Wednesday, May 13, 2026

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Oil Prices

Oil Prices Hold Above $100 as Jet Fuel Crisis Looms

Front-month WTI crude oil futures traded at $101.83 per barrel Wednesday morning, down 35 cents on the day, according to live price data. The global Brent benchmark was at $107.70, while the Bakken crude differential widened to a discount of $3.42 per barrel versus WTI. The sustained high price environment is being driven by a severe tightening of global jet fuel supplies, according to a report from OilPrice.com. The closure of the Strait of Hormuz due to the war in Iran has blocked Middle Eastern supplies and caused a crash in exports from Asia, creating what industry officials call the "most stressed barrel" in the current supply shock. Jet fuel prices spiked to over $200 per barrel in April and remain near $150. Fatih Birol, executive director of the International Energy Agency (IEA), warned in mid-April that Europe had only about six weeks of jet fuel supply remaining, OilPrice.com reported....

☀️Morning Wire·May 13

Rig Report

Bakken Rig Count Holds Steady at 23

North Dakota's active drilling rig count remained unchanged on Wednesday, May 13, 2026, holding at 23, according to live rig data from Bakken Wire. The count showed no movement from the previous day, with no new rigs added, none removed, and none reported as having moved locations. The current level represents a stable plateau over the past week. The rig count also stood at 23 one week ago, on May 6, 2026, indicating no net change in drilling activity over that seven-day period. When viewed on a slightly longer timeline, the current activity level reflects a modest increase. One month ago, on April 13, 2026, the state's active rig count was 22. The present count of 23 represents a gain of one rig over that four-week period. A rig count of 23 places Bakken drilling activity significantly below the boom-era peaks but within the range that has persisted in recent...

☀️Morning Wire·May 13

Daily Activity

Oasis, Silver Hill Lead 10 New Bakken Permits; Devon, Oasis Renewals Filed

North Dakota's Department of Mineral Resources approved 10 new drilling permits in its latest daily activity report, with Oasis Petroleum North America LLC and Silver Hill Energy Operating LLC filing the majority, according to the report. Oasis Petroleum secured five new permits for a development project in Williams County. All five are located at LOT 2 in the Lake Trenton field, according to the DMR report. The approved permits are for the Tunnock 5303 12-2 3B, 4B, and 5B, and the Jaffa 5303 12-2 2B. Silver Hill Energy Operating LLC was approved for four new permits in Burke County, according to the report. The permits are for the Jacie W 159-93-6-19-1MBHXL, Jacie W 159-93-6-19-2MBHXL, Jacie E 159-93-6-19-3MBHXL, and Jacie E 159-93-6-19-4MBHXL wells. All four are listed in a 'CONFIDENTIAL' field. The final new permit was granted to Phoenix Operating LLC for the Danny Noonan 1 SWD well in Divide County,...

☀️Morning Wire·May 13

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 federal government for costs North Dakota incurred during the Dakota Access Pipeline (DAPL) protests, clearing the way for a final settlement. According to the North Dakota Monitor, U.S. District Judge Daniel Traynor indicated his intent during a hearing on Friday, May 8, 2026. The lawsuit, originally filed in 2019, argued the federal government allowed protesters to camp on federal land near the Standing Rock Sioux Reservation in 2016 and 2017, forcing the state to spend millions on law enforcement and cleanup. Judge Traynor had ruled in favor of North Dakota in April 2025, ordering the federal government to pay $28 million. Attorneys for both parties stated 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 reported by the...

☀️Morning Wire·May 13

Regulatory

ND Wins $36M for EOR, Settles DAPL Protest Cost Case

A federal judge has signaled he will vacate a nearly $28 million judgment against the federal government related to Dakota Access Pipeline protest costs, according to Bing News. The move allows North Dakota and the federal government to finalize a settlement agreement. 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. This led 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. During a hearing on Friday, May 8, 2026, attorneys for both parties stated North Dakota is still expected to receive a payment from the federal government, though the amount has not been disclosed. According to court testimony reported by the North Dakota...

☀️Morning Wire·May 13

Global Markets

Global Conflicts Reshape Oil Landscape, Influencing Bakken Outlook

The ongoing conflict in Iran has fundamentally altered the global energy landscape, according to an industry expert cited by Rigzone. J.P. Hanson, Managing Director and Global Head of the Oil & Gas Group at Houlihan Lokey, made the statement in a report published Wednesday. Simultaneously, Russia expects its oil production to remain flat in 2026, Rigzone separately reported. The country anticipates only modest growth in the coming two years as its energy infrastructure faces intense drone attacks from Ukraine. These dual geopolitical developments are tightening global oil supply fundamentals. Persistent conflict in the Middle East, a key oil-producing region, introduces a sustained risk premium and volatility to crude markets. The constraint on Russian output, a major source of global supply prior to the Ukraine war, further removes potential barrels from the market. For Bakken operators in North Dakota, this external environment supports a firmer price floor for West Texas Intermediate...

☀️Morning Wire·May 13

Global Markets

Global Tensions Lift Prices as Japan Boosts Runs, BP Expands in Uzbekistan

Global crude oil prices rose sharply this week amid fears of prolonged supply disruptions in the Persian Gulf, according to Rigzone. The ongoing tensions continue to underpin market volatility, a key factor for Bakken producers who price their output against international benchmarks. Meanwhile, Japan's refinery utilization is rebounding as strategic stockpile releases and alternative crude supplies ease a recent supply crunch, OilPrice.com reported. Data from the Petroleum Association of Japan (PAJ) showed the average utilization rate hit 73.3% for the week ending May 9, up from rates in the 60% range seen in April. Japan is releasing 80 million barrels from its national reserves as part of an International Energy Agency-coordinated 400-million-barrel release. This strategic release, Japan's largest ever, is helping refiners increase throughput alongside rare cargoes from producers outside the Middle East, such as Azerbaijan and Latin America. Japan had previously relied on the Middle East for up to...

☀️Morning Wire·May 13

Operator News

Petrobras Misses Estimates, US Workforce Declines, Hormuz Shutdown Looms

Brazil's state-controlled Petrobras missed earnings estimates after holding domestic gasoline prices stable during a war-driven price surge, according to a report from Rigzone. The report, published May 12, highlights the financial impact of government price controls on a major national oil company. Separately, Rigzone reported that the U.S. oil and gas extraction workforce has hit its lowest level since 2022, based on data from the Bureau of Labor Statistics website. The continued tight labor market presents ongoing challenges for domestic producers, including those in the Bakken formation, where finding and retaining workers remains a key operational hurdle. In global shipping news, one of the world's largest commodity shipping companies, Norden, is planning for a scenario where the Strait of Hormuz remains effectively shut for the rest of the year, Rigzone reported May 12. A prolonged closure of this critical chokepoint, which handles about one-fifth of global oil consumption, would sustain...

☀️Morning Wire·May 13

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Hold Steady as Geopolitical Factors Counterbalance

Front-month West Texas Intermediate (WTI) crude oil futures were virtually unchanged in midday trading Wednesday, May 13, 2026, holding above $102 per barrel. WTI traded at $102.19, up a marginal one cent. The international benchmark Brent crude fell 1.13% to $106.55, according to live price data. The price stability comes amid continued tight global supplies due to the ongoing war involving Iran and the closure of the Strait of Hormuz. This geopolitical premium is helping to offset typical market pressures, keeping Bakken crude competitive. The Bakken differential to WTI was recorded at -$3.42 per barrel. A key supportive factor is a surge in Russian oil revenues, which highlights how high prices are compensating for lost production elsewhere. According to a report from OilPrice.com citing the International Energy Agency, Russia's oil export revenues hit $19.18 billion in April 2026, a $6.28 billion increase from April 2025. This occurred despite Russia's total...

🔆Midday Wire·May 13

Operator News

ExxonMobil Battles Shareholder Concerns Over Texas Move

ExxonMobil is insisting that its proposed move to Texas will not erode shareholder rights, according to a report from Rigzone. The company is fighting off calls for shareholders to vote down the relocation proposal. The calls to oppose the move came from the New York City Comptroller's Office and proxy advisory firm Glass Lewis, Rigzone reported. Both entities urged shareholders to vote against the plan at the company's annual meeting. While the specific shareholder concerns were not detailed in the report, such moves often involve changes to corporate governance structures. ExxonMobil's defense suggests the relocation is a strategic business decision it believes will benefit the company and its investors. For Bakken operators and the North Dakota oil industry, ExxonMobil's corporate strategy is of significant interest. ExxonMobil, through its subsidiary XTO Energy, is a major operator in the Bakken formation. Corporate decisions made at the parent company level can influence capital...

🔆Midday Wire·May 13

Pipeline & Infrastructure

DAPL Protest Cost Settlement Nears as Pipeline Expansion Plans Surface

A federal judge has indicated he will vacate a nearly $28 million judgment against the U.S. government related to Dakota Access Pipeline protest costs, clearing the way for a final settlement. According to a report from the North Dakota Monitor cited by Bing News, U.S. District Judge Daniel Traynor signaled his intent during a hearing on Friday, May 8, 2026. The settlement would resolve a 2019 lawsuit where North Dakota argued the federal government allowed protesters to camp on federal land during the 2016-2017 demonstrations near the Standing Rock Sioux Reservation. The state said this led to millions in law enforcement and cleanup costs. 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 North Dakota is still expected to receive a payment, though the final settlement amount has not been disclosed. According to court testimony,...

🔆Midday Wire·May 13

Regulatory

ND Wins $36M Federal EOR Grant, DAPL Protest Settlement Advances

North Dakota is set to receive a multimillion-dollar federal payment to settle a lawsuit over Dakota Access Pipeline protest costs, while simultaneously securing a $36 million grant for enhanced oil recovery projects in the state, according to reports from this week. According to Bing News, U.S. District Court Judge Daniel Traynor signaled on Friday, May 8, 2026, that he will vacate a nearly $28 million judgment against the federal government. The judgment was awarded to North Dakota in April 2025 after the state argued the federal government allowed protesters to camp on federal land during the 2016-2017 demonstrations near the Standing Rock Sioux Reservation, leading to millions spent on law enforcement and cleanup. Attorneys for both parties stated during a hearing that North Dakota is still expected to receive a payment from the federal government as part of a settlement, though the final amount has not been disclosed. The Department...

🔆Midday Wire·May 13

Global Markets

Global Fuel Shortage, Iran War Strain Could Reshape Bakken's Trade Routes

The ongoing war with Iran and a pressing global shortage of distillate fuels are creating pressures that could fundamentally reorganize international trade, with direct implications for Bakken crude oil exports, according to industry analyses published Wednesday. The conflict has made supplying U.S. troops difficult and arrives as the world economy was already reaching resource limits, with distillate fuel oil—diesel and jet fuel—being the most critical constraint. This fuel shortage is forcing a strategic re-evaluation of long-haul transportation. An article from OilPrice.com suggests the upcoming meeting between U.S. President Trump and China's President Xi in Beijing on May 14-15 presents an opportunity to reorganize global trade into shorter routes to conserve fuel. The proposal envisions splitting most world trade into two major spheres centered on the U.S. and China, drastically reducing fuel used for maritime and air transport. For North Dakota's oil industry, such a shift toward regionalized trade could significantly...

🔆Midday Wire·May 13

Global Markets

BLM Rescinds Public Lands Rule; Eni Tests Biofuel; TotalEnergies Returns to Syria

The U.S. Bureau of Land Management has fully rescinded a Biden-era public lands rule, a move Interior Secretary Doug Burgum said "prevented energy and mineral production, timber management, grazing and recreation across the West," according to Rigzone. The decision, announced May 13, 2026, removes a regulatory hurdle for onshore development managed by the federal agency. For Bakken operators with federal leases or those eyeing expansion on public lands in the Western U.S., the rescission could streamline permitting and development processes. Federal mineral ownership is a factor in parts of the Williston Basin, though less predominant than in other Western states. In other global energy news, Italian energy major Eni reported the successful testing of its biodiesel on a cruise ship, Rigzone reported. Eni said tests conducted with an MSC cruise ship showed that its Hydrogenated Vegetable Oil (HVO) biofuel can power maritime transport without requiring engine upgrades. The development highlights...

🔆Midday Wire·May 13

Operator News

BP Enters Uzbekistan, Strait Disruption Lifts Oil, Petrobras Misses

BP has entered its first project in Uzbekistan, securing six exploration blocks under the North Ustyurt production sharing contract, according to Rigzone. The move represents a significant international expansion for the global operator. Oil prices climbed sharply on fears of prolonged supply disruptions in the Persian Gulf, Rigzone reported. The geopolitical tension, centered on a key shipping strait, lifted benchmark Brent and West Texas Intermediate (WTI) crude prices. For Bakken operators, rising global crude prices generally support stronger margins for production from the North Dakota formation. However, the region's economics are also tied to domestic WTI pricing and local infrastructure constraints. Separately, Brazil's state-controlled Petrobras missed earnings estimates, Rigzone reported. The company held domestic gasoline prices stable despite the war-driven surge in crude costs, impacting its financial results. The earnings miss by a major national oil company illustrates the complex balance between upstream profitability and downstream consumer price controls. While...

🔆Midday Wire·May 13

Production Data

Bakken Rig Count Holds at 23 as Oil Prices Remain Elevated

North Dakota's Bakken formation continues to produce at a steady pace as benchmark oil prices hold firm, with the active rig count unchanged at 23 as of Wednesday, May 13, 2026. West Texas Intermediate crude traded at $102.19 per barrel, a marginal daily gain, while the Bakken differential stood at a discount of $3.42 to the WTI benchmark. The current rig count, a leading indicator of future drilling and production activity, remains at historically low levels for the play. This suggests operators are maintaining capital discipline and focusing on efficiency from existing wells rather than embarking on significant new drilling campaigns. Historically, Bakken production levels have followed changes in the active rig count with a lag of several months. The sustained high price environment, with WTI consistently above $100, provides strong cash flow for Bakken operators and royalty owners. However, the muted rig count response indicates that other factors, such...

🔆Midday Wire·May 13

🌅Afternoon Wire4:00 PM CST

Oil Prices

** Oil Prices Hold Steady as WTI, Brent See Modest Gains; Bakken Discount Narrows

BODY: Oil prices showed minimal movement in Wednesday's trading session, maintaining levels seen in recent days as market participants weighed geopolitical tensions against broader economic indicators. The benchmark West Texas Intermediate (WTI) crude contract for July delivery edged up $1.36, or 1.33%, to settle at $100.82 a barrel. The Brent crude contract for the same month gained $2.38, or 2.21%, to close at $105.39. Natural gas prices also saw an increase, with the front-month contract rising $0.02 to settle at $2.86 per million British thermal units. In the Bakken region, the discount for Bakken-grade crude at the Clearbrook, Minnesota hub tightened slightly. It was quoted at $-3.42 per barrel below WTI, according to pricing data, compared with $-4.00 differential reported in recent sessions. The modest gains come as analysts begin to publish longer-term forecasts. In a note released Wednesday, J.P. Morgan analysts outlined their first oil price targets for the...

🌅Afternoon Wire·May 13

Rig Report

Bakken Rig Count Jumps to 26 as Hess Adds Three Drills

The number of active drilling rigs in North Dakota's Bakken formation rose to 26 on Wednesday, May 13, 2026, marking a net gain of three rigs from the previous day. According to live rig data, no rigs were taken offline, while two rigs were reported to have moved to new locations within the play. The day's activity was dominated by Hess Bakken Investments II, LLC, which added three new rigs to the field. All three rigs, identified as ENSIGN 532, are operating at the same location: 154-93-8 in Mountrail County. The data also shows two rigs changing locations. Oasis Petroleum North America LLC moved its PATTERSON 808 rig to 152-102-21 in McKenzie County, while Slawson Exploration Company, Inc. relocated its NABORS X25 rig to 157-91-16 in Mountrail County. The current count of 26 rigs continues a recent upward trend in drilling activity across the Williston Basin. Compared to one week...

🌅Afternoon Wire·May 13

Pipeline & Infrastructure

DAPL Protest Judgment to be Vacated as Settlement Finalized

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, allowing North Dakota to finalize a settlement. According to the North Dakota Monitor, U.S. District Judge Daniel Traynor indicated his intent during a hearing on Friday, May 8, 2026. The lawsuit, originally filed by the state 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 led 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 final settlement amount has not been disclosed. According to court testimony...

🌅Afternoon Wire·May 13

Regulatory

Federal DAPL Protest Judgment to Be Vacated; State Gets $36M for Oil Recovery

A federal judge has indicated he will vacate a nearly $28 million judgment awarded to North Dakota for costs related to Dakota Access Pipeline protests, as the state and federal government near a settlement agreement. According to the North Dakota Monitor, U.S. District Court Judge Daniel Traynor signaled his intent during a hearing on Friday, May 8, 2026. Attorneys for both parties stated North Dakota is still expected to receive a payment from the federal government, though the final settlement amount has not been disclosed. The lawsuit, originally filed in 2019, argued 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. According to court testimony...

🌅Afternoon Wire·May 13

Global Markets

Global Supply Pressures from Iran, Russia Could Bolster Bakken Outlook

The global energy landscape has been fundamentally altered by the ongoing conflict in Iran, according to analysis from a major financial firm. This shift, alongside stalled production growth from Russia, creates a supportive backdrop for crude oil prices, a key factor for Bakken formation operators in North Dakota. J.P. Hanson, Managing Director and Global Head of the Oil & Gas Group at Houlihan Lokey, stated that the Iran conflict has fundamentally altered the global energy landscape, Rigzone reported Wednesday. While the exact market impact was not detailed, sustained geopolitical instability in major oil-producing regions typically introduces a risk premium to global crude prices and can tighten physical supply balances. In a separate development, Russia expects its oil production to remain flat throughout 2026, according to a Rigzone report. The country anticipates only modest growth in the subsequent two years as its energy infrastructure faces intense drone attacks from Ukraine. Russia...

🌅Afternoon Wire·May 13

Global Markets

AI Aids Fusion, Iran Controls Hormuz, Aramco Eyes Real Estate Deal

Researchers are employing artificial intelligence to tackle the energy sector's biggest challenges, including the massive spike in demand from AI data centers itself, according to OilPrice.com. This demand is driving investment into next-generation energy alternatives like nuclear fusion. Scientists at the Ames National Laboratory in Iowa are building an AI tool called DuctGPT to model materials for fusion reactors, slashing discovery time from months to hours. The tool aims to find materials that can withstand ultra-high temperatures while remaining manufacturable, a key hurdle for commercializing what could be virtually limitless clean energy. In the Middle East, Iran is moving closer to selectively controlling tanker flows through the Strait of Hormuz, OilPrice.com reported. Following U.S.-Israeli strikes beginning February 28, access to the critical chokepoint may not be as free as before. Iraq, OPEC's second-largest producer, has seen exports severely crippled and has negotiated case-by-case deals with Iran for safe passage. Two...

🌅Afternoon Wire·May 13

Operator News

BLM Rescinds Public Lands Rule; Eni, TotalEnergies Announce Projects

The U.S. Bureau of Land Management has fully rescinded a Biden-era rule governing public lands, a move that could impact energy development across the western United States, according to a report from Rigzone. Interior Secretary Doug Burgum stated the rule had "prevented energy and mineral production, timber management, grazing and recreation across the West." For Bakken operators, the rescission could potentially streamline permitting and development processes on federal lands within the region, though the specific on-the-ground implications for North Dakota remain to be seen. In other operator news, Italian energy company Eni reported the successful testing of its biodiesel on a cruise ship, Rigzone reported. The company said tests conducted with an MSC cruise ship showed its Hydrogenated Vegetable Oil biofuel can power maritime transport without requiring engine modifications. This development is part of a broader industry trend toward alternative fuels, which could influence long-term demand dynamics for traditional crude...

🌅Afternoon Wire·May 13

Pipeline & Infrastructure

Global Supply Disruption Lifts Oil Prices; BP Enters Uzbekistan

Oil prices climbed sharply on Tuesday amid renewed fears of prolonged supply disruptions in the Persian Gulf, according to a report from Rigzone. The price movement provides a supportive backdrop for Bakken crude, which typically tracks the West Texas Intermediate (WTI) benchmark. The Strait of Hormuz is a critical global oil transit chokepoint, and any sustained disruption can tighten global supplies and lift benchmark prices. Higher WTI prices directly benefit Bakken operators and royalty owners in North Dakota by improving the economics of production from the region's wells. In a separate international development, BP has entered into a production sharing contract for six exploration blocks in Uzbekistan, Rigzone reported Wednesday. The North Ustyurt project marks BP's first venture in the Central Asian country. While this move represents a strategic expansion for the international major, its immediate impact on the Bakken is limited. BP is not a primary operator in the...

🌅Afternoon Wire·May 13