RMR features the latest high-point news to keep you to up to date with midstream activities happening in the basins and shale plays that matter to you most.
Construction Gets Underway for More Bakken Midstream Infrastructure
In the wake of COVID-19, oil and gas production in the Bakken has been slashed to the likes of a Friday the 13th horror movie. Okla. City-based Continental Resources, the largest E&P operator in the N.D.-Mont., shale play, recently shut-in 70% of its output, cutting nearly 150,000 BPD in May and June. Others have been soon to follow. Nevertheless, Denver-based Outrigger Energy, which operates pipelines, gas plants and water management systems in the DJ and Williston basins, has just received regulatory approval to move forward with its latest Bakken ventures. The company looks to construct the $4.6 million, 4.7-mile Alliance Sales Pipeline—an extension of its 2,391-mile Alliance Pipeline—as well as build a new $150 million gas processing plant. Both are expected to go online at year end. The Alliance Pipeline flows natural gas from Western Canada and the Willison to the Chicago market hub. The Alliance Sales Line will have a capacity of 80 MMCFD.
Saudi Oil Anchors at the U.S. Gulf Coast
A flotilla of 17 VLCCs loaded with Saudi crude has quietly begun to arrive. Five have already reached ports in La., and Texas, and 14 others will be quick to follow filled with a combined 28 MMBbls that will reach the Gulf Coast between now and the end of June. As a reference point, the U.S. has imported 6.7 MMBbls from the kingdom every month for the last 12 months. For the time being, supplies will be stored on those tanker ships (cha-ching) as the politics behind unloading has ignited a firestorm. Of note, approximately 146 MMBbls of storage in the Gulf Coast region remains available. As of the end of April, nine E&Ps have rented emergency space at the Strategic Petroleum Reserve to store 23 MMBbls of oil. The SPR has a storage capacity of 714 MMBbls. Meanwhile, the Dept. of Energy has just announced it will purchase 1 MMBbls of crude now stowed at the SPR after initially asking to purchase 70 MMBbls then 30 MMBbls to help producers.
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