North Dakota currently produces aboout 300,000 barrels of oil per day, up from 100,000 not long ago. Now some analysts think North Dakota's oil production could soar to one million barrels daily.
I was under the impression that the takeaway capacity was pretty much balanced with the oil production in North Dakota. That may be true, but only because so much of the oil is trucked (which also explains the huge delta between price of Texas crude and North Dakota crude).
Confirming an earlier post of mine, which I think was picked up by a well-known business blog, Enbridge has announced plans for a significant increase in pipeline capacity. Enbridge will add 145,000 bopd takeaway.
This is a huge story for those who still think the Bakken is over-hyped.
This is also a headline story in the Oil and Gas Financial Journal.
No comments:
Post a Comment