Tuesday, September 1, 2026

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☀️Morning Wire7:00 AM CST

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Oil Prices

Oil Prices Surge on Supply Fears, Bakken Differential Holds at -$3.42

Oil prices climbed sharply in early Tuesday trading, with West Texas Intermediate (WTI) crude rising $1.89 to settle at $87.65 per barrel, a gain of 2.2%. The global benchmark, Brent crude, increased by $1.45 to $91.94. The price for Bakken crude at the Clearbrook, Minnesota, hub held a differential of -$3.42 versus WTI, according to live price data. The price surge is largely attributed to escalating geopolitical tensions threatening global supply routes. Related news reports highlight ongoing market volatility stemming from the Iran war and disrupted flows through the critical Strait of Hormuz. Market strength is being reinforced by robust physical demand from major importers. According to a report from OilPrice.com, India, the world's third-largest crude importer, is making its buying decisions primarily based on price for over 60% of its imports. Arun Kumar Singh, chairman and CEO of India’s state-owned ONGC, stated that "spot crudes are mostly decided cargo-to-cargo...

☀️Morning Wire·Sep 1

Rig Report

North Dakota Rig Count Holds at 36 for Second Straight Week

North Dakota's active drilling rig count held steady at 36 on Tuesday, September 1, 2026, according to Bakken Wire live data. The count showed no day-over-day change, with no new rigs added, none removed, and none relocated. This marks the second consecutive week of stability, as the rig count also stood at 36 on August 25. The current level represents a significant increase from activity seen just one month prior. On August 2, 2026, the state reported only 27 active rigs, meaning the count has risen by nine rigs over the past month. The sustained rig count near 40 reflects a period of measured activity for Bakken operators. After a sharp uptick in early August, drillers have paused further expansion, focusing on executing existing drilling programs. The stability suggests operators are balancing capital discipline with efforts to maintain production levels in the core areas of the Williston Basin. A rig...

☀️Morning Wire·Sep 1

Daily Activity

Burlington Resources Permits Three New McKenzie County Wells

Three new drilling permits were approved by the North Dakota Department of Mineral Resources on Monday, August 31, all filed by Burlington Resources Oil & Gas Company LP. According to the DMR Daily Activity Report, the permits are for the HBU Sandstone 9S MBH, 8S MBH, and 7S MBH wells, all located in the SE SE of Section 15-148N-98W in McKenzie County. The wells are designated for the 'CONFIDENTIAL' field, a common practice for early-stage development. Permit renewals dominated the daily report, with nine filings approved. XTO Energy Inc. renewed three permits in Dunn County: the Carus State Federal 24X-36B, 24X-36E, and 24X-36AXD wells, all in Lot 2 of Section 36-148N-97W in the Lost Bridge field, which is also listed as 'CONFIDENTIAL'. Marathon Oil Company was active with four permit renewals. Three are in Mountrail County: the Cecelia USA 11-6H in the Reunion Bay field, and the Riley USA 44-36TFH...

☀️Morning Wire·Sep 1

Global Markets

U.S. Secures Venezuelan Oil Deals as Ukraine Strikes Russian Port

A U.S.-backed firm will take control of key Venezuelan oil fields from Chinese and Russian operators, according to a report from OilPrice.com. North American Blue Energy Partners (NABEP), controlled by Venezuelan tycoon Alejandro Betancourt, has been granted 14 oil deals by Venezuela's government. The U.S. government will hold a 35% stake in NABEP and receive access to 20% of its Venezuelan production at cost, with first refusal rights on the remaining 80%. The White House stated the deal involves an ambitious plan to invest up to $100 billion to scale production. "This transaction will unleash that potential to the great benefit of both Venezuelans and Americans," Betancourt said in a statement cited by Reuters. The fields were previously operated by China's Sinopec, China National Petroleum Corp., and Russia's state-owned Roszarubezhneft. A U.S. official told Reuters the move opens the U.S. as a market for oil that was previously sent to...

☀️Morning Wire·Sep 1

Regulatory

Independent Review Finds Hemen's Offer for Northern Ocean "Not Fair"

An independent expert opinion has found that Hemen Holding Ltd.'s mandatory offer to acquire the remaining shares of drilling rig owner Northern Ocean Ltd. (NOL) is not financially fair to NOL shareholders, according to a report from Rigzone. The review, which was regulator-approved, concluded the offer "is not fair from a financial point of view to the shareholders of NOL." The development highlights the complex financial and regulatory scrutiny involved in corporate consolidation within the offshore drilling sector. Northern Ocean Ltd. owns and operates a fleet of harsh-environment offshore drilling rigs. While not a direct Bakken shale operator, the financial health and ownership structure of major drilling contractors like Northern Ocean can indirectly influence the broader oilfield services market. A consolidation deemed unfavorable to shareholders could create uncertainty around asset investment and long-term fleet readiness. For Bakken operators, stability and predictable costs in the service sector are crucial for planning...

☀️Morning Wire·Sep 1

🔆Midday Wire11:00 AM CST

The Midday Take

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Oil Prices

WTI Jumps 3% to $88.34 as Hormuz Tensions, LNG Surge Fuel Rally

Front-month WTI crude futures surged 3.01% on Tuesday, September 1, 2026, gaining $2.58 to settle at $88.34 per barrel. The global benchmark Brent crude rose 2.43% to $92.69, according to live price data. The rally was fueled by escalating geopolitical tensions in the Middle East and a sharp spike in global liquefied natural gas (LNG) prices. The key catalyst is the continued blockage of LNG traffic through the Strait of Hormuz, a critical chokepoint for global energy shipments. According to a report from OilPrice.com, Qatar’s state-owned QatarEnergy has extended its force majeure on LNG deliveries into November due to the still-blocked transits. This supply disruption sent Asian spot LNG prices to a five-month high of $24.614 per MMBtu on Tuesday. The situation intensified after the U.S. and Iran exchanged fire for the first time in over a month, reigniting fears of a broader regional conflict that could threaten all energy...

🔆Midday Wire·Sep 1

Pipeline & Infrastructure

ONEOK Acquires Brazos Midstream Assets in $4.4B Permian Deal

ONEOK has signed an agreement to acquire the natural gas gathering and processing assets of Brazos Midstream in the Permian Basin for approximately $4.425 billion in cash, according to a report from Rigzone. The deal, announced September 1, 2026, is enabled by a new $9 billion minority equity investment from Apollo Global Management. The acquisition significantly grows ONEOK's midstream footprint in the Midland Basin, a core sub-basin of the larger Permian in West Texas and New Mexico. This move represents a major capital commitment outside of ONEOK's traditional operating areas, which include a substantial presence in the Williston Basin serving Bakken shale producers. For Bakken operators and royalty owners, the transaction underscores the intense competition for midstream investment capital among North America's top oil-producing regions. While ONEOK remains a critical operator in North Dakota, large-scale financial partnerships like the one with Apollo are increasingly being deployed to capture growth in...

🔆Midday Wire·Sep 1

Global Markets

Geopolitical Alignments at SCO Summit Could Shape Long-Term Bakken Market Dynamics

The 25th anniversary summit of the Shanghai Cooperation Organization (SCO) in Bishkek, Kyrgyzstan, highlights geopolitical shifts that could influence long-term global oil markets, according to a report from OilPrice.com. The gathering, which began August 31, features prominent attendees Chinese President Xi Jinping, Russian President Vladimir Putin, and Iranian President Masoud Pezeshkian, with an agenda broadly aimed at countering U.S. global influence. For Bakken operators, the most significant discussions may be those occurring on the sidelines. Iranian President Masoud Pezeshkian is expected to seek Chinese and Russian help in blunting the impact of expanding U.S. sanctions, according to OilPrice.com. Any success in mitigating sanctions enforcement could eventually facilitate more Iranian oil onto global markets, potentially applying downward pressure on international benchmarks that influence the price of Bakken crude. The summit also underscores deepening ties between major energy producers and consumers outside traditional Western alliances. Before the summit, Xi Jinping met with...

🔆Midday Wire·Sep 1

🌅Afternoon Wire4:00 PM CST

Oil Prices

Oil Prices Surge Over 5% as Inventories Tighten, Legal Case Proceeds

Oil prices surged more than 5% Tuesday, with West Texas Intermediate (WTI) crude closing at $90.65 per barrel, a gain of $4.89, according to live price data. Brent crude rose to $95.14, up $4.65. The Bakken crude differential was $3.42 below WTI. The rally was supported by a reported draw in U.S. commercial crude inventories and continued releases from the Strategic Petroleum Reserve (SPR). The American Petroleum Institute (API) estimated that U.S. crude inventories fell by 2.6 million barrels for the week ending August 28, according to OilPrice.com. This follows a prior-week build of 4.2 million barrels. The commercial inventory draw was aided by another 3.1 million barrels leaving the SPR, bringing the reserve's total to 286.6 million barrels. OilPrice.com notes this level is approaching the generally accepted operational minimum of 250-300 million barrels. U.S. production for the week ending August 21 was reported at 13.843 million barrels per day,...

🌅Afternoon Wire·Sep 1

Rig Report

North Dakota Rig Count Holds at 36 as Devon Moves Drilling Rig

North Dakota's active drilling rig count held steady at 36 on Tuesday, September 1, 2026, with no net change from the previous day or week. According to live rig data from Bakken Wire, one rig was moved to a new location while no new rigs were added or removed. The single rig movement involved a unit operated by Devon Energy Williston, L.L.C. The rig NABORS B17 was moved to location 151-102-34 in McKenzie County, the core county of the Bakken formation. This movement reflects ongoing development activity by operators to drill new wells. The current fleet of 36 rigs represents a significant increase from one month prior. According to historical context, the state had 27 active rigs on August 2, 2026, marking a gain of nine rigs over the past four weeks. This growth period contrasts with a broader regional trend reported Tuesday. According to Rigzone, North America as a...

🌅Afternoon Wire·Sep 1

Global Markets

EU's Energy Transition Woes Could Prolong Reliance on Global Oil, Gas

The European Union's struggle to reduce its heavy reliance on China for renewable energy components could indirectly support longer-term demand for oil and gas, including crude from North Dakota's Bakken formation, according to a new analysis. As the EU grapples with this new energy security vulnerability, its path away from fossil fuels may face delays and higher costs. According to a report from OilPrice.com, the EU has replaced one critical energy dependence with another. Having moved to phase out Russian energy imports following the invasion of Ukraine, the bloc's rapid rollout of solar, wind, and battery capacity has created a new "dangerous and uncomfortable" reliance on China for solar panels, wind turbines, critical minerals, and battery materials. EU Climate Action Commissioner Wopke Hoekstra stated this dependence is a vulnerability for both Europe’s climate ambitions and its economic security. The report notes that cheaper Chinese products have flooded the EU market,...

🌅Afternoon Wire·Sep 1