Global Tensions Spike Oil Prices; ND Tech Eyes Geothermal Future

Global oil prices surged Monday after a military clash between the U.S. and Iran in the Persian Gulf, reviving supply concerns for Bakken producers. Meanwhile, North Dakota researchers reported that oilfield fracking technology could be key to developing commercial geothermal energy in the state.

The U.S. military fought off attacks from Iranian drones, missiles, and armed small boats on Monday while facilitating the passage of two U.S.-flagged vessels through the Strait of Hormuz, according to Rigzone. The United Arab Emirates also reported intercepting Iranian cruise missiles and blamed an Iranian drone strike for a fire at its Fujairah port. The violence shook a four-week ceasefire that began April 8 and prompted calls for renewed strikes on Iranian targets.

Oil prices reacted sharply to the renewed threat to tankers in the Strait of Hormuz, a chokepoint for about a fifth of the world’s oil. International benchmark Brent crude surged 5.8 percent Monday before pulling back toward $113 a barrel on Tuesday, Rigzone reported. West Texas Intermediate was near $104.

Separately, North Dakota's Energy and Environmental Research Center (EERC) presented a report last week suggesting the state's oil and gas expertise could enable geothermal power generation. The tightness of western North Dakota's rock formations poses a challenge for geothermal, but fracturing those formations could create the necessary permeability, according to a report by the EERC cited by Bing News.

“It’s something that was previously cost-prohibitive, though with advancements in oil and gas technology, and obviously fracking, it’s brought that cost curve down,” said Tyler Hamman, assistant vice president for strategic partnerships with the EERC. He compared the current state of enhanced geothermal technology to the start of the shale revolution.

Hamman cautioned that significant feasibility work remains, particularly on cost-effectiveness in North Dakota's formations. He suggested refining the regulatory framework to encourage development. Currently, about 90% of U.S. commercial geothermal production is in California and Nevada.

In other global energy news, Nigeria's state oil company NNPC announced a memorandum of understanding Monday with two Chinese firms to restart the Port Harcourt and Warri refineries, Rigzone reported. The refineries, with a combined crude distillation capacity of 335,000 barrels per day, were reactivated in 2024 but shut down again within a year for financial and technical reviews. The proposed partnership aims to complete rehabilitation work and operate the facilities.

For Bakken operators, the Persian Gulf flare-up serves as a reminder of the geopolitical risks that can rapidly tighten global supply and support prices. The in-state geothermal research highlights a potential long-term application for the region's drilling and completions expertise beyond fossil fuels.