Followers | 240 |
Posts | 12050 |
Boards Moderated | 0 |
Alias Born | 04/05/2009 |
Thursday, January 15, 2015 6:31:28 PM
Enterprise Products Partners is shelving a proposed pipeline that would have transported crude from North Dakota to Oklahoma, the company announced on Friday.
The news came in the midst of a brutal slide in global oil prices that have raised concerns about whether U.S. companies will continue to build on the expansion of oil production. Middle East oil producers have yet to announce a cut in production to offset the drop in crude, in what some analysts say is a slow-bleed strategy designed to make pumping crude as uneconomic as possible for the world's fastest growing non-OPEC oil producer.
Enterprise Products—a publicly traded partnership designed to provide financing on oil and gas infrastructure projects — said in a terse statement that investors had "decided not to move forward with development of its proposed Bakken to Cushing crude oil pipeline."
Commitments from potential partners "were not sufficient to support the project," Enterprise Products added. The company did not immediately respond to an inquiry from CNBC on whether the project's closure was related to the drop in oil prices and other factors.
"Enterprise Products Partners management has been consistent in communicating this was a low probability project," said Adam Karpf, a portfolio manager for Atlantic Trust's master limited partnership strategies.
Karpf said that the firm appeared to lose a competitive battle with a different partnership, Energy Transfer Partners, which was also bidding for contracts on a Bakken pipeline. Those commitments left Enterprise the odd man out, he added. Atlantic Trust owns shares of Enterprise in its investment portfolio.
However, oversupply of crude has led to fears that oil's sharp decline could claim U.S. shale production as a victim, as smaller operators may be forced to scale back expansion plans. In recent weeks, oil prices have been in free fall, with U.S. crude settling at its lowest level since May 2009 under $58 per barrel.
North Dakota's Bakken region and Oklahoma's Cushing are two of the most prolific oil hubs in the U.S. energy revolution. Pipeline construction projects have taken on increasing prominence as the crude boom picks up speed, sending domestic oil production skyrocketing to more than 9 million barrels per day.
Infrastructure partnerships such as Enterprise Products' have raised billions in private capital, in expectation that the U.S.' growing energy independence would create more opportunities to transport domestically produced oil and gas. With Enterprise's actions, that assumption appears in some doubt.
"It's a clear indication that the lowering of oil prices and the dialing down of crude demand for 2015 is taking its toll," said Vincent DeVito, partner at the law firm of Bowditch & Dewey.
http://www.cnbc.com/id/102265279
"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International
Recent EPD News
- U.S. Index Futures Point to Mild Decline Ahead of Key Earnings and Fed Rate Decision • IH Market News • 04/30/2024 11:59:59 AM
- Enterprise Reports First Quarter 2024 Earnings • Business Wire • 04/30/2024 10:00:00 AM
- Enterprise Receives Deepwater Port License for Spot Project • Business Wire • 04/09/2024 12:00:00 PM
- Enterprise Declares Quarterly Distribution • Business Wire • 04/05/2024 01:41:00 PM
- Enterprise to Build New Natural Gas Processing Plant in the Delaware Basin; Announces Start of Service on Mentone 3 and Leonidas • Business Wire • 04/03/2024 12:00:00 PM
- Enterprise to Host Investor and Analyst Call • Business Wire • 04/01/2024 08:15:00 PM
- Enterprise 2023 Schedule K-1 Tax Packages Now Available • Business Wire • 03/12/2024 06:31:00 PM
- Enterprise Begins Initial Service on TW Products System • Business Wire • 03/07/2024 09:12:00 PM
- Enterprise to Participate in Investor Conferences • Business Wire • 03/04/2024 02:20:00 PM
- Enterprise Products Partners L.P. 2023 Letter to Investors Now Available • Business Wire • 03/01/2024 05:31:00 PM
- Enterprise Products Partners L.P. 2023 Form 10-K Now Available • Business Wire • 02/28/2024 05:24:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/28/2024 03:54:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 09:11:06 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 09:11:02 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 09:10:49 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 09:10:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 09:10:28 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 09:10:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 09:10:17 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 09:10:16 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 09:10:12 PM
- Enterprise to Acquire Interest in Panola NGL Pipeline From Western Midstream • Business Wire • 02/21/2024 09:10:00 PM
- Enterprise Acquires Joint Venture Interests From Western Midstream • Business Wire • 02/21/2024 09:05:00 PM
- Enterprise to Participate in Investor Conferences • Business Wire • 02/21/2024 01:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/16/2024 09:13:02 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM