North Dakota booming with oil
“As of 2006, the state was only producing about 100,000 barrels of crude oil per day, putting it on par with other mid-tier oil producing states like Kansas, Colorado and Montana. But new hydraulic fracturing techniques and the opening of the massive Bakken formation to drilling changed all that, and as of January 2013 the state was producing an average of 770,000 barrels of crude per day, for a total of 23,834,000 barrels per month.”
It’s no wonder with all the oil in North Dakota that the state is ranked #3 in the US for producing the most oil, Texas of course being #1.
Is the Keystone XL Pipeline Worth Getting Arrested For?
“Last week, four dozen opponents of the Keystone XL pipeline were trying to convince President Obama to reject federal approval for the line, which aims to carry crude oil from Canada and North Dakota’s Bakken shale crude to the U.S. Gulf Coast. But if opponents of the Keystone pipeline are going to stop the flow of crude, they are going to have to do more than just get arrested or hold a rally—they are going to have block nearly every north-south rail line in North America.”
The Keystone XL is designed to transport 830,000 barrels per day. There is currently nothing new in moving oil by rail cars. Currently, U.S. and Canadian oil producers are building rail car terminals so they can ship their product to the market. Other countries around the world are doing the same as well.
2 Pipelines companies are ready for the New Year to begin
Enbridge and Enterprise have just announced that the expansion work on the Seaway is complete, bringing its Cushing takeaway capacity up from 150,000 to 400,000 per day. This pipeline carries crude oil from Cushing, Oklahoma to the Gulf coast. These two companies are among the biggest players in the midstream company.
“Like Enbridge, Enterprise operates pipelines -- more than 50,000 miles of them -- but it has plenty of other assets that generate cash. Its business mix includes natural gas pipelines and processing centers, natural gas liquid (NGL) pipelines and fractionating facilities, storage facilities, and terminals”
“Production in North America is still growing and pegged to continue doing so for at least the next few years, which means volumes across the systems of companies such as Enbridge and Enterprise will continue to grow as well. Expect these stocks to grow this year.”
On Friday, in Ankara, Turkey, an explosion and fire caused a pipeline which carried oil from Iraq to World Markets to be shut down. The explosion hit a section of a pipeline in between the northern Iraqi City of Kirkuk and Turkey’s Mediterranean Port of Ceyhan.
The pipeline has two lines running parallel to each other, which carried about 25 million tons of crude oil a year. Although the second line was not damaged officials stated “We still need to briefly shut the lines down for precaution.”
By Saturday afternoon, firefighters put out the blazing fire which lasted 3 ½ hours. The repairs to the pipeline will begin shortly, although they were not clear when oil flows to Ceyhan would resume due to the damage.
Official’s stated “Condition of anonymity, the cause of the blast was most likely the result of sabotage. Kurdish rebels, fighting for autonomy in Turkey’s Kurdish-dominated southeast, have bombed the pipeline before, cutting oil flows from Iraq for days.
Officials wait for any ongoing procedures for fixing the pipeline and are looking more in depth with other lines out in the Middle East, for any other damages the Kurds might have done.
Not, all the pipeline projects are dead yet! I am hoping with the new election coming up, there will be new projects and new pipelines to build.
“Enbridge has secured commercial support to proceed with several projects designed to increase capacity on the Enbridge crude oil mainline system in Canada and the U.S. and to increase capacity on pipelines that serve eastern U.S. and Canadian refineries.”
“Elsewhere the installation of a new 35-mile, 20-inch pipeline twinning the existing Enbridge Line 17 (Toledo pipeline) will add 80,000 bpd of capacity to the Enbridge mainline system. The line is expected to be available for service in early 2013 at a cost of approximately $0.2 billion.”