DAPL: What’s at stake for N.D.’s Economy if Pipeline goes offline

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KX News hears from economic leaders on what's at stake for North Dakota's oil industry and the state's economy if DAPL goes offline

Tuesday, Federal Judge Boasberg rejected a request by Dakota Access LLC, the company behind the Dakota Access Pipeline, for an emergency order to delay the process of shutting down the pipeline

Earlier this week, KX News spoke with tribal leaders who say the ruling was a major victory for their tribe because they argue the pipeline threatens their drinking water supply, the Missouri River.

Now, we hear from economic leaders who tell us what’s at stake for North Dakota’s oil industry and the state’s economy.

On Tuesday during the North Dakota’s Industrial Commission meeting, the North Dakota Pipeline Authority presented information to Governor Doug Burgum during the on the economic impact that shuttering the Dakota Access Pipeline will have on the state’s economy.

If the pipeline is shuttered for a substantial period of time North Dakota’s crude oil will have to be exported by rail car; a slower and more expensive process than by pipeline.

“So, the impacts to the state of North Dakota are immediate and severe, they’re also very long-lasting,” said N.D. Department of Mineral Resources Director Lynn Helms during the meeting.

North Dakota Pipeline Authority’s Director Justin Kringstad estimates that with the DAPL offline, the state will lose an additional $5 dollars per barrel on top of the already $8 dollar loss that state producers incur when exporting Bakken crude to major markets, such as Louisiana’s Gulf ports.

“Say, it’s $41 dollars today, and you would have to subtract, on average prior to yesterday’s events, about $8 dollars is a typical discount we would receive here in North Dakota because of the costs and logistics to get it from North Dakota to that market, so that additional $5 goes on top of that $8 that was already structurally fundamental to North Dakota’s distance to major markets,” North Dakota Pipeline Authority Director Justin Kringstad.

The North Dakota Pipeline Authority is working with State Attorney General Wayne Stenehjem to make the case to Federal Judge Boasberg that shutting down the DAPL, even temporarily, is too devastating for North Dakota’s economy to bear under the current economic climate.

“It’s imperative that the state of North Dakota, not just casually but in the most fulfilling way possible, describe this devastating economic impact not just on the oil companies but on schools and roads and water projects and healthcare and everything that funded by this thing. Not to mention the jobs and the companies,” explained Governor Doug Burgum during the meeting.

View the North Dakota Pipeline Authority’s presentation from Tuesday’s Industrial Commission meeting.

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