But where has that $584 mil gone? Mostly Canadian pipelines that aren't helping the Bakken I'd guess.
On Sep 23, 8:49 pm, go-devil <[EMAIL PROTECTED]> wrote: > THE BISMARCK TRIBUNE > 09-23-2008: news-opinion > > Pipeline capacity remains big N.D. oil issue > Simply put, North Dakota's daily crude oil production will surpass the > capacity, by rail and pipeline, to carry it to market by as soon as > the end of the year. > > This "bottleneck" has roots in new discoveries in the Bakken formation > in western North Dakota, development of improved technologies and > techniques for tapping that Bakken oil, continuing demand for > petroleum based products and a much higher per barrel price for crude. > > Moving crude oil to market isn't simple. Pipelines are expensive and, > to date, rightfully the province of private enterprise creatures of > supply (mostly) and demand. But the state can help provide quality > information about the Bakken formation and what levels of production > it can sustain. The state can make sure that while it protects the > environment, it also ensures permitting processes are efficient, > timely and fair. The state can use its bully pulpit to keep the > pipeline issue front and center for the petroleum industry. > > And there should at least be some discussion about incentives for > pipeline construction. > > North Dakota crude production was about 125,000 barrels per day in > 2007. By March, that figure was 147,000 barrels per day. At a field > hearing for the U.S. Senate Energy and Water Appropriations Committee > recently in Bismarck, Sen. Byron Dorgan put daily production at > 166,000 barrels per day. > > Rail and pipeline capacity for taking North Dakota crude to market: > 188,000 barrels per day. > > For a nation importing too much foreign oil and forced to accept the > terrible economic consequences, the North Dakota crude bottleneck is a > problem wanting a solution now. > > The price of crude has been astronomical, at one point nearly $150 per > barrel and now hovering at the $100 per barrel mark after spending > much of the past 15 to 20 years under $25 per barrel. The price of oil > has been rising steadily since 2003. > > The higher price makes Bakken production and pipeline expansion more > realistic. But measured, stable production from the Bakken is more > important. The pipeline companies which work off narrow margins need > to have reasonable expectations that Bakken production can keep any > new pipeline at capacity for 20 years. Reaching that conclusion, while > working with highly competitive and independent Williston Basin > marketers and producers, can be difficult. Much of the information at > stake is proprietary. And that might be one of the areas the state can > do some real good providing and facilitating the exchange of > information. > > It's not like resources haven't been spent recently on pipelines in > North Dakota. In the past three years, $584 million has gone into > pipelines in this state. > > Meanwhile, rail shipping of crude needs to expand and existing > pipelines enhanced where possible. Hopefully, pipelines already in the > planning stage will materialize. The conversation about additional > refineries needs to continue, with emphasis on free enterprise. And > the state needs to maintain a high profile for the Bakken and its > sweet crude. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Bakken Shale Discussion" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/bakken-shale-discussion?hl=en -~----------~----~----~----~------~----~------~--~---
