Posted on 12/14/2014 5:55:26 PM PST by Red in Blue PA
Enterprise Products Partners (EPD) is shelving a proposed pipeline that would have transported crude from North Dakota to Oklahoma, the company announced on Friday.
The news came in the midst of a brutal slide in global oil prices that have raised concerns about whether U.S. companies will continue to build on the expansion of oil production. Middle East oil producers have yet to announce a cut in production to offset the drop in crude, in what some analysts say is a slow-bleed strategy designed to make pumping crude as uneconomic as possible for the world's fastest growing non-OPEC oil producer.
Enterprise Products-a publicly traded partnership designed to provide financing on oil and gas infrastructure projects - said in a terse statement that investors had "decided not to move forward with development of its proposed Bakken to Cushing crude oil pipeline."
(Excerpt) Read more at finance.yahoo.com ...
Incredibly stupid and short-sighted.
Too bad I can’t put down a “rest of my lifetime” Diesel and Gasoline reserve early in the next year.....
Then again, it would seem more rational to go ahead with the project, on the assumption that by the time it's finished, oil will be back up.
The Saudis lowered their prices in order to undercut Bakken. Building the pipeline, though, takes control of the price away from the Saudis altogether.
Thats OK. In bits and pieces, a Bakken pipeline system is slowly taking shape. Its just that a major Bakken-Cushing line, or a Keystone line crossing the Bakken, would accelerate the process and make it definitive.
Energy independence is a matter of national security.
wouldn’t construction be cheaper now that no one needs construction?
or is that just too simplistic?
They spend money when money is coming in furiously, and not when money is drying up ... :-) ...
Then our military forces should build the pipeline and let companies use it for free ... :-) ...
Easy to say when you don’t have to stay in business and answer to shareholders.
Well, looking to the bright side, the US should be able to replenish (or even expand) the Strategic Petroleum Reserve at bargain basement prices.
http://en.wikipedia.org/wiki/Strategic_Petroleum_Reserve_(United_States)
However, the SPR is currently about 95% full and only needs another 31 million barrels to be at 100% of existing capacity (727 million barrels). Preliminary plans exist to expand the SPR to between 1 to 1.5 billion barrels. Now might be a good time to implement those plans.
We make sensors used in offshore oil exploration. The bottom has just fallen out of that market and our orders have stoppd dead.
This seems to me more relevant to our national interest than foreign aid... redirect a billion from all those American hating foreign governments and build it with those funds.
Sliding oil prices have effects folks....rapid price changes can really raise heck!
I recall oil at $9.oo barrel....and what happened to the Texas/OK/La economies.
> The news came in the midst of a brutal slide in global oil prices that have raised concerns about whether U.S. companies will continue to build on the expansion of oil production.
Oil price crash means £55bn of projects face axe
Telegraph (UK) | 13 December 2014 | Andrew Critchlow
Posted on 12/14/2014 7:34:21 PM PST by Lorianne
http://www.freerepublic.com/focus/news/3237244/posts
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