G7 Minerals Alliance, China's Offshore AI Push Shape Global Energy Landscape

The G7 nations have formed a strategic alliance aimed at breaking China's dominance over the supply chains for critical minerals and rare earth elements, according to a declaration from the summit in Evian, France. The alliance, reported by OilPrice.com, commits the nations to coordinating efforts to diversify critical minerals value chains, which are crucial for defense, automotive, and clean energy industries. The G7 expressed concerns about "non-market policies and practices and economic coercion," including arbitrary export restrictions on these materials.

China currently holds a dominant position, refining an average of 70% of 20 critical minerals analyzed by the International Energy Agency. For rare earths specifically, China's share is 91% in refining and 94% in magnet manufacturing, a component vital for powerful motors used in everything from wind turbines to defense systems. This concentration presents risks of price volatility and supply disruption, the IEA warns. The G7 response includes plans to stockpile critical minerals and share data on market stress, though the practical impact on China's control remains unclear.

Simultaneously, China is advancing its artificial intelligence sector with innovative, energy-intensive infrastructure. As reported by OilPrice.com, China launched the world's first wind-powered underwater data center off Shanghai in May 2026, a $238 million project. The facility uses over 95% green electricity and reduces energy consumption by 22.8% compared to land-based equivalents by using seawater for cooling. This push for energy-efficient, renewable-powered data centers is part of a broader competition with the United States for AI leadership.

While these developments do not directly involve Bakken crude, they frame the broader energy and geopolitical landscape in which North Dakota operators function. The G7's focus on securing non-fuel mineral supply chains underscores a global shift toward economic resilience, which could influence long-term investment in domestic energy projects, including those in the Williston Basin. Furthermore, China's massive investment in green energy for its AI boom highlights the growing global competition for reliable power, a sector where U.S. natural gas—and by extension, associated gas from oil plays like the Bakken—plays a stabilizing role.

In a related development pointing to sustained global demand for U.S. hydrocarbons, Venture Global executed new agreements to supply approximately 0.82 million metric tons per annum of U.S. liquefied natural gas to Germany's EnBW for five years, Rigzone reported. Such LNG contracts reinforce the importance of U.S. natural gas production, which includes significant contributions from Bakken gas processing plants.

For Bakken stakeholders, these global trends emphasize the interconnected nature of energy markets. Strategic moves to secure supply chains and the rising power demands of the digital economy could indirectly bolster the argument for diversified, secure North American energy production, even as the focus on critical minerals for the energy transition continues.