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North Dakota aims to double pipeline capacity; Enterprise helps
Reuters ^ | Jun 24, 2014 | ERNEST SCHEYDER

Posted on 06/30/2014 6:06:57 AM PDT by thackney

North Dakota intends to nearly double its oil and gas pipeline capacity within two years as part of a plan to curb the wasteful flaring of natural gas in the bustling Bakken oil field, the state's governor said on Tuesday.

Oil production in North Dakota has more than tripled in the past decade to 1 million barrels of oil equivalent (boepd) per day, making for the fastest-growing U.S. state economy.

But state pipeline capacity has lagged. Governor Jack Dalrymple said the state wants to boost capacity to 1.4 million boepd by 2016 from about 780,000 boepd now.

"We will reduce flaring," the Republican governor told executives, regulators and investors at a pipeline summit he hosted in the state's capital. "It's just that simple."

Producers in the Bakken, one of the top U.S. oil patches, must burn gas from wells beyond the reach of collection systems, instead of sending it to cities to heat homes. The dearth of pipelines also means that most Bakken crude moves by rail to refineries, which is more costly and can be more dangerous.

Dalrymple's overtures resonated with Enterprise Products Partners LP, which said it plans to build a 1,200-mile (1,900-kilometer) pipeline from North Dakota's Bakken oil fields to Cushing, Oklahoma. It would be the first of its kind.

Other pipeline companies have balked at building in the Bakken. Many refiners prefer using rails to tap a variety of cheap inland crudes, giving them more flexibility than pipelines, which lock refiners into long terms.

Dalrymple, who described himself as the pipeline industry's cheerleader, promised regulations and other measures to promote more pipeline development, helping decrease reliance on trucking and railroads.

"Although rail has played a critical role to market our petroleum, over the long term we're looking for the safest way to market our product," he...

(Excerpt) Read more at ...

TOPICS: News/Current Events; US: North Dakota
KEYWORDS: bakken; energy; oil; pipeline

1 posted on 06/30/2014 6:06:57 AM PDT by thackney
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To: thackney
The reporter is missing out that building a pipeline is just one step of the process. Natural gas just does not flow from the well to be flared, “instead of sending it to cities to heat homes”.

After the collection system comes refining. Then you need to connect into other distribution systems, before it is sent into residential or commercial pipes.

I have heard that most Bakken gas is low pressure and needs cleaning. Almost the opposite of some light crude that is full of gas.

2 posted on 06/30/2014 6:31:53 AM PDT by texas booster (Join FreeRepublic's Folding@Home team (Team # 36120) Cure Alzheimer's!)
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To: thackney

Great, but my question is this, with all of this oil and natural gas why are we paying more at the pump and home? Answer is it the corruption in the white house? With the EPA running wild on policy? We should be paying less at the pumps but since the clown got elected we are being raped and pillaged. 2008 gas prices at the pump 1.86 per gallon.

3 posted on 06/30/2014 6:33:50 AM PDT by Busko (The only thing that is certain is that nothing is certain.)
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To: thackney

But which Enterprise? Kirk’s or Picard’s?

4 posted on 06/30/2014 6:34:41 AM PDT by tanknetter
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To: thackney
"Enterprise helps"

I do what I can, but I don't always get the recognition for it.

5 posted on 06/30/2014 6:40:47 AM PDT by Enterprise ("Those who can make you believe absurdities can make you commit atrocities." Voltaire)
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To: Busko
Great, but my question is this, with all of this oil and natural gas why are we paying more at the pump and home?

Natural Gas is down, compared to years past. It dropped too low, shutting down much of the drilling for gas specifically. It has slowly come up to a more stable price domestically.

Oil and associated gasoline/diesel prices have not moved much because of a couple items offset the reduction in imports. First, we still import ~7 million barrels a day of crude oil; we are quite tied with global market. Secondly, the Global demand has risen with Global production. Our reduction of imports has been taken up with additional demand around the world, and US demand rose slightly from 2012 to 2013. The demand continues into 2014.

The higher prices are what is driving the increase in US production. Those shale wells are not cheap. And the flow rate drops down fast.

Comparing to the bottom of a momentary dip is no different than comparing to the peak of a momentary peak. You could just as easily say oil should be over $140 a barrel from Summer 2008. Transition points do not represent the long term cost of supplying the products.

6 posted on 06/30/2014 7:10:02 AM PDT by thackney (life is fragile, handle with prayer)
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