Thursday, May 14, 2026

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Oil Prices

Oil Prices Dip Slightly as OPEC+ Meeting Looms

Oil prices edged lower in early trading on Thursday, with benchmark West Texas Intermediate (WTI) crude retreating from recent highs. According to live price data, WTI was trading at $100.64 per barrel, down $0.38 or 0.38% on the day. The international benchmark Brent crude followed suit, trading at $105.28, a decrease of $0.35. The price movement comes ahead of a key OPEC+ meeting scheduled for June 1. Market participants are widely expecting the producer group to extend its current output cuts into the second half of the year. This anticipation has created a holding pattern, limiting more significant price swings as traders await formal confirmation of the cartel's plans. For Bakken operators, the price at the wellhead is directly impacted by the regional differential. The Bakken differential, which represents the discount or premium for Bakken crude priced at Clearbrook, Minnesota, versus WTI at Cushing, Oklahoma, was recorded at -$3.42. This...

☀️Morning Wire·May 14

Rig Report

North Dakota Rig Count Steady at 26 Amid Sustained Growth Trend

North Dakota's active drilling rig count remained unchanged for the seventh consecutive day, holding at 26 rigs on Thursday, May 14, 2026. According to Bakken Wire's daily rig activity report, there were no new rigs added, no rigs removed, and no rigs that moved location since the previous report. While the daily figure shows stability, the weekly and monthly trends reveal sustained growth in drilling activity within the Williston Basin. The current count of 26 rigs represents an increase of three rigs compared to one week ago, when the state reported 23 active rigs on May 7. The growth over the past month is more pronounced, with six additional rigs operating compared to the 20 rigs recorded on April 14. The steady but elevated rig count suggests operators are maintaining a consistent capital allocation to drilling programs in the Bakken formation, North Dakota's primary oil-producing region. A rig count in...

☀️Morning Wire·May 14

Daily Activity

XTO, Burlington Secure New Permits as Devon, Hess Wells Exit Confidential Status

The North Dakota Department of Mineral Resources (DMR) approved three new drilling permits in its latest daily activity report, all designated for confidential fields in the core of the Bakken. The agency also released location details for four previously confidential wells. XTO Energy Inc. was the most active operator, securing two permits for Dunn County. Both permits, 42936 and 42937, are for the Ghostrider Federal 34X-6G and Ghostrider Federal 34X-6C wells, respectively. They are located in SW SE 6-148N-96W. Burlington Resources Oil & Gas Company LP received one permit, 42935, for the HBU Sandstone 1N MBH well in SE SE 15-148N-98W, McKenzie County. In a separate administrative action, the DMR released four wells from confidential status, revealing their operators and specific locations. According to the report, Devon Energy Williston, L.L.C. had two wells released: the Owan Trust North 29-28-27F 3H in NW NW 29-154N-103W, Williams County (41910), and the Wagenman...

☀️Morning Wire·May 14

Operator News

Chevron Divests Asia-Pacific Assets to Eneos in $2.2B Deal

Chevron has agreed to sell a package of its refining and retail assets in the Asia-Pacific region to Japanese refiner Eneos for approximately $2.17 billion, according to a report from Rigzone. The deal was announced on Thursday, May 14, 2026. While the transaction involves downstream assets outside North America, such strategic divestitures by a major integrated operator like Chevron can influence its capital allocation and focus across its entire portfolio. Chevron is a significant operator in the Bakken formation, holding substantial acreage and production in North Dakota's Williston Basin. Asset sales provide majors with capital to reinvest in core operations or to fund other strategic priorities. For Bakken observers, a key question is whether such divestments signal a renewed focus on Chevron's upstream assets in regions like the Bakken, or if they represent a broader portfolio optimization with no direct near-term impact on its North Dakota operations. The company has...

☀️Morning Wire·May 14

Pipeline & Infrastructure

DAPL Protest Cost Settlement Nears as Expansion Concepts Emerge

A federal judge has signaled he will vacate a nearly $28 million judgment against the federal government related to Dakota Access Pipeline protest costs, clearing the way for a settlement to be finalized. 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 the state and federal government stated during the hearing that North Dakota is still expected to receive a payment, though the final settlement amount has not been disclosed. According...

☀️Morning Wire·May 14

Regulatory

Federal Judge to Vacate $28M DAPL Protest Judgment

A federal judge has signaled he will vacate a $28 million judgment against the federal government related to Dakota Access Pipeline protest costs, as North Dakota and the U.S. government move to finalize a settlement. According to Bing News, U.S. District Judge Daniel Traynor indicated his intent during a hearing on Friday, May 8, 2026. The judgment stems from a 2019 lawsuit filed by North Dakota. The state 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, led to millions in state expenditures for law enforcement and cleanup. Judge Traynor ruled in favor of North Dakota in April 2025, ordering a $28 million payment. Attorneys for both parties stated during the hearing that North Dakota is still expected to receive a payment from the federal government as part of the settlement, though the...

☀️Morning Wire·May 14

Global Markets

India Seeks Russian Oil Waiver Extension Amid Record Imports

India has asked the United States to extend a waiver on sales of Russian crude oil already loaded on tankers beyond its current expiry date of May 16, according to Bloomberg sources cited by OilPrice.com. This push from the world's third-largest crude importer comes as its intake of Russian oil hit a record high of 2.3 million barrels per day (bpd) in the first two weeks of May. The U.S. Treasury Department has already extended these waivers twice since mid-March, with the latest extension in late April granting an additional two weeks. The waivers have triggered a race for Russian oil cargoes at sea, with some tankers diverting from China to supply Indian buyers. India's imports from Russia nearly doubled from February to March, reaching 2.25 million bpd, while its imports from the Middle East plunged by 61% to 1.18 million bpd over the same period. The record flows suggest...

☀️Morning Wire·May 14

Global Markets

Global Shipping Maneuvers Around Hormuz Blockade as War Hits Hedging

Iran is exploiting jurisdictional gaps near Malaysia to continue ship-to-ship (STS) transfers of oil bound for China, according to the Malaysian Maritime Enforcement Agency. Despite a U.S. blockade outside the Strait of Hormuz aimed at stopping Iranian exports, Iran's "dark fleet" has significantly increased covert shipping operations. An analysis of satellite imagery by the advocacy group United Against Nuclear Iran (UANI) found as many as 42 STS transfers of Iranian oil took place in an anchorage off Malaysia's coast between February 28 and May 12, a location described as a "ghost fleet hotspot." Malaysian authorities say they can do little to stop the activity. "The selection of such locations is intended to exploit jurisdictional gaps and limit direct enforcement action by local authorities," Mohamad Rosli, Director-General of the Malaysian Maritime Enforcement Agency, told The Associated Press, according to OilPrice.com. Meanwhile, commercial shipping is increasingly turning off transponders to navigate the...

☀️Morning Wire·May 14

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Dip as OPEC+ Quota Plan, China Demand Concerns Weigh

Global oil benchmarks edged lower on Thursday, pressured by expectations of rising OPEC+ supply and signs of weakening demand in China, a key consumer. West Texas Intermediate (WTI) crude for June delivery traded at $100.67 per barrel, down 35 cents or 0.35%, according to midday data. The international benchmark Brent crude fell 99 cents to $104.64 per barrel, a drop of 0.94%. North Dakota's Bakken crude differential held at a discount of $3.42 per barrel versus WTI. Delegates from key OPEC+ member countries indicated the producer group aims to continue a series of planned oil output quota increases over the coming months, according to a report from Rigzone. This planned supply growth from the world's leading oil cartel is applying downward pressure on prices. Simultaneously, new forecasts point to a significant slowdown in Chinese oil demand. China's gasoline consumption could plunge by 5.5% in 2026 compared to 2025, according to...

🔆Midday Wire·May 14

Operator News

Eneos Acquires Chevron's APAC Refining, Retail Assets for $2.17B

Japanese refining giant Eneos has agreed to purchase some of Chevron's refining and retail assets across the Asia-Pacific region for $2.17 billion, according to a report from Rigzone. The deal was announced on Thursday, May 14, 2026. While the transaction involves downstream assets far from the Williston Basin, it underscores a continued trend of major international oil companies streamlining their global portfolios. For Bakken operators, such moves by integrated majors like Chevron often signal a strategic focus on core upstream production assets, which can include prolific shale basins like the Bakken. Chevron maintains a significant operated position in North Dakota's Bakken formation. The company's decision to divest certain international downstream holdings is consistent with a broader industry pattern of capital discipline and focusing investments on the most profitable core areas. This can be viewed as a positive indicator for the stability and prioritization of Chevron's ongoing Bakken operations. The deal...

🔆Midday Wire·May 14

Pipeline & Infrastructure

Reports Outline Plan to Revive Keystone XL, Extend Dakota Access

A new strategy using a patchwork of connected pipeline projects could resurrect the Keystone XL pipeline and extend the Dakota Access Pipeline (DAPL) north into Canada, according to a report from Bing News. The plan, described as creating "Frankenpipelines," would utilize existing pipe infrastructure to achieve the goals of the previously blocked projects. For Bakken operators, increased pipeline access to Canadian markets and export terminals has long been a strategic priority. The Dakota Access Pipeline currently runs from North Dakota's Bakken formation to a hub in Patoka, Illinois. An extension northward could provide new routing options and market access. The revived Keystone XL pathway would offer another major conduit for crude from Western Canada, which could compete for capacity with Bakken barrels on other systems. The reported approach suggests a shift from attempting to build single, large-scale greenfield pipelines, which face significant regulatory and legal hurdles, toward linking and expanding...

🔆Midday Wire·May 14

Regulatory

New Bill Targets Oil Windfall Profits for Consumer Relief

A new bill introduced in Congress seeks to impose a windfall profits tax on U.S. oil companies, according to Rigzone. The proposed Iran War Oil Crisis Windfall Profits Tax Act would collect revenue to be released back to households to offset increases in their energy and transport costs. The legislation, reported on May 14, 2026, directly targets profits deemed excessive during the current geopolitical climate. For Bakken operators in North Dakota, this represents a potential new fiscal risk on top of existing state taxes and royalties. The Williston Basin is a primary contributor to U.S. oil production, making its operators a likely focus of any such federal tax. Windfall profit taxes historically create uncertainty for capital investment in oil-producing regions. Bakken operators, who must plan long-term drilling programs and infrastructure projects, could face reduced cash flow for reinvestment if the bill passes. This could impact future rig activity and production...

🔆Midday Wire·May 14

Global Markets

Global Gas Divergence, Iran Power Shift, U.S. Oil Draw Impact Markets

A severe natural gas glut in the Permian Basin is forcing producers to pay buyers to take their product, creating a stark contrast with war-driven shortages in Europe and Asia, according to an OilPrice.com report. On April 24, Permian gas prices hit a record low of -$9.60 per million British thermal units as pipeline capacity failed to keep pace with soaring supply. Since the Middle East conflict began, U.S. natural gas futures have fallen 10%, while European prices are up about 40% and Asian prices have jumped more than 50%. The price collapse is impacting major producers. Diamondback Energy executives stated they are "consciously moving away" from the Permian's Waha pricing hub to seek higher prices elsewhere, and EQT Corp has curtailed output. For the U.S. economy and Bakken operators watching broader energy trends, the glut provides an insulating effect from global shocks and a potential manufacturing advantage due to...

🔆Midday Wire·May 14

Operator News

J.P. Morgan Warns of $151 Brent, Hedging Losses Reported

J.P. Morgan warned that Brent crude could average as much as $151 per barrel in the fourth quarter of 2026 if the Strait of Hormuz reopens on September 1, according to a report by Rigzone. Such a price spike, driven by a potential rapid return of Middle East supply, would create a volatile and high-priced environment for global oil markets. For Bakken operators, sustained high prices would boost cash flows and could support increased drilling activity in North Dakota's premier oil formation. However, the forecast hinges on geopolitical events, underscoring the market uncertainty producers must navigate. In a related development highlighting the risks of price volatility, the Canadian company Meren reported deepening financial losses for the first quarter, Rigzone reported. The firm, which produces in Nigeria, booked a hedging charge of $37.2 million due to the elevated oil price environment induced by the ongoing Middle East war. This demonstrates how...

🔆Midday Wire·May 14

Pipeline & Infrastructure

Global Midstream Focus Shifts to Mediterranean, Africa

Major international energy developments reported this week highlight the continued global competition for gas market share, a relevant backdrop for Bakken operators considering long-term export strategies for the region's associated gas production. In the Mediterranean, TotalEnergies has signed a memorandum of understanding with Egypt's state-owned EGAS to explore a "large area" off the north-western coast of Egypt, according to Rigzone. This expansion of Mediterranean exploration underscores the ongoing strategic importance of gas supply corridors to Europe, potentially influencing global LNG pricing benchmarks that affect U.S. exports. Meanwhile, on the African Atlantic coast, Senegal is advancing a major $7.5 billion gas project. The country's state-owned oil company stated the development of the Yakaar-Teranga gas discovery is targeted to help end domestic energy subsidies, Rigzone reported. Large-scale LNG projects like this increase global gas supply, shaping the competitive environment for other suppliers, including potential future Bakken gas-by-rail or pipeline exports to LNG...

🔆Midday Wire·May 14

Production Data

Bakken Rig Count Holds at 26 as Oil Prices Retreat from Morning Highs

The number of active drilling rigs in North Dakota held steady at 26 on Thursday, May 14, according to midday data from Bakken Wire. This count provides a key signal for near-term production trends in the Bakken formation, the state's primary oil-producing region. Historically, the rig count serves as a leading indicator for future oil output, with changes in drilling activity typically reflecting in production levels several months later. A stable rig count suggests operators are maintaining a consistent development pace without significant expansion or contraction. The current activity is set against a backdrop of strong but softening crude prices. As of midday Thursday, West Texas Intermediate (WTI) crude was trading at $100.67 per barrel, down $0.35 for the day. The international Brent benchmark was at $104.64, down $0.99. The local Bakken crude differential was $-3.42 against WTI. The sustained rig level, combined with oil prices remaining above the $100...

🔆Midday Wire·May 14

🌅Afternoon Wire4:00 PM CST

Oil Prices

Bakken Oil Prices Rise as WTI Hits $102 Amid Supply Tightness

Oil prices climbed Thursday, with West Texas Intermediate crude settling above $102 per barrel, providing a lift to Bakken producers. According to live price data, WTI closed at $102.03, a gain of $1.01 or 1%. The global benchmark Brent crude rose $0.94 to $106.57. The price for Bakken crude at Clearbrook, Minnesota, held a differential of -$3.42 versus WTI. The gains were supported by a significant drawdown in U.S. commercial crude inventories. Rigzone reported that, according to the latest U.S. Energy Information Administration weekly petroleum status report, crude oil stocks—excluding the Strategic Petroleum Reserve—fell by more than 4 million barrels week-over-week to 452.9 million barrels as of May 8. This tightening physical supply backdrop coincides with ongoing management of global output by the OPEC+ alliance. Rigzone reported that delegates from key OPEC+ members stated the group aims to continue a series of planned oil production quota increases over the coming...

🌅Afternoon Wire·May 14

Rig Report

North Dakota Rig Count Holds at 24 as Activity Shifts

The number of active drilling rigs in North Dakota's oil fields held steady at 24 on Thursday, according to live data from Bakken Wire. The count reflects a net change of zero from the previous day, masking a series of individual rig movements across the Williston Basin. One new rig commenced operations, while one was released and another was moved to a new location. Oasis Petroleum North America LLC spudded a new well using the NOBLE 4 rig in Mountrail County at location 157-93-13. This addition was offset by the departure of Formentera Operations, LLC's NABORS B23 rig from Divide County location 162-95-23. In a separate move, Hess Bakken Investments II, LLC relocated its ENSIGN 532 drilling rig to a new site in Williams County at 156-97-3. Rig moves are a routine part of field development as operators complete wells at one pad and mobilize equipment to the next planned...

🌅Afternoon Wire·May 14

Operator News

Chevron Sells $2.2B in Asia-Pacific Assets to Japan's Eneos

Chevron Corporation has agreed to sell a package of its refining and retail assets in the Asia-Pacific region to Japanese refiner Eneos for $2.17 billion, according to a report from Rigzone. The deal, announced on May 14, 2026, involves assets across the APAC region. For Bakken operators and watchers, such large-scale divestitures by a major like Chevron highlight an ongoing industry trend of portfolio optimization and capital discipline. While the specific assets are not in the Williston Basin, these strategic moves often reflect a company's broader financial strategy to streamline operations and focus capital on core, high-return assets. In the context of North Dakota, Chevron is a significant player through its acquisition of Noble Energy in 2020, which included Bakken shale assets. The company's consistent strategy has been to manage its global portfolio to strengthen its balance sheet and direct spending to its most profitable ventures, which include prolific shale...

🌅Afternoon Wire·May 14

Pipeline & Infrastructure

Canada May Keep Trans Mountain, Trump Eyes DAPL Expansion

The Canadian government is reconsidering plans to privatize the Trans Mountain oil pipeline, a shift that could solidify a major new export route for North American crude with implications for Bakken producers. According to OilPrice.com, the head of the government entity that owns the pipeline, Elizabeth Wademan, said this week that the prior narrative of returning the asset to private hands was from "a different market and a different time." The expanded Trans Mountain Pipeline (TMX) launched in May 2024 at triple its original capacity, moving 890,000 barrels daily. Its primary destination is the vast Asian market, marking a strategic pivot for Canadian crude away from near-total reliance on the United States. OilPrice.com reported that by October 2025, as much as 70% of Canadian crude exported from the British Columbia coast was going to China, with average flows to China reaching 207,000 barrels daily between the pipeline's launch and spring...

🌅Afternoon Wire·May 14

Regulatory

Federal Windfall Tax Bill Targets Oil Profits Amid Iran Conflict

A new federal bill introduced on Thursday seeks to impose a tax on windfall oil profits earned by U.S. producers during the ongoing conflict involving Iran, according to a report from Rigzone. The proposed Iran War Oil Crisis Windfall Profits Tax Act would collect revenue to be released back to American households to help offset rising energy and transport costs. The direct financial impact on Bakken shale operators could be significant if the legislation passes. North Dakota's oil industry, which has historically been sensitive to federal tax policy changes, would face a new levy on profits deemed excessive during a period of geopolitical-driven price volatility. This could reduce capital available for drilling, completions, and well maintenance in the Williston Basin. For Bakken-focused producers and royalty owners, the bill introduces a layer of regulatory and fiscal uncertainty. The proposal frames industry profits during the crisis as a "windfall" to be redistributed,...

🌅Afternoon Wire·May 14

Global Markets

Global Nuclear Expansion, Supply Strains Signal Long-Term Headwinds for Bakken Oil

China is rapidly expanding its nuclear energy capacity, adding 34 gigawatts over the past decade compared to just one new plant in the United States, according to a report from OilPrice.com. The country is on track to overtake the U.S. and France as the world's top nuclear producer within ten years. Beijing's 15th Five-Year Plan prioritizes advanced reactor development and expanding its nuclear footprint in emerging markets via the Belt and Road Initiative. This large-scale shift toward nuclear power, particularly in the world's largest energy growth market, represents a long-term strategic challenge for global oil demand. For Bakken operators, sustained demand growth in Asia has been a key pillar supporting crude prices. A state-backed Chinese pivot to nuclear and other non-fossil sources could gradually erode that demand trajectory over the coming decades. Concurrently, strains in the global nuclear fuel supply chain are emerging. According to a separate OilPrice.com report, financial...

🌅Afternoon Wire·May 14

Global Markets

Hormuz Thaw Could Spike Brent to $151, JPMorgan Warns

Chinese tankers have resumed transit through the critical Strait of Hormuz under the coordination of Iran's Islamic Revolutionary Guard Corps (IRGC), according to Iranian state media. OilPrice.com reported that around 30 Chinese vessels have been granted safe passage, marking a significant development in the long-standing blockade of the key oil chokepoint. The move follows a diplomatic agreement between U.S. President Donald Trump and Chinese President Xi Jinping during Trump's state visit to China. Both leaders agreed that the Strait of Hormuz must remain open for the free flow of energy and that no country should be allowed to exact shipping tolls there, OilPrice.com reported. The resumption began with a key milestone on Wednesday, May 13, when a Chinese supertanker carrying 2 million barrels of Iraqi crude successfully passed through the strait after being stranded for over two months. According to OilPrice.com, the Cosco Shipping tanker, the Yuan Hua Hu, transited...

🌅Afternoon Wire·May 14

Operator News

Global Energy Moves Highlight Diverging Strategies Amid Bakken Stability

The UK government announced plans to introduce an Energy Independence Bill, framing the goal as a matter of national security, according to a speech by King Charles reported by Rigzone. The development, outlined in the 2026 King's Speech, signals a continued political focus on securing domestic energy supplies in key markets, a theme that resonates with the long-standing strategic importance of the Bakken formation to U.S. energy security. Meanwhile, international energy majors are advancing projects outside North America. TotalEnergies has signed a memorandum of understanding with Egypt's state-owned EGAS to explore a large offshore area in the Mediterranean, Rigzone reported. In a separate move, Spanish utility Iberdrola acquired another renewable energy plant in Italy, bringing its installed renewable capacity in the country to approximately 450 megawatts as part of a strategy to expand in stable regulatory markets. For Bakken operators, these global developments underscore a market environment where capital allocation...

🌅Afternoon Wire·May 14