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Thursday, January 9, 2020

Chicken Or The Egg -- Production Vs Takeaway Capacity -- Can't Have One Without The Other -- January 9, 2020

Over at GlobalData: North America will contribute 51% of global new-build crude oil trunk / transmission pipeline length additions by 2023. Link here. Data points:
  • build-out: between 2019 and 2023
  • North America (which includes, for newbies, Canada and Mexico)
  • by 2023, 29 new-build crude oil pipelines to start operations;
  • 16 are planned projects; 4,289 miles;
  • 13 are in early-stage announcements; 4,317 miles;
  • Liberty Oil Project: the longest upcoming announced pipeline in the region; 1,303 miles;
The narrative is "okay," but look at the graphic, this just blows me away, there's simply no comparison:


If I have the correct pipeline, this was on the blog, back on June 11, 2019:
June 11, 2019: $1.6 billion, 200,000 bopd, Liberty Pipeline proposed for North Dakota.
You know, for those keeping track, in the last two days two huge stories both involving North Dakota -- first it was Outrigger mentioned on Rigzone, and now the Liberty Pipeline mentioned on GlobalData.
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2 comments:

  1. windscrossJanuary 10, 2020 at 7:57 AM

    On reflection, the Outrigger gas plant just seems to be part of a bigger project, specifically for ethane. Why would any project make ethane cryogenic separation part of it ? Ethane has no value for long distance transfer for ONEOK as it would lose money for the pipeline. But that is not true for ethylene. Ethylene just started to be exported from Texas and is priced higher,
    What if all the ethane going into the pipeline was converted first? The pipeline contents would be elevated in price and smaller amounts could be further processed in ND.

    ReplyDelete
    Replies
    1. Bruce OksolJanuary 10, 2020 at 8:23 AM

      You may be on to something. For this story to be a headline story over at "Rigzone" suggests there is more to the story.

      Delete

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