Global Green Hydrogen Struggles Signal Continued Oil Demand
Only 7% of announced green hydrogen capacity was completed on schedule, reinforcing the long-term role of fossil fuels like Bakken crude.
A major green hydrogen ambition and implementation gap is reinforcing the enduring global demand for oil and gas, a dynamic that supports the long-term outlook for North Dakota's Bakken formation. According to a study published in the journal Nature Energy, only 7% of announced global green hydrogen capacity was finished on schedule in 2023, tracking 190 projects over three years.
The struggles of the green hydrogen sector extend to key markets like California, which has bet big on the fuel for transportation. Despite this push, hydrogen currently costs four times more per mile than gasoline, even with elevated gas prices driven by turmoil in the Strait of Hormuz, OilPrice.com reported. The number of hydrogen cars registered in California decreased in 2025 to approximately 14,000, and the number of fueling stations shrank from 65 in 2023 to 57 as of August 2026.
Investor hesitancy is a major factor. "With a couple of exceptions, vehicle manufacturers, fleet owners and transit agencies are hesitant to invest in hydrogen products when they don't know whether the fuel and filling stations will be there," the LA Times reported, according to the OilPrice.com summary. The state is reportedly reluctant to fill funding gaps after industry setbacks left only one truck maker and one bus maker selling hydrogen vehicles in North America.
These persistent economic and logistical challenges for alternative fuels underscore the continued reliance on conventional energy. For Bakken operators, the slow pace of green hydrogen adoption—particularly in hard-to-abate sectors like long-haul transport that the Bakken often supplies—suggests a more stable demand horizon for crude oil. While enthusiasm for green hydrogen has waxed and waned, with the war in Iran briefly renewing interest as an alternative to oil and gas, the sector faces major economic headwinds.
The analysis indicates that green hydrogen's most viable applications may be rethought to focus on industry, long-duration energy storage, and long-haul transport, areas where Bakken production already plays a key role. The failure of green hydrogen to scale as quickly as planned reinforces the critical, ongoing role of prolific oil-producing regions like the Williston Basin in meeting near- and medium-term global energy needs.
Source
OilPrice.com, citing a study in *Nature Energy* and reporting from the LA Times.
