Enterprise's Proposed Pipeline | Russell T. Rudy Energy LLC
“Rigzone” reports that Enterprise Energy Partners LP has proposed a 1,200 mile pipeline from North Dakota to Cushing, Oklahoma to transport 340,000 barrels of oil per day (bopd). The project would be on stream by 2016. The proposal, the first for Enterprise in the state, would be the sixth pipeline initiative in the last two years. Of the five previous efforts, only one, Enbridge’s Sandpiper line to Clearbrook, Minnesota, is under construction.
Currently, only 300,000 of North Dakota’s over 1 million bopd is moved by pipeline and eventually feeds into Enbridge’s system which runs from Illinois to Cushing. From Cushing much of the oil moves to the Gulf Coast via the Seaway Pipeline operated jointly by Enbridge and Enterprise.
Some industry observers question shipping more Bakken oil to Gulf Coast refineries which are already receiving an influx of light sweet crude from the Permian Basin and the Eagle Ford shale. Alternatively, they suggest that Bakken production could be put to better use on the East and West Coasts. However, the 450,000 bopd Seaway Twin pipeline is scheduled to begin operations soon. Enterprise might be looking to bring Bakken crude directly to Cushing to help insure optimization of the Seaway Twin.
Currently, 60-70 percent of North Dakota’s production is being shipped by rail which presents a number of safety and environmental concerns. The new Bakken to Cushing line would help alleviate these and represent a significant step toward governor Jack Dalrymple’s goal of pipeline capacity of 1.4 million bopd by 2016.
To read the article in its entirety, please go to www.rigzone.com/news/oil_gas/a/133713/With .
