Wednesday, May 20, 2026

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Oil Prices

Oil Prices Slip as Geopolitical Tensions Weigh on Market

Oil prices declined in volatile trading on Tuesday, with both major benchmarks settling lower as the market assessed renewed geopolitical risks. West Texas Intermediate (WTI) crude for July delivery closed at $102.56 per barrel, a drop of $1.59 or 1.53%. The global benchmark, Brent crude, fell $2.04 to settle at $109.24 per barrel, according to live price data. The price movement was attributed to traders weighing renewed U.S. threats against Iran, Rigzone reported. Such geopolitical developments often introduce volatility as the market calculates potential impacts on global supply. For Bakken producers, the price of crude at the wellhead is directly affected by the Bakken differential. The discount for Bakken crude versus the WTI benchmark was $3.42 on Tuesday. This means Bakken crude is priced at approximately $99.14 per barrel. While the absolute price remains robust, a widening differential can pressure operator margins, affecting the economics of new drilling and completion...

☀️Morning Wire·May 20

Rig Report

North Dakota Rig Count Stable at 21 Amid Industry Conference

North Dakota's active drilling rig count held steady at 21 on Wednesday, with no additions, removals, or location changes since Tuesday, according to Bakken Wire's daily rig activity report. The current count is unchanged from a month ago, when the state also reported 21 active rigs on April 20, 2026. However, activity has declined slightly over the past week, down three rigs from the count of 24 reported on May 13, 2026. The stability in drilling activity coincides with a major industry gathering in the state. Thousands of oil and gas professionals are in Bismarck this week for the Williston Basin Petroleum Conference, one of the largest industry events in North Dakota, according to Bing News. The Bakken formation and broader Williston Basin in western North Dakota remain the state's primary oil-producing region. The rig count is a key indicator of near-term drilling investment and future production potential. A rig...

☀️Morning Wire·May 20

Daily Activity

KODA Leads New Bakken Permits, Oasis and Hess Drive Renewals

The North Dakota Department of Mineral Resources approved five new drilling permits and processed nine permit renewals in filings dated Tuesday, May 19, 2026, according to the agency's Daily Activity Report. The new permits show continued development in the core Bakken counties of McKenzie and Divide. Koda Resources Operating, LLC was the most active applicant for new permits, securing three approvals in Divide County. All three permits—42953, 42954, and 42955—are for wells named "Pilsner" in the East Goose Lake field. The other two new permits went to majors operating in McKenzie County. Enerplus Resources USA Corporation received permit 42951 for the "Magnum" well in the Baker field, and Burlington Resources Oil & Gas Company LP received permit 42952 for the "Ole Clemens" well in the Dimmick Lake field. Permit renewal activity was dominated by several large operators. Oasis Petroleum North America LLC filed four renewals for its "Aune Federal" pad...

☀️Morning Wire·May 20

Regulatory

Senate Confirms New BLM Director

The U.S. Senate confirmed the nomination of a new director for the Bureau of Land Management (BLM) on Tuesday, May 19, according to Rigzone. The vote concluded with 46 Yeas to 43 Nays, as reported on the senate.gov site. The BLM oversees millions of acres of federal lands, including those within oil-producing regions like the Bakken formation in North Dakota. While the specific policy direction of the new director was not detailed in the confirmation report, such appointments typically signal a shift in federal land management and leasing priorities. For Bakken operators, the BLM director plays a critical role in regulating drilling permits, lease sales, and environmental standards on federal parcels. Changes in leadership can impact the pace of permit approvals and the terms of federal oil and gas leases. Operators with significant activity on federal lands in the western part of the state will be monitoring subsequent policy announcements...

☀️Morning Wire·May 20

Global Markets

Global LNG Shock, Sanctions Shift Pose Complex Outlook for Bakken

The head of a major global LNG exporter warned on Wednesday that markets are "badly underestimating" a supply shock stemming from Middle East conflict, a dynamic that could underpin global energy prices and indirectly impact Bakken operators. Meanwhile, a key sanctions adjustment by the UK may alter refined fuel trade flows. Liz Westcott, CEO of Woodside Energy, stated that the global gas market does not yet fully appreciate the impact of curtailed LNG supply from the Middle East, according to an interview with Bloomberg Television published by OilPrice.com. “I don’t think markets and consumers and society are yet fully appreciating it, and there’s a belief that things will return to normal at some soon point,” Westcott said. The de facto closure of the Strait of Hormuz has trapped about 20% of daily global LNG flows, primarily from Qatar and the United Arab Emirates, OilPrice.com reported. Furthermore, Iranian strikes have damaged...

☀️Morning Wire·May 20

Global Markets

Global Supply Disruptions Hit Energean, India Plans Hormuz Moves

UK-based producer Energean plc slashed its dividend and full-year production outlook Wednesday after a 41-day halt to operations at its Karish gas field offshore Israel, according to OilPrice.com. The shutdown, ordered by the Israeli Energy Ministry from early March to April 9, cut first-quarter group production to 114,000 barrels of oil equivalent per day, a 21% year-on-year drop. As a direct consequence, Energean declared a dividend of 10 US cents per share for Q1 2026, down from $0.30 per share in the previous quarter. The company revised its 2026 total production guidance down to 130,000-140,000 boed, from 140,000-150,000 boed previously. Energean cited regional geopolitical events and their impact on commodity prices and costs. Meanwhile, India is planning to send empty tankers into the Strait of Hormuz to load oil and LPG directly from Gulf producers, OilPrice.com reported. This would be a first such move west of the chokepoint for India...

☀️Morning Wire·May 20

Operator News

Iran Comments Pressure Oil Prices; Aramco Launches Quantum Platform

Oil prices moved lower Wednesday morning, pressured by comments on Iran from U.S. President Donald Trump, according to Rigzone. Naeem Aslam, CIO at Zaye Capital Markets, said the president's remarks are "directly shaping the oil ecosystem," Rigzone reported. For Bakken operators, geopolitical statements affecting global crude prices directly influence the economics of drilling and production in North Dakota's primary oil field. Price volatility remains a key factor for Williston Basin activity. In a separate technology development, Saudi Aramco and Pasqal inaugurated Saudi Arabia's first quantum computer and launched the Middle East's first commercial quantum-computing-as-a-service platform, Rigzone reported. The platform, named "Aramco Quantum," offers access to quantum computing resources. While not a direct Bakken operator, Aramco's investment in advanced computing highlights the industry's broader push toward digital transformation and complex data analysis, areas relevant to optimizing shale reservoir performance. On the policy front, U.S. House lawmakers made public a massive transportation...

☀️Morning Wire·May 20

Pipeline & Infrastructure

NATO Hormuz Mission, Utility Merger, Austrian Gas Start-Up

NATO is starting to consider a mission in the Strait of Hormuz, according to Rigzone. Such a move would represent a shift in the military alliance's strategy toward the U.S.-Israeli war in Iran. The Strait of Hormuz is a critical global oil transit route. Any military activity or heightened tension in the region can disrupt shipping and influence global crude oil prices, which directly affect the value of Bakken production. In a major utility merger, Dominion Energy has agreed to merge into NextEra Energy, Rigzone reported. The all-stock merger would create the world's biggest regulated power utility by capitalization. While this deal involves East Coast utilities, it reflects ongoing consolidation in the energy sector. Large-scale mergers can shift investment patterns and influence broader energy infrastructure development, including potential implications for power supply and grid stability in oil-producing regions like the Bakken. Austrian energy company OMV has started up a major...

☀️Morning Wire·May 20

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Drop Sharply Despite Large Inventory Draw

Oil prices fell sharply in midday trading Wednesday despite a significant drawdown in U.S. crude inventories. West Texas Intermediate (WTI) crude was trading at $98.67 per barrel, down $5.48 or 5.26 percent. Brent crude was at $105.18, down $6.10 or 5.48 percent. The Bakken differential was $-3.42 versus WTI. The price drop coincided with the release of weekly inventory data from the U.S. Energy Information Administration (EIA). According to OilPrice.com, commercial crude inventories decreased by 7.9 million barrels for the week ending May 15, bringing stockpiles to 445.0 million barrels, which is now 2 percent below the five-year average. The report noted that total products supplied, a proxy for demand, rose to an average of 20.2 million barrels per day over the last four weeks, up 3.1 percent year-over-year. The price decline appears driven by geopolitical factors rather than fundamentals. OilPrice.com reported that crude prices saw relief Wednesday following a...

🔆Midday Wire·May 20

Operator News

ConocoPhillips Signs 30-Year Alaska LNG Supply Deal

ConocoPhillips, a major operator in North Dakota's Bakken formation, has signed a long-term agreement to supply natural gas from Alaska to a key liquefied natural gas (LNG) project, according to a report from Rigzone. The company inked a 30-year deal with developer Glenfarne to supply gas produced on Alaska's North Slope for the first phase of the Alaska LNG project. The deal, reported on May 20, 2026, secures a destination for ConocoPhillips' Alaska gas production for three decades. The gas is intended to supply consumers within the state of Alaska. This move underscores ConocoPhillips' significant investments and operational footprint beyond the contiguous United States, including the Bakken. For Bakken-focused observers, the deal highlights the diversified portfolio and long-term planning of a leading basin operator. While the agreement pertains to Alaskan assets, it reflects ConocoPhillips' broader strategy to secure stable, long-term outlets for its natural gas production across its portfolio. The...

🔆Midday Wire·May 20

Regulatory

Analyst Discusses Potential Iran Strait of Hormuz Tax in Peace Deal Context

A policy analyst has raised the question of whether the United States might permit Iran to impose a tax on shipping through the Strait of Hormuz as part of a potential peace deal, according to a report from Rigzone. The outlet discussed the scenario with Simon Henderson, director of the Washington Institute's Bernstein Program on Gulf and Energy Policy, and Howard Shatz, a senior economist at RAND and a professor of policy analysis at the RAND School of Public Policy. While specific details of any such proposal were not disclosed in the summary, the mere discussion of a potential "Hormuz tax" underscores the geopolitical risks that can influence global oil markets. The Strait of Hormuz is a critical maritime chokepoint, with a significant portion of the world's seaborne oil trade, including crude from major Middle East producers, passing through it. For Bakken operators and North Dakota's oil industry, geopolitical developments...

🔆Midday Wire·May 20

Global Markets

Global LNG, Sanctions Shifts Present Mixed Signals for Bakken

Two international developments reported Wednesday highlight shifting global energy trade patterns that could influence the long-term market for Bakken hydrocarbons. ConocoPhillips signed a major long-term LNG supply agreement, while the United Kingdom adjusted its stance on Russian-origin fuels, according to separate reports from Rigzone. ConocoPhillips has inked a 30-year deal with developer Glenfarne to supply natural gas from Alaska's North Slope for the first phase of the Alaska LNG project, Rigzone reported. The agreement is structured to supply gas to the state of Alaska. For Bakken operators, large-scale LNG projects locking in domestic supply contracts can solidify long-term natural gas demand and pricing structures, which is relevant for associated gas produced from North Dakota's oil wells. In a separate move, the UK government will allow the import of diesel and jet fuel that has been refined from Russian crude oil in third countries, such as India and Turkey, Rigzone reported...

🔆Midday Wire·May 20

Global Markets

Global Fuel Shortage, EV Surge Coincide with ND Oil Anniversary

A tightening market for conventional marine fuel and a surge in global electric vehicle sales are creating a complex energy landscape as North Dakota marks a historic milestone for its industry, according to recent reports. The escalation of conflict in the Middle East and disruption to energy flows through the Strait of Hormuz have raised the possibility of conventional marine fuel becoming unavailable, according to an analysis from OilPrice.com. This introduces a new challenge for the maritime energy transition, as competing domestic priorities could absorb available fuel supply. Simultaneously, the International Energy Agency (IEA) said on Wednesday that electric vehicle sales could hit nearly 30% of all global car sales this year. The agency cited spiking fuel prices in the wake of the Iran war as a key driver accelerating the shift to EVs and hybrids. Global EV sales are set to reach 23 million in 2026, according to the...

🔆Midday Wire·May 20

Operator News

Industry Leaders Gather in Bismarck as Global Events, Earnings Shape Outlook

Thousands of oil and gas professionals are in Bismarck this week for the Williston Basin Petroleum Conference, one of the largest industry events in North Dakota, according to Bing News. The conference kicked off on Tuesday, May 19. The gathering occurs as global events continue to influence crude markets. Nigerian oil companies are plowing windfall gains from a crude rally linked to the Iran war into near-term extraction projects, Rigzone reported Wednesday. This move by a major OPEC member to increase output could add to global supply, potentially applying a moderating influence on the price premiums that Bakken producers benefit from during geopolitical disruptions. On the earnings front, Tulsa-based Empire Petroleum reported lower first-quarter revenue. The company posted sales revenue of $7.68 million for the quarter, down from $8.99 million for the same period last year, Rigzone reported. The decrease was attributed to lower production and lower realized oil and...

🔆Midday Wire·May 20

Pipeline & Infrastructure

Oil Prices Respond to Trump Iran Comments; Aramco Launches Quantum Platform

Oil prices moved lower Wednesday morning, with market analysts attributing the pressure directly to comments from U.S. President Donald Trump regarding Iran. According to Rigzone, Naeem Aslam, CIO at Zaye Capital Markets, stated that Trump's remarks are "directly shaping the oil ecosystem." For Bakken producers, such geopolitical-driven volatility underscores the continued sensitivity of crude markets to global events, influencing the value of their output. In a separate technology development, Saudi Aramco and Pasqal inaugurated Saudi Arabia's first quantum computer and launched the Middle East's first commercial quantum-computing-as-a-service platform, Rigzone reported. While the launch is international, it highlights the increasing adoption of advanced computing within the oil and gas sector for tasks like reservoir modeling and logistics optimization, a trend relevant to operators in the Bakken seeking efficiency gains. On the policy front, a massive transportation bill made public Sunday by House lawmakers includes a plan to impose new fees on...

🔆Midday Wire·May 20

Production Data

Bakken Rig Count Holds at 21 as Oil Prices Retreat Sharply

North Dakota's active drilling rig count held steady at 21 this week, according to the latest Bakken Wire live data, as a sharp midday sell-off in crude oil markets added new uncertainty to the production outlook for the nation's third-largest oil-producing state. The number of rigs actively drilling for oil and gas in the state has been range-bound between 20 and 25 for several months, a level last seen in the early 2000s before the shale boom. This stagnant activity points to a continued gradual decline in the state's crude output over the coming months. The current rig count is a fraction of the peak of over 200 seen in 2012 and the 50-60 rigs that were typical in the years prior to the 2020 market crash. The drilling slowdown comes despite Wednesday's West Texas Intermediate (WTI) crude price of $98.67 per barrel, a historically high level. However, that price...

🔆Midday Wire·May 20

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Plunge Over 5%, Bakken Differential Widens

Front-month crude oil futures sold off sharply on Wednesday, with both major benchmarks falling more than 5%. The price drop puts immediate pressure on Bakken shale operators' revenue streams. West Texas Intermediate (WTI) crude for June delivery settled at $98.87 per barrel, down $5.28 or 5.07% for the session. The global benchmark, Brent crude, fell $5.91 to $105.37 per barrel, a decline of 5.31%. The discount for Bakken crude at the Clearbrook, Minnesota, hub widened to $3.42 per barrel below WTI. The steep decline coincided with a broader risk-off move in financial markets, driven by renewed concerns over global economic growth and its impact on fuel demand. Equity markets also fell sharply, contributing to the sell-off in commodity assets. For Bakken producers, the sudden drop erodes the pricing advantage seen in recent weeks. The wider Bakken differential means wellhead realizations will be further pressured compared to the benchmark. Operators with...

🌅Afternoon Wire·May 20

Rig Report

North Dakota Rig Count Rises to 25 with Four New Drilling Rigs

North Dakota's active drilling rig count climbed to 25 on Wednesday, a net increase of four rigs from the previous day with no rigs taken offline, according to live rig data. The increase marks the highest level in at least a month and continues a recent upward trend in basin activity. Four new rigs were activated by major operators across three core Bakken counties. Hess Bakken Investments II, LLC spudded a new well in McKenzie County using the ENSIGN 532 rig at location 149-100-33. In neighboring Williams County, XTO Energy Inc. deployed the H & P 429 rig at 154-95-7. SOGC, LLC also commenced operations in McKenzie County with the H & P 515 at 147-98-3. Hunt Oil Company added a rig in Burke County, with the NABORS B25 starting at 160-91-35. One rig changed location within the state. WGO Resources, LLC moved its STONEHAM 16 rig to a new...

🌅Afternoon Wire·May 20

Operator News

ConocoPhillips Secures 30-Year Alaska LNG Supply Deal with Glenfarne

ConocoPhillips, a major operator in North Dakota's Bakken formation, has signed a 30-year agreement to supply natural gas for the Alaska LNG project, according to a report from Rigzone. The deal, signed with developer Glenfarne, will see ConocoPhillips supply gas produced on Alaska's North Slope for the project's first phase. The agreement underscores ConocoPhillips's strategy to secure long-term outlets for its natural gas production across its portfolio. While the company is a significant oil producer in the Bakken, it also produces substantial associated natural gas from the region's wells. For Bakken operators and royalty owners, this deal highlights the ongoing industry push to find stable markets for natural gas, which is often a byproduct of oil-focused drilling in the Williston Basin. Infrastructure constraints and pricing at hubs like the Northern Border pipeline have historically challenged gas realizations in North Dakota. A major player locking in a decades-long supply contract in...

🌅Afternoon Wire·May 20

Regulatory

Report Examines Potential US-Iran Deal Involving Strait of Hormuz

A new analysis examines the possibility of the United States accepting an Iranian-imposed transit fee for oil tankers passing through the Strait of Hormuz as part of a potential peace deal, according to a report from Rigzone. The article, published Wednesday, features insights from Simon Henderson of the Washington Institute's Bernstein Program on Gulf and Energy Policy and Howard Shatz of the RAND Corporation. While the report is speculative, any formal change to the free transit regime in the Strait of Hormuz would have significant repercussions for global oil markets. The strait is a critical chokepoint for seaborne crude oil trade, with a substantial portion of the world's supply passing through it. For Bakken operators, stability and cost predictability in global shipping lanes are key factors for the price competitiveness of their crude. North Dakota's oil primarily moves to market via pipelines and rail, but its final price is benchmarked...

🌅Afternoon Wire·May 20

Global Markets

Global Energy Shifts Present Risks, Opportunities for Bakken Operators

A major domestic lithium discovery and a global pivot back to coal are reshaping the energy landscape, with significant implications for North Dakota's Bakken formation, according to reports published Wednesday. These shifts highlight competing pressures on the oil and gas sector from energy security needs and the transition to electrified transportation. The United States Geological Survey has identified over 300 years' worth of lithium resources in the Appalachian region, a find that could bolster U.S. battery supply chain independence. According to an OilPrice.com report, the study found Appalachia may hold 2.3 million metric tons of recoverable lithium oxide. USGS Director Ned Mamula stated the research "highlights the abundant potential to reclaim our mineral independence." The discovery, centered in Maine, New Hampshire, and Vermont, presents a long-term strategic resource as global lithium demand is projected to grow over 40-fold by 2040, according to the International Energy Agency. Concurrently, the global energy...

🌅Afternoon Wire·May 20

Global Markets

Global Tensions Weigh on Oil as ND Marks 75 Years of Production

Oil prices fell sharply Wednesday as political developments renewed hopes for a deal with Iran, according to Rigzone. The drop followed signals from former President Donald Trump regarding progress toward a possible agreement. Meanwhile, a proposed new trade corridor halfway around the world underscores the persistent geopolitical risks influencing global energy markets. Uzbekistan, Afghanistan, and Pakistan are moving toward a "conceptual agreement" on a transit corridor linking Central Asia to the Arabian Sea ports of Karachi and Gwadar, OilPrice.com reported, citing a top Uzbek transport official. The route, revealed by Uzbekistan's Deputy Minister of Transport Jasurbek Choriev during an Asian Development Bank meeting in Samarkand earlier this month, is designed to reduce reliance on Iran's port of Bandar Abbas. Choriev stated the Iranian route is not feasible because "today's situation remains very unpredictable," even if a truce is reached among the U.S., Israel, and Iran. For Bakken operators, these global...

🌅Afternoon Wire·May 20

Operator News

Vitol Gains Trader Ranking; Phillips 66 Advances Plants; Nigeria Boosts Output

Swiss commodity trader Vitol has overtaken Shell PLC among the top 10 U.S. physical natural gas traders, according to regulatory filings reported by Rigzone. This shift in the ranks of major market participants could influence trading dynamics for natural gas, a key associated product from the Bakken formation's oil wells. In a separate development, Phillips 66 has approved the construction of two new processing projects, Rigzone reported. The company will proceed with a natural gas processing plant and a natural gas liquids (NGL) fractionator, both slated to begin operations in 2028. For Bakken operators, increased NGL and gas processing capacity on a national scale can provide more outlets for the region's production, supporting field economics. Meanwhile, global events are prompting production responses elsewhere. According to Rigzone, Nigerian oil companies are using windfall gains from a crude price rally linked to the Iran war to invest in near-term extraction projects, lifting...

🌅Afternoon Wire·May 20

Pipeline & Infrastructure

Empire Petroleum Q1 Revenue Drops, Market Watches Trump's Iran Remarks

Empire Petroleum reported a year-over-year decrease in its first-quarter sales revenue, according to a Rigzone report published Wednesday. The Tulsa-based producer posted $7.68 million in sales revenue for Q1 2026, down from $8.99 million for the same period in 2025. The company cited lower production and lower realized oil and gas prices as the cause, Rigzone reported. Separately, oil markets were moving lower Wednesday following comments from U.S. President Donald Trump regarding Iran. Naeem Aslam, CIO at Zaye Capital Markets, stated that Trump's comments are "directly shaping the oil ecosystem," according to a separate Rigzone report. Geopolitical developments that influence global crude prices directly affect the economics of Bakken shale production, where well profitability is tightly linked to the prevailing price of West Texas Intermediate. In other industry news, Saudi Aramco and technology firm Pasqal have launched a new quantum computing platform. The companies inaugurated Saudi Arabia's first quantum computer...

🌅Afternoon Wire·May 20