Thursday, April 25, 2013

In response to increasing diesel demands: North Dakota builds new refinery

After a long-standing diesel demand problem, the government is finally recognizing the need for new infrastructures to support growing needs. On April 10, 2013, North Dakota Governor Jack Dalrymple, together with several state politicians and investors, gathered to break ground for the construction of a new refinery—the first since 1976.

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North Dakota produces more crude oil in the country than any other state, with the exception of Texas. This is mainly due to the Bakken shale formation, a layer of oil-rich rocks which extends up to two miles deep into the ground. With this kind of resource, the state has been expected to support the oil needs of its residents, which at present rate is approximately 53,000 barrels per day.

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Unfortunately, North Dakota has only one refinery, thus forcing the state to import more than half of these barrels, and ultimately relying on the refineries in the US gulf for much of its diesel. This comes with a more alarming fact, however, as forecasters have predicted that North Dakota will be consuming at least 75,000 barrels per day by the year 2025.

Governor Jack Dalrymple recognizes the importance of building these new refineries. “Diesel fuel is something that's highly valued around North Dakota,” he said. “Refineries will allow us to use our Bakken crude right here at home.”

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This Ali Ghalambor Facebook page shares more updates on the oil and gas industry.

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