Monday, March 6th, 2017 and is filed under Uncategorized
It is estimated that the Dakota Access Pipeline will generate more than $100 million in tax revenue annually for North Dakota. In addition to the oil taxes, North Dakota looks to rake in another $10 million each year in property taxes from the Dakota Access Pipeline.
North Dakota is one of the leading states in oil production, second only to Texas. However, the problem with North Dakota is its location, far removed from major oil markets and infrastructure. The Dakota Access Pipeline is poised to change that.
The Dakota Access winds its way from North Dakota oil fields through South Dakota and Iowa to Illinois where it will meet up with existing infrastructure for shipping to major crude markets including refineries along the Gulf Coast. Up to this point, most crude leaving North Dakota has been shipped by truck or train which naturally carries a higher cost than delivery via pipeline. The Dakota Access looks to trim roughly $3 per barrel off of that shipping cost, thus reaping higher profits stakeholders.
The Dakota Access Pipeline has the capability to eliminate up to 500-740 rail cars and/or 250+ trucks each day.
The U.S. Army Corps of Engineers issued the final easement necessary for the completion of the pipeline in February of this year under the direction of newly sworn in President Donald Trump.