From: Inside Climate News
By Elizabeth Douglass, Inside Climate News
Dispute between Enbridge and small U.S. pipeline operator offers glimpse of the industry’s future as North Dakota oil booms.
North Dakota's unexpected oil boom has triggered a surprising
development that people outside the industry have yet to grasp: U.S.
domestic crude oil must now compete with Canadian imports for space on
the nation's pipeline system.
That new reality is at the core of an escalating battle between Canadian pipeline giant Enbridge Inc. and a tiny U.S. pipeline operator that's trying to get North Dakota's newfound oil riches to more U.S. refiners.
High Prairie Pipeline LLC wants to build a pipeline to carry oil east out of North Dakota's prolific Bakken oil formation. Oil producers there outgrew North Dakota's few pipelines long ago, and the bottleneck is forcing them to use pricier rail cars and truck fleets to deliver their crude. That limits their potential customers and cuts into profits. MORE
That new reality is at the core of an escalating battle between Canadian pipeline giant Enbridge Inc. and a tiny U.S. pipeline operator that's trying to get North Dakota's newfound oil riches to more U.S. refiners.
High Prairie Pipeline LLC wants to build a pipeline to carry oil east out of North Dakota's prolific Bakken oil formation. Oil producers there outgrew North Dakota's few pipelines long ago, and the bottleneck is forcing them to use pricier rail cars and truck fleets to deliver their crude. That limits their potential customers and cuts into profits. MORE
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