Dalrymple Hosts Second Governor's Pipeline Summit
BISMARCK, N.D. – Gov. Jack Dalrymple today encouraged greater development of North Dakota’s oil and gas pipeline capacity while hosting the Governor’s Pipeline Summit at the Bismarck State College National Energy Center of Excellence. The summit brought together about 150 pipeline industry leaders, energy industry representatives and federal, state and local officials.
“Pipelines are essential to the safe and efficient shipment of North Dakota’s oil and gas resources,” Dalrymple said. “We have made tremendous progress in expanding our interstate oil and natural gas pipelines as well as our in-state gathering systems, but we must continue to develop pipeline systems that safely move our energy resources to more markets and reduce the flaring of natural gas.”
Pipeline developers and refiners are responding to North Dakota’s increased oil and gas production in significant ways. By the end of 2014, the state’s capacity to ship crude oil to market by pipeline is expected to increase to 783,000 barrels per day. Only five years ago, the state’s total crude oil pipeline capacity totaled 286,000 barrels per day.
Pipeline and refinery projects that are proposed for completion by late 2016 would more than double the state’s current oil takeaway capacity to about 1.4 million barrels per day.
The pipeline industry also continues to expand its network of gathering pipelines which transfer oil and gas to local processing plants and feed into larger, interstate pipelines for shipment to out-of-state markets.
Since 2007, the energy industry has invested more than $9.5 billion to build oil and gas processing plants and pipeline systems that support North Dakota production. Dalrymple thanked the energy and pipeline industry for their continued investment in North Dakota and commended representatives from Enterprise Products Partners who announced during the governor’s summit that they are proposing to build a state-of-the-art oil pipeline capable of moving about 200,000 barrels of oil per day from western North Dakota to the major crude oil trading hub located near Cushing, Okla. Dalrymple also highlighted other projects that advance the state’s processing and shipping capabilities, including Hess Corp.’s recently completed Tioga gas plant expansion, WBI Energy’s construction of a diesel refinery near Dickinson and plans by Enbridge to build the Sandpiper oil pipeline from western North Dakota to terminals in Clearbrook, Minn. and Superior, Wis.
Justin Kringstad, director of the North Dakota Pipeline Authority, updated attendees on the status of North Dakota’s oil and gas pipeline development and the work of the state’s advisory panel on pipeline technology. Dalrymple formed the 15-member panel in December and directed the working group to research the latest available technologies for enhanced pipeline safety. Kringstad, who leads the working group, said they are researching the risk profiles of different pipeline types and available technologies that could enhance the operation and monitoring of pipeline systems.
The summit included panel discussions with industry representatives from Enbridge, Alliance Pipeline, ONEOK, WBI Energy, Enterprise Products Partners and KLJ. Government officials including Agriculture Commissioner Doug Goehring, Public Service Commissioner Julie Fedorchak and Linda Daugherty, of the federal Pipeline and Hazardous Materials Safety Administration discussed issues including property right-of-way and pipeline regulation.
Dalrymple hosted his second Governor’s Pipeline Summit to bring together industry leaders, landowners and regulators to support the continued development of oil and gas pipeline systems. Dalrymple first brought stakeholders together in 2012. About 150 people attended today’s summit.