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Wednesday, June 18, 2014

Second Largest Pipeline By Diameter To Go On-Line; Life Is Sweet, Very Sweet

The Bakken Oil Express.

For background see this link, and see this link.

Now the update:
At 16 inches wide, the $14 million pipeline is the second-largest pipeline by diameter in North Dakota, he said. It can move up to 165,000 barrels a day.
Data points:
  • second largest pipeline by diameter in North Dakota
  • connects Killdeer to Dickinson
  • 38 miles long ($350,000 / mile)
  • the project was approved in December -- only six months to complete after approval
  • equal to 825 tanker trucks/day on the road
  • at 165,000 bopd, this represents more than 15% of Bakken output
This is the big story, though, something seldom seen in the pipeline business. There was no "open season" prior to the decision to build:
BOE didn’t wait for commitment from shippers to get going.
“We gauged the market for shippers — both our rail shippers as well as producers — and felt that there was sufficient interest to just move forward and construct the pipeline,” Freed said.
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A long, long time ago Mr Vern Whitten, the photographer who often sends us incredible photos of the Bakken and even more incredible photos of North Dakota scenery (to include agriculture) suggested to me that high schools in North Dakota should use the oil patch as teaching opportunities.

The other night while driving her to swimming lessons, I discussed with my granddaughter how to calculate volumes of containers, such as cereal boxes and Pringles potato flake cylindrical containers. She was able to "transfer" base x height of a cube to the base x height of a cylinder. So, what a great opportunity for pre-algebra students to take on this one: calculate the volume of a 14-inch, 38-mile cylinder.

And, then, of course, for the calculus students, to determine how long it would take to fill that cylinder based on a ten trucks loading an empty cylinder.

And, then, of course, for social sciences, the students could discuss the federal government's role in states' issues. LOL.
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6 comments:

  1. Bakken OwnerJune 18, 2014 at 11:16 AM

    Dunn County permits can spike now! I think XTO is involved on this one.

    ReplyDelete
    Replies
    1. Bruce OksolJune 18, 2014 at 2:34 PM

      Thank you; that's a nice data point to follow. The NDIC has said that it grants permits on basis of ability of companies to execute the permits and the geographical area to handle the new production. XTO has deep pockets; now, they have the pipeline.

      Delete
  2. Bakken OwnerJune 18, 2014 at 6:24 PM

    The other interesting note, after reading their web page is that they are expanding their rail facility. They are including 100,000 barrels of storage in Killdeer and they have 600,000 barrels of storage in Dickinson. Maybe we will hear about the price of Dickinson crude ten years from now. All very interesting.

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    Replies
    1. Bruce OksolJune 18, 2014 at 6:53 PM

      Right now I believe Bakken crude is priced at Clearbrook, MN, but it is very nebulous, in my opinion. I agree; it should be priced in North Dakota somewhere....there's a huge storage depot west of Williston, but again, you are correct, the rail and the terminals are nearer Dickinson. This is a good example of city fathers having a vision for their city. But they have to think big.

      Delete
  3. Bakken OwnerJune 18, 2014 at 7:20 PM

    Another minor note. I think the starting point of this pipeline is in the same location that one of the feeder pipelines for the Keystone was going to be placed. Capital gets tired of waiting for political foolishness and it finds a way to be productive and to add value in the end. Go capitalism and boo to veiled communism in global warming garb.

    ReplyDelete
    Replies
    1. Bruce OksolJune 18, 2014 at 7:30 PM

      I bet you are correct; very interesting. Some irony in all of this.

      Delete

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