Crude oil pipeline constraints: A tale of two shales

Phat V. Luong

Resources Policy, 2023, vol. 80, issue C

Abstract: Permian and Williston Basins are both experiencing takeaway pipeline bottlenecks. The price of Bakken sweet crude in Williston is still cointegrating with the national West Texas Intermediate (WTI) benchmark and downstream gasoline market while the Midland crude price in Permian Basin is not. The Midland price only reintegrated with WTI as well as regional gasoline price after the takeaway bottleneck is alleviated. This is because of the rail system developed in the Williston Basin that allows Bakken crude to reach other trading hubs and downstream markets even when pipeline bottlenecks occur. Blocking the constructions of pipelines will not prevent the flow of oil because more oil will be moved by trucks, railways, and barges. These shipping modes are more expensive and are not as safe and efficient as pipelines.

Keywords: WTI; Permian; Midland; Williston; Bakken; Basis differential (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420722006468
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:80:y:2023:i:c:s0301420722006468

DOI: 10.1016/j.resourpol.2022.103203

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().