Saturday, May 2, 2026

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Oil Prices

Oil Prices Drop Over 2% Amid SPR Release, OPEC Uncertainty

Crude oil prices fell sharply in Friday trading, with West Texas Intermediate (WTI) dropping nearly 3% to settle at $101.94 per barrel. The global benchmark Brent crude also declined, finishing at $108.17. The Bakken differential, the discount for North Dakota crude compared to WTI, was $3.42. The price decline coincides with a major U.S. government intervention in the market. According to Rigzone, the U.S. Department of Energy announced it has delivered a "historic Request for Proposal execution to secure global oil supply stability," continuing the 'swift execution' of a 172-million-barrel Strategic Petroleum Reserve (SPR) exchange. This significant release of federal oil inventories adds immediate supply to the market, applying downward pressure on prices. Further market uncertainty stemmed from geopolitical shifts within OPEC. Rigzone also reported that U.S. President Donald Trump reacted to the United Arab Emirates' decision to withdraw from the oil producer cartel. The exit of a key member...

☀️Morning Wire·May 2

Rig Report

North Dakota Rig Count Holds at 23 for Third Straight Week

North Dakota's active drilling rig count remained unchanged at 23 on Saturday, May 2, according to live data from Bakken Wire. The count showed no new additions, removals, or location changes from the previous day. This marks the third consecutive week of stability for the state's primary oil-producing region. The rig count has held steady at 23 since at least April 25, and is identical to the level reported a month ago on April 2. The static local activity contrasts with a modest uptick in national drilling. According to a report from OilPrice.com, the total number of active drilling rigs for oil and gas in the United States rose this week. Baker Hughes data published on May 1 showed the national count at 547, though this remains 37 rigs below the level seen at the same time last year. The national increase was driven by a gain of one oil...

☀️Morning Wire·May 2

Daily Activity

Iron Oil Operating Leads Bakken Permitting with Two New Wells in Mountrail

The North Dakota Department of Mineral Resources approved three new drilling permits on Friday, May 1, according to the agency's daily activity report. Iron Oil Operating LLC was the most active operator, securing two of the three permits. Iron Oil Operating's permits are for the TWIN TRACTOR 1-14-2H and TWIN TRACTOR 3-23-35H wells, both located in Mountrail County within the prolific Parshall field. The third permit was issued to Zavanna Energy Operating LLC for the BOXER 22-3 11H well in Williams County. The Zavanna permit is listed for a 'CONFIDENTIAL' field. The report also detailed nine wells that were released from confidential status, revealing previously undisclosed operator activity. Hess Bakken Investments II, LLC had two wells released in Mountrail County's Big Butte field: the EN-ROHDE- 157-94-3625H-2 and EN-ROHDE- 157-94-3625H-3. Devon Energy Williston, L.L.C. also had two wells, the BARBARA 31-30F 6TFH and BARBARA 31-30F 2TFH, released in McKenzie County. Other...

☀️Morning Wire·May 2

Operator News

Chevron Q1 Earnings Beat Estimates on Higher Oil Prices

Chevron Corp. reported first-quarter earnings that beat analyst expectations, driven by higher crude prices that lifted its upstream business, according to reports from OilPrice.com and Rigzone. The performance offers a mixed but largely positive signal for its operations, which include significant holdings in North Dakota's Bakken formation. Adjusted earnings came in at $1.41 per share, surpassing estimates. The company's upstream segment delivered $3.9 billion, a 4% increase year-on-year, OilPrice.com reported. Chevron attributed the gain to a surge in crude prices during the quarter, which was fueled by geopolitical disruptions including the Iran conflict and issues in the Strait of Hormuz. For Bakken operators and royalty owners, a key takeaway is the stability of Chevron's U.S. production. The company held U.S. output above 2 million barrels per day (bpd) for the third consecutive quarter. This consistent performance underscores the ongoing importance of domestic assets like those in the Williston Basin, even...

☀️Morning Wire·May 2

Global Markets

Global Supply Shocks, Inventory Role Shape Bakken Price Outlook

Global oil markets are facing renewed supply pressure from geopolitical conflict, while analysts point to inventories as the key buffer against shocks, developments that directly influence the pricing environment for Bakken crude. Ukrainian drones struck a major refinery deep inside Russia and attacked a nearby oil pumping station on May 1, according to a report from Rigzone. The attacks further cripple Moscow's crude processing capability, introducing a new risk premium to global oil prices by threatening refined product supplies. Simultaneously, analysts at J.P. Morgan noted that in the current "war driven oil shock," inventories have become the market's primary balancing mechanism, Rigzone reported on May 1. This highlights the critical role global stockpiles play in absorbing sudden supply disruptions and mitigating extreme price volatility. For Bakken operators and royalty owners, these intertwined factors create a complex pricing landscape. Attacks on Russian refining capacity can tighten the global refined product market,...

☀️Morning Wire·May 2

Global Markets

Global Supply, Demand Shifts Pose Risks and Opportunities for Bakken

The global energy landscape is shifting under the combined pressures of surging new demand and geopolitical volatility, creating a complex market environment for Bakken operators. Three key developments reported this week highlight the competing forces influencing oil prices and long-term energy planning. An unprecedented surge in energy demand from the artificial intelligence sector is emerging as a major new factor. According to OilPrice.com, the AI boom has created an "energy monster," with data center power needs expected to rise sharply as AI integrates into global markets. In May, following voter outcry ahead of U.S. midterm elections, major tech firms pledged to purchase or provide their own power to shield consumers from rising prices. This has spurred investments in futuristic energy projects, including a deal announced this week between Meta and startup Overview Energy to develop up to 1 gigawatt of space-based solar power. However, the technology remains theoretical, with a...

☀️Morning Wire·May 2

Operator News

Oil Prices Dip Amid Iran Tension; Texas JV Boosts Gas Output

Oil prices slipped on Friday as uncertainty around U.S.-Iran negotiations tempered recent gains, according to Rigzone. The development follows Iran delivering a new proposal to the U.S. while President Donald Trump vowed to maintain a naval blockade in the Strait of Hormuz, a critical global oil chokepoint that remains shut. For Bakken operators and royalty owners, the fluctuating price environment directly impacts drilling economics and state revenue. The standoff in the Middle East creates a volatile backdrop for North Dakota's crude, which competes in a global market sensitive to supply disruptions and geopolitical risk. Price stability is a key factor for sustaining activity levels in the Williston Basin. In other operator news, the joint venture Caturus, formed by Kimmeridge and Mubadala, has raised its production to over 1 billion cubic feet per day (Bcfd), Rigzone reported. This follows the completion of its $950 million acquisition of the Galvan Ranch assets...

☀️Morning Wire·May 2

Pipeline & Infrastructure

Norwegian Producer OKEA Posts Q1 Profit; ENEOS Returns to Malaysian LNG

Norwegian oil and gas producer OKEA ASA reported a return to profitability for the first quarter of 2026, according to Rigzone. The company posted a net income of $36 million, bouncing back from losses in the prior quarter and showing an increase compared to the same period last year. Rigzone reported the improved results were driven by higher sales volumes and realized oil prices. In a separate international development, Japan's ENEOS Group is set to re1enter a major liquefied natural gas (LNG) project in Malaysia. Rigzone reported that Malaysia's national oil and gas company, Petronas, signed a deal to give ENEOS a 10 percent ownership stake in the Malaysia LNG Tiga facility. While these developments are centered overseas, they reflect broader trends in global hydrocarbon investment and infrastructure that can influence the Bakken formation. North Dakota's oil production is heavily dependent on efficient takeaway capacity via pipelines and, increasingly, rail...

☀️Morning Wire·May 2

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Drop Over 2% Amid SPR Release, UAE OPEC Exit

Front-month WTI crude oil futures fell sharply in midday trading Saturday, May 2, down $3.13 to settle at $101.94 per barrel, a decline of 2.98 percent. The global benchmark Brent crude followed, dropping $2.23 to $108.17 per barrel. The discount for Bakken crude at the wellhead widened to $3.42 below WTI, according to live market data. The price slide coincides with two major supply-side developments. According to a statement from the U.S. Department of Energy (DOE), the agency is continuing the "swift execution" of a massive 172 million barrel release from the Strategic Petroleum Reserve (SPR). A new Request for Proposal for an emergency exchange of up to 92.5 million barrels was issued, with bids due May 4. This action is part of a coordinated 400 million barrel release by International Energy Agency member nations, Rigzone reported. In its statement, the DOE said this builds on three previous exchanges that...

🔆Midday Wire·May 2

Operator News

Exxon, Chevron Beat Q1 Estimates Amid War-Driven Price Surge

Exxon Mobil Corp. and Chevron Corp., two of North Dakota's major Bakken Shale operators, reported stronger-than-expected first-quarter earnings, driven by surging oil and natural gas prices that outweighed production outages from the Iran war. Exxon's profit, excluding one-time items, was $4.9 billion, or $1.16 per share, beating the average analyst estimate by 20 cents, according to Rigzone. Surging energy prices boosted the company's earnings by $1.7 billion, more than offsetting a $400 million impact from war-related production outages. Roughly 15% of Exxon’s worldwide output remains offline, Chief Financial Officer Neil Hansen said. Chevron's adjusted per-share profit reached $1.41, which was 51 cents higher than analysts expected, Rigzone reported. The company benefited from surging prices for crude and gas, though its production dipped roughly 5% sequentially. Both companies had warned Wall Street last month about negative impacts from the Middle East conflict, which led analysts to lower their estimates. The results...

🔆Midday Wire·May 2

Pipeline & Infrastructure

North Dakota Marks 75 Years of Oil Production, Industry Evolves

North Dakota is marking 75 years since the discovery that launched its modern oil industry, according to a report from Bing News. Crews first struck oil near Tioga on April 4, 1951. The anniversary highlights the long-term evolution of the state's energy sector, which today is centered on the prolific Bakken formation in the Williston Basin. The initial discovery paved the way for decades of development. For current Bakken operators, the milestone underscores the enduring importance of pipeline infrastructure to move crude oil to market. Pipelines are the safest and most efficient method for transporting the region's substantial production. The development of takeaway capacity has been a consistent theme throughout the industry's history. Adequate pipeline infrastructure is central to maintaining production levels and economic stability for operators and royalty owners. While the initial discovery was modest by today's standards, it established North Dakota as an energy-producing state. The subsequent development...

🔆Midday Wire·May 2

Global Markets

Global Inventories Cushion Supply Shock, But Accessibility Concerns Mount

Global oil inventories are serving as the primary shock absorber for markets disrupted by ongoing conflict, but accessible supplies are limited, according to a new J.P. Morgan analysis. For Bakken operators, the dynamics underscore the critical role of global stockpiles in stabilizing prices amid supply uncertainty. J.P. Morgan analysts, including head of global commodities strategy Natasha Kaneva, stated in a report that inventories have become the market's main balancing mechanism. "Unlike a typical disruption where spare production capacity can be mobilized quickly, the location of the shock and the scale of current supply losses mean the immediate adjustment has to come from barrels already in storage," the analysts said, according to Rigzone. The report detailed that the world began 2026 with an estimated 8.4 billion barrels in total storage. However, the analysts warned that not every barrel is readily available. "Out of the 8.4 billion barrels in global inventories, we...

🔆Midday Wire·May 2

Global Markets

Global Tensions Fuel Oil Volatility as Standing Rock Anniversary Marked

Global oil prices remained volatile Friday, closing a second consecutive week of gains as a military and diplomatic stalemate between the U.S. and Iran continued to block the vital Strait of Hormuz, according to Rigzone. The closure of the strait, which handled a fifth of the world's oil and LNG before the conflict, is contributing to a global energy crisis and supporting benchmark prices, with Brent crude trading around $110 a barrel and West Texas Intermediate near $102. The key leverage point is control of the strategic waterway, with both sides signaling they are waiting for the other to move first to ease restrictions, Rigzone reported. Iran delivered a new proposal to the U.S. via Pakistan on Friday, but its contents were not disclosed. U.S. President Donald Trump vowed to maintain a naval blockade of Iranian ports, claiming it deprives Tehran of oil revenue. In response, Iranian officials argue the...

🔆Midday Wire·May 2

Operator News

Caturus JV Hits 1Bcfd, OKEA Profits, Asian LNG Deals Advance

Caturus HoldCo LLC has completed its $950 million acquisition of the Galvan Ranch asset in South Texas from SM Energy Co, raising the net production of the Kimmeridge-Mubadala joint venture to over 1 billion cubic feet per day (Bcfd). According to a statement from Caturus, the deal adds approximately 60,000 net acres and about 250 MMcfe/d of production from 260 wells, positioning the JV among the top 10 private pure-play U.S. gas producers. CEO David Lawler stated the asset complements existing holdings with "deep inventory and strong operating characteristics" for supplying Gulf Coast demand. The transaction underscores the "wellhead-to-water" strategy of the Caturus platform, which also owns the Commonwealth LNG export project in Louisiana. Caturus reported the project is fully commercialized with long-term agreements with buyers including Aramco Trading and Glencore, and is advancing toward a final investment decision. The first phase represents a $12.5 billion investment targeting $3.5 billion...

🔆Midday Wire·May 2

Pipeline & Infrastructure

Pemex Spill, AI Energy Demand, Iran Crisis Impact Global Oil Dynamics

A major oil spill from a Pemex pipeline in Mexico's Gulf of Mexico is drawing scrutiny to pipeline safety and maintenance practices globally. According to a report from OilPrice.com, the spill from a pipeline in the Cantarell field created a slick covering 19 square miles that spread over 370 miles of coastline in February. Pemex CEO Victor Rodriguez stated the leak was repaired without the company's leadership being made aware, leading to vows of protocol overhauls and executive resignations. Environmental groups estimate up to 800 tons of oil were spilled, causing significant damage to coastal ecosystems and local fishing and tourism economies. Separately, the surging energy demand from artificial intelligence (AI) and data centers is prompting major tech firms to seek radical new power sources, though fossil fuels remain a current backbone. OilPrice.com reports that Big Tech companies, facing voter and consumer pressure over rising energy costs, have pledged to...

🔆Midday Wire·May 2

Production Data

North Dakota Rig Count Holds at 23 as Oil Prices Retreat

North Dakota's active drilling rig count held steady at 23 on Saturday, May 2, 2026, as high but volatile crude oil prices continue to set the stage for Bakken production trends. The current rig level, while up significantly from lows seen earlier in the decade, remains far below the boom-era peaks, pointing to a continued focus on capital discipline and efficiency by operators. The price of West Texas Intermediate (WTI) crude was trading at $101.94 per barrel, according to midday data, representing a sharp daily drop of $3.13. Brent crude also fell to $108.17. The Bakken crude differential—the discount at which local crude trades versus the WTI benchmark—was $3.42. Natural gas prices were at $2.78 per MMBtu. Historically, the rig count is a leading indicator for future oil production, with a typical lag of several months between drilling activity and new wells coming online. The current count of 23 rigs...

🔆Midday Wire·May 2

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Drop Sharply as SPR News, OPEC Dynamics Weigh on Market

Front-month WTI crude oil futures fell sharply on Saturday, dropping $3.13 to settle at $101.94 per barrel, a decline of 2.98%. The global Brent benchmark also fell, losing $2.23 to $108.17. The price drop widened the discount for Bakken crude at the Clearbrook, Minnesota hub to $3.42 per barrel below WTI. The sell-off was attributed to market reactions to two significant developments. According to Rigzone, the U.S. Department of Energy is continuing the "swift execution" of a 172-million-barrel Strategic Petroleum Reserve exchange. The agency announced a historic Request for Proposal execution aimed at securing global oil supply stability, a move that adds physical barrels to the market and exerts downward pressure on prices. Simultaneously, geopolitical tensions within OPEC are creating market uncertainty. Rigzone also reported that U.S. President Donald Trump reacted to the United Arab Emirates' decision to withdraw from the oil producers' cartel. The UAE's exit threatens to undermine...

🌅Afternoon Wire·May 2

Rig Report

North Dakota Rig Count Holds at 23 for Third Consecutive Week

North Dakota's active drilling rig count remained unchanged at 23 on Saturday, May 2, 2026, according to live data from Bakken Wire. The tally showed no new rigs added, none removed, and no rigs moving location since the previous day. This marks the third consecutive week the count has held precisely at 23 rigs. Data from one week ago, on April 25, 2026, also showed 23 active rigs. The stability extends back at least one month, with the count also at 23 on April 2, 2026. The prolonged plateau suggests a period of capital discipline and operational consistency among Bakken operators. With no weekly or monthly fluctuation, companies appear to be executing a steady, measured drilling program focused on core acreage. The rig count is a key leading indicator for future oil production in the Williston Basin. A rig count in the low 20s represents a fraction of the activity...

🌅Afternoon Wire·May 2

Operator News

Exxon, Chevron Q1 Earnings Top Analyst Expectations

Exxon Mobil Corp. and Chevron Corp. reported first-quarter earnings that exceeded analyst estimates, according to a report from Rigzone. The stronger-than-expected profits for the two U.S. energy giants were posted on May 1. While the specific financial figures were not detailed in the summary, beating profit estimates typically indicates resilient commodity prices and effective cost management. For operators across the Williston Basin, the performance of integrated majors like Exxon and Chevron serves as a key barometer for broader industry health. The positive earnings surprise suggests the upstream sector entered 2026 on solid footing. This financial strength at the top of the industry can support continued capital discipline and potentially steady investment levels. For Bakken-focused producers, a stable macro environment signaled by major earnings helps in planning drilling programs and managing operations. The Bakken formation remains a cornerstone of U.S. tight oil production. News of robust earnings from leading companies often...

🌅Afternoon Wire·May 2

Global Markets

Sanctions Shift and Asia Fuel Crunch Highlight Global Market Stress

The global energy system is under "extreme stress" as the U.S.-Israel conflict with Iran enters its third month, according to a summary from Rigzone citing Chevron Corp. CEO Mike Wirth. This strain is triggering significant policy shifts and trade flows that directly impact the global oil price environment crucial to Bakken producers. In response to the market disruption caused by the February U.S.-Israeli attack on Iran and the subsequent closure of the Strait of Hormuz, the U.S. Treasury Department has eased sanctions on Russian oil. According to OilPrice.com, the Treasury extended a sanctions exemption on April 16, permitting the sale of some Russian crude until at least May 16. A Treasury spokeswoman stated the move aims "to ensure all oil is available to those who need it." This waiver is expected to decrease global oil costs by allowing hundreds of millions of barrels of Russian crude to be legally purchased....

🌅Afternoon Wire·May 2

Global Markets

Global Roundup: Standing Rock Anniversary, BP's Pivot, Pemex Spill

Ten years after the historic Standing Rock movement began, the Dakota Access Pipeline (DAPL) continues to transport between half a million and 750,000 barrels of crude oil per day with plans to increase capacity to over one million barrels daily, according to a report from ICT. The pipeline, which crosses the Missouri River less than a mile from the Standing Rock Sioux Reservation, was the focal point of a massive protest movement in 2016 that drew global attention and participants from hundreds of tribes. Janet Alkire, former chairwoman of the Standing Rock Sioux Tribe (2021-2025), called it an "awakening" comparable to the Civil Rights Movement. The tribe's fight continues through legal challenges and demands for more information from operator Energy Transfer on pipeline conditions and any leaks. In corporate strategy, BP has executed a dramatic pivot back to its core oil and gas business under new CEO Meg O'Neill, OilPrice.com...

🌅Afternoon Wire·May 2

Operator News

Oil Prices Dip Amid Iran Talks Uncertainty; Texas JV Deal Closes

Oil prices slipped on Friday as uncertainty around renewed negotiations between the U.S. and Iran tempered recent gains, according to Rigzone. The development comes as Iran delivered a new proposal to the U.S. while President Donald Trump vowed to maintain a naval blockade in the Strait of Hormuz, a critical global oil chokepoint that remains shut. For Bakken producers, the fluctuation in global benchmark prices directly impacts the economics of drilling and completion programs in North Dakota. While the region's light sweet crude is primarily shipped to domestic refiners, its price is still tethered to international swings driven by geopolitical events. The ongoing closure of the Strait of Hormuz represents a persistent risk premium in the market, though immediate price action reflects trader caution over the potential for a diplomatic breakthrough. In other operator news, private equity firm Kimmeridge and sovereign wealth fund Mubadala have raised production from their joint...

🌅Afternoon Wire·May 2

Pipeline & Infrastructure

Global Energy Shifts Highlight Bakken's Market Context

A Norwegian oil and gas producer's return to profitability underscores the impact of price and volume on operators, a dynamic relevant to Bakken firms. OKEA reported a net income of $36 million for the first quarter of 2026, bouncing back from losses in the prior quarter and showing a year-on-year increase, according to Rigzone. The company cited higher sales volumes and realized oil prices as drivers. Globally, analysts point to inventories as a key market stabilizer, a mechanism that also influences pricing for landlocked Bakken crude. "In this war driven oil shock, inventories have become the market's primary balancing mechanism," J.P. Morgan analysts said in a note reported by Rigzone. This reliance on storage acts as a shock absorber for the global oil system. Meanwhile, a liquefied natural gas (LNG) project in Malaysia is moving forward with a new partner, highlighting continued global investment in gas infrastructure. Rigzone reported that...

🌅Afternoon Wire·May 2

Production Data

Bakken Rig Count Holds at 23 as Oil Prices Retreat from Highs

North Dakota's Bakken formation is operating with 23 active drilling rigs, according to live data from Bakken Wire. This steady count comes amid a volatile crude oil market, with West Texas Intermediate trading at $101.94 per barrel, down $3.13 or 2.98% on the day. The international Brent benchmark was at $108.17, down $2.23. The current rig count represents a baseline of drilling activity in the state's primary oil-producing region. Historically, the rig count is a leading indicator for future production, as new wells drilled today typically begin contributing to output several months later. A stable rig count suggests operators are maintaining, but not aggressively expanding, their development plans at current price levels. The day's price retreat follows a period of sustained high prices, which have generally supported oilfield activity. However, the Bakken's price differential—the discount at which local crude trades compared to WTI—stands at -$3.42. A narrower differential improves netbacks...

🌅Afternoon Wire·May 2