Pages

Monday, March 1, 2021

How Closing DAPL Would Impact Bakken Crude Oil -- RBN Energy -- March 1, 2021

RBN Energy: how closing DAPL would impact Bakken crude oil producers. Archived.

When it finally came online in mid-2017, the Dakota Access Pipeline was a lifesaver for Bakken crude oil producers. For years, they had suffered from takeaway-capacity shortfalls that forced many shippers to rely on higher-cost crude-by-rail, sapping producer profits in the process. Then came DAPL, which provides straight-shot pipeline access to a key Midwest oil hub, and its sister pipe — the Energy Transfer Crude Oil Pipeline (ETCOP) — which takes crude from there to the Gulf Coast. Problem solved, right? Not exactly. 
Now, there’s at least an outside chance that a shutdown order is issued as soon as early April in connection with the ongoing federal district court process, with the timeline for a physical closure of the pipe still to be determined. A shutdown may last for only a few months but could potentially last much longer. Where does this uncertainty leave Bakken producers, many of whom have been hoping to benefit from the recent run-up in crude oil prices by ramping up their output this spring? Today, we discuss recent upstream and midstream developments in the U.S.’s second-largest shale/tight-oil play.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.