Oil & Gas Journal: Pipeline projects in the US that were slated for startup in 2021 are facing huge challenges from an uncertain demand outlook, lengthy court battles, and regulatory review. While some projects already under construction are moving forward, about 2.7 million b/d of new takeaway will be postponed, according to ESAI Energy’s North America Watch report.
The most noteworthy is the potential loss of the 570,000 b/d Dakota Access Pipeline (DAPL) and its planned expansion due to legal hurdles. A shutdown DAPL will create bottlenecks as other pipelines fill up, resulting in more dependency on rail and weaker prices for Bakken crude, the report said.
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