Thursday, August 20, 2026

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Oil Prices

Oil Prices Rally on Iran Tensions, Diesel Cracks Hit Record Highs

Crude oil prices surged for a fifth consecutive day on Thursday, with international tensions and a severe products crunch pushing benchmarks higher. As of August 20, West Texas Intermediate (WTI) crude was trading at $87.14 per barrel, a gain of $2.75 (3.26%), while Brent crude rose to $94.28, up $2.66 (2.9%), according to live price data. North Dakota Bakken crude traded at a discount of $3.42 per barrel versus WTI. The rally was fueled by heightened geopolitical risk in the Middle East. According to OilPrice.com, President Donald Trump threatened Iran with an unprecedented economic pressure campaign, warning of "TREMENDOUS Economic Consequences" for any country assisting Tehran. This has dashed hopes for a near-term resumption of U.S.-Iran talks, extending the reinstated U.S. naval blockade in the Gulf of Oman that is preventing Iranian oil exports. "The blockade... is now back and effectively blockading Iran’s oil exports," Bob McNally, president of Rapidan...

☀️Morning Wire·Aug 20

Rig Report

Bakken Rig Count Holds at 33, Up 10 from July

North Dakota's active drilling rig count remained unchanged at 33 on Thursday, according to live data from Bakken Wire. The figure showed no daily movement, with no new rigs added, removed, or relocated since Wednesday. The current activity level represents a gain of two rigs from one week prior, when the state reported 31 active rigs on August 13. More significantly, the count is up by 10 rigs from just one month ago, when 23 rigs were active on July 21. The steady count comes as industry data firm Enverus released its latest rankings of the most active U.S. land drilling contractors and their customers for the first quarter of 2026, Rigzone reported on Thursday. While the specific rankings for the Bakken region were not detailed in the summary, the release of such data provides a benchmark for comparing contractor activity and operator drilling programs across major shale plays, including...

☀️Morning Wire·Aug 20

Daily Activity

DMR Approves Five New Bakken Permits, Nine Renewals Filed

The North Dakota Department of Mineral Resources approved five new drilling permits and nine permit renewals in its latest daily activity report. Petro-Hunt, L.L.C. was the most active applicant, filing for three new confidential locations in Billings County. The new permits include Petro-Hunt's 43228, 43229, and 43230, all designated for the 'CONFIDENTIAL' field. Oasis Petroleum North America LLC received permit 43227 for the IVERSON 5202 43-19 2B well in the GROUND field of McKenzie County. True Oil LLC received permit 43231 for the SUPERIOR FEDERAL 11-32 32-8 TF1H well in the BOWLINE field, also in McKenzie County. Oasis Petroleum North America LLC also accounted for all nine permit renewals filed. The renewals, 31746 through 31751, are for a series of wells named CINDY BLIKRE in the LINDAHL field of Williams County. Permit renewals allow operators to maintain their drilling rights for locations. In well completion data, Rockport Energy Solutions LLC...

☀️Morning Wire·Aug 20

Global Markets

EIA Projects 2026 Oil Crunch, 2027 Glut Amid Global Tensions

The U.S. Energy Information Administration is predicting an oil market crunch in 2026, followed by a glut in 2027, according to a report from Rigzone. This forecast for near-term tightness and subsequent oversupply creates a critical planning window for Bakken operators, who must navigate potential short-term price support against longer-term price risks. Current market dynamics are already reflecting tightening conditions. Crude oil prices gained on August 19 as refinery demand surged and tensions intensified in the Gulf, Rigzone reported. Increased consumption by U.S. refiners typically strengthens the benchmark prices that dictate Bakken crude revenues, providing a favorable near-term backdrop for North Dakota producers. Separately, a proposed Canadian liquefied natural gas project aims to capitalize on global energy instability. Firms Kino Aski and Marinvest have proposed the "Kino Aski LNG" project to establish a secure energy corridor between North America and Europe, Rigzone noted. While directly targeting the natural gas market,...

☀️Morning Wire·Aug 20

Global Markets

Global Tensions, High Prices Shape Market for Bakken Crude

U.S. President Donald Trump has threatened "tremendous economic consequences" for any country providing a "lifeline" to Iran, according to a post on his Truth Social platform reported by OilPrice.com. The threat, part of what he termed the "MOST CRUSHING ECONOMIC OPERATION EVER TAKEN," aims to isolate Iran economically by targeting oil smuggling, financial transfers, and other support mechanisms. China, which buys over 90% of Iran's sanctioned oil, is seen as a key target of the pressure campaign. The escalating U.S.-Iran tensions are contributing to sustained high global oil prices. This was highlighted by new data showing Japan's import bill hit a record $76.39 billion in July, driven by elevated crude costs, OilPrice.com reported. While Japan's crude import volumes rose only 5.5% year-over-year, the value of its oil imports surged 87.8%. Analysts cited the combination of high prices and Japan's urgent diversification away from Middle Eastern supplies since February as key...

☀️Morning Wire·Aug 20

Operator News

Geopolitical Tensions, Diesel Margins Shape Market for Bakken

President Donald Trump announced plans to subject Iran to an "economic D-Day," according to a report from Rigzone. This escalation follows an incident where three China-linked supertankers U-turned in the Strait of Hormuz, with prospects for normalized traffic dimming after the U.S. took a hard line, Rigzone separately reported. These developments underscore sustained geopolitical risk in a key global oil transit chokepoint. For Bakken operators, prolonged tension supports a risk premium in global oil prices, which can benefit local production economics. However, it also reinforces the importance of stable domestic transportation routes for crude, such as pipelines and rail out of the Williston Basin. In a related market shift, the margin for making diesel from crude oil in the U.S. has soared to more than $100 a barrel, reaching a record high, Rigzone reported. This refining margin, or "crack spread," indicates exceptionally strong demand for distillate fuels relative to crude...

☀️Morning Wire·Aug 20

Pipeline & Infrastructure

Gulf Lease Sale Tops $82MM, Saudis Maintain European Supply

A major federal offshore lease sale generated $82.6 million in high bids this week, highlighting continued investment in U.S. oil production, according to Rigzone. Separately, key global supplier Saudi Arabia is maintaining its crude exports to Europe, signaling steady near-term supply. The U.S. Department of the Interior announced the results of the "Big Beautiful Gulf 3" (BBG3) lease sale, which drew bids for 59 blocks in federal waters of the Gulf of America. The $82.6 million in high bids reported by Rigzone demonstrates sustained industry interest in domestic energy development despite a shifting regulatory landscape. In global markets, Saudi Aramco has notified at least three European refiners it will supply full contractual crude volumes in September, Rigzone separately reported. This move indicates the world's largest oil exporter is not currently tightening supplies to the region, contributing to stable international market conditions. For Bakken operators, these developments represent a mixed but...

☀️Morning Wire·Aug 20

Production Data

Bakken Rig Count Holds at 33 as Oil Prices Surge Past $87

North Dakota's Bakken formation showed signs of potential operational stability as the state's active rig count held at 33 on Thursday, August 20, 2026, against a backdrop of sharply higher crude oil prices. West Texas Intermediate (WTI) crude surged to $87.14 per barrel, a gain of $2.75, while the global Brent benchmark traded at $94.28. The Bakken crude price differential—the discount at which local oil sells compared to the WTI benchmark—was recorded at $-3.42. This relatively narrow discount improves the netback for Bakken producers, making local production more competitive. Natural gas prices were reported at $2.75 per MMBtu. The current rig count of 33, while unchanged in the latest data, remains near the lowest levels seen in the modern Bakken era, far below the peak of over 200 rigs running concurrently prior to the 2014 price crash. Historically, the rig count is a leading indicator of future oil production, with...

☀️Morning Wire·Aug 20

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

Oil Prices Rally Over $2 on Strong Diesel Margins Despite Stock Build

Oil prices posted strong gains in midday trading Thursday, with West Texas Intermediate (WTI) crude rising over 2% to breach the $86 per barrel mark. The rally comes despite a reported build in U.S. crude stocks, highlighting the market's focus on robust fuel demand, particularly for diesel. As of midday Thursday, August 20, 2026, WTI was trading at $86.46 per barrel, up $2.07 or 2.45% on the day. The global benchmark, Brent crude, followed suit, rising $1.95 to $93.57 per barrel. North Dakota's Bakken crude was priced at a differential of $3.42 below WTI, implying a local price near $83.04. Natural gas bucked the trend, trading lower at $2.73 per barrel. The primary driver for the crude price increase appears to be strength in refined product markets. According to a Rigzone report from Wednesday, the margin for making diesel from crude oil in the U.S. has soared to more than...

🔆Midday Wire·Aug 20

Operator News

Equinor Enters Namibia Offshore Exploration via Chevron Deal

Equinor has signed an agreement to acquire a 17.4 percent stake in a Namibian offshore exploration license from operator Chevron, according to Rigzone. The deal gives the company entry into Petroleum Exploration License 90 on the Namibian side of the offshore Orange Basin. This move signals a continued strategic shift for Equinor, a significant operator in North Dakota's Bakken formation, toward international exploration opportunities. The company has been steadily reducing its footprint in the Bakken in recent years, divesting assets and cutting its operated rig count. For the Bakken region, Equinor's latest investment underscores a broader trend of major operators allocating capital to high-potential international basins. The Orange Basin has seen major discoveries, attracting global investment. This can draw focus and resources away from continued development in the Williston Basin. While Equinor maintains production in North Dakota, its exploration and major capital expenditures are increasingly directed elsewhere. The company's activity...

🔆Midday Wire·Aug 20

Global Markets

Global Energy Policy Shifts Highlight Security, Cost, and Mineral Competition

China is aggressively boosting its domestic oil and gas production while leading in renewables, a dual strategy aimed at insulating its economy from global supply shocks, according to OilPrice.com. In 2025, China's crude output hit a record 216 million metric tonnes, with natural gas output rising by 10 billion cubic metres. From January to July this year, crude output increased 0.9% to 4.42 million barrels per day. The policy-driven increase is part of a broader effort to reduce reliance on imports, using discounted Russian and Iranian crude to fill strategic reserves. This has helped shield China from recent price spikes linked to Middle East conflicts. China's crude imports fell to a low of 7.8 million barrels daily in May, the lowest since 2017. The country plans to raise domestic oil and gas production to 440 million metric tonnes of oil equivalent by 2030 and expand its pipeline network by 20,000...

🔆Midday Wire·Aug 20

Operator News

Global Operators Pursue Offshore Prospects as Enverus Releases Q1 Rankings

Monumental Resources and its partners are advancing plans for a new exploration block in New Zealand's Taranaki Basin, having identified gas prospects in the prospective area, according to a report from Rigzone. The move highlights continued international investment in conventional offshore exploration. Separately, Latin America's two largest oil companies are making a significant, high-risk bet on Jurassic rock formations offshore Mexico, Rigzone reported. This frontier exploration effort underscores the industry's ongoing search for new resource plays beyond established onshore basins like the Bakken. These international developments coincide with the release of first-quarter 2026 rankings for the most active U.S. land drilling contractors and their customers. Energy analytics firm Enverus announced the publication of its latest rankings, according to Rigzone. While the specific rankings were not detailed in the summary, such data is a key benchmark for activity levels in domestic shale plays. For Bakken formation operators and service companies, the...

🔆Midday Wire·Aug 20

Pipeline & Infrastructure

Geopolitical Tensions, Saudi Minerals JV, Refinery Demand Shape Oil Outlook

Crude oil prices gained on Wednesday as tensions in the Gulf intensified and U.S. refiners boosted consumption, according to Rigzone. The demand surge from refineries provided a lift to the market, even as broader geopolitical risks added volatility. In a separate development with long-term implications for the energy transition, Saudi Arabian state-owned companies Aramco and Maaden signed an agreement to create a joint venture to explore and mine copper and other energy transition minerals domestically, Rigzone reported Thursday. The move signals a major oil producer's deepening investment in the materials critical for electrification and renewable energy infrastructure. Further adding to geopolitical uncertainty, U.S. President Donald Trump announced plans to subject Iran to what he termed an 'economic D-Day,' targeting the Islamic Republic's trade partners, according to a Thursday report from Rigzone. While details were not specified, such actions have historically contributed to volatility in global oil markets and risk premiums....

🔆Midday Wire·Aug 20

Production Data

Bakken Rig Count Holds at 33 as Oil Prices Surge Above $86

North Dakota's active drilling rig count held steady at 33 on Thursday, August 20, 2026, according to live Bakken Wire data. This figure persists as benchmark oil prices posted strong gains, with WTI crude trading at $86.46 per barrel, a daily increase of $2.07. The current rig count remains near multi-year lows for the Bakken formation. Historically, the number of active drilling rigs is a leading indicator of future oil production, as new wells must be drilled and completed to offset the steep decline rates typical of shale basins. The sustained low count suggests operators are maintaining capital discipline despite favorable prices. The day's price action saw Brent crude reach $93.57, while Bakken crude traded at a discount of $3.42 per barrel to the WTI benchmark. Natural gas prices were reported at $2.73 per MMBtu. The significant premium of Brent over WTI can influence export economics for Bakken producers. Analysts...

🔆Midday Wire·Aug 20

Workforce & Community

Bakken Rig Count Holds at 33 as Oil Prices Surge

The number of active drilling rigs in North Dakota's Bakken formation remained at 33 on Thursday, according to live data, holding steady as oil prices posted significant gains. West Texas Intermediate (WTI) crude rose $2.07 to $86.46 per barrel, a 2.45% increase. The international benchmark, Brent crude, also climbed to $93.57 per barrel. The current rig count reflects a stabilized level of drilling activity in the region. This figure, while substantially higher than the lows seen during industry downturns, remains far below the peak of over 200 rigs active in the Bakken during the early 2010s boom. The direct employment tied to drilling and completion crews is closely correlated to this rig count. Industry analysts note that the relationship between oil prices, rig activity, and local community impact in western North Dakota is direct. Sustained higher commodity prices, as seen with WTI holding above $86, provide the economic incentive for...

🔆Midday Wire·Aug 20

Regulatory

North Dakota Gas Capture Rate Hits 95%, Exceeding State Target

The North Dakota Industrial Commission's Oil and Gas Division reported the state's gas capture rate for June was 95%, exceeding the current 91% target, according to the latest monthly production report. The state has maintained a capture rate at or above 94% for over a year. The regulatory framework, established by the NDIC, sets escalating gas capture targets, with a goal of 94% by the end of 2026. Operators failing to meet these targets face curtailment orders limiting their oil production. This policy has directly incentivized significant investments in pipeline gathering infrastructure and processing plant capacity across the Bakken formation. High commodity prices are providing a favorable backdrop for these infrastructure investments. As of midday Thursday, August 20, WTI crude was trading at $86.46, a gain of $2.07. Brent crude stood at $93.57. The active rig count in the state was 33, according to live Bakken Wire data. Increased drilling...

🔆Midday Wire·Aug 20

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Rally Despite Inventory Build, Solar Growth Cited

Front-month WTI crude oil settled at $86.48 per barrel on Thursday, August 20, posting a gain of $2.09, or 2.48%. The global benchmark, Brent crude, rose $1.77 to $93.39 per barrel. Natural gas prices edged lower, down five cents to $2.77. Bakken crude traded at a discount of $3.42 per barrel below WTI. The price rally occurred despite bearish inventory data from the U.S. Energy Information Administration. According to Rigzone, the EIA's latest weekly report showed another build in commercial crude stocks, which stood at 428.8 million barrels as of August 14. The day's financial news was contrasted by a major report on the rapid growth of alternative energy. OilPrice.com reported that solar panel prices have fallen 90 percent since 2010, making solar power the cheapest form of energy on Earth. The article stated solar was the world's fastest-growing form of energy production in 2025, with installations shattering records annually....

🌅Afternoon Wire·Aug 20

Rig Report

North Dakota Rig Count Rises to 34 with New Phoenix Well

The number of active drilling rigs in North Dakota rose by one to 34 on Thursday, August 20, according to live data from Bakken Wire. The state has added three rigs over the past week and eleven rigs over the past month. The sole new rig reported was the PATTERSON 276, operated by Phoenix Operating LLC in Burke County. No rigs were removed or moved locations on Thursday. The current count of 34 rigs represents a significant increase from the 23 rigs active just one month ago on July 21, 2026. The steady upward trend highlights renewed drilling activity in the Bakken formation and wider Williston Basin. The data comes as industry analytics firm Enverus released its latest rankings of the most active U.S. land drilling contractors and their customers for the first quarter of 2026, according to a report from Rigzone. While the specific rankings for the Bakken were...

🌅Afternoon Wire·Aug 20

Operator News

Continental Resources Expands in Permian, Argentina in Major Deals

Continental Resources, the largest oil producer in North Dakota's Bakken formation, announced two major international and domestic deals on Thursday, August 20, underscoring a significant expansion beyond its core region. The privately held company is acquiring FireBird Energy II in the Permian Basin and a 50% stake in an Argentinian shale oil firm owned by Mercuria Energy Group, according to separate reports from OilPrice.com and Rigzone. The Permian acquisition adds roughly 54,000 net acres in the Midland Basin and 32,000 barrels of oil equivalent per day (boepd) of production, about 69% of which is oil, according to OilPrice.com. Continental said the deal caps an aggressive expansion, increasing its Permian acreage by more than 40% over the past 14 months. The FireBird assets include approximately 147,000 net resource acres and 307 gross operated development locations. “The Permian is integral to Continental’s portfolio,” CEO Doug Lawler said in a statement reported by...

🌅Afternoon Wire·Aug 20

Global Markets

Global Tensions, Supply Shifts Set Stage for Volatile Oil Market

Geopolitical friction between the U.S. and China is intensifying pressure on Kazakhstan, a major Central Asian oil producer and key transit state, creating new uncertainty for global energy markets that influence Bakken crude prices. According to an OilPrice.com report, the U.S. State Department has drafted an ultimatum for 35 states, including Kazakhstan, that signed a U.S.-sponsored AI cooperation pact in June. The demand requires signatories to refrain from participating in a rival China-led AI initiative or face a halt in U.S. AI cooperation. Kazakhstan, which pursues a multi-vector foreign policy balancing major powers, became a founding member of the Chinese-led World Artificial Intelligence Cooperation Organization (WAICO) in July. A draft U.S. note, reported by Reuters, states countries must "choose deliberately" and cannot be part of both initiatives, framing WAICO as a "duplicate" with conflicting expectations. For Bakken operators, instability in Kazakhstan—a significant non-OPEC producer—could threaten steady Caspian region output and...

🌅Afternoon Wire·Aug 20

Global Markets

Global Oil Tensions Rise, Europe's Reserves Tested

Global oil prices climbed to a one-month high near $94 a barrel on Thursday, driven by new U.S. threats against Iran and fears of a prolonged conflict in the Middle East, according to Rigzone. This price surge underscores the ongoing market volatility stemming from the closure of the Strait of Hormuz, a critical chokepoint for global oil and gas flows. The extended disruption has tested Europe's emergency energy systems, which have so far successfully prevented shortages of oil, diesel, and jet fuel. According to an analysis from OilPrice.com, Europe's response leveraged decades of mandatory stockholding and coordinated planning. In March, International Energy Agency (IEA) member countries, including European nations, agreed to the largest coordinated stock release in history, making 400 million barrels of emergency oil available. European members contributed approximately 107.5 million barrels of that total. A key to Europe's effective response was the composition of its release: about 68%...

🌅Afternoon Wire·Aug 20

Operator News

Global Operators Pursue New Frontiers, Minerals Deals

Major oil and gas operators are pursuing new international exploration opportunities and energy transition ventures, according to industry reports on Thursday. While these developments are outside the Williston Basin, they highlight strategic shifts that could influence long-term global competition for capital and resources. Monumental and its partners have identified gas prospects in a prospective area of New Zealand's Taranaki Basin and are closing in on a new exploration block there, Rigzone reported. The news underscores the ongoing global search for new hydrocarbon resources beyond established onshore plays like the Bakken. Separately, Latin America's two largest oil companies are betting big on a high-risk effort targeting Jurassic rocks in offshore Mexico, according to a separate Rigzone report. This move into deepwater and frontier geology represents a different investment profile compared to the mature, technology-driven development characteristic of the Bakken formation. In the realm of energy transition, Saudi state-owned companies Aramco and...

🌅Afternoon Wire·Aug 20

Production Data

North Dakota Rig Count Holds at 34 as Oil Prices Rally

North Dakota's active drilling rig count held steady at 34 on Thursday, as the Bakken's key crude benchmarks posted strong gains, according to Bakken Wire live data. West Texas Intermediate (WTI) crude settled at $86.48, up $2.09 or 2.48% for the day, while the international Brent benchmark rose to $93.39. The Bakken oil price differential, the discount at which local crude trades versus WTI, was recorded at -$3.42 per barrel. Natural gas prices were reported at $2.77 per MMBtu. The current rig count, a leading indicator of future drilling and completion activity, has remained in a narrow range in recent months. Historically, the number of active rigs in the Williston Basin is closely correlated with oil prices and operator capital budgets. A stable rig count at current elevated price levels typically signals a maintained pace of development rather than rapid expansion. Industry analysts note that a rig count in the...

🌅Afternoon Wire·Aug 20

Workforce & Community

Bakken Rig Count Holds at 34 as Strong Prices Support Regional Stability

The number of active drilling rigs in North Dakota held steady at 34, according to live Bakken data for Thursday, August 20, 2026. This operational tempo, supported by West Texas Intermediate crude trading at $86.48 per barrel, provides a baseline for the region's workforce and local economies. In the Bakken formation, the rig count is a leading indicator for direct and indirect employment. A count in the mid-30s suggests a stabilized industry posture, sustaining core oilfield jobs but without the rapid hiring surges or steep layoffs associated with more volatile periods. The current price environment, with WTI up $2.09 on the day, offers operators the economic confidence to maintain this pace of development. The relationship between drilling activity and community impact is direct. Steady rig counts support consistent demand for housing, from man-camps to rental units, helping to stabilize vacancy rates and prices in communities like Williston, Dickinson, and Watford...

🌅Afternoon Wire·Aug 20