Largest Pipeline From The Bakken is Proposed

Largest Pipeline From The Bakken is Proposed


A Calgary Based company in Canada has proposed to run the largest ever pipeline from the Bakken Shales of North Dakota to Canada, crossing over Minnesota and Wisconsin in the process...
by Gypsy Lyn  |   Tuesday, November 05, 2013
Font Size Down Font Size Up Print Bookmark this Page Email this News Download PDF

A Calgary Based company in Canada has proposed to run the largest ever pipeline from the Bakken Shales of North Dakota to Canada, crossing over Minnesota and Wisconsin in the process.  The applications for the pipeline have only been submitted to Bismark, North Dakota and the approval process for every state can be a very slow process, so time will tell if the pipeline is approved. 

The 612 mile long pipeline is expected to cost $2.6 billion dollars and employ thousands.   Not to mention, offer royalty revenue for the coordinating states and property owners.  At this point in time the proposing company is still seeking shipping commitments from oil producers, which will help fund the project. 

The objective of building the pipeline is to ultimately transport 255,000 barrels of crude oil from the Bakken Shales of North Dakota, to a hub in northern Minnesota, and then to another terminal located in Wisconsin before it reaches its final destination in Canada.  Currently, oil shipped from North Dakota is largely being done so by rail. Considering that the Bakken Shales have almost doubled production in the past two years, making the current harvest over one million barrels of crude a day.  By building pipelines, we are curbing the need for rail, which currently struggles to meet the needs of the Bakken every day.  Not only would the pipeline be financially beneficial, it would also prove efficient. 

North Dakota is expected to have three public meetings in regards to the approval process and mapping of the proposed pipeline.  In the wake of the recent pipeline leak that consumed one farmers land, officials are expecting the public to be more involved then ever before on such projects.

The company proposing the pipeline, currently is responsible for over 50,000 miles of operating pipelines.  Most of these pipelines are located in North Dakota and Minnesota, not to mention, several other lines that carry crude throughout the United States. 

It is expected to take at least three months for approval with all three states, and then another several months before crude will be free to travel from state to state via this pipeline.  However, the idea that crude transport is slowly becoming more efficient, in this day and age, when the output cannot be met with transport demands is reassuring.  Growth in the oil and gas industry is a welcome opportunity for our industry to be prosperous. 

Growth in the oil and gas industry is a welcome opportunity for our industry to be prosperous...

Print Bookmark this Page Email this News Download PDF

WHAT DO YOU THINK?

Generated by readers, the comments included herein do not reflect the views and opinions of RigHands. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Name: *
Email: *
Comments: *
Top Stories
Related News
Home  See Jobs
© Copyright 2018. RigHands. All Rights Reserved