Energy Transfer Partners, L.P. (NYSE:ETP) announced that:
“Dakota Access, LLC (“Dakota Access”) has received an easement from the U.S. Army Corps of Engineers (“Army Corps”) to construct a pipeline across land owned by the Army Corps on both sides of Lake Oahe in North Dakota. The release of this easement by the Army Corps follows a directive from President Donald Trump to the Department of the Army and the Army Corps to take all necessary and appropriate steps that would permit construction and operation of the Dakota Access Pipeline, including easements to cross federal lands. With this action, Dakota Access now has received all federal authorizations necessary to proceed expeditiously to complete construction of the pipeline.”
The Dakota Access Pipeline consists of approximately 1,172 miles of new 30-inch diameter crude oil pipeline from North Dakota to Patoka, Illinois, and the Energy Transfer Crude Oil Pipeline consists of more than 700 miles of existing pipeline that has been converted to crude oil service from Patoka to Nederland, Texas. The two pipelines (together, the “Bakken Pipeline”) are expected to be in service in the second quarter of 2017. Continue reading "'Bakken Pipeline' Could Ramp-Up U.S. Crude Production Faster-Than-Expected"
American oil production is surging. Yet oil prices remain near $100 a barrel.
You may be wondering: When will all of this additional production finally overtake demand and push the price of oil down?
You can find one answer in the price of oil futures -- which say we can expect oil to fall to closer to $80 in the coming few years and stay there.
Is the market correct? Are oil prices heading south?
I think that the answer is no, for several reasons -- especially after I listened to a recent presentation by Bill Thomas, the CEO and chairman of EOG Resources (NYSE: EOG).
EOG is, by a considerable margin, the largest horizontal oil producer in the world. That means the company has access to the best data available on horizontal oil production and resources.
Put simply, EOG and Thomas believe that the futures market is all wrong about oil prices. The company is bullish on oil and focused on producing more of it.
What EOG sees -- and the market doesn't seem to grasp -- is that for all intents and purposes, the horizontal oil boom is coming from only two plays: the Bakken Formation in the upper Midwest and the Eagle Ford Shale in South Texas. A slide from EOG's most recent investor presentation illustrates this clearly: Continue reading "High Oil Prices Are Here To Stay -- Here's How To Profit"
Article source: http://www.streetauthority.com/node/30462447