How DAPL shutdown could affect the Bakken

Published: Jul. 7, 2020 at 4:51 PM CDT
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WILLISTON, N.D. - Mayor Howard Klug of Williston says if the Dakota Access Pipeline is shut down Aug. 5, economic issues will pile up for people in the Bakken.

Klug says the state followed all of the rules and laws when obtaining permits for the pipeline, so the shutdown could affect our ability to get permits from the U.S. Army Corps of Engineers in the future.

If there aren’t enough workers and rail cars to move Bakken crude, it might prolong the transition of oil transportation from the pipeline to train. He says it could result in no new wells being drilled for a long time, and even more wells being shut-in.

Klug said: “When you add another $5 of transportation costs to the barrel of oil that’s already depressed, a lot of these operators will leave it in the ground. Because we’ve said that before, that we know where the oil is, and if it’s not profitable, leave it in the ground until it is profitable.”

Klug says that may reduce our country’s energy independence. It will affect the budgets of the state and of cities. He says if the hault happens and drags out for the estimated one to three years, it will cause a lot of issues for North Dakota. He says if it resolves soon, economies and jobs will bounce back quickly.

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