Global LNG Disruptions, Slowing U.S. EV Shift Signal Support for Bakken Gas, Oil

Ongoing strikes at major Australian liquefied natural gas (LNG) facilities, combined with a slow expected recovery for Qatari exports, are tightening global gas supply, a dynamic that supports the market for associated natural gas produced in North Dakota's Bakken formation. According to OilPrice.com, workers at Inpex’s Ichthys LNG facilities have escalated strikes to work stoppages of up to 8 hours per day, with a senior official stating, “We anticipate imminent disruption to production.” The report notes Australia is the world's second-largest LNG supplier while most Qatari output remains shut-in.

The supply constraints come as a U.S.-Iran deal to reopen the Strait of Hormuz could be signed as soon as Friday, June 19, 2026. However, a full recovery of Middle Eastern LNG will take time. OilPrice.com reported that QatarEnergy has told customers it could restore about 50% of its production capacity within a month after the Strait reopens safely, reaching 80% within two months. This prolonged timeline for a return of full Qatari volumes extends the period of tight global supply, which could bolster prices for U.S. LNG exports, a key outlet for growing domestic gas production.

Simultaneously, a sharp downward revision in U.S. electric vehicle adoption forecasts points to more resilient long-term demand for gasoline and diesel refined from Bakken crude. BloombergNEF has slashed its projection for the EV share of U.S. passenger vehicle sales in 2030 from 27% to just 17%, according to OilPrice.com. The report attributes this to the Trump Administration ending incentives for electric vehicles. This slowdown in U.S. EV momentum contrasts with accelerating global adoption driven by recent fuel price spikes, but it suggests domestic transportation fuel demand may decline more slowly than previously expected, supporting the market for Bakken oil.

The global LNG market is seeing increased demand for U.S. cargoes, as evidenced by a separate deal for American supplies. Rigzone reported that Venture Global and Atlantic-See LNG Trade amended an agreement to allow the delivery of 1 million metric tons per annum of U.S. LNG to Greece. This growing outlet for U.S. gas, amid global disruptions, strengthens the economic case for capturing and marketing associated gas from Bakken oil wells.

For Bakken operators and royalty owners, these intersecting trends create a supportive backdrop. Tighter global LNG markets improve the economics for gas capture infrastructure and gas sales in the region. The revised, slower path for U.S. electric vehicle adoption reduces a key long-term demand risk for the crude oil produced alongside that gas, underscoring the continued importance of the Williston Basin's hydrocarbon production.