November 16, 2016 Read More →

North Dakota Project Stands to Add to Pipeline Glut

Daniel J. Graeber for UPI:

If the pipeline isn’t completed by Jan. 1, the project consortium may have to revisit some of the contracts for shipping oil through the 1,110-mile pipeline. The institute said further that crude oil prices being about 50 percent lower than they were at the height of the U.S. shale era means the regional economic prospects are far from certain.

“If oil prices remain low and Bakken oil production continues to collapse, pipeline capacity will quickly become superfluous,” Clark Williams-Derry, a co-author of the report published by the IEEFA, said in a statement. “The Bakken oil industry has already over-invested in infrastructure for moving oil, and the Dakota Access Pipeline could simply add to the glut.”

Enbridge Energy, which is party to North Dakota pipeline infrastructure, in September said regional crude oil production was too low to support the development of the planned east-bound Sandpiper pipeline. The company in its latest quarterly results said most of its existing pipeline networks were oversubscribed.

Full article: Oil market latest pressure for Dakota Access pipeline

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