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Hey, a Midwest oil pipeline is on the fast-track to approval! No, not Keystone…
Hot Air ^ | posted at 5:51 pm on July 19, 2013 | by Erika Johnsen

Posted on 07/19/2013 4:01:46 PM PDT by Ernest_at_the_Beach

Hey, a Midwest oil pipeline is on the fast-track to approval! No, not Keystone…

posted at 5:51 pm on July 19, 2013 by Erika Johnsen

While roving bands of eco-radicals expend their vociferous energies on doing anything and everything they can to thwart the construction of the Keystone XL pipeline win their successfully trumped-up and completely symbolic environmentalist battle, their misbegotten quest seems to ignore a burgeoning fact of the United States’ economy and energy infrastructure: Especially because of the still-growing oil-and-gas boom borne largely of hydraulic fracturing, the U.S. is going to need a lot more pipeline to cope with the increase in supply.

In terms of terrestrial transport, highly regulated pipelines are a good deal more safe, efficient, and environmentally friendly than the cars and trucks that have been in increasing use, and the current lack of pipeline is also leading to economic waste of natural gas. We need to start updating and expanding the 500,000 miles of interstate pipeline that already crisscross the continental United States, and preferably sooner than later. Via Brad Plumer:

The Energy Information Administration recently put out a report showing that U.S. transport of crude oil by rail, truck, and barge has soared by 57 percent between 2011 and 2012, surpassing 1 million barrels per day. Out in North Dakota, for instance, companies are now producing far more shale oil from the Bakken formation than existing pipelines can handle. …

In the most recent issue of Democracy, former White House energy adviser Jason Bordoff makes an extended argument that North America’s energy infrastructure has yet to catch up with growing oil and gas production in all sorts of ways. For instance, nearly one-third of the natural gas that’s produced in North Dakota is simply burned off, or “flared,” because there are no pipelines to bring it to market. (Unlike crude oil, natural gas usually can’t be shipped by truck or rail.)

What it is environmentalists think they’re going to accomplish in the long run if they succeed in killing the Keystone pipeline project, I’m not sure I’ll ever understand, but the highly selective attention is… interesting, to say the least. Via Alan Scherzagier at RCE:

A Canadian company’s plan to build an oil pipeline that will stretch for hundreds of miles through the Midwest, including through many sensitive waterways, is quietly on the fast-track to approval — just not the one you’re thinking of.

As the Keystone XL pipeline remains mired in the national debate over environmental safety and climate change, another company, Enbridge Inc. of Calgary, Alberta, is hoping to begin construction early next month on a 600-mile-long pipeline that would carry tar sands from Flanagan, Ill., about 100 miles southwest of Chicago, to the company’s terminal in Cushing, Okla. From there the company could move it through existing pipeline to Gulf Coast refineries.

The company is seeking an expedited permit review by the U.S. Army Corps of Engineers for its Flanagan South pipeline, which would run parallel to another Enbridge route already in place. Unlike the Keystone project, which crosses an international border and requires State Department approval, the proposed pipeline has attracted little public attention — including among property owners living near the planned route.



TOPICS: Business/Economy; Foreign Affairs; News/Current Events; Politics/Elections
KEYWORDS: energy

1 posted on 07/19/2013 4:01:46 PM PDT by Ernest_at_the_Beach
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To: Ernest_at_the_Beach
The Progressive Proliterate will never allow Competition with Warren Buffett's railway monopoly on shipping Canadian oil, now will placating the Enviro Wacko's and losing the Green Vote be allowed, either.

Oil Money, keeping prices high and availability under control, is used to stifle competition for the supplies, too. FOLLOW THE MONEY and ALL Regulations and Approvals/Disapprovals will show how the Gubmint works.

2 posted on 07/19/2013 4:08:14 PM PDT by traditional1 (Amerika.....Providing public housing for the Mulatto Messiah)
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To: traditional1

Proliteriate (sp.)


3 posted on 07/19/2013 4:08:41 PM PDT by traditional1 (Amerika.....Providing public housing for the Mulatto Messiah)
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To: Ernest_at_the_Beach
Pipe Dweller FAIL.

Man climbs into pipeline in protest of Enbridge Inc. in Marshall
4 posted on 07/19/2013 4:18:50 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Ernest_at_the_Beach
...see your pipeline....

..and raise you an oil refinery....

MAKOTI, N.D. — The Three Affiliated Tribes have broken ground for a $450 million oil refinery on the Fort Berthold Indian Reservation in northwestern North Dakota

The Thunder Butte Petroleum Services Refinery will be constructed in four phases over two years. A ceremonial groundbreaking was held Wednesday, after more than a decade of planning, according to The Forum and the Minot Daily News. Construction is expected to begin in August.

“We grew up poor. We were lucky if we had a pair of clean overalls,” Tribal Chairman Tex Hall said. “But our parents made sure we went to school and got educated. They did the best they could for us. They didn’t know we’d have this oil and gas resource, but now we do. It’s our responsibility to manage it, and we are.”

5 posted on 07/19/2013 4:31:04 PM PDT by spokeshave
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To: spokeshave
....Ha....a $450M oil refinery is chump change...

North Dakota corn growers are planning a $1 billion nitrogen fertilizer manufacturing plant near Grand Forks that will use natural gas currently being flared, or burned off, as an unwanted byproduct of oil production in the western part of the state, according to the Grand Forks Herald.

6 posted on 07/19/2013 4:33:47 PM PDT by spokeshave
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To: Ernest_at_the_Beach
Out in North Dakota, for instance, companies are now producing far more shale oil from the Bakken formation than existing pipelines can handle. …

That has been the case since before Keystone hit the news, and even then Keystone would not have handled the production had it been built overnight.

When people realized that, rail terminals started being constructed (Buffett bought into BNSF after that had started) to ship out the 'extra'. The absence of sufficient transport had caused prices to be discounted by as much as thirty dollars a barrel for oil which had been selling on par with WTI, which left room in the middle for anyone who could get the oil to markets to make a profit. Since the rail capacity has caught up and pipelines have been expanded, the price gap has closed somewhat. The most efficient means of transport will win out in the end, provided those means can get the oil to target markets economically.

7 posted on 07/19/2013 4:40:56 PM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: spokeshave
North Dakota corn growers are planning a $1 billion nitrogen fertilizer manufacturing plant near Grand Forks that will use natural gas currently being flared, or burned off, as an unwanted byproduct of oil production in the western part of the state, according to the Grand Forks Herald.

No gas is being flared off as an "unwanted byproduct" that will ever make it to Grand Forks.

The gas being flared off is either uneconomical to tie in via pipeline, or is waiting to be connected in (there is a huge backlog in completion services at present).

Considering the operator has to pay the State taxes on flared gas, and pay the royalties on flared gas to mineral owners whether they sell the gas or flare it at the wellsite, the decision to flare instead of tie into a pipeline is an economic one not taken lightly and one which will affect the bottom line for the producing history of the well.

8 posted on 07/19/2013 4:50:29 PM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: Ernest_at_the_Beach

9 posted on 07/19/2013 4:52:45 PM PDT by Daffynition (Stand Your Ground)
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To: Ernest_at_the_Beach; AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; ...

Thanks Ernest.
U.S. transport of crude oil by rail, truck, and barge has soared by 57 percent between 2011 and 2012, surpassing 1 million barrels per day. Out in North Dakota, for instance, companies are now producing far more shale oil from the Bakken formation than existing pipelines can handle.



10 posted on 07/19/2013 5:13:04 PM PDT by SunkenCiv (McCain or Romney would have been worse, if you're a dumb ass.)
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To: Ernest_at_the_Beach

Environmental, animal worship and property values arguments to manipulate local governments are a cover for crooked methods of competition. The Keystone XL pipeline will be needed before long. Crude oil was over $108 a barrel today. Asia is using more oil each year, which use will probably increase radical over the years to come (see 100s of millions of new drivers, continuing increases in manufacturing, etc.).


11 posted on 07/19/2013 6:21:41 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: Ernest_at_the_Beach

A few years ago, the USA was using about 20 million barrels of oil per day. More recently, the figure is a little less than 18 million due to the economic decline. When you folks see a figure about estimated oil production in the near future, consider that the figure may be exaggerated. And also consider the figures above. Just a little word for getting all of the nearby oil that we can get, including Canadian oil. It’s better than buying so much from the Middle East.

Another thing to consider. The more business done by western Canada’s oil men, the more Canada will be influenced by conservatism (nature of western Canada as compared to the east). Help to break the liberal stranglehold up north.


12 posted on 07/19/2013 6:32:55 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: spokeshave

Good for them!


13 posted on 07/20/2013 1:05:57 AM PDT by Ernest_at_the_Beach
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