Fact Checking Recent News on the Dakota Access Pipeline

Fact Checking Recent News on the Dakota Access Pipeline

You may have seen the Dakota Access Pipeline in the news again recently. That’s because we are planning to optimize the pipeline by adding three new pump stations along the existing line.

So what changes? Not much really. Same pipeline, more benefits.

Adding pump stations will provide more horsepower, which allows us to move more oil through the pipeline.

It is important to understand that the maximum operating pressure (MOP) of the pipeline will not change. The MOP is permitted at 1440 psig and will stay at 1440 psig. The pipeline’s design, operating procedures and maintenance procedures are based on the maximum operating pressure, not how much flows through it daily.

As mentioned on our recent earnings call, the Dakota Access Pipeline has received sufficient market interest to move forward with plans to transport more than its current permitted capacity of 570,000 barrels per day. This optimization project will allow us to transport up to 1.1 million barrels per day over time, based on customer demand.

So who benefits? Everyone. Increased domestic crude oil production translates into greater energy security, lower trade deficit, and boosted economic growth. Pipelines enable the crude oil to safely reach refining and manufacturing markets where it can be used to make all of the products that Americans use every day. Products made from crude oil include gasoline, diesel, jet fuel, paint, glue, wax, nylon, rubber, detergent, fertilizer, hair coloring, makeup, refrigerant, insecticides, upholstery, and more.

More locally, North Dakota’s economy benefits from bolstered production in the Bakken – increased tax revenue, jobs, local business support, more spending. Optimization of Dakota Access Pipeline will help improve the region’s drilling economics by lowering transportation costs for operators, and provide a safer means of transportation over truck or rail. Everyone benefits from fewer oil trains and big-rig trucks on our roads and highways.

And super locally, the counties with the new pump stations will receive higher revenue in increased ad valorem taxes from us each year. Ad valorem taxes are a type of property tax. They are centrally assessed and can be used by counties for community parks, roads, schools, salaries, and much more. The local communities will also benefit from construction workers and employees spending money on housing, food and other items.

So what’s the bottom line here? Three new pump stations. No mainline pipe construction. No change to the maximum operating pressure.

Same pipeline, more benefits.

Read more about the pipeline here: https://daplpipelinefacts.com