Hess Corporation

Bakken Oil Now Flowing in Dakota Access Pipeline But Oil Trains to Remain on Tracks

Read time: 5 mins
Oil train cars

By Steve Horn and Justin Mikulka

One of the arguments often made for building more oil pipelines is that they will lead to fewer trains hauling oil, with proponents further positing that pipelines are safer than oil trains.

With oil now flowing through the Dakota Access pipeline (DAPL), some analysts and industry lobbyists have predicted that there will be a significant reduction in oil-by-rail traffic from the Bakken region in Montana and North Dakota. That prediction has come despite the fact that Dakota Access owner Energy Transfer Partners actually owns an oil-by-rail facility connecting to the pipeline in Patoka, Illinois, with major Bakken producers such as Hess Corporation saying 30 percent of their oil will still move via rail.

More Financial Worries Coming to Light in Domestic Shale Drilling Industry

Read time: 7 mins

Virtually anyone who has followed the onshore drilling bonanza knows the name Aubrey McClendon and the company he co-founded, Chesapeake Energy.

McClendon was the hard-driving CEO and chairman of one of America’s most aggressive drilling companies, but he was brought down earlier this year after a string of financial scandals and potential conflicts of interest came to light. It turned out that at the heart of the natural gas industry’s poster child lay financial practices that drew the ire of investors, the attention of SEC investigators and the fixation of the news media.

But in the past several months there have been a series of largely under-reported events that demonstrate that Mr. McClendon's problems are by no means distinct.

Might the drilling industry have broader financial issues?

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