North Dakota aims to double pipeline capacity

|By:, SA News Editor

North Dakota's governor wants to double the state's pipeline capacity over the next two years as part of a plan to curb wasteful gas flaring and reduce the reliance of Bakken producers on rail and trucks to get their oil to market.

Oil production in North Dakota has more than tripled in the past decade to 1M boe/day, but the state's pipeline capacity is only ~780K boe/day; Gov. Dalrymple says the state should boost capacity to 1.4M boe/day by 2016.

The governor's overtures were timed with Enterprise Products Partners' (EPD) plans to build a first-of-its-kind 1,200-mile pipeline from North Dakota's Bakken oil fields to Cushing, Okla.

ONEOK (OKE), Enbridge (ENB), MDU Resources (MDU) and other pipeline operators have been working to build natural gas networks in the state, but they have been constrained by cold weather and right-of-way issues.

While environmental groups worry about flaring, many residents see traffic as a reason to build pipe; a local officials says citizens "are less worried about global warming then they are about the 1,100 trucks that go by their mailbox every day."