executed a 25-year terminal agreement with Ukwanda LNG for a regasification project at the Port of Ngqura in South Africa, according to Rigzone. The development of new global LNG import infrastructure can influence long-term demand patterns for natural gas, a key associated product from the Bakken formation. In the Middle East, the U.S. and Iran have tentatively agreed to extend a ceasefire by 60 days and launch further talks on Tehran's nuclear program, a person with knowledge of the matter told Rigzone. This follows U.S. airstrikes on an Iranian military site near the Strait of Hormuz on May 28 and the imposition of new sanctions, which Rigzone reported were meant to prevent Tehran...

🌅Afternoon Wire·May 29

Production Data

Bakken Rig Count Stalls at 30 as Oil Prices Dip

North Dakota's Bakken oil field activity remained static Friday, with the state's active rig count holding at 30, according to Bakken Wire live data. Concurrently, oil prices saw a moderate decline, with West Texas Intermediate (WTI) crude trading at $87.79, a drop of $1.11. The current rig count represents a key indicator for future production trends. Historically, the number of drilling rigs operating in North Dakota has a direct and lagged correlation with oil output. A sustained higher rig count typically leads to increased production several months later, while a lower or stagnant count suggests plateauing or declining output. The present level of 30 rigs is significantly lower than peak activity periods seen in previous decades when high prices spurred widespread drilling. The current count reflects a continued industry focus on capital discipline and efficiency, with operators concentrating on core acreage. Friday's price movement saw Brent crude at $91.63 and...

🌅Afternoon Wire·May 29

Workforce & Community

Bakken Rig Count Holds at 30 as Oil Prices Retreat

The number of active drilling rigs in North Dakota remained unchanged at 30 on Friday, May 29, providing a key indicator of sustained, moderate activity levels in the Bakken formation. This steadiness comes as crude oil prices saw a midday retreat, with West Texas Intermediate (WTI) trading at $87.79, down $1.11 for the day. The current rig count, a primary driver of direct oilfield employment, suggests a stable demand for drilling crews, completion teams, and associated field services. Historically, rig counts above 30 in North Dakota correlate with robust job markets in the state's western oil-producing counties, supporting roles from engineers and geologists to truck drivers and maintenance technicians. The Bakken region's differential to the WTI benchmark was reported at -$3.42 on Friday. This discount, while a factor in operator revenue, is not historically wide, suggesting Bakken crude remains competitively priced for transport to major markets. The price environment, with...

🌅Afternoon Wire·May 29