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Tuesday, July 21, 2020

Second Bakken Pipeline Ordered To Shut Down -- WorldOil -- July 21, 2020

Updates


September 21, 2021: update

July 25, 2020: something tells me there is more to this story than meets the eye.

Original Post
 
Link here. Remember the DAPL? There's another one:
On July 2, a lesser-known conduit  called Tesoro High Plains was ordered shut for the first time in its 67 years of operation. Together, the two pipelines ship more than one-third of crude from America’s prolific Bakken shale formation to market. Their travails signal the ebbing of the oil industry’s sway in the U.S. heartland and underscore the growing heft and savvy of challengers who’ve become emboldened to demand higher compensation and safeguards.
In the case of High Plains, which delivers oil to Marathon Petroleum Corp.’s 74,000 barrel-a-day Mandan refinery, the U.S. Interior Department’s Bureau of Indian Affairs ordered it shut after determining the pipeline was trespassing on Native American land. The ruling also found the company responsible for $187 million in damages and gave it 30 days to appeal.

Somewhere Warren Buffett is smiling.

The Tesoro High Plains Pipeline has a capacity of 250 million bopd. Link from the Sidney Herald, October 1, 2016. Archived.
Tesoro has more than 1,000 miles of crude oil gathering and trunklines in the Bakken. Its High Plains Pipeline has a capacity of 250 million barrels per day, and it’s Bakken Area Storage Hub can hold more than 1 million barrels of oil. (sic)
Screenshot from the Sidney Herald ("We're gonna need a larger storage hub." LOL):


See first comment: 250 million bopd is a huge mistake by the reporter and the editor, and a huge miss by me (I will have to talk to Sophia about this). This source suggests the capacity is 90,000 bopd after it was expanded in 2015: https://www.gem.wiki/High_Plains_Crude_Oil_Pipeline

2 comments:

  1. 250 MM bopd? That newspaper slipped a digit. That's about three times the world's daily oil production.

    ReplyDelete
    Replies
    1. Thank you for catching that. Immediately after posting that I went swimming and thought it must have been an error but I still completely missed. Various sources have the capacity of the pipeline at 90,000 bopd including this source: https://www.gem.wiki/High_Plains_Crude_Oil_Pipeline.

      I know exactly how "The Sydney Herald" reported made that error. If you think about it for a few minutes, you can probably also guess.

      If it is closer to 100,000 bopd that represents about 10% of total Bakken production.

      Thank you again for catching that. The Bakken is good, but not that good .

      Delete

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