Bakken Drilling Economics Strengthen as WTI Holds Above $90

The economics of drilling new wells in North Dakota's Bakken formation remain favorable with West Texas Intermediate crude holding above $90 per barrel, according to current market data. As of Thursday, May 7, 2026, WTI was trading at $91.98, though it had fallen $3.10 on the day. The international benchmark Brent crude stood at $98.13.

At these price levels, operators can achieve solid returns on new wells, which typically cost between $7 million and $8 million to drill and complete in the Bakken. The expected ultimate recovery (EUR) for a modern Bakken well often ranges from 300,000 to 500,000 barrels of oil equivalent over its lifetime, though results vary by location and operator.

The recent strength in oil prices significantly improves the net present value and internal rate of return for a typical new well. While well costs have risen from historical lows due to service inflation, sustained prices near or above $90 provide a substantial margin for profitable development. This economic environment supports the current level of drilling activity, with 23 rigs actively working across the state.

However, the day's $3.10 drop in WTI underscores the market volatility that Bakken operators must navigate. Price swings can quickly alter the projected returns for a well, influencing decisions on whether to accelerate or postpone drilling plans. The economics are highly sensitive to the oil price realized at the wellhead, which is typically discounted from the WTI benchmark due to transportation and quality differentials.

The active rig count of 23 suggests operators are continuing to develop their core acreage, likely focusing on the most productive areas within the Bakken and Three Forks formations to maximize returns. The current price environment, if sustained, is expected to keep drilling activity steady, though a significant or prolonged downturn could prompt a reassessment of capital spending.

For mineral rights owners and service companies in the Williston Basin, the robust pricing provides continued royalty income and activity. The fundamental economics of the Bakken play rely on a balance between technological efficiency, which has boosted well productivity, and commodity prices, which dictate cash flow.