Thursday, September 3, 2026

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☀️Morning Wire7:00 AM CST

Oil Prices

Oil Prices Surge Past $93 on Refining Crunch, Middle East Conflict

Oil prices climbed sharply on Thursday, with West Texas Intermediate (WTI) crude settling above $93 a barrel as a global shortage of refining capacity and escalating Middle East tensions tightened fuel markets. WTI for October delivery gained $2.01, or 2.21%, to close at $93.02 per barrel. The international benchmark Brent crude rose $1.62 to $97.25, according to live price data. The rally is being driven by a severe refining bottleneck, according to industry analysts. Damaged refineries in the Middle East and Russia have removed millions of barrels per day of capacity from the global system, with insufficient capacity elsewhere to offset the losses, OilPrice.com reported. "Crude is surplus globally, but there is no refining capacity available to refine it and bring it to market," said Nikhil Agarwal of Globestar Energy. The International Energy Agency (IEA) noted refinery crude throughputs in July remained nearly 5 million barrels per day below year-ago...

☀️Morning Wire·Sep 3

Rig Report

North Dakota Rig Count Holds Steady at 37, Up 9 from August

North Dakota's active drilling rig count remained unchanged at 37 for Thursday, September 3, according to live data from Bakken Wire. The count showed no new rigs added, none removed, and none that moved location since the previous day's report. The current activity level represents a notable increase from recent historical benchmarks. The rig count is up by three units from one week ago, when 34 rigs were active on August 27. More significantly, it is up by nine rigs from the count of 28 recorded one month ago on August 4. The stability at a higher plateau suggests operators in the Williston Basin are maintaining a consistent pace of development drilling. The rig count is a key leading indicator for future oil production from the Bakken formation, North Dakota's primary oil-producing region. A count in the upper 30s indicates a sustained, moderate level of investment by exploration and production...

☀️Morning Wire·Sep 3

Daily Activity

Continental Leads Bakken Permitting with Five New Williams County Wells

The North Dakota Department of Mineral Resources approved five new drilling permits on Wednesday, September 2, all filed by Continental Resources, Inc. for locations in Williams County. The permits, numbered 43281 through 43285, are for the MARYLAND FIU 7-16H, MARYLAND FIU 8-16H, NASHVILLE 6-21H, NASHVILLE 7-21H, and NASHVILLE 8-21H wells. All five are listed in a 'CONFIDENTIAL' field, according to the DMR Daily Activity Report. The report also listed 11 permit renewals. Marathon Oil Company renewed three permits (40163, 40164, 40165) for wells in McKenzie County's FOUR BEARS field. Formentera Operations, LLC renewed permit 35407 for a well in Divide County's AMBROSE field. Four new producing well completions were reported, showcasing strong initial flow rates. The most productive was Continental Resources' LOUISVILLE FEDERAL 7-7HSL well in McKenzie County, which tested at 1,241 barrels of oil per day (BOPD) and 3,240 barrels of water per day (BWPD). Petro-Hunt, L.L.C. completed two...

☀️Morning Wire·Sep 3

Global Markets

Global Gas Supply Shift as Methanex Exits New Zealand

Canadian methanol producer Methanex will halt production in New Zealand indefinitely next year due to gas supply uncertainty, according to a report from Rigzone. The company has entered into an agreement to sell its gas supply entitlements in the region. The development underscores ongoing volatility in global energy supply chains. While not directly involving Bakken hydrocarbons, such shifts in international natural gas and feedstock markets can influence broader energy sector sentiment and investment flows. For Bakken operators, the primary conduit of global market impact is the price of crude oil. North Dakota's oil production is heavily exposed to international price benchmarks like Brent and WTI. Major supply disruptions or demand shifts in one part of the world can affect these benchmarks, thereby impacting the economics of every barrel produced in the Williston Basin. The Methanex decision points to tightening natural gas supply in specific regions, which can have knock-on effects...

☀️Morning Wire·Sep 3

Regulatory

Oil Holds Near Five-Week High Amid Renewed Geopolitical Tensions

Oil prices held near a five-week high on Wednesday as renewed U.S.-Iran fighting raised fresh concerns over the security of exports through the Strait of Hormuz, according to Rigzone. The price strength, with oil holding above $90 per barrel, provides a supportive backdrop for production economics in the Williston Basin. For Bakken operators, sustained higher oil prices directly improve cash flow and can influence decisions on drilling and completion activity. The Bakken formation is North Dakota's primary oil-producing region, and its output is sensitive to global price signals driven by geopolitical events. The specific mention of the Strait of Hormuz, a critical global oil transit chokepoint, highlights the ongoing market volatility that can benefit domestic producers when global supply fears emerge. In a separate regulatory development, the Texas Railroad Commission (RRC) has named David Lindley as the new director of its Oil and Gas Division, Rigzone reported. While this appointment...

☀️Morning Wire·Sep 3

🔆Midday Wire11:00 AM CST

The Midday Take

Energy Market Briefing

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Oil Prices

Oil Holds Above $91 as Diesel Surge, Asia Demand Tighten Market

Front-month WTI crude oil held above $91 per barrel on Thursday, trading at $91.20 for a modest daily gain of 0.21%, according to midday price data. The global Brent benchmark was slightly lower at $95.48, while the discount for Bakken crude at the wellhead narrowed to $3.42 below WTI. The primary pressure on markets remains a severe global tightening of diesel and other middle distillates. According to OilPrice.com, the U.S. national average diesel price hit $5.7832 per gallon on Thursday, just three cents shy of the all-time record set in June 2022. Patrick De Haan, head of petroleum analysis at GasBuddy, stated the record could fall by Labor Day, with Gulf Coast spot prices already at new highs. The diesel crunch, a major driver for refining margins and crude demand, is attributed to crippled fuel supply from the Middle East and Russia due to ongoing conflicts, coupled with rising seasonal...

🔆Midday Wire·Sep 3

Operator News

Chevron JV Plans $7B Venezuela Investment Over Five Years

Chevron Corporation, a significant operator in North Dakota's Bakken formation, announced that its joint ventures in Venezuela plan to invest more than $7 billion over the next five years, according to a report from Rigzone. The announcement, published on September 3, 2026, outlines a substantial international capital commitment by the integrated energy giant. While the company has not provided specific details on how this investment might affect its other global assets, such announcements are closely watched by the Bakken industry for signals of shifting corporate priorities. For Bakken operators and service companies, major investment decisions by large players like Chevron can influence the broader competitive and financial landscape. Capital budgets are finite, and a multi-billion dollar, multi-year commitment to one region can lead to comparative analysis of returns on investment across a company's portfolio. The Bakken, while a mature and prolific basin, competes for capital against international opportunities and other...

🔆Midday Wire·Sep 3

Regulatory

Texas Regulator Announces Multistate Oil Theft Investigation Bust

Texas Railroad Commission (RRC) Commissioner Wayne Christian hailed a multistate 'oil theft bust' as a victory for the state's oil and gas industry, according to a report from Rigzone. The announcement, made on September 3, 2026, stems from a collaborative multistate investigation. While the specifics of the bust occurred outside North Dakota, the news underscores the persistent and costly issue of hydrocarbon theft across major producing regions. For Bakken operators, such multistate enforcement actions are a positive signal, as criminal networks often operate across state lines, targeting pipelines, wellheads, and transportation infrastructure. Theft of crude oil and condensate represents a direct financial loss for producers and royalty owners, impacting bottom lines and complicating production accounting. It also poses significant safety, environmental, and liability risks. The involvement of a state regulator like the Texas RRC in a multistate case highlights the ongoing coordination between agencies to combat these crimes. Bakken operators...

🔆Midday Wire·Sep 3

Global Markets

Russia's Export, Output Woes Tighten Global Oil Supply

Global oil markets tightened on Thursday as supply disruptions from Russia and rising global borrowing costs supported Brent crude prices above $95 per barrel, according to OilPrice.com reports. This price environment provides a supportive backdrop for North Dakota's Bakken producers, even as global economic uncertainty grows. Russian Deputy Prime Minister Alexander Novak stated the country's recent oil production dip is temporary and should reverse as refineries restart from unscheduled maintenance, OilPrice.com reported. However, consultancy Rystad Energy has revised its 2026 Russian crude production forecast down to an average of 8.95 million barrels per day (bpd), with a further decline to around 8.6 million bpd expected in 2027. "The increasing frequency and effectiveness of drone attacks on Russian oil and gas infrastructure is no longer affecting only refineries; it’s constraining the country’s upstream sector as well,” said Daria Melnik, Vice President of Oil & Gas Research at Rystad Energy, according to...

🔆Midday Wire·Sep 3

🌅Afternoon Wire4:00 PM CST

Oil Prices

WTI Tops $91 as Market Weighs Supply Disruptions Against China Demand Shift

Front-month WTI crude futures settled at $91.73 per barrel on Thursday, September 3, 2026, gaining $0.72 for the day, according to live market data. Brent crude rose $0.20 to $95.83. The price for Bakken crude at the wellhead held at a discount of $3.42 per barrel versus the WTI benchmark. The steady gains come amid ongoing market tension between persistent supply concerns and emerging signs of demand erosion in a key market. The premium for Brent over WTI widened, reflecting continued pressure on seaborne crude supplies following the Iran war and disruptions to Persian Gulf traffic through the Strait of Hormuz, as referenced in related news reports. However, a new analysis highlights a potential counterweight to those bullish supply factors. According to a report from OilPrice.com published Thursday, China's oil consumption fell 9% year-over-year in the second quarter of 2026. The Centre for Research on Energy and Clean Air (CREA)...

🌅Afternoon Wire·Sep 3

Rig Report

North Dakota Rig Count Holds at 35 Despite Two Units Coming Offline

North Dakota's active drilling rig count remained at 35 on Thursday, September 3, 2026, according to live data from Bakken Wire. The total showed no net change from the previous day despite two rigs being released and one rig moving to a new location. Two operators released their contracted drilling units. Silver Hill Energy Operating, LLC released the NABORS B27 rig from its location in Burke County (159-93-6). Separately, KODA RESOURCES OPERATING, LLC released the STONEHAM 17 rig from its location in Divide County (160-103-22). One rig was repositioned within the core Bakken region. DEVON ENERGY WILLISTON, L.L.C. moved its NABORS B 13 rig to a new location in McKenzie County (152-101-23). The current count of 35 active rigs represents a slight increase from one week ago, when the state reported 34 rigs active on August 27, 2026. The longer-term trend shows more significant growth, with the fleet up by...

🌅Afternoon Wire·Sep 3