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Well this is going to get interesting
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<blockquote data-quote="Migrator Man" data-source="post: 121727" data-attributes="member: 2369"><p>Production in ND may remain steady if they start fracing again but the longer they wait to Frac the bigger dip in production we will see. With DAPL there will be much more pipe volume out of ND than ND production to fill it. Fracing cannot happen over night and will take a bunch of crews to even maintain the current level of production. Can the industry mobilize these crews overnight ? Nope</p><p></p><p><span style="color: silver"><span style="font-size: 9px">- - - Updated - - -</span></span></p><p></p><p></p><p></p><p>If the producers already committed to another pipeline through long range contracts then they can just jump ship to keystone xl. Keystone will have to get uncommitted volumes or new production in order to make the project go. Will this happen in today's oil economy? Probably not. Oil sands takes a discount to other oil because it costs more to ship and is over supplied to certain markets. The producers will ship there oil to where ever the best netback is. Netback is essentially the amount of profit when considering shipping costs and selling price of the oil.</p></blockquote><p></p>
[QUOTE="Migrator Man, post: 121727, member: 2369"] Production in ND may remain steady if they start fracing again but the longer they wait to Frac the bigger dip in production we will see. With DAPL there will be much more pipe volume out of ND than ND production to fill it. Fracing cannot happen over night and will take a bunch of crews to even maintain the current level of production. Can the industry mobilize these crews overnight ? Nope [COLOR="silver"][SIZE=1]- - - Updated - - -[/SIZE][/COLOR] If the producers already committed to another pipeline through long range contracts then they can just jump ship to keystone xl. Keystone will have to get uncommitted volumes or new production in order to make the project go. Will this happen in today's oil economy? Probably not. Oil sands takes a discount to other oil because it costs more to ship and is over supplied to certain markets. The producers will ship there oil to where ever the best netback is. Netback is essentially the amount of profit when considering shipping costs and selling price of the oil. [/QUOTE]
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