Editorial: The verdict is in: Dakota Access Pipeline is good for ND economy
A key reason for the resurgence of North Dakota’s Oil Patch is 1,172 miles long and 30 inches in diameter. The Dakota Access Pipeline, thoroughly vilified by protestors, has been capable of carrying 470,000 barrels of Bakken crude oil daily since the $3.78 billion pipeline started operating in May, providing access via a hub in Illinois to refineries near the Gulf Coast. It’s no accident that oil production, slumping since prices plunged several years ago, has rebounded since the pipeline went online.
Because of the great distances to major refineries, often located in coastal regions, Bakken oil faces a shipping penalty called a discount. That discount has typically shaved $7 or $8 per barrel from the price Bakken producers get for their crude. Since the Dakota Access Pipeline went to work, however, the discount has dropped to around $5 per barrel, leaving producers and royalty owners with a bigger profit.