Thursday, May 7, 2026

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Oil Prices

Oil Prices Slide as Market Weighs U.S.-Iran Deal Prospects

Front-month crude oil futures extended losses Thursday morning, with West Texas Intermediate (WTI) falling 3.26% to $91.98 per barrel, according to live price data. The international benchmark Brent crude dropped 3.1% to $98.13. The price for Bakken crude at the wellhead widened to a discount of $3.42 below WTI. The selloff follows a steep 7% crash on Wednesday and reverses early Asian trading gains, as the market digests the potential for a diplomatic agreement between the United States and Iran. According to a report from OilPrice.com, prices wavered amid investor concern that a deal is not as imminent as earlier signals suggested. The continued blockage at the Strait of Hormuz and fast-depleting global inventories provided some support, paring losses. The market movement is heavily tied to geopolitical headlines. OilPrice.com reported that the selloff eased late Wednesday after U.S. President Donald Trump said it was still “too soon” for direct talks...

☀️Morning Wire·May 7

Rig Report

Bakken Rig Count Holds at 23 for Second Straight Week

The number of active drilling rigs in North Dakota's Bakken formation remained unchanged at 23 on Thursday, May 7, according to live rig data monitored by Bakken Wire. No rigs were added, removed, or moved locations since the previous day's report. This marks the second consecutive week the state's rig count has held steady at 23 active units. Data from one week ago, on April 30, 2026, also showed an identical count of 23 rigs. The current activity level represents a slight decline from the pace seen earlier in the spring. Compared to one month ago, on April 7, 2026, the rig count is down by two rigs from the 25 that were active at that time. The Bakken formation, North Dakota's primary oil-producing region, relies on consistent drilling to offset the steep production declines typical of shale wells. Rig count is a closely watched leading indicator of near-term production...

☀️Morning Wire·May 7

Daily Activity

XTO Energy Secures Six New Permits in Dunn County, Two Oasis Wells Declassified

The North Dakota Department of Mineral Resources approved six new drilling permits on Wednesday, May 6, all for XTO Energy Inc. in a concentrated area of Dunn County. According to the DMR Daily Activity Report, all permits are for locations within the same legal description: SW SE 09-148N-96W. The approved permits are for the Warthog Federal 34X-9AXD, 34X-9E, 34X-9B, 34X-9F, 34X-9C, and 34X-9G wells. All six permits are designated for the 'CONFIDENTIAL' field. This batch of permits indicates significant development planning by XTO within a single spacing unit. In addition to new permits, the report listed three wells that have had their confidential status removed. Two are Oasis Petroleum North America LLC wells in Mountrail County. The Feiring State 5793 13-16 2BU and Feiring State 5793 13-16 3BU, both located in NW NE 16-157N-93W in the Big Butte field, are no longer confidential. A third well, operated by Hunt Oil...

☀️Morning Wire·May 7

Operator News

Vitesse Energy Extends Oil Hedges Through 2028 to Protect Dividend

Vitesse Energy, Inc. has extended its oil hedges through 2028, according to a summary of its Q1 2026 earnings call. The company described the move as "opportunistic," aimed at protecting its shareholder dividend against commodity price volatility. Specifically, the operator reported that 73% of its projected 2026 oil production is currently hedged. The hedging strategy is part of a broader "disciplined" financial guidance framework for the company. For Bakken operators and royalty owners, extended hedging is a critical tool for managing cash flow predictability. By locking in future sale prices, companies like Vitesse can guarantee a baseline revenue stream to fund operations, pay dividends, and execute development plans regardless of short-term market fluctuations. This is particularly important in the Bakken formation, where breakeven costs can vary across the play. A sustained hedging strategy signals a focus on financial stability over aggressive, price-dependent growth. It allows operators to maintain capital spending...

☀️Morning Wire·May 7

Regulatory

Global Oil Price Rally from Iran Conflict Boosts Russia's Tax Take

Russia's oil tax revenues surged to a six-month high in April, according to a report from Rigzone. The increase is attributed to a global crude price rally driven by the ongoing war in Iran, which began escalating earlier this year. For operators in North Dakota's Bakken formation, the sustained geopolitical risk premium provides a supportive price environment. While Bakken crude trades at a discount to international benchmarks like Brent, a higher global price floor generally translates to improved wellhead economics. This can bolster cash flow for producers, potentially influencing decisions on maintenance capital and production levels. The conflict in the Middle East has disrupted traditional supply routes and tightened the global oil market. This creates both challenges and opportunities for U.S. shale producers. On one hand, heightened volatility and uncertainty can complicate long-term planning. On the other, it underscores the role of stable, non-OPEC supply sources like the Bakken in...

☀️Morning Wire·May 7

Global Markets

Global Oil Price Rally on Iran War Boosts Competitor Revenues

Global oil prices, driven higher by the ongoing war in Iran, are boosting revenues for major producers worldwide, including those in North Dakota's Bakken formation. According to a report from Rigzone, Russia's oil tax revenue surged to a six-month high in April as the Kremlin capitalized on the crude rally. The conflict in the Middle East has introduced a persistent risk premium into the global oil market, supporting benchmark prices. For Bakken operators, this environment helps maintain stronger wellhead economics, improving cash flow for drilling completions and well maintenance. Higher sustained prices can influence decisions to keep drilling rigs active and accelerate the completion of drilled but uncompleted wells (DUCs). While the Bakken competes in the global market, price increases driven by geopolitical instability are a double-edged sword. They provide immediate revenue benefits but also bolster the financial strength of international competitors like Russia, as noted in the Rigzone report....

☀️Morning Wire·May 7

Global Markets

Global Crisis Drives Supermajor Profits, Asian Plastics Shortage

Shell reported higher-than-expected first-quarter profits, driven by soaring oil prices and trading gains amid the war in Iran, according to OilPrice.com. The supermajor posted adjusted earnings of $6.9 billion for Q1 2026, beating analyst estimates of $6.1-$6.3 billion. The company attributed the results to higher realized liquids prices and "significantly higher trading" during unprecedented market volatility. Shell's performance follows similar strong results from European peers BP and TotalEnergies, which also cited booming oil trading and higher prices due to the Middle East conflict. Shell announced a $3 billion share buyback program and a 5% dividend increase to $0.3906 per share. However, it reduced its LNG production outlook for Q2 due to lost volumes in Qatar. Meanwhile, the supply crunch stemming from the conflict is triggering a plastics crisis in Asia, a key market for Bakken hydrocarbons. OilPrice.com reported that Asia faces plastics shortages due to a shortage of naphtha, a...

☀️Morning Wire·May 7

Production Data

Bakken Drilling Economics Strengthen as WTI Holds Above $90

The economics of drilling new wells in North Dakota's Bakken formation remain favorable with West Texas Intermediate crude holding above $90 per barrel, according to current market data. As of Thursday, May 7, 2026, WTI was trading at $91.98, though it had fallen $3.10 on the day. The international benchmark Brent crude stood at $98.13. At these price levels, operators can achieve solid returns on new wells, which typically cost between $7 million and $8 million to drill and complete in the Bakken. The expected ultimate recovery (EUR) for a modern Bakken well often ranges from 300,000 to 500,000 barrels of oil equivalent over its lifetime, though results vary by location and operator. The recent strength in oil prices significantly improves the net present value and internal rate of return for a typical new well. While well costs have risen from historical lows due to service inflation, sustained prices near...

☀️Morning Wire·May 7

🔆Midday Wire11:00 AM CST

The Midday Take

Energy Market Briefing

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Oil Prices

Oil Prices Fall Sharply Despite U.S. Crude Inventory Draw

Oil prices retreated in midday trading Thursday, with both major benchmarks shedding more than 1.8% despite a reported drawdown in U.S. commercial crude stocks. West Texas Intermediate (WTI) crude for June delivery was trading at $93.68 per barrel, down $1.40 or 1.47%. International benchmark Brent crude fell $1.86 to $99.41 per barrel, a decline of 1.84%. The midday sell-off occurred even as the latest U.S. government data showed a supportive inventory trend. According to Rigzone, citing the U.S. Energy Information Administration's weekly petroleum status report, crude oil stocks, excluding the Strategic Petroleum Reserve, fell to 457.2 million barrels as of May 1. This represented a draw of more than 2 million barrels from the previous week. The price decline suggests broader macroeconomic or geopolitical concerns are outweighing the bullish inventory data. Market analysts point to ongoing demand uncertainty and the complex dynamics between physical supply and political developments. In a...

🔆Midday Wire·May 7

Operator News

Vitesse Energy Extends Oil Hedges Through 2028 to Shield Dividend

Vitesse Energy Inc. has opportunistically extended its oil hedges through 2028, a move aimed at protecting its shareholder dividend against commodity price swings, according to a summary of its Q1 2026 earnings call. The company, a non-operating working interest owner in the Bakken, reported that 73% of its forecasted 2026 oil production is currently hedged. The hedging extension signals a disciplined financial approach by the company. For non-operators like Vitesse, which rely on cash flow from wells operated by other companies, securing future revenue through hedges is a critical tool for maintaining capital return programs and weathering market downturns. The strategy underscores a broader focus on shareholder returns and capital discipline within the Bakken, even among companies that do not operate drilling rigs themselves. By locking in prices for the majority of its near-term production, Vitesse aims to provide predictable cash flow, which directly supports its stated goal of dividend...

🔆Midday Wire·May 7

Regulatory

Global Crude Rally from Iran War Boosts Russian Tax Revenue

Russia's federal oil tax revenue reached a six-month high in April, according to a report from Rigzone. The news service attributed the increase to a crude price rally driven by the ongoing war in Iran. For Bakken operators in North Dakota, such geopolitical events are a primary driver of volatile global oil markets. While the report specifically details the fiscal benefit to Russia, the underlying cause—supply concerns from a conflict in a key producing region—directly impacts the price environment for Williston Basin crude. The Bakken formation is a price-taker in the global market, with local crude prices closely tracking international benchmarks like Brent and WTI. Any event that threatens supply from major exporters, such as those in the Middle East, typically creates upward pressure on those benchmarks. This can improve margins for producers, even as it introduces uncertainty. However, these rallies can be fleeting. Bakken operators must balance the potential...

🔆Midday Wire·May 7

Global Markets

Global Oil Inventories Crash as Strait of Hormuz Closure Deepens Supply Shock

Global crude and fuel inventories are plummeting at a record pace as the supply disruption from the Middle East war overwhelms the market's ability to cope without drawing down stocks, according to an analysis from OilPrice.com. While futures markets speculate on a potential U.S.-Iran deal to reopen the Strait of Hormuz, the physical disruption has already erased the oversupply present at the start of the conflict and is rapidly depleting commercial stockpiles. Analysts warn the situation will worsen before it improves. "Inventory support remains finite and cannot sustainably offset prolonged disruptions," Sumit Ritolia at Kpler wrote last week. Goldman Sachs estimates global oil inventories are approaching an eight-year low, with the speed of depletion exposing the market to further shocks. Total global oil stocks have dropped to about 101 days of expected demand and could fall to 98 days by the end of May if the Strait remains closed. For...

🔆Midday Wire·May 7

Global Markets

Global Supply Shocks Tighten Gas Markets, Echo Bakken's Founding Discovery

Global natural gas markets are set to remain tight through the end of the decade due to supply disruptions from the war in Iran, according to a new assessment from the International Energy Agency (IEA). The conflict has resulted in the loss of about 120 billion cubic meters (bcm) of global LNG supply through 2030, OilPrice.com reported. Gergely Molnar, an IEA energy analyst, stated that global LNG supplies have shrunk by around 15% due to the conflict and the closure of the Strait of Hormuz, a key maritime chokepoint. The agency says the Qatari LNG halt and damage to key facilities will delay the previously expected LNG supply wave by at least two years, prolonging tight markets through 2026 and 2027. In Europe, the situation is acute. The EU will need an additional 10 bcm of natural gas this summer to refill inventories that dropped to multi-year lows, according to...

🔆Midday Wire·May 7

Operator News

EOG Q1 Profit Rises as Murphy Stresses Discipline; U.S. Weighs SPR Refill

EOG Resources reported stronger-than-expected first-quarter profits, driven by increased oil production, according to Rigzone. The company posted $1.83 billion in adjusted net income for Q1, a figure that was up both quarter-on-quarter and year-on-year. Rigzone attributed the rise to higher crude and condensate production. Meanwhile, fellow Bakken operator Murphy Oil emphasized a strategy of caution and discipline in response to current market volatility. "During these uncertain times, our strategy is to stay anchored to what we control - disciplined capital allocation, safe and reliable operations and our long-cycle projects," the company stated, as reported by Rigzone. These updates from two significant Williston Basin producers highlight contrasting focal points: EOG's production-driven financial performance and Murphy's commitment to operational control and capital discipline. For Bakken-focused royalty owners and service companies, such strategic postures can signal future activity levels and spending priorities in the region. In a separate federal development, the U.S. is...

🔆Midday Wire·May 7

Pipeline & Infrastructure

Global Oil Majors Report Q1 Production, Profits; Eni Confirms Giant Gas Find

ExxonMobil produced the most oil and gas among U.S. majors in the first quarter of 2026, according to a Rigzone report published Thursday. The report compared the quarterly production of ExxonMobil, Chevron, and ConocoPhillips. For Bakken operators, the performance of these integrated majors can signal broader market trends and capital allocation strategies that influence the basin's competitive environment. In other earnings news, Norway's Aker BP posted a higher profit, Rigzone reported separately on Thursday. The company's increased profitability was driven by higher liquids prices, which offset a decrease in its sales volumes for both liquids and gas. This dynamic of price strength balancing production volumes is a key focus for North Dakota producers, who manage similar economic pressures in the Williston Basin. Internationally, Italian energy giant Eni confirmed the size of a "giant" gas discovery offshore Indonesia, Rigzone reported. The company stated a drill stem test confirmed approximately 5 trillion...

🔆Midday Wire·May 7

Regulatory

Shell Q1 Profit Tops Estimates on Trading Volatility

Shell plc reported first-quarter adjusted earnings that exceeded analyst expectations, driven by volatility in global energy markets that boosted its trading division. According to Rigzone, the company's adjusted net income rose to $6.92 billion, beating the median analyst estimate of $6.1 billion. While Shell is not a major operator in the Bakken formation, its financial performance is a key indicator of the broader oil and gas market health. Strong earnings from integrated majors often reflect supportive commodity prices and robust downstream margins, which can translate to stable demand for crude oil produced in North Dakota. For Bakken-focused independent producers, sustained profitability among large players supports a constructive investment climate. It indicates that the global market can absorb supply and that price volatility, while a risk, can also create advantageous trading opportunities for companies with marketing operations. The report, published May 7, underscores the continued financial resilience of the oil sector...

🔆Midday Wire·May 7

🌅Afternoon Wire4:00 PM CST

Oil Prices

WTI Crude Surges Past $97 on Sharp U.S. Inventory Draw

Oil prices climbed sharply on Thursday, with West Texas Intermediate (WTI) crude rising over 2% to breach $97 per barrel. The rally was supported by U.S. government data showing a larger-than-expected drawdown in nationwide crude inventories. As of midday Thursday, WTI crude was trading at $97.10 per barrel, a gain of $2.02. The international benchmark Brent crude was at $102.63, up $1.36. North Dakota Bakken crude traded at a differential of $3.42 below WTI, pricing it at approximately $93.68 per barrel. Natural gas also saw gains, rising $0.05 to $2.78 per MMBtu. The price surge follows a U.S. Energy Information Administration report showing a significant decrease in commercial crude stocks. According to Rigzone, crude oil inventories, excluding the Strategic Petroleum Reserve, fell to 457.2 million barrels for the week ending May 1. This represents a draw of more than 2 million barrels from the previous week, tightening physical supplies. The...

🌅Afternoon Wire·May 7

Rig Report

ND Rig Count Holds at 23 Amid Sustained Activity Lull

North Dakota's active drilling rig count held steady at 23 on Thursday, May 7, 2026, according to the latest live data from Bakken Wire. There was no day-over-day change, with no new rigs added, no rigs removed, and no rigs moving locations. This marks a full week of stability, as the state's rig count also stood at 23 on April 30. However, the current level represents a slight pullback from activity seen earlier in the spring. The rig count is down by two from the 25 active rigs reported on April 7. A rig count in the low-to-mid 20s has become typical for the Bakken formation in recent years, reflecting a mature phase of development where operators focus on capital discipline and efficiency. The current plateau suggests that drilling programs are proceeding as planned without significant near-term adjustments from major operators. The steady count indicates that service companies and drilling...

🌅Afternoon Wire·May 7

Operator News

Vitesse Energy Extends Oil Hedges Through 2028 to Protect Dividend

Vitesse Energy, Inc. has extended its oil hedges opportunistically 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 operator currently has 73% of its expected oil production for 2026 hedged, Bing News reported. This strategy locks in prices for a significant portion of its future output, providing more predictable cash flow. For Bakken operators and the region's royalty owners, extensive hedging is a key risk management tool. The Williston Basin's economics are directly tied to the volatile crude oil market. By securing price floors years in advance, companies like Vitesse can ensure stable operations and committed shareholder returns even if spot prices fall. The extension of hedges through 2028 signals a long-term, disciplined financial approach. This planning horizon stretches well beyond typical annual budgets, offering a multi-year shield from downturns. Such a strategy...

🌅Afternoon Wire·May 7

Pipeline & Infrastructure

ND Supreme Court Orders Injunction Against Greenpeace's Dutch DAPL Suit

The North Dakota Supreme Court has ordered a lower court judge to halt a lawsuit filed in the Netherlands by Greenpeace International against Dakota Access Pipeline developer Energy Transfer. The court ruled 4-1 on Thursday, May 7, 2026, that the overseas case threatens to undermine a North Dakota jury verdict favorable to the pipeline company, according to the North Dakota Monitor. Energy Transfer, which operates the critical Dakota Access Pipeline (DAPL), accused Greenpeace International and two affiliate organizations of conspiracy, defamation, and other crimes aimed at stopping the pipeline's construction. A Morton County jury sided with most of Energy Transfer's claims in a verdict delivered last spring. In early 2025, Greenpeace International counter-sued Energy Transfer in Amsterdam under a new European Union law designed to protect those sued in retaliation for protest speech. The environmental group argued Energy Transfer was weaponizing the legal system to punish it for supporting the...

🌅Afternoon Wire·May 7

Global Markets

Water Emerges as Key Global Energy Risk; ND Court Shields Pipeline Firm

Water scarcity is increasingly shaping global energy development, particularly for shale resources, according to an analysis from OilPrice.com. While the U.S. shale boom benefited from favorable geology and water access, replicating that success elsewhere has proven difficult. China's vast shale potential remains largely untapped partly because much of its resource lies in water-scarce regions, limiting the water-intensive hydraulic fracturing required for development. Even within established U.S. plays like the Permian Basin, water handling and disposal costs are rising alongside increased regulatory scrutiny, the report noted. The analysis suggests water is becoming a meaningful factor affecting project economics globally, influencing where projects are built and how quickly they advance. Separately, the North Dakota Supreme Court ruled Thursday in favor of pipeline giant Energy Transfer. In a 4-1 decision, the court ordered a district judge to issue a narrowly tailored order limiting parts of a related lawsuit filed against the company in...

🌅Afternoon Wire·May 7

Operator News

Market Volatility, Operator Caution Define Tense Global Energy Day

Global energy markets remained volatile on Thursday as geopolitical tensions and shipping disruptions injected uncertainty into oil and gas trade, according to reports from Rigzone. For Bakken operators, the instability underscores the external price risks beyond the basin's control. Oil prices swung amid doubts over a potential US-Iran deal, Rigzone reported. The ongoing tensions contribute to a fragile market sentiment that directly impacts the price received for Bakken crude. In a related development, Abu Dhabi National Oil Co. (Adnoc) has managed to maintain a limited flow of liquefied natural gas exports through the critical Strait of Hormuz by having tankers conceal their locations, Rigzone reported. This tactic highlights the extreme measures being taken to navigate regional security threats that can constrain global energy supply. The response from at least one operator with a footprint in the Bakken region is a focus on internal discipline. Murphy Oil Corporation, which holds assets...

🌅Afternoon Wire·May 7

Pipeline & Infrastructure

Federal SPR Refill Plan, Strong EOG Earnings Highlight Afternoon Energy News

The U.S. government is considering tapping oil reserves located beneath military bases as part of an effort to refill the Strategic Petroleum Reserve (SPR), according to a report from Rigzone. The reserve is poised to reach its lowest level since 1982. Any federal action to acquire significant volumes of crude for the SPR can influence broader market demand and pricing benchmarks that affect Bakken producers. In corporate earnings, EOG Resources reported first-quarter profits that exceeded expectations. The company posted $1.83 billion in net income adjusted for nonrecurring items, Rigzone reported. The result was up both quarter-on-quarter and year-on-year, driven by higher crude and condensate production. EOG is a significant operator in the Williston Basin, and its strong financial performance reflects continued efficiency and output in key shale plays, including the Bakken. Meanwhile, industry attention is on first-quarter 2026 production figures from the largest U.S. oil majors. A Rigzone report highlighted...

🌅Afternoon Wire·May 7

Regulatory

Global Oil & Gas Developments Provide Price Context for Bakken

Aker BP reported higher quarterly profits, citing an increase in liquids prices that offset lower sales volumes, according to Rigzone. The news, published Thursday, highlights the continued influence of commodity prices on operator financials, a key factor for Bakken producers whose economics are similarly tied to crude oil and natural gas prices. Separately, Italian energy giant Eni confirmed the size of what it calls a 'giant' natural gas and condensate discovery offshore Indonesia, Rigzone reported. The Geliga-1 discovery in the Kutei Basin is preliminarily assessed to hold about 5 trillion cubic feet of natural gas and 300 million barrels of condensate. While these are international developments, they are relevant to the Bakken formation's operating environment. Sustained liquids pricing, as benefited Aker BP, supports capital budgets and drilling activity in North Dakota. Strong global oil prices directly improve the cash flow and wellhead economics for Bakken operators. Major discoveries like Eni's,...

🌅Afternoon Wire·May 7