Monday, November 2, 2009

Investing: Pipelines


Pipeline news is at the top; general information about the pipeline industry in North Dakota is below the YouTube video below.

NOTE: ENB and the "family" of ENB investments now has its own stand-alone page among Bakken Investing sites.

I track pipelines of interest here
NEWS

March 27, 2017: DAPL pipeline oil under the lake.

February 13, 2017: Enbridge's Alberta Clipper one step closer to being approved. We're talking a 3-mile section of pipeline. 

December 22, 2016: Blackstone Group in talks to buy a stake in ETP, builder of DAPL.

December 4, 2016: US Army Corps of Engineers won't issue easement for DAPL

November 28, 2016: huge, huge story. Spectra Energy to expand pipeline from Guernsey, WY, to Patoka, IL

August 12, 2016: how others see the Dakota Access Pipeline, a pipeline that is only 7 miles shorter than the Keystone XL would have been. Mother Jones has a nice overview.

August 5, 2016: update on the Bakken Pipeline System -- the Dakota Access Pipeline from North Dakota to Illinois via Iowa; and the Energy Transfer Crude Oil Pipeline from Illinois to Texas; funding complete; calls Sandpiper into question

August 5, 2016: Sandpiper in trouble; MRO pulls out; Enbridge to re-evaluate

August 3, 2016: ETP and Sunoco sell their stake in the Dakota Access Pipeline to Marathon and Enbridge. Marathon will discontinue funding the Enbridge Sandpiper pipeline. 

June 7, 2016: movement on the Dakota Access Pipeline noted

May 27, 2016: Dakota Access Pipeline keystoned in Iowa, as predicted.

May 18, 2016: photograph of storage site/pump station for Dakota Access pipeline; photograph from reader; site on west side of ND State Highway 23 between Johnsons Corner and Keene, maybe about 2.8 miles north of Johnsons Corner. 

April 11, 2016: Iowa formally issues Dakota Access pipeline permit -- Dickinson Press.

January 20, 2016: North Dakota approves Dakota Access Pipeline; only Iowa is yet to approve; company expects Iowa to approve "next month." I'll believe it when I see it.

October 19, 2015: RBN begins series on Enbridge Line 9 reversal and what it means for the Bakken.

October 16, 2015: ND PUC approves 23-mile McKenzie County pipeline; the NST Express 12-inch-diameter pipeline will move 100,000 bopd.

September 18, 2015: was the Sandpiper Keystoned?

June 6, 2015: Enbridge Sandpiper and Line 3; still going through the process. Sandpiper is farther along the regulatory process than Line 3. Enbridge still hopes to complete Line 3 in calendar year 2017 and flow oil starting in 2017.

April 26, 2015: ONEOK cancels Lone Creek Pipeline after Native Americans try to extort company for $10 million/mile of pipeline easement. 

May 28, 2015: update of the ETP Bakken-to-Illinois Dakota Access Pipeline. Nothing new; company has only 56% of landowners signed on; wants to begin this year. My two cents worth: this pipeline won't be completed before 2021, if ever. 

May 20, 2015: Enbridge to begin construction of the Sandpiper pipeline this summer; first phase in North Dakota.

April 14, 2015: Minnesota judge rules Enbridge's Sandpiper pipeline is "needed."

March 24, 2015: ETP, Bakken-to-Illinois, Dakota Access Pipeline, miles of pipeline being brought in, stored near Aberdeen, SD; South Dakota state has until December 15, 2015, to make decision. 

February 27, 2015: Vantage ethane pipeline to be expanded, Tioga, ND, to Canada

January 21, 2015: KMI buys Harold Hamm's Hiland pipeline company.

December 12, 2014: EPD cancels 1,200-mile pipeline from Stanley, ND, to Cushing, OK. See June 24, 2014, entry below.

November 1, 2014: ONEOK acquires Chevron's natural gas liquids pipelines; a Permian story. 

October 28, 2014: update on new Bakken pipeline. ETP to take pipeline from the Bakken, through South Dakota, through Iowa, to Illinois (the Dakota Access Pipeline); and then a second pipeline from Patoka to Nederland, Texas. First mentioned at the blog by RBN Energy. Update at BizJournals:
Energy Transfer Partners announced a joint venture with Phillips 66 to build two pipelines to move crude oil out of North Dakota (75% / 25% respectively). Dakota Access Pipeline (DAPL) from the Bakken to Pakota; ETP Crude Oil Pipeline (ETCOP) south from Patoka.

September 8, 2014: a June 26, 2014-article in The WSJ suggests there could be almost one million bopd more pipeline takeaway capacity in North Dakota by 2016.

June 24, 2014: EPD announces first-of-its-kind, 1,200-mile, 30-inch-diameter pipeline, Stanley, ND, to Cushing, ND, to be completed by 4Q14;

June 7, 2014: Canadian government approves Enbridge's Northern Gateway pipeline, from Alberta, to the western British Canadian coast. It will be many years before this pipeline is completed (if ever).

March 6, 2014: Enbridge to replace aging Line 3, Canada to Superior; regulators approve reversing Line 9, Sarnia, Ontario, to Montreal. 

January 22, 2014: Koch won't build the 250,000 bopd Dakota Express pipeline from the Bakken to Illinois. No explanation given.

January 21, 2014: EPD increases its distribution

January 20, 2014: GE buying a company that provides flow equipment for oil and gas production.

January 3, 2014: Warren Buffett buys PSX company specialist in optimizing crude oil flow through pipelines

December 6, 2013: EPP begins the ethane line fill for ATEX (Marcellus-Utica to Texas).

November 29, 2013: SeekingAlpha has an article on ETP.  

November 26, 2013: Marathon to become biggest shipper on Sandpiper.

June 12, 2013: RBN Energy update on Enbridge and Energy Transfer Partners projects to convert two major natural gas pipelines to crude oil pipelines.

June 9, 2013: Glass Mountain Pipeline (crude oil) from Mississippi Lime / western Oklahoma to Cushing; 210 miles; two laterals; initial capacity of 140,000 bopd and intermediate storage of 440,000 bbls; to be commissioned by late 2013.

May 30, 2013: MDU subsidiary to built $700 million natural gas pipeline

April 4, 2013: Harold Hamm to build the Double H pipeline, should be on-line by August, 2014.  $300 million. Initially 50,000 bopd; to reach 100,000 bopd. Dore, ND, to Baker, MT; joins the Butte Pipeline south to Guernsey, WY; new pipeline from Guernsey down to Tallgrass Pony Express pipeline (converted from natural gas to crude during this time period); to Cushing, OK.

January 4, 2013: update on EPD/ENB Seaway reversal and expansion; update on ENB Flanagan South pipeline.

December 3, 2012: ONEOK vs BNSF, SeekingAlpha.com.

November 27, 2012: for investors only (note disclaimer at this site) -- EPD, three stories today for those interested in EPD
November 16, 2012: Update on the October, 2012, story on Sempra/KMI pipeline in Arizona, New Mexico

September 2, 2012Update on the ONEOK Bakken NGL Pipeline

August 30, 2012: Enterprise Products offering additional capacity on ATEX Express ethane pipeline: Co announced the start of a binding open commitment period to determine additional shipper demand for capacity on the partnership's Appalachia-to-Texas ("ATEX Express") pipeline. The 1,230-mile system will deliver growing ethane production from the Marcellus/Utica Shale areas of Pennsylvania, West Virginia and Ohio to Mont Belvieu, Texas. [See January 23, 2012, entry.]

June 12, 2012: major Rangeland COLT update

June 8, 2012: EPD has begun accepting deliveries for and commissioning the first phase of its Eagle Ford crude oil pipeline between Wilson County and Sealy, TX.

The 147-mile, 24-in. OD pipeline, scheduled to start up in July, can carry 350,000 b/d of oil.
May 29, 2012: SemGroup to build DJ Basin crude oil gathering system.  (originally May 18, 2012).

May 23, 2012: Kinder Morgan announces deal to twin 714-mile pipeline from Alberta to Canadian west coast; increased capacity from 300,000 to 500,000 bopd

March 28, 2012: Enbridge/TransCanada race -- the Calgary Herald
A project that beefs up pipeline capacity to move crude from the U.S. Midwest to the world's largest refining market by Enbridge Inc. and Enterprise Products Partners LP is set to lift heavily discounted U.S. oil prices but won't boost even cheaper Canadian barrels, Enbridge chief executive Pat Daniel said Tuesday.
The more than doubling of a previously planned expansion of the Seaway pipeline between Cushing, Okla., and the Texas Gulf Coast, announced by Enbridge and Enterprise Monday night, will eat away at stockpiles of crude in the Midwest to bring U.S. oil prices closer in line with global barrels, but will not reduce Canada's reliance on one customer - the United States, Daniel said.
February 15, 2012: new Bakken-to-Clearbrook, MN, pipeline proposed.

February 8, 2012: takeaway capacity constrained --
Calgary-based pipeline operator Enbridge  has launched projects to add 10,000 barrels per day of rail oil capacity to its Clearbrook terminus by July, with another 70,000 barrels per day planned by 2013.
Simmons forecasts the congestion may see some relief in May, when Enbridge and Enterprise Products Partners begin to fill their reversed Seaway Pipeline, from Cushing, Okla., to the Gulf Coast, which will require two to three million barrels of capacity.
January 23, 2012: EPP will build the ATEX express pipeline
delivering ethane production from the Marcellus-Utica shale areas of Pennsylvania, West Virginia, and Ohio to the US Gulf Coast. ATEX Express will transport as much as 190,000 b/d from Appalachian production areas to EPP’s storage and distribution assets in Texas.
Originating in Washington County, PA, the system’s first leg would involve construction of about 595 miles of new pipeline extending to Cape Girardeau, MO, closely paralleling an existing Enterprise pipeline. At Cape Girardeau, EPP will reverse a 16-in. OD pipeline and place it into ethane service.
At the southern terminus of the ATEX Express pipeline, EPP will build a 55-mile, 16-in. OD pipeline providing access to its NGL storage complex at Mont Belvieu, TX. Expected operational date: 1Q14.
August 19, 2011: Enterprise Products Partners will NOT be building the 584-mile crude oil pipeline from Cushing, Oklahoma to Houston. There was a lack of commitment by oil producers to go forward with the project.

August 6, 2011: Reuters update of US mid-continent and Texas pipeline projects, completed and proposed.

April 14, 2011: Tesoro Logisitics, LP, to offer IPO of 14.375 million shares.

April 7, 2011: WMB announces three new pipelines from the Marcellus to metropolitan areas.

March 22, 2011: Update on Enbridge's proposed North Dakota Bakken to Cromer, Manitoba, pipeline expansion project; 74 miles; $180 million; service date: early 2013.

February 2, 2011: Motley Fools -- published earlier, but I just noted it -- ONEOK might be one of your better choices for dividend growth.

February 2, 2011: EPD announces that it is selling assets to focus on core business. Will sell barges and towboats for $53 million. Will build seven new marine vessels.

January 24, 2011: Problems for TransCanada's Keystone XL Pipeline: Texas landowners and Texas refiners don't want it.

January 14, 2011: EPD announces 26th consecutive quarterly distribution rate increase.

December 9, 2010: Keystone XL hearings in Nebraska. My hunch is the Keystone XL pipeline will not be completed in my investing lifetime. Any state from Montana to Oklahoma can scuttle the deal; and even if the states allow it, getting the necessary rights of way will take forever in light of recent Gulf of Mexico spills.

November 24, 2010: EEP's pipeline 6B will re-open this week following a several-month closure due to two pipeline oil spills earlier this year.

November 22, 2010: EPD will build a new crude oil terminal in Houston to handle growing production coming out of Eagle Ford, south of San Antonio.

November 15, 2010: Two huge pipeline acquisitions in the Bakken.

November 3, 2010: Plains All American to add Bakken North Project resulting in 50,000 to 75,000 more barrels/day starting in 4Q2012; will get Bakken oil directly to Cushing.

October 25, 2010: Update on TransCanada's Marketlink Pipeline, the first direct link from the Bakken to Cushing and the Gulf Coast.

October 14, 2010: Enterprise Products Partners (EPD) announces a 5.8% increase in its quarterly distribution. This is EPD's 34th distribution increase since its IPO in 1998, and its 25th consecutive distribution increase.

September 11, 2010: Enbridge signs agreement to provide services for Husky-operated Sunrise Oil Sands Project.

September 6, 2010: Just to give you an idea how much money is involved in the oil industry -- ENB announced it will be investing $185 million in a Canadian pipeline that will be completed in 2013.

July 20, 2010: Kinder Morgan to go public; Questar to spin off its E&P division, QEP; TransCanada Pipeline delivers its first oil to Chicago; TransCanada Keystone XL project on track but political issues may cause delays.

May 5, 2010: Enbridge's Alberta Clipper project on-line, April 1, 2010.

May 5, 2010: ENB 1Q 2010 Earnings Conference Call

February 19, 2010: North Dakota pipeline taking natural gas to Chicago. Big deal.

February 12, 2010: Pipelines let cash flow to shareholders (EPD, OGE, MMP).

February 12, 2010: Prairie Rose pipeline, 76 miles, natural gas, completed.  The pipeline was laid by Pecan Pipeline, a subsidiary of EOG.

February 3, 2010: ENB -- a very nice 2009, and even better 2010 predicted.

February 1, 2010: EPD profits rise 78%; beat street.

January 27, 2010: Bridger Four Bears pipeline. 85-mile from fields to Tesoro in Mandan, 10-inch, 40,000 bopd.
... the 85-mile Four Bears pipeline through McKenzie, Dunn and Billings counties in western North Dakota later this year, according to state Public Service Commission filings.

The proposed line is intended to connect with three pipeline networks that supply crude to the Tesoro Corp. refinery at Mandan, and to refineries in Minnesota and Wyoming.
January 25, 2010: Bison pipeline on track, OGJ.

January 13, 2010: Bison pipeline update, Bowman county.

January 7, 2010: Wall Street Journal transcript -- very positive on EEP , ENB, and TransCanada.

January 5, 2010: ENB upgrade completed; ND still short on capacity. Actually, it's EEP -- EEP's principal crude oil system is the largest transporter of oil production from western Canada. The system's deliveries to the United States account for approximately 11 percent of total U.S. oil imports.

December 9, 2009: ENB to have largest photovoltaic solar energy facility in North America

December 2, 2009: ENB increases its dividend 15%.

December 1, 2009: EPD bought another pipeline, probably small news item in the big scheme of things, but linked here just to be complete. The pipeline originates in Odessa, west Texas, and 265 miles later connects with a Pemex pipeline at the Mexico-US border near El Paso. EPD is NOT in the Bakken.

November 20, 2009: I missed reporting on this one earlier: EPD bought TEPPCO Pipeline this summer. This merger creates a massive new player in the pipeline business. It pays 7.5% and with the merger has significant share appreciation potential.  The "EPD Family" is now the largest MLP in the US. EPD is NOT in the Bakken, as far as I know.

November 12, 2009: Keystone Pipeline nearly complete

October 14, 2009: ENB: 52-week high; pays 3.5%. Compare with money market funds. Nice Barron's article on ENB, T2010 Guidance Conference Call scheduled for December 2, 2009.

November 3, 2009: EEP: $0.99/share payable November 13 for those holding the shares November 5, 2009. Ex-div: November 3, 2009. Pays 8.3%. I use EEP as a place to hold funds while deciding what to buy. If dividend looks questionable, will look for other high dividend payers in the oil patch.November 28, 2009: In addition to the 570 new wells requested by EOG in case 11939, I count about 241 additional wells by EOG and other producers.
Note: until this month, I had never paid attention to "dockets."  It turns out that a docket with 19 pages is not unprecedented. The July 21, 2009, docket had 19 pages, and in that same month (July 29, 2009), there was another docket with 14 pages.  In 2009, there were an average of 18 pages of requests if one excludes the month of July. In July, there were 39 pages of requests, total.  The number of pages by month shows a trend: Jan (16 pages); Feb (14); Mar (13); Apr (14); May (16); Jun (15); Jul (39); Aug (24); Sep (18); Oct (21); Nov (28); and, Dec (29).  This continues to validate my hunch that 2010 is going to be a watershed year for the North Dakota oil industry if oil stays above $70/barrel. CLR has hedged 5,000 bopd for $80 between January and July, 2010.

For investors, I think the pipeline companies are going to be able to charge a surcharge to transport all the oil that will be produced.
November 4, 2009: The Mountrail County Promoter states that North Dakota, already the 4th leading oil producer in the United States, would produce more oil if pipeline capacity was adequate. The writer notes that there is talk of two more pipelines in the Stanley area: one would take oil into Canada and then back into the states through another pipeline; and the second additional pipeline would take oil out of the local area. I have opined elsewhere that one starts to get the feeling that the Williston Basin could become another "Tulsa" over the next two decades.

*****

Pipeline, The Ventures (I couldn't resist.)

*****
Pipelines

Morgan Kinder to go public in 2010.

ENB, EEP, EEQ (family): ENB and EEP are my favorite (as noted below, I don't follow EEQ). I have ENB as a long-term hold, and I trade in and out of EEP for the distribution. Stand-alone page.

STR: Questar -- an E&P company but a conglomerate focused on energy; one of its five core competencies is pipeline. Might be a better alternative to MDU during current recession. March 9, 2010. Questar will spin off its E&P division at end of July, 2010: QEP.

EEQ: I don't follow. Pays 8.5%.

MDU: If interested in pipelines, this is a very interesting play. Safe, conservative, Fortune 500, nice dividend, particpating in the Bakken in many ways. Has had some tough quarters during the 2008 - 2010 recession; I used to hold / accumulated shares, but sold all my MDU during the recession. Switched to ENB and EEP.

Pecan Pipeline: wholly-owned subsidiary of EOG, according to third-hand source. Not verified.


EPD: not in North Dakota, as far as I know, but I follow and often invest in due to high dividend and good outlook. [With the June 24, 2014, announcement, EPD will now be building a pipeline in North Dakota.]

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