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.