Schweigert, Klemin & McBride, P.C.

Oil industry leaders commend the Dakota Access Pipeline

On the one year anniversary, oil industry leaders discussed the controversial pipeline and claimed it as a "game changer for the Bakken." According to Energy Transfer Partners CEO, Kelcy Warren, the pipeline is running near its capacity at 570,000 barrels of crude oil per day.

Dakota Access began operating on June 1, 2017. In one year, the Bakken's weighted average price started at $7.41 and dropped to $4.66. It was a $3.05 price improvement from June 2017 to April 2018. The state's Pipeline Authority Justin Kringstad said there would be an additional $111 million in state tax revenues.

The pipeline transports the same amount of oil as 250-plus oil tanker trucks, which reduces the truck traffic and oil train. Not only has traffic reduced, but Bakken oil production has also exceeded economic forecasts and is near the state's record of 1.23 million barrels a day.

The industry leaders are assessing the future of transporting oil in North Dakota, and if production continues to grow as expected, the output will be between 2 to 2.4 million barrels of oil a day by the mid-2030s. It will be doubled in production.

Regarding future pipelines, Warren could not comment about any in production. However, he hopes to see a growth in jobs opening statewide and in carrying capacity in Patoka. He is also satisfied with the progress of the pipeline so far.

"It's wonderful to see the rig counts pick up and to see the barrels produced increase," Warren said to The Bismarck Tribune. "Everything we believed would happen has in fact happened."

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