Institutional Capital Linked to Dakota Access Pipeline
The US$ 3.78 billion project of the Dakota Access Pipeline (DAPL) has no doubt been a contentious issue – widely covered by the general media and sparking protests across U.S. cities such as San Francisco.
The crude oil pipeline spans 1,168 miles, linking Stanley, North Dakota to Pakota, Illinois, passing through the U.S. states of South Dakota and Iowa. Builders of the pipeline contend it will reduce crude oil transported by truck and rail and be able to fulfill Gulf Coast and East Coast refineries greater access to reliable U.S. crude oil production, roughly to a maximum of 570,000 oil barrels per day. The Bakken field is a key beneficiary Pipeline construction commenced in 2016 and by November 2016, it was 87% finished. Many anti-pipeline protesters, a number of Native American tribes, and environmentalists have objected to the pipeline’s routes over concerns about water contamination in the event of a spill or pipeline rupture. In July 2016, the Standing Rock Sioux Tribe filed a lawsuit against the U.S. Army Corps of Engineers in U.S. federal court, seeking to halt pipeline construction. In September 2016, a trial judge dismissed the lawsuit.
North Dakota Revenue
On March 2, 2017, the Associated Press reported the oil-rich state of North Dakota is expected to receive more than US$ 100 million annually in tax revenue from the pipeline once the crude oil flows. SWFI cannot confirm if that money will go the the North Dakota Legacy Fund.
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