Sunday, July 26, 2026

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Oil Prices

Oil Prices Fall Sharply as Geopolitical Premium Eases

Front-month crude oil futures fell sharply in Friday trading, with both major benchmarks shedding over three percent. West Texas Intermediate (WTI) settled at $89.31 per barrel, down $2.88, while Brent crude closed at $96.78, a drop of $3.91, according to live price data. The decline pulled Brent back from the psychologically significant $100-per-barrel threshold. Rigzone reported the pullback was driven by reduced immediate supply concerns following reports on U.S.-Iran diplomacy and confirmation that oil flows through the Red Sea have continued. Adding downward pressure on prices was a reported build in U.S. commercial crude inventories. The U.S. Energy Information Administration's weekly report showed stocks, excluding the Strategic Petroleum Reserve, stood at 411.7 million barrels as of July 17, according to Rigzone. Despite the day's drop, broader market volatility remains elevated due to prolonged supply chain disruptions stemming from the closure of the Strait of Hormuz earlier this year. According to...

☀️Morning Wire·Jul 26

Rig Report

Bakken Rig Count Holds at 23, Down from 26 a Month Ago

The number of active drilling rigs in North Dakota's Bakken formation held steady at 23 on Sunday, July 26, according to the latest Bakken Wire daily rig survey. There were no rigs added, removed, or moved to new locations since the previous day. The current count represents a continued modest contraction in the state's drilling activity when viewed over recent weeks. The rig count is down by two units from one week ago, when 25 rigs were active on July 19. Compared to one month ago on June 26, the active fleet has declined by three rigs from a total of 26. A rig count in the low-to-mid 20s has become typical for the Bakken in recent years, as operators focus on capital discipline and maximizing returns from high-efficiency wells rather than pursuing aggressive growth in drilling activity. The gradual decline from 26 to 23 rigs over the past month...

☀️Morning Wire·Jul 26

Daily Activity

DMR Daily Activity Report Shows No New Filings for Saturday

The North Dakota Department of Mineral Resources (DMR) reported no new activity filings in its daily report for Saturday, July 25, 2026, according to the agency's data. The DMR's daily activity report typically lists new drilling permits approved, well completions reported, wells spudded (drilling begun), and wells plugged. The absence of new filings indicates a pause in regulatory submissions from operators. Such no-activity days are a normal occurrence in the state's oil and gas industry, particularly on weekends and during holidays when administrative offices are closed and field operations may slow. The daily report provides a snapshot of near-term activity for Bakken operators and service companies. The next report, covering activity for Sunday, July 26, will be released on Monday morning.

☀️Morning Wire·Jul 26

Global Markets

Global Inflation Fears Resurface, Impacting Bakken Outlook

A resurgence of global inflation concerns is shaping the financial environment for North Dakota's Bakken operators, according to industry reports. These renewed fears, driven by specific macroeconomic factors, introduce both challenges and potential opportunities for the region's oil and gas sector. Rigzone reported that spiking energy prices, more U.S. tariffs, and mushrooming spending on artificial intelligence are reawakening investors' inflation fears. This combination creates a complex backdrop for Bakken producers. For operators, higher global energy prices can support stronger crude oil benchmarks, which directly benefit Bakken well economics and cash flow. However, the inflation driven by these same prices increases the cost of operations. Drilling, completion, and equipment expenses typically rise in inflationary periods, squeezing profit margins even as revenue potentially increases. The report of "more U.S. tariffs" adds another layer of uncertainty. Tariffs can disrupt global trade flows and impact the cost of imported steel, equipment, and other materials...

☀️Morning Wire·Jul 26

Global Markets

Global Energy Tech Roundup: AI Nuclear, CCS Struggles, Plastic-to-Hydrogen

China is pushing to integrate artificial intelligence throughout the nuclear energy life cycle, according to a report from OilPrice.com. Researchers at the Chinese Academy of Sciences revealed a new plan called the Accelerator-Driven Advanced Nuclear Energy System (ADANES) at a Shanghai conference. Proponents argue AI can process vast operational data to improve safety and efficiency, playing a "core role" from design to decommissioning. However, the opaque "black box" nature of current AI models presents a fundamental challenge for stringent nuclear safety requirements. In the carbon capture sector, optimism is meeting technical reality. The Carbon Capture and Storage (CCS) industry, which saw a boom during the COVID-19 pandemic, is facing growing skepticism as several projects underperform, OilPrice.com reported. A review by the Institute for Energy Economics and Financial Analysis of 13 global projects found most captured below their 90% design targets, with some failing outright. This comes despite major pledges from...

☀️Morning Wire·Jul 26

Operator News

Global Energy Shifts Offer Context for Bakken as EU Eases Methane Rules

The European Commission has advised a three-year waiver of penalties for oil and gas companies that breach its strict methane emissions law, according to a report from OilPrice.com. The decision, driven by U.S. government pressure and energy security fears, delays the full implementation of rules set to begin in January 2027. For Bakken operators, this represents a potential near-term reprieve from one source of regulatory pressure on U.S. gas exports. The EC cited "global energy markets tightness caused by the ongoing blockade of the Strait of Hormuz" as justification. The Strait has been largely closed since February, disrupting a trade corridor that normally carries about 20 percent of global petroleum liquids and gas supply. This geopolitical development is reshaping investment flows, with oilfield service giant SLB noting the conflict is encouraging customers to spread investment across more regions beyond the Middle East, Rigzone reported. The EU's methane regulation, adopted in...

☀️Morning Wire·Jul 26

Pipeline & Infrastructure

Overseas Crude Demand, Geopolitical Risks Shape Bakken Outlook

U.S. crude, including volumes from the Bakken formation, is drawing significant interest from overseas buyers, according to a market report. Asian and European refiners are in "hot pursuit" of American oil, Rigzone reported on July 24. This sustained international demand is a key factor supporting the market for North Dakota's light, sweet crude, which is often exported from the Gulf Coast. Separately, analysts have modeled potential impacts on global oil prices from rising geopolitical tensions. Rystad Energy mapped four potential conflict scenarios between the U.S. and Iran, Rigzone reported. While the specific price impacts were not detailed in the summary, such analyses are closely watched by Bakken operators as heightened tensions in key oil-producing regions can lead to price volatility and influence drilling budgets. In other news, Russian natural gas producer Novatek reported financial results for the first half of 2026. The company posted higher revenue, but its adjusted net...

☀️Morning Wire·Jul 26

Regulatory

Chevron-Led Cyprus Gas Deal Inked, UK Industry Meets New Minister

The Chevron-led consortium developing the Aphrodite gas field offshore Cyprus has secured a key agreement to export its production to Egypt, according to a report from Rigzone. The memorandum of understanding, signed with Cyprus Hydrocarbons and Egyptian Natural Gas, enables the piped export of 100 percent of the gas from the Aphrodite field. The deal, reported on July 24, represents a significant step in bringing Eastern Mediterranean gas to market and underscores Chevron's ongoing international portfolio management. In a separate regulatory development, the UK's offshore energy industry group reported a "constructive meeting" with the country's new energy secretary. Offshore Energies UK (OEUK) announced that its CEO, David Whitehouse, met with the UK's new Secretary of State for Energy, Rigzone reported on July 24. The meeting marks an early engagement between the industry and the fresh political leadership overseeing energy policy. For Bakken-focused operators and service companies, these international developments serve...

☀️Morning Wire·Jul 26

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Fall Sharply Amid Easing Supply Fears, Bakken Discount Widens

Front-month WTI crude oil futures traded at $89.31 per barrel on Sunday, July 26, down $2.88 or 3.12% for the session. The global benchmark Brent crude fell to $96.78, a drop of $3.91 or 3.88%. The discount for Bakken crude at the wellhead widened to $3.42 below WTI. The sharp decline follows a volatile week where Brent briefly topped $100 per barrel, according to OilPrice.com. That spike was driven by escalating supply disruptions, including Houthi strikes on tankers in the Red Sea's Bab el-Mandeb Strait and Ukrainian drone attacks on the Novorossiysk oil terminal on the Black Sea, which handles Kazakh exports. However, prices pulled back as reports of continued U.S.-Iran diplomacy and ongoing Red Sea oil flows reduced immediate supply concerns, Rigzone reported on July 24. This created a volatile trading environment as the market weighs persistent geopolitical risks against potential de-escalation. Compounding the downward pressure, U.S. crude inventories...

🔆Midday Wire·Jul 26

Pipeline & Infrastructure

Australia's Clean Energy Shift Mirrors Global Demand Dynamics

Australia's accelerating transition to renewable energy underscores a global shift in electricity generation that continues to shape long-term demand for fossil fuels, including natural gas. According to a report from OilPrice.com, renewable sources provided 42.7% of Australia's electricity generation in 2025, up from 38.9% in 2024. This growth is supported by a national Renewable Energy Target (RET) scheme aiming to deliver an extra 33,000 gigawatt-hours of renewable electricity annually from 2020 to 2030. The Australian energy mix is changing rapidly. In 2025, wind power contributed 15.7% of generation, rooftop solar 13.9%, utility-scale solar 7.7%, and hydropower 5.3%. Meanwhile, coal's share has significantly declined; black coal provided 37.5% of electricity in 2025 and brown coal 12.1%, down from a combined total of around 80% in 2000. Daniel Westerman, CEO of the Australian Energy Market Operator (AEMO), noted the trend: "Our old coal-fired power stations are breaking down; they’re retiring. They’re getting...

🔆Midday Wire·Jul 26

Global Markets

Global Inflation Fears Resurface, Threatening Bakken Economics

A resurgence of global inflation fears, driven by spiking energy prices and new U.S. tariffs, is introducing fresh uncertainty for Bakken operators, according to a report from Rigzone. The financial news outlet reported that these factors, alongside mushrooming spending on artificial intelligence, are reawakening investor anxiety. For North Dakota's oil producers, renewed inflation concerns present a dual-edged sword. Higher energy prices, which are contributing to the inflation scare, can directly boost crude oil revenues and improve wellhead economics in the short term. The Bakken formation is a major contributor to U.S. light tight oil production. However, sustained inflation fears often prompt central banks, like the Federal Reserve, to maintain or raise interest rates to combat rising prices. Higher borrowing costs can increase capital expenses for operators funding new drilling programs and well completions. This can pressure margins and potentially slow development activity in the Williston Basin. Furthermore, the mention of...

🔆Midday Wire·Jul 26

Global Markets

Global Tech Shifts: AI in Nuclear, CCS Doubts, Hydrogen From Waste

China is advancing a plan to integrate artificial intelligence throughout the nuclear energy lifecycle, according to a report from OilPrice.com. Researchers at the Chinese Academy of Sciences revealed a system called ADANES, or the Accelerator-Driven Advanced Nuclear Energy System, at the World Artificial Intelligence Conference in Shanghai. The system aims to change the safety logic of conventional reactors, with AI playing a core role from design through operation and maintenance. Wang Shoujun, president of the Chinese Nuclear Society, stated that AI integration into sectors like nuclear energy is an inevitability, and the focus should be on planning and safety. Separately, optimism around carbon capture and storage (CCS) technology is facing renewed skepticism as several projects underperform, OilPrice.com reported. A review by the Institute for Energy Economics and Financial Analysis of 13 operating CCS projects globally found most captured below their design levels of 90%, with some failing outright. This comes...

🔆Midday Wire·Jul 26

Operator News

Global Operator Moves Highlight Diversification Trends

Italian energy major Eni has agreed to acquire approximately 320 service stations across Austria, Denmark, Germany, and Switzerland from Prax, according to a report from Rigzone. The transaction, announced July 26, represents a strategic expansion of Eni's downstream retail footprint in Europe. Separately, oilfield services giant SLB indicated that global investment patterns are broadening beyond the Middle East, Rigzone reported July 24. The company stated that ongoing conflict is encouraging its customers to spread capital expenditures across more regions. This shift could influence where international service companies like SLB focus their operational and technical resources. In other operator news, Australian firm Santos narrowed its full-year 2026 production forecast, according to a July 24 Rigzone report. The company revised its output guidance from 101-111 million barrels of oil equivalent (MMboe) to 99-105 MMboe. This revision occurred despite production ramp-ups at its Barossa and Pikka projects. For Bakken operators and service providers,...

🔆Midday Wire·Jul 26

Pipeline & Infrastructure

Overseas Demand, Geopolitical Risk Shape Bakken Crude Outlook

Strong international demand for U.S. crude and heightened geopolitical risk are key factors shaping the market for Bakken producers this week, according to recent industry reports. U.S. crude is drawing significant overseas interest from Asian and European refiners, Rigzone reported on July 24. This sustained demand provides a crucial outlet for Bakken production, which relies on efficient transportation to coastal export terminals via pipeline and rail. Meanwhile, analysts are assessing how escalating tensions could affect global oil prices. Rystad Energy has mapped four potential U.S.-Iran conflict scenarios to gauge their impact on oil markets, Rigzone reported separately on July 24. Any disruption in the Strait of Hormuz, a critical global oil chokepoint, could lead to significant price volatility, directly influencing the price of Bakken crude. The global market dynamics underscored by these reports highlight the Bakken's position in an interconnected supply chain. North Dakota's oil flows to both domestic refineries...

🔆Midday Wire·Jul 26

Regulatory

Chevron-Led Consortium Secures MOU for Cypriot Gas Export to Egypt

The Chevron-led Aphrodite consortium has signed a memorandum of understanding to pipe gas from a Cyprus offshore field to Egypt, according to a report from Rigzone. The MOU, signed with Cyprus Hydrocarbons and Egyptian Natural Gas, covers the export of 100 percent of production from the Aphrodite field. This international development underscores the ongoing global integration of natural gas markets, where liquefied natural gas (LNG) terminals like those in Egypt serve as key hubs for export to Europe and Asia. For Bakken producers, the expansion of global gas infrastructure and long-term supply agreements can influence pricing benchmarks and market access opportunities for associated gas. While the Bakken formation is primarily an oil play, its significant associated gas production is increasingly seeking stable markets. Developments that strengthen global gas trade corridors can have downstream effects on U.S. export capacity and pricing. The involvement of a major international operator like Chevron also...

🔆Midday Wire·Jul 26

Production Data

Bakken Rig Count Holds at 23 Amid Sharp Decline in Crude Prices

North Dakota's active rig count held at 23 on Sunday, July 26, 2026, a key indicator that drilling activity has found a tentative baseline even as crude oil prices fell sharply. The benchmark West Texas Intermediate (WTI) crude price was $89.31, down $2.88 or 3.12% on the day, while Brent crude traded at $96.78. The current rig count, a leading indicator of future production, suggests operators may be maintaining a minimal core drilling program to hold leases and sustain base production. Historically, the number of active rigs in the Bakken formation has a direct, lagged correlation with oil output, with changes in the drilling fleet typically affecting production volumes several months later. The Bakken differential, the discount at which Bakken crude trades versus WTI, was reported at -$3.42. This pricing reflects local supply, demand, and pipeline takeaway capacity. The price of natural gas, a co-produced commodity in the region, was...

🔆Midday Wire·Jul 26

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Steady Amid Global Supply Disruptions, Bakken Differential Holds

Front-month WTI crude oil futures were trading at $89.31 per barrel on Sunday, July 26, 2026, showing no net change from the previous session, according to live market data. The international benchmark Brent crude was also flat at $96.78. The price for Bakken crude at the wellhead, reflected in the Bakken differential, held at a discount of $3.42 per barrel versus WTI. The stagnant pricing belies significant volatility and competing market forces seen throughout the week. According to a report from OilPrice.com, Brent crude topped $100 per barrel earlier in the week following attacks by Yemen's Houthis on tankers in the Bab el-Mandeb Strait. This blockade, combined with an ongoing Iranian blockade of the Strait of Hormuz, has severely restricted global oil flows. The Strait of Hormuz, which previously moved about 20 million barrels per day, has slowed to a trickle, while the Bab el-Mandeb chokepoint for Saudi oil is...

🌅Afternoon Wire·Jul 26

Rig Report

North Dakota Rig Count Holds at 23 Amid Multi-Week Decline

The number of active drilling rigs in North Dakota remained at 23 on Sunday, July 26, 2026, according to live rig data from Bakken Wire. The count showed no day-over-day movement, with no new rigs added, no rigs removed, and no rigs relocating since yesterday. However, the steady daily figure masks a broader, gradual decline in drilling activity over recent weeks. Compared to one week ago, on July 19, the rig count has fallen by two, from 25. The decline is more pronounced when viewed on a monthly basis; the current count of 23 is down three rigs from the 26 active rigs reported on June 26. A rig count in the low-to-mid 20s represents a period of stable but muted activity for the Bakken formation, North Dakota's primary oil-producing region. The count is a closely watched leading indicator of future oil production and capital investment by operators in the...

🌅Afternoon Wire·Jul 26

Pipeline & Infrastructure

Australia's Renewable Energy Shift Highlights Contrasting Global Demand Paths

The accelerating transition to renewable energy in major economies like Australia presents a complex long-term demand picture for Bakken oil and gas producers. According to a report from OilPrice.com, Australia's electricity generation from renewable sources reached 42.7% in 2025, up from 38.9% in 2024, driven by market forces and government targets. This shift is part of a national move away from coal, which accounted for nearly 80% of electricity production in 2000 but fell to 49.6% (37.5% black coal, 12.1% brown coal) by 2025. The Australian government's Renewable Energy Target (RET) scheme aims to deliver an extra 33,000 gigawatt-hours of electricity from renewable sources annually from 2020 to 2030. Daniel Westerman, CEO of the Australian Energy Market Operator (AEMO), framed the transition as an economic inevitability. “Our old coal-fired power stations are breaking down; they’re retiring,” Westerman said. “They’re getting replaced by the least-cost energy, which is renewable energy, backed...

🌅Afternoon Wire·Jul 26

Regulatory

Molten Salt Reactor Gains Key U.S. Safety Approval

The U.S. Department of Energy has approved a Nuclear Safety Design Agreement for a molten salt reactor (MSR), a first-of-its-kind regulatory step for the advanced nuclear technology, according to a report from OilPrice.com. The approval, granted this month to researchers at Abilene Christian University in Texas, establishes baseline parameters for federal authorization of construction and testing. Molten salt reactors are viewed as a potential future leader in the nuclear power sector, with proponents citing enhanced safety and economic profiles. The U.S. Department of Energy states that MSRs are designed to use less fuel, produce shorter-lived radioactive waste, and can process fuel online without lengthy refueling outages, which could make them cheaper and safer than traditional reactors. This development occurs amid a broader push for advanced nuclear power innovation from the Trump administration, which aims for "lasting American dominance in the global nuclear energy market." For the Bakken region, the advancement...

🌅Afternoon Wire·Jul 26

Global Markets

Global Inflation Fears Reawakened, Impacting Bakken Outlook

A resurgence of global inflation concerns, driven by spiking energy prices and new U.S. tariffs, could influence the operating environment for Bakken shale producers, according to a report from Rigzone. Rigzone reported on July 25 that spiking energy prices, more U.S. tariffs, and mushrooming spending on artificial intelligence are reawakening investors' inflation fears. While not specific to the Williston Basin, these macroeconomic factors have direct implications for the region's oil and gas sector. For Bakken operators, higher energy prices typically translate to improved wellhead revenues and can support increased drilling activity. However, the return of broad inflation angst introduces countervailing pressures. Inflation can drive up the costs of critical inputs like steel for casing, sand for fracking, and diesel for the extensive trucking and rig operations required in North Dakota. It also increases labor expenses and service costs across the supply chain. Furthermore, the mention of "more U.S. tariffs" introduces...

🌅Afternoon Wire·Jul 26

Global Markets

Global Tensions Spike Jet Fuel Costs as Argentina's Shale Hits Record

U.S. jet fuel costs are soaring again as the collapse of a U.S.-Iran memorandum of understanding has reignited hostilities in the Middle East and sent Brent crude prices above $100 per barrel, according to OilPrice.com. The price spike is forcing U.S. airlines to revise down their 2026 earnings expectations despite strong summer travel demand, with fuel representing one of their biggest expenses. Southwest Airlines reported that its fuel expenses jumped by $900 million year-over-year in the second quarter, representing a $1.17 headwind to adjusted earnings per share. The carrier has lowered its full-year 2026 adjusted EPS guidance to a range of $3.25 to $4.25, down from a prior expectation of at least $4.00. Similarly, American Airlines posted record quarterly revenue of $16.7 billion but noted its fuel expense surged by over $2.2 billion, or 83%, from a year earlier. The global fuel market had been tightening since March, with U.S....

🌅Afternoon Wire·Jul 26

Operator News

Global Market Shifts Favor U.S., Bakken Crude Amid International Uncertainty

Global energy service giant SLB reported that investment is broadening beyond the Middle East, a trend that could support activity in stable regions like the Bakken. According to Rigzone, the company said ongoing conflict is encouraging customers to spread investment across more regions. As a key provider of drilling and reservoir mapping services, SLB's observation signals a potential tailwind for North American basins as operators seek to diversify supply chains and capital allocation. Simultaneously, Australian producer Santos narrowed its full-year production forecast. Rigzone reported the company revised its 2026 output guidance down from 101-111 million barrels of oil equivalent to 99-105 MMboe. This adjustment comes despite the ramp-up of major projects like Barossa and Pikka, highlighting the challenges even large international operators face in meeting production targets. For Bakken operators, this underscores the competitive advantage of the basin's established, predictable drilling inventory. The third development is increased international demand for...

🌅Afternoon Wire·Jul 26

Pipeline & Infrastructure

Global Pipeline, Conflict Scenarios Highlight Energy Interdependence

International pipeline agreements and geopolitical risk assessments reported this week highlight factors influencing global energy markets, which ultimately affect the pricing environment for Bakken crude. The Chevron-led Aphrodite consortium, Cyprus Hydrocarbons Company, and Egyptian Natural Gas Holding Company have signed a memorandum of understanding to enable the piped export of 100 percent of production from the Aphrodite field offshore Cyprus to Egypt, according to Rigzone. Such infrastructure developments increase global natural gas supply, which can compete with associated gas from oil-producing regions like the Bakken. Meanwhile, analysts are modeling potential disruptions. Rystad Energy has mapped four potential U.S.-Iran conflict scenarios to assess their impact on oil prices, Rigzone reported. Any major escalation in the Middle East typically creates volatility and can spike global crude benchmarks, which directly benefits the price of Bakken crude oil. In corporate earnings, Russian gas producer Novatek posted a higher first-half revenue for 2026, but its...

🌅Afternoon Wire·Jul 26