Wednesday, July 22, 2026

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Oil Prices

Oil Prices Surge as Geopolitical Tensions Tighten Global Supply

Crude oil prices posted strong gains Wednesday morning, with West Texas Intermediate (WTI) climbing $2.94 to $87.28 per barrel, a 3.49% increase. The international benchmark Brent crude rose $1.08 to $85.14. The price for Bakken crude at the Clearbrook, Minnesota, hub traded at a differential of -$3.42 versus WTI. The price surge is driven by ongoing geopolitical tensions in the Middle East, which have severely disrupted global energy flows. According to related news reports, traffic through the critical Strait of Hormuz remains slowed to a trickle, with volumes 90% lower than before March 2026. This has blocked LNG shipments from Qatar, the world's second-largest LNG exporter, and tightened global oil supply. The supply disruption is having widespread economic impacts. Japan's import bill hit an all-time high of $89.46 billion in June, according to OilPrice.com, with the value of its oil imports soaring 59.3% year-over-year despite a 13.7% drop in volume....

☀️Morning Wire·Jul 22

Rig Report

Bakken Rig Count Holds at 23 as Continental Basin Activity Flattens

The number of active drilling rigs in North Dakota's Bakken formation remained steady at 23 on Wednesday, July 22, according to live data from Bakken Wire. No rigs were added, removed, or moved location since the previous day. This flat daily activity continues a recent downward trend for the Williston Basin's drilling program. The current count is down three rigs from one week ago, when 26 rigs were active, and down four rigs from one month ago. The stability in North Dakota contrasts with a reported increase in overall North American drilling activity. According to a report from Rigzone published on July 21, North America added 26 rigs week on week, based on the latest Baker Hughes rotary rig count. This suggests that while broader continental activity is expanding, capital discipline or operational pacing may be keeping Bakken-specific rig deployment in check. The Baker Hughes rig count is a closely...

☀️Morning Wire·Jul 22

Daily Activity

Phoenix Operating, Koda Secure New Bakken Drilling Permits in Divide County

The North Dakota Department of Mineral Resources approved four new drilling permits in Divide County yesterday, according to the agency's Daily Activity Report. Phoenix Operating LLC was the most active operator, securing three permits for a project in the Alkabo field. The permits, numbered 43135, 43136, and 43137, are for the ICEMAN 28-21-16-9 1H, 2H, and 3H wells, all located in Section 28 of Township 162 North, Range 102 West. Koda Resources Operating LLC received the fourth new permit, 42653, for the KOLSCH 3119-1BH well, also in Divide County. The report also detailed the release of three previously confidential wells operated by Oasis Petroleum North America LLC in Williams County. Well 42424, the HASSEL 5700 43-24 2BHP in Section 24-157N-100W, and well 42497, the HOFF 5700 43-24 6B in the same section, are no longer listed as confidential. Additionally, well 41543, the PHOENIX 5602 13-17 2B in Section 17-156N-102W within...

☀️Morning Wire·Jul 22

Operator News

Chevron Shuts Gulf Production Ahead of Storm Bertha

Chevron has shut in production at its Gulf of Mexico operations in preparation for Tropical Storm Bertha, according to Rigzone. The company stated it will continue to closely monitor the storm's progression. Such precautionary shut-ins are a standard industry practice to safeguard offshore personnel and infrastructure when severe weather threatens the U.S. Gulf Coast. While the action is geographically focused on the Gulf, it involves a major integrated operator with significant assets across multiple U.S. basins, including the Permian and the Denver-Julesburg Basin. For Bakken operators and service companies, these events serve as a reminder of the interconnected nature of the national oil and gas market. Disruptions in Gulf of Mexico production, which accounts for a substantial portion of U.S. crude output, can influence domestic pricing benchmarks and pipeline flow dynamics. Although the Bakken formation in North Dakota is landlocked, its crude is part of a national network, and sustained...

☀️Morning Wire·Jul 22

Pipeline & Infrastructure

West African Pipeline Project Advances with Regional Endorsement

The Economic Community of West African States (ECOWAS) has signed an agreement supporting the proposed African Atlantic Gas Pipeline project, according to a report from Rigzone. The development, published July 22, 2026, marks a step forward for major new natural gas infrastructure aimed at connecting West African supplies to Europe. The proposed pipeline is designed to carry approximately 1.06 trillion cubic feet of gas per year from West Africa. Up to half of this volume, as reported by Rigzone, would be supplied to Morocco and onward to European markets. The ECOWAS endorsement provides a critical regional framework for the multinational project's development. For Bakken operators and royalty owners, the advancement of large-scale international gas infrastructure projects has indirect implications for the global LNG market. While the Bakken formation in North Dakota is primarily a prolific oil-producing region, it also yields significant associated natural gas. The ability to profitably capture and...

☀️Morning Wire·Jul 22

Regulatory

Chevron Shuts Gulf Production Ahead of Storm Bertha

Chevron has shut in production at some of its Gulf of Mexico assets in preparation for Tropical Storm Bertha, according to a report from Rigzone. The company announced the precautionary measure on Wednesday, July 22. A Chevron spokesperson stated the company "will continue to closely monitor the storm," Rigzone reported. This action is a standard industry procedure to safeguard offshore personnel and infrastructure from potential hurricane-force winds and waves. For Bakken Shale operators in North Dakota, the immediate impact is indirect but warrants attention. Shut-ins in the Gulf of Mexico can affect national crude oil supply and broader market sentiment. While the Bakken's inland production is geographically isolated from Gulf weather events, any sustained disruption to Gulf output can influence the benchmark oil prices that determine the profitability of Bakken wells. The situation also serves as a reminder of differing operational risk profiles between basins. Bakken operators face winter blizzards...

☀️Morning Wire·Jul 22

Global Markets

China's Record Oil, Gas Output Weighs on Global Demand Outlook

China's crude oil production hit a record high last year, reaching 216 million tons, while its total oil and gas output in oil equivalent terms also set a record at 420 million tons, according to a report from the country's National Energy Administration. The data, reported today by OilPrice.com, highlights China's ongoing efforts to bolster domestic energy security, a trend with significant implications for global crude markets and Bakken producers. Natural gas production also rose substantially by 10 billion cubic meters last year, maintaining an unchanged annual growth rate for the ninth consecutive year. Chinese firms added new recoverable oil and gas volumes of 1.32 billion tons of oil equivalent, a 5.6% annual increase. The majority, 1.29 billion tons, came from newly discovered conventional resources. A key driver for reduced import demand has been China's strategic filling of storage using discounted Russian and Iranian crude over the past two years....

☀️Morning Wire·Jul 22

Global Markets

Brent Tops $94 as Red Sea Threats Spark Global Supply Fears

Global oil prices surged nearly 4 percent early Wednesday, July 22, 2026, as threats to critical maritime chokepoints intensified concerns over crude supply disruptions. According to OilPrice.com, Brent Crude jumped 3.75% to trade at $94.42 per barrel, while the U.S. benchmark, WTI Crude, rose 3.69% to $87.45. The sharp increase was triggered by reports that Iran-aligned Houthi forces have completed preparations to attack shipping in the Bab el-Mandeb Strait, according to an advisory note from the Joint Maritime Information Center (UKMTO) cited by OilPrice.com. This strait is a key route for crude exports from the Saudi port of Yanbu on the Red Sea. In response, at least three Saudi oil tankers performed U-turns in the Red Sea on Tuesday following a Houthi declaration of a blockade on Saudi oil. Samer Hasn, Senior Market Analyst at XS.com, noted in a Rigzone summary that "The rise in oil prices comes amid the...

☀️Morning Wire·Jul 22

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Surge Over 2%, Bakken Discount Widens Slightly

Oil prices climbed sharply in midday trading on Wednesday, July 22, with both major benchmarks gaining over 2%. West Texas Intermediate (WTI) crude was trading at $86.01 per barrel, up $1.67 (1.98%), while international benchmark Brent crude rose $2.07 to $93.08 per barrel (2.27%), according to live price data. The price rise comes amid what analysts describe as a shift in fundamental market assumptions. Samer Hasn, Senior Market Analyst at XS.com, noted that the increase occurs as "the dissipation of the main assumption that substantially helped keep prices low," according to a Rigzone report. While the specific assumption was not detailed, the commentary points to a tightening of underlying market conditions supporting higher prices. In related market activity, traders reported that some Middle Eastern crude originally purchased by Chinese refiners is being offered for resale, Rigzone reported. This activity can indicate shifting regional demand patterns or surplus supply in Asia,...

🔆Midday Wire·Jul 22

Operator News

Chevron Shuts Bakken Production Ahead of Storm Bertha

Chevron has shut in production at its operations in the Bakken formation in preparation for Storm Bertha, according to a report from Rigzone. The energy news service reported the development on Wednesday, July 22, 2026. A company spokesperson stated that "Chevron will continue to closely monitor the storm," Rigzone reported. The precautionary shut-in is a standard industry practice to protect personnel, environment, and infrastructure from potential severe weather impacts. For Bakken operators, such production shut-ins due to weather are a recurring operational risk, particularly during summer storm seasons. The temporary loss of output from a major producer like Chevron can have immediate effects on regional oil and gas flow volumes. Other operators in the Williston Basin often monitor such actions and may follow similar protocols based on the storm's projected path and severity. The duration and total volume of production affected remain unclear, as the Rigzone report did not specify...

🔆Midday Wire·Jul 22

Pipeline & Infrastructure

West African Gas Pipeline Project Gains Regional Support

The Economic Community of West African States (ECOWAS) has signed an agreement supporting a major new gas pipeline project, according to a report from Rigzone. The proposed African Atlantic Gas Pipeline would carry approximately 1.06 trillion cubic feet of gas per year from West Africa. Up to half of the pipeline's capacity would be dedicated to supplying Morocco and Europe, Rigzone reported. The endorsement from the regional political bloc represents a significant step forward for the international infrastructure project. For Bakken operators, developments in global gas supply and infrastructure are a key market factor. While the Bakken formation is primarily an oil-producing region, associated natural gas production is a substantial byproduct. North Dakota's gas production often faces takeaway constraints and competes in broader North American markets. Large-scale international projects like the African Atlantic Gas Pipeline could influence long-term global LNG and gas supply dynamics. Increased gas flows from West Africa...

🔆Midday Wire·Jul 22

Regulatory

Chevron Shuts Gulf Production Ahead of Storm Bertha

Chevron has shut in production at its operated Gulf of Mexico facilities in preparation for Tropical Storm Bertha, according to Rigzone. The company stated it will continue to closely monitor the storm's path. The precautionary action is a standard safety and environmental procedure for offshore operators when a storm enters their operating area. These protocols involve securing wells and evacuating personnel from offshore platforms to ensure safety and prevent potential spills. For Bakken operators in North Dakota, this development serves as a reminder of their own operational preparedness requirements. While the inland Bakken region is not susceptible to hurricanes, it faces extreme weather events, including severe winter storms and flooding, that can necessitate similar safety shutdowns and impact production schedules. The industry-wide practice of storm preparation underscores the importance of robust emergency response plans. Bakken operators must maintain plans for blizzards, which can shut down roads and halt drilling and...

🔆Midday Wire·Jul 22

Global Markets

Iran Conflict Strains LNG, Crude Supply, Lifting Global Energy Prices

The escalation of the US-Iran conflict and the effective closure of key Middle East shipping straits are driving up global natural gas and oil prices, according to reports from OilPrice.com. The disruptions threaten to delay a recovery in Asian fuel production and squeeze European gas supplies this winter, creating a tighter global energy market that supports the price floor for Bakken crude. According to OilPrice.com, the resumption of hostilities has severely restricted traffic through the Strait of Hormuz, a chokepoint for roughly 20% of the world's oil and gas. Only 26 liquefied natural gas (LNG) cargoes have left the Gulf since the conflict began on February 28, compared to a typical monthly rate of 90-100. The parallel threat to the Bab el-Mandeb Strait, which normally sees 7% of global oil output, further compounds supply concerns. The crisis has sent European and Asian gas benchmarks soaring. The Dutch TTF gas price...

🔆Midday Wire·Jul 22

Global Markets

Global Tensions, Inventory Builds Shape Midday Oil Outlook

Europe faces its weakest natural gas storage cushion in 15 years heading into the winter heating season, according to a report from OilPrice.com. Equinor CEO Anders Opedal said Wednesday that the continent is unlikely to refill storage to even 80% before winter. European storage sites are currently about 54% full, the second-lowest level for this point in the year in 15 years and well below the five-year average. The supply crunch is being driven by intense competition for LNG cargoes, with Asia pulling shipments away from Europe. Kpler estimates Asian LNG imports will hit a six-month high in July, while Europe's imports are projected to fall to their lowest level since September 2024. This dynamic is exacerbated by shipping disruptions from the U.S.-Iran war, which have tightened global LNG supply. In the United States, the Energy Information Administration reported a 2.0 million barrel build in commercial crude oil inventories for...

🔆Midday Wire·Jul 22

Operator News

Global Gas, Power Deals Highlight Diversified Energy Investment

A series of major energy investments announced globally on Wednesday highlights capital deployment into long-term gas projects and utility infrastructure, sectors that compete for investment dollars with shale regions like the Bakken. In Australia's Beetaloo Basin, Tamboran Resources has completed the largest well stimulation campaign in the basin's history, according to Rigzone. The company reported its Shenandoah South Pilot Project is now on track to begin gas sales to the Northern Territory government in the third quarter of 2026. The development of new gas basins like the Beetaloo represents potential long-term supply sources that enter the global LNG market. Meanwhile, the Abu Dhabi National Oil Company (ADNOC) has taken a final investment decision on a $6 billion gas project, Rigzone separately reported. ADNOC stated the investment will reinforce the United Arab Emirates' energy security and its role as a reliable global energy supplier. Such large-scale international gas projects underscore the...

🔆Midday Wire·Jul 22

Pipeline & Infrastructure

Oil Prices Rise on Shipping Threats, Pipeline Roundup

Brent crude futures climbed to their highest level since early June on Tuesday, according to Rigzone, as mounting threats to key global oil shipping routes raised supply concerns. While the Bakken region's crude primarily moves via pipeline and rail to domestic markets, sustained increases in global benchmark prices can improve the economic margins for North Dakota producers. For Bakken operators, the price of Brent and West Texas Intermediate (WTI) crude are critical benchmarks. Higher global prices can strengthen the differentials for Bakken crude at the Clearbrook, Minnesota, and Guernsey, Wyoming, trading hubs. Pipeline capacity remains the primary conduit for Bakken oil to reach coastal refineries and export terminals. Pipeline developments are constantly monitored by the industry for their impact on takeaway capacity and basis differentials. Expansions or new projects can provide relief to congested routes, while regulatory delays or outages can temporarily bottleneck supply. The recent rise in oil prices,...

🔆Midday Wire·Jul 22

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Surge Over $2 on Geopolitical Tension, Boost Bakken Realizations

Oil prices rallied sharply on Wednesday, with Bakken crude benchmarks tracking a broad surge in global benchmarks driven by escalating Middle East tensions and supply concerns. West Texas Intermediate (WTI) crude settled at $86.47 per barrel, a gain of $2.13 or 2.53%, according to live price data. The international Brent crude benchmark climbed $2.86 to $93.87. The Bakken differential to WTI was -$3.42. The price surge is directly linked to renewed hostilities in the Middle East and the effective blockage of the Strait of Hormuz, a critical chokepoint for global energy shipments. According to OilPrice.com, this has cut off Qatar's liquefied natural gas (LNG) supply again, rekindling fears of broader supply disruptions. Spot LNG prices in Asia have soared to $21.61 per million British thermal units (MMBtu), the highest level since March. The geopolitical premium is filtering into global energy markets and corporate earnings. Equinor, the Norwegian energy major, reported...

🌅Afternoon Wire·Jul 22

Rig Report

North Dakota Rig Count Rises to 24, Adding Two New Permitted Rigs

The number of active drilling rigs in North Dakota rose to 24 on Wednesday, July 22, according to live rig data. This represents a net gain of one rig from the previous day, with two new rigs added and one rig released from service. Two new permitted drilling rigs commenced operations. Phoenix Operating LLC spud the PATTERSON 268 well in Divide County at location 162-95-27. In McKenzie County, DEVON ENERGY WILLISTON, L.L.C. started drilling the PRONGHORN 7 at 151-102-27. One rig was released from duty. HESS BAKKEN INVESTMENTS II, LLC released the NABORS x24 rig from its previous location at 149-100-33 in McKenzie County. A separate Hess-operated rig was relocated. HESS BAKKEN INVESTMENTS II, LLC moved the NABORS X27 rig to a new location at 156-98-2 in Williams County. The current activity level of 24 rigs represents a slight decline from recent weeks. The rig count is down by two...

🌅Afternoon Wire·Jul 22

Global Markets

Global Supply Shifts, China's Deals Reshape Bakken's Competitive Landscape

Global energy markets are being reshaped by Middle East conflict and China's expanding influence, creating a complex new backdrop for Bakken producers, according to recent reports. The resumption of the Iran conflict has effectively closed the Strait of Hormuz and the Strait of Bab el-Mandeb, disrupting key shipping lanes for oil and liquefied natural gas (LNG). These disruptions are accelerating a shift in global crude flows, with Brazil emerging as a major competitor. According to OilPrice.com, Brazil's oil production hit a record 4.5 million barrels per day in June 2026, a 19% increase year-over-year. Its medium-sweet crude is gaining greater market share in Asia, particularly China, as buyers seek high-quality feedstock not subject to Middle East transit risks. This surge in production puts Brazil on track to become a top-five global producer and exporter, potentially competing for market share in key export markets. Simultaneously, the LNG supply crisis is driving...

🌅Afternoon Wire·Jul 22

Global Markets

Global Roundup: Grid Risks, African Refinery, Metals Volatility Eyed

A new framework developed by researchers at MIT aims to map geographical weak spots in electrical grids ahead of climate disasters, according to a report from OilPrice.com. The framework, detailed in a recent Nature Energy paper, uses climate projections and county-level power infrastructure data. It highlights that future grid reliability challenges stem from the interplay between weather patterns and system design, driven by prolonged renewable energy shortfalls linked to specific infrastructure siting. The researchers tested their model on the New England and Texas grids. This research underscores global efforts to balance energy security with decarbonization, a relevant backdrop for North Dakota's own grid and energy infrastructure planning. In major project news, Nigerian billionaire Aliko Dangote has proposed building a $17 billion, 700,000-barrel-per-day oil refinery on Kenya's Lamu Island, OilPrice.com reported. The refinery would process crude for Kenya, Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of the Congo. Its...

🌅Afternoon Wire·Jul 22

Operator News

Global Energy Crises Lift Demand for Secure Supply as Wind Sector Struggles

Geopolitical tensions threatening the Strait of Hormuz are forcing a strategic realignment in Asia and tightening global energy supplies, according to an analysis from OilPrice.com. The strait, through which roughly a fifth of the world's oil passes, is facing disruptions due to military operations between the United States and Iran, with shipping companies remaining reluctant to transit the route. This is having immediate consequences for energy-dependent regions like Southeast Asia, where countries like the Philippines import over 90% of their oil from the Middle East. Analysts note that even close U.S. allies are seeking to diversify supply, with the Marcos administration expanding discussions for long-term energy cooperation with Russia. Simultaneously, Europe is heading into winter with its weakest natural gas supply buffer in 15 years, according to a separate OilPrice.com report. European gas storage is only about 54% full, the second-lowest level for this time of year in 15 years....

🌅Afternoon Wire·Jul 22

Pipeline & Infrastructure

Oil Prices Surge Amid Dual Chokepoint Threats, Inventories Rise

Oil prices surged nearly 4% on Wednesday, July 22, 2026, as escalating threats to two critical Middle Eastern shipping chokepoints intensified global supply fears. The Iran-aligned Houthis are threatening to block the Bab el-Mandeb Strait, according to OilPrice.com, which would choke supply from Saudi Arabia's Red Sea port of Yanbu. This comes amid ongoing risks to shipping through the Strait of Hormuz. Brent crude futures jumped 3.75% to trade at $94.42 per barrel, while West Texas Intermediate (WTI) rose 3.69% to $87.45, OilPrice.com reported. The price rally followed reports that Houthi forces have completed preparations to attack shipping, with missiles and drones positioned near Bab el-Mandeb. In response, three Saudi oil tankers executed U-turns in the Red Sea on Tuesday after the Houthis declared a blockade. The supply disruptions are not confined to the Middle East. Analysts at ING noted that Russia's CPC terminal on the Black Sea has stopped...

🌅Afternoon Wire·Jul 22

Regulatory

Middle East Conflict Disrupts Crude Flows, Threatens Global Fuel Supply

The re-escalation of conflict in the Middle East is threatening to delay a global recovery in fuel supplies, as renewed disruptions to key shipping lanes upend crude delivery schedules to Asian refineries. According to a report from OilPrice.com, the collapse of a ceasefire has stalled traffic through the Strait of Hormuz to its lowest level since May, disrupting the flow of crude that Asian processors were counting on to ramp up operations in the third quarter. Analysts told Reuters that Asian refiners, who were optimistic in late June and early July about rising Middle Eastern crude volumes, now face potential delays in August loadings and deliveries. This could thwart their plans to increase crude processing rates in the coming weeks. The situation is compounded by threats from Iran-aligned Houthis to block the Bab el-Mandeb Strait, which would cut off Saudi Arabia's Red Sea oil exports—another critical supply route for Asia....

🌅Afternoon Wire·Jul 22

Production Data

Bakken Rig Count Holds at 24 as Oil Prices Surge Above $86

North Dakota's active drilling rig count held steady at 24 on Wednesday, according to live data from Bakken Wire, a level that suggests the state's oil production will remain relatively flat in the near term. The count is a key leading indicator for future output from the Bakken formation. The static rig activity comes alongside a significant surge in oil prices. West Texas Intermediate (WTI) crude was trading at $86.47 per barrel on July 22, 2026, a gain of $2.13 or 2.53% for the day. The international benchmark Brent crude rose even more sharply to $93.87. The Bakken crude discount to WTI was reported at $-3.42, a relatively narrow differential that improves the netback for local producers. Historically, rig counts correlate directly with production trends after a lag of several months. A stable or rising count typically leads to increased output from new wells, while a declining count foretells a...

🌅Afternoon Wire·Jul 22