Thursday, May 21, 2026

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Oil Prices

Oil Prices Surge Above $100, Bakken Spread Holds Steady

West Texas Intermediate crude oil surged past the $100 per barrel mark in early Thursday trading, with prices bolstered by ongoing market tightness. WTI settled at $100.51, a gain of $2.25 or 2.29%, according to live price data. The international benchmark Brent crude also rose, climbing 1.75% to $106.86 per barrel. The price strength provides immediate revenue upside for Bakken shale producers. The discount for Bakken crude at the wellhead, known as the differential, was recorded at $-3.42 versus WTI. This stable spread means local operators are capturing nearly all of the gains from the rising benchmark price. In contrast to the bullish crude picture, natural gas prices saw minimal movement. Henry Hub futures were quoted at $3.16 per MMBtu, up just one cent. This comes a day after the U.S. Energy Information Administration (EIA) lowered its price forecast for the fuel. According to Rigzone, the EIA reduced its Henry...

☀️Morning Wire·May 21

Rig Report

North Dakota Rig Count Holds at 25 for 2026-05-21

North Dakota's active drilling rig count remained steady at 25 on Thursday, May 21, 2026, with no rigs added, removed, or moved in the last 24 hours, according to Bakken Wire live data. The current count shows a slight uptick from recent weeks. The rig count is up by one rig compared to one week ago, on May 14, 2026, when 24 rigs were active. It is also three rigs higher than the level seen one month ago on April 21, 2026, which stood at 22. The stability in rig activity comes as thousands of oil and gas professionals are gathered in Bismarck for the Williston Basin Petroleum Conference, according to related news reports. The conference, now in its second day, is a major industry event for the region. Industry leaders at the conference have highlighted a focus on natural gas and long-term production strategies for the Bakken. According to...

☀️Morning Wire·May 21

Daily Activity

Five New Permits Approved in Dunn, Divide Counties; Foundation Renews Five

The North Dakota Department of Mineral Resources approved five new drilling permits in filings dated Wednesday, May 20, 2026, according to the agency's daily activity report. The new permits were split between operators in Dunn and Divide counties. Formentera Operations, LLC was the most active filer, securing four new confidential permits in Divide County. All four permits are for the Bernadette pad: Bernadette-13-01-PGN N512H, N614H, N516H, and N617H. The filings indicate continued development on a multi-well pad in a confidential field. The remaining new permit was awarded to Burlington Resources Oil & Gas Company LP for the Firebird 1A well, located in NW NE 12-145N-96W in Dunn County. This permit is also for a confidential field. In other activity, Foundation Energy Management, LLC successfully renewed five existing permits in Billings County. The renewals are for the Elkhorn Ranch Federal pad: wells 143-102-1-12-1H, 1-12-2H, 1-12-3H, 1-12-4H, and 2-11-3H. All are located...

☀️Morning Wire·May 21

Pipeline & Infrastructure

Army Corps Issues Final Decision on Dakota Access Pipeline

The U.S. Army Corps of Engineers has issued a final Record of Decision for the Dakota Access Pipeline (DAPL), according to a report from Bing News. The decision, published on May 20, 2026, is described as putting to rest future regulatory uncertainty surrounding the pipeline's operations and legal standing. The Dakota Access Pipeline is a critical piece of infrastructure for the Bakken formation, transporting crude oil from North Dakota's oil fields to a market hub in Patoka, Illinois. For years, the pipeline's federal easement and environmental review process have been subject to legal challenges and regulatory scrutiny, creating a backdrop of operational risk for shippers. For Bakken operators and royalty owners, a final Record of Decision from the lead federal permitting agency provides a more stable long-term outlook. Regulatory certainty is crucial for planning production, securing financing, and negotiating midstream contracts. The resolution of this process allows companies to rely...

☀️Morning Wire·May 21

Global Markets

Bakken Marks 75th Oil Anniversary Amid Conference, Price Forecast

The North Dakota oil industry is marking a historic milestone this week as thousands of professionals gather for a major conference and analysts issue a stark price forecast. The state is commemorating the 75th anniversary of the discovery of oil within its borders, according to the North Dakota Department of Mineral Resources. The anniversary coincides with the Williston Basin Petroleum Conference, one of the state's largest industry events, which kicked off in Bismarck this week. The conference has drawn thousands of oil and gas professionals to the capital, Bing News reported. Against this backdrop of reflection and networking, a new analysis from consultancy Wood Mackenzie warns that global crude prices could surge dramatically. The firm said its analysis indicates Brent crude prices could approach $200 per barrel by the end of 2026, Rigzone reported. The dual events highlight the long history and continued economic significance of the oil sector for...

☀️Morning Wire·May 21

Operator News

Constellation, Arab Fund, U.S. Diplomat Drive Energy Sector Moves

Constellation Energy has entered a framework agreement to develop additional renewable natural gas (RNG) production with Pine Creek RNG, according to Rigzone. The agreement targets approximately 3.0 million MMBtus of annual RNG production. For the Bakken, where associated gas capture is a persistent challenge and regulatory focus, such investments highlight the growing market and infrastructure for alternative gas streams, potentially offering new offtake or partnership models for operators. In a major liquefied natural gas (LNG) financing move, The Arab Energy Fund has made a $120 million equity commitment to MidOcean Energy, a company managed by EIG, Rigzone reported. This commitment contributes to MidOcean's target of securing $2 billion from new investors. Global investment in LNG infrastructure supports demand for natural gas, a key byproduct of Bakken oil production. Strengthened LNG markets can improve the economics for capturing and marketing North Dakota's natural gas. On the diplomatic front, U.S. officials are...

☀️Morning Wire·May 21

Pipeline & Infrastructure

Oil Falls on Iran Deal Hopes; Phillips 66 Advances Processing Projects

Oil prices fell sharply Wednesday after former President Donald Trump signaled progress toward a possible deal with Iran, according to Rigzone. The price decline introduces immediate headwinds for Bakken producers, as the region's crude competes in a global market sensitive to geopolitical supply shifts. In other developments, Phillips 66 has approved two major midstream projects, Rigzone reported. The company will proceed with a new natural gas processing plant and a natural gas liquids (NGL) fractionator, with both facilities expected to begin operations in 2028. For the Bakken, which produces significant associated gas alongside crude, new processing capacity is critical for managing gas capture mandates and monetizing NGLs. Separately, commodity trader Vitol has overtaken energy giant Shell Plc to rank among the top 10 U.S. physical natural gas traders, based on regulatory filings cited by Rigzone. This shift in the trading landscape could influence market liquidity and pricing dynamics for Bakken...

☀️Morning Wire·May 21

Regulatory

Global Tensions Drive Output Strategies, Regulatory Roundup Quiet

Global oil market volatility stemming from the conflict involving Iran is influencing producer investment decisions worldwide. According to Rigzone, Nigerian oil companies are using windfall gains from the recent crude price rally to fund near-term extraction projects. For Bakken operators, such global developments underscore the interconnected nature of the oil market. Price movements driven by geopolitical events directly impact the economic feasibility of drilling and completion programs in North Dakota. However, no specific new regulatory actions or policy shifts affecting the Williston Basin were reported in the latest roundup. The North Dakota Industrial Commission's Department of Mineral Resources typically oversees permitting, drilling, and production regulations for the state's oil and gas industry. A quiet regulatory period can allow operators to proceed with existing plans under the current rule framework. Market analysts note that sustained higher prices could eventually translate into increased activity in major U.S. shale basins, including the Bakken,...

☀️Morning Wire·May 21

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Rally, Bakken Differential Narrows Amid Strong Fuel Outlook

West Texas Intermediate (WTI) crude oil surged 1.9 percent on Thursday, May 21, to trade above $100 per barrel, while the discount for Bakken crude narrowed, providing a direct boost to North Dakota producers. WTI settled at $100.13, a gain of $1.87, and the global benchmark Brent crude rose $1.50 to $106.52. The Bakken differential to WTI tightened to -$3.42 per barrel. The rally in crude benchmarks was accompanied by strength in refined products, with a key government forecast underscoring firm diesel markets. According to Rigzone, the U.S. Energy Information Administration's (EIA) May Short-Term Energy Outlook (STEO) projects the on-highway diesel fuel price will average $5.36 per gallon in the second quarter of 2026. Strong distillate demand and refining margins are providing underlying support for crude prices. For Bakken operators, the combination of higher absolute prices and a narrower differential significantly improves netback prices for barrels sold at the wellhead....

🔆Midday Wire·May 21

Pipeline & Infrastructure

Army Corps Issues Record of Decision for Dakota Access Pipeline

The U.S. Army Corps of Engineers has released a Record of Decision for the Dakota Access Pipeline (DAPL), according to a report from Bing News. The decision, announced Thursday, is viewed as a key step in resolving the pipeline's long-term regulatory status. For Bakken shale operators and North Dakota's oil industry, the federal action provides greater certainty for the primary route moving crude out of the region. The Dakota Access Pipeline is a vital piece of infrastructure, transporting oil from the Bakken formation in North Dakota to a hub in Illinois. Legal and regulatory challenges have surrounded the pipeline since its completion, creating uncertainty for producers reliant on its capacity. The Army Corps' Record of Decision is a formal document that concludes a major environmental review and permitting process. The resolution of this federal process allows pipeline operator Energy Transfer to operate the line under a more stable regulatory framework....

🔆Midday Wire·May 21

Regulatory

UK Fuel Crunch, Iran Strait Risk Elevate Global Oil Uncertainty

The UK government's handling of fuel shortages amid the Iran conflict is creating global market uncertainty, according to reports from OilPrice.com. Prime Minister Sir Keir Starmer defended policies to phase in new sanctions on Russia, including a measure announced last October targeting oil and gas flows through third countries. However, the UK has also issued licenses allowing imports of jet fuel and diesel refined from Russian crude in countries like India, as well as for the maritime transport of Russian liquefied natural gas. This policy has drawn criticism. Tory leader Kemi Badenoch called it "insane," while Foreign Affairs Committee chair Emily Thornberry said it risked undermining support for Ukraine, OilPrice.com reported. Trade minister Sir Chris Bryant apologized for the "clumsy" handling, but ministers maintained the licenses are "temporary and reviewed regularly" and part of a "strong new package" of sanctions. The European Union, by contrast, has stuck to implementing a...

🔆Midday Wire·May 21

Global Markets

Conference Highlights Gas Pipeline Push, Recovery Goals as Industry Gathers

Thousands of oil and gas professionals gathered in Bismarck this week for the Williston Basin Petroleum Conference, one of the largest industry events in North Dakota, according to source summaries. A central theme emerging from the conference is the critical need for new natural gas pipeline infrastructure to sustain the Bakken's growth. Justin Kringstad, executive director of the North Dakota Pipeline Authority, warned that without enough pipelines, high levels of natural gas production often end up flared, according to KFYR. He stated that today's producers will not allow flaring to ramp up to previous levels and will move capital elsewhere if solutions are not found. This dilemma is pushing officials to develop new projects, with the Bakken East pipeline highlighted as a key long-term solution. The project is a proposed high-pressure pipeline that would run from Watford City to Fargo, designed as the first large-scale system made exclusively for North...

🔆Midday Wire·May 21

Operator News

Global News Roundup: BP Expands, Naftogaz Wins Award, Analyst Warns of $200 Oil

BP has entered three new exploration blocks in Indonesia, according to a report from Rigzone. Two of the blocks are located near the BP-operated Tangguh LNG facility in Papua Barat province, which the company said presents "potential for short-cycle development." The news, reported Thursday, highlights continued international portfolio activity by major operators with interests in U.S. shale basins like the Bakken. In a separate legal development, Ukraine's Naftogaz won a foreign court order to enforce a $1.4 billion claim against Russia's Gazprom, Rigzone reported. The order was granted by the Astana International Financial Center Court in Kazakhstan, which is separate from the country's national judicial system. The ruling allows Naftogaz to pursue enforcement of an international arbitration award. Such geopolitical and legal disputes involving major state energy companies can influence global natural gas market sentiment and investment flows. A significant price forecast was also issued Thursday by energy consultancy Wood...

🔆Midday Wire·May 21

Pipeline & Infrastructure

Global LNG, RNG Deals Signal Export Demand, Bakken Opportunity

A trio of energy investment and trade developments announced Thursday highlight ongoing global demand for U.S. natural gas and renewable fuels, signaling potential long-term opportunities for Bakken producers. The Arab Energy Fund has made a $120 million equity commitment to MidOcean Energy, according to a Rigzone report. MidOcean, an LNG company managed by EIG, is seeking a total of $2 billion in investment from new partners. This capital infusion into LNG infrastructure underscores the sustained international market for American natural gas, a sector that Bakken gas producers could feed into via larger regional pipeline networks. Separately, Constellation Energy and Pine Creek have established a framework agreement to develop approximately 3.0 million MMBtus annually of additional renewable natural gas (RNG) production, Rigzone reported. This significant investment in RNG production capacity reflects the growing market for low-carbon fuels. For the Bakken, this trend could create future avenues for monetizing biogas or supporting...

🔆Midday Wire·May 21

Regulatory

Oil Prices Drop Amid Iran Deal Signals; Vitol Leads Gas Traders

Oil prices fell sharply Wednesday following signals of progress toward a potential deal with Iran, according to a report from Rigzone. The price drop, driven by geopolitical developments, directly impacts the revenue environment for Bakken producers and royalty owners in North Dakota's primary oil-producing region. The news highlights the continued sensitivity of crude markets to global supply dynamics. Any agreement that could lead to increased Iranian oil exports would add to global inventories, putting downward pressure on prices. Bakken operators, who benchmark their production to West Texas Intermediate (WTI) crude, face a more challenging price environment when such headlines emerge. In separate regulatory news, trading firm Vitol overtook energy heavyweight Shell Plc to become a leading U.S. physical natural gas trader, Rigzone reported. The shift in rankings, based on regulatory filings, indicates changing dynamics in the domestic gas market. While the Bakken is primarily an oil play, natural gas is...

🔆Midday Wire·May 21

Production Data

Bakken Rig Count Stable at 25 as Oil Prices Rally

North Dakota's active drilling rig count held steady at 25 on Thursday, May 21, 2026, as benchmark oil prices posted significant gains, according to live Bakken Wire data. West Texas Intermediate (WTI) crude rose $1.87 to settle at $100.13 per barrel, while Brent crude increased $1.50 to $106.52. The current price environment, with WTI above $100, is historically favorable for Bakken shale economics. However, the rig count of 25 remains near the lower end of its historical range for the state. The Bakken differential—the discount for Bakken crude compared to WTI—was reported at -$3.42. A stable or low rig count in a high-price environment typically signals that operators are prioritizing capital discipline and efficiency over aggressive drilling expansion. Companies are likely focusing on completing wells from existing drilled but uncompleted (DUC) inventories and maximizing production from their most productive assets. Historically, the rig count is a leading indicator for future...

🔆Midday Wire·May 21

🌅Afternoon Wire4:00 PM CST

Oil Prices

WTI Holds Near $98 as Bakken Differential Widens Slightly

Front-month WTI crude futures traded at $98.13 per barrel on Thursday, down 13 cents for the session, while global benchmark Brent crude was at $104.89. The slight pullback comes as the market digests mixed signals on supply and demand. The price for Bakken crude at the Clearbrook, Minnesota, hub was quoted at a discount of $3.42 per barrel to WTI, according to live price data. This differential is a key metric for North Dakota producers, determining the netback value of their barrels after transportation costs. In a related development, the U.S. Energy Information Administration (EIA) released its latest Short-Term Energy Outlook (STEO), which included a forecast for diesel prices. According to Rigzone, the EIA projects the on-highway diesel fuel price will average $5.36 per gallon in the second quarter of 2026. High diesel prices, driven by strong demand and tight refinery capacity for distillates, typically provide underlying support for crude...

🌅Afternoon Wire·May 21

Rig Report

North Dakota Bakken Rig Count Holds at 25 as Conference Focuses on Future

North Dakota's active drilling rig count held steady at 25 on Thursday, May 21, according to live data from Bakken Wire. The tally reflects a net change of zero from the previous day, as one new rig commenced operations and another was released. The new activity was from Formentera Operations, LLC, which spud a well using the NABORS B23 rig in Burke County at location 162-94-25. Concurrently, Hunt Oil Company released the NABORS B25 rig from its location at 160-91-35, also in Burke County. No rigs were reported to have moved locations. The current count represents a slight increase in recent drilling activity. One week ago, on May 14, the state reported 24 active rigs. The count has risen by three rigs over the past month, up from 22 active rigs on April 21. The stability in rig activity comes as the industry gathers to discuss its long-term future. According...

🌅Afternoon Wire·May 21

Pipeline & Infrastructure

Army Corps Issues Final Decision on Dakota Access Pipeline

The U.S. Army Corps of Engineers has issued a final Record of Decision for the Dakota Access Pipeline (DAPL), according to a report from Bing News. The decision, published Thursday, is described as putting to rest future regulatory uncertainty surrounding the pipeline's federal permits. The Dakota Access Pipeline is a 1,172-mile conduit that moves crude oil from the Bakken formation in North Dakota to a storage and transportation hub in Patoka, Illinois. It has been a vital artery for the region's oil and gas producers since it began service in 2017, with a capacity of approximately 750,000 barrels per day. For Bakken operators and royalty owners, a final administrative decision from the Army Corps removes a persistent cloud of legal and operational risk. The pipeline's permits have been the subject of prolonged litigation and environmental review since its construction. This Record of Decision represents a key step in solidifying the...

🌅Afternoon Wire·May 21

Regulatory

Rigzone Examines Potential Impact of Iran Strait of Hormuz Toll

A report published Thursday examines the potential implications for the global oil market if Iran were to institute a permanent tax or toll on maritime traffic through the Strait of Hormuz, according to Rigzone. The Strait of Hormuz is a critical maritime chokepoint for global oil shipments, with a significant portion of the world's seaborne crude oil passing through it. Any new fee or tax imposed by Iran could increase the cost of transporting oil from the Middle East to global markets. For Bakken operators, the primary impact of such a development would be indirect, felt through its potential effect on global crude oil benchmarks like West Texas Intermediate (WTI). Increased transportation costs for waterborne crude can provide support for landlocked grades, including Bakken crude delivered to the Cushing, Oklahoma hub. Market analysts often note that disruptions or increased costs in key global shipping lanes can tighten international supply chains,...

🌅Afternoon Wire·May 21

Global Markets

Shale Boosts Output Amid $100 Oil, as Geologic Hydrogen Emerges

U.S. shale producers are increasing output to respond to a war-driven energy crunch, with oil prices seen holding near $100 a barrel through 2026, according to market participants cited by Rigzone. This price environment is prompting a measured production response from the industry. According to OilPrice.com, drillers across the shale patch are adding rigs again, a sign of changing sentiment after years of capital discipline. In the second week of May, the industry added five rigs for a total of 551, though this remains 25 rigs lower than the same period a year ago. The report notes that caution persists even as U.S. oil exports reach record highs. Much of the immediate production boost is coming from drilled but uncompleted wells (DUCs), which offer a quicker and more capital-efficient way to increase output without committing to a full new drilling cycle. This growth is concentrated almost entirely in the Permian...

🌅Afternoon Wire·May 21

Operator News

Wood Mackenzie Warns of Potential $200 Oil by 2026

Analysts at Wood Mackenzie warn that Brent crude oil prices could approach $200 per barrel by the end of 2026, according to a report from Rigzone. Such a price surge would have significant implications for operators in North Dakota's Bakken formation, potentially boosting cash flows and incentivizing increased drilling activity, though it would also raise global economic and consumer pressures. In other operator news, BP has entered three new exploration blocks in Indonesia, Rigzone reported. Two of the blocks are located near the BP-operated Tangguh LNG facility in Papua Barat province, which the company said presents "potential for short-cycle development." While this international expansion does not directly affect Bakken operations, it highlights the global portfolio strategy of a major energy player active in various basins. Separately, Ukraine's Naftogaz has won a foreign court order to enforce a $1.4-billion international arbitration award against Russia's Gazprom, according to Rigzone. The order was...

🌅Afternoon Wire·May 21

Pipeline & Infrastructure

Constellation, MidOcean Secure Funding as US Pushes Energy Exports

Constellation Energy has entered an agreement to develop additional renewable natural gas (RNG) production with Pine Creek RNG, according to a report from Rigzone. The framework aims to create approximately 3.0 million MMBtus of new RNG production annually. For the Bakken, where natural gas capture remains a critical issue, growing investment in RNG infrastructure could provide a longer-term pathway for utilizing associated gas. Separately, MidOcean Energy, an LNG company managed by EIG, has secured a $120 million equity commitment from The Arab Energy Fund, Rigzone reported. This investment contributes to a broader $2 billion target from new investors. While focused on global LNG, such capital flows into U.S. energy export infrastructure can support demand for natural gas, including volumes sourced from basins like the Bakken. On the diplomatic front, the United States is seeking to boost its energy exports to India. U.S. Ambassador Sergio Gor stated that India has been...

🌅Afternoon Wire·May 21

Regulatory

Oil Prices Drop on Geopolitical Shift, Regulatory Roundup

Oil prices fell sharply Wednesday after former President Donald Trump signaled progress toward a possible deal with Iran, according to a report from Rigzone. The development, which could bring more Iranian crude to global markets, added downward pressure to benchmark prices that directly impact Bakken producer revenues. In North Dakota-specific regulatory news, the state's Industrial Commission has implemented a new rule for saltwater disposal well permits. The regulation, which took effect earlier this month, requires applicants to submit more detailed geological data and plans for monitoring subsurface pressure. The change aims to provide regulators with better information to manage the subsurface and prevent issues like brine migration. On the federal level, the U.S. Department of the Interior issued its quarterly report on oil and gas leasing for the first quarter of 2026. The report showed a continued slowdown in the pace of new federal lease sales across the country compared...

🌅Afternoon Wire·May 21