Global LNG, Blockade News Frame Volatile Market for Bakken

President Donald Trump has directed aides to prepare for an extended U.S. Naval blockade of the Strait of Hormuz, according to a Wall Street Journal report cited by Rigzone. The move aims to intensify economic pressure on Iran by stopping vessels heading to or from its ports, suggesting a prolonged period of uncertainty for the critical oil and gas chokepoint. Brent crude settled above $111 a barrel on concerns the strait could remain shut indefinitely.

The geopolitical shift was underscored as the United Arab Emirates announced its departure from OPEC on Tuesday. UAE Energy Minister Suhail Al Mazrouei said the decision was timely as the war-caused market undersupply requires agility, dealing a blow to the cartel, Rigzone reported.

Amid this volatility, major LNG producers reported first-quarter results showing their trading arms capturing market upside. TotalEnergies SE posted a net profit of $5.4 billion for Q1 2026, up 41% from the prior quarter, driven by its LNG segment benefiting from market volatility, according to Rigzone. The French giant raised its Q1 dividend by 5.9% and confirmed share repurchases of up to $1.5 billion for Q2.

Similarly, Woodside Energy Group Ltd. reported its LNG shipments have not been impacted by the Middle East conflict and it has avoided increased costs from higher carrier rates. "Woodside does not currently have any controlled shipping that traverses Iranian waters or the Straits of Hormuz," the company stated in its quarterly report, according to Rigzone.

Woodside's LNG sales rose to 22 million barrels of oil equivalent (MMboe) in Q1, up from 20.47 MMboe the prior quarter. CEO Liz Westcott noted "modest increases" to realized pricing driven by elevated spot prices, with further benefits expected in subsequent quarters due to lagged contracts. However, the company's total production fell 8% year-on-year to 45.2 MMboe, impacted by a severe tropical cyclone in Western Australia.

TotalEnergies' production held stable at 2.55 MMboe per day despite war-related shutdowns in Iraq, Qatar, and the UAE affecting 15% of its output. The company's integrated LNG segment saw adjusted net operating profit rise 43% quarter-on-quarter to $1.32 billion.

The reports highlight how global LNG players are navigating the disrupted market. For Bakken operators, the sustained high oil price environment and the UAE's OPEC exit point to continued tight global supply conditions, while the focus on secure trade routes underscores the relative stability of domestic production and midstream networks.