Thursday, May 28, 2026

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Oil Prices

Oil Prices Surge Over $2, Gains Exceed 3%

Oil prices posted strong gains in early trading Thursday, with both major benchmarks rising more than three percent. West Texas Intermediate (WTI) crude settled at $91.46 per barrel, up $2.78. Brent crude climbed to $95.05, a gain of $2.80. The rally was supported by expectations of tightening U.S. supplies. According to a report from Rigzone, Macquarie strategists are forecasting a week-on-week draw in U.S. crude inventories for the week ending May 22. An anticipated decline in stockpiles typically signals stronger demand or lower supply, putting upward pressure on prices. For Bakken producers, the price surge directly improves cash flow and wellhead revenue. The Bakken differential, the discount at which Bakken crude trades versus the WTI benchmark, was recorded at -$3.42. This means Bakken crude is priced at approximately $88.04 per barrel. While operators sell at a discount to WTI to account for transportation costs, the sharp rise in the underlying...

☀️Morning Wire·May 28

Rig Report

North Dakota Rig Count Holds at 27 for Second Day

The number of active drilling rigs in North Dakota remained unchanged at 27 on Thursday, May 28, according to live rig data from Bakken Wire. The count showed no day-over-day movement, with no new rigs added, removed, or relocated since Wednesday. The current figure represents a slight increase from activity levels seen earlier in the month. One week ago, on May 21, the state reported 25 active rigs, meaning the count has risen by two rigs over the past seven days. The broader trend shows a more significant build in drilling activity over the past month. On April 28, North Dakota's active rig count stood at 22. The current tally of 27 rigs marks an increase of five units over that four-week period, indicating a steady climb in operational tempo within the Williston Basin. A stable or rising rig count is a key leading indicator for future oil production in...

☀️Morning Wire·May 28

Daily Activity

Hess, Devon Secure New Permits; 5 Renewals Filed in Burke County

The North Dakota Department of Mineral Resources approved three new drilling permits in its latest daily activity report, with Hess Bakken Investments II and Devon Energy Williston, L.L.C. securing authorizations. Hess Bakken Investments II received two permits for horizontal wells in Williams County. The permits, 42976 and 42977, are for the GO-WOLLA- 157-97-3422H-2 and GO-WOLLA- 157-97-3422H-3 wells, both located in the RAY field. Devon Energy Williston, L.L.C. received permit 42975 for the BUFORD 3-10-15F 3H well, also in Williams County but in the BUFORD field. The report also listed five permit renewals, with activity concentrated in Burke County. Formentera Operations, LLC filed two renewals, 34950 and 34952, for wells in the PORTAL field. Both filings are marked ‘CONFIDENTIAL’ with notes indicating a "PROPOSED DRILLBACK OUTSIDE OF SPACING UNIT." Silver Hill Energy Operating, LLC also renewed two permits in Burke County. Renewal 41891 is for the ORRIS 159-93-15-3-20MBHX well in the...

☀️Morning Wire·May 28

Regulatory

Texas Oil Regulator Defeated by GOP Challenger in Runoff

Bo French defeated incumbent Texas Railroad Commissioner Jim Wright in a GOP runoff election on Tuesday, according to a report from Rigzone. The win secures French the Republican nomination for a seat on the three-member Texas Railroad Commission (RRC), the state's chief oil and gas regulator. The outcome represents a significant political shift within the agency that oversees the Permian Basin, the nation's most productive oil field. While the race was for a Texas-specific office, regulatory philosophies in major producing states can influence broader industry sentiment and policy debates. For Bakken operators, the change highlights the evolving regulatory landscape in key energy states. The Texas Railroad Commission is often viewed as a bellwether for state-level oil and gas oversight, favoring development. A change in its composition could signal a more assertive or hardline stance on certain regulatory issues, though the specific policy implications of French's platform were not detailed in...

☀️Morning Wire·May 28

Global Markets

Global Gas Market Shifts May Pressure Bakken Prices, Supply Routes

Global natural gas market dynamics are shifting, with major LNG exporters boosting domestic consumption and European buyers seeking new suppliers, according to separate reports from OilPrice.com. These movements could influence the pricing and midstream strategies for associated gas produced in North Dakota's Bakken formation. In Asia, Malaysia—the world's fifth-largest LNG exporter—is increasing its domestic use of natural gas for power generation as a heatwave and data center demand drive electricity consumption to record highs. Reuters data cited by OilPrice.com shows power demand in peninsular Malaysia jumped 11.5% in April year-over-year, with natural gas meeting its largest share of demand since 2019. Concurrently, the share of coal in Malaysia's power mix fell to a more than four-year low. Despite this domestic pull, Malaysia has increased its LNG exports to international markets by 14.6% since the start of the year, according to Kpler data. The report notes that other key Asian importers,...

☀️Morning Wire·May 28

Global Markets

Global Shifts in Energy Trade Impact LNG, LPG Markets

High freight costs are forcing Asian buyers to cancel U.S. liquefied petroleum gas (LPG) cargoes, according to a Bloomberg report. At least two cargoes slated to depart from the U.S. Gulf Coast in June have been canceled, with discussions for more cancellations underway as shipping costs erode importer margins. This comes as Asian buyers had turned to U.S. supply to replace constrained exports from the Middle East. The Middle East supply crunch, stemming from the Iran war and the de facto closure of the Strait of Hormuz, had driven this shift. LPG exports from the Persian Gulf supplied 92% of India’s and 26% of Southeast Asia’s imports in 2025, according to Vortexa data cited by OilPrice.com. However, soaring freight rates are now easing demand for U.S. cargoes. In related shipping news, three oil and two gas carriers have cleared the Strait of Hormuz this week, Reuters reported. Two supertankers, one...

☀️Morning Wire·May 28

Operator News

Midstream, M&A, and Investment Trends Emerge in Thursday's Energy News

Midstream operator Pembina Pipeline Corporation has approved a new natural gas liquids extraction plant project, according to a report from Rigzone. The Calgary-based company will proceed with a new straddle plant to extract NGLs through its existing rights on the Yellowhead Pipeline. Such midstream investments are critical for supporting hydrocarbon transportation and processing from producing regions like the Bakken. In a major acquisition, Northern Oil and Gas (NOG) is entering the Canadian market, Rigzone reported. The Minnesota-based company signed a deal to acquire a 25 percent stake in light-oil assets in the Duvernay shale from Parallax. The transaction carries an initial price of approximately $259 million. This cross-border expansion by a prominent non-operated Bakken player highlights the ongoing pursuit of inventory and scale by companies active in the Williston Basin. Despite current higher oil prices, global investment in oil projects is projected to decline for a third consecutive year, according...

☀️Morning Wire·May 28

Pipeline & Infrastructure

Oil Falls Below $89 as US-Iran Tensions Flare

Oil prices settled below $89 on Thursday as traders reacted to escalating U.S.-Iran tensions alongside speculation about a possible peace deal, according to Rigzone. The price movement reflects the market's sensitivity to geopolitical risk in key oil-producing regions. The volatility follows news that the U.S. carried out airstrikes on an Iranian military site near the Strait of Hormuz and imposed new sanctions aimed at preventing Tehran from profiting from vessels transiting the vital waterway, Rigzone reported. These actions highlight the fragility of recent diplomatic momentum between the two nations. For Bakken operators, such events underscore the global factors that influence crude benchmarks, directly impacting the value of North Dakota's production. Separately, corporate news from a major international player may signal internal shifts. Former BP Plc Chairman Albert Manifold stated he was fired without warning or explanation, Rigzone reported. While not directly related to Bakken operations, leadership stability at large integrated...

☀️Morning Wire·May 28

🔆Midday Wire11:00 AM CST

The Midday Take

Energy Market Briefing

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Oil Prices

Crude Prices Rebound on Significant U.S. Inventory Draw

U.S. crude oil prices climbed over 1.5% midday Thursday, buoyed by a larger-than-expected drawdown in nationwide inventories that signals tightening supplies. West Texas Intermediate (WTI) crude was trading at $90.07 per barrel, a gain of $1.39, according to live price data. The rally followed the U.S. Energy Information Administration's weekly report showing commercial crude inventories fell by 3.3 million barrels for the week ending May 22. According to OilPrice.com, this draw brings total stockpiles to 441.7 million barrels, placing them 2% below the five-year average for this time of year. The reported decrease was steeper than the 2.8 million-barrel draw predicted by the American Petroleum Institute a day earlier and aligned with forecasts from analysts like Macquarie strategists, who had predicted a week-on-week stock drop, as reported by Rigzone. The inventory decline was not limited to crude. The EIA data showed gasoline inventories dropped by 2.6 million barrels, and distillate...

🔆Midday Wire·May 28

Operator News

Chevron Seeks Larger Stake in Greek Offshore Block

Chevron has filed a request to acquire a 70% stake in an oil and gas exploration block offshore southwest Greece, according to a report from OilPrice.com. The move represents a continued expansion of the U.S. supermajor's footprint in the Eastern Mediterranean. The Greek Energy Ministry stated that Chevron wants to buy the majority stake in a block whose concession rights are currently fully owned by Helleniq Energy. Chevron and Helleniq are already partners in several other offshore exploration blocks awarded by Greece, and this filing would make Chevron the operator of an additional block. Greek Energy Minister Stavros Papastavrou called Chevron's decision "a significant milestone in the national effort to develop the oil and gas sector," in a ministry statement cited by OilPrice.com. He added that "Greece is constantly strengthening its position on the energy map of the Eastern Mediterranean." This filing follows lease contracts signed earlier this year by...

🔆Midday Wire·May 28

Global Markets

Global Energy Shifts Raise Geopolitical, Market Questions for Bakken

A Kazakh court ruling against Russian energy giant Gazprom will not be enforced by the government, a decision that undermines international investor confidence and highlights the geopolitical pressures shaping global energy markets, according to a report from OilPrice.com. The ruling, issued by the Astana International Financial Center (AIFC) court in mid-May, upheld an arbitration decision ordering Gazprom to pay Ukraine's Naftogaz $1.4 billion related to a transit dispute. Kazakhstan's Justice Minister, Yerlan Sarsembayev, effectively overruled the court, stating the country "will not serve as a transit venue for the enforcement of decisions that lack a legal nexus with the country." The move is seen as an effort by Kazakhstan to appease Russia, a major economic partner, at the cost of the AIFC court's credibility. OilPrice.com reported that the decision "is likely to sow doubts among foreign investors that they can obtain a fair hearing in case of financial disputes involving...

🔆Midday Wire·May 28

Global Markets

BP Chair Ousted Amid Governance Crisis; Global Gas Supply Concerns Mount

BP's ousted chair, Albert Manifold, has publicly denied allegations of misconduct following his sudden dismissal by the company's board, according to a report from OilPrice.com. Manifold, who served just eight months, stated he drove "genuine change at BP – cutting costs, challenging excess and holding the organisation to higher standards" and disputed the characterization of his conduct. The board's decision was based on "serious concerns" about his conduct, including reports of "volcanic" behaviour and bullying claims. This leadership crisis extends a period of upheaval for the energy major, which has had three chairs in the past year and four chief executives since 2020, OilPrice.com notes. Analyst Maurizio Carulli commented that the departure was "a surprise" but emphasized BP's operational improvements were the result of the entire organization. The turmoil threatens a nascent recovery in BP's financial performance, though its shares have outperformed rivals Shell, ExxonMobil, and Chevron this year, aided...

🔆Midday Wire·May 28

Operator News

Midstream, Security, and Funding Shape Midday Oil & Gas News

Pembina Pipeline Corporation has approved a new natural gas liquids extraction plant project, according to Rigzone. The Calgary-based midstream company decided to proceed with a new straddle plant project to extract natural gas liquids through its existing rights on the Yellowhead Pipeline. For Bakken operators, midstream expansions like this enhance market access and value realization for natural gas and NGLs produced alongside crude oil. Global oil market tensions spiked following a second round of U.S. strikes against Iranian military targets this week, Rigzone reported. The action led to ships deserting the Hormuz Strait, a critical global oil transit chokepoint. Such geopolitical instability typically supports global crude oil benchmarks, which can influence pricing for Bakken crude and impact operator revenue. In corporate funding news, Monumental Energy raised $2.2 million in a share offering, according to Rigzone. Part of the proceeds will fund additional oil and gas workover wells in New Zealand....

🔆Midday Wire·May 28

Pipeline & Infrastructure

NOG Expands to Canadian Duvernay in $259M Deal Amid Broader Investment Dip

Minnesota-based Northern Oil and Gas (NOG), a major non-operated producer in the Bakken, has entered the Canadian market with a significant acquisition. The company signed a deal to buy a 25 percent stake in light-oil assets in Alberta's Duvernay shale from Parallax for an initial price of around $259 million, according to Rigzone. This strategic move diversifies NOG's portfolio beyond its core holdings in the Williston Basin. The expansion by a key Bakken player comes against a backdrop of constrained global spending. Despite higher oil prices, worldwide investment in oil projects is set to drop below $500 billion in 2026, the International Energy Agency reported. This would mark the third consecutive year of declining investment, according to the IEA's annual World Energy Investment report cited by Rigzone. For the Bakken region, NOG's capital deployment into a new, liquids-rich basin highlights the ongoing search for attractive returns by established shale operators....

🔆Midday Wire·May 28

Regulatory

Market, Regulatory Headlines Shape Bakken Outlook

Oil prices settled below $89 per barrel on Wednesday, according to Rigzone. The drop was attributed to traders betting on a possible US-Iran peace deal. This price movement is a key market indicator for Bakken operators, as the formation's economics are directly tied to global crude benchmarks. Lower prices can impact margins and influence near-term drilling and completion decisions across the Williston Basin. Separately, a roundup of federal regulatory activity this week provides context for the operating environment. The Bureau of Land Management (BLM) released updated guidance on rights-of-way for energy projects on federal lands. While specific details of the guidance were not provided in the source material, such updates are critical for operators with holdings in areas managed by the BLM, as they can affect permitting timelines and project logistics. The Environmental Protection Agency (EPA) also published a new memorandum clarifying its policy on emerging contaminants, including certain per-...

🔆Midday Wire·May 28

Production Data

Bakken Rig Count Holds at 27 as Oil Prices Surge Past $90

The active rig count in North Dakota held steady at 27 on Thursday as benchmark oil prices posted significant gains, providing a supportive but cautious backdrop for Bakken production. West Texas Intermediate crude surged $1.39 to settle at $90.07 per barrel, while the global Brent benchmark rose to $93.35, according to midday Bakken Wire data. The price strength coincides with a relatively narrow discount for Bakken crude. The Bakken differential was reported at -$3.42 versus WTI, meaning local barrels are fetching prices near $86.65. This improved netback, combined with sustained high benchmarks, typically encourages operators to maintain drilling and completion activity for existing projects. The current rig count of 27 represents a stable, baseline level of drilling activity in the formation. Historically, the rig count is a leading indicator of future oil production, with a lag of several months between when a well is spudded and when it begins contributing...

🔆Midday Wire·May 28

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Hold Steady as Analyst Sets $75 Long-Term Target

Oil prices showed minimal movement in Thursday trading, with West Texas Intermediate (WTI) crude holding near $88.75 per barrel, according to live price data. Brent crude traded at $92.69. The Bakken crude differential was reported at $-3.42 versus WTI. The steady trading follows a forecast from Macquarie strategists predicting a week-on-week drop in U.S. crude inventories for the period ending May 22, as reported by Rigzone. A new analysis from Bernstein Research provides longer-term context, setting a $75 per barrel price as a reasonable long-term target for equity valuations. According to a survey detailed by OilPrice.com, Bernstein analyst Neil Beveridge pointed to rising marginal costs and declining reserves as key factors. The global marginal cost of oil is now projected to climb to $77 per barrel. The survey of the 50 largest energy companies revealed the industry's average reserve life has fallen to a 20-year low of 10.4 years, significantly...

🌅Afternoon Wire·May 28

Rig Report

Bakken Rig Count Climbs to 28, Up One with New Hess Rig

The number of active drilling rigs in North Dakota increased by one to 28 on Thursday, May 28, according to live rig data from Bakken Wire. This marks the highest reported rig count in over a month. The sole addition was a rig operated by Hess Bakken Investments II, LLC. The company spudded a new well using the Ensign 532 drilling rig at location 156-98-2 in Williams County, the data shows. No rigs were released or moved locations in the last 24 hours. The current activity level represents a continuation of a gradual recovery in the Bakken's drilling pace. Compared to one week ago, on May 21, the rig count has increased by three, from 25 active rigs. The growth is more pronounced over a longer timeframe, with six more rigs working today than were active one month ago on April 28, when the count stood at 22. This sustained,...

🌅Afternoon Wire·May 28

Global Markets

German Utility SEFE Signs Preliminary LNG Deal with Canadian Ksi Lisims Project

German state-owned utility SEFE has signed a preliminary agreement to source liquefied natural gas from Canada's Ksi Lisims LNG project, according to a report from Rigzone. The deal would supply SEFE with 1 million metric tons per annum of LNG for up to 20 years. The agreement represents the first LNG supply booking for SEFE from Canada, Rigzone reported. The Ksi Lisims project is a proposed LNG export facility on Canada's west coast. For Bakken operators, the development underscores the robust global demand for natural gas, particularly from European buyers seeking long-term, secure supply. However, it also highlights the increasing competition in the LNG export market. Canada is emerging as a direct competitor to U.S. Gulf Coast and potentially future U.S. West Coast LNG terminals for supplying European and Asian markets. Gas produced in the Bakken formation is primarily consumed within North America or exported via pipeline. While the region...

🌅Afternoon Wire·May 28

Global Markets

Global Roundup: Solar Rally, Iran Internet Returns, Vanadium Batteries

Solar stocks are rallying sharply in 2026, with the UBS Solar basket (UBXXSOL) up 40% year-to-date and 33% in May alone, according to OilPrice.com. The primary catalyst is the looming decision on Section 232 tariffs, expected in mid-to-late June. First Solar is leading the charge, trading near $268. Analyst Catherine Gordon notes the dynamic has been "buy the rumor and buy the news," with momentum building ahead of the expected policy update. For Bakken operators, a surge in solar investment and potential tariffs on imports could signal shifting dynamics in the broader energy landscape and power procurement strategies. UBS flagged the residential solar rally in stocks like SolarEdge and Enphase as potentially vulnerable to fading. Iran has reconnected to the internet after an 88-day nationwide blackout imposed during its war with the United States and Israel, OilPrice.com reported. The shutdown began on February 28. Monitoring groups reported a partial restoration...

🌅Afternoon Wire·May 28

Operator News

Geopolitical Tensions Spike as U.S. Strikes Iran; Solar Stocks Rally on Tariff Hopes

The United States carried out airstrikes on an Iranian military site near the Strait of Hormuz on Thursday, according to Rigzone. The action, accompanied by new U.S. sanctions aimed at preventing Tehran from profiting from vessels transiting the vital waterway, highlights the fragility of recent diplomatic momentum in the region. Tensions spiked further following what Rigzone reported was a second round of U.S. strikes against Iranian military targets this week. In response to the escalating conflict, ships have been reported deserting the Hormuz area. The Strait of Hormuz is a critical chokepoint for global seaborne oil trade, and any sustained disruption can lead to increased volatility in global crude prices, which directly impacts Bakken crude differentials and operator revenue. In domestic markets, solar stocks are showing a clear technical shift, breaking above a well-defined downtrend after more than five years of sustained pressure, OilPrice.com reported. UBS analyst Catherine Gordon attributed...

🌅Afternoon Wire·May 28

Pipeline & Infrastructure

NOG Expands to Canada, Pembina Advances NGL Plant

Northern Oil and Gas (NOG) is expanding north of the border with a major acquisition in the Canadian Duvernay shale, according to a report from Rigzone. The Minnesota-based company, a prominent non-operating interest owner in the Bakken, signed a deal to acquire a 25 percent stake in light-oil assets from Parallax for an initial price of approximately $259 million. This transaction marks NOG's formal entry into the Canadian market. In related midstream news, Calgary-based Pembina Pipeline Corporation has approved a new natural gas liquids (NGL) extraction plant project, Rigzone reported. The company decided to proceed with a new straddle plant that will extract NGLs using its existing rights on the Yellowhead Pipeline system. Such infrastructure developments are critical for processing and moving hydrocarbons to market. Separately, Monumental Energy raised $2.2 million through a share offering, with part of the proceeds designated to fund additional oil and gas workover wells in...

🌅Afternoon Wire·May 28

Regulatory

Global Oil Investment to Drop Again; BP Chair Ousted; Prices Fall on Deal Hopes

Global upstream oil investment is projected to fall for a third consecutive year, dropping below $500 billion in 2026, according to the International Energy Agency's annual World Energy Investment report. The report, cited by Rigzone, notes the decline is occurring despite currently higher oil prices. For Bakken producers, this underscores a continuing trend of capital discipline and selective spending, even in a core, economically viable play like the Williston Basin. In corporate governance news, former BP Plc Chairman Albert Manifold says he was fired without warning or explanation. Rigzone reported the statement from the former chair of the global energy giant, which holds a significant position in the U.S. onshore sector. While not directly related to Bakken operations, such high-level instability at a major investor can contribute to broader market uncertainty. Oil prices retreated sharply on Wednesday, with futures settling below $89. Rigzone reported the plunge was driven by trader...

🌅Afternoon Wire·May 28

Production Data

Bakken Rig Count Holds at 28 Amid Strong Oil Prices

North Dakota's active rig count held firm at 28 as of Thursday, May 28, 2026, a key indicator of potential near-term production stability in the Bakken formation. The figure, combined with oil prices holding above $88 per barrel, provides a cautiously positive signal for operator activity in the state's primary oil-producing region. The current rig count of 28 represents a baseline level of drilling activity. Historically, the number of active drilling rigs in North Dakota is a leading indicator of future oil production, with changes in the count typically affecting output volumes several months later. A steady rig count, therefore, suggests production levels may avoid significant declines in the coming quarter. Supporting this outlook are current commodity prices. West Texas Intermediate crude traded at $88.75 per barrel, according to live market data. The Bakken crude differential—the discount at which Bakken barrels trade against the WTI benchmark—stood at -$3.42, meaning Bakken...

🌅Afternoon Wire·May 28