Saturday, May 16, 2026

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Oil Prices

WTI Surges Past $101 as Supply Fears Drive Weekly Rally

U.S. oil prices surged over 4% on Friday, with West Texas Intermediate crude topping $101 per barrel, as ongoing supply disruptions in the Middle East continued to tighten the global market. WTI settled at $101.02, a gain of $4.10, while the international benchmark Brent crude rose $3.54 to $109.26, according to live price data. The price for Bakken crude at the Clearbrook hub held at a discount of $3.42 per barrel versus WTI. The weekly rally, which saw WTI gain approximately $10, is primarily driven by the continued closure of the Strait of Hormuz, a critical chokepoint for global oil shipments. This geopolitical tension has overshadowed other market factors, leading to a sharp drawdown in U.S. strategic stocks. According to a report from OilPrice.com, inventories in the Strategic Petroleum Reserve have fallen roughly 30 million barrels since late March, dropping below 385 million barrels. In response to the drawdown, the...

☀️Morning Wire·May 16

Rig Report

North Dakota Rig Count Holds at 22 for Third Consecutive Week

The number of active drilling rigs in North Dakota remained at 22 on Saturday, May 16, 2026, according to Bakken Wire live data. No rigs were added, removed, or moved location since the prior day. This marks the third consecutive week where the state's rig count has hovered at this level. The count is down by one rig compared to one week ago, on May 9, when 23 rigs were active. It is unchanged from the 22 rigs active one month ago, on April 16. The steady activity in the Bakken contrasts with a broader uptick in U.S. drilling this week. According to data from Baker Hughes published on Friday, May 15, the total number of active oil and gas rigs in the United States rose. The national oil rig count increased by 5 to 415, while the total rig count reached 551, OilPrice.com reported. Leading the national increase was...

☀️Morning Wire·May 16

Daily Activity

Four New Permits Approved, SOGC Cancels 13 in DMR Report

Four new drilling permits were approved by the North Dakota Department of Mineral Resources (DMR) in filings from Friday, May 15, 2026, according to the daily activity report. Oasis Petroleum North America LLC was the most active operator, securing three of the four new permits. All three Oasis permits are for the Isabella 6093 pad in Burke County. Two wells, the Isabella 6093 43-36 2BX and 3B, are in the Gros Ventre field in Section 36-160N-93W. The third, the Isabella 6093 43-36 4BX, is in the adjacent Cottonwood field in the same section. The fourth permit was issued to Devon Energy Williston: L.L.C for the Lindvig North 14-15-16-17F 5H well in McKenzie County's CAMP field. The report also detailed significant permit cancellations. SOGC, Inc. canceled 13 previously approved permits for a project in McKenzie County. The cancellations are all located in SE SE 3-147N-98W and include the Yauch 03-04-2H through...

☀️Morning Wire·May 16

Pipeline & Infrastructure

Canada's West Coast Pipeline Deal Could Create New Outlet for Bakken

The Canadian federal government and the province of Alberta have reached a carbon pricing agreement that clears a major hurdle for building a new West Coast oil pipeline, with construction potentially starting as early as September 2027, according to a report from OilPrice.com. For Bakken operators in North Dakota, the development of a new pipeline corridor to the Pacific coast could eventually provide a crucial additional outlet for crude, diversifying export markets beyond current U.S. Gulf Coast and Midwest routes. Prime Minister Mark Carney and Alberta Premier Danielle Smith announced the agreement on Friday, May 15, 2026, building on a memorandum from November. The proposed pipeline would be capable of moving roughly 1 million barrels per day to the Pacific coast, targeting Asian markets. The deal attempts to resolve Canada's long-standing policy conflict between expanding oil infrastructure and meeting climate goals, OilPrice.com reported. Under the agreement, Alberta's industrial carbon pricing...

☀️Morning Wire·May 16

Regulatory

Scottish Greens Renew Push for UK Windfall Profit Tax Expansion

The Scottish Green Party has renewed its call for the UK government to expand its tax on windfall oil and gas profits, according to a report from Rigzone. The party advocates using the increased tax revenue to help households pay energy bills. While the proposal is specific to the UK and North Sea operators, it underscores a persistent theme of political pressure on hydrocarbon producers during periods of high commodity prices. Regulatory and fiscal shifts in major producing regions can influence global investment sentiment and corporate strategy. For Bakken operators, the news serves as a reminder of the potential for increased fiscal scrutiny, even indirectly. Although North Dakota's tax regime is set at the state level, sustained political campaigns targeting "windfall" profits in other jurisdictions contribute to an environment of regulatory uncertainty. This can factor into long-term capital allocation decisions by international companies with global portfolios. The core industry context...

☀️Morning Wire·May 16

Global Markets

Global Energy Shifts, Price Surge Set Stage for Bakken

Global energy investment trends and rising crude prices present a mixed but critical outlook for Bakken operators, according to recent industry analyses. Oil prices surged as traders focused on tightening crude supplies and fragile Middle East ceasefire conditions, Rigzone reported on May 15. This immediate price support arrives amid longer-term structural shifts in the world's energy landscape that could influence future demand for Bakken crude. China's massive financial commitment to clean energy is a dominant global theme. According to an analysis from Atlas Public Policy cited by OilPrice.com, Chinese companies invested more than $500 billion in clean energy between 2019 and 2025, outspending the rest of the world combined. A significant portion, about $136 billion, funded clean tech factories in other countries, a strategy to enter new markets and dodge trade barriers, OilPrice.com reported. This consolidation of supply chains allows China to produce technologies like lithium-ion batteries and solar panels...

☀️Morning Wire·May 16

Global Markets

Global Roundup: Strait of Hormuz Developments, Major Gas Deal

Global energy security and project development headlines from Friday highlight strategic shifts with implications for global crude and LNG markets, factors watched closely by Bakken producers. The United Arab Emirates will double its capacity to export crude oil bypassing the Strait of Hormuz by next year, according to Rigzone. This move aims to mitigate risks associated with the critical maritime chokepoint, through which a significant portion of the world's seaborne oil trade flows. For Bakken operators, any sustained disruption in the Strait can increase volatility in global benchmark prices, directly affecting the economics of North Dakota's light sweet crude. Separately, former U.S. President Donald Trump said he stopped short of asking Chinese leader Xi Jinping to pressure Iran regarding traffic through the passage but predicted Xi would do so, Rigzone reported. Tensions in the region remain a persistent backdrop for global oil markets. In major project news, Japan's INPEX Corporation...

☀️Morning Wire·May 16

Operator News

Texas Upstream Jobs Grow as Analysts Weigh Oil Price Stability

Upstream oil and gas employment in Texas rose in March, according to an industry report, signaling continued strength in the sector. Texas Independent Producers & Royalty Owners Association (TIPRO) President Ed Longanecker said the increase "demonstrates the strength and resilience of our industry," according to Rigzone. The positive jobs data comes as analysts are examining why global oil prices have not surged higher following recent geopolitical tensions. Rigzone reported speaking with analysts from Standard Chartered, Wood Mackenzie, and the American Enterprise Institute about the market's response to conflict between the USA and Iran. For Bakken operators, stable employment trends in major producing states like Texas can reflect broader industry health, influencing service costs and labor availability. However, the apparent resilience of global oil supply, as indicated by the muted price reaction to conflict, presents a headwind for significant price increases that would accelerate drilling activity in North Dakota. In other...

☀️Morning Wire·May 16

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Surge Over $101 Amid SPR Refill Plan, Bakken Differential Widens

Oil prices posted strong gains in midday trading Saturday, with West Texas Intermediate crude surpassing $101 per barrel. According to live price data, WTI settled at $101.02, a gain of $4.10 or 4.23 percent. Brent crude reached $109.26, up $3.54. The price for Bakken crude, a key benchmark for North Dakota producers, traded at a differential of -$3.42 versus WTI. The price rally follows a pledge from the Trump administration to aggressively refill the Strategic Petroleum Reserve. According to a report from OilPrice.com, Energy Secretary Chris Wright stated on Friday that the plan is to add 1.2 barrels to the SPR for every barrel withdrawn during the current emergency drawdown period. The Secretary said the goal is to leave the reserve "fuller than when we started." The SPR inventory has fallen sharply in recent weeks due to Middle East supply disruptions, according to the source. After climbing to over 415...

🔆Midday Wire·May 16

Pipeline & Infrastructure

Canada Sets 2027 Timeline for West Coast Oil Pipeline, Eyes Asian Markets

The Canadian government has reached a deal that could see construction start on a major new West Coast oil pipeline as early as September 2027, a move that could eventually provide a new export route for crude from the Bakken region. According to a report from OilPrice.com, Prime Minister Mark Carney and Alberta Premier Danielle Smith announced the agreement on Friday, May 15, 2026, building on a November memorandum. The proposed pipeline would have the capacity to move roughly 1 million barrels per day to the Pacific coast, with the ultimate target of Asian markets. For North Dakota producers, a new outlet to tidewater could provide long-term optionality for Bakken crude, which currently relies heavily on U.S. Gulf Coast and Midwest markets. The agreement attempts to solve Canada's long-standing policy conflict of expanding oil infrastructure while attaching climate conditions. Under the deal, Alberta's industrial carbon pricing framework will gradually increase,...

🔆Midday Wire·May 16

Regulatory

Scottish Greens Renew Push for Windfall Tax on Oil Profits

The Scottish Green Party has renewed its call for the UK government to expand taxation on windfall profits from oil and gas companies, according to a report from Rigzone. The party advocates using the revenue to help households pay energy bills. While this political push is focused on the United Kingdom, it underscores a persistent global trend of governments targeting energy producers during periods of high commodity prices. Regulatory and tax environments in one major producing region can influence investor sentiment and political discourse worldwide. For Bakken operators in North Dakota, this development serves as a reminder of the potential for increased fiscal scrutiny. The US does not have a federal windfall profits tax, but state-level tax discussions and federal policy proposals can emerge during periods of sustained high oil prices. The core industry argument against such taxes, often echoed by trade groups representing Bakken producers, is that they discourage...

🔆Midday Wire·May 16

Global Markets

Global Energy Disruption Fuels Fertilizer Shock, Food Crisis Fears

The ongoing global energy crisis, triggered by the United States-Israeli attack on Iran and the subsequent blockade of the Strait of Hormuz, is creating severe fertilizer shortages that threaten a global food crisis, according to a report from OilPrice.com. The International Energy Agency (IEA) has called this the worst oil disruption in history, with the Strait—normally transporting 20% of the world's oil—seeing only a fraction of its usual traffic for the last two months. This has led to widespread fuel rationing and is severely restricting the transport of fuels needed to produce fertilizer and the fertilizer itself. For North Dakota, a major agricultural producer, the timing is critical as it coincides with the prime planting season in the northern hemisphere. The deputy executive director of the World Food Programme, Carl Skau, stated that the shortage means "lower yields and crop failures next season" or, at best, higher food prices. Two...

🔆Midday Wire·May 16

Global Markets

Global Events Drive Oil Price Surge, Impacting Bakken Outlook

Oil prices surged on Friday as traders focused on tightening global supplies and fragile conditions in the Middle East, according to Rigzone. The price movement provides a stronger revenue backdrop for Bakken producers, though the region's output is also influenced by domestic pipeline and takeaway capacity. In Mexico, President-elect Claudia Sheinbaum has tapped the current Chief Financial Officer to run state-owned oil giant Petroleos Mexicanos (Pemex), Rigzone reported. CEO Víctor Rodríguez Padilla is stepping down. The leadership transition at a major Western Hemisphere producer is being watched by global markets for any potential shifts in production or trade policy that could affect North American crude dynamics. Geopolitical risk also remains a key market driver. Former U.S. President Donald Trump stated he did not ask Chinese leader Xi Jinping to pressure Iran regarding traffic through the strategic Strait of Hormuz, a critical global oil chokepoint, Rigzone reported. However, Trump predicted Xi...

🔆Midday Wire·May 16

Operator News

Global Energy Moves Highlight Export, Employment Trends

The United Arab Emirates plans to double its capacity to export crude oil bypassing the Strait of Hormuz by 2027, according to Rigzone. This strategic expansion aims to mitigate risks associated with one of the world's most critical oil transit choke points. For Bakken operators, global efforts to secure export routes underscore the importance of market access and geopolitical stability for international oil prices, which directly influence North Dakota's production economics. Separately, Japanese firm INPEX has agreed to acquire PetroChina's stake in the Australian Browse gas project, Rigzone reported. The project, which has not yet reached the Front-End Engineering and Design (FEED) stage, involves delivering gas from the Browse Basin to the existing Karratha Gas Plant. Major international asset transactions like this highlight the ongoing global consolidation and investment in long-term energy projects, a context in which Bakken players also operate. On the domestic front, Texas upstream employment rose in...

🔆Midday Wire·May 16

Pipeline & Infrastructure

Analysts Point to Spare Capacity, Demand Concerns as Oil Prices Stagnate

Despite ongoing conflict between the United States and Iran, global oil prices have failed to sustain a significant rally, according to analysts cited by Rigzone. Experts from Standard Chartered, Wood Mackenzie, and the American Enterprise Institute pointed to several factors preventing a price surge. A key reason cited is the substantial amount of spare production capacity held by major producers, which provides a buffer against supply disruptions. Furthermore, concerns about global oil demand growth and the availability of strategic petroleum reserves in consuming nations are also applying downward pressure on the market, Rigzone reported. For Bakken producers, this analysis underscores the continued importance of global market fundamentals over geopolitical events in setting the price for Williston Basin crude. A capped global price environment directly impacts the wellhead economics for North Dakota's shale operators and royalty owners. In other energy infrastructure news, Perenco has restarted gas production at the Davy field...

🔆Midday Wire·May 16

Production Data

Bakken Rig Count Holds at 22 as Oil Prices Surge Past $100

North Dakota's active drilling rig count held steady at 22 on Saturday, a level indicative of a mature, capital-disciplined phase for the Bakken formation. The count comes as crude oil prices posted significant gains, with WTI surging past the $101 per barrel mark. West Texas Intermediate crude settled at $101.02, a daily increase of $4.10 or 4.23%, according to midday data. The international benchmark Brent crude rose to $109.26, up $3.54. The Bakken crude price differential to WTI remained narrow at -$3.42, providing Bakken producers with a strong realized price. Natural gas was priced at $2.96 per MMBtu. The current rig count of 22 is far below the boom-era peaks of over 200 but reflects a stabilized baseline of activity focused on high-graded, core acreage. Historically, the rig count is a leading indicator for future oil production, with a typical six-to-nine-month lag between drilling activity and new volumes reaching sales...

🔆Midday Wire·May 16

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Rally Above $101 Amid Supply Concerns

Oil prices posted significant gains in trading Saturday, with West Texas Intermediate (WTI) crude closing above $101 per barrel. According to live price data, WTI settled at $101.02, a gain of $4.10 or 4.23%. Brent crude, the international benchmark, rose to $109.26, up $3.54 or 3.35%. Natural gas prices also edged higher, finishing at $2.96. The rally in crude prices reflects ongoing concerns about global supply tightness and strong demand fundamentals. The Bakken differential, which represents the price discount for crude produced in North Dakota's premier formation compared to WTI, stood at -$3.42. This means Bakken crude is priced approximately $3.42 per barrel below the WTI benchmark. This price environment presents a mixed picture for operators in the Williston Basin. The strong headline WTI price supports revenue and cash flow for producers. However, the persistent negative differential for Bakken crude erodes some of that benefit, as local barrels sell at...

🌅Afternoon Wire·May 16

Rig Report

Bakken Rig Count Unchanged at 22; US Total Gains

North Dakota's active drilling rig count held steady at 22 for Saturday, May 16, according to Bakken Wire's live rig data. There were no new rig additions, removals, or location moves reported since yesterday. The current count is down one rig from the level of 23 active units recorded one week ago on May 9. Compared to one month ago on April 16, the count is unchanged. While activity in the Bakken formation remains flat, the broader U.S. drilling landscape showed modest growth this week. According to Baker Hughes data for the week ended May 15, 2026, published by Bing News, the total U.S. rig count increased by 3 units to reach 551 rigs running. The week's gains were driven by oil-directed rigs, which rose by 5 to 415. Gas-directed rigs fell by 1 to 128. On a year-over-year basis, the U.S. count is down 25 units from the 576...

🌅Afternoon Wire·May 16

Regulatory

Scottish Greens Push for UK Windfall Tax on Oil Profits

The Scottish Green Party has renewed its push for the United Kingdom government to expand taxation on windfall oil and gas profits, according to a report from Rigzone. The party advocates using the revenue to help households pay energy bills. While this political pressure is directed at the UK government and North Sea operators, it underscores a broader regulatory environment where high commodity prices can trigger calls for increased fiscal levies on producers. The concept of windfall profit taxes has been debated in multiple jurisdictions during periods of high oil and gas prices. For Bakken operators, developments in other major oil-producing regions are watched as indicators of potential regulatory sentiment. Although North Dakota's tax regime is set at the state level, sustained political focus on producer profits internationally can influence broader investment perceptions in the energy sector. The specific proposal from the Scottish Greens, as reported by Rigzone, does not...

🌅Afternoon Wire·May 16

Global Markets

Global Energy Shifts Present Mixed Signals for Bakken's Future

Global energy markets presented a dual narrative for Bakken operators this week, with long-term transition pressures emerging alongside immediate price support. Researchers in China announced a significant breakthrough in battery technology, while oil prices surged amid tightening supplies and geopolitical uncertainty. According to a report published in Advanced Energy Materials, Chinese researchers from the Institute of Metal Research under the Chinese Academy of Sciences have developed an alternative alkaline all-iron flow battery. The battery is capable of over 6,000 charge-discharge cycles without measurable capacity decay, equivalent to around 16 years of daily use, OilPrice.com reported. The technology uses low-cost, abundant iron—a material roughly 80 times cheaper than raw lithium—and a water-based electrolyte that cannot explode. This advancement targets the core infrastructure supporting renewable energy, which is vital for storing intermittent power from wind and solar. Flow batteries, which work using liquid electrolytes held in external tanks, are highly scalable by...

🌅Afternoon Wire·May 16

Global Markets

Global Shale Race Heats Up as Argentina Auctions Vaca Muerta

Major international oil companies are accelerating a global shale land grab, with Argentina's Vaca Muerta formation at the center of a new licensing round, according to a report from OilPrice.com. The push is being fueled by Middle East instability and a blocked Strait of Hormuz, driving a race to develop resources in safer jurisdictions outside conflict zones. The Neuquén province is launching the biggest Vaca Muerta auction in a decade, offering 15 blocks for bids. Analysts expect high interest as U.S. shale giants expand globally, with the basin seen as a de-risked, proven geology far from Middle Eastern shipping chokepoints. The formation, often called the "Argentinian Permian," is estimated to hold 16 billion barrels of recoverable oil and 308 trillion cubic feet of natural gas, making it the world's second-largest shale gas deposit and fourth-largest shale oil resource. Production is already booming, with Vaca Muerta crude output now topping 800,000...

🌅Afternoon Wire·May 16

Operator News

Geopolitical Moves, Texas Jobs Impact Bakken Outlook

Geopolitical developments affecting a key global oil transit route and rising employment in a competing oil state could influence market conditions for Bakken operators. According to Rigzone, former President Donald Trump stated on May 15 that he did not ask Chinese leader Xi Jinping to pressure Iran regarding traffic through the Strait of Hormuz, though he predicted Xi would act. Separately, Rigzone reported that the United Arab Emirates plans to double its capacity to export crude oil bypassing the Strait of Hormuz by 2027. The Strait is a critical maritime channel for global oil shipments, and disruptions or tensions there typically increase volatility and can support higher crude oil prices. Increased capacity to bypass the chokepoint could contribute to longer-term market stability. For Bakken producers, global price stability supports development plans and investment. North Dakota's oil production is heavily influenced by the global crude price, which is sensitive to supply...

🌅Afternoon Wire·May 16

Pipeline & Infrastructure

Analysts Point to Ample Supply, SPR as Oil Prices Show Limited Reaction to Conflict

Despite heightened geopolitical tensions, analysts note that global crude oil prices have shown a surprisingly muted response to recent conflict between the USA and Iran. According to a report from Rigzone, experts from Standard Chartered, Wood Mackenzie, and the American Enterprise Institute point to substantial global inventories and the potential use of strategic petroleum reserves as key factors preventing a sharp price spike. For Bakken operators, sustained lower-than-expected price volatility can influence capital planning and drilling budgets. A stable, albeit potentially capped, price environment may support steady production but could limit the revenue upside needed to accelerate activity in North Dakota's core shale play. The analysis suggests the market is currently well-supplied, which can pressure the price differentials for Bakken crude at the wellhead. In other midstream and production news, Rigzone separately reported that Perenco has restarted gas production at the Davy field in the UK North Sea. The field...

🌅Afternoon Wire·May 16

Production Data

North Dakota Rig Count Holds at 22 as Oil Prices Surge Above $100

North Dakota's active drilling rig count held steady at 22 on Saturday, even as global crude benchmarks surged past the $100-per-barrel mark. The price of West Texas Intermediate (WTI) crude settled at $101.02, a gain of $4.10 or 4.23% for the day, according to live Bakken data. The international Brent benchmark also rose sharply to $109.26. The persistent low rig count, a key indicator of future production, suggests that near-term oil output from the Bakken formation is unlikely to see significant growth. For over a decade, the rig count has served as a leading indicator for production trends in the state, with a typical lag of several months between an increase in drilling activity and a resultant rise in output. The Bakken's discount to the primary benchmark widened slightly, with Bakken crude priced at a $3.42 per barrel discount to WTI. Natural gas prices were reported at $2.96 per MMBtu....

🌅Afternoon Wire·May 16