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View Diary: Pipeline Canceled: $1.8b Bakken Crude Express Pipeline From North Dakota to Oklahoma (43 comments)

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  •  sounds like this would confirm (2+ / 0-)
    Recommended by:
    MKSinSA, Rolfyboy6

    that peak oil has come and gone if producers can't project outflow to justify a new pipeline.

    Please don't dominate the rap, Jack, if you got nothin' new to say - Grateful Dead

    by Cedwyn on Wed Nov 28, 2012 at 06:24:43 AM PST

    •  Not really indicative of anything (5+ / 0-)

      about world oil production and reserves. It just means that oil from this place is too expensive to produce right now. As we do reach peak oil, marginal supplies like this will become more profitable and the pipeline might make sense at that later time if and when world oil prices increase.

      "I regret that my poor choice of words caused some people to understand what I was saying." -- Any Republican on any given day

      by RudiB on Wed Nov 28, 2012 at 06:36:55 AM PST

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      •  Not even sure if that's the take home message (6+ / 0-)

        since ND is now the second largest oil producing state.

        So, the oil IS being produced.

        It's just that there are other ways of getting the oil out - e.g., as I posted above by rail, and also by taking over pipelines that had previously been used for Tar Sands oil - much to the Canadian's chagrin - take THAT Celine Dion (ha ha ha ha ha!!)

      •  So the cancelation was b/c refineries weren't (0+ / 0-)

        willing to make long term purchase agreements to receive their North Dakota oil?

        What's your take on the opening of the Artic shipping route?

        Do you think that route of shipping oil from Norway and Russia to the far east reduced the need for more pipelines across the US. (I know this is south to a refinery in OK).

        •  No, it was b/c producers wouldn't commit to... (5+ / 0-)

          ...providing enough oil to make the pipeline viable.

          Possible valid concern.

          Imagine the price of oil going down to 50 dollars, and the producers contractually obligated to (i) provide oil or (ii) make a payment to pipeline operator in lieu of oil.

          Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project. www.hamiltonproject.org

          by PatriciaVa on Wed Nov 28, 2012 at 07:18:47 AM PST

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          •  Ahhhh, OK, below a certain price, they would (0+ / 0-)

            just reduce or pause production.

            •  IIRC, the word OKLAHOMA may be part of the prob. (0+ / 0-)

              My understanding is that there is a center in OK which sets domestic prices, and those prices are much lower than the ones which go to the international market and use the international pricing, from Houston. That's why the Trans Canada pipeline had to get the permissions to go all the way to Texas, for the additional money per barrel. This was going to be all-domestic if it was going only to OKLA.

              •  Still could be for export (0+ / 0-)

                http://seawaypipeline.com/

                On May 17, 2012 Enterprise and Enbridge completed a project to reverse the flow direction of the Seaway Pipeline, allowing it to transport crude oil from the bottlenecked Cushing, Oklahoma hub to the vast refinery complex along the Gulf Coast near Houston. The first volumes arrived at Jones Creek, just north of Freeport, on June 6, 2012. In reversed service the line has a capacity of 150,000 barrels per day (BPD). Following pump station additions and modifications, anticipated to be completed by early 2013, the capacity of the reversed Seaway Pipeline will increase to approximately 400,000 BPD of crude oil, assuming a mix of light and heavy grades.

                Others have simply gotten old. I prefer to think I've been tempered by time.

                by Just Bob on Wed Nov 28, 2012 at 03:23:41 PM PST

                [ Parent ]

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