Here are the top five stories from Bakken.com for the week of June 20th through June 26th. Enjoy!
5. St. Paul Park Refinery increasingly focuses on Bakken oil
Minnesota’s oldest oil refinery sees a bigger future with Bakken crude.
The refinery on the banks of the Mississippi River in St. Paul Park plans $100 million in upgrades that by next year will boost its refining capability to more than 100,000 barrels of crude oil per day.
With that upgrade, on top of significant investment since 2011, the refinery will be able to refine 29 percent more crude than it did when Marathon Oil Corp. sold it in 2010 to new owners. To read the full article, click here.
4. Bakken oil pipeline under Lake Sakakawea approved
On Monday the North Dakota Public Service Commission voted in unanimous support of a crude oil pipeline which will run beneath Lake Sakakawea, reports the Forum News Service (FNS).
The $105 million pipeline project, owned by Hess Corp., will convert an existing 8-inch pipeline to transfer crude oil produced in the Bakken. The section of pipeline runs for 2.4 miles and was buried six feet beneath the lake bottom in 1992.
The segment will connect with a 10-mile portion of new pipeline on the south side of the lake and with a 12.8-mile portion on the north side, which will transfer oil to the Ramberg Truck Facility near Tioga, North Dakota. PSC Chairwoman Julie Fedorchak said the new 12-inch pipeline sections will be buried at least five feet underground. The span of the completed system will have the capacity to transfer up to 76,000 barrels of oil per day. To read the full article, click here.
3. North Dakota governor sees OPEC ceding global swing status
BISMARCK, N.D. – OPEC’s decision this month to maintain existing oil output will fail to push rival producers out of the market because rising global crude demand should soon lift prices and boost drilling activity, North Dakota Governor Jack Dalrymple said.
Since November, the Saudi Arabian-led cartel has held to a policy of unconstrained output, an approach many suspect is designed to flood global markets with more crude, push prices lower and punish rivals, including North Dakota, the second-largest U.S. oil producer.
“It’s not surprising that Saudi Arabia would finally make a decision that they are not going to be the sole equalizer of supply and demand around the world,” Dalrymple said in an interview with Reuters this week at his capitol office. “They are going to expect other countries to be part of controlling supply.” To read the full article, click here.
2. Cowboyistan: Harold Hamm’s hope of crude oil exports
“Cowboyistan” could produce more than enough petroleum to justify the exporting of light, sweet crude, according to Continental Resources CEO and oil mogul Harold Hamm.
Earlier this week, the U.S. Energy Information Administration’s 2015 Energy Conference was held in Washington, D.C. Hamm was one of the numerous speakers and promoters there to voice the reasoning behind exporting American-produced petroleum, according to a recent report from SNL. Promoting the operations of Cowboyistan –which includes North Dakota’s Bakken Shale and Texas’ Eagle Ford Shale and the West Texas Permian shale—Hamm claimed we are more than ready as a nation to begin exports. To read the full article, click here.
1. Bakken oil prices: Major players to take the win
The price differential between oil produced in the Bakken region and the oil stored in Cushing, Oklahoma, and on the Gulf Coast is beginning to positively impact shale producers such as Hess Corp., Whiting Petroleum, and Continental Resources, according to The Street.
Oil prices in the United States are generally based on the benchmark quotes of the West Texas Intermediate (WTI) crude being priced at the Cushing storage hub. However, the prices for which crude produced in other regions like the Bakken can vary substantially from the benchmark prices set by the WTI.
The Street reports that the surge of oil production in the Bakken over the last few years, and the need for its pricing to compete with Canadian crude being transported south via pipeline, has caused Bakken crude to be traded at a discount. To read the full article, click here.