Wednesday, August 12, 2026

Jump to Today

Next Day

The Afternoon Take

Energy Market Briefing

Listen

0:00 / 4:00

☀️Morning Wire7:00 AM CST

The Morning Take

Energy Market Briefing

Read Analysis →

Listen

0:00 / 3:42

Oil Prices

Oil Prices Rise on Hormuz Stalemate; Bakken Differential Widens

Oil prices climbed in morning trading on Wednesday, with Brent crude topping $89 per barrel, as a stalemate between the U.S. and Iran over control of the Strait of Hormuz continues to inject a risk premium into the market. According to live price data, West Texas Intermediate (WTI) crude was at $83.65 per barrel, up $0.45, while Brent traded at $89.21, up $0.30. The discount for Bakken crude versus WTI widened to $3.42. The price support stems from contrasting claims about the critical Middle Eastern waterway. According to a report from OilPrice.com, Iran stated on Tuesday that the Strait of Hormuz will remain closed unless the United States meets its conditions. Later the same day, U.S. President Donald Trump asserted that the United States has "total control" over the strait. Former U.S. deputy secretary of state Wendy Sherman described the situation as a stalemate, telling Bloomberg TV that a sustainable...

☀️Morning Wire·Aug 12

Rig Report

Bakken Rig Count Holds at 29, North American Activity Dips

The number of active drilling rigs in North Dakota held steady at 29 on Wednesday, August 12, 2026, according to live 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 slight pullback from activity levels seen just one week ago. On August 5, 2026, the state reported 30 active rigs, meaning the Bakken is down one rig over the past seven days. However, the longer-term trend shows modest growth compared to a month prior. On July 13, 2026, the rig count stood at 26, indicating an increase of three rigs over the last four weeks. The stability in the Bakken contrasts with a broader decline in North American drilling activity reported this week. According to Rigzone, citing data from service provider Baker Hughes, North America as a whole dropped three rigs...

☀️Morning Wire·Aug 12

Daily Activity

Burlington Resources Secures 5 New McKenzie County Permits in Single Section

The North Dakota Department of Mineral Resources approved five new drilling permits on Tuesday, all filed by Burlington Resources Oil & Gas Company LP for a single location in McKenzie County. All five permits are for the HBU Sandstone formation within the confidential 'CONFIDENTIAL' field. The permits are for wells named HBU SANDSTONE 5N MBH, 4N MBH, 3N MBH, 2N MBH, and 6S MBH. They are all located at SE SE 15-148N-98W in McKenzie County, indicating a concentrated multi-well pad development. This activity underscores continued operator focus on the core Bakken region of McKenzie County, which has long been the state's top-producing area for oil and gas. In other permitting activity, the DMR processed one permit renewal. XTO Energy Inc. renewed permit 37783 for the ROUST 34X-7C well, located at SW SE 7-154N-95W in Williams County within the 'HOFFLUND' confidential field. The filing notes the well is a "PROPOSED DRILLBACK...

☀️Morning Wire·Aug 12

Global Markets

U.S. Claims on Middle East Oil Flows Disputed by Tanker Data

U.S. Secretary of Energy Chris Wright's claim that Middle East oil flows have normalized is being contradicted by tanker-tracking data and federal analysts, introducing volatility into the global crude markets that set the price for Bakken barrels. On Tuesday, Secretary Wright stated on social media that "Thanks to the coordinated efforts of the U.S. military and our gulf allies, the seven-day average for oil leaving the Strait of Hormuz is currently up to almost 9 million barrels per day," according to OilPrice.com. He further claimed total regional flows were averaging approximately 15 million barrels per day, with over 20 million barrels leaving on Sunday alone. However, analysts and the U.S. Energy Information Administration (EIA) dispute these figures. The EIA stated in its August Short-Term Energy Outlook that it has "increased our estimates of Middle East shut-in crude oil production in the coming months... due to continued severe constraints on Strait...

☀️Morning Wire·Aug 12

Global Markets

Global Events Tighten Power, Supply Chains; Eclipse Tests UK Grid

The global energy landscape faces simultaneous pressures from geopolitics, infrastructure attacks, and even celestial events, according to reports Wednesday. These developments underscore the interconnected nature of energy markets that influence Bakken crude prices and global supply chains. In the Middle East, transit through the critical Strait of Hormuz dropped to a week-low of just eight vessels on Tuesday, according to shipping data cited by Reuters and reported by OilPrice.com. This is below the recent 10-day average of 12 vessels. The decline comes amid a standoff between the U.S. and Iran, with each offering contrasting claims over control of the waterway. Iran stated the strait will remain closed unless the U.S. ends the war and meets its conditions, while U.S. President Donald Trump claimed "total control." U.S. Secretary of Energy Chris Wright asserted Middle East oil flows have normalized, a claim that appears contradicted by the ship-tracking data. Meanwhile, a drone...

☀️Morning Wire·Aug 12

Operator News

International Energy Developments Could Impact Bakken Market Dynamics

The United Arab Emirates has offered to shuttle exports of Iraqi oil through the Strait of Hormuz, according to a report from Rigzone. Citing people familiar with the matter, Rigzone reported that Emirati state-owned company ADNOC would use its "dark-transit playbook" to transport Basrah and other crude to refiners in Asia. This development could add more Middle Eastern supply to key Asian markets, potentially influencing the global benchmark prices against which Bakken crude is often priced. Separately, production on the UK Continental Shelf (UKCS) fell in 2025 despite an increase in production efficiency, Rigzone reported, citing a revelation from the North Sea Transition Authority (NSTA). A decline in output from a mature basin like the North Sea can provide underlying support for global oil prices, which benefits all producing regions, including the Bakken. In Europe, the power system remained stable despite recent extreme weather, aided by high solar generation, Rigzone...

☀️Morning Wire·Aug 12

Pipeline & Infrastructure

Oil Gains on Hormuz Tensions as Jones Act Waiver Extended

Oil prices extended gains for a fourth consecutive session on Tuesday as market skepticism grew over a quick resolution to supply disruptions involving the Strait of Hormuz, according to Rigzone. The uncertainty supports a firmer global price environment for Bakken crude. Despite the tensions, a key supply mechanism involving shuttle transits through the strait continues to function, Rigzone separately reported. At least a dozen ships have switched to loading oil outside the immediate chokepoint, helping to maintain some flow of Middle Eastern crude to global markets. Domestically, President Donald Trump has extended a waiver of the Jones Act for 90 more days, Rigzone reported. The law typically requires cargo shipped between U.S. ports to be carried on American-built, -owned, and -crewed vessels. The extended waiver allows foreign ships to transport oil and other commodities around U.S. coasts. However, the waiver has been narrowed with new limits, according to the report....

☀️Morning Wire·Aug 12

Regulatory

Santos Loads First Alaska Oil as Brazos Plans Texas Gas Plant Expansion

Santos has begun delivering oil from a major new Alaskan development, according to Rigzone. The company loaded the first crude oil cargo from the Pikka development on Alaska's North Slope on Tuesday, August 11. The shipment is headed to the West Coast for refining. Separately, Brazos Midstream plans a significant expansion of natural gas processing capacity in the Permian Basin, Rigzone reported. The company will build a new 300 million cubic feet per day cryogenic gas processing plant in Glasscock County, Texas. This project will grow Brazos's total Midland Basin gas processing capacity to 1.1 billion cubic feet per day. The start-up of new oil production from Alaska's North Slope introduces another source of light, sweet crude into the U.S. market, potentially competing with similar grades produced in the Bakken formation. Bakken crude is also primarily shipped to West Coast refineries, meaning the new Alaskan supply could influence regional pricing...

☀️Morning Wire·Aug 12

🔆Midday Wire11:00 AM CST

The Midday Take

Energy Market Briefing

Read Analysis →

Listen

0:00 / 3:18

Oil Prices

Oil Prices Dip Slightly as EIA Reports Major Crude Inventory Build

Oil prices edged lower in midday trading Wednesday after a U.S. government report showed a massive, unexpected build in commercial crude inventories. West Texas Intermediate (WTI) crude was trading at $83.12 per barrel, down 8 cents on the day, according to live price data. The international benchmark Brent crude was at $88.64, down 27 cents. The price pressure followed the U.S. Energy Information Administration's (EIA) weekly petroleum status report, which showed commercial crude oil inventories surged by 17.4 million barrels for the week ending August 7, according to OilPrice.com. The build brings total stockpiles to 424.4 million barrels, a level just 2% below the five-year average for this time of year. The inventory data, which far exceeded analyst expectations, interrupted two days of steady price gains. OilPrice.com reported that crude futures sagged in early morning trade following the release. For Bakken operators, the price for their crude is benchmarked against...

🔆Midday Wire·Aug 12

Pipeline & Infrastructure

Phillips 66, Partners Sanction Western Gateway Pipeline to Arizona

Phillips 66 and its partners have formally sanctioned the Western Gateway pipeline project, a 1,300-mile conduit intended to move oil from Texas to Arizona, according to a report from Rigzone. The project was sanctioned on Wednesday, August 12, 2026. The pipeline, as reported by Rigzone, is designed to create a new fuel supply path originating from St. Louis, Missouri, and expanded Gulf Coast origin points, with destinations in Arizona and California. This represents a significant new piece of infrastructure aimed at serving markets in the southwestern United States. For Bakken operators, the development of new long-haul pipeline capacity out of key market hubs like St. Louis and the Gulf Coast can have indirect but important implications. Increased pipeline connectivity from these hubs to demand centers on the West Coast can help alleviate broader market congestion and provide more optionality for crude oil shipments originating in or passing through the Midwest....

🔆Midday Wire·Aug 12

Global Markets

Global Infrastructure Moves Highlight Bakken's Market Challenges

Major energy infrastructure projects advancing in the U.S. and abroad highlight the competitive landscape facing Bakken crude oil, which remains heavily reliant on rail and existing pipelines for market access. On August 12, Phillips 66 and its partners sanctioned the 1,300-mile Western Gateway oil pipeline project, according to Rigzone. The project aims to create a new fuel supply path from St. Louis, Missouri, and expanded Gulf Coast origin points to Arizona and California. This new conduit from the U.S. Gulf Coast to West Coast markets could intensify competition for Bakken producers, who have long sought more direct and cost-effective routes to similar destinations. The sanctioning of such a large-scale project underscores the continued investment in pipeline infrastructure elsewhere, while major new pipelines originating in the Bakken region have faced regulatory and legal hurdles. Simultaneously, the global LNG market is seeing significant growth, which impacts associated natural gas production in oil...

🔆Midday Wire·Aug 12

Global Markets

Global Supply Shocks Hit Metals, Oil; Gulf Lease Sale Advances

Aluminum prices hit a seven-week high in London on Wednesday after a natural gas disruption forced a major refinery to slash output, according to OilPrice.com. Norwegian producer Norsk Hydro cut production by 50% at its Alunorte alumina refinery in Brazil, one of the world's largest. The incident highlights the energy-intensive nature of refining and comes as London Metal Exchange aluminum inventories dropped to 250,000 tons, the lowest level since November 1990. Separately, Ukrainian forces have suspended drone attacks on oil tankers at Russia's Novorossiysk port following a request from U.S. Vice-President JD Vance, the Financial Times reported. The attacks had twice shut down the Caspian Pipeline Consortium (CPC), which transports crude from major Kazakh fields like Tengiz and Kashagan. The pipeline is a critical conduit for Kazakh oil, handled by international firms including Chevron, to reach European markets as an alternative to Russian supplies. The disruption caused Kazakh oil production...

🔆Midday Wire·Aug 12

Operator News

Workforce Declines, Tanker Rates Surge in Midday Energy Roundup

The U.S. oil and gas extraction workforce has reached its lowest level so far in 2026, marking a multi-year low, according to data cited by Rigzone. The report, based on Bureau of Labor Statistics figures, indicates continued pressure on industry employment nationwide. Separately, global shipping costs for crude oil have spiked. Rigzone reported that freight rates for tankers carrying oil from the Black Sea to the Mediterranean have surged to a record high. This increase in transportation costs can influence global crude pricing benchmarks, which ultimately affect the price Bakken producers receive for their oil. In a third development, the U.S. Energy Information Administration (EIA) has released its latest estimates for oil volumes moving through the world's key maritime chokepoints during the second quarter, Rigzone noted. These choke points, such as the Strait of Hormuz and the Suez Canal, are critical for global supply logistics. For Bakken operators, these disparate...

🔆Midday Wire·Aug 12

Pipeline & Infrastructure

California Refiners to Shift Crude Sources; Global Energy Updates

Sable, the operator of the Santa Ynez Unit (SYU) oil project in California, expects refiners in the state to start buying more SYU crude and rely less on imports beginning in the third quarter, according to a report from Rigzone. The report, published Wednesday, indicates the shift could begin as soon as next month. For Bakken producers, this development represents a potential headwind for one traditional market outlet, as California refiners have historically been key buyers of light sweet crude shipped from North Dakota. In other energy sector news, the European Union reported its power system remains stable despite extreme weather, aided significantly by high solar generation, Rigzone reported. The increased renewable output has helped ease pressure on electricity prices during peak daylight hours. Separately, the UK's North Sea Transition Authority (NSTA) revealed that while production efficiency on the UK Continental Shelf (UKCS) increased last year, total output fell in...

🔆Midday Wire·Aug 12

Regulatory

UAE Offers Hormuz Shuttle for Iraqi Oil as Prices Climb on Uncertainty

Oil prices extended gains this week as uncertainty persists over flows through the critical Strait of Hormuz, according to Rigzone. Traders remain skeptical that a deal will quickly restore normal shipping, supporting benchmark crude prices. In a related development, the United Arab Emirates has offered to shuttle exports of Iraqi oil through the strait. According to Rigzone, citing people familiar with the matter, Emirati state-owned company ADNOC is offering to use its "dark-transit" playbook to transport Basrah and other Iraqi crude grades to refiners in Asia. The situation underscores the persistent geopolitical risk premium in global oil markets. The Strait of Hormuz is a vital chokepoint for seaborne crude exports from the Middle East. Any prolonged disruption or heightened insurance costs for shipping can tighten global supply balances, providing upward pressure on international oil benchmarks. For Bakken shale producers in North Dakota, higher global prices directly improve the economics of...

🔆Midday Wire·Aug 12

Production Data

North Dakota Rig Count Holds at 29 as Oil Prices Stabilize

North Dakota's active drilling rig count held steady at 29 on Wednesday, a key indicator that Bakken production is likely to stabilize near current levels in the coming months. The count, a direct measure of new well development, has remained in a tight range through the summer, according to live Bakken Wire data. West Texas Intermediate crude was trading at $83.12 per barrel, down a modest $0.08 on the day. The international benchmark Brent crude was at $88.64. The Bakken crude differential—the discount at which local crude trades versus WTI—was $3.42. Natural gas prices were reported at $2.80 per MMBtu. Historically, the rig count is a leading indicator for future oil production, with a lag of several months between drilling activity and peak output from new wells. The current count of 29 rigs is significantly below the boom-era highs but represents a level that has supported a sustained production plateau...

🔆Midday Wire·Aug 12

🌅Afternoon Wire4:00 PM CST

Oil Prices

WTI, Brent Edge Lower Despite Russian Production Shortfall

Front-month WTI crude futures fell 0.71% to settle at $82.61 per barrel on Wednesday, August 12, while Brent crude declined 0.56% to $88.41. The Bakken crude differential to WTI was reported at -$3.42. Natural gas posted a modest gain, rising $0.03 to $2.80 per MMBtu. The day's price retreat occurred despite news of ongoing supply tightness from a major OPEC+ producer. According to Rigzone, Russia's crude-only production lagged behind its OPEC+ quota by almost a million barrels a day in July. This significant shortfall, however, was insufficient to counter broader market headwinds pressuring prices. For Bakken operators, the current price environment presents a stable but cautious backdrop. With WTI above $82 and the local differential relatively narrow, wells in the core of the play remain economically viable. The Bakken price at the wellhead would equate to approximately $79.19 per barrel after accounting for the differential. This level supports ongoing maintenance...

🌅Afternoon Wire·Aug 12

Rig Report

North Dakota Rig Count Rises to 30, Adds Three New Rigs

The number of active drilling rigs in North Dakota increased by one to 30 on Wednesday, according to live data from Bakken Wire. The net gain resulted from three new rigs commencing operations and two rigs being released. Three operators added new drilling rigs across the Williston Basin. Phoenix Operating LLC spud a new well with the PATTERSON 264 rig in Divide County at location 162-95-28. XTO ENERGY INC put the NOBLE 2 rig to work in McKenzie County at 153-96-3. Zavanna Energy Operating, LLC started drilling with the NABORS X28 rig in Williams County at 153-99-3. The new activity offset the departure of two rigs. Phoenix Operating LLC released the PATTERSON 280 rig from its previous location in Divide County at 162-95-28. BURLINGTON RESOURCES OIL & GAS COMPANY LP released the NABORS b20 rig from McKenzie County location 151-97-7. No rigs were reported as having moved between locations. The...

🌅Afternoon Wire·Aug 12

Pipeline & Infrastructure

Phillips 66, Partners Sanction 1,300-Mile Western Gateway Pipeline

Phillips 66 and its partners have given final investment approval to the Western Gateway pipeline project, a major new infrastructure plan to move oil from the Gulf Coast to the Southwest. According to Rigzone, the sanctioned project will stretch 1,300 miles. The pipeline is designed to create a new fuel supply path from origin points in St. Louis, Missouri, and expanded Gulf Coast locations to markets in Arizona and California. The development, reported on August 12, represents a significant new outlet for crude oil moving from the central United States. For Bakken shale operators in North Dakota, new pipeline capacity to western destinations can provide optionality for crude shipments. While the project's primary stated origins are the Gulf Coast and St. Louis, such infrastructure can influence broader midcontinent pipeline networks and pricing dynamics. The Bakken formation, a major tight oil play, has historically relied on a mix of pipelines, rail,...

🌅Afternoon Wire·Aug 12

Global Markets

Global Diesel Crunch, New Pipeline Signal Shifting Bakken Market

Global diesel prices surged this week following attacks on refineries in Russia and Saudi Arabia, exacerbating a pre-existing supply crunch and pushing U.S. diesel futures to their sharpest single-day gain since July, according to an OilPrice.com report. For Bakken operators and the North Dakota economy, which relies heavily on diesel for agriculture, freight, and oilfield operations, the sustained high prices threaten to increase operational costs and contribute to broader inflationary pressures. The report, citing Reuters, stated that diesel futures jumped 7.4% on Monday to $4.19 per gallon. The national average retail price followed, hitting $5.32 per gallon on Tuesday, up from $4.88 a month ago and $3.71 a year ago. With refining margins at record highs—the benchmark 3-2-1 crack spread has soared to over $70 per barrel from a typical sub-$20 level—the cost pressure on end-users is intensifying. "Refining margins remain elevated because every additional barrel of product has become...

🌅Afternoon Wire·Aug 12

Global Markets

Global Energy Roundup: Fusion Advances, LNG Growth, and Solar Agrivoltaics

A new framework from the Massachusetts Institute of Technology aims to tackle the economic challenges of scaling nuclear fusion, according to OilPrice.com. The framework, detailed in an August 12 press release, weighs the physical inputs and costs needed to build commercially competitive fusion power plants. This comes after a series of scientific breakthroughs, including the 2022 achievement of 'first ignition' at Lawrence Livermore National Laboratory, which proved a fusion reaction could produce more energy than it consumed. Nuclear physicist Annie Kritcher told Fortune that fusion, if achieved commercially, would require minimal materials—citing "a bathtub of seawater and a laptop battery’s size of lithium" to power one person's lifetime—and produce no long-term radioactive waste. Meanwhile, global liquefied natural gas (LNG) capacity is poised for significant expansion, driven by five major megaprojects. OilPrice.com reported on August 12 that Qatar, the U.S., and Argentina are leading this next wave. Key projects include QatarEnergy's...

🌅Afternoon Wire·Aug 12

Operator News

Global Tensions, Workforce Decline Frame Midweek Energy Landscape

Russian President Vladimir Putin threatened Wednesday to seize European ships in retaliation for EU actions against Russia's shadow oil fleet, escalating maritime tensions that could ripple through global crude logistics. According to OilPrice.com, Putin warned Moscow would "respond in kind" if European countries begin confiscating Russian ships or selling cargo from detained vessels, calling such actions "nothing less than piracy and robbery." The threat follows the EU's 21st sanctions package, adopted July 23, which added 41 vessels to its blacklist, bringing the total number of sanctioned shadow-fleet vessels to 673. The geopolitical friction is already impacting shipping economics. Freight costs for oil tankers shipping crude from the Black Sea to the Mediterranean have risen to a record, Rigzone reported Wednesday. Surging tanker rates in key export regions can influence global freight benchmarks, potentially affecting the cost structure for U.S. crude exports, including volumes from the Bakken formation. Domestically, the U.S....

🌅Afternoon Wire·Aug 12

Pipeline & Infrastructure

Global Oil Chokepoints, California Demand Shift Highlight Pipeline Dynamics

The U.S. Energy Information Administration has released its latest estimates for oil transiting the world's key maritime chokepoints in the second quarter, according to Rigzone. These global trade flows are a critical backdrop for Bakken crude, which competes in a global market where shipping constraints and alternative supply routes can impact pricing and demand for inland U.S. production. In a separate development, Sable, the operator of the Santa Ynez Unit (SYU) oil project in California, expects refiners in the state to begin buying more SYU crude starting in the third quarter, Rigzone reported. The company anticipates this will reduce the state's reliance on imported crude. For Bakken producers, any shift toward in-state California production could influence the competitive landscape for crude on the West Coast, a potential market for Bakken shipments via pipeline or rail. Meanwhile, the European Union has reported its power system remains stable despite recent extreme weather,...

🌅Afternoon Wire·Aug 12

Regulatory

Global Market Moves Highlight Geopolitical, Operational Shifts

Global regulatory and market developments reported Wednesday highlight shifting supply dynamics that can influence the competitive landscape for Bakken crude. While not directly targeting North Dakota, these moves affect the international oil market where Bakken barrels are priced. Production from the UK Continental Shelf (UKCS) fell in 2025 despite an increase in production efficiency, according to the North Sea Transition Authority (NSTA), as reported by Rigzone. A decline in output from a major non-OPEC producer like the UK can tighten global supply balances, potentially providing marginal support to international benchmark prices that are connected to Bakken crude grades. Separately, the United Arab Emirates has offered to shuttle exports of Iraqi oil through the critical Strait of Hormuz, Rigzone reported. The Emirati state-owned company ADNOC is proposing to use its "dark-transit" methods to transport Basrah and other Iraqi crude grades to refiners in Asia, according to people familiar with the matter....

🌅Afternoon Wire·Aug 12