Monday, August 3, 2026

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Oil Prices

Oil Prices Plunge Over 5% Amid OPEC+ Quota Increase, Supply Concerns

Global oil benchmarks fell sharply on Monday, with West Texas Intermediate (WTI) crude trading at $79.29 per barrel, down $5.38 or 6.35 percent, according to live price data. Brent crude fell 5.39 percent to $83.19. The price for Bakken crude at the wellhead weakened in tandem, with its discount to WTI holding at $3.42. The steep decline follows a weekend meeting of seven OPEC+ countries who decided to boost the group's production targets by another 188,000 barrels per day starting in September, according to a statement cited by Rigzone. This move effectively completes the reversal of production cuts first agreed upon in 2023. Bearish sentiment was fueled by a report that Kuwait's oil production surged to 1.971 million barrels per day in July, up from 1.65 million bpd in June, according to OilPrice.com. This increase supports data showing more oil is moving out of the Persian Gulf, despite continued security...

☀️Morning Wire·Aug 3

Rig Report

Bakken Rig Count Holds at 27, Up 4 from Last Week

The number of active drilling rigs in North Dakota held steady at 27 on Monday, according to live rig data from Bakken Wire. There were no new rigs added, no rigs removed, and no rigs that moved location since the previous day. The current count represents a notable increase from one week ago. On July 27, 2026, the state reported 23 active rigs, meaning activity has risen by four rigs over the past seven days. Compared to one month ago, the rig count is also up by two; on July 4, 2026, there were 25 rigs operating in the state. The stability at the 27-rig level suggests a period of consolidation for operators in the Williston Basin. After adding several rigs in late July, companies appear to be maintaining their current drilling programs without immediate expansion or contraction. This plateau often reflects a balance between commodity price signals, capital expenditure...

☀️Morning Wire·Aug 3

Daily Activity

DMR Reports No New Oilfield Activity on Sunday

The North Dakota Department of Mineral Resources (DMR) reported no new activity in its daily filing system for Sunday, August 2, according to the agency's public data feed. The DMR's daily activity report typically lists new drilling permits approved, well completions reported, wells spudded (drilling commenced), and notices of well plugging. The absence of filings indicates a quiet day for regulatory submissions from operators across the Bakken formation and Williston Basin. Days with no reported activity are normal, particularly on weekends and holidays when administrative offices are closed and field reporting slows. The lack of new permits or spud notices does not necessarily reflect a halt in ongoing drilling or production operations across the state. The next report, expected later today, will provide an updated snapshot of permitting and operational activity for Monday, August 3.

☀️Morning Wire·Aug 3

Operator News

Major Bakken Operators Prioritize Debt Reduction with Record Profits

ExxonMobil Holdings Corp. and Chevron Corp., two of the largest operators in North Dakota's Bakken formation, are channeling substantial recent profits toward reducing debt, according to industry reports. This financial strategy, emerging from a period of strong earnings, highlights a shift toward balance sheet fortification over aggressive shareholder returns like share buybacks. Rigzone reported that both companies "plowed blowout profits into debt reduction rather than huge buyback increases," based on their recent financial disclosures. The move comes as Chevron Corp. separately posted record second-quarter results that outperformed expectations, according to another Rigzone report from July 31. For Bakken operators and service companies, this focus on debt reduction by industry giants signals a continued emphasis on financial resilience. The Williston Basin has seen cycles of high investment followed by cost-cutting, and the current strategy suggests a cautious approach to capital allocation. This could translate into measured, rather than explosive, growth in...

☀️Morning Wire·Aug 3

Global Markets

Supermajors BP, Shell Divest Assets in Portfolio Streamlining Push

BP has completed the sale of its Gelsenkirchen refinery in Germany to Klesch Group, a move the supermajor said Monday is part of a disciplined capital allocation strategy expected to lower its underlying operating expenditure by around $1 billion, according to OilPrice.com. The sale leaves BP with a refining portfolio of five sites in the U.S. and Europe. The transaction follows BP's formal launch of a process to market its North Sea business, accelerating an overhaul to simplify its portfolio and invest in high-return projects, OilPrice.com reported. CEO Meg O'Neill recently stated the company is taking concrete action to grow long-term value by simplifying its portfolio, reducing costs, and maintaining tight capital discipline. In a parallel move, Shell announced Monday it has signed an agreement to sell its European onshore renewables portfolio to TotalEnergies, OilPrice.com reported. The portfolio includes 0.5 gigawatts of generation capacity and a project pipeline across Italy,...

☀️Morning Wire·Aug 3

Operator News

Global Energy Moves, Price Sensitivity Follow Political Shifts

Major international energy companies are realigning their renewable energy portfolios in Europe, according to industry reports. TotalEnergies has agreed to acquire Shell's onshore renewable energy assets in Europe, Rigzone reported Monday. Concurrently, TotalEnergies will sell a 50 percent stake in a 1.2-gigawatt portfolio of largely developed onshore solar and wind projects in Europe to the investment firm KKR. While these are European transactions, they underscore the ongoing strategic shifts among integrated energy majors, some of which are active in the Bakken formation. Such corporate moves highlight the broader industry balance between hydrocarbon production and energy transition investments. Oil price volatility remains a key concern for producers. Analysts note that daily price movements are likely to remain sensitive to political rhetoric and developments, Carole Nakhle, CEO of Crystol Energy, told Rigzone in an analysis published Monday. This sensitivity directly impacts the revenue and drilling planning for operators in North Dakota's Bakken,...

☀️Morning Wire·Aug 3

Pipeline & Infrastructure

Global Oil Market Moves Set Tone for Bakken Crude Pricing

Global oil prices posted their strongest monthly gain since March, finishing July higher as geopolitical conflicts raised concerns about global crude supplies, according to Rigzone. This firming price environment provides a stronger revenue foundation for Bakken shale producers. In a separate development that could influence global crude benchmarks, Abu Dhabi National Oil Co. (ADNOC), the state oil company of the United Arab Emirates, said it would change how it prices all of its crude oil grades, Rigzone reported. While the specific mechanics of the overhaul were not detailed, such shifts in pricing methodology by a major Middle Eastern exporter can have ripple effects across the global market, indirectly affecting the differentials for landlocked crudes like those from the Bakken. The impact of higher prices was demonstrated in corporate earnings, with Australia's Woodside Energy reporting $4.19 billion in revenue for the second quarter, a 28 percent increase from the prior three-month...

☀️Morning Wire·Aug 3

Regulatory

U.S. Crude Inventories Fall Sharply in Latest EIA Report

U.S. commercial crude oil inventories fell by more than 7 million barrels last week, according to government data, signaling a significant tightening of domestic supply. The drawdown is viewed as a supportive factor for oil prices, which directly impacts the revenue of producers in the Bakken formation. The U.S. Energy Information Administration's weekly petroleum status report showed that crude stocks, excluding the Strategic Petroleum Reserve, stood at 404.5 million barrels for the week ending July 24, 2026. The data, reported by Rigzone, indicates a substantial withdrawal from storage compared to the prior week. For Bakken operators, sustained draws in national inventory levels typically reflect healthy demand or constrained supply, both of which can strengthen the price of West Texas Intermediate crude, the key benchmark for Bakken crude. Stronger prices improve cash flow for drilling and completion activities and can influence decisions to maintain or increase production levels in North Dakota....

☀️Morning Wire·Aug 3

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Crude Prices Plunge Over 5% on U.S.-Iran Diplomacy Hopes, OPEC+ Quota News

Front-month crude oil futures fell sharply in midday trading Monday, with West Texas Intermediate (WTI) dropping over 5% on news of renewed diplomatic efforts between the U.S. and Iran and a decision by some OPEC+ members to boost output. As of midday August 3, WTI was trading at $79.66 per barrel, down $5.01 or 5.92% from the previous close. The global benchmark, Brent crude, fell to $83.76, down $4.17 or 4.74%. The steep decline was triggered by President Donald Trump's announcement that he called off a planned attack on Iranian energy sites and that talks on a deal would begin this week, according to a report from OilPrice.com. This news renewed hopes for diplomacy and eased concerns about potential supply disruptions in the Strait of Hormuz, a critical chokepoint for global oil and liquefied natural gas (LNG) shipments. The report noted that European natural gas prices also plunged at the...

🔆Midday Wire·Aug 3

Global Markets

Strait of Hormuz Closure Dictates Global Oil Price, Growth Outlooks

The ongoing war with Iran has effectively closed the Strait of Hormuz to unfriendly traffic, locking the U.S. into a conflict where reopening the strait is now the primary objective, according to an analysis from OilPrice.com. Iran has stated that as long as the war continues, it will block shipments of oil, natural gas, and other key commodities except for its own and those from allies. This closure has sent global prices for these products "skyward," creating shortages worldwide. For Bakken producers, the sustained disruption of a chokepoint for roughly one-fifth of global oil and gas supplies represents a continued backdrop of elevated global price support. However, the analysis notes that a U.S. withdrawal is seen as politically untenable, creating a stalemate where the key leverage Iran holds is control of the strategic waterway. Meanwhile, a hoped-for surge of new global supply from Venezuela has failed to materialize, potentially tightening...

🔆Midday Wire·Aug 3

Operator News

Midstream Firm Pembina Posts Higher Q2 Profit Amid Global Shipping Disruptions

A major North American midstream company with significant Bakken operations reported higher quarterly earnings Monday, as global shipping disruptions highlighted the importance of stable inland infrastructure. Pembina Pipeline Corporation posted a net income of CAD 415 million for the second quarter, adjusted for nonrecurring items, marking a year-on-year increase, according to Rigzone. The earnings report from the Calgary-based operator, which runs gas processing plants and pipelines in the Williston Basin, comes amid continued volatility in global crude shipping routes. Simultaneously, a separate utility, Dominion Energy, reported a year-over-year increase in its adjusted profit, driven by its Virginia business, Rigzone noted. The stability of midstream earnings contrasts with ongoing security challenges affecting international oil transit. According to a report from OilPrice.com, the threat from Houthi forces to shipments of Saudi crude oil from the Red Sea has not abated. More tankers laden with Saudi oil are transiting the critical Bab el-Mandeb...

🔆Midday Wire·Aug 3

Pipeline & Infrastructure

Analysts Warn of Q3 Volatility, API Opposes Biofuels Bill, BP Sells Refinery

Oil market analysts are warning of a turbulent third quarter, a forecast with significant implications for Bakken crude pricing and producer hedging strategies. According to Rigzone, BMI analysts stated the near-term outlook is "highly uncertain," predicting that Q3 2026 is set for extreme volatility. For Bakken operators, such price swings can complicate drilling budgets and well completion schedules, directly affecting cash flow in the prolific North Dakota formation. In Washington, a new policy battle is forming that could influence fuel demand and refinery operations connected to Bakken crude. Rigzone reported that the American Petroleum Institute (API) opposes new Senate biofuels legislation. The bill would expand sales of higher-ethanol gasoline and grant exemptions from annual blending mandates for some small oil refineries. Changes to the Renewable Fuel Standard can alter refining economics and the blend of products made from Bakken crude oil. In a separate corporate move, BP has completed the...

🔆Midday Wire·Aug 3

Regulatory

Global Energy Deals, Geopolitical Shift Mark Start of Week

Global energy majors continued strategic portfolio adjustments Monday, with TotalEnergies agreeing to acquire Shell's onshore renewable energy assets in Europe, according to Rigzone. Concurrently, TotalEnergies agreed to sell a 50 percent stake in a 1.2-gigawatt portfolio of largely developed European solar and wind projects to investment firm KKR. Such moves by international oil companies highlight the ongoing energy transition, which influences long-term investment strategies and capital allocation decisions even for independent producers in the Bakken. In geopolitical developments, U.S. President Donald Trump announced fresh talks with Iran would begin after calling off a planned military strike, Rigzone reported. The president said the decision was made partially in response to pleas from Washington's allies in the Middle East. Renewed diplomatic engagement with Iran, a major oil producer, introduces a new variable into global crude markets. For Bakken producers, any shift that affects global supply tensions or oil price volatility directly impacts...

🔆Midday Wire·Aug 3

Production Data

Bakken Rig Count Holds at 27 as Oil Prices Retreat Sharply

North Dakota's active drilling rig count held at 27 on Monday, August 3, as the Bakken's core operators maintained development plans despite a sharp midday decline in oil prices. The stability in the rig count comes as West Texas Intermediate (WTI) crude traded at $79.66 per barrel, down $5.01 or 5.92% for the day, according to live Bakken Wire data. The Brent crude benchmark followed a similar trajectory, trading at $83.76, a drop of $4.17 or 4.74%. The Bakken crude differential—the discount at which Bakken barrels trade compared to WTI—stood at -$3.42. Natural gas prices were recorded at $2.77 per MMBtu. Historically, the active rig count is a leading indicator for future oil production in North Dakota, with a lag of several months between drilling activity and new wells contributing to output. A sustained rig count in the mid-to-high 20s has been associated with maintaining the state's production plateau, which...

🔆Midday Wire·Aug 3

Workforce & Community

Bakken Workforce Braces for Pressure as Oil Prices Plunge, Rig Count Holds

The workforce and communities in North Dakota's Bakken region face ongoing economic headwinds as crude oil prices experienced a significant midday sell-off on Monday, August 3, while drilling activity remained at a depressed level. The current rig count of 27 underscores a prolonged period of restrained operational tempo. According to live Bakken data, West Texas Intermediate (WTI) crude was trading at $79.66 per barrel, down $5.01 or 5.92% for the day. The international benchmark Brent crude fell to $83.76, a drop of $4.17. The Bakken crude differential was $-3.42 versus WTI. Natural gas held at $2.77. The relationship between oil prices, rig activity, and community impact in the Bakken is direct. The current rig count of 27 is a fraction of the historic peaks seen during previous boom cycles. This low level of drilling activity translates to reduced demand for field personnel, including roughnecks, roustabouts, and other service company employees....

🔆Midday Wire·Aug 3

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Plunge Over 5% as Geopolitical Fears Ease

Crude oil prices fell sharply on Monday, with West Texas Intermediate (WTI) dropping more than 5% to trade at $80.05 per barrel. The sell-off erased $4.62 from Friday's close, according to live price data. The global Brent benchmark followed suit, falling 5.03% to $83.51. The steep decline was driven by renewed optimism over negotiations concerning the Strait of Hormuz, a critical global oil chokepoint, which eased fears of prolonged supply disruptions, Rigzone reported. The price drop coincides with a decision by seven OPEC+ countries, who met virtually on August 2, 2026, to review market conditions and boost their production quota, according to a separate Rigzone summary. For Bakken producers, the day's price action is compounded by a widening differential. Bakken crude was trading at a discount of $3.42 per barrel below the WTI benchmark, meaning Bakken barrels were effectively priced near $76.63. The dramatic price pullback arrives even as the...

🌅Afternoon Wire·Aug 3

Rig Report

Bakken Rig Count Rises to 28 with Two New Rigs Reported

The number of active drilling rigs in North Dakota increased to 28 on Monday, August 3, according to live rig data. The count reflects a net gain of one rig from the previous day, with two new rigs reported and one rig removed from operations. Two operators added new rigs to the field. Koda Resources Operating, LLC spud the STONEHAM 16 in Divide County at location 161-102-36. Hunt Oil Company commenced drilling at the T&S DRILLING 1 well in Mountrail County at location 156-90-13. One rig was released from service. Koda Resources Operating, LLC removed the STONEHAM 17 rig from its previous location at 160-103-22 in Divide County. Two rigs were moved to new locations within the Williston Basin. Phoenix Operating LLC relocated its T&S DRILLING 2 rig to 160-98-14 in Divide County. Devon Energy Williston, L.L.C. moved the NABORS B6 rig to 151-100-35 in McKenzie County. The current rig...

🌅Afternoon Wire·Aug 3

Global Markets

Global Energy Shifts, Russia's Struggles Present Complex Backdrop for Bakken

The United States is focusing on enhanced geothermal and next-generation nuclear power to counter China's clean energy dominance, a strategic pivot with long-term implications for fossil fuel demand. According to an OilPrice.com report, the Trump administration has doubled down on these technologies as part of a strategy for energy security, moving away from broader clean energy supports. While China outspent the rest of the world combined on clean energy from 2019-2025, investing over $500 billion, the U.S. invested $236 billion in the same period. This U.S. technological push coincides with sustained military and economic pressure on Russia, a major global oil competitor. Another OilPrice.com source details that Ukrainian drone attacks have damaged nearly 43% of Russia's operating refinery capacity since the start of 2026, following a concentrated blitz that began in August 2025. These attacks have created significant logistical and economic chaos within Russia, even pushing the country's largest online...

🌅Afternoon Wire·Aug 3

Global Markets

Global Conflicts Disrupt Energy Flows as Utility Reports Profit Rise

Russian crude oil processing plummeted to its lowest level in more than two decades in July due to an intensified Ukrainian drone campaign, according to analysis cited by OilPrice.com. Refineries processed an estimated 3.6 million barrels per day, the lowest monthly figure since May 2002 and roughly one-third below the seasonal average. This marks a steep drop from the typical 5.3 to 5.6 million barrels per day processed in July between 2020 and 2025. Ukraine struck 18 Russian refineries in July alone, setting a new monthly record and surpassing the previous high of 17 attacks set in May. Targets included major infrastructure such as the 440,000-barrel-per-day Omsk refinery—Russia's largest—located over 2,500 kilometers from Ukraine. In total, Bloomberg counted 30 attacks on Russian oil infrastructure in July, including strikes on five large oil tankers, five pieces of port infrastructure, and two pipelines. The sustained attacks have forced significant changes in Russian...

🌅Afternoon Wire·Aug 3

Operator News

Midstream Profit Rises Amid Warnings of Q3 Volatility, Biofuels Fight

North American midstream company Pembina reported higher second-quarter profits, according to financial results released Monday. The company posted CAD 415 million in net income adjusted for nonrecurring items for the quarter, a year-on-year increase, Rigzone reported. Pembina operates key gas processing and pipeline infrastructure in the Bakken formation, and its financial health is a key indicator of midstream capacity and fee-based revenue stability for Williston Basin producers. Separately, oil market analysts are warning of a turbulent period ahead for crude prices. The near-term outlook is "highly uncertain," according to analysts from BMI cited by Rigzone. They stated that the third quarter is set for extreme volatility. For Bakken operators, such forecasts underscore the challenges in planning capital expenditures and hedging production in an unpredictable price environment, which can directly impact drilling budgets and well completion schedules in North Dakota. In Washington, a new policy battle is emerging that could affect...

🌅Afternoon Wire·Aug 3

Pipeline & Infrastructure

Majors' Asset Shifts, Price Volatility Highlight Energy Transition Pressures

Global energy majors announced portfolio adjustments in Europe on Monday, highlighting a continued strategic focus on capital discipline and the energy transition. These moves by international players come as Bakken operators navigate a volatile price environment sensitive to political developments. BP has completed the sale of its German refinery to Klesch Group, according to Rigzone. The company stated the transaction supports its "continued focus on disciplined capital allocation" and is expected to lower its underlying operating expenditure by approximately $1 billion. Separately, TotalEnergies has agreed to acquire Shell's onshore renewable energy assets in Europe, Rigzone reported. In a concurrent move, TotalEnergies also agreed to sell a 50 percent stake in a 1.2-gigawatt portfolio of largely developed European onshore solar and wind projects to investment firm KKR. For Bakken producers, these asset rotations by supermajors underscore the broader industry trend of portfolio optimization. Capital discipline and managing operational costs, as demonstrated...

🌅Afternoon Wire·Aug 3

Production Data

Bakken Rig Count Holds at 28 as Oil Prices Retreat Sharply

North Dakota's oil production faces near-term pressure as a sharp drop in oil prices coincides with a stagnant rig count, according to live market and activity data. The number of active drilling rigs in the state held at 28 on Monday, August 3, while West Texas Intermediate crude prices fell $4.62 to settle at $80.05 per barrel. The current rig count remains near historic lows for the Bakken play, a level that analysts say is insufficient to sustain production growth. The Brent crude benchmark also fell sharply, dropping 5.03% to $83.51. The price for Bakken crude at the wellhead is further discounted, trading at a $3.42 differential below WTI. Historically, the rig count serves as a leading indicator for future oil production, with a lag of several months between drilling activity and new wells coming online. A sustained rig count in the high 20s suggests that operators are maintaining only...

🌅Afternoon Wire·Aug 3

Workforce & Community

Bakken Rig Count Holds at 28 Amid Sharp Oil Price Drop

The active drilling rig count in North Dakota held steady at 28 for the week, according to Bakken Wire's live data. This level of activity provides a key indicator of employment and economic activity for the region's oilfield workforce and service companies. The stability comes despite a significant drop in oil prices. West Texas Intermediate crude fell $4.62 to settle at $80.05 per barrel, a decline of 5.46%. The international Brent benchmark also fell 5.03% to $83.51. The price for Bakken crude at the wellhead is typically discounted against WTI; the current differential is -$3.42. Historically, the number of active drilling rigs is a leading indicator for direct oilfield employment. A stable rig count suggests a consistent demand for drilling crews, rig operators, and related service personnel. The current count of 28 rigs represents a fraction of the peak activity seen during previous boom cycles but indicates sustained, moderate operations....

🌅Afternoon Wire·Aug 3