Page 4 ■ Thursday, April 12, 2012


BAKKEN NEWS Pumping out crude


Pipeline from N.D. to Okla. would cost $1.5B to $1.8B


By JAMES MacPHERSON Associated Press


nounced a proposal to get into the crude oil business by building its own 1,300- mile oil pipeline from North Dakota to the nation’s biggest storage terminal in central Oklahoma. Tulsa, Okla.-based Oneok Partners LP said the proposed Bakken Crude Express Pipeline would cost between $1.5 billion and $1.8 billion and have the capacity to move 200,000 barrels of crude daily from the heart of North Dakota’s rich oil patch to the hub in Cushing, Okla.


“This would allow us to be


a full-service provider.” – Oneok Partners LP spokesman Brad Borror


ber of pipeline projects proposed to help ship crude out of the rich Bakken shale and Three Forks-Sanish oil reservoirs in the western North Dakota, said Justin Kringstad, director of the North Dakota Pipeline Authority. Which projects becomes a reality


Oneok’s plan brings to six the num- A natural gas company on April 9 an-


try to decide which of the various proj- ects it wants to support,” Kringstad said. North Dakota is the nation’s third- biggest oil producer and is expected to trail only Texas in crude output within the next year. The state’s burgeoning oil production is outpacing the ability to effi ciently move the product to market, causing drillers to take deep price cuts. Shippers increasingly are using trains to get crude out of North Dakota, with rail shipments accounting for about a quar- ter of the more than 546,000 barrels pro- duced daily in the state, Kringstad said. Kringstad said of the fi ve other pro- posed pipeline projects, which have a collective shipping capacity of 700,000 barrels a day, only TransCanada Corp.’s $7 billion Keystone XL project has fi rm shipping commitments. It also is the only one that needs federal approval be- cause it is the only one that would cross the U.S.-Canada border, Kringstad said. The bulk of the Canada-to-Texas


will depend on which get commitments from suppliers. Oneok spokesman Brad Borror said his company is negotiating commitments that could put it on track to begin construction next year and complete a pipeline by 2015. Kringstad called Oneok’s proposal


“very substantial” but said the market will determine if any of the proposed


pipeline, which would carry Canadian tar sands oil and 100,000 barrels of crude daily from North Dakota and Montana, is on hold after President Barack Obama temporarily halted it in January. But Obama last month directed federal agen- cies to expedite the project’s southern leg, from Oklahoma to the Gulf Coast, to help eliminate an inventory glut in Cushing partly due to increased produc- tion in North Dakota. Oneok already is North Dakota’s big- gest gatherer of natural gas, with more than 3,500 miles of pipelines in the state. Oneok also has nearly $2 billion in proj- ects planned to ship and process natural gas and natural gas liquids from western


pipelines are built. “Ultimately, it will be up to the indus-


South Dakota Wyoming Montana


BAKKEN BREAKOUT WEEKLY Stanley


Williston Basin Bakken Shale


North Dakota


Nebraska


Piceance Basin


DJ Basin Colorado Kansas


Niobrara Shale


Bakken Crude Express Pipeline


Bakken Crude Express Pipeline Bakken NGL Pipeline (under construction) Overland Pass Pipeline (50% interest) North Line 5 NGL Pipeline (NGL = Natural Gas Liquids)


Oklahoma


Cushing


Oneok Partners LP


This map shows (in red) the route of the proposed crude oil pipeline from the Bakken oil fi elds of northwestern North Dakota to an oil storage terminal in Cushing, Okla.


North Dakota to Midwest and Rocky Mountain markets, Borror said. Eighty percent of the proposed oil


pipeline’s path would follow Oneok’s existing or planned natural gas pipeline


“This one’s on the house.”


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routes, Borror said. “We are currently working with pro-


ducers of natural gas and natural gas liq- uids so this would allow us to be a full- service provider,” Borror said.


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