Wednesday, May 27, 2026

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Oil Prices

Oil Prices Drop Over 3% on Renewed Iran Deal Hopes

Crude oil prices fell sharply in Wednesday morning trading, pressured by renewed market speculation that the United States and Iran could be nearing a diplomatic deal. The U.S. benchmark, West Texas Intermediate (WTI), traded at $90.66 per barrel, down $3.23 or 3.44%, according to live price data. The international benchmark, Brent Crude, was at $94.28, down $2.39 or 2.47%. The price decline comes despite the continued closure of the critical Strait of Hormuz, a chokepoint for Middle Eastern oil shipments. According to a report from OilPrice.com, traders are betting on a potential framework agreement that would extend a ceasefire by 60 days and allow further negotiations on reopening the strait and Iran's nuclear program. "Prices are under pressure from improved sentiment around a potential US-Iran deal, even as hostilities continue and the Strait of Hormuz remains effectively closed," ING commodities strategists noted. This optimism has repeatedly overshadowed market fundamentals in...

☀️Morning Wire·May 27

Rig Report

North Dakota Rig Count Holds at 27 Amid Multi-Month Uplift

North Dakota's active drilling rig count held at 27 on Wednesday, May 27, 2026, unchanged from the previous day, according to live data from Bakken Wire. No new rigs were added, none were released, and no rigs were reported as having moved locations. The current count reflects a sustained period of modest growth in drilling activity across the Bakken formation. Compared to one week ago, on May 20, 2026, the rig count is up by two units. The longer-term trend shows a more significant increase, with four more rigs active now than were operating one month ago on April 27, 2026. A stable or gently rising rig count is a key indicator of operator confidence and capital expenditure in the basin. The current level of 27 rigs suggests a measured pace of development, focused on core acreage and high-productivity wells. Each active rig represents ongoing work for oilfield service companies...

☀️Morning Wire·May 27

Daily Activity

Phoenix Operating Leads Daily Permits with Four-Well Ranch Creek Pad

The North Dakota Department of Mineral Resources approved five new drilling permits on Tuesday, May 26, 2026, according to the agency's daily activity report. Phoenix Operating LLC was the most active applicant, securing four permits for a single pad location in McKenzie County. All four Phoenix Operating permits are for the MORRIS pad in the Ranch Creek field, located in SE SW of Section 11-146N-99W. The approved wells are the MORRIS 11-2-35-26 1H, 2H, 3H, and 4H. This batch of permits signals continued development in the core Bakken area of McKenzie County. The fifth permit issued Tuesday was to Hunt Oil Company for the PALERMO 156-90-24-25H-4 well, according to the report. This well is located in Mountrail County at SW SE of Section 13-156N-90W. The filing did not specify a field name for this location. In a separate category for confidential status changes, Enerplus Resources USA Corporation reported activity on...

☀️Morning Wire·May 27

Global Markets

Global Energy Shifts Pose Opportunities, Challenges for Bakken

A technological breakthrough in the Permian Basin could have significant implications for North Dakota's oil industry by turning a major waste stream into a valuable commodity. According to OilPrice.com, Permian innovator LibertyStream is now commercially producing lithium carbonate by extracting it from produced oilfield water at a site in Texas. The company's system, installed at a Select Water Solutions facility in Howard County, processes the mineral-rich wastewater that accompanies crude production. For the Bakken, which also handles massive volumes of produced water, this demonstrates a potential new revenue stream that leverages existing infrastructure. The demand driver for this lithium is shifting rapidly. OilPrice.com reports that lithium demand from Battery Energy Storage Systems (BESS) surged 51% last year, nearly double the growth rate of EV-related demand. This is fueled by hyperscalers like Amazon, Google, Microsoft, and Meta building power-hungry data centers for AI, making reliable electricity storage mission-critical. A domestic lithium...

☀️Morning Wire·May 27

Global Markets

Global Energy Shifts: Hormuz Tensions, UK Price Spike, Petrofac Sale

Emirati energy giant ADNOC has sent a second LNG carrier through the Strait of Hormuz operating in "dark mode," according to OilPrice.com, citing Bloomberg. The vessel, the Umm Al Ashtan, loaded at the Das Island LNG terminal with its geolocation signals switched off and is sailing to India. This follows a report earlier this week that ADNOC has been using its own fleet to ship oil and gas through the strategic chokepoint using the same covert method. The news service reported that ADNOC has sent three other tankers via the Strait in dark mode. The activity adds to growing traffic through Hormuz after Iran proposed individual deals for safe passage. Two other LNG carriers passed through earlier this week bound for Pakistan and China, and a very large crude carrier also cleared the Strait en route to China, OilPrice.com reported. ADNOC, among the hardest hit by the Strait's closure, is...

☀️Morning Wire·May 27

Operator News

Rystad: AI, Digitalization a $500B Upstream Opportunity

Digitalization and Artificial Intelligence in upstream oil and gas represent a $500 billion opportunity, according to analysis from Rystad Energy reported by Rigzone. The firm's description of the massive potential for efficiency gains underscores a key industry trend as operators seek to optimize production and reduce costs. In other global operator news, Eni and its partners have approved Phase 3 of the Baleine project offshore Côte d'Ivoire, Rigzone reported. The phase, targeting a field discovered about five years ago, aims to increase oil production from 60,000 to 150,000 barrels per day and boost natural gas output from 80 to 200 million cubic feet per day. Separately, Saudi Aramco has exited a Malaysian refining and petrochemical complex. In response, Malaysia's state-owned Petronas stated that "recent developments in global energy markets have underscored the importance of operational agility for energy infrastructure of strategic national significance," according to Rigzone. For Bakken formation operators...

☀️Morning Wire·May 27

Pipeline & Infrastructure

BLM Sale Nets $4B, BP Chair Ousted, Eni JV Secures Funding

The U.S. Department of the Interior generated over $4 billion in total receipts from a Bureau of Land Management oil and gas lease sale in New Mexico and Texas, according to Rigzone. The sale, announced on May 26, 2026, signals continued federal leasing activity and high industry interest in productive basins, a market dynamic that also underpins development in North Dakota's Bakken formation. In a separate corporate governance development, BP Plc unexpectedly fired its Chairman, Albert Manifold, just months into the job, Rigzone reported. The move, attributed to conduct and governance issues, highlights the heightened scrutiny on leadership within major energy firms. Such instability at a global operator can influence investor sentiment and strategic direction across the sector, including for Bakken-focused partners and competitors. Meanwhile, the carbon capture, utilization and storage (CCUS) joint venture between Eni and BlackRock's Global Infrastructure Partners (GIP) secured EUR 500 million (approximately $582 million) in...

☀️Morning Wire·May 27

Production Data

Bakken Rig Count Stalls at 27 Amid Sharp Oil Price Decline

North Dakota's oil drilling activity remained flat Wednesday, with the state's active rig count holding at 27, according to Bakken Wire live data. The static rig count coincides with a significant drop in benchmark oil prices, with West Texas Intermediate (WTI) crude falling $3.23 to settle at $90.66 per barrel. The Bakken formation's crude price differential widened to a discount of $3.42 below WTI. The international benchmark Brent crude also declined, trading at $94.28. Natural gas prices were reported at $3.06. The current rig count of 27 provides a concrete indicator of near-term drilling activity in the Williston Basin. Historically, the number of active drilling rigs is a leading indicator for future oil production levels, as new wells take months to drill, complete, and tie into production infrastructure. A sustained low rig count typically precedes a plateau or decline in overall output. For Bakken operators, the combination of a stalled...

☀️Morning Wire·May 27

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Plunge Amid Supply Concerns, Bakken Differential Widens

Oil prices fell sharply on Wednesday, with West Texas Intermediate (WTI) crude dropping $3.66 to settle at $90.23 per barrel, a decline of 3.9%, according to live price data. Brent crude also fell $3.01 to $93.66. The negative price move for Bakken crude was amplified, with the Bakken differential widening to -$3.42 versus WTI. The decline in crude prices contrasts with a gain in natural gas, which rose $0.11 to $3.12. The price drop follows a period of elevated prices driven by Middle East conflict and supply disruptions. One factor potentially tempering the crude price fall is an expected drawdown in U.S. inventories. According to Rigzone, Macquarie strategists are forecasting that U.S. crude inventories will be down for the week ending May 22. A reduction in stocks typically provides support to prices. Global commodity markets are facing complex supply shocks beyond oil. According to a report from OilPrice.com, aluminum prices...

🔆Midday Wire·May 27

Regulatory

Texas Oil Regulator Defeated by GOP Challenger in Runoff Vote

Bo French defeated incumbent Texas Railroad Commissioner Jim Wright in a Republican runoff election for a seat on the state's chief oil and gas regulatory body, according to Rigzone. The election was held on Tuesday, May 26, 2026, with results reported Wednesday. The Texas Railroad Commission regulates the state's massive oil and gas industry, including the prolific Permian Basin. While the commission's direct authority does not extend to North Dakota, its policies set a significant benchmark for onshore U.S. oil production and can influence national regulatory discussions. A change in leadership on the commission could signal a shift in regulatory philosophy. Bakken Wire analysis suggests a more hardline conservative approach under a new commissioner may affect the broader regulatory environment. Operators in the Bakken formation compete directly with Permian producers for capital, pipeline space, and market share. Stricter or more industry-friendly regulations in Texas can impact overall U.S. production levels...

🔆Midday Wire·May 27

Global Markets

Global Supply Shocks in Aluminum, Diesel Pressure Bakken Costs

A historic supply crunch in the global aluminum market and a pending Russian ban on diesel exports are creating new cost and market pressures for North Dakota's Bakken shale operators, according to industry reports. The dual disruptions, stemming from geopolitical conflicts, threaten to increase expenses for essential materials and could influence global fuel benchmarks. The aluminum market is facing a "serious and prolonged supply outage" due to the war in Iran and the effective closure of the Strait of Hormuz, OilPrice.com reported Wednesday. The Middle East accounts for about 9% of global aluminum supply, a key export hub now crippled by the conflict. Gulf Cooperation Council countries produce roughly 6 million tonnes per year, with most exports flowing through the strait. Critical damage has been sustained: the Al Taweelah plant in the UAE and Aluminium Bahrain, the largest production plant outside China, were damaged in missile strikes. Repair for Al...

🔆Midday Wire·May 27

Global Markets

Standing Rock #NoDAPL 10-Year Event Announced; Global Shipping, Services Firms See Q1 Shifts

A three-day event commemorating the 10th anniversary of the Dakota Access Pipeline protests is scheduled for September 16-18 near Cannonball, North Dakota. According to a report from KFGO, the "People of the Sun" gathering will feature music, speakers, and discussions on environmental and Indigenous issues. The event is organized by Indigenized Energy, a Native American-led nonprofit solar energy company founded after the 2016 protests. Organizers said actors Mark Ruffalo and Shailene Woodley, musician Taboo of the Black Eyed Peas, and the band Mumford and Sons will participate. Indigenized Energy founder Cody Two Bears stated the event aims to celebrate work stemming from the NoDAPL movement and focus on future energy sovereignty efforts. The conference will include awards for tribal clean energy leadership and showcase solar projects at Standing Rock tied to buffalo processing and herd management. In global energy markets, shipping firm Hafnia posted a higher profit for the first...

🔆Midday Wire·May 27

Operator News

Petrofac Emirates Sold, Rystad Touts $500B Digital Prize, Aramco Exits Malaysia

Petrofac has completed the sale of its core engineering and construction business in the United Arab Emirates to a financial consortium, according to Rigzone. The company, which has been under administration since 2025, divested the unit to a group led by Mason and Pearlstone Alternative. The move is part of the ongoing restructuring of a major international service provider. Separately, analysts at Rystad Energy described digitalization and Artificial Intelligence in upstream oil and gas as "a $500 billion opportunity," Rigzone reported. The firm's assessment highlights the massive potential value in deploying advanced technologies to improve efficiency and reduce costs in exploration and production. In another international development, Saudi Aramco has exited a refining and petrochemical complex in Malaysia. Malaysia's state-owned Petronas commented on the move, stating that "recent developments in global energy markets have underscored the importance of operational agility for energy infrastructure of strategic national significance," as reported by...

🔆Midday Wire·May 27

Pipeline & Infrastructure

Global Oil Projects Advance as Geopolitical Tension Lifts Prices

Global oil developments are providing a mixed outlook for North Dakota's Bakken formation, with a major project expansion approved overseas and geopolitical tensions lifting benchmark crude prices. Italian energy major Eni and its partners have sanctioned the third phase of the Baleine field development offshore Côte d'Ivoire, according to Rigzone. The project, discovered roughly five years ago, is set to significantly boost output. Phase 3 will increase the field's oil production capacity from 60,000 to 150,000 barrels per day and raise natural gas output from 80 to 200 million cubic feet per day. Separately, international crude benchmarks gained ground following renewed geopolitical friction. Brent crude oil prices jumped on Tuesday after renewed clashes between the U.S. and Iran clouded hopes for a deal regarding the Strait of Hormuz, Rigzone reported. The critical Middle Eastern waterway is a major chokepoint for global seaborne oil trade. For Bakken operators and royalty owners,...

🔆Midday Wire·May 27

Production Data

Bakken Rig Count Steady at 27 Amid Sharp Price Drop

North Dakota's active rig count held steady at 27 Wednesday, suggesting a continued focus on maintaining production levels in the Bakken formation even as crude oil prices fell sharply. The midday price data showed WTI crude trading at $90.23, down $3.66 or 3.9% from its previous settlement, while Brent crude was at $93.66, down $3.01. The current rig count serves as a key indicator of near-term drilling activity and future production. Historically, the number of active drilling rigs in North Dakota has a direct correlation with subsequent oil output, as new wells are brought online. A stable rig count in the face of a price drop may indicate operators are committed to executing existing drilling plans or are focusing on the most productive core areas of the Bakken. The Bakken price differential—the discount for Bakken crude compared to the WTI benchmark—was -$3.42 Wednesday. This differential affects the net revenue realized...

🔆Midday Wire·May 27

Workforce & Community

Low Rig Count, Falling Prices Challenge Bakken Workforce Stability

The active drilling rig count in North Dakota held at 27 on Wednesday, a level indicative of restrained industry activity that continues to pressure employment and local economies in the Bakken formation. The figure, a key barometer for oilfield job demand, remains near historic lows for the modern shale era, according to Bakken Wire data. Concurrently, oil prices sold off sharply. West Texas Intermediate (WTI) crude was trading at $90.23 per barrel, down $3.66 or 3.9% for the day. The international Brent crude benchmark fell to $93.66. The price for Bakken crude at the wellhead is typically discounted against WTI; the differential was reported at -$3.42 per barrel. The combination of a low rig count and volatile prices directly impacts the oil-dependent workforce. Fewer rigs mean reduced demand for drilling crews, field service technicians, and logistical support personnel. This stagnation in activity levels limits job growth and can lead to...

🔆Midday Wire·May 27

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Plunge Over 4%, Bakken Differential Narrows

Front-month crude oil futures posted steep losses in Wednesday trading, with the U.S. benchmark falling nearly 5% to trade near $89 per barrel. The sell-off pressured Bakken crude prices, though the regional discount to the national benchmark narrowed slightly. As of the afternoon of Wednesday, May 27, 2026, West Texas Intermediate (WTI) crude traded at $89.44 per barrel, a drop of $4.45 or 4.74% for the session. The international benchmark Brent crude traded at $92.93, down $3.74 or 3.87%. The Bakken crude differential, representing the price adjustment for oil produced in the North Dakota region, was quoted at a discount of $3.42 per barrel versus WTI. This is a narrower discount than has been seen in recent weeks, potentially softening the impact of the broader price drop for local producers. In contrast to crude, natural gas prices saw modest gains. The front-month contract traded at $3.09 per MMBtu, an increase...

🌅Afternoon Wire·May 27

Rig Report

Bakken Rig Count Holds at 27 as Operator Activity Shifts

North Dakota's active drilling rig count remained at 27 on Wednesday, May 27, 2026, following a day of offsetting activity in the core of the Bakken play. According to live rig data, one new rig began operations while another was released. Burlington Resources Oil & Gas Company LP added the rig NOBLE 6 in McKenzie County at location 151-96-7. Concurrently, Hess Bakken Investments II, LLC released the rig ENSIGN 532 from location 149-100-33, also in McKenzie County. No rigs were reported to have moved locations. The stable daily count continues a recent upward trend for drilling activity in the state. The current count of 27 rigs represents an increase of two rigs from one week prior, on May 20, 2026, when 25 rigs were active. Compared to one month ago, on April 27, 2026, the state's active fleet has grown by four rigs from a base of 23. McKenzie County,...

🌅Afternoon Wire·May 27

Regulatory

Texas Oil Regulator Defeated in GOP Runoff by Hardline Challenger

Bo French defeated incumbent Texas Railroad Commissioner Jim Wright in a Republican primary runoff election on Tuesday, according to a report from Rigzone. French will now be the GOP nominee for a seat on the three-member Texas Railroad Commission (RRC), the state's chief oil and gas regulator. The RRC oversees the Permian Basin, the nation's most prolific oil-producing region and a key competitor to North Dakota's Bakken formation. Regulatory philosophy on the commission can influence nationwide industry standards and investment flows. While the election is for a Texas-specific role, changes in leadership at major state regulatory bodies are closely watched by operators across the country. A shift toward a more industry-aligned commissioner could be viewed as a positive signal for operational flexibility and a less adversarial regulatory approach. For Bakken operators and service companies, a perceived pro-industry tilt in Texas may influence competitive dynamics for capital and equipment. Investors often...

🌅Afternoon Wire·May 27

Global Markets

Global Disruptions Boost Demand for U.S. LNG, Including Bakken Gas

The closure of the Strait of Hormuz and damage to Qatar's LNG facilities is accelerating long-term U.S. liquefied natural gas supply talks with Asian buyers, according to OilPrice.com. Thailand, Southeast Asia's top LNG importer, is now looking to boost its U.S. gas supply to meet long-term demand. Discussions about long-term U.S. LNG supply to Thailand have accelerated since the Iran war disrupted Qatar’s shipments, sources told Reuters. These talks are centered on potential long-term deals between Venture Global and Thai energy company PTT. Typically, such deals cover at least 15 years of supply at set annual volumes. Thailand had already committed to buy U.S. energy products, including LNG, crude oil, and ethane, under a reciprocal trade framework agreed in October 2025, with an estimated value of $5.4 billion per year. For Bakken operators, this represents a strengthening global outlet for natural gas. North Dakota's gas production, often seen as a...

🌅Afternoon Wire·May 27

Global Markets

Global Energy Shifts Highlight Steel, Solar Trends Relevant to Bakken

A major mining firm's decision to cancel a key low-emissions project highlights the shifting pressures on global steelmaking, a sector relevant to Bakken oilfield infrastructure and pipeline development. According to a report from OilPrice.com, BHP shelved plans in mid-2025 for a beneficiation plant in Australia that would have upgraded its iron ore for cleaner steel production. Internal documents cited "marginal economics" for the cancellation, which occurred before China expanded its emissions trading scheme to cover steel and the EU's carbon border mechanism took full effect. Instead, BHP purchased 62 new diesel trucks for its operations, locking in fossil fuel use for decades. Meanwhile, advancements in renewable technology could influence long-term energy planning. A new study from Taiwan's National Taipei University of Technology found that offshore floating solar panels can be 12% more efficient than land-based systems due to seawater's cooling effect, OilPrice.com reported. The research, published this month, suggests such...

🌅Afternoon Wire·May 27

Operator News

Oil Price Drop, Hafnia Profit, Noble Board Change Mark Wednesday

Oil futures plunged Wednesday, settling below $89, as traders bet on a possible U.S.-Iran peace deal, according to Rigzone. The price drop introduces immediate headwinds for Bakken producers, whose margins are directly tied to the global benchmark. In corporate news, shipping company Hafnia posted a higher profit for the first quarter, Rigzone reported. However, the company cautioned that "the outlook remains highly uncertain and depends largely on the duration of the disruption to traffic through the Strait of Hormuz and the time required for oil production and global refinery operations to recover." Ongoing geopolitical tensions affecting key shipping lanes continue to inject volatility into the global oil market, which indirectly impacts Bakken crude pricing and export logistics. Separately, Noble appointed Halliburton's CEO, Jeff, to its Board of Directors, Rigzone reported. "I am delighted to welcome Jeff to Noble's Board of Directors," Noble Chairman Charles M. Sledge said in the report....

🌅Afternoon Wire·May 27

Pipeline & Infrastructure

Global Energy Deals, AI Focus Highlight Market Shifts

Petrofac has completed the sale of its core engineering and construction business in the United Arab Emirates to a consortium led by Mason and Pearlstone Alternative, according to Rigzone. The company had been under administration since 2025. The divestment is part of broader industry restructuring as companies optimize portfolios. In a separate development, Saudi Aramco has exited a Malaysian refining and petrochemical complex. Malaysia's state-owned Petronas commented on the move, stating that "recent developments in global energy markets have underscored the importance of operational agility for energy infrastructure of strategic national significance," Rigzone reported. This shift by a major national oil company highlights a continued global focus on portfolio rationalization. For Bakken operators, these international moves underscore a market environment where capital discipline and strategic focus on core assets remain paramount. While not directly involving Williston Basin infrastructure, the deals reflect the same financial pressures and strategic calculations that influence...

🌅Afternoon Wire·May 27

Regulatory

Global Project Approvals Highlight Competitive Landscape for Bakken

Italian energy major Eni and its partners have approved Phase 3 of the Baleine field development offshore Côte d'Ivoire, according to a report from Rigzone. The project, discovered approximately five years ago, is set to significantly boost output. The development phase will increase the field's oil production capacity from 60,000 to 150,000 barrels per day, Rigzone reported. Natural gas output is also planned to rise from 80 million to 200 million cubic feet per day. For Bakken operators and service companies, news of major international project sanctions serves as a reminder of the global competition for capital investment. While the Williston Basin is a mature, onshore play with established infrastructure, large-scale deepwater projects like Baleine represent alternative destinations for major energy companies' development budgets. The approval demonstrates continued long-term investment in oil and gas production outside of North America. The Bakken formation remains a critical component of U.S. domestic supply,...

🌅Afternoon Wire·May 27