$1.8 billion oil pipeline from North Dakota to Oklahoma canceled
TULSA, Okla. — A proposed $1.8 billion oil pipeline from North Dakota to Oklahoma has been called off because the company behind the deal couldn’t rally enough commitments to transport its oil.
Tulsa-based Oneok Partners LP announced Tuesday that the Bakken Crude Express Pipeline, which was to stretch from Stanley, N.D., to Cushing, Okla., won’t be built. Construction was expected to begin in 2013.
Oneok said the outlook for crude oil supply is robust but it could not get enough producers to promise long-term use of the 1,300-mile pipeline.
The company said it still has up to $4.8 billion of announced natural gas and natural gas liquids projects under way and many of them are in the Bakken Formation in Montana and North Dakota.
Oneok said the pipeline would have moved 200,000 barrels of oil out of the Williston Basin in the Bakken Formation.
Trucks drive north on Highway 85 south of Williston, N.D. Infrastructure challenges in western North Dakota could limit the number of oil and gas drilling rigs.
Pipeline Project Cancelled