ESAI Energy’s recent North America Watch showed that many of US pipeline projects targeted for 2021 startups will possibly be delayed on the back of an uncertain demand outlook, lengthy court battles, and regulatory review.
Some projects which are already under construction are seen to move forward, but about 2.7 million bpd of new takeaway will be postponed.
One of the most notable cases is the 570,000 bpd Dakota Access Pipeline (DAPL) and its planned expansion. The planned pipeline is facing a potential shut-down due to environmental permitting. The shutdown on the DAPL would create bottlenecks as other pipelines fill up, resulting in more dependency on the rail and weaker prices for Bakken crude.
Other than that, the 350,000 bpd Liberty pipeline that would deliver more Bakken crude to Cushing was deferred in March due to deteriorating economic conditions resulting from coronavirus.
