Monday, May 18, 2026

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Oil Prices

WTI Dips Near $100.75 Amid Chinese Demand Slump

Oil prices traded slightly lower Monday morning, with West Texas Intermediate (WTI) crude hovering near $100.75 per barrel. According to live price data, WTI was down $0.27 (-0.27%) for the day, while the global benchmark Brent Crude was at $109.11, down $0.15. The discount for Bakken crude versus WTI widened to $-3.42. The modest price retreat follows significant demand destruction from the world's largest crude importer. According to a report from OilPrice.com, Chinese refiners slashed their crude runs to the lowest level since August 2022. Official data published Monday showed crude throughput at Chinese refineries slumped by 5.8% in April from a year earlier, to about 13.3 million barrels per day (bpd). The average refinery utilization rate fell to 63.59%. China's crude oil imports plummeted by 20%, or 2.4 million barrels per day, in April from a year earlier, according to OilPrice.com. Imports were pegged at 9.25 million bpd, the...

☀️Morning Wire·May 18

Rig Report

Bakken Rig Count Stable at 22 Amid Flat Week

North Dakota's active drilling rig count remained at 22 on Monday, May 18, 2026, according to Bakken Wire's daily rig activity report. There was no day-over-day change, with no new rigs added, no rigs removed, and no rigs moving location. The current count reflects a stable, measured pace of drilling activity in the Bakken formation and Williston Basin. The rig count is unchanged from a month ago, which was also 22 active rigs on April 18. However, it represents a slight increase from one week ago, when the state had 21 active rigs on May 11. A rig count of 22 places North Dakota's drilling activity significantly below historical peaks seen during previous boom cycles but within a range that has become typical for the mature shale play in recent years. The stability over the past month suggests operators are maintaining consistent capital expenditure plans for development drilling, likely focused...

☀️Morning Wire·May 18

Daily Activity

North Dakota DMR Reports No New Activity Filings Sunday

The North Dakota Department of Mineral Resources (DMR) reported no new activity filings in its daily report for Sunday, May 17, 2026, according to the agency's data. The DMR's daily activity report typically lists new drilling permits approved, well completions reported, wells that have been spud (drilling commenced), and notices of plugged wells. The absence of new filings indicates a day without these formal regulatory actions being submitted. Days with no reported activity are normal in the Bakken formation, particularly on weekends and holidays when administrative and field operations slow. The report serves as a key daily snapshot for operators, service companies, and royalty owners tracking regulatory and development pace in the Williston Basin. The next report, covering activity for Monday, May 18, will be issued by the DMR tomorrow.

☀️Morning Wire·May 18

Global Markets

Global LNG, Coal Shifts Underline Bakken's Competitive Landscape

Russia has quietly added four liquefied natural gas (LNG) carriers to its "dark fleet" used to export sanctioned cargoes from the Arctic LNG 2 project, according to a Bloomberg analysis reported by OilPrice.com. The carriers Kosmos, Merkuriy, Orion, and Luch recently changed ownership and management to obscure companies, with the Kosmos now flying a Russian flag and docking at a floating storage unit for the sanctioned project. This expansion highlights Russia's continued ability to move sanctioned energy commodities, primarily to China, using a shadow fleet that now numbers about 20 vessels. The ongoing flow of Russian LNG to China, facilitated by specialized ice-class tankers like the Christophe De Margerie, maintains a supply of competing natural gas in a key global market. For Bakken operators, this underscores the persistent global competition for market share, even under sanctions, and the importance of cost-efficient production to compete with other global supply sources. Concurrently,...

☀️Morning Wire·May 18

Global Markets

Global Roundup: Anglo Exits Coal, EIA Widens Oil Deficit, Eni Invests in Canada

Anglo American has agreed to sell its Australian steelmaking coal assets for up to $3.875 billion, marking a major step in its portfolio restructuring, according to a report from OilPrice.com. The mining giant announced the sale to Dhilmar Limited on May 18, 2026, as part of a plan first outlined in May 2024 to divest non-core businesses and focus on copper, iron ore, and crop nutrients. The cash deal includes an upfront payment of $2.3 billion and a price-linked earnout of up to $1.575 billion. Anglo American CEO Duncan Wanblad stated the transaction completes the company's exit from steelmaking coal, delivering aggregate cash proceeds of up to $4.9 billion. The deal is subject to regulatory approvals, with completion expected by the first quarter of 2027. The move precedes Anglo American's planned merger of equals with Teck Resources, announced in September 2025, aimed at creating a critical minerals giant. Separately, the...

☀️Morning Wire·May 18

Operator News

Global Energy News Roundup: Hydrogen, Geopolitics, and Shell Payments

German energy utility Uniper has issued a call for capacity allocation at a planned import terminal for hydrogen-derived ammonia, according to Rigzone. The terminal is designed to receive up to 2.6 million metric tons per year of ammonia, which is enough to produce about 350,000 metric tons per annum of hydrogen. This development highlights the accelerating European investment in energy transition infrastructure, which could influence long-term global fuel demand trends relevant to Bakken producers. Separately, geopolitical tensions affecting global oil markets persist, with no deal in sight to end the ongoing conflict involving Iran, Rigzone reported. Iran's semi-official Fars news agency said the U.S. had set five main conditions for a peace deal, including transferring uranium tied to Iran's nuclear program to the U.S. Continued instability in the Middle East typically contributes to volatility in global crude oil prices, a key factor for the pricing of Bakken crude. In corporate...

☀️Morning Wire·May 18

Pipeline & Infrastructure

Global Supply Risks, Pemex Leadership Shift Drive Oil Market Focus

Oil prices surged late last week as traders focused on tightening crude supplies and fragile ceasefire conditions in the Middle East, according to Rigzone. The market remains sensitive to potential disruptions that could affect global flows. In a separate development, Petroleos Mexicanos Chief Executive Officer Víctor Rodríguez Padilla is stepping down, Rigzone reported. The state-owned Mexican oil giant, Pemex, is a significant producer and its leadership changes can influence international supply dynamics and market sentiment. Political developments also contributed to the market's focus on supply risks. Former President Trump stated he did not ask Chinese leader Xi Jinping to pressure Iran regarding traffic through the Strait of Hormuz, but predicted Xi would do so, according to Rigzone. The Strait is a critical maritime passage for global oil shipments, and any tension or restriction there directly impacts seaborne crude availability. For Bakken operators and royalty owners, these international events underscore the...

☀️Morning Wire·May 18

Regulatory

Global Projects Advance as Bakken Watches LNG, Export Routes

Major international energy developments reported last week could have indirect implications for the Bakken formation's position in global oil and gas markets, according to wire service reports. Japanese oil and gas company INPEX has agreed to acquire PetroChina's stake in the Browse gas project offshore Australia, Rigzone reported on May 15. The project, which has yet to reach the front-end engineering design (FEED) stage, involves delivering gas from the Browse Basin to the existing Karratha Gas Plant for processing into liquefied natural gas (LNG). Separately, the United Arab Emirates plans to double its capacity to export crude oil via routes that bypass the Strait of Hormuz by 2027, Rigzone reported in another May 15 dispatch. This strategic pipeline expansion aims to reduce reliance on the critical Middle Eastern shipping chokepoint. For Bakken operators and royalty owners, these developments underscore the interconnected nature of global energy supply. Growth in LNG export...

☀️Morning Wire·May 18

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Surge Past $103 on Geopolitical Tensions, Fed Uncertainty

Oil prices climbed sharply on Monday, with West Texas Intermediate (WTI) crude rising 1.97% to settle at $103.01 per barrel. The global benchmark, Brent crude, increased 1.67% to $111.08, according to midday price data. The price surge was primarily driven by renewed geopolitical tensions in the Middle East. According to a report from OilPrice.com, prices rose following a stark warning from U.S. President Donald Trump to Iran after reports of attacks on ships and infrastructure in the Middle East Gulf, fueling fears of renewed conflict in the region. For Bakken operators, the higher benchmark price is tempered by a regional discount. The Bakken differential was recorded at -$3.42 versus WTI, meaning Bakken crude is priced at approximately $99.59 per barrel at the wellhead. The price rally coincides with a significant shift in U.S. monetary policy leadership. OilPrice.com reported that former governor Kevin Warsh won Senate confirmation to replace Jerome Powell...

🔆Midday Wire·May 18

Global Markets

Global Energy Shifts Amplify Bakken's Strategic Role

Global energy markets are undergoing significant shifts that underscore the strategic importance of stable, non-Middle East suppliers like the Bakken formation, according to analysis published Monday. The United States is emerging as the backbone of global liquefied natural gas (LNG) supply, a development that indirectly supports the gas-rich Bakken play. According to OilPrice.com, damage to energy infrastructure in the Middle East, rising geopolitical instability, and concerns about shipping security have injected new risk into LNG markets, making reliability a premium product. U.S. export capacity currently stands at roughly 120 million metric tons per annum (MTPA), and could approach 220 MTPA within five years based on projects under construction. "The world is short of reliable LNG," LNG pioneer Charif Souki stated in an interview. "And the U.S. is the only producer with the ability to scale quickly." Demand is accelerating from Europe replacing Russian gas, Asia transitioning from coal, and a...

🔆Midday Wire·May 18

Global Markets

Global LNG Strain, Robust US M&A, and DOE Nuclear Grants Shape Energy Landscape

A threatened strike at a major Australian liquefied natural gas (LNG) facility could further tighten global gas markets, according to a report from OilPrice.com. The Offshore Alliance union, along with the Australian Workers Union and Maritime Union of Australia, on Monday notified Japanese company Inpex of 243 potential work stoppages and bans at its Ichthys LNG facilities between May 27 and June 10. The unions said the action follows failed negotiations last week over a new employment agreement they called "sub-standard." A union spokesperson stated, "We have made it clear to Inpex that we aren’t going to cop the short-changing of our bargaining claims." The potential supply disruption in Australia adds to existing strain on global LNG markets from the Middle East conflict. OilPrice.com reported that Iranian drone and missile strikes have damaged Qatar's key Ras Laffan LNG complex. QatarEnergy estimates the damage will cost about $20 billion per year...

🔆Midday Wire·May 18

Operator News

Global Energy Developments Signal Market Shifts for Bakken

Santos and Repsol have commenced oil production at a new project in Alaska, according to a report from Rigzone. At its production plateau, the asset's output will be equivalent to 19 percent of Alaska's current crude production, marking the first significant new volumes for the state in decades. While this development is outside the Williston Basin, the addition of new supply from a major U.S. producing region can influence national market dynamics and competitive pressures for Bakken operators. Separately, the U.S. Energy Information Administration has widened its projection for a global oil deficit in 2026, Rigzone reported. A wider deficit generally indicates tighter global supply relative to demand, which can support stronger oil prices. For Bakken producers, sustained higher prices are critical for maintaining drilling activity and cash flow in North Dakota's primary oil-producing formation. In a third development, Italian energy major Eni has completed an investment in a Canadian...

🔆Midday Wire·May 18

Pipeline & Infrastructure

Global Energy Developments Highlight Geopolitical, Market Shifts for Bakken

German utility Uniper has issued a call for capacity allocation at a planned hydrogen import terminal, according to a report by Rigzone. The terminal is designed to receive up to 2.6 million metric tons per year of ammonia, which can be processed into approximately 350,000 metric tons per annum of hydrogen. While focused on European energy transition, major global investments in alternative energy infrastructure can influence long-term demand forecasts for fossil fuels, including crude oil exported from the Bakken formation. Separately, geopolitical tensions affecting global oil flows persist, with Rigzone reporting no deal in sight to end the conflict involving Iran. Iran's semi-official Fars news agency stated the U.S. has set conditions for a peace deal, including transferring uranium from Iran's nuclear program to the U.S. Continued instability in the Middle East typically supports a risk premium in global oil prices, which can benefit Bakken producers by keeping benchmark prices...

🔆Midday Wire·May 18

Regulatory

Leadership Shift at Pemex, Trump Comments on Strait of Hormuz

Petroleos Mexicanos (Pemex) Chief Executive Officer Víctor Rodríguez Padilla is stepping down, according to a report from Rigzone. The news service reported the development on May 16, noting that Mexico's President-elect Claudia Sheinbaum has tapped the state oil company's current CFO to run the giant. Separately, former U.S. President Donald Trump commented on tensions surrounding a key global oil chokepoint. In remarks reported by Rigzone on May 15, Trump said he stopped short of asking Chinese leader Xi Jinping to pressure Iran to ease traffic through the Strait of Hormuz. However, he predicted the Chinese leader would do so. These international developments underscore the geopolitical forces that indirectly impact the Bakken formation. North Dakota's oil producers are integrated into a global market where supply disruptions or political decisions in major producing regions or along critical trade routes can affect the price benchmarks for which Bakken crude is sold. While not...

🔆Midday Wire·May 18

Production Data

North Dakota Rig Count Holds at 22 as Oil Prices Top $103

North Dakota's active drilling rig count held steady at 22 on Monday, May 18, 2026, as benchmark oil prices strengthened, providing a snapshot of current operator activity in the Bakken. The West Texas Intermediate (WTI) crude price was $103.01 per barrel, a gain of $1.99 or 1.97% on the day, while the global Brent benchmark traded at $111.08. The Bakken oil differential was -$3.42 per barrel versus WTI. The current rig count, a leading indicator of future production, has remained in a narrow range in recent months. This stability at a relatively low level suggests that Bakken operators are maintaining disciplined capital programs despite the high-price environment. Historically, the number of active rigs in North Dakota has a direct, though lagged, correlation with oil production trends. A sustained increase in the rig count typically precedes a rise in output by several months, while a stable or declining count often signals...

🔆Midday Wire·May 18

Workforce & Community

Bakken Rig Count Stalls at 22 as Oil Prices Top $100

The number of active drilling rigs in North Dakota held steady at 22 on Monday, May 18, 2026, despite benchmark oil prices trading above $100 per barrel. The stability at a low rig count suggests a continued period of restrained activity in the Bakken formation, with limited near-term pressure on local workforce and housing markets. West Texas Intermediate (WTI) crude closed midday at $103.01, a gain of $1.99 or 1.97%. The international benchmark Brent crude traded at $111.08. The Bakken crude differential was -$3.42 versus WTI, putting local wellhead prices near $99.59. Natural gas was priced at $3.02. Historically, rig counts in the Bakken are a primary indicator of oilfield employment levels, directly driving demand for drilling crews, field service technicians, and construction workers. A count of 22 rigs represents a fraction of the peak activity seen during previous boom cycles, which regularly exceeded 200 rigs and strained local housing,...

🔆Midday Wire·May 18

🌅Afternoon Wire4:00 PM CST

Oil Prices

WTI Rises Above $102, Bakken Differential Holds at -$3.42

West Texas Intermediate (WTI) crude oil prices rose Monday, trading above $102 per barrel and providing a supportive price signal for operators in North Dakota's Bakken formation. WTI settled at $102.14, a gain of $1.12 or 1.11% for the session. The international benchmark Brent crude showed a slight divergence, dipping by $0.35 to $108.91. The Bakken crude differential, a key metric for local producers, was reported at -$3.42 versus WTI. This means Bakken-grade crude is priced at approximately $98.72 per barrel at the wellhead, after accounting for the discount required to transport it to major hubs. Natural gas prices also saw gains, adding $0.06 to reach $3.02 per million British thermal units (MMBtu). The rise in WTI, contrasted with a minor decline in Brent, suggests market dynamics are being influenced by domestic U.S. factors and regional supply balances. A narrowing spread between the two benchmarks can reflect stronger U.S. demand...

🌅Afternoon Wire·May 18

Rig Report

North Dakota Rig Count Holds at 22 Amid Regional Activity Increase

The number of active drilling rigs in North Dakota held steady at 22 on Monday, May 18, according to live data from Bakken Wire. The count saw one rig added and one rig removed, resulting in no net change from the previous day. Silver Hill Energy Operating, LLC added a new rig, NABORS B27, to a location in Mountrail County (158-94-35). Meanwhile, HESS BAKKEN INVESTMENTS II, LLC released the ENSIGN 532 rig from its location in Williams County (156-97-3). No rigs were reported to have moved locations. The current rig count of 22 is up by one from the 21 rigs active one week ago on May 11. Compared to one month ago on April 18, the count is unchanged. The stability in North Dakota occurs as broader North American drilling activity shows a slight increase. According to Rigzone, North America added three rigs week-on-week in Baker Hughes' latest rotary...

🌅Afternoon Wire·May 18

Pipeline & Infrastructure

Canada Clears Path for 2027 Pipeline Start

Canada and Alberta have reached a carbon pricing deal that opens the way for construction of a new oil pipeline starting as early as 2027, according to a report from Rigzone. While the specific pipeline project was not named in the source material, the development represents a significant step forward for North American pipeline infrastructure. New export capacity from Canada could indirectly benefit Bakken Shale operators in North Dakota by improving overall market access and potentially easing regional congestion. The Bakken formation is a major oil-producing region, and its crude often moves via pipelines to broader markets, including Canadian export routes. Additional pipeline capacity heading to coastal terminals would support higher overall volumes moving from the interior of North America. For Bakken operators and royalty owners, increased pipeline construction activity in neighboring Canada signals a continued focus on expanding hard infrastructure for oil transport. This is critical for maintaining the...

🌅Afternoon Wire·May 18

Global Markets

Grid Bottlenecks in Southeast Asia May Impact Long-Term Oil Demand Outlook

A surge in power demand from data centers and electric vehicles in Southeast Asia faces significant delays due to grid bottlenecks, a development with long-term implications for global energy balances and Bakken crude oil markets. According to a report released Monday by Bain & Company and Standard Chartered, about 100 terawatt-hours of incremental power demand is expected from the region by 2030, but slower grid infrastructure development could slow the rollout. The report states that new power demand is set to materialize within one to three years, but the legacy grid development cycle needs 5 to 15 years. "Grid constraints are emerging as a binding bottleneck," said Patrick Lee, CEO Singapore and CEO ASEAN and South Asia at Standard Chartered, in the report. Limited transmission capacity risks constraining further data center investment, according to a separate survey by Bain in February 2026. For Bakken producers, a slowed electrification transition in...

🌅Afternoon Wire·May 18

Global Markets

Global Clean Energy Investment Slumps 42%, CCS Advances

Global investment in clean technology manufacturing fell 42% from its 2023 peak to $155 billion in 2025, according to a new report from the Rhodium Group cited by OilPrice.com. The decline is driven by cooling investment in the world's two largest economies, the United States and China. In China, investment levels have declined 70% since 2023, a market correction after years of oversupply and a slowdown in economic growth. In the United States, the trend reflects shifting policy priorities and private sector reaction to political uncertainty, OilPrice.com reported. Chinese companies in the green sector scrapped roughly $2.8 billion in planned U.S. manufacturing projects last year, with more than half of proposed investments canceled, paused, or delayed, according to reporting from Semafor. This pullback is a direct response to policy shifts under the Trump administration, including the rollback of the Biden-era Inflation Reduction Act, the cancellation of many clean energy tax...

🌅Afternoon Wire·May 18

Operator News

U.S. Upstream M&A Hits $38B in Q1 Amid Alaska Project Start

U.S. upstream mergers and acquisitions reached $38 billion in the first quarter of 2026, according to a report from Enverus Intelligence Research. The research firm noted that market volatility subsequently "paused… the market," according to Rigzone. For Bakken operators, high M&A activity can signal consolidation trends and shifting asset valuations in major onshore basins. In other operator news, Santos and Repsol have started oil production at an Alaska project. At plateau, production from the asset will be equivalent to 19 percent of Alaska's current output, "delivering the first significant new crude volumes to the state in decades," Rigzone reported. While not directly in the Williston Basin, new production in other U.S. regions can influence national supply dynamics and infrastructure focus. Separately, the U.S. Department of Energy awarded over $94 million to eight projects supporting light water small modular reactors (SMRs). The funds are for site permitting and supply chain development...

🌅Afternoon Wire·May 18

Pipeline & Infrastructure

Eni Invests in Canadian Battery Mine; Uniper Seeks Hydrogen Capacity

Italian energy major Eni has completed an investment commitment as part of a $213.16 million capital raise for the Phase 2 development of the Matawinie Mine project in Canada, according to Rigzone. The investment is targeted at a battery feedstock project. Separately, German power and gas utility Uniper has issued a call for capacity allocation at a hydrogen terminal in Germany, Rigzone reported. The terminal is designed to receive up to 2.6 million metric tons per year of ammonia, which is enough to produce approximately 350,000 metric tons per annum of hydrogen. In global energy security news, Iran's semi-official Fars news agency reported that the United States has set five main conditions for a peace deal to end the ongoing war, including transferring uranium tied to Iran's nuclear program to the U.S. Rigzone noted that no deal is currently in sight. For Bakken operators and the North Dakota energy sector,...

🌅Afternoon Wire·May 18

Regulatory

Brazil Top Recipient in Shell's $23.84B Global Payments

Shell paid governments a total of $23.84 billion in 2025 across 24 countries where it operates upstream activities, according to a report from Rigzone. Brazil displaced Nigeria as the top recipient, receiving $4.25 billion from the energy giant last year. The report, published May 17, details the scale of fiscal contributions from a major international operator. Such payments typically include taxes, royalties, and other production-related revenues remitted to host governments. For Bakken operators and North Dakota stakeholders, the report underscores the broader economic framework in which the industry operates. Oil and gas production remains a significant source of government revenue globally, which supports public services and infrastructure. In North Dakota, oil and gas tax and royalty payments are a critical component of the state's budget and fund local communities as well as state programs. The sheer magnitude of Shell's payments—nearly $24 billion in a single year—illustrates the fiscal weight of...

🌅Afternoon Wire·May 18