North American Rig Count Falls; SAF Deal, War Impact Profits

North America's active rig count fell for the eighth consecutive week, dropping seven rigs week-on-week, according to Baker Hughes' latest rotary rig count reported by Rigzone. The sustained decline in drilling activity is a key indicator of near-term operational tempo across the continent, including in the Bakken formation.

In a separate development, Phillips 66, United Airlines, and logistics firm DSV have entered a partnership for 42 million liters of sustainable aviation fuel (SAF), Rigzone reported. United Airlines will use the fuel, while DSV and Microsoft participate through a book and claim methodology, allowing verified emissions reductions to be allocated independently of physical fuel use. Such large-scale SAF agreements signal growing demand for low-carbon fuel products, which could influence long-term feedstock markets connected to refining.

Analysts have been cutting per-share profit forecasts for the three largest oilfield service companies since shortly after a conflict erupted in late February, Rigzone reported. This "war fallout" presents profit headwinds for major contractors, whose services are critical to Bakken operators for drilling and completion work.

For Bakken stakeholders, the roundup highlights mixed signals. The persistent weekly rig count decline suggests a cautious or contracting operational environment in North America, potentially reflecting broader market or cost pressures. Meanwhile, the major SAF deal underscores the energy transition's ongoing expansion into aviation, a sector that could eventually demand significant volumes of renewable hydrocarbons. Finally, the profit pressures on large service companies may trickle down to regional service providers in the Williston Basin, affecting costs and availability for local operators.