Global Roundup: BP Chair Ousted, ND Wells Hit Record Amid War Impact

The chair of BP has been fired after less than a year following "serious concerns" about his conduct, according to OilPrice.com. Albert Manifold was stripped of his roles as chair and director after the board unearthed several cases of serious misconduct, including reports of a "volcanic" temper, verbal abuse, and bullying. Director Amanda Blanc stated the board learned of "governance oversight and conduct issues it deems unacceptable." Shares in BP fell more than eight percent on the news. This extends a period of turmoil at the company, which pushed out its previous chair Helge Lund just 10 months ago.

While BP faces internal instability, North Dakota's oil industry is experiencing operational growth driven by geopolitical events. According to Bing News, North Dakota produced 35.4 million barrels in March, or 1.142 million barrels per day, a near 1% increase from February. A key distinction is that the number of producing wells reached a record high of 19,639 active wells, up 224 from the previous month. The state Department of Mineral Resources attributes this to the impact of the U.S. war with Iran, which began on Feb. 28 and closed the Strait of Hormuz, a key oil shipping corridor.

Assistant Director Mark Bohrer noted companies are taking advantage of higher oil prices. When Continental Resources founder Harold Hamm paused new drilling in January, West Texas Intermediate crude was around $60 per barrel. By Friday, May 22, the WTI price was $101.02 per barrel. North Dakota's market price for its oil was $84.33 per barrel in March, up significantly from $57.74 in February. Bohrer said the current number of drilling rigs operating in North Dakota is 25, but is expected to rise, following Hamm's announcement Thursday that Continental will resume drilling new rigs in the state.

On the federal lands front, the U.S. Department of the Interior generated over $4 billion in total receipts from a Bureau of Land Management oil and gas lease sale in New Mexico and Texas, Rigzone reported. This significant capital commitment to domestic leasing underscores continued industry investment in U.S. production.

For Bakken operators, the juxtaposition of corporate governance crises in major international firms and robust local activity highlights a focus on operational execution. North Dakota's record well count and rising prices, fueled by global conflict, provide a favorable environment, even as the industry watches for potential volatility from events like leadership changes at integrated giants like BP.