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I have on question: who on here is going to personally benefit from this pipeline?
we all do. it's the safest way to transport any hazardous material.
I have on question: who on here is going to personally benefit from this pipeline?
we all do. it's the safest way to transport any hazardous material.
lunker,
In reality, every ND taxpayer benefits. ND crude oil sells at a significant discount to West Texas Intermediate because of transportation costs. Right around $10-15 per barrel based on the average difference in price. Let's say a pipeline causes a $5 rise in what ND oil sells for on the open market because of lower transport costs. That's $5 x $1,000,000 that is now taxable at the rate of 10% for Production and Extraction taxes, or a nice cool $500,000 a day for the coffers of ND, or $182,500,000 a year. Add onto that the income taxes paid at a rate of ~3% on the remaining 4.5 million in extra income a day for the royalty owners, and you get another $135,000 a day, or $49,275,000 a year. So basically, that's $237.8 million extra dollars a year the State doesn't need to ask you for your support to raise.
Make no mistake, this is an important economic engine for not only continued oil and gas development, but for tax revenue paid by the few so you don't have to.
Of course, someone could always argue a bit with my numbers, so take them with a large grain of salt because oil produced on the reservation owned by a tribal member is exempt from these taxes, I think. So that would lower this a fair amount because of production on Fort Berthold. Maybe 20%, or so?
No, for some reason market forces, supply and demand, seem to have no effect on prices there.
Gas is cheaper because the threat of Bakken Oil caused the Saudis to flood the market which lowered prices.
Saudis have lower cost of production as well as a huge cash surplus.
I'll benefit. It'll cost my company less money to ship oil so they make more profit. Which, when the prices are low, ensures I keep my job. And when they profit more our annual bonus is much higher.I have on question: who on here is going to personally benefit from this pipeline?
we are buying less saudi oil all the time.OK how does this offset cost for gas prices at the pump doest the gas we buy come from Saudi oil which we buy to refine in our refinery.
it's more about supply and demand. the pipeline will not change any of that. it will only affect the safety of oil transportation and reduce the cost to transport it.Thank you Weedy that is exactly what I was looking for thank you the only ones who are going to benifet from the Bakken oil is those who work in the oil fields, those who don't only see prices of food gas energy prices go up and my pay check getting smaller. Thank you again weedy1
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OK please tell me the price of gas won't go up then when the DAPL goes online
I think the days of total chaos are gone. we will probably never see 200 rigs again. Maybe 120 but not 200. Things are changing quickly out here. Don't need 200 rigs when the leases are tied up. And we are learning that just because you can TD a hole in 10 days now it's probably not in our best interest. Piss poor drilling causes expensive problems that can't always be corrected when it comes time to produce the well. My issue with the protestors is somewhat mixed. I have relatives that are Native American. But they haven't lived on the reservation for the past fifty years. They are very successful off the reservation. I can sympathize with their reasoning for this but they pissed away their opportunity when they didn't show up for the meetings with consultants, etc. In fact my uncle's nephew is the attorney for the Standing Rock Tribe. So I have some insight from their side and they are really grasping at straws here. But there is very little representation in this mix of people that are actually from the Standing Rock tribe. And the camps have turned into nothing but raping and pillaging, looting and destroying. And they have nothing to show for it except setting race relations back 200 years. And the resentfulness the people feel towards them is growing daily.Thanks eye for being honest, now when all that craziness comes into town please don't shoot yourself in the foot. I can see now why you are so hard on the protesters more.than anything else it's affecting your wallet.
I think the refiners all pay the same market price for crude and the producers pay the shipping costs off the sale price. The producers will be able to make more profit for the same barrel and will help sustain production in ND.Allen brings up a good point about the value of a barrel of oil produced here in ND versus a barrel produced in Texas close to the major refineries. You would think a ND barrel refined at the Mandan refinery would result in our gasoline prices being lower due to the transportation reduction. But that is certainly not the case. Wonder who profits from refining this cheap oil that doesn't have to travel across country through a pipeline, on a truck, or a railroad tanker?
We pay more for fruits, vegetables, seafood, etc. because we are so far from the source of these goods. When you pay as much or more for gasoline than locations far removed from oil sources and refineries someone has to be gouging us unfairly!
I think the days of total chaos are gone. we will probably never see 200 rigs again. Maybe 120 but not 200. Things are changing quickly out here. Don't need 200 rigs when the leases are tied up. And we are learning that just because you can TD a hole in 10 days now it's probably not in our best interest. Piss poor drilling causes expensive problems that can't always be corrected when it comes time to produce the well. My issue with the protestors is somewhat mixed. I have relatives that are Native American. But they haven't lived on the reservation for the past fifty years. They are very successful off the reservation. I can sympathize with their reasoning for this but they pissed away their opportunity when they didn't show up for the meetings with consultants, etc. In fact my uncle's nephew is the attorney for the Standing Rock Tribe. So I have some insight from their side and they are really grasping at straws here. But there is very little representation in this mix of people that are actually from the Standing Rock tribe. And the camps have turned into nothing but raping and pillaging, looting and destroying. And they have nothing to show for it except setting race relations back 200 years. And the resentfulness the people feel towards them is growing daily.
OK how does this offset cost for gas prices at the pump doest the gas we buy come from Saudi oil which we buy to refine in our refinery.
Allen brings up a good point about the value of a barrel of oil produced here in ND versus a barrel produced in Texas close to the major refineries. You would think a ND barrel refined at the Mandan refinery would result in our gasoline prices being lower due to the transportation reduction. But that is certainly not the case. Wonder who profits from refining this cheap oil that doesn't have to travel across country through a pipeline, on a truck, or a railroad tanker?
We pay more for fruits, vegetables, seafood, etc. because we are so far from the source of these goods. When you pay as much or more for gasoline than locations far removed from oil sources and refineries someone has to be gouging us unfairly!