A pipeline operator that runs several lines across the U.S. and Canada, restarted its North Dakota system after a fire at a truck-loading facility, according to a company spokesman, the Globe and Mail reports.
The fire started yesterday at the facility that was leased to its unit, Tidal Energy Marketing, a spokesman for Calgary-based Enbridge, told the publication. Eight out of 12 crude storage tanks, with a capacity of 400 barrels each, caught fire at the site, according to a manager at the Emergency Management Services for McKenzie County, ND.
North Dakota is home to the Bakken shale formation that contributes more than 1 million barrels a day to U.S. oil production. North Dakota Pipeline Co., an Enbridge unit, operates a 826-mile system from Plentywood, MT to Clearbrook, MN.The Dickinson Press is also reporting it:
More than 1,600 barrels of crude were ablaze just south of Williston, N.D., on Thursday after storage tanks caught fire while trucks were delivering oil, but no one was injured and officials said they intend to let the blaze die out.Maybe it's cheaper to burn Bakken crude oil than pay for its shipping. LOL.
Curiouser and curiouser (small tanks, not on NDIC maps; no one knows who owns them -- well, obviously someone does):
It was not immediately clear who owns the storage tanks that caught fire. The tank battery does not appear on state regulators' maps.
The crude damaged by the blaze is a minute proportion of the more than 1 million barrels produced each day in North Dakota, the second-largest oil-producing state in the United States.
The blaze started when two trucks were delivering crude to the 12-tank battery on Thursday afternoon, officials said. Nearby residents reported hearing and feeling an explosion.
Each tank has a capacity of 210 barrels. All 12 of the tanks contained crude, Perez said, and eight of them caught fire.
Trucks must be grounded each time they deliver crude, and it was not clear if both of the trucks were properly grounded on Thursday to divert electrical discharge.Disclaimer: I know nothing more about this fire than what is being reported above.
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GE? No, Gee Whiz It Could Be a Tough Year
Disclaimer: this is not an investment site. The following helps me understand the Bakken and has nothing to do with investing.
Zacks is reporting:
Zacks Investment Research now holds a pessimistic view on industrial titan General Electric Company, as evident from its recent downgrade to Zacks Rank #4 (Sell) from Zacks Rank #3 (Hold). The gloomy outlook comes on the heels of the disappointing guidance given by the conglomerate as it expects a downslide in oil prices to hurt its performance in 2015.
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But Maybe Not For Everyone -- LINN Surges
Barron's is reporting:
Yet another company has joined the litany of energy names that are slashing drilling budgets in response to the oil price skid.
Linn Energy said it cut its oil and natural-gas budget by 53% to $730 million for the new year with plans to focus on lower-risk projects and expansions in California, among other areas. Linn and its sister company LinnCo LLC also slashed their annual dividends to $1.25 a share from $2.90.
For a master-limited partnership to cut its dividend is a disaster. The high yields are what lure investors to the stocks. Yet Linn’s share price has rallied today, recovering from a sharp pre-market decline to rise almost 12% in recent trading to $11.37 a share with more than 5 million shares changing hands.
Earlier this week, American Eagle Energy said it suspended its drilling operations and likely won’t resume them until oil prices improve, yet another energy company has fallen victim to falling oil prices.
Last month, Chevron suspended plans to drill for oil in Arctic waters. ConocoPhillips and BP are among many companies to announce pared capital-spending plans, while EOG Resources has said it would shed many of its Canadian oil and gas fields to refocus on the U.S.
Linn’s share price has dropped more than 65% over the past four months.I've been looking for snippets suggesting where companies might go in lieu of the Bakken. This story provides one very small snipped. You know it's going to be a tough year when California is considered "low-risk."
By the way, Rigzone is reporting that Linn Energy will cut its 2015 CAPEX by 53%.
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Rail Shipments Back On Track
Bakken.com is reporting on a story out of Minnesota:
Last year grain elevators, ethanol producers and others were frustrated by a shortage of rail cars and long delays in shipping their products. And analysts predicted the backups would stretch out for years.
But now, with a decline in oil prices, an anemic export market for grain, a snowless December and beefed up staff at railroads, rail service is back on track.
“I think the way it’s going, the railways may be out looking for business pretty soon,” said Jeff Spence, grain division manager, for Crystal Valley Co-op in Lake Crystal (Minnesota).
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