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DAPL takes months to ramp up throughput

Published by
World Pipelines,


The 470 000 bpd Dakota Access Pipeline (DAPL) will start operating in June, but the ramping up of throughput will take time as Bakken production rises.

The pipeline will finally reach 75% of capacity by year-end 2017 according to ESAI Energy’s North America Watch.

Production growth from the Bakken is starting to take hold as rig activity increases and more wells are completed in the second half of the year. Production is forecast to reach 1.1 million bpd by year-end 2017, about 130,000 b/d higher than at the start of the year. ESAI Energy projects production growth in the Bakken will strengthen in 2018, and along with displacing previous volumes sent by rail to the U.S. East Coast, DAPL will reach full utilisation next year.

Elisabeth Murphy, analyst at ESAI Energy, points out that “until oil prices get closer to US$60 producers will continue to target the Bakken core where well performance is very high. We also expect a further drawdown in the DUC inventory for the remainder of 2017 since most DUCs provide adequate rates of return at prices around US$50 per barrel”.

Read the article online at: https://www.worldpipelines.com/business-news/24052017/dapl-takes-months-to-ramp-up-throughput/


 

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