A Bakken Pipeline Idea Years in the Making May Well See the Light of Day
It’s mid-morning in Williston, N.D., and all of 2° with an expected high of 27°. In the Bakken, the nation’s third-largest oil basin, polar conditions this time of year are nothing more than life and business as usual, especially for oilfield workers used to spending Christmas on the job. Whiners need not apply. This is about as far from the Permian and its face-melting summer heat as one can get. But the two basins share something in common aside from oil production. That would be pipeline constraints to move growing volumes of residual gas.
Reese Energy Consulting today is following the latest news from the Bakken, where the proposed Bakken East Pipeline Project has announced a “nonbinding open season” to gauge interest in a new 375-mile pipeline that would flow gas east to a termination point near Fargo. According to East Daley Analytics, the Bakken region’s gas production in 2024 is expected to average 3.6 BCFD—a 210 MMCFD increase from 2023.
This basin has been hammered over flaring for years, and operators are feeling the gut wrench trying to meet the state’s 95% gas capturing limit that can also lead to reduced oil production. Bakken gas is also high in ethane content, and NGL pipeline takeaway capacity is a major problem child. RBN Energy back in January warned Bakken production growth will soon test its infrastructure limitations. So, here we are sooner than later.
N.D.-based WBI Energy is the force behind the proposed $1 billion Bakken East Pipeline, which has been “working on this idea for well over 10 years.” Maybe its time has come. N.D.’s state Legislature last year authorized a $30 million annual line of bank credit to allow the state to become an anchor shipper. The state’s former governor, Doug Burgum, has been nominated to serve as interior secretary under the new administration.