Wednesday, August 5, 2026

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Oil Prices

Oil Prices Gain Amid Market Volatility; Bakken Differential Holds

Oil prices posted modest gains in early trading Wednesday, with West Texas Intermediate (WTI) crude rising above $76 per barrel. The increase comes amid ongoing market volatility that has generated massive trading profits for major commodity firms, according to new earnings data. As of Wednesday morning, August 5, 2026, WTI Crude was trading at $76.18, up $0.41 (0.54%). The global benchmark, Brent Crude, was at $80.28, a gain of $0.92 (1.16%). Natural gas prices saw a marginal increase to $2.69. For Bakken producers, the discount for Bakken crude at the Clearbrook, Minnesota hub was $-3.42 per barrel compared to WTI. The price movement follows a recent decline, as Rigzone reported Brent crude settled at a three-week low on Tuesday. That drop was attributed to hopes for a U.S.-Iran agreement, which raised expectations for a normalization of shipping traffic through the critical Strait of Hormuz. The extreme volatility of the past...

☀️Morning Wire·Aug 5

Rig Report

Bakken Rig Count Holds at 28, Up 5 From July

The number of active drilling rigs in North Dakota held steady at 28 on Wednesday, August 5, according to live data from Bakken Wire. The count showed no day-over-day change, with no new rigs added, removed, or relocated since Tuesday. This stability follows recent incremental gains in the state's drilling activity. Compared to one week ago, the Bakken rig count is up by two rigs from the 26 reported on July 29, 2026. The current activity level represents a more significant increase of five rigs from the 23 active rigs recorded one month ago on July 6, 2026. The steady, gradual climb in North Dakota aligns with a broader trend of increasing drilling activity across the continent. According to a report from Rigzone published August 4, North America added 16 rigs week on week, marking the third consecutive week of gains. The data, sourced from Baker Hughes' latest North America...

☀️Morning Wire·Aug 5

Daily Activity

Five New Permits Approved in Burke County; Formentera Operations Dominates

The North Dakota Department of Mineral Resources approved five new drilling permits on Tuesday, August 4, 2026, all filed by Formentera Operations LLC for wells in Burke County, according to the agency's daily activity report. The state also granted renewals for five existing permits. All five new permits, numbered 43184 through 43188, are for the PETTIGREW-16-33-PGN pad in a confidential field. The filings indicate Formentera Operations is preparing to drill a multi-well pad, with permits for the S610HX, S512HF, S614HF, S515HF, and S618HF wells. This concentrated activity highlights continued operator interest in the northwestern reaches of the Bakken formation. In the permit renewal category, five wells saw their permits extended. Burlington Resources Oil & Gas Company LP had one permit renewed for the PATTON 1A TFH well in Dunn County. Stephens Williston, LLC DBA SEG Williston, LLC secured renewals for two permits in Mountrail County: the PRATTSVILLE FEDERAL 15590-0607-2HSL and...

☀️Morning Wire·Aug 5

Pipeline & Infrastructure

Williams to Acquire Momentum Midstream in $5.5B Deal

Williams Companies has agreed to acquire Momentum Midstream from EnCap Flatrock Midstream for $5.5 billion, according to a report from Rigzone. The deal was announced on Tuesday, August 4, 2026. The divestment by private equity firm EnCap Flatrock is described as one of "the most significant private midstream transactions in the U.S.," Rigzone reported. While specific assets were not detailed in the summary, such large-scale consolidation in the midstream sector has direct implications for oil and gas producers. For Bakken shale operators, major midstream mergers can influence regional infrastructure strategy and market access. Williams is a major operator of natural gas pipelines and processing facilities, including assets that serve the Williston Basin. Consolidation among large pipeline companies often leads to expanded or more efficient gathering and processing networks. This can provide Bakken producers with more options and potentially more stable outlets for their natural gas and natural gas liquids. The...

☀️Morning Wire·Aug 5

Global Markets

China's Heatwave Demand, Export Ease Signal Global Support for Bakken Crude

China's electricity demand hit record levels this week as a severe heatwave grips key regions, according to a report from OilPrice.com citing the State Grid Corporation of China. The grid operator reported record electricity loads on Monday and Tuesday in the country's northern, northeastern, and eastern regions, with forecasts indicating high temperatures may persist. This surge in power consumption underscores the massive and growing energy needs of the world's largest crude oil importer, a key destination for global crude streams that compete with Bakken production. Simultaneously, China has partially lifted fuel export restrictions, allowing refiners to export 2.7 million tons of gasoline, diesel, and jet fuel this month, OilPrice.com reported, citing unnamed sources. This temporary easing marks a shift from stricter caps imposed after the Middle East conflict disrupted the Strait of Hormuz. The move indicates Chinese refiners are confident in domestic fuel stockpiles and are seeking to capitalize on...

☀️Morning Wire·Aug 5

Global Markets

Global Shipping Attacks, U.S. Export Curbs Tighten Energy Market

An India-flagged tanker reportedly carrying Saudi oil has sunk in the Red Sea after being hit by a projectile, according to OilPrice.com. The vessel, MSV Faize Noore Oliya, sank off the coast of Yemen on August 4, 2026. All crew members were rescued. India’s foreign ministry condemned the attack, calling the continuing incidents "deeply worrisome" and calling for an end to targeting commercial shipping. The attack underscores escalating risks in a key global trade chokepoint. OilPrice.com reported the Iran-aligned Houthis have threatened to disrupt Saudi-linked shipments in the Red Sea and its Bab el-Mandeb chokepoint. While sparing China- and Russia-linked vessels, they have targeted Saudi-linked tankers. In response, Saudi Arabia has re-routed part of its exports northward to the Suez Canal, while other vessels transit the Bab el-Mandeb Strait in "dark mode" to avoid detection. Analysts told the BBC that threats to shipping in the Gulf and Red Sea have...

☀️Morning Wire·Aug 5

Operator News

Global Energy Developments Signal Potential Market Shifts for Bakken

Polish energy giant ORLEN has opened a new transshipment terminal at its Gdansk refinery, according to Rigzone. The facility has an annual handling capacity of 1.8 million metric tons of cargo and is designed to eliminate intermediate transport for crude and products between tankers and the refinery. Meanwhile, key diplomatic talks are underway in the Middle East, a region critical to global oil supply. Saudi Arabia is engaged in behind-the-scenes diplomacy with Houthi militants in an attempt to contain renewed conflict, Rigzone reported. The effort aims to prevent clashes with the Iran-backed group from damaging the Saudi oil industry and economy. Separately, the prospect of a short-term deal between the U.S. and Iran appeared to be gaining traction as of Tuesday, according to a separate Rigzone report. The negotiations involve Qatari mediation. For Bakken operators and royalty owners, these international developments are significant as they influence the global oil market....

☀️Morning Wire·Aug 5

Pipeline & Infrastructure

Global Oil News Roundup: Aramco Profits Surge, Crescent Boosts Forecast

Saudi Aramco reported a 33 percent increase in second-quarter profit, benefiting from a war-driven surge in oil prices, according to Rigzone. The state-owned oil giant announced the financial results on August 4. Separately, Aramco stated it is looking at options to expand its oil export capacity, Rigzone reported. The company's consideration comes as conflict in Iran disrupts flows through the Strait of Hormuz and Houthi rebel activity threatens shipments in the Red Sea. In North American operations, Crescent Energy has bumped up its full-year production forecast. The company expects production to range from 327,000 to 335,000 barrels of oil equivalent per day (boed), with oil comprising 40 to 42 percent of the total, Rigzone reported on August 4. For Bakken shale producers and royalty owners, these international developments underscore the geopolitical forces influencing global crude prices. Supply disruptions in key chokepoints like the Strait of Hormuz typically create volatility and...

☀️Morning Wire·Aug 5

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Mixed as Bakken Discount Holds; Brent Gains on Supply Concerns

Oil benchmarks showed a split performance on Wednesday, with West Texas Intermediate (WTI) crude holding steady and Brent crude posting gains. The mixed movement comes amid forecasts for rising U.S. stockpiles and ongoing geopolitical tensions affecting global supply routes. As of midday Wednesday, August 5, 2026, front-month WTI was trading at $75.75 per barrel, down two cents from the prior settlement. The international benchmark Brent crude traded at $79.74, a gain of 38 cents, according to live price data. The price for Bakken crude at the Clearbrook, Minnesota, hub held a discount of $3.42 per barrel below WTI. The slight decline in WTI reflects market anticipation of another build in U.S. commercial inventories. Analysts at Macquarie strategists revealed that they are forecasting that U.S. crude inventories will be up for the week ending July 31, according to Rigzone. Such builds typically weigh on the U.S. benchmark price. In contrast, Brent's...

🔆Midday Wire·Aug 5

Regulatory

Texas RRC, University Launch New Inspector Training Program

The Texas Railroad Commission (RRC) has partnered with a university to launch a new training program for oil and gas inspectors, according to a report from Rigzone. The RRC stated the initiative "represents a major advancement" for the regulator. Details on the specific university involved or the curriculum were not disclosed in the report. The announcement was made on Wednesday, August 5, 2026. For Bakken operators, regulatory developments in major producing states like Texas are often watched as potential indicators of broader industry trends. Enhanced inspector training programs can signal a regulatory focus on compliance, operational standards, and environmental safeguards. While the program is specific to Texas jurisdiction, similar initiatives could influence regulatory approaches or expectations in other oil-producing regions, including North Dakota. The North Dakota Industrial Commission's Oil and Gas Division manages its own inspector training and certification processes for the Bakken formation. Operators in the Williston Basin must...

🔆Midday Wire·Aug 5

Global Markets

Global Energy Shift: BP Pivots Back to Oil, India Plans Fuel Levy, US Stocks Tighten

BP's corporate strategy has shifted "markedly" from its 2020 clean-energy ambitions back toward oil, gas, and shareholder returns, according to a report from OilPrice.com. CEO Meg O'Neill is seeking buyers for the company's North Sea business and its Archaea Energy biogas unit as part of a sweeping portfolio overhaul. The report states O'Neill told UK Prime Minister Andy Burnham that the country gets 75% of its energy from fossil fuels and argued the "first barrel of oil" should come from the domestic North Sea. This strategic pivot comes as O'Neill conceded BP's recent performance has not met shareholder expectations. The move away from assets like Archaea, bought for $4 billion in 2022, signals a renewed focus on core hydrocarbon returns, a sentiment closely watched by global operators including those in the Bakken. In Asia, India is considering a new funding mechanism for a massive $42-billion strategic fuel reserve program, OilPrice.com...

🔆Midday Wire·Aug 5

Operator News

Global Chokepoints Disrupt Flows, Waiver Extension Likely Amid Hormuz Talks

Global oil shipping routes remain under severe strain as diplomatic efforts to reopen the Strait of Hormuz inch forward. A draft agreement to restore transit through the critical Persian Gulf chokepoint is awaiting approval from Iran's Supreme Leader Ali Khamenei, according to the Associated Press. Two regional officials reported the draft was finalized on Wednesday, August 5, following remarks from President Donald Trump that an announcement was imminent. The proposed temporary arrangement would see ships entering the Gulf use an Iranian-administered route, while vessels exiting would use an Omani route, reviving parts of a U.S.-Iran memorandum from June that later collapsed. A major obstacle remains transit fees, with Tehran seeking 5-7% of cargo value and Oman proposing 3%, Reuters reported. Traffic through Hormuz remains a fraction of pre-war levels, with only eight ships crossing on Tuesday compared to a normal 130-140 daily, according to Kpler. Meanwhile, sustained attacks on regional...

🔆Midday Wire·Aug 5

Pipeline & Infrastructure

Midday Roundup: LNG Developments Highlight Export Infrastructure Push

Coastal Bend LNG has requested the U.S. Federal Energy Regulatory Commission to begin a pre-filing review of its Texas project, according to Rigzone. The move marks the start of the formal permitting phase for the liquefied natural gas export facility. In a separate development, ECOnnect Energy is set to deliver a Shell-backed LNG project in the Bahamas, Rigzone reported. The regasification terminal is slated to enable LNG export to New Providence by the end of the year. While these specific projects are located outside the Williston Basin, they underscore the continued global expansion of LNG infrastructure. For Bakken producers, such developments are critical for creating additional outlets for natural gas, a key byproduct of oil extraction in the formation. The growth of LNG export capacity on the Gulf Coast and internationally can influence long-term gas pricing and market access for North Dakota's energy sector. In operational news, ADNOC has deployed...

🔆Midday Wire·Aug 5

Regulatory

Market Analysts See $100 Oil, Geopolitical Talks Continue

Energy Intelligence Research (EIR) maintains its forecast for oil prices to average $100 per barrel in the second half of 2026 and into 2027, according to Rigzone. The firm stated that global oil markets remain structurally tight despite recent price volatility. Separately, diplomatic efforts are underway that could impact global supply security. Saudi Arabia is holding talks with Houthi militants in a bid to contain a renewed conflict, Rigzone reported, citing people familiar with the matter. The kingdom's goal is to prevent clashes with the Iran-backed group from hurting its oil industry and economy. In European infrastructure news, Poland's ORLEN has opened a new transshipment terminal at its Gdansk refinery, Rigzone reported. The terminal has an annual handling capacity of 1.8 million metric tons of cargo and is designed to eliminate the need for intermediate transport of crude and products between tankers and the refinery. For Bakken operators and royalty...

🔆Midday Wire·Aug 5

Production Data

Bakken Rig Count Holds at 28 as Oil Prices Show Mixed Signals

North Dakota's oil and gas activity showed signs of stabilization Wednesday, with the state's active rig count holding at 28 units. The figure, a key indicator of future production, has remained at this level for several consecutive reporting periods, according to live Bakken Wire data. The current rig count is sharply lower than the boom-era peaks of over 200 but represents a consolidation after a period of gradual decline earlier in the decade. Historically, the number of active drilling rigs is a leading indicator for oil production, with changes in the count typically impacting output levels several months later. The sustained count of 28 rigs suggests operators are maintaining a careful, capital-disciplined level of development activity. Supporting this steady operational pace are mixed but relatively stable crude oil prices. As of midday Wednesday, West Texas Intermediate (WTI) crude was trading at $75.75 per barrel, down just two cents. The international...

🔆Midday Wire·Aug 5

Workforce & Community

Bakken Rig Count Holds at 28 as Oil Prices Provide Stability

The number of active drilling rigs in North Dakota held steady at 28 on Wednesday, a level that has come to represent a stabilized operational baseline for the Bakken formation. According to Bakken Wire's live data, West Texas Intermediate crude traded at $75.75 per barrel, with the Bakken price at a differential of $-3.42 under that benchmark. Brent crude was slightly higher at $79.74. The current rig count, far below the boom-era peaks but consistent in recent quarters, indicates a mature phase of controlled activity. This equilibrium has significant implications for the region's workforce and communities. A stable rig count typically correlates with stable employment levels in both direct oilfield jobs and the extensive network of supporting services, from logistics and housing to retail and hospitality. For local economies in western North Dakota, the sustained mid-$70s oil price environment provides a foundation for municipal budgets and business planning. Prices at...

🔆Midday Wire·Aug 5

🌅Afternoon Wire4:00 PM CST

Oil Prices

WTI Slips Below $75, Bakken Differential Narrows to -$3.42

West Texas Intermediate (WTI) crude oil fell sharply Wednesday, trading down 0.92% to $75.07 per barrel. The decline significantly outpaced a minor 0.06% dip in the global Brent benchmark, which settled at $79.31, according to live price data. The key Bakken differential—the discount at which North Dakota crude trades versus WTI—stood at -$3.42. The primary pressure on U.S. prices came from expectations of rising domestic stockpiles. Strategists at Macquarie forecast that U.S. crude inventories increased for the week ending July 31, Rigzone reported. An anticipated build in supplies typically weighs on near-term pricing for the U.S. benchmark. Natural gas prices also saw slight downward movement, dipping $0.01 to $2.67 per MMBtu. The modest decline in gas, coupled with the steeper drop in oil, highlights a market focused on crude inventory dynamics. For Bakken operators, the day's price action presents a mixed but challenging picture. The nearly $1 drop in WTI...

🌅Afternoon Wire·Aug 5

Rig Report

North Dakota Rig Count Climbs to 30 with Two New Additions

The number of rigs actively drilling for oil and gas in North Dakota rose to 30 on Wednesday, August 5, according to live data from Bakken Wire. The count increased by two from the previous day, with no rigs removed or moved to new locations. The new activity came from two operators in different counties. Koda Resources Operating, LLC, spud the STONEHAM 17 well in Divide County (160-103-22). Meanwhile, Devon Energy Williston, L.L.C., added the PRONGHORN 7 well in McKenzie County (151-102-34). The latest increase continues a multi-week expansion of drilling activity in the Williston Basin. The current rig count of 30 represents a gain of four rigs compared to one week ago, when 26 rigs were active on July 29. The growth is more pronounced over the past month, with seven more rigs working now than on July 6, when the count stood at 23. The rising rig count...

🌅Afternoon Wire·Aug 5

Regulatory

Texas Regulator Teams with University on Oilfield Inspector Training

The Railroad Commission of Texas (RRC) has teamed up with a university to launch a new inspector training program, according to a report from Rigzone. The energy news service reported the development on Wednesday, August 5, 2026. The RRC stated that the new program "represents a major advancement" for the regulator, Rigzone's summary noted. Specific details on the university partner or the curriculum were not provided in the source material. For operators in North Dakota's Bakken formation, regulatory developments in major oil-producing states like Texas are often monitored as potential indicators of broader industry trends. Training and certification standards for field inspectors can influence enforcement priorities and operational compliance requirements. The Bakken Shale play is regulated by the North Dakota Industrial Commission's Department of Mineral Resources, not the Texas RRC. However, initiatives aimed at professionalizing field inspection staff may be noted by other state agencies and industry groups seeking to...

🌅Afternoon Wire·Aug 5

Global Markets

Global LPG Supply Shift, China's Central Asia Push Create New Bakken Dynamics

The effective closure of the Strait of Hormuz is reshaping global energy trade, creating a direct opportunity for U.S. liquefied petroleum gas (LPG) exporters, a sector underpinned by shale production from regions like the Bakken. According to OilPrice.com, the choke point's closure has significantly slowed LPG exports from major Middle Eastern suppliers like Saudi Arabia, the UAE, and Qatar. This disruption has tightened global supply and driven up prices. During the height of the conflict in early March, propane prices from the Texas Gulf Coast rose by almost 10%, and by mid-June, the cost per gallon was up roughly 25% from pre-war prices in February, OilPrice.com reported. The crisis underscores the market advantage for U.S. exports, which face lower risk and potentially lower insurance costs compared to shipments from the Arab Gulf. The United States is the world's leading LPG producer and exporter, a status achieved through the shale revolution....

🌅Afternoon Wire·Aug 5

Global Markets

Global Roundup: Venezuela Output Rises, India Eyes Control, Philippines Hydrogen Potential

Venezuela's oil production has surged to multiyear highs, reaching just over one million barrels per day in June 2026, according to OPEC data cited by OilPrice.com. This represents a 17.6% increase over 2025, driven by regulatory reforms, eased U.S. sanctions, and greater foreign investment following the capture of President Nicolas Maduro in early January 2026. The growth comes at a crucial time as conflict in the Middle East disrupts traffic in the Strait of Hormuz, crimping global supply. Despite the increase, Venezuela's output remains less than half of the 2.1 million barrels per day produced a decade ago. Industry experts estimate it could take up to $220 billion and at least a decade to repair heavily corroded infrastructure and return production to historic levels over two million barrels per day, OilPrice.com reported. A new petroleum law signed in July 2026 offers incentives, but experts note the oil minister retains significant...

🌅Afternoon Wire·Aug 5

Operator News

Oil Prices Fall as Strait of Hormuz Talks Progress

Oil prices extended losses for a third consecutive day on Wednesday, pressured by market optimism over potential progress toward a shipping agreement for the vital Strait of Hormuz. According to Rigzone, the ongoing talks outweighed other geopolitical risks, contributing to the downward price movement. The Strait of Hormuz is a critical maritime chokepoint for global oil shipments, and any easing of tensions can reduce the geopolitical risk premium baked into crude prices. Lower benchmark prices can directly impact the economics for Bakken producers, potentially tightening cash flow for operators and royalty owners in North Dakota. In a related development, a growing flotilla of Iranian oil tankers is idling off Iran's coast, Rigzone reported separately. The accumulation of tankers is seen as an indication that a U.S. blockade on Iranian oil exports is having a tangible effect, restricting the flow of its crude to global markets. While the blockade constrains supply...

🌅Afternoon Wire·Aug 5

Pipeline & Infrastructure

Analyst Sees Oil Holding at $100, New European Terminal Opens

Energy Intelligence Research (EIR) maintains its view that oil prices will hold around $100 per barrel in the second half of 2026 and into 2027, according to Rigzone. The firm stated that global oil markets remain structurally tight despite recent price volatility. For Bakken producers, a sustained high-price environment supports continued drilling and completion activity in the Williston Basin, though local differentials are influenced by regional pipeline and rail takeaway capacity. In a separate infrastructure development, Poland's ORLEN group has opened a new transshipment terminal at its Gdansk refinery, Rigzone reported. The terminal has an annual handling capacity of 1.8 million metric tons of cargo and is designed to eliminate the need for intermediate transport for crude and products between tankers and the refinery. While not directly connected to North Dakota, expansions in global refining and port infrastructure can affect crude oil trade flows. Enhanced import capacity at European refineries...

🌅Afternoon Wire·Aug 5

Production Data

Bakken Rig Count Holds at 30 as Oil Prices Retreat

The active drilling rig count in North Dakota held at 30 on Wednesday, a level signaling continued capital discipline among Bakken operators. The stability in rigs comes as crude oil prices saw a modest pullback, with West Texas Intermediate trading at $75.07 per barrel, according to live Bakken Wire data. The current rig count represents a fraction of the historic highs seen during the previous boom cycles. Historically, the rig count is a leading indicator for future oil production, with changes typically impacting output volumes several months later. A sustained count in the low 30s suggests that near-term Bakken production is likely to remain relatively flat. Benchmark pricing showed mixed movements. WTI crude fell 92 cents to settle at $75.07, while the international Brent benchmark saw a minor decrease of five cents to $79.31. The Bakken crude differential—the discount at which local crude trades compared to WTI—was recorded at -$3.42...

🌅Afternoon Wire·Aug 5