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Bakken-Cushing oil pipeline project canceled due to lack of interest
Enterprise Products Partners 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."

Commitments from potential partners "were not sufficient to support the project," Enterprise Products added. The company did not immediately respond to an inquiry from CNBC on whether the project's closure was related to the drop in oil prices and other factors.
Meanwhile in the NE USA, electric rates are very high and promise to go much higher, while the NIMBYists there refuse to allow construction of pipelines and LNG facilities to bring in more natural gas to feed their electrical generation systems.

Click here for an interesting graph showing utter wastage of natural gas at North Dakota wells.
I'd build the pipeline now even though prices are low. You have to play the long game. By the time the pipeline is ready prices will have rebounded. Labor will be a little cheaper if the economy slows. And it makes sense to push oil from the north to the refineries; refineries have to stay busy.

Posted by: Anguper Hupomosing9418 2014-12-15
http://www.rantburg.com/poparticle.php?ID=406247