01/27/2015
Tim’s Take is heard each week on Energy Matters via iHeart Radio www.iheart.com affiliate KFYR To listen to the podcast go to www.kfyr.com and click on Energy Matters :
There is big news in the Bakken giving insight to what the oil and gas industry really thinks about the Bakken Shale Revolution.
Kinder Morgan www.kindermorgan.com is the preeminent leader in the North American pipeline industry. American company Kinder Morgan has surpassed the former number one Canadian based TransCanada who owns the Keystone Pipeline and who is attempting to get the Keystone XL pipeline build and Canadian based Enbridge who has a large footprint in the Bakken.
To give you an idea of big Kinder Morgan is if you laid all their pipelines end to end they would go around the world three times. Yes three times.
• Kinder Morgan is the largest natural gas network with 68,000 miles of pipelines. They are now connected to every important U.S. natural gas resource play, including the Eagle Ford, Marcellus, Utica, Haynesville, Fayetteville Barnett and yes now the Bakken.
• Kinder Morgan is the largest independent transporter of petroleum products, transporting about 2.3 million barrels of product per day. Largest transporter of carbon dioxide (CO2), transporting about 1.3 billion cubic feet per day.
• Kinder Morgan is the largest independent terminal operator. Their liquids terminals have a capacity of 125 million barrels.
• Kinder Morgan is the largest oilsands pipeline serving the West Coast. They currently transport 300,000 barrels per day to Vancouver/Washington State and our proposed expansion will increase that capacity to 890,000 barrels per day.
So why is this important to the Bakken? It is important in two ways … number 1 : Kinder Morgan just paid $3 Billion dollars for assets from Hiland Partners founded by Continental Resources founder Harold Hamm. The purchase consist of crude oil gathering and transportation pipelines and gas gathering and processing systems, primarily serving production from the Bakken shale in North Dakota and Montana. The purchase gives Kinder Morgan a major Bakken presence and gives Continental cash to keep their company in a liquid state.
Number 2 and most important it proves the Bakken is here to stay showing that no matter what goes on in life there are some people or companies that see lemons and others that see lemonade.
I am grateful that my dearest mentor, my grandfather, was a person who saw lemonade. He taught me that no matter how much horse manure is in a room it only means there must be a pony in the room someplace too that is making all that manure. When a blizzard was coming he would tell me to go get the scoop shovel from the granary because the people in town will need their sidewalks ways shoveled and a hefty payday was just over the next drift.
There will always be the Henny Penny’s of the world who will warn us that the sky is falling and too often these doomsayers end up in politics in New York.
But for Kinder Morgan’s of the world and the other lemonade makers we lift our glass of freshly squeezed juice and toast your belief in America and your belief that in this room of horse manure we are sure to find a pony.
And that’s my take.
Tim Fisher founder of Bakken Energy Service www.bakkenenergyservice.com Taconia Marketing www.taconia.com
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