Tuesday, July 21, 2026

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Oil Prices

Oil Prices Surge on Strait of Hormuz Attack, Bakken Differential Holds

Global oil prices jumped more than 1.6% on Tuesday, with Brent crude topping $90 per barrel, following an attack on a tanker in the critical Strait of Hormuz. The incident has reignited fears of supply disruptions during peak summer demand. According to live price data, West Texas Intermediate (WTI) crude settled at $83.85, a gain of $1.37. The international benchmark Brent crude rose to $90.69, up $1.47. The Bakken crude differential to WTI was -$3.42. The price surge was triggered by a security incident in a key global oil chokepoint. OilPrice.com reported that a Kuwait-owned oil products tanker, the Kaifan, was struck by an unknown projectile in the Strait of Hormuz near Oman on Tuesday. The crew abandoned the vessel, according to the United Kingdom Maritime Trade Operations. This attack is the latest in a series of escalating tensions that have severely disrupted tanker traffic. OilPrice.com noted that traffic through...

☀️Morning Wire·Jul 21

Rig Report

Bakken Rig Count Holds at 24, Remains Below Month-Ago Level

The number of active drilling rigs in North Dakota's Bakken formation remained unchanged at 24 on Tuesday, according to Bakken Wire's live rig data. The count showed no day-over-day movement, with no new rigs added, none removed, and none relocated since Monday. The current level represents a stable, albeit slightly reduced, pace of drilling activity compared to recent history. The rig count has now held steady at 24 for the past week, matching the total reported on July 14. However, the current fleet is two rigs smaller than the 26 active rigs operating in the state one month ago on June 21. A rig count in the mid-20s continues to reflect a disciplined, maintenance-focused approach by operators in the Williston Basin. This level of activity is generally sufficient to sustain or modestly grow production from the prolific Bakken and Three Forks formations, but it is well below the hyper-drilling pace...

☀️Morning Wire·Jul 21

Daily Activity

DMR Approves Four Phoenix LLC Wells in McKenzie County's Ranch Creek

The North Dakota Department of Mineral Resources approved four new drilling permits in its latest daily activity report, all filed by a single operator targeting a specific McKenzie County field. Meanwhile, five existing permits were renewed, and eight wells were released from confidential status, revealing new production data. All four newly approved permits belong to Phoenix Operating LLC for the Leatherman pad in the Ranch Creek field. The permits, numbered 43131 through 43134, are for the LEATHERMAN 12-1-36-25 1H, 2H, 3H, and 4H wells. According to the DMR report, they are all located in the SE SW of Section 12, Township 146N, Range 99W in McKenzie County. This batch approval signals concentrated near-term development activity by Phoenix in this area. The report listed five permit renewals, with Silver Hill Energy Operating, LLC and Formentera Operations, LLC being the most active. Silver Hill renewed three permits: the HERSETH W 159-93-28-33-2TFH in...

☀️Morning Wire·Jul 21

Operator News

OEUK Urges UK Prime Minister to Visit North Sea Operators

The UK's offshore energy industry body, OEUK, has publicly called for the British Prime Minister to visit North Sea energy operators, stating that "energy policy cannot be made in Westminster alone," according to a report from Rigzone. The request was published on Tuesday, July 21, 2026. While the development is specific to the UK's North Sea sector, the underlying theme resonates with operators in North Dakota's Bakken formation. The call underscores a growing industry-wide push for more direct dialogue between producers and the highest levels of government. In the current global energy landscape, such high-profile engagements are seen as critical for shaping policies that affect investment, regulatory frameworks, and long-term operational planning. For Bakken operators, this news highlights a continuing international trend where energy producers are seeking to ensure their perspectives are heard during policy formulation. The health of the Williston Basin's oil and gas sector is heavily influenced by...

☀️Morning Wire·Jul 21

Global Markets

Global Energy Shifts Tighten Markets, Lift Bakken Prospects

Global energy market dislocations, driven by the ongoing Iran war and Strait of Hormuz closures, are creating a volatile but potentially supportive backdrop for Bakken producers. According to reports, these disruptions are forcing major consumers into costly spot purchases and cementing alternative supply routes, which could bolster demand for U.S. hydrocarbons. Pakistan is paying record sums for liquefied natural gas (LNG) on the spot market after its term supplies from Qatar were disrupted. According to OilPrice.com, Pakistan's state importer accepted an offer for a late-July cargo at a price of $21.88 per million British thermal units (MMBtu), the highest it has paid since the Iran war began in February. This follows a purchase just last week at about $20.70 per MMBtu, described as the most expensive spot LNG cargo in four years. The country is seeking up to six additional cargoes for August delivery. For Bakken operators, whose associated gas...

☀️Morning Wire·Jul 21

Global Markets

ADNOC Approves Major Gas Project; UK Cuts Electricity Tax; BP Sells Austrian Retail

Abu Dhabi National Oil Company (ADNOC) announced a final investment decision Tuesday for a $6.2 billion gas project, according to OilPrice.com. The Umm Shaif Gas Cap development, to be undertaken with partners TotalEnergies, Eni, and China National Petroleum Corporation, aims to unlock over 600 million standard cubic feet per day of natural gas by 2030. The project includes $5.1 billion in offshore infrastructure contracts and a $365 million drilling program to be executed by ADNOC Drilling over 18 months. ADNOC stated the development supports its strategy to grow its global gas portfolio and liquefied natural gas export plans. This follows last month's agreement bringing BP and TotalEnergies into the consortium for Abu Dhabi's separate Bab Gas Cap project. In the United Kingdom, the new Labour government announced it will scrap the 5% value-added tax on domestic electricity bills starting October 1, OilPrice.com reported. Prime Minister Andy Burnham said the move,...

☀️Morning Wire·Jul 21

Operator News

Global Supply Risks Rise as Attacks Target Key Shipping Lanes

Global oil supply risks intensified this week following new attacks on tankers in the Strait of Hormuz and the Black Sea, according to multiple reports. Simultaneously, a pilot program for renewable gasoline commenced in Europe, signaling ongoing energy transition efforts. Another tanker was attacked in the Strait of Hormuz on Monday as renewed hostilities empty the waterway, Rigzone reported. The incident coincides with a threat by Houthi rebels to blockade Saudi Arabia in the Red Sea, which the source said is heightening regional maritime risks. Separately, a key Kazakh oil-export terminal on the Black Sea again halted loadings following a drone strike, according to a separate Rigzone report from July 20. These disruptions in critical global chokepoints underscore the persistent geopolitical volatility that can support crude oil prices by threatening supply. For Bakken operators, sustained global price strength is a key factor for drilling economics and production growth in North...

☀️Morning Wire·Jul 21

Pipeline & Infrastructure

Global LNG Developments Highlight Export Market Dynamics for Bakken Gas

The global liquefied natural gas (LNG) sector saw significant developments on Monday, highlighting the export market dynamics that can influence Bakken gas producers. In Canada, the Shell-led LNG Canada joint venture signed an agreement allowing five neighboring First Nations in British Columbia to invest up to approximately $712 million in the project's second phase, according to Rigzone. Meanwhile, industry analyst Daniel Yergin, Vice Chairman of S&P Global, stated that the profound growth of U.S. LNG is "exceeding all expectations," Rigzone reported. This rapid expansion of U.S. export capacity underscores the growing global demand for natural gas, which provides a potential long-term outlet for associated gas produced from the Bakken formation. Separately, geopolitical tensions affecting maritime routes were in focus. A Saudi-led coalition vowed to protect ships from Houthi attacks, Rigzone noted, after the Iran-backed Yemeni group vowed to impose a maritime blockade on Saudi Arabia. Such disruptions can influence global...

☀️Morning Wire·Jul 21

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Surge Past $91 on Middle East Escalation, Houthi Threats

Oil prices surged on Tuesday, with Brent crude closing above $91 per barrel, driven by escalating conflict in the Middle East and new threats to key shipping routes. According to live price data, West Texas Intermediate (WTI) crude was at $84.31, up $1.83 or 2.22%, while Brent crude traded at $91.15, a gain of $1.93. The Bakken crude differential narrowed to a discount of $3.42 per barrel versus WTI. The primary driver of the rally is the expansion of regional conflict into the Red Sea, according to reports from OilPrice.com. Yemen's Houthi rebels have issued warnings to global shipping companies against loading cargo at Saudi ports, threatening strikes. This has forced tankers to reroute, raising fears of prolonged supply disruptions. The report notes that the first Asian-chartered tankers carrying Saudi oil are already making U-turns to avoid the threat. Compounding supply concerns, Saudi Aramco reportedly shipped a record 5.9 million...

🔆Midday Wire·Jul 21

Operator News

UK Offshore Industry Seeks Political Engagement Amid Global Energy Policy Focus

The UK's offshore energy industry body has publicly requested that the country's prime minister visit North Sea energy operators, arguing that energy policy should not be made in isolation in Westminster. The call from Offshore Energies UK (OEUK) was reported by Rigzone on Tuesday. According to the Rigzone report, OEUK stated that "energy policy cannot be made in Westminster alone." This move underscores a persistent global theme where energy producers seek direct engagement with top government officials to influence regulatory and fiscal frameworks. For Bakken operators and royalty owners, this international news highlights the universal importance of stable and informed energy policy. While the specific request is directed at UK leadership, the underlying principle resonates in North Dakota's Williston Basin. Industry advocacy groups, such as the North Dakota Petroleum Council, consistently emphasize the need for state and federal policymakers to understand on-the-ground operations, regulatory impacts, and technological advancements firsthand. The...

🔆Midday Wire·Jul 21

Global Markets

Gulf Conflict Escalates, Disrupts Shipping and Fuels Price Rally

Geopolitical conflict in the Middle East intensified sharply on Tuesday, disrupting key oil shipping lanes and propelling crude prices to six-week highs, according to reports from OilPrice.com. The escalating violence presents renewed volatility and upside price risk for Bakken producers. Yemen's Houthi militia declared an immediate maritime embargo on Saudi Arabia, forcing two Saudi crude tankers bound for China and India to make U-turns in the Red Sea. The group warned shipping companies that loading or discharging cargo at Saudi ports could result in being targeted "in any location," according to OilPrice.com. This new front along the Bab el-Mandeb Strait threatens the pipeline route Saudi Arabia uses to move crude to the Red Sea port of Yanbu. Simultaneously, the Strait of Hormuz remains highly dangerous. Two tankers managed by Greek operator Dynacom were struck by projectiles Monday while sailing a U.S.-facilitated southern corridor off Oman. The Malta-flagged Kavomaleas caught fire...

🔆Midday Wire·Jul 21

Operator News

North America Rig Count Rises; Global Market Shifts Noted

The North American drilling rig count rose by 26 this week, according to the latest data from Baker Hughes reported by Rigzone. The increase reverses a recent decline and signals renewed activity among oil and gas operators across the continent. Separately, OMV Petrom has completed installation of the offshore production platform for its Neptun Deep gas project in the Black Sea, Rigzone reported. The company states the project will position Romania as the European Union's largest natural gas producer upon startup, adding a new source of non-Russian supply to the global market. In other international news, Indian state refiners have halted loadings of Iraqi crude, according to a separate Rigzone report. The refiners typically purchase this oil under long-term contracts that require the buyer to arrange shipping, indicating potential logistical or commercial disruptions in a key global supply corridor. For Bakken formation operators, the rise in the North American rig...

🔆Midday Wire·Jul 21

Pipeline & Infrastructure

Global Market Shifts, Supply Risks Emerge as Bakken Exports Depend on Stability

European natural gas production rose sharply in June, with Norway's output reaching nearly 12 billion cubic feet per day, a 9.3 percent monthly increase, according to Rigzone. The report noted the figure was also 13.4 percent higher than in June 2025. While not directly impacting Bakken gas, sustained high European production can influence global LNG prices and trade flows, indirectly affecting the energy market landscape in which Bakken operators compete. In a separate corporate move, Norwegian firms Vår Energi and BlueNord announced a merger aimed at creating Europe's largest independent oil and gas producer, Rigzone reported. Such consolidation among international producers can shift global investment patterns and competitive dynamics, though the direct impact on the Williston Basin is not specified in the announcement. A more immediate potential concern for global oil markets—and by extension Bakken crude pricing—is a new supply risk warning. Analysis from Rystad Energy, cited by Rigzone, warns...

🔆Midday Wire·Jul 21

Regulatory

BP Divests Austrian Retail, Tanker Attacked, Auto Giants Test Renewable Fuel

BP has signed an agreement to sell its retail and electric vehicle charging businesses in Austria, including 250 branded retail sites, to Volenergy, according to Rigzone. The move is part of the oil major's broader simplification drive. Meanwhile, renewed hostilities in key global shipping lanes are elevating maritime risk. Another tanker was attacked in the Strait of Hormuz, Rigzone reported, as threats in the region empty the waterway. Concurrently, Houthi rebels have threatened a blockade of Saudi Arabia in the Red Sea, further heightening risks for global oil shipments. In fuel technology news, automotive giants BMW and Toyota have begun a six-month pilot deployment of Repsol's Nexa 95 renewable gasoline, Rigzone reported. The test aims to evaluate the scalability of the renewable fuel on existing internal combustion engine vehicles. For Bakken operators and crude marketers, the attack in the Strait of Hormuz and escalating Red Sea threats are the most...

🔆Midday Wire·Jul 21

Production Data

Bakken Rig Count Holds at 24 as Oil Prices Surge Above $84

North Dakota's active drilling rig count held steady at 24 on Tuesday, a level that suggests operators are maintaining production but showing little appetite for significant near-term growth, according to Bakken Wire data. The stability comes alongside a sharp midday rally in oil prices, with West Texas Intermediate (WTI) crude trading at $84.31, a gain of $2.22%. The current rig count, a leading indicator of future production, remains near multi-year lows. Historically, the number of active rigs in the Bakken formation has a direct, though lagged, correlation with oil output. A sustained rig count in the low-to-mid 20s typically corresponds with maintaining existing production levels rather than accelerating growth. The price strength provides a favorable revenue environment for Bakken producers. Brent crude, the international benchmark, was trading at $91.15. The discount for Bakken crude compared to WTI was $3.42 per barrel, putting the local price point near $80.89. Natural gas...

🔆Midday Wire·Jul 21

Workforce & Community

Bakken Rig Count Holds at 24 as Higher Oil Prices Support Stability

The North Dakota oil and gas workforce is operating against a backdrop of stable, moderate activity, with the state's active rig count holding at 24 on Tuesday. The current count represents a consolidation of operational footprint compared to previous boom cycles, according to general industry analysis. Elevated crude oil prices are providing underlying support for this level of activity. West Texas Intermediate (WTI) crude traded at $84.31 per barrel at midday, a gain of $2.22% on the day. The international Brent benchmark was at $91.15. Bakken crude traded at a discount of $3.42 per barrel to WTI, for a wellhead price of approximately $80.89. Historically, rig counts serve as a leading indicator for employment and service demand in oil-producing regions like the Bakken. A stable rig count in the mid-20s suggests a corresponding steadiness in direct oilfield employment for roles including drillers, rig hands, and company personnel. This level is...

🔆Midday Wire·Jul 21

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Rally Over 2% as Brent Tops $91, Bakken Discount Holds

Front-month crude oil futures posted strong gains in Tuesday trading, with both major benchmarks rising more than 2%. The rally pushed Brent crude above the $91 per barrel mark, providing a lift to pricing for Bakken producers. West Texas Intermediate (WTI) crude for September delivery settled at $84.44 per barrel, a gain of $1.96 or 2.38% on the day. The global benchmark, Brent crude, rose $2.09 to settle at $91.31 per barrel, a 2.34% increase. The price spread between Brent and WTI widened slightly to nearly $7 per barrel. The Bakken crude price differential, which represents the discount at which North Dakota's light sweet crude trades versus WTI at the Clearbrook, Minnesota hub, was reported at -$3.42. This stable discount indicates Bakken crude was priced at approximately $81.02 per barrel based on the day's WTI settlement. The price surge was attributed to a combination of factors tightening the global supply...

🌅Afternoon Wire·Jul 21

Rig Report

North Dakota Rig Count Drops to 23, Down 3 in Month

North Dakota's active rig count fell to 23 Tuesday, down one from 24 a week ago and three from 26 a month ago, according to Bakken Wire's daily rig data. The net decline of one rig from Monday reflects one new rig entering the play and two rigs departing. New rig Firebird Services LLC spudded the T&S Drilling 2 at 161-93-1 in Burke County, the only new rig reported Tuesday. Rigs removed Devon Energy Williston LLC removed the Pronghorn 7 from its location in McKenzie County at 151-102-27. Burlington Resources Oil & Gas Company LP removed the Noble 6 from 151-96-7, also in McKenzie County. No rigs changed location Tuesday. Broader context The Bakken's 23-rig count continues a gradual decline from 26 a month ago and 24 a week ago. The drop comes as the broader North American market shows a different trend. According to Baker Hughes' latest North America...

🌅Afternoon Wire·Jul 21

Operator News

UK Industry Body Calls for PM Visit Amid Global Energy Policy Focus

The UK's offshore energy industry association has publicly requested that the country's prime minister visit North Sea operators, underscoring a global theme of industry seeking direct engagement with policymakers. According to Rigzone, Offshore Energies UK (OEUK) stated that "energy policy cannot be made in Westminster alone." This development, while centered on the North Sea, reflects a common tension in hydrocarbon-producing regions, including the Bakken formation in North Dakota. Operators often advocate for regulatory and fiscal policies that consider on-the-ground operational realities and economic contributions. The call for high-level political visits is a tactic used to bridge the gap between national policy objectives and local industry execution. For Bakken operators, the news serves as a reminder of the importance of sustained advocacy and communication with state and federal officials. North Dakota's oil industry frequently engages with the state's congressional delegation and regulators in Bismarck to discuss issues like permitting timelines, flaring...

🌅Afternoon Wire·Jul 21

Global Markets

U.S. Aims to Counter China in Iraq, Impacting Global Oil Flows

The Trump administration is intensifying efforts to pull Iraq away from China's sphere of influence, a geopolitical shift with long-term implications for global oil markets and North Dakota producers, according to a report from OilPrice.com. Last week's meeting between Iraqi Prime Minister Ali al-Zaidi and President Donald Trump at the White House was aimed at formulating a new cooperation framework to remove Beijing and Moscow from Baghdad's foreign relationships. A senior European Union security source told OilPrice.com the primary focus is on replacing Iraq's broad relationship deals with China with similar agreements with the U.S. This push centers on Iraq's vast oil and gas reserves, which the report identifies as vital to China's economic and military expansion. The current U.S. strategy views the Middle East as a critical bridge between Asia and Europe, a region for military bases, and a source of the energy China needs. The effort seeks to...

🌅Afternoon Wire·Jul 21

Global Markets

Global Energy Markets Tighten as AI Drives IPO Boom, Supply Risks Mount

A surge in energy startup funding driven by artificial intelligence's power demands coincides with tightening global oil supplies due to geopolitical disruptions, creating a complex market landscape for Bakken producers. According to OilPrice.com, energy companies raised $12.6 billion in initial public offerings in the first half of 2026, already nearly triple the $4.3 billion raised in all of 2025. The Financial Times, cited by OilPrice.com, reports this pace is the fastest this century, driven by investors seeking exposure to the power needs of AI data centers. "Investors started by buying AI-linked names like Nvidia. Then they said, 'hold on, every chip needs energy to power it'," RBC analyst Chris Dendrinos told the FT. This boom is funding a wide range of technologies, including nuclear fusion, enhanced geothermal, and space-based solar power. This demand-side pressure emerges as new supply risks materialize. Kazakhstan has suspended major oil exports via the Caspian Pipeline...

🌅Afternoon Wire·Jul 21

Operator News

India Suspends Iraqi Oil Loadings Amid Hormuz Danger; Halliburton Sees NA Activity Rise

India’s biggest state-owned refiners have stopped loading crude from Iraq after a string of attacks on commercial tankers in the Strait of Hormuz, according to a report Tuesday from OilPrice.com. Indian Oil Corp. abandoned plans to load the very large crude carrier (VLCC) Lila Jamnagar, concluding that sending a fully laden 2-million-barrel tanker through the chokepoint was no longer worth the risk, the report said, citing Bloomberg. Mangalore Refinery & Petrochemicals has also halted Iraqi liftings as security in the region continues to deteriorate. India depends on imports for more than 85% of the oil it consumes, and before the Iran war roughly half of those barrels came from the Middle East, the report noted. Iraq has traditionally been one of the largest suppliers under long-term contracts that leave Indian refiners responsible for shipping. The decision to pull back accelerates India’s search for alternatives, with Russian crude flowing at near-record...

🌅Afternoon Wire·Jul 21

Pipeline & Infrastructure

Global Energy M&A, Supply Shifts Mark Tuesday Trading

Major developments in global energy markets and corporate mergers captured attention Tuesday, offering a mixed picture for international crude and natural gas flows that influence the competitive landscape for Bakken producers. In Europe, Norwegian natural gas production rose significantly last month. Norway produced nearly 12 billion cubic feet per day of natural gas in June, according to Rigzone, representing a 9.3 percent increase from May and a 13.4 percent rise compared to June 2025. Increased gas flows from Norway can affect global LNG and pipeline gas balances, potentially influencing the energy mix in markets that also consume U.S. crude oil exports. Separately, two European producers announced a major consolidation. Var Energi and BlueNord announced a merger that they said would create Europe's biggest independent oil and gas producer, Rigzone reported. Large-scale mergers among international operators can shift global capital allocation and competitive dynamics, though the direct impact on the Williston...

🌅Afternoon Wire·Jul 21

Regulatory

Global Geopolitical Risks Mount as Saudi Oil, Strait of Hormuz Face Threats

Rystad Energy warned today that 2.5 million barrels per day of Saudi oil production is at risk as Houthi rebels “threaten to enact a naval blockade,” according to a report published by Rigzone. The warning comes as another tanker was attacked in the Strait of Hormuz, with renewed hostilities emptying the waterway, Rigzone reported separately. The developments compound global supply concerns for Bakken operators and royalty owners, who have benefited from elevated crude prices over the past year. Any disruption to Middle East flows, particularly through the Strait of Hormuz—a chokepoint for roughly one-fifth of global oil—could tighten markets further, supporting North Dakota’s light sweet crude differentials. The Houthi threat to blockade Saudi Arabia in the Red Sea adds a second layer of maritime risk. According to Rigzone, the attack in the Strait of Hormuz and the Houthi threat “heightened regional maritime risks,” potentially forcing tankers to avoid key shipping...

🌅Afternoon Wire·Jul 21