Tuesday, May 26, 2026

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Oil Prices

WTI, Brent Prices Drop Over 4%; Bakken Differential Widens

West Texas Intermediate crude oil prices fell sharply in Tuesday morning trading, dropping over 4% to trade near $92.61 per barrel. Brent crude, the international benchmark, followed suit, declining 4.29% to $95.91, according to live price data. The Bakken crude differential to WTI widened to -$3.42 per barrel. Natural gas prices showed modest strength, rising $0.05 to $3.07 per MMBtu. The significant drop in crude futures coincides with continued fuel price adjustments in major consuming nations. According to Rigzone, India's state-run fuel retailers raised gasoline and diesel prices for the fourth time in ten days on Monday. The repeated hikes are a direct response to ongoing disruptions in global energy markets, Rigzone reported. Such moves in a large importing nation can signal demand destruction concerns, often putting downward pressure on global crude benchmarks. For Bakken operators, the price drop and a wider local discount present a dual challenge. A WTI...

☀️Morning Wire·May 26

Rig Report

North Dakota Rig Count Holds at 27 Amid High Price Environment

North Dakota's active drilling rig count held steady at 27 on Tuesday, with no changes reported since the previous day, according to live data from Bakken Wire. The current level represents an increase of six rigs from one week ago and four rigs from one month ago. The stability in the drilling fleet comes as the state's oil industry experiences a significant uplift from higher global crude prices. According to a recent state briefing reported by Yahoo News, the price environment has shifted dramatically since early 2026. In January, Continental Resources founder Harold Hamm announced a pause on new drilling due to low prices, marking the first time in 30 years the company wasn't drilling in the state. At that time, West Texas Intermediate (WTI) crude futures were around $60 per barrel. By late May, the landscape had changed. Assistant Director of the Oil and Gas Division Mark Bohrer reported...

☀️Morning Wire·May 26

Daily Activity

DMR Daily Activity Report Shows No New Filings for Monday

The North Dakota Department of Mineral Resources (DMR) published no new activity filings in its daily report for Monday, May 25, 2026, according to the agency's data release. The daily report typically lists new drilling permits approved, wells spudded (drilling commenced), wells completed, and wells plugged. A day with no reported activity is normal in the state's oil and gas sector, often occurring on weekends, holidays, or during administrative lulls. The lack of new filings does not indicate a halt in ongoing operations across the Bakken formation and Williston Basin. Drilling and completion work on previously permitted wells continues, and permit applications submitted to the DMR may still be under review. Operators and service companies monitor the daily reports for the latest regulatory milestones. The next report, expected later today, will detail any filings processed by the DMR on Tuesday.

☀️Morning Wire·May 26

Operator News

Chevron Partners Sign Long-Term Gas Deal for Israeli Power Plants

Chevron's partners in the Leviathan natural gas field offshore Israel have signed a significant, long-term supply contract with Dalia Power Plants, according to a report from Rigzone. The U.S. energy giant is specifically excluded from the 20-year agreement. The contract initially involves supply volumes of up to approximately 1.3 billion cubic meters of gas, Rigzone reported on May 25, 2026. The deal underscores the ongoing global development and commercialization of major gas assets in which large international operators hold stakes. For Bakken-focused operators and mineral owners, news of major international gas contracts serves as a reminder of the global scale of the energy market. Chevron is a major operator in the Williston Basin, holding significant acreage and production in the Bakken formation. However, this specific development is tied to its non-operated, international portfolio. The deal highlights the strategic difference between a company's domestic shale operations and its international conventional projects....

☀️Morning Wire·May 26

Regulatory

European Green Hydrogen Push Advances with German Aid Approval

The European Commission has approved a $1.5 billion German state aid scheme to support green hydrogen production, according to a report from Rigzone. The approval, granted on May 26, 2026, signifies continued European investment in alternative energy sources. The approved aid scheme will support the construction of up to 1,000 MW of installed electrolyzer capacity, Rigzone reported. This infrastructure is aimed at producing up to 10 million tonnes of renewable hydrogen. For Bakken operators, this development underscores the accelerating global push toward energy transition fuels. While the Bakken formation remains a cornerstone of U.S. crude oil production, international policy moves can influence long-term energy investment and market sentiment. Major European economies like Germany are making substantial financial commitments to develop hydrogen infrastructure. Such investments highlight a growing market for low-carbon energy solutions that could eventually compete with or complement traditional hydrocarbon production. The focus on "green" hydrogen, produced using renewable...

☀️Morning Wire·May 26

Global Markets

Chevron Inks Major Gas Deal in Israel's Leviathan Field

Chevron Corporation, a major operator in North Dakota's Bakken formation, is part of a partnership securing a significant long-term natural gas supply deal in Israel, according to industry news service Rigzone. The report states Chevron's partners in the Leviathan gas field have agreed to supply gas to the Dalia Power Plants under a 20-year contract. The contract initially involves supply volumes of up to about 1.3 billion cubic meters, Rigzone reported. The U.S. energy giant itself is notably excluded from this specific supply agreement, though it operates the broader Leviathan project. For Bakken operators and royalty owners, the development underscores the intensely competitive global market for natural gas and liquefied natural gas (LNG). Major integrated companies like Chevron are actively securing long-term offtake agreements for gas resources worldwide to feed growing global demand, particularly from power generation sectors. While the deal does not directly involve Bakken-produced gas, it reflects the...

☀️Morning Wire·May 26

Global Markets

Global Trade Push, Security Concerns Impact Energy Markets

Canada is negotiating a major free trade deal with India focused on energy, agri-food, and technology, according to OilPrice.com. Canadian Prime Minister Mark Carney described the potential Comprehensive Economic Partnership Agreement (CEPA) as a "game changer" for Canadian businesses and workers, aiming to unlock the Indian market. The talks come as Canada seeks to diversify its exports, including energy, away from the United States due to "hostile trade policy" under the Trump Administration. In Europe, German wind turbine maker Nordex is pushing the EU to ban Chinese wind turbines from European grids, OilPrice.com reported. Nordex CEO José Luis Blanco called for a "western-origin principle" for all new wind capacity connecting to European grids, citing concerns over supply chain independence, technology independence, and cybersecurity. The European Commission last month decided that renewable projects using inverters from "high-risk countries" like China would no longer receive EU funding. Fresh U.S. strikes on Iranian...

☀️Morning Wire·May 26

Operator News

Santos Prioritizes Oil, LNG Growth in Alaska, Australia, Papua New Guinea

Australian energy giant Santos announced Tuesday it is prioritizing growth in crude oil and natural gas production across three regions, including Alaska, according to a Reuters report carried by OilPrice.com. The company's strategic review of its Australian domestic business comes amid "unprecedented market volatility and a changing policy landscape," CEO Kevin Gallagher said. In Alaska, Santos recently started oil production from the Pikka field. The project is expected to ramp up to 20,000 barrels per day gross over the next few weeks before reaching a planned plateau of 80,000 bpd gross in the third quarter, OilPrice.com reported. Santos operates the Pikka Unit with a 51% stake. The company also gave the green light this month to a natural gas project expansion in Papua New Guinea. Santos will invest about $160 million net in a brownfield project linking the Agogo Production Facility to the existing PNG LNG gas pipeline. Gross capital...

☀️Morning Wire·May 26

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Drop Over 2% Amid Iran Deal Whiplash, Bakken Differential Widens

Front-month oil prices fell sharply in midday trading Tuesday, with both major benchmarks shedding more than 2% as markets digested whipsawing news on the U.S.-Iran conflict. West Texas Intermediate (WTI) crude was trading at $93.93 per barrel, down $2.67 or 2.76%, while Brent crude fell $3.02 to $97.19 per barrel, according to live price data. The price plunge follows a day of extreme volatility. On Monday, oil prices fell 6% on media speculation of a possible U.S.-Iran framework deal, only to rebound toward $100 per barrel after fresh U.S. strikes on southern Iran, according to a report from OilPrice.com. The conflicting signals continued Tuesday, creating market chaos as hopes for a ceasefire were sapped by tit-for-tat military actions. For Bakken producers, the price drop is compounded by a widening regional discount. The Bakken differential to WTI was reported at -$3.42 per barrel, meaning Bakken crude is priced even lower than...

🔆Midday Wire·May 26

Regulatory

European Green Hydrogen Push Gains Momentum with German Aid Approval

The European Commission has approved a $1.5 billion German state aid scheme to support green hydrogen production, according to a report from Rigzone. The approval, published on May 26, 2026, underscores the European Union's continued policy commitment to developing alternative energy sources. The approved scheme will support the construction of up to 1,000 MW of installed electrolyzer capacity and the production of up to 10 million tonnes of renewable hydrogen, Rigzone reported. This large-scale investment is part of a broader European strategy to decarbonize industrial and energy sectors. For Bakken operators, developments in the global hydrogen market represent a long-term strategic consideration. While the immediate impact on North Dakota crude oil demand is negligible, such policies reinforce a sustained international push towards lower-carbon energy systems. The Bakken formation, as a major oil-producing region, operates within this evolving global energy landscape. Major investments in hydrogen, particularly in key export markets like...

🔆Midday Wire·May 26

Global Markets

Sanctions Loopholes, Japanese Stakes in Russia Keep Global Gas Flows Unpredictable

A UK-sanctioned Russian LNG tanker recently stopped at a Norwegian port, highlighting ongoing challenges in enforcing energy sanctions, according to a report from OilPrice.com. The vessel, Clean Ocean, made a 12-hour stop off Honningsvåg a week ago, ship tracking data showed. This incident raises questions about the effectiveness of Western sanctions designed to curb Russian fossil fuel exports, which can influence global gas supply and pricing dynamics relevant to North Dakota's energy sector. “If a ship sanctioned by Britain can still appear to receive logistical support off Norway, then serious questions need to be asked about whether sanctions are being treated with the seriousness they deserve,” sanctions campaigner Sebastian Rötters told High North News. The EU has sanctioned LNG carriers and the Arctic LNG 2 project, but Russia continues using such vessels to move gas from Arctic projects. The EU also boosted imports of Russian LNG from the unsanctioned Yamal...

🔆Midday Wire·May 26

Global Markets

Global Roundup: BP Chair Ousted, ND Wells Hit Record Amid War Impact

The chair of BP has been fired after less than a year following "serious concerns" about his conduct, according to OilPrice.com. Albert Manifold was stripped of his roles as chair and director after the board unearthed several cases of serious misconduct, including reports of a "volcanic" temper, verbal abuse, and bullying. Director Amanda Blanc stated the board learned of "governance oversight and conduct issues it deems unacceptable." Shares in BP fell more than eight percent on the news. This extends a period of turmoil at the company, which pushed out its previous chair Helge Lund just 10 months ago. While BP faces internal instability, North Dakota's oil industry is experiencing operational growth driven by geopolitical events. According to Bing News, North Dakota produced 35.4 million barrels in March, or 1.142 million barrels per day, a near 1% increase from February. A key distinction is that the number of producing wells...

🔆Midday Wire·May 26

Operator News

BP Chair Ousted, CCUS Funding Rises, Texas Employment Up

BP Plc has fired its chairman, Albert Manifold, just months after he assumed the role, according to a report from Rigzone. The company cited conduct and governance issues for the abrupt dismissal. While BP is not a major Bakken operator, high-level instability at a global supermajor can signal broader governance scrutiny across the oil and gas sector. In carbon capture news, a joint venture between Italy's Eni and BlackRock's Global Infrastructure Partners (GIP) has secured EUR 500 million (approximately $582 million) in new financing. Rigzone reported the funds are intended to support ongoing and additional carbon capture, utilization and storage (CCUS) projects. For the Bakken, where operators are under pressure to reduce emissions, the scale of this investment highlights the growing financial muscle behind CCUS technology, which could influence future project development in the region. Separately, upstream oil and gas employment in Texas rose in April, according to data from...

🔆Midday Wire·May 26

Pipeline & Infrastructure

Global Energy Roundup: CCS Milestone, Oil Outlook, Norway Gas Dip

Santos announced its Moomba Carbon Capture and Storage (CCS) project in South Australia has permanently sequestered 2 million metric tons of carbon dioxide equivalent in over 18 months, according to Rigzone. The company equated the reduction to taking 826,000 cars off the road. For Bakken operators, this milestone highlights the advancing scale of CCS technology, a potential pathway for managing emissions from oil production as environmental regulations evolve. Separately, analysts are noting conflicting pressures on the oil market. Rigzone reported that Naeem Aslam, CIO at Zaye Capital Markets, outlined that the firm sees oil being pulled in two directions. While specific forces were not detailed, such analyst sentiment underscores the volatile macroeconomic landscape that directly influences crude prices and, consequently, drilling budgets and cash flows for Williston Basin producers. In European supply news, Norway's natural gas output declined for a fourth consecutive month, Rigzone reported. Preliminary official figures showed April...

🔆Midday Wire·May 26

Regulatory

Iran Talks, Alaska Revival Shape National Oil Landscape

President Donald Trump signaled that negotiations with Iran over an interim deal to extend their ceasefire and reopen the Strait of Hormuz were "proceeding nicely," according to a report from Rigzone on Tuesday, May 26. While the talks are a geopolitical development distant from North Dakota, the potential reopening of a critical global oil shipping lane could influence international crude supply and pricing benchmarks that affect Bakken producers. Separately, a resurgence of oil industry interest in Alaska is sparking a new energy rush into the Arctic, Rigzone reported on Monday, May 25. This revival represents a shift in capital and operational focus toward another major U.S. oil-producing region, potentially altering the competitive landscape for investment and federal policy attention. For Bakken operators and royalty owners, these national developments frame a broader energy market context. The Iran negotiations, if successful, could ease tensions in a region responsible for a significant portion...

🔆Midday Wire·May 26

Production Data

Bakken Rig Count Stalls at 27 Amid Price Retreat

The number of active drilling rigs in North Dakota held steady at 27 on Tuesday, May 26, 2026, a level signaling continued conservative capital deployment by Bakken operators. The static rig count coincides with a sharp midday retreat in oil prices, with West Texas Intermediate (WTI) crude trading at $93.93, down $2.67 or 2.76% from its previous settlement. The current rig count remains near the lower end of historical activity for the Bakken formation, North Dakota's primary oil-producing region. Brent crude also fell sharply, trading at $97.19, down $3.02 or 3.01%. Bakken crude traded at a discount of $3.42 to the WTI benchmark. Historically, the rig count serves as a leading indicator for future production trends. A sustained low count suggests operators are not significantly expanding their drilling programs, which typically leads to a plateau or gradual decline in output after a lag of several months. The current count of...

🔆Midday Wire·May 26

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Plunge Over 3%, Bakken Differential Widens

Front-month WTI crude oil prices fell sharply Tuesday, dropping $2.98 to settle at $93.62 per barrel, a decline of 3.08%. The global benchmark Brent crude followed suit, falling $3.58 to $96.63, down 3.57%. The price drop widened the discount for Bakken crude at the wellhead, with the differential to WTI standing at -$3.42 Tuesday afternoon, according to live price data. While oil prices retreated, natural gas markets showed relative stability. The benchmark price was $3 per MMBtu, down just $0.02 from prior settlement. However, underlying market dynamics were more volatile. According to a report from OilPrice.com, U.S. natural gas prices surged during Tuesday's session, with the Henry Hub spot price jumping 5.1% to trade at $3.06/MMBtu. The report attributed the intraday strength to a combination of declining domestic output and an improving demand outlook. OilPrice.com reported that average gas output in the U.S. Lower 48 states slipped to 109.2 billion...

🌅Afternoon Wire·May 26

Rig Report

Bakken Rig Count Holds Steady at 27 Amid Daily Turnover

The number of active drilling rigs in North Dakota's Bakken formation held at 27 on Tuesday, May 26, unchanged from the prior day's total despite daily additions and subtractions, according to live rig data. One new rig commenced operations, one was released, and one was moved to a new location. The net stable count follows a significant recent uptick in activity. The current level of 27 rigs is up by six from one week ago, when 21 rigs were active on May 19, and is up by four from the 23 rigs working one month ago on April 26. The new rig addition was by Devon Energy Williston, L.L.C., which spud the NABORS B6 rig at a location in Williams County (154-102-3). The rig removed from service was Hess Bakken Investments II, LLC's NABORS X-10, which had been working at a Williams County site (153-98-22). In the day's other activity,...

🌅Afternoon Wire·May 26

Regulatory

European Green Hydrogen Push Gains Momentum with German State Aid Approval

The European Commission has approved a $1.5 billion German state aid scheme to support green hydrogen production, according to a report from Rigzone. The approval, granted on May 26, 2026, underscores continued policy momentum in Europe toward alternative energy sources. The approved scheme is designed to support the construction of up to 1,000 MW of installed electrolyzer capacity, Rigzone reported. The aid will also target the production of up to 10 million tonnes of renewable hydrogen. While the development is geographically distant, it represents a broader global policy trend favoring investment in low-carbon energy technologies. For Bakken operators, such moves in major economies signal long-term competitive pressures on the demand for fossil fuels, particularly in export markets. Europe is a key destination for global energy commodities, and its strategic push into hydrogen could eventually influence long-term demand forecasts for oil and gas. The regulatory approval in Europe also highlights the...

🌅Afternoon Wire·May 26

Global Markets

NATO Warns of Russian Energy Grid Attacks, Highlighting Global Risks to Oil Markets

NATO security officials warn that Russia is actively targeting Europe's critical energy infrastructure in a hybrid war, posing significant risks to global energy markets and, by extension, North Dakota's Bakken oil producers. A senior source closely linked to the European Union's energy security complex stated that the West is in the "final phase" of a long-standing conflict with Russia, which is now testing Western resolve through attacks on energy assets, according to a report from OilPrice.com. The source detailed that Russia is expected to launch more hybrid and direct physical attacks, primarily against gas infrastructure, electricity cables, offshore networks, and control systems. "The full array of these measures has already been used by Russia in Ukraine, so they’re ready to roll out whenever Putin wants," the source told OilPrice.com. This escalation follows a pattern of aggression dating back to a 2007 cyber-attack on Estonia, the source added. Specific incidents underscore...

🌅Afternoon Wire·May 26

Global Markets

Global CCS Push, Hormuz Crisis, Ukraine Storage Move Impact Energy Markets

Germany has launched a €5 billion Carbon Contracts for Difference (CCfD) scheme to support carbon capture and utilization (CCU) projects, marking a major shift in industrial decarbonization policy, according to OilPrice.com. The new framework, alongside Denmark's recent CCS tender, signals carbon capture moving from climate theory into industrial policy across Europe. The scheme aims to reduce investment risk for capital-intensive industrial decarbonization projects by compensating industries for the additional costs of low-carbon production. Asian nations, particularly India, are scrambling for new oil supplies as the extended closure of the Strait of Hormuz blocks approximately one-fifth of the world's crude trade, OilPrice.com reported. India's crude imports through the waterway historically accounted for 40% of its supplies. The closure has caused energy prices and inflation to soar in India, with foreign investors pulling over $20 billion from Indian equities in the first four months of the year. In response, India has strengthened...

🌅Afternoon Wire·May 26

Pipeline & Infrastructure

Texas Employment Up; CCS Project Scales; Oil Market Faces Crosscurrents

Texas upstream employment increased in April, according to the Texas Independent Producers and Royalty Owners Association (TIPRO). The report, published by Rigzone, signals continued labor demand in a key U.S. oil-producing state. For Bakken operators, this underscores a broader national industry trend of steady operational activity, even as North Dakota's own employment figures remain influenced by local rig counts and production levels. Separately, the Moomba Carbon Capture and Storage project onshore South Australia has permanently sequestered 2 million metric tons of carbon dioxide equivalent in over 18 months, Rigzone reported, citing operator Santos. The project's scale, equated to taking 826,000 cars off the road, highlights the advancing global deployment of CCS technology. For the Bakken, where emissions reduction and potential CCS applications are a growing focus for operators and regulators, the Moomba project demonstrates the tangible volume reductions achievable at commercial scale. Market analysts see oil prices being pulled in...

🌅Afternoon Wire·May 26

Regulatory

Global Developments Impact Bakken Market Dynamics

Norwegian natural gas production fell for the fourth consecutive month in April, according to preliminary official figures reported by Rigzone. The country produced about 12 billion cubic feet per day, a decrease from both the previous month and the previous year. This ongoing decline in supply from a major global exporter could support international natural gas prices, indirectly affecting the economics of associated gas production in the Bakken formation. Separately, geopolitical developments could influence global oil markets. Rigzone reported that U.S. President Trump stated negotiations with Iran over an interim deal to extend a ceasefire and reopen the Strait of Hormuz were "proceeding nicely." Any resolution that secures the vital shipping lane and reduces Middle Eastern tension could stabilize global crude supply, potentially moderating price volatility that impacts Bakken operators' revenue. Finally, a resurgence of oil industry interest is occurring in Alaska, according to a Rigzone report. This new energy...

🌅Afternoon Wire·May 26