After a year of slowed activity due to Obama’s caving in to the Saudis, the rig count in North Dakota is up 40 percent since the approval of the Dakota Access Pipeline. Analysts predict the count will rise another ten percent.
Not every oil company operating in the state is going to use the Dakota Access Pipeline, but they will benefit from the pipeline’s capacity anyway. It will create more capacity on existing pipelines, not to mention rail, and drive down the cost of getting Bakken oil to market overall.
The article notes that both Whiting Petroleum and Continental Resources are projecting a 20 percent increase in output this year. Neither are contracted to use DAPL, but both will benefit from it none the less.
Isn’t it amazing what the free market can do?
North Dakota’s unemployment rate, even after the “crash” caused by the slowdown in exploration (but not production), hovered a solid point below that of Minnesota’s. That discrepancy will broaden in coming months.