Tuesday, May 5, 2026

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Oil Prices

Oil Prices Drop Sharply, Bakken Differential Narrows

Oil prices fell sharply in Tuesday morning trading, with West Texas Intermediate (WTI) crude dropping 2.46% to $103.80 per barrel. The global benchmark Brent crude declined 1.71% to $112.48. The price for Bakken crude at the Clearbrook, Minnesota, hub was at a discount of $3.42 per barrel versus WTI. The price drop comes amid a broader market sell-off and follows recent data highlighting robust global oil production. According to OPEC's latest Annual Statistical Bulletin, world oil demand reached 105.15 million barrels per day in 2025, a yearly increase of 1.30 million barrels per day. The report, cited by Rigzone, showed the largest demand gains were in non-OECD Asia, China, Africa, Latin America, India, and the Middle East. Concurrently, total world crude oil production increased by 2.24 million barrels per day in 2025 compared to 2024, averaging 74.85 million barrels per day. OPEC reported that crude production from its member countries...

☀️Morning Wire·May 5

Rig Report

Bakken Rig Count Holds at 23 Amid North American Decline

The number of active drilling rigs in North Dakota held steady at 23 on Tuesday, according to live data from Bakken Wire. The count showed no new additions, removals, or location moves since the previous day. This stability comes after a slight increase one week ago. The current count is up one rig from the 22 active on April 28, 2026, and is identical to the level seen one month ago on April 5, 2026. The local steadiness contrasts with a broader decline across North America. According to Baker Hughes' latest weekly count published May 1, the total North American rig count fell by four week-on-week to 670, according to a report from Rigzone. This decline was driven by a seven-rig drop in Canada, which offset a three-rig gain in the United States. The U.S. rig count stood at 547, comprising 408 oil rigs, 130 gas rigs, and nine miscellaneous...

☀️Morning Wire·May 5

Daily Activity

XTO, Enerplus Lead Permitting as Eight New Bakken Wells Approved

North Dakota's Department of Mineral Resources approved eight new drilling permits on Monday, May 4, with XTO Energy Inc. and Enerplus Resources USA Corporation accounting for all the new authorizations. The permits signal continued development focus in Dunn County within the Bakken formation. XTO Energy received approval for five new wells, all targeting the same confidential field in Dunn County. The permits, 42894 through 42897 and a duplicate 42897, are for the Harrier Federal project located in NE NW 15-148N-97W. Enerplus Resources USA Corporation secured three permits for wells in a separate Dunn County location. Its permits 41508, 41509, and 41510 are for the Split and MHA projects in SW SE 20-149N-92W. According to the DMR Daily Activity Report, several previously confidential wells were released from that status. Devon Energy Williston, L.L.C. had two Barbara wells in McKenzie County released. Hunt Oil Company, Burlington Resources Oil & Gas Company LP,...

☀️Morning Wire·May 5

Global Markets

Global Supply Shock, Low Inventories Set Stage for Volatile Bakken Pricing

Geopolitics and snarled supply chains are the top disruptive themes for the global oil industry in 2026, a dynamic that directly underpins volatile pricing and strategic planning for Bakken shale operators, according to a new strategic intelligence report from GlobalData. The firm highlighted the renewed Iran conflict and the blockade of the Strait of Hormuz as key factors, according to a statement sent to Rigzone. The severity of the impact was underscored Monday as oil prices surged following new attacks on Middle Eastern energy infrastructure. Brent crude futures jumped 5.8% to settle above $114 a barrel after an Iranian drone strike caused a fire in a key oil industrial zone in Fujairah, UAE, according to a separate Rigzone report. Tankers also came under fire in the Strait of Hormuz, marking a significant escalation that jeopardizes a four-week-old ceasefire. "The renewed conflict in the Middle East has led to a spike...

☀️Morning Wire·May 5

Global Markets

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...

☀️Morning Wire·May 5

Operator News

Strait of Hormuz Freeze, Oxy CEO Transition, TotalEnergies Solar Deal

Traffic through the critical Strait of Hormuz remained largely frozen Monday amid escalating tensions, according to a report from Rigzone citing Bloomberg. The situation, where Iran has attacked ships and the U.S. has initiated a plan to guide vessels out, has left millions of barrels of oil and other products stuck inside the Persian Gulf. Vessel-tracking data showed only a handful of transits, underscoring the severe disruption to global oil shipping lanes. The ongoing blockade at one of the world's most vital oil chokepoints has direct implications for global crude benchmarks, which influence pricing for Bakken crude. Any prolonged disruption could increase volatility in oil markets, affecting North Dakota producers and royalty owners. U.S. Central Command stated that two American-flagged merchant vessels successfully navigated the strait and that the military is working to restore commercial flow. In major operator news, Occidental Petroleum announced a leadership transition with implications for its...

☀️Morning Wire·May 5

Pipeline & Infrastructure

Bakken Output Holds Steady as Global Tensions, Investor Shifts Loom

North Dakota's oil production held firm in February, posting a slight increase to 1.129 million barrels per day, according to the state's Department of Mineral Resources. Natural gas output also rose to 3.392 billion cubic feet per day. The data, which lags by about two months, shows 96.2% of the state's production continues to come from the Bakken and Three Forks formations. The rig count in North Dakota stood at 26 as of April 21, up by one from March. McKenzie County remains the top producer, accounting for 32% of the state's total. Statewide gas capture improved, increasing to 95.8% in February, while the volume of flared gas decreased by 21.1 million cubic feet per day to 136.5 MMcf/d. The number of producing wells reached 19,625 in October 2025, an all-time high. The stability in Bakken output contrasts with heightened geopolitical risks affecting global oil transport. According to a separate...

☀️Morning Wire·May 5

Regulatory

Qatar LNG Force Majeure Extended Through Mid-June Amid Strait Closure

State-owned QatarEnergy has extended a force majeure on its liquefied natural gas supply through mid-June, according to a report from Rigzone. The declaration comes as the Strait of Hormuz remains almost entirely closed to tanker traffic. Customers of the producer received the notice, according to people familiar with the matter who spoke to Rigzone. QatarEnergy has issued periodic force majeure notices since the start of the Iran war in late February. Force majeure is a legal provision invoked when extraordinary circumstances prevent a company from fulfilling its commercial contracts. The ongoing closure of the critical shipping chokepoint constitutes such a circumstance. The conflict has significantly disrupted global energy flows. Almost one-fifth of global LNG supplies have been choked off, including volumes from Qatar and the United Arab Emirates. Qatar's key Ras Laffan export facility was damaged by Iranian missile strikes in March. This sustained disruption has led to surging global...

☀️Morning Wire·May 5

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Slide Over 4% Amid OPEC+ Shifts, Hormuz Disruption

Front-month WTI crude oil futures fell sharply Tuesday, dropping $4.29 to settle at $102.13 per barrel, a decline of 4.03 percent. The global benchmark Brent crude fell $3.91 to $110.53 per barrel, according to midday price data. The discount for Bakken crude at Clearbrook, Minnesota, widened to $3.42 below WTI. The price drop coincides with significant structural shifts within OPEC+ and continued supply disruption in the Middle East. Over the weekend, the United Arab Emirates officially withdrew from the OPEC+ alliance, effective May 1. According to a statement from the UAE Ministry of Energy and Infrastructure posted on X and reported by Rigzone, the decision aligns with the country's long-term strategic vision and follows a review of its production policy. Analysts suggest the UAE's exit introduces longer-term uncertainty. James Davis of FGE told Rigzone that the UAE leaving "is not a sign of the beginning of the end" for OPEC+,...

🔆Midday Wire·May 5

Operator News

ConocoPhillips Q1 Bakken Output Steady Amid Lower Earnings

ConocoPhillips reported first-quarter adjusted net income of $2.3 billion, beating analyst estimates despite a year-over-year decline in profit, according to its quarterly report. The company's Bakken formation assets contributed 183,000 barrels of oil equivalent per day (boed) to its total Lower 48 output of 1.45 million boed for the quarter. Overall company production averaged 2.31 million boed for Q1 2026, down 80,000 boed from the same period last year. The company noted that after adjusting for acquisitions and dispositions, production decreased by only 14,000 boed, or 1 percent, year-over-year. "Organic growth from Lower 48 was more than offset by downtime, which includes the impact of the Middle East conflict on Qatar, and higher Surmont royalties," the company stated. For Bakken operators and mineral owners, the financial discipline of a top producer like ConocoPhillips is a key indicator. The company reiterated its objective to return 45 percent of its cash from...

🔆Midday Wire·May 5

Regulatory

BP Eyes North Sea Exit Amid High Taxes; Bakken Operators Watch

BP is reportedly considering a potential exit or partial wind-down of its operations in the North Sea, according to a report cited by OilPrice.com. The review is part of an effort to strip assets and pay debt, potentially involving around £2 billion in divestments. A BP spokesperson told Bloomberg the company has a “strong North Sea portfolio with significant untapped potential, supported by a highly skilled workforce,” but did not comment further on the review. The primary driver cited for the potential retreat is the UK's heavy tax burden on energy producers. The combined energy profits levy and ring fence corporation tax creates a headline tax rate of 78 percent for North Sea operators. Offshore Energies UK (OEUK), the industry lobby group, has warned this fiscal regime could cause oil and gas production in the region to collapse “within years” by stifling investment. The situation underscores a global dynamic of...

🔆Midday Wire·May 5

Global Markets

Geopolitics, Supply Chain Top 2026 Oil & Gas Themes, GlobalData Reports

Geopolitics and supply chain disruptions are the top themes impacting the global oil and gas industry in 2026, according to a new strategic intelligence report from GlobalData highlighted by Rigzone. For Bakken operators, these macro themes directly influence the price environment and operational planning for the year. In a statement, GlobalData identified geopolitics as the "biggest disruptive theme" for the year, specifically citing the Iran conflict and the resultant supply chain disruptions from a Strait of Hormuz blockade. "The renewed conflict in the Middle East has led to a spike in oil and gas prices and has throttled maritime traffic through the Strait of Hormuz," said GlobalData Oil and Gas Analyst Ravindra Puranik. He noted this has severely disrupted energy supplies, with oil prices spiking to around 44 percent above their pre-war levels in March 2026. The report states that despite a recent ceasefire between the U.S. and Iran, the...

🔆Midday Wire·May 5

Global Markets

Global Tensions, Tech Transfer, and Offshore Gains Shape Energy Outlook

The U.S. military stated a ceasefire with Iran remains in place despite clashes in the Strait of Hormuz, a critical chokepoint for global oil shipments, according to a Rigzone report. Defense Secretary Pete Hegseth and General Dan Caine confirmed the truce on Tuesday, May 5, 2026, after a day of violence involving attacks on merchant vessels and missile strikes against the United Arab Emirates. The U.S. was implementing "Project Freedom," a temporary operation to assist neutral ships through the strait. The UAE reported intercepting nearly 20 projectiles fired from Iran on Monday, marking the first such attack since the truce began about a month ago. Iran had attacked a South Korean bulk carrier and an empty UAE tanker. U.S. Central Command said American forces fought off Iranian drones, missiles, and boats while facilitating the passage of two merchant vessels. Over 1,550 commercial vessels with 22,000 sailors are currently trapped in...

🔆Midday Wire·May 5

Operator News

Global Tensions Spike as Iran-US Clash, Nigeria Seeks Refinery Partners

Geopolitical tensions flaring in the Middle East and international refinery partnerships are shaping the global oil market, providing a volatile backdrop for North Dakota's Bakken producers. The most immediate market mover is a renewed military clash between the U.S. and Iran in the Persian Gulf, according to Rigzone. On Monday, U.S. and Iranian forces exchanged fire as the American military facilitated the passage of two U.S.-flagged vessels through the Strait of Hormuz, a critical global oil chokepoint. U.S. Central Command reported fighting off attacks from Iranian drones, missiles, and armed small boats. In a separate incident, the United Arab Emirates reported intercepting Iranian cruise missiles and blamed an Iranian drone strike for a large fire at its Fujairah port, according to Rigzone. This violence has shaken a ceasefire that has largely held since April 8, 2026, and prompted calls for renewed strikes on Iranian targets. The immediate market reaction was...

🔆Midday Wire·May 5

Pipeline & Infrastructure

Global Oil Prices Surge as Hormuz Crisis Deepens, Shell-INEOS Expand GoM

The ongoing military crisis in the Strait of Hormuz is sending long-term oil price expectations soaring, with December 2026 futures contracts trading well above initial forecasts, according to an OilPrice.com report. The December 2026 contract for Brent crude traded at $91 per barrel, while WTI traded at $85, both far above the market's initial $55-60 per barrel expectations for that period. The report states some 11 million barrels per day of production is currently shut in across the Middle East, with producers reaching storage limits. Analysts warn that even if blockades end, countries like Iraq may need at least nine months to return to pre-war capacity due to reservoir constraints. Chevron CEO Mike Wirth stated that oil supply shortages would soon start appearing globally as strategic reserves are depleted. On Tuesday, May 5, Brent crude slid back to $110 per barrel after U.S. forces moved against Iran's chokehold on the...

🔆Midday Wire·May 5

Production Data

Bakken Rig Count Holds at 23 as Oil Prices Retreat

North Dakota's active drilling rig count held steady at 23 on Tuesday, suggesting a stable near-term outlook for Bakken oil production even as crude prices fell sharply. The state's key metric for future output remains at a level consistent with maintaining current production volumes. West Texas Intermediate crude was trading at $102.13 per barrel, down $4.29 or 4.03% for the day. The international benchmark Brent crude traded at $110.53, down $3.91. Despite the day's sell-off, prices remain well above levels that typically support increased drilling activity in the Bakken formation. The Bakken crude differential was $3.42 below WTI. Historically, the rig count is a leading indicator for oil production, with changes in the number of active drilling rigs typically preceding changes in output by several months. The current count of 23 rigs is sufficient to sustain production at recent levels, barring significant changes in well productivity or completion activity. A...

🔆Midday Wire·May 5

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Plunge Over 3.5% Amid OPEC Turmoil, Large Inventory Draws

Oil prices fell sharply on Tuesday, with both major benchmarks dropping more than 3.5%, as geopolitical upheaval within OPEC outweighed a significant reported drawdown in U.S. inventories. West Texas Intermediate (WTI) crude settled at $102.41 per barrel, down $4.01 or 3.77%. Brent crude finished at $110.27, down $4.17 or 3.64%, according to live price data. The day's steep decline was driven primarily by the market's reaction to the United Arab Emirates' shock exit from OPEC, effective May 1. According to a report from OilPrice.com, the UAE was OPEC's third-largest producer, pumping around 3.5 million barrels per day, and was seen as a key "swing oil producer" with significant spare capacity. Its departure reduces the cartel's cohesion and raises questions about its future ability to manage supply and prices. "The United Arab Emirates was in a unique position in OPEC+," said James Davis of FGE, as reported by Rigzone. The move...

🌅Afternoon Wire·May 5

Rig Report

North Dakota Rig Count Holds at 23

North Dakota's active drilling rig count held steady at 23 on Tuesday, according to live data from Bakken Wire. The figure showed no day-over-day movement, with no new rigs added, none removed, and no rigs changing location since Monday. The current count represents a stable plateau for drilling activity in the Bakken formation and wider Williston Basin. Compared to recent historical data, the rig fleet is up by one from the 22 rigs reported one week ago, on April 28, 2026. It is unchanged from the 23-rig level observed exactly one month prior, on April 5, 2026. This consistency suggests operators are maintaining a measured pace of development. The rig count is a key leading indicator for future oil production in the state, which is the third-largest oil-producing region in the United States. A stable count in the low-20s reflects a focus on capital discipline and efficiency, with companies prioritizing...

🌅Afternoon Wire·May 5

Operator News

ConocoPhillips Reports Q1 Profit Beat Amid Lower Costs

ConocoPhillips, the largest oil and gas operator in North Dakota's Bakken formation, reported first-quarter profits that exceeded analyst estimates, according to a report from Rigzone. The company's financial performance, reported on Tuesday, was bolstered by lower costs year-on-year. These reduced expenses helped soften the financial impact of lower production volumes and decreased natural gas prices in the Permian Basin, Rigzone reported. For Bakken-focused royalty owners and service companies, the news highlights the critical role of operational efficiency in the current market. ConocoPhillips is a dominant force in the Williston Basin, and its ability to manage costs directly influences local drilling budgets, employment, and regional economic activity. A financially healthy major operator is a positive signal for the basin's overall stability. In a separate development also reported by Rigzone, German energy company Uniper received preliminary approval to build a new hydrogen-ready combined cycle gas turbine (CCGT) plant in Hesse. The plant...

🌅Afternoon Wire·May 5

Global Markets

GlobalData Report Highlights Key 2026 Themes for Oil and Gas Industry

GlobalData has identified the "top" themes that will impact the global oil and gas industry in 2026, according to a new strategic intelligence report highlighted by Rigzone. The report, published Tuesday, May 5, outlines the key strategic and operational factors companies must navigate in the coming year. While the specific themes were not detailed in the provided summary, such annual analyses typically examine trends like commodity price volatility, geopolitical risk, energy transition pressures, and technological innovation. For operators in North Dakota's Bakken formation, these global themes directly influence investment decisions, drilling budgets, and long-term planning. The identification of these overarching themes serves as a reminder that Bakken producers do not operate in a vacuum. Market dynamics, regulatory shifts, and capital allocation trends determined on a global scale inevitably affect activity in the Williston Basin. A theme emphasizing cost discipline, for instance, would reinforce the basin's focus on operational efficiency and...

🌅Afternoon Wire·May 5

Global Markets

Global Energy Roundup: Fracking Tech Eyes Geothermal, Supply Chains Key

North Dakota's oilfield technology and workforce could be key to developing commercial geothermal energy in the state, according to a new report. Researchers from the Energy and Environmental Research Center (EERC) told the North Dakota Industrial Commission last week that fracking techniques could create the necessary permeability in tight rock formations to make geothermal power generation feasible, Bing News reported. “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" to the start of the shale revolution, in terms of proving out the technology. The report noted that while underground temperatures in western North Dakota may be sufficient, the tightness of the rock is a challenge that oilfield technology could solve. Meanwhile, global oil markets are being...

🌅Afternoon Wire·May 5

Operator News

Oil Falls as Ceasefire Holds; Lagarde Warns on Energy Security

Crude oil prices fell Tuesday as a ceasefire between the U.S. and Iran remained in place, removing a key risk premium from global markets. According to Rigzone, crude markets entered relief mode as tensions failed to escalate further. The U.S. played down the prospect of a return to active war with Iran, Rigzone reported. This confirmation of a sustained ceasefire has shifted market focus from supply disruption risks back to fundamental factors like demand and inventory levels. The recent period of conflict had underscored global energy vulnerabilities. In a related development, European Central Bank President Christine Lagarde said soaring energy costs due to the Iran war should act as a wake-up call for Europe to reduce its dependence on energy imports, Rigzone reported. For Bakken operators and royalty owners, the immediate impact is downward pressure on the wellhead price of North Dakota light sweet crude. The Bakken benchmark often tracks...

🌅Afternoon Wire·May 5

Pipeline & Infrastructure

Global Energy Moves Signal Upward Pressure on Bakken Oil Dynamics

Gasoline prices have jumped across all 50 states, according to a report from GasBuddy cited by Rigzone. This broad increase in fuel costs underscores tightening refined product markets, which can support the value of crude oil at the wellhead. For Bakken operators, stronger gasoline prices typically translate to improved crack spreads and stronger incentives to maintain or increase production from the formation, North Dakota's primary oil-producing region. In parallel, the offshore drilling sector is signaling strength. Transocean reported higher Q1 revenue, with the company stating it believes the industry is "in the early days of a multi-year upcycle with increasing demand for offshore exploration and development drilling services," Rigzone reported. While focused on offshore, this sentiment reflects a broader, sustained increase in global drilling activity and hydrocarbon demand. A robust global oil market supports the price environment for landlocked Bakken crude, which competes in a worldwide market. Internationally, refining capacity...

🌅Afternoon Wire·May 5

Production Data

North Dakota Rig Count Hits 23 Amid Sharp Oil Price Decline

North Dakota's active drilling rig count stood at 23 on Tuesday, a figure that suggests a cautious but sustained level of operator activity in the Bakken formation despite a sharp drop in oil prices. The current rig count, a direct indicator of new well development, provides a snapshot of near-term investment. According to Bakken Wire data, WTI crude fell to $102.41 per barrel, down $4.01 or 3.77% on the day. Brent crude was at $110.27, down $4.17. The Bakken differential to WTI was -$3.42, meaning Bakken crude is priced at approximately $98.99. Historically, the rig count in North Dakota has been a leading indicator for future production levels. A sustained rig count translates to new wells being drilled, completed, and brought online, which adds to overall output after a lag of several months. Conversely, a significant drop in rigs typically foreshadows a plateau or decline in production months later. The...

🌅Afternoon Wire·May 5