Eight New Permits; Eighteen Wells Approved For Confidential Status; Three Permits Renewed; Two DUCs Reported As Being Completed -- May 12, 2026

Locator: 50793B. 

Jensen Huang is on Air Force One en route to China with President Trump.

Investing: link here. 

Comment: WTI finished the day at $102.20. This is near the high end of the trading range ($90 - $106) for WTI for 1H26; the top being $106 in the current trading range. 

I pointed this out to Gemini and Gemini added this:

Resistance Levels: While you noted a high of $106, some analysts have identified key overhead resistance levels at $102.54 and higher, with some projections testing the $105 - $108 range as technical resistance. 

Drivers: The upward pressure is heavily influenced by the continued, effective closure of the Strait of Hormuz, causing a significant reduction in global oil supply.

Me? The breakout / resistance level is $106, with "a decision point" starting at $105.

• decision point: to either buy or sell equities based on whether WTI will go significantly higher.

So, when tuning into CNBC tomorrow, look for some taking head to suggest the resistance level at $106/bbl WTI.  

Do not confuse this with dated Brent which closed today at $107.77. 

Equities, closing prices today:

• CVX: $185.95, up 0.64% today;
• COP: $117.87, up 2.01% today;
• PSX: $175.43, up 0.04% today;
• OKE: $88.43; up 0.73% today;
• MPC: $251.99; up 11.85% the past month;
• VG: up 4% for the month;
• CAT: up 15% for the month;

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Back to the Bakken 

WTI: $102.20.

Active rigs: 23.

Eight new permits, #42927 - #42934, inclusive --

• Operators: Silver Hill Energy (4); Oasis (4); 
• Fields: North Tioga; Burke County;
• Comments:
• Silver Hill Energy has permits for four Jacie W wells, lot 2, section 6-159-93; 
• to be sited 350 / 575 FNL and 1484 / 1704 FWL;
• Oasis has permits for three Tunnock wells and one Jaffa well, lot 2, section 2-153-103; 
• to be sited 759 790 FNL and 2374 /2468 FEL.

Eighteen (18) wells approved for confidential status:

• Phoenix Operating: 11
• Enerplus: 7

Three permits renewed:

• Oasis (2); and, 
• Devon Energy (1). 

One permit canceled:

• a Formentera Operations permit.

Two producing wells (two DUCs) were reported as completed:

• 40966, no ip, XTO, HBU Sakakawea Federal 13X-35A, McKenzie County; 
• 41553, no ip, XTO, HBU Baptiste Federal 34X-11C, Williams County; 
• well of interest: #17298 -- jump in production, halo effect;  

AI -- Chatbots -- A Meme -- May 12, 2026

Locator: 50792CHATBOTS. 

Whenever I mention that I am a big user of chatbots, I am reminded that chatbots are not infallible, that chatbots often make mistakes. Well, imagine that.

That's fine, that has become a meme. I think most sentient beings (with "sentient" being used in the widest meaning of the word) understand / know that chatbots are indeed fallible (Spanish: falible; propenso a errores; and, que puede fallar).  

But, wow, mainstream media (supposedly edited and proofread) and talking heads on "news" programs are much, much worse when it comes to propenso a errores.

The word I particularly dislike when it comes to AI / chatbots: slop. I think most folks are misusing and/or misunderstand that word. I know I do (misunderstand that word). I have to frequently look it up, I get so confused because of the way folks use that word. For the older generations, those born before 1951, "slop" is generally understood to the be food waste that is fed to pigs. 

I did not know this, the newer generation has another definition for slop: in modern slang, the term is applied to "slop bowls" from fast-casual restaurants (e.g., CAVA, Chipotle) which are customizable, mixed, and efficient meals.

By the way, what is the Spanish word for AI slop? It turns out, that to date, there is no one good Spanish word that captures the nuance of the American word "slop" when used with AI.

The best Spanish can do:

• basura de AI
• basura generada por AI
• contenido basura
• contenido de baja calidad
• gachupenida de AI
• vomitivo
• slop
• AI slop

If I were a Spanish teacher, teaching to English-speaking students, I know how I would spend the first two weeks. I think two weeks of intensive studying the basics of Spanish grammar one could become fluent quite quickly. 

Cramer's First Hour -- May 12, 2026

Locator: 50791CRAMER. 

An uneventful first hour. 

CPI: core year/year inflation slightly higher than expected. 

Energy: it looks like it's going to be a huge day for oil and gas. 

• Dow opening: - 100  
• S&P opening: - 30
• NASDAQ opening: - 200

WTI: up 3%; opens at $101.60

Anthropic: from several days ago. Link here. 80x vs 10x anticipated.

Three Links From Beth Yesterday -- May 12, 2026

Locator: 50790BETH. 

Nvidia: will generate more than $400 billion free cash flow across calendar 2026 and 2027, more than Apple, META, Amazon, and Google combined. Let that sink in.

Link here. 

TSM: reportedly accelerating its 3nm ramp this year -- looking to increase capacity by 40% y/y and 20% higher than original expectations.

Link here. 

Amazon: from the company -- it's going to cost a lot more to build, and the faster we grow/build, the faster the increase in CAPEX -- it typically takes 6 to 24 months to monetize what we're doing.

Link here. 

Tuesday, May 12, 2026

Locator: 50789B. 

CPI: numbers not unexpected but generally a bit higher than expected. If that makes sense. 

Tech: Mag 7 -- the decline in raw numbers will get the attention of a lot of folks but the change in percentage numbers, and particularly looking at year numbers -- not alarming. Most surprising: AAPL.

WTI: reflects Trump's comments on the ceasefire.

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Back to the Bakken

WTI: $101.40. 

New wells being reported:

• Wednesday, May 13, 2026: 27 for the month, 127 for the quarter, 284 for the year, 
• 42197, conf, Kraken, Apollo 18-7-6 7H, 
• 41451, conf, Devon Energy, Wagenman 32-29 5H, 
• Tuesday, May 12, 2026: 25 for the month, 125 for the quarter, 282 for the year, 
• 42262, conf, Petro-Hunt, John Williams 143-97-5B-8-3H, 
• 42199, conf, Kraken Operating, Turbodiesel 19-30-31-9H, 
• 41591, conf, Hess, EN-Trout-157-93-3130H-5,
• 41450, conf, Devon Energy, Wagenman 32-29 4H, 

RBN Energy: changing dynamics have the northeast gas market poised for a reawakening. Link here. Archived.

After being in virtual limbo the past couple of years, the U.S. Northeast gas market is reawakening. New pipeline development is, well, no longer a pipe dream. Pipeline projects to expand connectivity between Appalachia and demand centers are moving forward for the first time in years, including into the previously off-limits New York/New Jersey and New England market areas. Regional flow dynamics are poised to shift as expansions debottleneck production and pathways out of the Appalachia producing region, deepening seasonal patterns. At the same time, structural changes, such as coal retirements and data centers, are driving baseload demand growth in parts of the region. Today’s RBN blog begins a series evaluating the impacts of these changing fundamentals on the Northeast gas market outlook.

While all eyes in the gas market have been on the dramatic changes happening along the Gulf Coast, the Northeast has been quietly evolving in ways that will not only shift flow patterns within the region but also affect flows to the Gulf Coast. (For more on the Gulf Coast, see RBN’s Arrow Model, a proprietary analytic model that tracks and forecasts shifting gas pipeline flows in Texas and Louisiana.) Before looking ahead to the inflection points on the horizon, it’s worth considering how the Northeast got here, which is the focus of today’s blog. 

We start with some definitions. The Northeast gas market comprises 14 states (green-shaded areas in Figure 1): Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia. These states are further broken up into the demand-driven New England and Mid-Atlantic market areas, including the New York and New Jersey metros, and the Appalachia producing region, with the Marcellus/Utica shale plays situated primarily within Pennsylvania, Ohio and West Virginia. We further delineate production in Pennsylvania by northeastern counties (blue area in the inset), which yield more dry gas supply, and western and southern counties (yellow area), which yield more liquids-rich gas.

Figure 1. Northeast Gas Market Region. Source: RBN