[GraceG]

Instead of building a pipline to houston why not build a refinery complex in North Dakota?

[Hiddigeigei]

Instead of building a pipeline to Houston why not build a refinery complex in North Dakota?

Good question, which I have asked myself! Off the top of my head, I can think of several answers.

1. It would take considerable time to get the permits to build and build a huge refinery in North Dakota.
2. The Canadian and Bakken region oil will largely replace foreign imported oil brought in by tankers to the existing refineries on the Gulf Coast; refineries with adequate capacity to handle the oil and an existing distribution system in place.

There may be other reasons.

[LucianOfSamasota]

Grace,

The proposed project contemplated capital expenditures of several billion dollars. My understanding is that the intention is to transport oil mined from Canadian oil sands to existing refineries on the Texas Gulf Coast. I think transportation of Bakken/Three Forks oil from North Dakota/Montana is also in the mix?

I don’t know how much it costs to develop new refineries and associated infrastructure (rail links, highways, navigable waterways, skilled workforce, etc.) or whether the EPA would even allow a new refinery (I’ve heard one cannot obtain a license). But I am certain that the folks spending $2 billion US are pursuing what they believe to be the most feasible approach.

If you know otherwise, I’d be delighted to hear.