Wednesday, May 6, 2026

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Oil Prices

Oil Prices Plunge 10% on Signs of Iran De-escalation

Oil prices suffered a severe drop on Wednesday, with West Texas Intermediate crude falling nearly 10% to trade around $92 per barrel. The sharp decline follows signals from U.S. President Donald Trump that a deal to end the conflict with Iran may be near, according to OilPrice.com. At the time of reporting, WTI Crude was at $92.12, down $10.15 or 9.92% for the session. Brent Crude traded at $99.70, down $10.17 or 9.26%. The Bakken oil price differential to WTI narrowed to -$3.42 per barrel. Natural gas prices saw a smaller decline, trading at $2.71, down $0.07. The price collapse was triggered by a social media post from President Trump late Tuesday announcing the pause of "Project Freedom," a U.S. effort to guide vessels through the Strait of Hormuz. Trump cited "Great Progress... toward a Complete and Final Agreement with Representatives of Iran," OilPrice.com reported. This sparked a market bet...

☀️Morning Wire·May 6

Rig Report

North Dakota Rig Count Holds at 23 for Third Consecutive Report

The number of active drilling rigs in North Dakota remained unchanged at 23 on Wednesday, May 6, according to the latest live data from Bakken Wire. There were no new rigs added, no rigs removed, and no rigs that moved location since the previous report. This marks the third consecutive reporting period with no movement in the state's drilling fleet. The rig count has now held steady at 23 for over a week, matching the total from Wednesday, April 29. Furthermore, the count is identical to the level reported one month ago, on April 6. The prolonged stability at 23 active rigs indicates a period of consistent, measured drilling activity across the Bakken formation and Williston Basin. This plateau follows the significant downturn and subsequent recovery in activity seen in prior years. Operators appear to be maintaining a focused capital discipline, directing rigs to their most productive core acreage. A...

☀️Morning Wire·May 6

Daily Activity

Hess, Oasis Secure New Permits; Continental Renews Five

The North Dakota Department of Mineral Resources approved four new drilling permits in filings from Tuesday, May 5, 2026. Hess Bakken Investments II LLC was the most active operator, securing three permits, while Oasis Petroleum North America LLC received one. Hess's approved permits are for a three-well project in Mountrail County. All three wells, designated RS-PIEPKORN- 155-92-1208H-4, H-5, and H-6, are located in the Stanley field. Oasis Petroleum's single new permit is for the TUNNOCK 5303 12-2 2BX well in Williams County's Lake Trenton field. In a separate filing action, Continental Resources, Inc. renewed five confidential drilling permits. All five renewals are for wells in Williams County. The permits, numbered 38907 through 38911, are for locations in the Pleasant Valley and Beaver Lodge fields. According to the DMR report, the renewals for the MCCLINTOCK 9-13H and 10-13H1 wells are noted as having a "LOCATION OUTSIDE OF SPACING UNIT." The renewals...

☀️Morning Wire·May 6

Operator News

Vitesse Hedges Through 2028, ConocoPhillips Beats Q1 Estimates

Two Bakken operators have reported first-quarter 2026 financial developments, highlighting strategies to navigate commodity price volatility. Vitesse Energy, Inc. has extended its oil hedges through 2028 to protect its dividend, according to a summary of its earnings call published by Bing News. The company reported that 73% of its 2026 oil production is currently hedged. ConocoPhillips, a major operator in the Bakken formation, beat profit estimates for the first quarter, Rigzone reported. The news source noted that lower costs helped soften the impact of lower production volumes and lower Permian natural gas prices in a year-on-year comparison. For Bakken operators and royalty owners, these reports underscore a continued industry focus on financial resilience. Vitesse's move to lock in price protection through 2028 signals a long-term approach to managing cash flow in a volatile market, a tactic other producers may consider. Hedging programs are common in the Bakken to ensure stable...

☀️Morning Wire·May 6

Global Markets

Geothermal Potential, War Fears Ease, and Global Reserves Shape Oil Outlook

Oil prices collapsed on Wednesday following reports of a potential deal to end the U.S.-Iran conflict, according to OilPrice.com. Brent crude was down 8.58% to $100.40 per barrel, while West Texas Intermediate fell 9.82% to $92.23. The drop came after U.S. President Donald Trump stated "Great Progress" had been made toward an agreement, leading to a pause in the "Project Freedom" effort to guide vessels through the Strait of Hormuz. Markets are betting that Washington cannot sustain an open-ended confrontation with Iran if high oil prices continue affecting consumer costs and credit markets, OilPrice.com reported. The price plunge introduces new volatility for Bakken producers, who have been operating in a heightened risk environment due to the Middle East tensions. Separately, North Dakota's oilfield technology could play a key role in developing geothermal energy in the state, according to a report from the Energy and Environmental Research Center (EERC). Researchers believe...

☀️Morning Wire·May 6

Operator News

U.S. Pauses Hormuz Naval Aid, ECB Urges Energy Independence

The U.S. has paused a key naval initiative in the Strait of Hormuz, according to reports from Rigzone. President Donald Trump said "Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time," Rigzone reported. A separate Rigzone report stated Trump said he would pause an effort to help stranded ships exit the Strait of Hormuz to see if the U.S. can reach an agreement with Iran to end the war. The Strait of Hormuz is a critical global oil transit route, and any disruption or diplomatic maneuvering there can directly impact international crude oil prices. For Bakken producers, price volatility driven by geopolitical events in the Middle East affects the economics of drilling and production in North Dakota's shale fields. Higher global prices can boost margins for Bakken crude, which is often exported or competes with imported oil. Separately, European...

☀️Morning Wire·May 6

Pipeline & Infrastructure

Oil Prices Retreat as Geopolitical Risk Subsides; Offshore Driller Sees Upswing

Crude oil prices fell on Tuesday as a ceasefire between the U.S. and Iran held, reducing the immediate geopolitical risk premium that had supported markets. According to Rigzone, crude markets entered "relief mode" as tensions failed to escalate further. The U.S. government played down the prospect of a return to active war with Iran, Rigzone separately reported. This official confirmation of a sustained ceasefire contributed to the downward pressure on oil prices. For Bakken producers, the price retreat underscores the basin's ongoing sensitivity to global supply disruptions and geopolitical events. A period of stabilized tensions can lead to lower near-term pricing, directly impacting cash flows and drilling economics for operators across the Williston Basin. However, reduced volatility can also aid in long-term planning. In a sign of broader industry strength, offshore drilling contractor Transocean reported higher revenue for the first quarter of 2026. The company stated, "We continue to believe...

☀️Morning Wire·May 6

Regulatory

Gasoline Prices Jump Nationwide, Bakken Operators Eye Market Impact

Gasoline prices have increased across all 50 states, according to a report from GasBuddy cited by Rigzone. The widespread jump in fuel costs marks a significant shift in the national energy market. For operators in North Dakota's Bakken formation, higher gasoline prices directly influence the cost of field operations. The increase affects expenses for transportation, well servicing, and the extensive trucking fleet required for oilfield logistics. While Bakken crude is primarily transported by pipeline, local fuel consumption for drilling, completion, and workover activities is substantial. The price movement also alters the refined products landscape connected to Bakken crude oil. As a key supplier to the national market, Bakken production is indirectly linked to gasoline prices through complex refining economics. A sustained increase in gasoline prices can support stronger crack spreads for refiners, which may provide underlying support for crude oil prices over time. The broader context of rising fuel costs...

☀️Morning Wire·May 6

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Crude Prices Plunge Over 6% as Geopolitical Shifts Overshadow Inventory Draw

Crude oil futures plummeted more than 6% on Wednesday, erasing gains from a supportive weekly U.S. inventory report, after a major geopolitical announcement rattled markets. The sharp drop pressures Bakken wellhead economics as the local price differential holds steady. As of midday trading, West Texas Intermediate (WTI) crude was at $95.40 per barrel, down $6.87 or 6.72% on the day. The international benchmark Brent crude traded at $102.22, down $7.65 or 6.96%. The Bakken differential to WTI was -$3.42. According to live price data, this puts the implied Bakken wellhead price near $91.98. The price collapse occurred despite a bullish U.S. inventory report from the Energy Information Administration (EIA). The EIA reported commercial crude oil inventories fell by 2.3 million barrels for the week ending May 1, bringing stockpiles to 457.2 million barrels, according to Oilprice.com. This draw was anticipated by analysts; Rigzone reported Macquarie strategists had expected another U.S....

🔆Midday Wire·May 6

Operator News

Vitesse Energy Extends Oil Hedges Through 2028 to Protect Dividend

Vitesse Energy, Inc. has extended its oil hedges through 2028, a move aimed at shielding its shareholder dividend from commodity price swings, according to a summary of its Q1 2026 earnings call. The summary was reported by Bing News. The company stated it "opportunistically" extended its hedging program. For 2026, Vitesse has currently hedged 73% of its anticipated oil production. This strategy locks in future sale prices for a significant portion of its output, providing predictable cash flow regardless of market fluctuations. For Bakken operators and royalty owners, extensive hedging is a sign of financial discipline and a focus on capital returns. By securing price floors, companies like Vitesse can better guarantee the funding for dividends and stable operations, even if oil prices dip. This approach contrasts with a pure growth model that relies on higher future prices to justify spending. The extension of hedges all the way through 2028...

🔆Midday Wire·May 6

Regulatory

Ineos Chairman Criticizes European Policy, Highlights U.S. as Stable Energy Investment Hub

The chairman of global chemical and energy giant Ineos has launched a sharp critique of European energy policy while committing billions more to U.S. oil and gas operations, highlighting a regulatory climate favorable to American producers. According to a statement reported by OilPrice.com, British billionaire Jim Ratcliffe said Europe and the UK’s approach is “all over the place” and erodes both security and growth prospects. Ratcliffe explicitly contrasted the European environment with the United States, stating, “From an investment point of view, you always go to the stable rather than the unstable. I would have a lot more confidence in investments in America in the energy sector than I would in Europe.” He linked competitive energy prices directly to economic growth and national security. The comments accompanied an announcement that Ineos Energy has taken a 21% stake in three offshore oil and gas sites in the Gulf of Mexico in...

🔆Midday Wire·May 6

Global Markets

Global Straits Tensions, Gulf Deals, and ND Tech Highlight Energy Landscape

Global oil markets faced renewed uncertainty Wednesday as a U.S.-led effort to escort tankers through the Strait of Hormuz was abruptly paused. According to OilPrice.com, President Donald Trump called off the 'Project Freedom' initiative just three days after announcing it, leaving cargo vessels and tanker owners scrambling. The Strait, a critical chokepoint for global oil shipments, was mostly clear of traffic following the pause. The short-lived project had allowed some ships to pass, including the Alliance Fairfax, operated by a Maersk subsidiary, which had been stranded since the war began on February 28. In a social media post, President Trump stated the pause was to see if an agreement to end the war with Iran could be finalized. Reports of a potential framework deal caused oil prices to plunge 12% early Wednesday before paring losses. Meanwhile, in the U.S. Gulf of Mexico, Shell and INEOS are planning more joint tiebacks,...

🔆Midday Wire·May 6

Operator News

Global Energy, Shipping News Highlights Contrasting Market Forces

Abu Dhabi National Oil Company (ADNOC) announced AED 200 billion ($55 billion) in new project awards for the 2026-2028 period, according to Rigzone. The state energy company stated it is "accelerating growth and delivery of its strategy" with the massive capital expenditure plan. Separately, shipping companies remain cautious about sending vessels through the critical Strait of Hormuz, Rigzone reported. This caution persists despite hopes for regional peace deals. The strait is a vital chokepoint for global seaborne oil and liquefied natural gas (LNG) trade. In Asia, the Asian Development Bank (ADB) is targeting $70 billion to mobilize energy and digital infrastructure, Rigzone reported. The multilateral lender aims to provide $50 billion in financing for cross-border electricity grids in the Asia-Pacific region and an additional $20 billion to support data center growth. For Bakken operators, these developments highlight contrasting forces in the global energy landscape. Major national oil companies like ADNOC...

🔆Midday Wire·May 6

Pipeline & Infrastructure

Global Energy Supply News: Trump Pauses Hormuz Patrol, Equinor Profits from Gas Trading

U.S. President Donald Trump announced a temporary pause to a key maritime security operation in the Middle East, according to Rigzone. "Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time," the president said. The Strait of Hormuz is a critical global oil chokepoint, and any disruption or change in security posture there can influence international crude oil prices and shipping logistics. Separately, energy major Equinor reported that optimized gas trading contributed to its profits, Rigzone reported. The company specifically captured value from volatility in piped gas trading in Europe and gas trading in North America. While focused on natural gas, such trading successes by major market participants can reflect broader energy market liquidity and strategies that also impact associated commodities like crude oil. In other global energy security news, the Australian government plans to establish a substantial government-owned fuel...

🔆Midday Wire·May 6

Regulatory

U.S. Pauses Hormuz Shipping Aid; ECB Chief Warns on Energy Security

The U.S. has paused a plan to assist stranded ships in exiting the Strait of Hormuz as it seeks a diplomatic agreement with Iran, according to Rigzone. Former President Donald Trump stated the pause is to see if the U.S. can reach a deal to end the ongoing conflict. Simultaneously, European Central Bank President Christine Lagarde urged Europe to reduce its dependency on energy imports, Rigzone reported. She stated that soaring energy costs due to the war involving Iran should serve as a wake-up call for the continent. These developments underscore persistent volatility in global energy corridors and security. The Strait of Hormuz is a critical chokepoint for global oil shipments, and any disruption or diplomatic maneuvering there can influence international crude prices and market sentiment. For Bakken operators and North Dakota royalty owners, such international instability reinforces the value of domestic production from stable, geopolitically secure regions. While the...

🔆Midday Wire·May 6

Production Data

Bakken Rig Count Holds at 23 as Oil Prices Drop Sharply

North Dakota's active drilling rig count held at 23 on Wednesday, a level indicating consistent but restrained operator activity in the Bakken formation. The stability in rigs comes amid a sharp sell-off in crude oil prices, with key benchmarks falling nearly 7%. West Texas Intermediate crude traded at $95.40 per barrel, down $6.87 for the day, according to live Bakken Wire data. The international Brent benchmark fell to $102.22, a drop of $7.65. The price for Bakken crude at the wellhead is typically discounted against WTI; the differential was reported at -$3.42 per barrel. The current rig count of 23 serves as a leading indicator for future oil production. Historically, the number of active rigs in North Dakota has a direct correlation with production levels several months later, as new wells are drilled, completed, and brought online. The current count suggests operators are maintaining a disciplined pace of development. A...

🔆Midday Wire·May 6

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Plunge Over 6% Despite Expectations for Inventory Draw

Front-month crude oil futures fell sharply in Wednesday trading, with both major benchmarks shedding over six percent. West Texas Intermediate (WTI) crude for June delivery settled at $96.06 per barrel, a drop of $6.21, according to live price data. The international benchmark, Brent crude, fell $7.90 to close at $101.97 per barrel. The sell-off occurred even as analysts pointed to supportive fundamental data. Strategists at Macquarie, including Walt Chancellor, expect another drawdown in U.S. commercial crude inventories this week, according to a report from Rigzone. The anticipated draw is linked to "amidst elevated exports," the strategists noted. The price decline pressures operators across the Bakken formation, where local crude is already priced at a discount to the U.S. benchmark. The Bakken differential was quoted at $-3.42 versus WTI on Wednesday. This means Bakken crude priced at the wellhead would be approximately $92.64 per barrel, based on the day's settlement. Natural...

🌅Afternoon Wire·May 6

Rig Report

North Dakota Rig Count Holds at 23 as Operator Activity Churns

The number of active drilling rigs in North Dakota's oil fields remained unchanged Wednesday at 23, according to live data from Bakken Wire. The count held steady as one new rig was added and one was removed. XTO Energy Inc. added a new rig, the H & P 640, in Williams County's 154-96-13 section. Concurrently, Oasis Petroleum North America LLC removed its NOBLE 4 rig from the 157-93-13 section in Mountrail County. No rigs moved locations on Wednesday. The current activity level represents a stable trend for the Williston Basin. The rig count of 23 is identical to the level reported one week ago on April 29, 2026, and one month ago on April 6, 2026. This extended period of stability in the rig count suggests operators are maintaining a consistent, measured level of drilling activity. The Bakken formation remains North Dakota's primary oil-producing region, and the rig count is...

🌅Afternoon Wire·May 6

Operator News

Vitesse Energy Extends Hedges Through 2028 to Protect Dividend

Vitesse Energy Inc. has opportunistically extended its oil hedges through 2028, according to a summary of its Q1 2026 earnings call. The move is designed to protect the company's dividend against commodity price volatility. The company's current strategy has 73% of its projected 2026 oil production hedged, the earnings summary noted. This level of hedging locks in prices for a significant portion of its future output, providing predictable cash flow. For Bakken operators, extended hedging is a common tool for managing financial risk in a basin known for its prolific but economically sensitive production. By securing price floors years in advance, companies like Vitesse can guarantee a baseline revenue stream to fund operations, capital expenditures, and shareholder returns regardless of short-term market swings. The specific focus on protecting the dividend signals a priority on returning capital to investors. This disciplined financial approach is often employed by established operators in mature...

🌅Afternoon Wire·May 6

Global Markets

Global Offshore Wind Supply Crunch May Prolong Reliance on Bakken Oil

Supply chain pressures creating a structural bottleneck in the European offshore wind market may have downstream implications for the long-term demand outlook for Bakken crude oil, according to a new analysis. A report from Rystad Energy, cited by OilPrice.com, outlines a market becoming "increasingly constrained in its most critical components," which could slow Europe's planned energy transition. The core issue is a highly concentrated turbine supply. With GE Vernova having paused new offshore wind orders, Siemens Gamesa and Vestas now account for virtually all turbines available to European developers. This limited supplier diversity, combined with soaring costs and technical complexity, is hampering project development. Turbine selling prices have risen by 40% to 45% since 2020, far outpacing manufacturing cost increases of 20% to 25%. The supply constraint is most acute for complex components like the nacelle—which houses the generator and power electronics—and in blade manufacturing. "The market has moved into...

🌅Afternoon Wire·May 6

Global Markets

Geothermal Potential, Global Tensions, and Fusion Progress Shape Energy Landscape

North Dakota's oilfield technology could be repurposed to develop geothermal energy for power generation in the state, according to a recent report. Researchers from the Energy and Environmental Research Center (EERC) presented findings last week, suggesting that hydraulic fracturing could be used to create permeability in tight underground rock formations, allowing water to absorb heat for geothermal production. “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, according to the report. He noted that the state's current geothermal development is largely limited to residential heat pumps and some industrial waste heat applications. The feasibility for widespread power generation remains under study, with the tightness of western North Dakota's rock formations cited as a primary challenge. Globally, geopolitical tensions continue to disrupt oil logistics. The...

🌅Afternoon Wire·May 6

Operator News

Gulf Tiebacks, ADNOC Spending, Hormuz Caution Mark Global Oil News

Shell and INEOS are planning additional joint tieback projects in the U.S. Gulf of Mexico, according to Rigzone. The report notes that INEOS is acquiring a 21 percent working interest in new developments, consistent with its ownership in existing assets like Appomattox and Rydberg. This move underscores the continued focus by major international operators on optimizing production from existing infrastructure, a strategy also employed in mature basins. Abu Dhabi National Oil Company (ADNOC) announced $55 billion in new project awards for the 2026-2028 period, Rigzone reported. The state-owned company stated it is "accelerating growth and delivery of its strategy" with the massive capital commitment. Such significant investment by a national oil company highlights the global competition for capital and engineering resources, which can influence costs and availability for projects worldwide, including in North Dakota. Despite hopes for a regional peace deal, shipping companies remain cautious about sending vessels through the...

🌅Afternoon Wire·May 6

Pipeline & Infrastructure

Global Energy Infrastructure Moves Highlight Export, Volatility Context for Bakken

Major energy infrastructure and security announcements from Asia, Europe, and Australia on Wednesday highlight the global market dynamics that influence Bakken crude and gas exports, according to news summaries. The Asian Development Bank (ADB) is targeting $70 billion to mobilize financing for cross-border electricity grids and data centers in the Asia-Pacific region, Rigzone reported. The multilateral lender aims to secure $50 billion for power grid integration and an additional $20 billion to support data center growth. For Bakken operators, large-scale investments in Asian energy infrastructure and power-hungry data centers can signal long-term demand for liquefied natural gas (LNG) and stable power generation fuels, which are key export markets for U.S. production. In Europe, Equinor's recent profits were boosted by optimized gas trading, capturing market volatility, Rigzone noted. The company specifically pointed to gains from piped gas trading in Europe and gas trading in North America. This underscores the continued importance...

🌅Afternoon Wire·May 6

Regulatory

U.S. Pauses Hormuz Shipping Aid, Europe Urged to Cut Import Reliance

The U.S. has paused a key maritime security initiative in the Middle East, according to reports from Rigzone. President Donald Trump stated that 'Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time,' Rigzone reported Wednesday. The pause is intended to see if the U.S. can reach an agreement with Iran to end the ongoing war, according to the same source. The plan was designed to aid stranded ships exit the critical waterway. Separately, European Central Bank President Christine Lagarde cited the Iran war as a driver of soaring energy costs in a Tuesday statement reported by Rigzone. She said the situation should act as a wake-up call for Europe to reduce its energy import dependency. For Bakken operators, these developments underscore the persistent geopolitical friction impacting global oil markets. The Strait of Hormuz is a chokepoint for seaborne crude...

🌅Afternoon Wire·May 6