Tuesday, May 12, 2026

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Oil Prices

Oil Prices Surge Over 3%, WTI Tops $101 Amid Supply Concerns

Global oil prices surged more than 3% in early Tuesday trading, with West Texas Intermediate (WTI) crude climbing above $101 per barrel. The rally strengthens the pricing environment for crude produced in the Bakken formation. WTI crude settled at $101.36 per barrel, a gain of $3.29 or 3.35%. The international benchmark Brent crude rose to $107.6, up $3.39 or 3.25%. The Bakken crude differential, the discount at which Bakken barrels trade relative to WTI at the Cushing, Oklahoma hub, was recorded at -$3.42. Natural gas prices held relatively steady at $2.9 per MMBtu, down just one cent. The significant price jump for crude comes amid ongoing market tightness and geopolitical supply risks. While specific catalysts for today's move were not detailed in the provided sources, such sharp gains typically reflect concerns over potential supply disruptions or stronger-than-expected demand signals. The related news of potential fuel price increases in a major...

☀️Morning Wire·May 12

Rig Report

North Dakota Rig Count Holds at 21 for Another Day

The number of active drilling rigs in North Dakota's Bakken formation remained unchanged at 21 on Tuesday, May 12, according to live data from Bakken Wire. There were no new rigs added, none removed, and no rigs that moved locations since the prior day's report. The current level represents a slight decline in activity compared to recent weeks. One week ago, on May 5, the state reported 23 active rigs, indicating a net drop of two rigs over the past seven days. Looking back one month to April 12, when the count stood at 24 rigs, the Bakken has seen a net reduction of three active drilling units. This steady local activity comes as the broader North American market saw a slight increase in rigs. According to a report from Rigzone published May 11, North America added two rigs week-on-week, based on the latest Baker Hughes rotary rig count. The...

☀️Morning Wire·May 12

Daily Activity

Devon Energy Permits Five-Well Pad in McKenzie County's CAMP Field

The North Dakota Department of Mineral Resources (DMR) approved five new drilling permits on Monday, May 11, 2026, all for a single pad operated by Devon Energy Williston, L.L.C. The agency's daily activity report also highlighted the completion of a high-producing well for Burlington Resources. All five approved permits are for the Lindvig pad in McKenzie County's CAMP field. The permits, numbered 42921 through 42925, are for the Lindvig 23-22-21-20F 1H through 5H wells. This batch approval signals Devon's commitment to multi-well pad development in a core area of the Bakken. In other permitting activity, the DMR processed four permit renewals, all for XTO Energy Inc. in McKenzie County's North Tobacco Garden field. The renewed permits for the Lawlar 34X-10H, 34X-10D, and 34X-10HXE wells are listed as 'Confidential'. The sole well completion reported was a strong producer. Burlington Resources Oil & Gas Company LP completed the Phantom Backbone 7D-ULW well...

☀️Morning Wire·May 12

Pipeline & Infrastructure

Judge to Vacate $28M DAPL Protest Judgment as Settlement Finalized

A federal judge has indicated he will vacate a nearly $28 million judgment against the U.S. government, clearing the way for North Dakota to finalize a settlement over costs incurred during the Dakota Access Pipeline protests. According to Bing News, U.S. District Judge Daniel Traynor signaled his intent during a hearing on Friday, May 8, 2026. The pending settlement concludes a lawsuit filed by North Dakota in 2019. The state argued that the federal government allowed protesters to camp on federal land during the 2016 and 2017 demonstrations near the Standing Rock Sioux Reservation, forcing North Dakota to spend millions on law enforcement and cleanup. Judge Traynor had ruled in the state's favor in April 2025, ordering the federal government to pay $28 million. Attorneys for both parties stated during the hearing that North Dakota is still expected to receive a payment from the federal government, though the exact settlement...

☀️Morning Wire·May 12

Regulatory

Federal DAPL Settlement Advances, North Dakota Secures $36M for Oil Recovery

A federal judge has signaled he will vacate a nearly $28 million judgment against the U.S. government related to Dakota Access Pipeline protest costs, clearing the path for a settlement. According to the North Dakota Monitor, U.S. District Court Judge Daniel Traynor indicated his intent during a hearing on Friday, May 8, 2026. The lawsuit, originally filed by North Dakota in 2019, argued the federal government allowed protesters to camp on federal land during the 2016-2017 demonstrations near the Standing Rock Sioux Reservation. The state contended this led to millions in law enforcement and cleanup expenses. Judge Traynor had ruled in the state's favor in April 2025, ordering the federal government to pay $28 million. Attorneys for both parties stated during the hearing that North Dakota is still expected to receive a payment from the federal government, though the final settlement amount has not been disclosed. According to court testimony...

☀️Morning Wire·May 12

Global Markets

China LNG Demand Rises as Xi-Trump Summit Confirmed

China's imports of liquefied natural gas (LNG) are showing signs of recovery, a potential indicator of strengthening industrial demand in a key global market. According to ship-tracking data compiled by Bloomberg and reported by Rigzone, the 30-day moving average for LNG imports has increased to its highest level since late February 2026. Separately, Rigzone reported that China has confirmed a summit between President Xi Jinping and former U.S. President Donald Trump. The meeting, which has been rescheduled once already, is slated to occur following Trump's last visit to China in 2017. For Bakken operators, these developments represent two interrelated positive signals. Increased LNG imports into China suggest rising energy consumption, which often correlates with broader economic activity and demand for all hydrocarbons, including crude oil. As a significant exporter of light sweet crude, North Dakota's production is sensitive to global demand trends, particularly from major Asian economies. The confirmation of...

☀️Morning Wire·May 12

Global Markets

Global Supply Shifts Offer Brief Respite to European Chemicals

The ongoing conflict in the Middle East is creating temporary competitive advantages for European chemical producers while forcing major energy firms to adjust global portfolios, according to industry reports from May 12, 2026. The supply shock from the Iran war, which has disrupted flows of key feedstocks like naphtha and LPG from the Persian Gulf, is hitting Asian petrochemical producers hardest, according to OilPrice.com. Europe's chemicals sector, described as being in crisis since 2022, saw a slight positive momentum beginning in March, according to OilPrice.com. Matthias Zachert, CEO of Germany-based LANXESS, stated that disrupted Asian supply chains have caused customers to turn back to European suppliers. "Supply capability is currently a significant competitive advantage," Zachert said, though he noted the company has raised prices to pass on higher costs. Evonik also reported increased sales volumes in certain businesses since March, which it attributed to customer pre-buying due to the war....

☀️Morning Wire·May 12

Operator News

Geopolitical Tensions, War Disruptions Impact Global Gas Markets

Global energy markets are facing renewed geopolitical uncertainty and supply chain disruptions, according to news reports Tuesday, factors that can influence price volatility for Bakken oil and gas producers. U.S. President Donald Trump stated that a USA-Iran ceasefire is on "massive life support," according to Rigzone. Trump was quoted saying, "I would say the ceasefire is on massive life support where the doctor walks in and says, 'sir, your loved one has approximately a one percent chance of living.'" Escalating tensions in the Middle East historically contribute to risk premiums in global crude oil prices, which can impact the benchmark prices used for Bakken crude. Meanwhile, ADNOC Gas reported lower first-quarter profits due to war-related disruptions, Rigzone reported. The company logged net income of $1.08 billion for the quarter, a 15 percent decline year-over-year, attributed to export disruptions and lower domestic demand. This highlights how regional conflicts can directly impact...

☀️Morning Wire·May 12

🔆Midday Wire11:00 AM CST

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Oil Prices

Oil Prices Surge Over 3% on Geopolitical Tensions; Bakken Differential Widens

Oil prices rallied sharply in midday trading Tuesday, with West Texas Intermediate (WTI) crude gaining $3.41 to settle at $101.48 per barrel, a 3.48% increase. The global benchmark, Brent crude, rose $3.42 to $107.63, according to live price data. The primary driver for the surge is renewed geopolitical risk, with U.S. President Donald Trump warning that the Iran ceasefire is on "life support," OilPrice.com reported. Concurrently, Gulf producers Saudi Arabia and the UAE have signaled that full repairs to drone-damaged oil infrastructure may not be completed until 2027, extending supply concerns. These factors offset bearish demand signals from China. Chinese crude imports averaged only 9.25 million barrels per day in April, a decline of 2.4 million b/d from March and the lowest pace since July 2022, according to OilPrice.com. Weakening demand and high crude costs have pushed independent Chinese refinery run rates down to approximately 50% so far in May....

🔆Midday Wire·May 12

Pipeline & Infrastructure

Judge to Vacate $28M DAPL Protest Judgment as Settlement Finalized

A federal judge has signaled he will vacate a nearly $28 million judgment against the U.S. government, allowing North Dakota to finalize a settlement over costs from the Dakota Access Pipeline protests. According to Bing News, U.S. District Judge Daniel Traynor indicated his intent during a hearing on Friday, May 8, 2026. The settlement concludes a lawsuit filed by the state in 2019. The state argued that the federal government allowed protesters to camp on federal land near the Standing Rock Sioux Reservation during the 2016 and 2017 demonstrations. This, North Dakota contended, forced the state to spend millions on law enforcement and cleanup. Judge Traynor had ruled in the state's favor in April 2025, ordering the federal government to pay $28 million. Attorneys for both parties stated during the recent hearing that North Dakota is still expected to receive a payment from the federal government, though the final settlement...

🔆Midday Wire·May 12

Regulatory

Federal DAPL Protest Settlement Advances, State Gets $36M for Oil Recovery

A federal judge has signaled he will vacate a nearly $28 million judgment against the U.S. government related to Dakota Access Pipeline protest costs, clearing the path for a settlement between North Dakota and federal authorities. According to the North Dakota Monitor, U.S. District Judge Daniel Traynor indicated his intent during a hearing on Friday, May 8, 2026. The settlement, details of which are not yet public, is still expected to result in a payment to the state. The lawsuit, originally filed in 2019, argued that the federal government allowed protesters to camp on federal land during the 2016-2017 demonstrations near the Standing Rock Sioux Reservation. This, the state contended, forced North Dakota to spend millions on law enforcement and cleanup. Judge Traynor had ruled in the state's favor in April 2025, ordering the federal government to pay $28 million. The Department of Justice has sought to have those rulings...

🔆Midday Wire·May 12

Global Markets

China LNG Import Rebound Could Signal Global Demand Support

A recovery in China's liquefied natural gas imports may signal strengthening global energy demand, a potential positive indicator for Bakken operators, according to data reported Tuesday. The 30-day moving average for China's LNG imports has increased to its highest level since late February, according to ship-tracking data compiled by Bloomberg and reported by Rigzone. While the Bakken formation is primarily an oil play, its production yields significant associated natural gas. Increased global LNG demand, particularly from major importers like China, can tighten the overall natural gas market. This can provide broader support for North American gas prices. For Bakken producers, stronger gas prices improve the economics of wells and can make gas capture and processing infrastructure investments more viable, reducing flaring. The development is seen as a signal of recovering industrial activity in a major global economy. China is the world's largest importer of LNG, and its demand trends are...

🔆Midday Wire·May 12

Global Markets

Global LNG Shock, Suriname Progress Hit as US Oil Workforce Shrinks

A supply shock in global liquefied natural gas (LNG) markets is triggering a major fuel shift in Asia, according to industry reports on Tuesday. Spiking LNG prices and reduced supply from the Middle East have prompted Japan and South Korea to significantly raise coal power generation and coal imports in recent weeks. Gas-fired power generation in Japan and South Korea slumped to multi-month lows in April and early May, according to OilPrice.com. This is due to a crash in supply from the Middle East, with no Qatari LNG shipment passing through the Strait of Hormuz between February 28 and this past weekend. LNG prices in north Asia have spiked by more than 60% since the war began, while international seaborne coal prices have increased by a much more modest 13%. As a result, both nations have ramped up coal-fired power generation. In Japan, coal power generation rose by 11.1% in...

🔆Midday Wire·May 12

Operator News

Global Shipping, LNG Developments Could Impact Bakken Market Dynamics

One of the world's largest commodity shipping companies is planning for the Strait of Hormuz to remain effectively shut for the rest of the year, according to a report from Rigzone. The company, Norden, is making operational assumptions based on this prolonged disruption scenario. Such a major blockage of a key oil transit route could have downstream effects on global crude prices and market volatility. For Bakken operators, sustained higher global prices due to supply constraints could provide a supportive price environment, though increased volatility also presents marketing challenges. Separately, Petronas has inked a 20-year charter deal for five new LNG carriers, Rigzone reported. The vessels are to be delivered beginning in 2029, with MISC providing project management and operational services. This long-term investment in LNG shipping capacity underscores the growing global demand for natural gas and the infrastructure being built to meet it. In another LNG development, partners in...

🔆Midday Wire·May 12

Pipeline & Infrastructure

Global Gas Market Volatility Highlights Bakken Export Reliance

Global natural gas market volatility, driven by geopolitical tensions and supply disruptions, underscores the critical importance of pipeline infrastructure for Bakken producers, according to recent international reports. Developments in the Middle East and statements from U.S. leadership point to an unstable global energy landscape that can impact domestic markets. U.S. President Donald Trump stated on May 12 that the USA-Iran ceasefire is on "massive life support," according to Rigzone. He likened its chances to a patient with "approximately a one percent chance of living." Such heightened tensions in a key oil-producing region have historically contributed to price volatility, which can affect the economics of Bakken crude and associated gas production. Simultaneously, international gas companies are reporting the direct impact of conflict on operations. ADNOC Gas reported a first-quarter net income of $1.08 billion, a 15 percent year-on-year decline, Rigzone reported. The company cited export disruptions and lower domestic demand due...

🔆Midday Wire·May 12

Regulatory

Oil Prices Climb on Strait of Hormuz Crisis Fears

Global oil prices rose Monday as escalating tensions in the Middle East threatened to prolong the disruption of a critical maritime chokepoint, according to a report from Rigzone. The market movement was driven by growing fears that a ceasefire with Iran could collapse, keeping the Strait of Hormuz disrupted. The Strait of Hormuz is a vital passage for seaborne oil exports from the Persian Gulf. Any sustained disruption typically leads to increased volatility and higher prices for international crude benchmarks like Brent and WTI, which Bakken crude is priced against. For operators in the North Dakota Bakken, higher global benchmark prices can improve netbacks for their crude, which is primarily transported via pipeline and rail to refining markets. Increased price realizations can support cash flow and influence drilling and completion decisions, though Bakken-specific differentials also play a key role. Geopolitical events that tighten global supply often provide a supportive price...

🔆Midday Wire·May 12

🌅Afternoon Wire4:00 PM CST

Oil Prices

WTI, Brent Crude Rise Over 4% as Trump Floats Gas Tax Holiday, Israel-Iran Tensions Simmer

Oil prices climbed sharply Tuesday morning, adding to recent gains as political discussions about a potential federal gasoline tax holiday merged with simmering supply concerns in the Middle East. West Texas Intermediate (WTI) crude rose $4.11, or 4.11%, to $102.41 per barrel. Brent crude, the international benchmark, gained $3.29, or 3.16%, to trade at $107.59. Natural gas prices also moved higher, up $0.08 to $2.83 per MMBtu. The Bakken crude differential at Clearbrook, Minnesota, was quoted at $-3.42 per barrel versus WTI, maintaining the wide discount that has characterized the local grade for months. The price rally coincides with political headlines. Former President Donald Trump told CBS News Monday that he favors the idea of a temporary federal gas tax holiday. “I think it’s a great idea,” he said, suggesting the tax could be removed “for a period of time” until prices recede. Current Energy Secretary Chris Wright echoed that...

🌅Afternoon Wire·May 12

Rig Report

Bakken Rig Count Holds at 23 as Two New Rigs Deploy in Mountrail County

The number of active drilling rigs in North Dakota held steady at 23 on Tuesday, May 12, 2026, according to live rig data reported to Bakken Wire. The total count saw no net change from the previous day despite the addition of two new rigs to the field. Both of the new rigs deployed on Monday are operating in Mountrail County, a core production area of the Bakken formation. Silver Hill Energy Operating, LLC is running the NABORS B27 rig at location 158-94-35, while EOG RESOURCES, INC. has activated the H & P 259 rig at 152-90-2, the data shows. No rigs were reported as removed or moved locations. The current rig level of 23 matches the count from one week ago, on May 5, 2026, indicating a period of short-term stability in drilling activity. However, compared to a month ago, the state's active rig fleet has contracted slightly. On...

🌅Afternoon Wire·May 12

Pipeline & Infrastructure

Federal Judge to Vacate $28M DAPL Protest Judgment as Settlement Finalized

A federal judge has signaled he will vacate a nearly $28 million judgment against the U.S. government, clearing the way for North Dakota to finalize a settlement over costs incurred during Dakota Access Pipeline protests. The decision moves the state closer to recouping millions spent on law enforcement and cleanup. U.S. District Court Judge Daniel Traynor indicated his intent to vacate the judgment during a hearing on Friday, May 8, 2026, according to a report from the North Dakota Monitor. Attorneys for both the state and federal government stated that North Dakota is still expected to receive a payment, though the final settlement amount has not been disclosed. The lawsuit, originally filed by North Dakota in 2019, argued that the federal government allowed protesters to camp on federal land near the Standing Rock Sioux Reservation during the prolonged demonstrations in 2016 and 2017. The state contended this led to extraordinary...

🌅Afternoon Wire·May 12

Regulatory

Federal DAPL Protest Judgment Vacated as State Secures $36M for Oil Recovery

A federal judge signaled Friday he will vacate a nearly $28 million judgment against the federal government related to costs North Dakota incurred during protests against the Dakota Access Pipeline, according to Bing News. The move allows the state and federal government to finalize a settlement agreement. Attorneys for both parties stated during a Friday hearing that North Dakota is still expected to receive a payment from the federal government, though the amount has not been disclosed, Bing News reported. The lawsuit, filed in 2019, argued the federal government allowed protesters to camp on federal land during demonstrations near the Standing Rock Sioux Reservation in 2016 and 2017, leading North Dakota to spend millions on law enforcement and cleanup efforts. North Dakota U.S. District Court Judge Daniel Traynor ruled in favor of the state in April 2025, ordering the federal government to pay $28 million. According to court testimony reported...

🌅Afternoon Wire·May 12

Global Markets

Iraq Government Deadline, China LNG Demand Create Global Market Crosscurrents

A critical deadline for forming Iraq's government later this month and signs of recovering natural gas demand in China are creating divergent forces in global energy markets, with implications for Bakken crude oil prices and operators. According to a report from OilPrice.com, Iraq's Prime Minister-designate, Ali al-Zaidi, has until May 27 to form a new government. Al-Zaidi, a compromise candidate between pro-West and pro-Iran factions, must select a cabinet that can be approved by Iraq's parliament. Failure to do so by the deadline would trigger a 15-day window for the president to appoint another nominee, who would then have 30 days to attempt to form a government. A similar political deadlock occurred in 2020 when two consecutive nominees failed. Extended political uncertainty in Iraq, a major OPEC producer and key supplier to global markets, historically introduces a volatility premium to global oil prices. For Bakken producers, sustained higher prices on...

🌅Afternoon Wire·May 12

Global Markets

Global Tensions, Workforce Decline Pose Risks for Bakken Market

Iraq's political future hangs in the balance as a new prime minister nominee faces immediate pressure from the U.S. over Iranian influence, according to an OilPrice.com report. The Coordination Framework, Iraq's largest parliamentary bloc, has nominated billionaire businessman Ali al-Zaidi for the post. U.S. President Donald Trump has expressed satisfaction with the nomination, stating, "With our help, he won, and we want him to do very well." If al-Zaidi forms a government, his top challenge will be addressing U.S. concerns regarding Iran-linked militias and Iraq's economic ties to Iran. Washington has made curbing militia influence a key condition for stronger cooperation. This geopolitical friction centers on a nation critical to global oil supply, with potential implications for international crude markets that set the price for Bakken crude. Simultaneously, major supply chain disruptions are being planned for, with one of the world's largest commodity shipping companies assuming the Strait of Hormuz...

🌅Afternoon Wire·May 12

Operator News

** Petronas, Inks Ink 20-Year Charter Deal for 5 LNG Carriers

BODY: Malaysia's state-owned energy company Petronas has entered into a 20-year charter agreement for five new liquefied natural gas (LNG) carriers, according to a report from Rigzone. The deal, announced Tuesday, covers the provision of project management services during the shipbuilding phase, followed by full operational and ship management upon the vessels' delivery beginning in 2029. In a separate development, PNG LNG project partners have approved a new upstream development in Papua New Guinea, Rigzone reported. The targeted Agogo Production Facility is designed to deliver incremental production of approximately 135 million cubic feet per day, with first gas expected in 2028. Meanwhile, European energy firm Uniper stated that its broadly diversified gas and LNG procurement portfolio is well-positioned to withstand geopolitical risks and resulting market fluctuations. The company made the statement Tuesday while reporting a rise in first-quarter profit. The series of announcements underscores the ongoing global investment in LNG...

🌅Afternoon Wire·May 12

Pipeline & Infrastructure

Geopolitical Tensions Threaten Ceasefire, Lift Oil Prices

Global oil prices rose Monday and Tuesday amid deepening concerns over the security of Middle Eastern supply routes, a development that directly influences the price of Bakken crude. The primary catalyst is the escalating crisis around the Strait of Hormuz, a critical chokepoint for global oil shipments. According to Rigzone, oil prices jumped on May 11 as fears grew that a ceasefire with Iran could collapse, which would prolong disruptions in the Strait of Hormuz. Those concerns were underscored on May 12 when U.S. President Donald Trump stated the USA-Iran ceasefire is on "massive life support," comparing its chances to a one percent survival rate, Rigzone reported. Simultaneously, the tangible impacts of regional conflict are appearing in corporate earnings. ADNOC Gas reported a 15 percent year-over-year decline in its first-quarter net income, which fell to $1.08 billion. The company cited export disruptions and lower domestic demand due to the war,...

🌅Afternoon Wire·May 12