Skip to comments.Enbridge’s Bakken pipeline approved, National Energy Board gives it green light
Posted on 12/27/2011 7:41:35 AM PST by thackney
Enbridge Inc. has received regulatory approval for its Bakken Pipeline project, adding much needed capacity out of the prolific and pipeline-constrained U.S. play.
The $180-million pipeline will move crude from the Bakken and Three Forks formations in Montana and North Dakota to Cromer, Man., via a new pump station at Steelman, Sask.
Were pleased to receive the boards approval of our Canadian Bakken project and to be able to move forward with this component of our broader expansion plans in the Bakken in both Canada and in North Dakota, Perry Schuldhaus, Enbridge vice-president of regional pipeline development, said today. The growth potential in the region is tremendous with our existing infrastructure, and the proximity of our main line system, Enbridge is well positioned to capture opportunities created by increasing production.
The Bakken oil formation extends from the United States into parts of Alberta and Saskatchewan, and has become one of the most active plays on the continent.
Pipeline companies have not been able to keep up with the flood of production which averaged approximately 400,000 barrels per day on the U.S. side from 2,000 bpd a decade ago.
The Bakken Pipeline would connect to the Enbridge Pipelines Inc. main line and would serve as a continuous, long-term source of supply to Eastern Canadian and U.S. Midwest markets, thus maintaining the long-term competitiveness of refineries in those regions, the board said in its decision.
The energy watchdog also allowed Enbridge Bakken to buy and operate a short line, the EX-02, from Enbridge Pipelines (Westspur) Inc.
Earlier this month Enbridge said it would be investing $145 million to ship up to 70,000 bpd Bakken crude by rail between 2012 and 2013 to U.S. Midwest markets as an interim measure while it completes its Bakken expansion.
In October Enbridge also announced a $90 million US Bakken Access Program, which included increasing gathering pipeline capacities, building additional storage tanks and adding truck access facilities in western North Dakota.
Canadians have some sense about these things.
What idiot is holding up the Keystone XL crude pipeline? (Rhetorical question).
I think I have discovered the problem. We have a national energy board.
That Head Idiot in charge (HIC) of wrecking the economy of the USA.
We have a Prime Minister (Harper) who is an economist, not a constitutional law professor/community organizer. He is interested in building the Canadian economy. In Canada, as in the USA, this is fairly easy. Just apply capitalism and watch it grow. When did Americans forget this principle?
Don’t worry. This will all come into fruition in enough time to see the prices fall, and 0 get reelected.
My guess would be right around 1932.
Delivery of the pumps alone would be 40-50 weeks. With engineering, procurement and such to occur, likely start up would be 2014.
I understand rhetorical ...but
A partial list of recent times:
November 4, 2008
November 5, 1996
November 3, 1992
November 2, 1976
November 3, 1964
I understand, but just the threat of this would drop pump prices...mark my words.
must be some way President no-coal, no-oil can put a stop to this.
Perhaps the US portion...
However, the National Energy Board approved the Canadian portion of the project.
Probably not. Bakken Crude has been selling at a discount because of transportation difficulties in the region. Cutting those costs means that the producers will be getting market price for their oil instead of the split going to numerous middlemen (including trucking firms which have been hauling crude oil to Canada).
This won't be enough to completely eliminate the bottleneck, so there won't likely be any massive layoffs (crude haulers will still be needed), but it will address some of the problems with getting the oil to market.
It isn't likely that this will have a great effect on pump prices in the US.
Anyone have any oil/gas pipeline maps for the Marcellus and Utica shales in eastern OH and western PA?
Click map to enlarge, click legend to go to source
Lots of smaller, local gathering lines exist but these are the ones used to move from source to market.
The middle of the map centered around St. Louis scares the hell out of me...New Madrid earthquake.
The Alaskan Pipeline has already withstood a 7.9 on November 3, 2002.
Running a pipeline in an earthquake prone area or across a fault line isn’t something new and unknown.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.