Friday, March 21, 2014

Random Update On The Double H Pipeline

Link here. The Bismarck Tribune writes in the last paragraph:
Hiland Crude began courting oil producers this week to reserve space on a new oil pipeline that would run from Dore and Sydney, MT, to an oil storage facility in Guernsey, WY. The company said it expects to transport up to 100,000 barrels per day of crude on the pipeline later this year.
I assume this is the Double H pipeline. 

This is a bit confusing: a few weeks ago there was a report that a company had been given the contract to supply the pipe. Generally, crude oil and natural gas pipelines are not begun until "open season" has concluded the pipelines will be economically viable. In this case it sounds like the pipeline has begun (based on the company that was given the contract for the pipelines) and yet CLR is announcing the "open season" for this pipeline. One possibility: the CLR production will be enough to make the pipeline economically viable; additional production is being sought.

No comments:

Post a Comment