Tag Archives: Bakken Formation

New Pipeline Announced as Bakken Oil Production Rises

A new pipeline has been announced that will dramatically expand the exportation capacity of oil and natural gas by pipeline to handle increased Bakken oil production out of North Dakota.

Enterprise Products Partners LP proposed the new pipeline on June 24, 2014, which will be the first pipeline to move oil from North Dakota to a storage hub in Cushing, Oklahoma. The pipeline will be 1,200 miles and have the capacity to transport 340,000 barrels per day.

Enterprise is hoping to succeed where other companies have failed. Since 2012, five companies have proposed pipelines: Enterprise, Enbridge, ONEOK Partners LP, Koch Pipeline Co LP and Energy Transfer Partner. Of those, only pipelines from Enterprise and Enbridge are currently moving forward.

Bakken Oil Production Outpacing Infrastructure

Oil and natural gas production in North Dakota has steadily increased over the past few years, as the current infrastructure supporting this economic boon is struggling to keep up with demand.

Currently, between 60-70 percent of the production out of North Dakota is being shipped by rail. This delivery method is less reliable than pipelines and recent train accidents highlight the dangers of shipping oil by rail.

The pipeline proposed by Enterprise will have the capacity to ship half the crude currently being shipped by rail.

“As production increases in the Bakken Formation, the stress on existing infrastructure becomes immeasurably exacerbated,” said Kevin Groll, director of project management for MATCOR. “The new pipeline project by Enterprise represents an opportunity to expand this infrastructure moving into the future.”

“It is vital that these new pipeline projects take the necessary steps to protect the significant investment in oil pipelines through the implementation of cathodic protection products and services like those offered by MATCOR.”

What Is Cathodic Protection?

Cathodic protection is a technique used to prevent the corrosion of metal surfaces. MATCOR uses a mixed metal oxide anode system that has become an industry standard in cathodic protection.

With Bakken Oil Pipeline, Enterprise Goes Where Others have Failed,” Reuters, June 24, 2014.

Bakken Oil News: June Sees Big Bakken Formation Infrastructure Investment

Bakken Oil News: June Sees Big Bakken Formation Infrastructure Investment
Earlier this month, Summit Midstream announced new investments into vital Bakken formation infrastructure.

In recent Bakken oil news, Summit Midstream Partners LLC announced a $300 million investment in Bakken Formation infrastructure. This prosperous region of North Dakota has rapidly become one of the most vibrant energy producing regions in the United States.

On June 11, Summit Midstream Partners committed to four new projects in the North Dakota counties of Williams and Divide, located in the northwest region of the state. The investment is representative of the swift growth of the Bakken Formation as a national energy leader.

The announced infrastructure projects included 240 miles of new pipelines to be constructed by Tioga Midstream, a subsidiary of Summit Midstream. The new pipelines will originate in Williams County, North Dakota for the transportation of crude oil, water, and natural gas. The development will expand daily shipping capacity to 20,000 barrels of crude oil and 14 million cubic square feet of natural gas.

Additionally, Meadowlark Midstream Co., a subsidiary of Summit Midstream, is working to construct a 47-mile pipeline to service a crude oil storage facility on the Stampede Rail Connection operated by Global Partners LP.

“The crude oil transportation system being developed by Meadowlark further expands our gathering capabilities in the Bakken region, providing our customers with even greater access to refineries and other downstream distribution points on both the East and West Coasts,” said Eric Slifka, president and chief executive officer of Global Partners.

As more oil and natural gas is shipped from the Bakken region of North Dakota, industry safety standard becomes increasingly important. MATCOR, a turnkey cathodic protection design and solutions company, provides solutions to protect vital oil and gas infrastructures.

“With every new investment in Bakken’s infrastructure, the importance of cathodic protection becomes more essential,” said Nick Judd, director of field operations for MATCOR.

“Increased capacity of new pipelines creates a vast network that may be vulnerable to rust and deterioration over time. MATCOR’s patented technology represents the highest quality cathodic protections on the market and we strive to keep this expanding region productive and safe today, tomorrow, and in the future.”

MATCOR is a provider of customized cathodic protection systems across infrastructure industries including oil and gas, water, and power. MATCOR leads the industry in cathodic protection services for detection, diagnosis and prevention of corrosion in pipelines.

Summit Announces $300 Million Plan for Bakken Infrastructure,The Bakken Magazine, June 11, 2014.